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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, 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 LENDERS, LTD.
(Exact name of Registrant as specified in its charter)
Tennessee 62-1336905
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification)
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 LENDERS, LTD.
(A Tennessee Limited Partnership)
FINANCIAL STATEMENTS
For The Nine Months Ended September 30, 1997
INDEX
Financial Statements:
Balance Sheets 3
Statements of Operations 4
Statements of Cash Flows 5
Notes to Financial Statements 6
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HICKORY LENDERS, LTD.
(A Limited Partnership)
BALANCE SHEETS
(Unaudited)
September 30, 1997 December 31, 1996
------------- -------------
ASSETS
CASH $ 25,290 $ 374,088
NOTE RECEIVABLE FROM AFFILIATE 2,133,601 2,478,601
LOAN COSTS 4,479 17,919
Total Assets $ 2,163,370 $ 2,870,608
========== ==========
LIABILITIES AND PARTNERS' EQUITY
PARTNERS' EQUITY:
Limited partners (4,200
units outstanding) 2,163,370 2,870,608
General partner - -
Total partners' equity 2,163,370 2,870,608
========== ==========
<FN>
See notes to financial statements.
/TABLE
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HICKORY LENDERS, LTD.
(A Limited Partnership)
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Quarter Ending Year to Date Ending
SEPTEMBER 30,
_________________
1997 1996 1997 1996
____ ____ ____ ____
REVENUE:
Interest - - 5,269 2,578
EXPENSES:
State Income Tax - - 2,968 1,121
Legal &
Accounting Fees - 300 11,172 12,567
General &
Admin. Expenses - 352 889 664
Mortgage
Servicing Fee 1,750 1,750 5,250 5,250
Amortization 4,480 4,480 13,440 13,440
Total Expenses 6,230 6,882 33,719 33,042
NET LOSS $(6,230) (6,882) (28,450) (30,464)
<FN>
See notes to financial statements
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HICKORY LENDERS, LTD.
(A Limited Partnership)
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
Year-to-date
SEPTEMBER 30,
__________________________
1997 1996
____ ____
Cash Flows from Operating Activities:
Net Loss $(28,450) (30,464)
Adjustments to reconcile Net
Income to Net Cash used in
Operating Activities:
Amortization 13,440 13,440
Net Cash used in
Operating Activities (15,010) (17,024)
Cash Flows from Financing Activities:
Payment received on
Note Receivable 345,000 400,000
Distribution to Partners (678,788) (509,091)
Net Cash (used in)/provided
by Financing Activities (333,788) (109,091)
Net Increase/(Decrease) in Cash
and Cash Equivalents (348,798) (126,115)
CASH AT JANUARY 1, 374,088 150,582
CASH AT SEPTEMBER 30, 25,290 $ 24,467
========= ========
<FN>
See notes to financial statements.
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HICKORY LENDERS, LTD.
(A Limited Partnership)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
For the Nine Months Ended September 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 nine month period ended September 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 nine months were as follows:
1997 1996
________ ________
Management Fees $ 5,250 5,250
Accounting Fees 1,600 1,500
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Item 2: MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
RESULTS OF OPERATIONS
The Partnership's primary business is to lend monies to Hickory Hills, Ltd.
Due to the nature of the Registrant, all activity is a result of transactions
in Hickory Hills, Ltd., the loan holder. The Registrant continues its
policy begun in 1991 of not recognizing interest income for financial
reporting purposes on the Lender Financing. This policy was accepted upon
the recommendation of the Registrant's principal accountants because there
had not been any payments made on the Lender Financing since inception and
there has been no independent verification of the value of the land held
as collateral. Interest income will be recognized for tax and loan payment
purposes.
The Note receivable 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 Borrower to have the liquidity to retire the debt
in full on December 31, 1997. Because the Borrower and the Registrant share
the same general partner, it may be necessary to appoint an independent party
to represent the general partner for the Registrant, the Borrower 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 Registrant is required to foreclose the loan. Currently, the
Partnership has not foreclosed or accelerated the amounts due under the loan
agreement.
Overall operations of the Registrant have not fluctuated significantly from
previous quarters.
During the first six months of 1997, the Borrower sold 16 lots at the
Hendersonville Property for $23,500 per lot and one lakefront lot for
$60,000. From these proceeds, $345,000 in interest was paid to the Lender.
The remaining proceeds were retained to cover operating expenses. There were
no sales during the third quarter 1997.
LIQUIDITY
At October 31, 1997 the Registrant had approximately $25,290 in cash
reserves. Due to the minimal expenses of the Registrant, these funds are
expected to be sufficient through 1997.
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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 LENDERS, LTD.
By: 222 HICKORY, LTD.
General Partner
By: 222 PARTNERS, INC.
General Partner
Date: November 21, 1997 By:/s/ Steven D. Ezell
President
Date: November 21, 1997 By:/s/ Michael A. Hartley
Secretary/Treasurer