UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington D.C. 20549
--------
FORM 10-Q
Quarterly Report Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
For the quarter ended March 31, 2001 Commission File Number 0-15755
-------------- -------
FJS PROPERTIES FUND I, L.P.
---------------------------
(Exact name of registrant as specified in its charter)
Delaware 13-3252067
-------- ----------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
264 Route 537 East
Colts Neck, NJ 07722
-------------- -----
(Address of principal executive offices) (Zip code)
Registrant's telephone number, including area code: (732) 542-9209
--------------
Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 of 15(d) of the Securities and 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 X No
----- ------
Authorized 100,000 limited partnership interests of which 16,788 have been sold
as of May 5, 2001.
FJS PROPERTIES FUND I, L.P.
- ------------------------------------------------------------------------------
INDEX
- ------------------------------------------------------------------------------
Part I: FINANCIAL INFORMATION
Item 1: Financial Statements
Balance sheets as of March 31, 2001 [Unaudited]
and December 31, 2000.................................... 1
Statement of Operations for the three months ended
March 31, 2001 and 2000 [Unaudited]...................... 2
Statement of Partners' Capital for the three months
ended March 31, 2001 [Unaudited]......................... 3
Statements of Cash Flows for the three months ended
March 31, 2001 and 2000 [Unaudited]...................... 4
Notes to Financial Statements [Unaudited]................ 5
Item 2: Management's Discussion and Analysis of Financial Condition
and Results of Operations................................ 6
Part II: OTHER INFORMATION
Item 6: Exhibits and Reports on Form 8-K......................... 7
Signature......................................................... 8
PART I - FINANCIAL INFORMATION
Item 1. FINANCIAL STATEMENTS
- ------------------------------------------------------------------------------
FJS PROPERTIES FUND I, L.P.
- ------------------------------------------------------------------------------
BALANCE SHEETS
- ------------------------------------------------------------------------------
March 31, December 31,
--------- ------------
2 0 0 1 2 0 0 0
------- -------
[Unaudited]
Assets:
Current Assets:
Cash and Cash Equivalents $ 137,229 $ 188,122
Cash - Escrow 126,641 64,184
Cash - Security Deposits 140,433 125,015
Tenant Receivables 5,470 13,215
Other Current Assets 6,186 21,446
----------- ----------
Total Current Assets 415,959 411,982
----------- ----------
Property Investment:
Land 2,296,804 2,296,804
Buildings 6,569,125 6,569,125
Furniture, Fixtures and Improvements 2,840,534 2,758,619
----------- ----------
Totals - At Cost 11,706,463 11,624,548
Less: Accumulated Depreciation (5,523,104) (5,427,009)
------------ -----------
Property Investment - Net 6,183,359 6,197,539
----------- ----------
Other Assets 199,087 189,602
----------- ----------
Total Assets $ 6,798,405 $6,799,123
=========== ==========
Liabilities and Partners' Capital (Deficit):
Current Liabilities:
Accounts Payable $ 71,287 $ 117,747
Accrued Interest 36,861 37,045
Other Accrued Expenses 54,488 7,093
Due to Related Party 4,665 16,704
Tenant Security Deposits Payable 140,433 125,015
Prepaid Rent 18,592 27,597
Mortgage Payable - Current Portion 97,288 94,971
Deferred Income - Current Portion 7,143 7,143
----------- ----------
Total Current Liabilities 430,757 433,315
----------- ----------
Long-Term Liabilities:
Mortgage Payable - Non-Current Portion 4,440,063 4,465,099
Deferred Income - Non-Current Portion 8,928 10,714
----------- ----------
Total Long-Term Liabilities 4,448,991 4,475,813
----------- ----------
Partners' Capital (deficit):
General Partner (1,216,672) (1,216,959)
Limited Partners 3,135,329 3,106,954
----------- ----------
Total Partners' Capital (deficit) 1,918,657 1,889,995
----------- ----------
Total Liabilities and Partners' Capital (deficit) $ 6,798,405 $6,799,123
=========== ==========
See Accompanying Notes to These Financial Statements.
1
FJS PROPERTIES FUND I, L.P.
