SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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FORM 10-Q
Quarterly Report Under Section 13 or 15(d) of
The Securities Exchange Act of 1934
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For the Period ended September 30, 1996
Commission File 2-88942
FAMOUS HOST LODGING V, L.P.
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(Exact name of registrant as specified in its charter)
CALIFORNIA 94 - 2933595
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(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
2030 J Street
Sacramento, California 95814
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Address of principal executive offices Zip Code
Registrant's telephone number,
including area code (916) 442 - 9183
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15 (d) of the Securities Exchange Act
of 1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days.
Yes XX No
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FAMOUS HOST LODGING V, L.P.
(A California Limited Partnership)
FINANCIAL STATEMENTS
SEPTEMBER 30, 1996 AND 1995
FAMOUS HOST LODGING V, L.P.
(A California Limited Partnership)
INDEX
Financial Statements: PAGE
Balance Sheet - September 30, 1996 and December 31, 1995 2
Statement of Operations - Nine Months Ended
September 30, 1996 and 1995 3
Statement of Changes in Partners' Equity -
Nine Months Ended September 30, 1996 and 1995 4
Statement of Cash Flows - Nine Months Ended
September 30, 1996 and 1995 5
Notes to Financial Statements 6
Management Discussion and Analysis 7 - 8
Other Information and Signatures 9 - 10
Famous Host Lodging V, L.P.
(A California Limited Partnership)
Balance Sheet
September 30, 1996 and December 31, 1995
9/30/96 12/31/95
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ASSETS
Current Assets:
Cash and temporary investments $ 329,329 $ 286,074
Accounts receivable 30,604 31,138
Prepaid expenses 62,643 36,038
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Total current assets 422,576 353,250
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Property and Equipment:
Capital improvements
Buildings 4,077,603 4,077,604
Furniture and equipment 1,300,161 1,287,518
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5,377,764 5,365,122
Accumulated depreciation (2,840,853) (2,622,748)
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Property and equipment, net 2,536,911 2,742,374
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Other Assets: 32,294 32,294
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Total Assets $ 2,991,781 $ 3,127,918
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LIABILITIES AND PARTNERS' EQUITY
Current Liabilities:
Accounts payable and accrued liabilities $ 218,927 $ 179,911
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Total current liabilities 218,927 179,911
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Total liabilities 218,927 179,911
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Contingent Liabilities (See Note 1)
Partners' Equity:
General Partners 4,427 3,688
Limited Partners 2,768,427 2,944,319
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Total partners' equity 2,772,854 2,948,007
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Total Liabilities and Partners' Equity $ 2,991,781 $ 3,127,918
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The accompanying notes are an integral part of the financial statements.
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Famous Host Lodging V, L.P.
(A California Limited Partnership)
Statement of Operations
For the Nine Months Ending September 30, 1996 and 1995
Three Months Nine Months Three Months Nine Months
Ended Ended Ended Ended
9/30/96 9/30/96 9/30/95 9/30/95
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Income:
Hotel room $ 620,744 $ 1,937,515 $ 665,332 $ 1,915,051
Restaurant 144,457 491,946 159,905 482,968
Telephone and vending 18,159 49,576 16,701 44,478
Interest 2,145 6,520 3,186 9,847
Other 9,450 26,836 26,493 50,311
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Total Income 794,955 2,512,393 871,617 2,502,655
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Expenses:
Motel operating expenses
(Note 2) 670,366 2,035,681 713,024 2,001,159
General and administrative 11,829 57,276 12,067 49,661
Depreciation and amortization 72,783 220,205 73,652 197,891
Property management fees 39,712 125,379 42,507 123,916
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Total Expenses 794,690 2,438,541 841,250 2,372,627
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Net Income (Loss) $ 265 $ 73,852 $ 30,367 $ 130,028
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Net Income (Loss) Allocable
to General Partners $3 $739 $304 $1,300
======== ========= ========= =========
Net Income (Loss) Allocable
to Limited Partners $262 $73,113 $30,063 $128,728
======== ========= ========= =========
Net Income (Loss)
per Partnership Unit $0.03 $8.19 $3.37 $14.41
======== ========= ========= =========
Distribution to Limited Partners
per Partnership Unit $9.20 $27.60 $9.20 $27.60
======== ========= ========= =========
The accompanying notes are an integral part of the financial statements.
