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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 June 30, 1997
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: 33-18089-A
HICKORY HILLS, LTD.
(Exact name of Registrant as specified in its charter)
Tennessee 62-1336904
(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
HICKORY HILLS, LTD.
(A Tennessee Limited Partnership)
FINANCIAL STATEMENTS
For The Six Months Ended June 30, 1997
INDEX
Financial Statements:
Consolidated Balance Sheets 3
Consolidated Statements of Operations 4
Consolidated Statements of Cash Flows 5
Notes to Financial Statements 6
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HICKORY HILLS, LTD.
(A Limited Partnership)
CONSOLIDATED BALANCE SHEETS
(Unaudited)
June 30, December 31,
1997 1996
------------- -------------
ASSETS
CASH $ 101,767 $ 142,345
ESCROW DEPOSITS
- Restricted 163,513 258,676
LAND & IMPROVEMENTS HELD
FOR INVESTMENT 2,336,167 2,473,839
OTHER ASSETS 280 280
Total Assets 2,601,727 $2,875,140
========= ==========
LIABILITIES AND PARTNERS' EQUITY
ACCRUED INTEREST PAYABLE 956,261 $ 1,126,627
ACCRUED PROPERTY TAXES - 10,635
NOTE PAYABLE
TO AFFILIATE 3,454,300 3,454,300
OTHER ACCRUED EXPENSES 65,190 81,902
PARTNERS' DEFICIT:
Limited Partners (1,800
units outstanding) (1,874,124) (1,798,424)
General Partner 100 100
Total partners' deficit (1,874,024) (1,798,324)
Total Liabilities &
Partners' Deficit $ 2,601,727 $ 2,875,140
=========== ===========
<FN>
See notes to financial statements.
/TABLE
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HICKORY HILLS, LTD.
(A Limited Partnership)
CONSOLIDATED STATEMENTS OF OPERATIONS
<Unaudited)
Quarter to Date Year to Date
Ending June 30,
-------------------------------------
1997 1996 1997 1996
REVENUE:
Land Sales
Sale Proceeds $ 235,000 - $436,000 365,500
Cost of Land Sold (146,490) - (280,376) (258,179)
Closing Costs (15,284) - (28,862) (23,893)
Gain(Loss) on Sale
of Land 73,226 - 126,762 83,428
Interest Income 6,849 9,034 8,631 12,944
Total Revenue80,075 9,034 135,393 96,372
EXPENSES:
Management Fees 750 750 1,500 1,500
Legal & Accounting Fees 3,145 3,606 12,270 12,982
Gen. & Admin. Expenses 1,492 3,680 3,658 5,180
Land Maint. Fees 14,355 7,590 19,031 15,787
Interest Expense 87,317 87,317 174,634 174,634
Total Expenses 107,059 102,943 211,093 210,083
NET INCOME (LOSS) (26,984) (93,909) (75,700) (113,711)
<FN>
See notes to financial statements
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HICKORY HILLS, LTD.
(A Limited Partnership)
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
Year-to-date
JUNE 30,
__________________________
1997 1996
____ ____
Cash Flows from
Operating Activities:
Net Loss $ (75,700) $ (113,711)
Adjustments to reconcile
Net Income to Net Cash used
in Operating Activities:
Interest payments
made on Note Pay. (345,000) (120,000)
Increase in Accrued
Interest Payable 174,634 174,634
Change in Accrued
Property Taxes (10,635) (9,855)
(Gain)Loss on Sale of Land (126,762) (83,428)
Change in Other Assets - 21,013
Change in Accrued Exp. (16,712) (1,350)
Change in Escrow Dep. 95,163 10,630
Total Adjustments (229,312) (8,356)
Net Cash (used in)provided by
Operating Activities (305,012) (122,067)
Cash Flows from Investing Activities:
Proceeds from Land Sale 407,138 341,607
Cost of Land Improvements (142,704) (319,473)
Net Cash provided by
Investing Activities 264,434 22,134
Net Increase in Cash
and Cash Equivalents (40,578) 99,933
CASH AT JANUARY 1, 142,345 259,074
CASH AT JUNE 30, 101,767 159,141
======== ========
<FN>
See notes to financial statements.
/TABLE
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HICKORY HILLS, LTD.
(A Limited Partnership)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
For the Six Months Ended June 30, 1997
(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, 1996. 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 six month period ended June 30, 1997
may not be indicative of the results that may be expected for the
year ending December 31,1997.
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 six months were as follows:
1997 1996
---- ----
Management Fees 1,500 1,500
Real Estate Brokerage Commission 13,080 5,265
Accounting Fees 1,300 1,300
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Item 2: MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
RESULTS OF OPERATIONS
During the first six months of 1997, the Registrant sold 16 lots at
the Hendersonville Property for $23,500 per lot and one lake front
lot for $60,000. From these sales proceeds, $345,000 in accrued
interest was paid to the Lender. The remaining proceeds were
retained to cover operating expenses.
During the first six months of 1996, the Registrant sold 17 lots at
the Hendersonville Property for $21,500 per lot. Other than lot
sales, overall operations of the Registrant are comparable to prior
quarters.
FINANCIAL CONDITION
DEVELOPMENT
All development on the Hendersonville Property is complete. No
development is planned for the Nashville Property.
LIQUIDITY
As of July 31, 1997 the Registrant had approximately $83,174 in
cash reserves. These funds are expected to be sufficient through
1997.
The Note payable to Affiliate comes due on December 31, 1997. The
General Partner plans to negotiate an extension of the loan term.
The General Partner does not expect the Registrant to have the
liquidity to retire the debt in full on December 31, 1997. Because
the Registrant and the Lender share the same general partner, it may
be necessary to appoint an independent party to represent the
general partner for the Registrant, the Lender or both during the
loan negotiations. However, if the loan term is not extended, the
lack of payment would constitute a default on the loan agreement.
In such an event the Lender is required to foreclose the loan.
Currently, the Partnership has not foreclosed or accelerated the
amounts due under the loan agreement.
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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.
HICKORY HILLS, LTD.
By: 222 HICKORY, LTD.
General Partner
By:222 PARTNERS, INC.
General Partner
Date: August 14, 1997 By:/s/ Steven D. Ezell
President
Date: August 14, 1997 By:/s/ Michael A. Hartley
Secretary/Treasurer