SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-QSB
(Mark One)
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934
For the quarter period ended February 28, 2001
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 0-11023
MAXUS REAL PROPERTY INVESTORS-FOUR, L.P.
(Exact name of small business issuer as specified in its charter)
Missouri 43-1250566
(State or other jurisdiction of (I.R.S. Employer Identification No.)
incorporation or organization)
104 Armour Road, North Kansas City, Missouri 64116
(Address of principal executive offi (Zip Code)
Registrant's telephone number, including area code (816) 303-4500
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 [X] No [ ]
INDEX
Page
PART I - FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS:
Balance Sheet 3
Statements of Operations 4
Statements of Cash Flows 5
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF RESULTS
OF OPERATIONS 7
PART II - OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS 9
ITEM 2. CHANGES IN SECURITIES 9
ITEM 3. DEFAULTS UPON SENIOR SECURITIES 9
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS 9
ITEM 5. OTHER INFORMATION 9
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K 9
SIGNATURES 10
EXHIBIT INDEX 11
2
PART 1 - FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
MAXUS REAL PROPERTY INVESTORS - FOUR, L.P.
(A LIMITED PARTNERSHIP)
BALANCE SHEET
February 28, November 30,
2001 2000
(Unaudited)
ASSETS:
Investment property
Land $ 1,014,000 1,014,000
Buildings and improvements 15,335,000 15,313,000
------------ ------------
16,349,000 16,327,000
Less accumulated depreciation 9,392,000 9,259,000
------------ ------------
Total investment property 6,957,000 7,068,000
Cash 1,466,000 1,186,000
Accounts receivable, less allowance for doubtful accounts 30,000 51,000
Prepaid expenses 33,000 12,000
Deferred expenses, less accumulated amortization 101,000 93,000
------------ ------------
Total assets $ 8,587,000 8,410,000
============ ============
LIABILITIES AND PARTNER'S DEFICIT:
Liabilities:
Mortgage notes payable $ 9,900,000 9,900,000
Accounts payable and accrued expenses 246,000 124,000
Refundable tenant deposits 100,000 99,000
------------ ------------
Total liabilities 10,246,000 10,123,000
Partners' deficit (1,659,000) (1,713,000)
------------ ------------
Total liabilities and partners' deficit 8,587,000 8,410,000
============ ============
3
MAXUS REAL PROPERTY INVESTORS - FOUR, L.P.
(A LIMITED PARTNERSHIP)
STATEMENTS OF OPERATIONS
(UNAUDITED)
Three Months Ended
February 28 February 29
2001 2000
Revenues:
Rental $ 649,000 684,000
Other 45,000 115,000
--------- ---------
Total revenues 694,000 799,000
--------- ---------
Expenses:
Depreciation and amortization 135,000 164,000
Repairs and maintenance, including common
area maintenance 80,000 84,000
Real estate taxes 34,000 90,000
Interest, net 173,000 317,000
Professional fees 30,000 41,000
General and administrative 54,000 42,000
Utilities 36,000 51,000
Property management fees - related parties 42,000 37,000
Other 56,000 61,000
--------- ---------
Total expenses 640,000 887,000
--------- ---------
Net Income (loss) $ 54,000 (88,000)
========= =========
Net income (loss) allocation:
General partners $ 1,000 (1,000)
Limited partners 53,000 (87,000)
--------- ---------
$ 54,000 (88,000)
========= =========
Limited partners' data:
Net income (loss) per unit $ 3.92 (6.41)
========= =========
Weighted average limited partnership units outstanding 13,529 13,529
========= =========
4
MAXUS REAL PROPERTY INVESTORS-FOUR, L.P.
