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FORM 10-Q--QUARTERLY REPORT UNDER SECTION 13 OR 15(D)
OF THE SECURITIES EXCHANGE ACT OF 1934
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark One)
[X] Quarterly Report Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934 For the period ended September 30,
2000
or
[ ] Transition Report Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
For the transition period from __________ to _______________
Commission File Number: 33-11396-A
LMR LAND COMPANY, LTD.
(Exact name of Registrant as specified in its charter)
Tennessee 62-1299384
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) identification)
One Belle Meade Place, 4400 Harding Road, Suite 500, Nashville,
Tennessee 37205 (Address of principal executive office)
(Zip Code)
(615) 292-1040
(Registrant's telephone number, including area code)
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 at least the past 90 days.
YES X NO ___
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PART I. FINANCIAL INFORMATION
Item 1. FINANCIAL STATEMENTS
INDEX
Financial Statements:
Balance Sheets 3
Statements of Operations 4
Statements of Cash Flows 5
Notes to Financial Statements 6
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LMR LAND COMPANY, LTD.
(A Limited Partnership)
BALANCE SHEETS
(Unaudited)
September 30, December 31,
2000 1999
--------- ------------
ASSETS
Cash $ 426,941 $ 310,703
Restricted cash 10,523 10,523
Accounts receivable 4,041 4,041
Land and improvements
held for investment 730,045 2,567,088
Total Assets $1,171,550 $ 2,892,355
========== ==========
LIABILITIES AND PARTNERS' EQUITY
Accounts payable $ 17,626 $ 17,665
Property Tax Payable 11,113 -
PARTNERS' EQUITY:
Limited Partners, 7,500 units
outstanding 1,142,811 2,874,592
General Partner - 98
Total Partners' Equity 1,142,811 2,874,690
---------- ----------
Total Liabilities & Partners' Equity $1,171,550 $ 2,892,355
========== ==========
<FN>
See notes to financial statements.
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LMR LAND COMPANY, LTD.
(A Limited Partnership)
STATEMENTS OF OPERATIONS
(Unaudited)
Three Months Ended Nine Months Ended
September 30,
---------------------------------------
2000 1999 2000 1999
---- ---- ---- ----
REVENUE:
LAND SALES:
Sale Proceeds $ - $ - $7,400,000 $ -
Cost of Land and
Improvements Sold - - (1,837,043) -
Closing Costs - - (474,947) -
Gain on Sale of
Land & Improvements - - 5,088,010 -
Interest 190 162 473 485
Miscellaneous 250 250 - 250
------ ------- -------- ---------
Total Revenue 440 412 5,088,483 735
EXPENSES:
Property Taxes 11,288 40,162 22,019 40,220
Grounds Maintenance - 11,652 107 17,267
Management Fees 3,500 3,500 10,500 10,500
Legal & Accounting Fees 500 775 16,115 15,985
General & Admin. Expenses 1,728 681 3,506 1,130
State tax 1,801 - 5,403 -
Other Operating Expenses - - 1,000 23,357
------ ------ --------- --------
Total Expenses 18,817 56,770 58,650 108,459
NET (LOSS) INCOME $(18,377) $(56,358) $ 5,029,833 $(107,724)
Net (Loss) Income per
limited partner unit $ (2.45) $ (7.51) $ 670.64 $ (14.36)
<FN>
See notes to financial statements
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LMR LAND COMPANY, LTD.
(A Limited Partnership)
STATEMENTS OF CASH FLOWS
(Unaudited)
Year-to-date
SEPTEMBER 30,
------------
2000 1999
---- ----
Cash Flows from Operating Activities:
Net Income (Loss) $ 5,029,833 $(107,724)
Adjustments to reconcile Net Income
(Loss) to Net Cash provided by
(used in) Operating Activities:
Increase in Restricted Cash - (80)
(Decrease) Increase in
Accounts Payable (39) 23,206
Increase in Property Tax Payable 11,113 -
Increase in Accounts Receivable - (4,042)
Cost of Land & Improvements Sold 1,837,043 -
--------- ---------
Net Cash provided by (used in)
Operating Activities 6,877,950 (88,640)
Cash Flows from financing activities:
Cash distribution to Partners (6,761,712) -
Net Increase (Decrease) in Cash 116,238 (88,640)
CASH AT JANUARY 1, 310,703 120,260
CASH AT SEPTEMBER 30, $ 426,941 $ 31,620
========= =========
<FN>
See notes to financial statements.