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Famous Host Lodging V, L.P.
(A California Limited Partnership)
Statement of Changes in Partners' Equity
For the Nine Months Ending September 30, 1996 and 1995
1996 1995
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General Partners:
Balance at beginning of year $ 3,688 $ 2,901
Net income (loss) 739 1,300
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Balance at end of period 4,427 4,201
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Limited Partners:
Balance at beginning of year 2,944,319 3,198,440
Net income (loss) 73,113 128,728
Distributions to limited partners (249,007) (249,007)
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Balance at end of period 2,768,425 3,078,161
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Total Partners' Equity $ 2,772,852 $ 3,082,362
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The accompanying notes are an integral part of the financial statements.
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Famous Host Lodging V, L.P.
(A California Limited Partnership)
Statement of Cash Flows
For the Nine Months Ending September 30, 1996 and 1995
1996 1995
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Cash flows from operating activities:
Received from hotel and restaurant revenues $ 2,516,396 $ 2,502,974
Expended for hotel and restaurant operation
and general and administrative expenses (2,216,271) (2,177,708)
Interest received 6,879 7,880
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Net cash provided (used) by operating activities 307,004 333,146
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Cash flows from investing activities:
Purchases of property and equipment (14,742) (218,389)
Proceeds from sale of equipment - 1,000
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Net cash provided (used) by investing activities (14,742) (217,389)
Cash flows from financing activities:
Distributions paid to limited partners (249,007) (249,007)
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Net cash provided (used) by operating activities (249,007) (249,007)
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Net increase (decrease) in cash
and temporary investments 43,255 (133,250)
Cash and Temporary Investments:
Beginning of year 286,074 564,087
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End of Period $ 329,329 $ 430,837
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Reconciliation of net income (loss) to net cash provided (used) by operating
activities:
Net income (loss) $ 73,852 $ 130,028
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Adjustments to reconcile net income to
net cash used by operating activities:
Depreciation and amortization 220,205 197,891
(Gain) loss on disposition of property and
equipment - 2,235
(Increase) decrease in accounts receivable 10,880 8,198
(Increase) decrease in prepaid expenses (26,605) (1,536)
Increase (decrease) in accounts payable
and accrued liabilities 28,672 (3,670)
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Total adjustments 233,152 203,118
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Net cash provided (used) by
operating activities $ 307,004 $ 333,146
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The accompanying notes are an integral part of the financial statements.
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Famous Host Lodging V, L.P.
(A California Limited Partnership)
Notes to Financial Statements
September 30, 1996
Note 1:
The attached interim financial statements include all adjustments which are, in
the opinion of management, necessary to a fair statement of the results for the
period presented.
Users of these interim financial statements should refer to the audited
financial statements for the year ended December 31, 1995 for a complete
disclosure of significant accounting policies and practices and other detail
necessary for a fair presentation of the financial statements.
In accordance with the partnership agreement, the following information is
presented related to fees paid to the General Partners or affiliates for the
period.
Property Management Fees $ 125,379
In February, 1991 the Partnership terminated its franchise and its affiliation
with Super 8 Motels, Inc. and began operating as a Holiday Inn. Accordingly,
no franchise or advertising fees have been paid to the General Partners or their
affiliates for the period.
Partnership management fees and subordinated incentive distributions are
contingent in nature and none have been accrued or paid during the current
period.
Note 2:
The following table summarizes the major components of hotel operating expenses
for the periods reported:
Three Months Nine Months Three Months Nine Months
Ended Ended Ended Ended
9/30/96 9/30/96 9/30/95 9/30/95
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Salaries and related
expenses $ 203,585 $ 595,972 $ 199,428 $ 608,305
Cost of food and beverage 57,434 186,216 58,640 172,350
Rent 73,378 226,431 78,700 229,381
Franchise and advertising 66,007 207,867 63,193 186,086
Utilities 66,966 158,157 73,993 169,887
Allocated costs, mainly
indirect salaries 41,520 134,970 45,053 131,867
Renovations and replacements 7,201 32,757 28,604 47,959
Other operating expenses 154,275 493,311 165,413 455,324
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Total hotel and restaurant
operating expenses $ 670,366 $ 2,035,681 $ 713,024 $ 2,001,159
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The following additional material contingencies are required to be restated in
interim reports under federal securities law: None.