(A LIMITED PARTNERSHIP)
STATEMENTS OF CASH FLOWS
(UNAUDITED)
Three Months Ended
February 28 February 29
2001 2000
Cash flows from operating activities:
Net income (loss) $ 54,000 (88,000)
Adjustments to reconcile net income (loss) to net
cash provided by (used in) operating activities:
Depreciation and amortization 135,000 164,000
Changes in accounts affecting operations:
Accounts receivable 21,000 64,000
Prepaid expenses (21,000) 6,000
Accounts payable and accrued expenses 122,000 (80,000)
Refundable tenant deposits 1,000 5,000
Deferred expenses (10,000) --
----------- -----------
Net cash provided by operating activities 302,000 71,000
----------- -----------
Cash flows from investing activities - capital
expenditures (22,000) (19,000)
----------- -----------
Cash flows from financing activities -principal payments
on mortgage notes payable -- (63,000)
----------- -----------
Net (decrease) increase in cash 280,000 (11,000)
Cash, beginning of period 1,186,000 21,000
----------- -----------
Cash, end of period $ 1,466,000 10,000
=========== ===========
Supplemental disclosure of cash flow information -
cash paid during the quarter for interest $ 184,000 404,000
=========== ===========
5
MAXUS REAL PROPERTY INVESTORS-FOUR, L.P.
(A LIMITED PARTNERSHIP)
NOTES TO UNAUDITED FINANCIAL STATEMENTS
THREE MONTHS ENDED FEBRUARY 28, 2001 AND FEBRUARY 29, 2000
(1) Summary of Significant Accounting Policies
Refer to the financial statements of Maxus Real Property Investors - Four, L.P.,
formerly known as Nooney Real Property Investors - Four, L.P. (the
"Partnership"), for the year ended November 30, 2000, which are contained in the
Partnership's Annual Report on Form 10-KSB, for a description of the accounting
policies which have been continued without change except as noted below. Also,
refer to the footnotes to those statements for additional details of the
Partnership's financial condition. The details in those notes have not changed
except as a result of normal transactions in the interim or as noted below. In
the opinion of the general partner, all adjustments (which include only normal
recurring adjustments) necessary to present fairly the financial position,
results of operations and cash flow at February 28, 2001 and for all periods
presented have been made. The results for the three-month period ended February
28, 2001 are not necessarily indicative of the results which may be expected for
the entire year.
(a) Description of Business
The Partnership is a limited partnership organized under the laws of the State
of Missouri on February 9, 1982. The Partnership was organized to invest
primarily in income-producing real properties such as shopping centers, office
buildings and other commercial properties, apartment buildings, warehouses, and
light industrial properties. The Partnership's portfolio is comprised of an
apartment building located in West St. Louis County, Missouri (Woodhollow
Apartments) which generated 100% of total revenues for the quarter ended
February 28, 2001 and 76% of total revenues for the quarter ended February 29,
2000. A retail shopping center (Cobblestone Court) located in Burnsville,
Minnesota, a suburb of Minneapolis, which generated 24% of total revenues for
the quarter ended February 29, 2000, was sold on May 24, 2000.
(b) Basis of Accounting
The financial statements include only those assets, liabilities, and results of
operations of the partners which relate to the business of Maxus Real Property
Investors-Four, L.P. The statements do not include assets, liabilities, revenues
or expenses attributable to the partners' individual activities. No provision
has been made for federal and state income taxes since these taxes are the
responsibility of the partners.
(the remainder of this page left blank intentionally)
6
ITEM 2: MANAGEMENT'S DISCUSSION AND ANALYSIS OR RESULTS OF OPERATIONS
This 10-QSB contains forward-looking information (as defined in the Private
Securities Litigation Reform Act of 1995) that involves risk and uncertainty,
including trends in the real estate investment market, projected leasing and
sales, and future prospects for the Partnership. Actual results could differ
materially from those contemplated by such statements.
Liquidity and Capital Resources
Cash reserves as of February 28, 2001 are $1,466,000 an increase of $280,000
from November 30, 2000. Cash provided from operating activities for the three
months ended February 28, 2001 was $302,000. The increase in cash provided by
operating activities was due primarily to an increase of $142,000 in net income
(loss) from ($88,000) for the period ended February 29, 2000 to $54,000 for the
period ended February 28, 2001. In addition, accounts payable and accrued
expenses increased $122,000. Investing activities used $22,000 due to property
and equipment purchases.