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LMR LAND COMPANY, LTD.
(A Limited Partnership)
NOTES TO FINANCIAL STATEMENTS
For the Three and Nine Months Ended September 30, 2000 and 1999
(Unaudited)
A.ACCOUNTING POLICIES
The unaudited financial statements presented herein have been
prepared in accordance with the instructions to Form 10-Q and do
not include all of the information and note disclosures required by
generally accepted accounting principles. These statements should
be read in conjunction with the financial statements and notes
thereto included in the Partnership's Form 10-K for the year ended
December 31, 1999. In the opinion of management, such financial
statements include all adjustments, consisting only of normal
recurring adjustments, necessary to summarize fairly the
Partnership's financial position and results of operations. The
results of operations for the nine month period ended September 30,
2000 may not be indicative of the results that may be expected for
the year ending December 31, 2000.
B.RELATED PARTY TRANSACTIONS
The General Partner and its affiliates have been actively involved
in managing the Partnership's operations. Compensation earned for
these services in the first nine months were as follows:
2000 1999
[S] [C] [C]
Management Fees $ 10,500 $ 10,500
Accounting Fees $ 11,433 $ 2,600
Development Fees $ 5,000 $ 4,899
C. COMPREHENSIVE INCOME
During the nine month periods ended September 30, 2000, and
1999, the Partnership had no components of other comprehensive
income. Accordingly, comprehensive income for each of the periods
was the same as net income (loss).
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Item 2: MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
RESULTS OF OPERATIONS
On June 29, 2000, the Registrant sold 81 acres of the Macon
Property for $7,400,000. $6,750,000 of these proceeds were
distributed to the limited partners in July, 2000, and $11,712 was
distributed to the general partner. The Registrant has 32 acres
remaining in the Macon Property.
Overall expenses of the Registrant have not changed significantly
from prior quarters except for property taxes. The decrease in
property taxes is directly attributable to the decrease in land
held. State tax expense in 2000 includes estimated Tennessee
franchise and excise tax. Due to new legislation in Tennessee,
partnerships were required to pay franchise and excise tax
beginning January 1, 2000.
During the fourth quarter, Management will update its evaluation of
the values of the Property and if necessary, any impairment
reserves will be recorded.
FINANCIAL CONDITION
LIQUIDITY
At October 31, 2000, the Registrant had approximately $408,442 in
cash reserves. The General Partner expects the current cash
balance to be sufficient to cover the cash needs of the Registrant
for the next year.
In June 1998, the Financial Accounting Standards Board issued SFAS
No. 133, "Accounting for Derivative Instruments and Hedging
Activities." SFAS No. 133 established reporting standards for
derivative instruments, including certain derivative instruments
embedded in other contracts. Under SFAS No. 133, the Company would
recognize all derivatives as either assets or liabilities, measured
at fair value, in the statement of financial position. In July
1999, SFAS No. 137 "Accounting for Derivative Instruments and
Hedging Activities - Deferral of Effective Date of FASB No. 133, An
Amendment of FASB Statement No. 133" was issued deferring the
effective date of SFAS No. 133 to fiscal years beginning after June
15, 2000. In June 2000, SFAS No. 138 "Accounting for Certain
Derivative Instruments and Certain Hedging Activities, an Amendment
of FASB No. 133" was issued clarifying the accounting for
derivatives under the new standard. The General Partner believes
these pronouncements will have no impact on its consolidated
financial statements.
In December 1999, the Securities and Exchange Commission issued
Staff Accounting Bulletin No. 101 "Revenue Recognition in Financial
Statements" ("SAB 101"). SAB 101 establishes specific criterion
for revenue recognition. In June 2000, the Securities and Exchange
Commission issued ("SAB 101B"), which amends SAB 101 no later than
the fourth quarter of its fiscal year ending December 31, 2000.
The General Partner believes that this SAB will have no impact on
the Company's revenue recognition and presentation policies.
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PART II. OTHER INFORMATION
Item 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits
Exhibit 27 - Financial Data Schedule
(b) No 8-K's have been filed during this quarter.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of
1934, the Registrant has duly caused this report to be signed on
its behalf by the undersigned, thereunto duly authorized.
LMR LAND COMPANY, LTD.
By: 222 LMR, LTD.
General Partner
By: 222 PARTNERS, INC.
General Partner
Date: November 14, 2000 By:/s/ Steven D. Ezell
President
Date: November 14, 2000 By:/s/ Michael A. Hartley
Secretary/Treasurer