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 quarterly period ended March 31, 1995
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: 33-17274
MANHATTAN BEACH HOTEL PARTNERS, L.P.
(Exact name of registrant as specified in its charter)
Delaware 95-4201183
(State or other jurisdiction of (I.R.S. Employer
Incorporation or organization) identification No.)
3 World Financial Center, 29th Floor, NY, NY 10285
(Address of principal executive offices) (Zip code)
(212) 526-3237
(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 the past 90 days. Yes X
No
INDEX
Page No.
PART I FINANCIAL INFORMATION
Item 1. Financial Statements
Balance Sheets at March 31, 1995 and December 31, 1994 3
Statement of Partners' Capital (Deficit) for the three
months ended March 31, 1995 3
Statements of Operations for the three months ended
March 31, 1995 and 1994 4
Statements of Cash Flows for the three months ended
March 31, 1995 and 1994 5
Notes to the Financial Statements 6
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations 7
PART II OTHER INFORMATION
Items 1-6 9
Signatures 10
Balance Sheets
March 31, December 31,
Assets 1995 1994
Real estate, at cost:
Building $47,975,974 $47,975,974
Furniture, fixtures and equipment 2,051,355 1,972,493
Leasehold improvements 3,333,141 3,333,141
53,360,470 53,281,608
Less accumulated depreciation
and amortization (9,696,843) (9,270,740)
43,663,627 44,010,868
Cash 2,939,279 2,797,178
Restricted cash 327,418 270,489
Accounts receivable 1,017,361 906,721
Prepaid and other assets 382,943 381,075
Total Assets $48,330,628 $48,366,331
Liabilities and Partners' Capital
Liabilities:
Accounts payable and
accrued liabilities $ 1,287,160 $ 1,291,771
Due to affiliates 2,182,355 2,121,394
Total Liabilities 3,469,515 3,413,165
Partners' Capital (Deficit):
General Partner (1,823,601) (1,809,793)
Limited Partners (6,975,000
limited partnership units
authorized, issued and
outstanding) 46,684,714 46,762,959
Total Partners' Capital 44,861,113 44,953,166
Total Liabilities and
Partners' Capital $48,330,628 $48,366,331
Statement of Partners' Capital (Deficit)
For the three months ended March 31, 1995
Limited General
Partners Partner Total
Balance at December 31, 1994 $46,762,959 $(1,809,793) $44,953,166
Net loss (78,245) (13,808) (92,053)
Balance at March 31, 1995 $46,684,714 $(1,823,601) $44,861,113
Statements of Operations
For the three months ended March 31, 1995 and 1994
Hotel Revenues 1995 1994
Rooms $2,131,531 $1,907,309
Food and beverage 970,527 856,810
Telephone 155,442 116,088
Other 31,420 25,342
Total Revenues 3,288,920 2,905,549
Departmental Expenses
Rooms 620,731 562,464
Food and beverage 875,100 797,813
Telephone 79,537 79,902
Other 10,002 9,649
Total Expenses 1,585,370 1,449,828
Departmental income 1,703,550 1,455,721
Unallocated Partnership
and Hotel Operating Expenses
Advertising and sales 144,945 171,696
General and administrative:
Hotel and other 486,313 480,067
Partnership 117,814 108,198
Utilities and maintenance 278,233 250,420
Ground rent 154,987 138,864
Management fees 85,690 60,525
Property taxes 98,511 98,674
Operating leases 37,216 12,883
Depreciation and amortization 426,103 419,833
1,829,812 1,741,160
Operating loss (126,262) (285,439)
Other Income:
Interest income 33,509 9,102
Other income 700 815
34,209 9,917
Net Loss $ (92,053) $ (275,522)
Net Loss Allocated:
To the General Partner $ (13,808) $ (41,328)
To the Limited Partner (78,245) (234,194)
$ (92,053) $ (275,522)
Per limited partnership unit
(6,975,000 outstanding) $(.01) $(.03)
Statements of Cash Flows
For the three months ended March 31, 1995 and 1994
Cash Flows from Operating Activities: 1995 1994
Net loss $ (92,053) $ (275,522)
Adjustments to reconcile net
loss to net cash provided by
(used for) operating activities:
Depreciation and amortization 426,103 419,833
Increase (decrease) in cash
arising from changes
in operating assets
and liabilities:
Accounts receivable (110,640) (327,408)
Prepaid and other assets (1,868) (46,125)
Accounts payable and
accrued liabilities (4,611) (69,288)
Due to affiliates 60,961 65,843
Net cash provided by (used for)
operating activities 277,892 (232,667)
Cash Flows from Investing Activities:
Restricted cash, net (56,929) -
Additions to real estate (78,862) (31,375)
Net cash used for investing activities (135,791) (31,375)
Net increase (decrease) in cash 142,101 (264,042)
Cash at beginning of period 2,797,178 2,183,410
Cash at end of period $2,939,279 $1,919,368
Notes to the Financial Statements
The unaudited interim financial statements should be read in conjunction with
the Partnership's annual 1994 audited financial statements within Form 10-K.