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Famous Host Lodging V, L.P.
(A California Limited Partnership)
Management Descussion and Analysis
of Fiancial Condition and Results of Operations
September 30, 1996
LIQUIDITY AND CAPITAL RESOURCES
The Partnership has current assets of $422,576 and current liabilities of
$218,927. The excess of current assets over current liabilities constitutes an
operating reserve of $203,649. This amount is less than the $276,800 reserve
target set by the General Partners. The reserve target is equal to 5% of the
adjusted capital contribution as defined in the Partnership Agreement. The
reserve was partially depleted during 1995 due to extraordinary expenditures for
renovation of the restaurant and due to site studies and drawings for a
potential expansion for the hotel. The reserve is expected to equal or exceed
the target balance by the end of the current fiscal year.
The Statement of Cash Flows shows positive net cash flows of $43,255 for the
nine months ending September 30, 1996 (after $249,007 in distribution to the
Limited Partners) as compared to a negative cash flow of $133,250 during the
corresponding period of the previous fiscal year. The major changes in cash
flow for the period covered by this report as compared to the previous fiscal
year are a $202,647 relative decrease in capital expenditures and a $26,142
decrease in cash provided by operating activities. While the distribution will
remain at its present level for the period covered by this report, the General
Partners will continue to make such decisions each quarter on the basis of
continuing operating results and their perception of future trends.
The Partnership expended for renovations and replacements $35,815 or 1.8% of
gross room revenue during the period covered by this report. Unlike the
previous fiscal year, the General Partner expects that the Partnership will
spend approximately 3% of gross room revenues on renovations and replacements.
RESULTS OF OPERATIONS
The following is a comparison of operating results for the nine month periods
ended September 30, 1996 and September 30, 1995.
Total income increased $9,738 or 0.4%. Hotel room revenues increased $22,464
or 1.2%, due to an increase in the average room rate from $60.80 to $64.56,
partially offset by a decrease in the guest room occupancy rate from 78.0% to
74.0%. The hotel experienced decreased demand in the corporate and government
market segments which was partially offset by an increase in the leisure market
segment.
Total expenditures increased $65,914 or 2.8%. These increased expenditures are
associated primarily with cost inflation and with the increased revenues.
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Famous Host Lodging V, L.P.
(A California Limited Partnership)
Management Descussion and Analysis
of Fiancial Condition and Results of Operations
September 30, 1996 (continued)
FUTURE TRENDS
The General Partners expect the hotel's performance during 1996 to be
comparable to that experienced during 1995. Changes in restaurant personnel
and procedures are expected to continue bringing improved results. The General
Partners expect that these changes will result in a reduction in the net loss
experienced by the restaurant operation.
In the opinion of management, these financial statements reflect all adjustments
which were necessary to a fair statement of results for the interim periods
presented. All adjustments are of a normal recurring nature.
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PART II. OTHER INFORMATION
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Item 1. Legal Proceedings
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None
Item 2. Changes in Securities
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None
Item 3. Defaults upon Senior Securities
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None
Item 4. Submission of Matters
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None
Item 5. Other Information
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None
Item 6. Exhibits and Reports on Form 8-K
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None
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Pursuant to the requirements of the Securities and Exchange
Act of 1934, the registrant has duly caused this report to be signed
on its behalf by the undersigned, thereunto duly authorized.
FAMOUS HOST LODGING V, L.P.
11-11-96 By /S/ David P. Grotewohl
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Date David P. Grotewohl,
President of Grotewohl
Management Services, Inc.,
Managing General Partner
11-11-96 By /S/ David P. Grotewohl
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Date David P. Grotewohl,
Chief Financial Officer
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