- ------------------------------------------------------------------------------
STATEMENTS OF OPERATIONS
[UNAUDITED]
- ------------------------------------------------------------------------------
Three months ended
March 31,
2 0 0 1 2 0 0 0
------- -------
Revenue:
Rental $ 583,458 $ 581,120
Interest 1,996 2,449
---------- ----------
Total Revenue 585,454 583,569
---------- ----------
Expenses:
Operating 144,899 148,891
General and administrative 198,930 185,724
Interest 110,767 113,052
Depreciation and amortization 102,196 90,003
---------- ----------
Total expenses 556,792 537,670
---------- ----------
Net income $ 28,662 $ 45,899
========== ==========
Income per limited partnership unit $ 1.69 $ 2.71
========== ==========
Distributions per limited partnership unit. $ 0.00 $ 0.00
========== ==========
Weighted average number of limited
partnership units outstanding 16,788 16,788
---------- ----------
See Accompanying Notes to These Financial Statements.
2
FJS PROPERTIES FUND I, L.P.
- ------------------------------------------------------------------------------
STATEMENT OF PARTNERS' CAPITAL
[UNAUDITED]
- ------------------------------------------------------------------------------
Total
General Limited Partners'
Partner Partners Capital
Partners' Capital (Deficit) -
December 31,2000 $(1,216,959) $3,106,954 $1,889,995
Net Income for the three months
ended March 31, 2001 287 28,375 28,662
---------- ----------- ----------
Partners' Capital (Deficit) -
March 31, 2001 [Unaudited] $(1,216,672) $ 3,135,329 $1,918,657
============ =========== ==========
See Accompanying Notes to These Financial Statements.
3
FJS PROPERTIES FUND I, L.P.
- ------------------------------------------------------------------------------
STATEMENTS OF CASH FLOWS
[UNAUDITED]
- ------------------------------------------------------------------------------
Three months ended
March 31,
---------
2 0 0 1 2 0 0 0
------- -------
Operating activities:
Net income $ 28,662 $ 45,899
Adjustments to reconcile net income to
net cash provided by operating activities:
Depreciation 96,095 83,901
Amortization 6,101 6,102
Deferred Income (1,786) (1,786)
Changes in Assets and Liabilities:
(Increase) in escrow (62,457) (6,499)
(Increase) in security deposits (15,418) (16,369)
Decrease in Tenant Receivables 7,745 0
Decrease in other current assets 15,260 13,334
(Increase) decrease in other assets (15,586) 11,940
Increase in accounts payable
and accrued expenses 751 26,300
(Decrease) in prepaid rents (9,005) 0
(Decrease) increase in due to related party (12,039) (11,904)
Increase in tenant security deposits 15,418 16,369
----------- ----------
Total Adjustments 25,079 121,388
----------- ----------
Net Cash Provided by Operating Activities 53,741 167,287
----------- ----------
Investing Activities:
Capital Expenditures (81,915) (109,928)
------------ -----------
Net Cash (used in) Investing Activities (81,915) (109,928)
------------ -----------
Financing Activities:
Principal Payments on Mortgages (22,719) (20,451)
------------ -----------
Net cash (used in) Financing Activities (22,719) (20,451)
------------ -----------
Net (decrease) increase in cash and cash equivalents (50,893) 36,908
Cash and Cash Equivalents - Beginning of Periods 188,122 217,906
----------- ----------
Cash and Cash Equivalents - End of Periods $ 137,229 $ 254,814
=========== ==========
Supplemental disclosure of cash flow information:
Interest paid $ 111,134 $ 113,220
=========== ==========
For purposes of the statement of cash flows, the Company considers all highly
liquid debt instruments purchased with a maturity of three months or less to be
cash equivalents.
See Accompanying Notes to These Financial Statements.
4
FJS PROPERTIES FUND I, L.P.
NOTES TO FINANCIAL STATEMENTS
[UNAUDITED]
- ------------------------------------------------------------------------------
[A] Significant Accounting Policies
Significant accounting policies of FJS Properties Fund I, L.P. are set forth in
the Partnership's Form 10-K for the year ended December 31, 2000, as filed with
the Securities and Exchange Commission.