Results of Operations
The results of operations for the Partnership's properties for the quarters
ended February 28, 2001 and February 29, 2000 are detailed in the schedule
below. Expenses of the Partnership are excluded.
2001 Woodhollow Apartments Cobblestone Court
Revenues $ 694,000 $--
Expenses 640,000 --
--------- -------
Net Income $ 54,000 $--
========= =======
2000 Woodhollow Apartments Cobblestone Court
Revenues $ 610,000 $189,000
Expenses 637,000 251,000
--------- ----------
Net Loss $ (27,000) $ (62,000)
========= ==========
Cobblestone Court was sold May 24, 2000, and accordingly is not included in the
2001 results.
At Woodhollow Apartments, revenues increased $84,000 in first quarter of 2001
compared to the same period in 2000. The increase in revenue is primarily due to
an increase in rental income of $70,000 and miscellaneous income of $14,000. At
Woodhollow, occupancy increased to 99% from 95% at November 30, 2000. Expenses
remained consistent with 2000.
7
Pro Forma Results
The table below presents the pro-forma results of operations without Cobblestone
Court for the three months ended February 29, 2000. Cobblestone Court was sold
May 24, 2000. These pro forma operating results are not necessarily indicative
of what the actual results would have been had the Cobblestone Court property
been sold at the beginning of the earliest period presented.
Three Months Ended
February 28, February 29,
2001 2000
(Proforma)
Revenues $694,000 610,000
Repairs and maintenance, including
common area maintenance 80,000 35,000
Interest, net 173,000 212,000
Depreciation 135,000 160,000
General and administrative 54,000 41,000
Property management fees 42,000 29,000
Other 156,000 165,000
-------- --------
Total expenses 640,000 642,000
-------- --------
Net income (loss) $ 54,000 (32,000)
======== ========
Net income (loss)
per limited partnership unit 3.92 (2.32)
======== ========
Results of Operations - Consolidated
For the three month period ended February 28, 2001, the Partnership's
consolidated revenues were $694,000 compared with $799,000 for the three months
ended February 29, 2000. Revenues decreased by $105,000 (13.1%) for the three
months ended February 28, 2001 compared to the same period ended February 29,
2000. Revenue at Woodhollow for the quarter ended February 28, 2001 increased by
$84,000, offset by a decrease in income due to the sale of Cobblestone Court of
$189,000.
For the three month periods ended February 28, 2001 and February 29, 2000, the
Partnership's consolidated expenses were $640,000 and $887,000, respectively.
Expenses decreased by $247,000 (27.8%) for the three month period ended February
28, 2001 as compared to the same period ended February 29, 2000. Expenses at
Woodhollow for the three months ended February 28, 2001 were consistent with the
period ended February 29, 2000. Expenses at Cobblestone Court decreased by
$251,000 due to the sale of Cobblestone Court in May 2000.
8
PART II. OTHER INFORMATION
ITEM 1: LEGAL PROCEEDINGS
None
ITEM 2. CHANGES IN SECURITIES
None
ITEM 3. DEFAULTS UPON SENIOR SECURITIES
None
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
None
ITEM 5. OTHER INFORMATION
None
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits
See Exhibit Index on Page 11
(b) Reports on Form 8-K
No reports on Form 8-K were filed by the Registrant during the
first quarter of 2001.
9
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.
Dated: April 11, 2001 MAXUS REAL PROPERTY INVESTORS-FOUR, L.P.
By: MAXUS CAPITAL CORP.
General Partner
By: /s/ John W. Alvey
John W. Alvey
Director, Vice President
Secretary and Treasurer
(Principal Financial Officer)
10
EXHIBIT INDEX
Exhibit
Number Description
3.1 Amended and Restated Agreement and Certificate of Limited Partnership
dated April 7, 1982 is incorporated by reference to the Form 10-K for
the year ended November 30, 1999 filed by the Registrant under the
Securities Act of 1933 (File No. 000-11023)
3.2 Amended of Certificate of Limited Partnership date December 21, 1999 is
incorporated by reference to the Form 8-K filed by the Registrant under
the Securities Act of 1933 (File No. 000-11023)
11