The unaudited financial statements include all adjustments which are, in the
opinion of management, necessary to present a fair statement of financial
position as of March 31, 1995 and the results of operations and cash flows for
the three months ended March 31, 1995 and 1994 and the statement of changes in
partners' capital (deficit) for the three months ended March 31, 1995. Results
of operations for the periods are not necessarily indicative of the results to
be expected for the full year.
Certain prior year amounts have been reclassified in order to conform to the
current year's presentation.
No significant events have occurred subsequent to fiscal year 1994, and no
material contingencies exist which would require disclosure in this interim
report per Regulation S-X, Rule 10-01, Paragraph (a)(5).
Item 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations
Liquidity and Capital Resources
At March 31, 1995, Manhattan Beach Hotel Partners, L.P. (the "Partnership") had
cash of $2,939,279, including cash held at the Property for working capital.
Cash increased by $142,101 from December 31, 1994 due to cash flow generated by
operating activities which was partially offset by expenditures for fixed asset
additions and funding of the restricted cash account. Such cash balances are
expected to be sufficient to meet the anticipated cash requirements of the
Partnership. Pursuant to the management agreement (the "Management Agreement")
with Manhattan Beach Management Company, an affiliate of Interstate Hotel
Corporation ("Interstate"), contributions to the FF&E reserve account will be
made over time to protect and maintain the value of the Partnership's Hotel.
Accounts receivable increased to $1,017,361 at March 31, 1995, compared to
$906,721 at December 31, 1994. Accounts payable and accrued liabilities
decreased slightly to $1,287,160 at March 31, 1995, compared to $1,291,771 at
December 31, 1994. The changes in both accounts receivable and accounts
payable primarily are due to the timing of payments. Due to affiliates
increased to $2,182,355 at March 31, 1995 compared to $2,121,394 at December
31, 1994, primarily due to the accrual of property management oversight fees.
Cash flow from operations was not sufficient in the first quarter of 1995 to
pay a distribution from operating cash flow. Future distributions will be
dependent on the results of operations of the Hotel and the level of net
operating income available to the Partnership.
Results of Operations
For the three months ended March 31, 1995, the Partnership had a net loss of
$92,053 compared to a net loss of $275,522 for the three months ended March 31,
1994. The improvement in 1995 primarily is due to an increase in departmental
income, comprised of rooms, food and beverage, telephone and other departmental
income, which was partially offset by an increase in unallocated Partnership
and hotel operating expenses.
For the three months ended March 31, 1995, the Hotel generated departmental
income of $1,703,550 compared to $1,455,721 for the corresponding period in
1994. The increase in departmental income for the 1995 period is a result of
higher occupancy levels and room rates, which was partially offset by increased
departmental expenses.
For the three months ended March 31, 1995, unallocated Partnership and Hotel
operating expenses, including depreciation, were $1,829,812 compared to
$1,741,160 for the corresponding period in 1994. The increase largely is due
to an increase in utilities and maintenance, ground rent, management fees and
operating lease expense for the period.
For the three months ended March 31, 1995, the Partnership generated $34,209 in
total other income, compared to $9,917 for the corresponding period in 1994.
The increase primarily is due to an increase in interest income from $9,102 in
1994 to $33,509 in 1995. The increase in interest income is due to higher cash
balances maintained by the Partnership and higher interest rates in 1995.
The following charts summarize the Hotel's performance for the three months
ended March 31 of the indicated years.
-----Average Occupancy-- -----Average Room Rate--
1995 1994 Variance 1995 1994 Variance
81.2% 77.1% 4.1% $76.80 $72.37 $4.43
Total Hotel Sales-----------------------
1995 1994 % Change
$3,288,920 $2,905,549 13.2%
Hotel House Profit----------------------
1995 1994 % Change
$823,993 $562,385 46.5%
House profit is the Hotel's operating profit prior to payments made for certain
other items including, property taxes, insurance, ground rent, equipment
leases, Partnership general and administrative expenses and the funding of the
FF&E reserve account.
Partnership Net Loss--------------------
1995 1994 % Change
($92,053) ($275,522) (66.6%)
PART II OTHER INFORMATION
Items 1-5 Not applicable
Item 6 Exhibits and reports on Form 8-K.
(a) Exhibits - None
(b) Reports on Form 8-K - No reports on Form 8-K were filed during
the quarter ended March 31, 1995.
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.
MANHATTAN BEACH HOTEL PARTNERS, L.P.
BY: MANHATTAN BEACH COMMERCIAL PROPERTIES III INC.
General Partner
Date: May 12, 1995
BY: /s/Jeffrey C. Carter
Name: Jeffrey C. Carter
Title: Director, President and
Chief Financial Officer