[B] Basis of Reporting
The balance sheet as of March 31, 2001, the statements of operations for the
three months ended March 31, 2001 and 2000, the statement of partners' capital
(deficit) for the three months ended March 31, 2001, and the statements of cash
flows for the three months ended March 31, 2001 and 2000 have been prepared by
the Partnership without audit. The accompanying unaudited financial statements
have been prepared in accordance with generally accepted accounting principles
for interim financial information and with the instructions to Form 10-Q and
Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the
information and footnotes required by generally accepted accounting principles
for complete financial statements. In the opinion of the managing partner, such
statements include all adjustments [consisting only of normal recurring items]
which are considered necessary for a fair presentation of the financial position
of the Partnership at March 31, 2001, and the results of its operations and cash
flows for the three months then ended. It is suggested that these financial
statements be read in conjunction with Form S-11 filed with the Securities and
Exchange Commission on April 25, 1985 and with the financial statements and
notes contained in the Partnership's Form 10-K for the year ended December 31,
2000.
5
FJS PROPERTIES FUND I, L.P.
- ------------------------------------------------------------------------------
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
- ------------------------------------------------------------------------------
LIQUIDITY AND CAPITAL RESOURCES
As of the present date, the Partnership owns and operates one Property, the
Pavilion Apartments, and does not intend to acquire any other property.
Cash flow from Pavilion should be sufficient to permit the Partnership to make
the constant monthly payments due prior to maturity on the first mortgage and to
meet its monthly operating expenses. However, should there be a significant
decrease in Pavilion's occupancy or rental rates, there can be no assurance that
the Partnership would be able to obtain sufficient funds to make such payments.
OPERATIONS
The Partnership has operated the Pavilion Apartments, located in West Palm
Beach, Florida since January 1985.
The project operated with occupancies in the mid-90% range for the first quarter
of 2001. Physical occupancy stands at 97% as of May 4, 2001. Of the seven vacant
apartments (excluding the one vacant model apartment) 4 are available for rent
with the remaining three apartments pre leased for May occupancy.
Rental revenues for the three month period ended March 31, 2001, remained
substantially unchanged at $583,458 as compared to $581,120 for the comparable
period of the prior year. Operating expenses, consisting mainly of real estate
taxes, repairs and maintenance and utilities decreased slightly to $144,899 from
$148,891 for the comparable three month periods of 2001 and 2000 respectively.
During the first quarter of 2001 the following sums were expended on
capitalizable replacements.
Item Amount spent
Stoves/Refrigerators/Dishwashers $ 5,630
Carpeting 28,256
Tile Replacement 7,627
Roofs 16,200
Dumpster Gates 11,698
Counter Tops 9,960
Misc. Interior Improvements 2,544
------------
Total: $ 81,915
============
General and administrative expenses increased to $198,930 as compared to
$185,724 for the comparable three month period of the prior year. This reflects
increases in payroll and court costs and eviction expenses.
While the first quarter general and administrative expenses show only a small
increase in insurance expense as compared to 2000, the Partnership has received
notice that the renewal premium for the period from April 1, 2001 through March
31, 2002, has increased substantially from $66,690 to $118,766. Our managing
agent is in the process of seeking alternatives for this coverage. We are unable
to predict at this time whether a lower cost alternative can be found.
INFLATION
As of the present date, inflation has not had a major impact on the operations
of the Partnership.
6
FJS PROPERTIES FUND I, L.P.
- ------------------------------------------------------------------------------
PART II - OTHER INFORMATION
- ------------------------------------------------------------------------------
Item 6. Exhibits and Reports on Form 8-K
Item 6. Exhibits and Reports on Form 8-K
[a] Exhibits as required by Item 601 of Regulation S-K:
None Required
[b] Reports on Form 8-K:
None filed during the quarter for which this report is submitted.
7
FJS PROPERTIES FUND I, L.P.
- ------------------------------------------------------------------------------
SIGNATURE
- ------------------------------------------------------------------------------
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.
FJS PROPERTIES FUND I, L.P.
Date: May 5, 2001 By: /s/ Andrew C. Alson
----------------------------------
Andrew C. Alson
(President and Chief Financial Officer)
FJS Properties, Inc.
General Partner
8