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 May 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: 0-15550
HUTTON/GSH AMERICAN STORAGE PROPERTIES, L.P.
(Exact name of registrant as specified in its charter)
Virginia 11-2741889
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
3 World Financial Center, 29th Floor,
New York, NY Attn: Andre Anderson 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
Consolidated Balance Sheets at May 31, 1995 and
November 30, 1994 3
Consolidated Statement of Partners' Capital (Deficit)
for the six months ended May 31, 1995 3
Consolidated Statements of Operations for the three and
six months ended May 31, 1995 and 1994 4
Consolidated Statements of Cash Flows for the six months
ended May 31, 1995 and 1994 4
Notes to the Consolidated Financial Statements 5
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations 6
PART II OTHER INFORMATION
Items 1-6 7
Signatures 8
Consolidated Balance Sheets
May 31, November 30,
Assets 1995 1994
Self-service storage facilities, at cost:
Land $ 3,756,319 $ 3,756,319
Buildings and improvements 16,018,252 16,005,525
19,774,571 19,761,844
Less accumulated depreciation (5,681,452) (5,353,132)
14,093,119 14,408,712
Cash and cash equivalents 2,325,686 2,001,535
Other assets 136,943 146,233
Total Assets $ 16,555,748 $ 16,556,480
Liabilities and Partners' Capital
Liabilities:
Accounts payable and accrued expenses $ 102,123 $ 86,485
Due to affiliates 15,778 35,157
Security deposits 13,924 15,804
Advance rent 137,474 114,524
Distribution payable 408,576 408,576
Total Liabilities 677,875 660,546
Partners' Capital (Deficit):
General Partners (122,504) (119,221)
Limited Partners 16,000,377 16,015,155
Total Partners' Capital 15,877,873 15,895,934
Total Liabilities and Partners' Capital $ 16,555,748 $ 16,556,480
Consolidated Statement of Partners' Capital (Deficit)
For the six months ended May 31, 1995
General Limited
Partners Partners Total
Balance at December 1, 1994 $ (119,221) $ 16,015,155 $ 15,895,934
Net income (loss) (3,283) 802,374 799,091
Cash distributions 0 (817,152) (817,152)
Balance at May 31, 1995 $ (122,504) $ 16,000,377 $ 15,877,873
Consolidated Statements of Operations
Three months ended Six months ended
May 31, May 31,
Income 1995 1994 1995 1994
Rent $ 850,069 $ 834,554 $ 1,701,172 $ 1,645,931
Interest 32,066 10,761 57,978 20,021
Total Income 882,135 845,315 1,759,150 1,665,952
Expenses
Property operating 280,013 266,581 555,994 545,255
Depreciation 164,125 162,254 328,320 324,456
General and administrative 38,964 31,817 75,745 70,665
Total Expenses 483,102 460,652 960,059 940,376
Net Income $ 399,033 $ 384,663 $ 799,091 $ 725,576
Net Income (Loss) Allocated:
To the General Partners $ (1,641) $ (1,623) $ (3,283) $ (3,245)
To the Limited Partners 400,674 386,286 802,374 728,821
$ 399,033 $ 384,663 $ 799,091 $ 725,576
Per limited partnership
unit (50,132 outstanding) $ 8.00 $ 7.71 $ 16.01 $ 14.54
Consolidated Statements of Cash Flows
For the six months ended May 31, 1995 and 1994
Cash Flows from Operating Activities: 1995 1994
Net income $ 799,091 $ 725,576
Adjustments to reconcile net income to
net cash provided by operating activities:
Depreciation 328,320 324,456
Increase (decrease) in cash arising from
changes in operating assets and liabilities:
Other assets 9,290 (39,137)
Accounts payable and accrued expenses 15,638 (12,156)
Due to affiliates (19,379) 13,588
Security deposits (1,880) (2,638)
Advance rent 22,950 7,254
Net cash provided by operating activities 1,154,030 1,016,943
Cash Flows from Investing Activities:
Additions to real estate (12,727) (33,094)
Net cash used for investing activities (12,727) (33,094)
Cash Flows from Financing Activities:
Distributions paid (817,152) (817,152)
Net cash used for financing activities (817,152) (817,152)
Net increase in cash and cash equivalents 324,151 166,697
Cash and cash equivalents at beginning of period 2,001,535 1,562,452
Cash and cash equivalents at end of period $ 2,325,686 $ 1,729,149
Notes to the Consolidated Financial Statements
The unaudited interim consolidated financial statements should be read in
conjunction with the Partnership's annual 1994 audited financial statements
within Form 10-K.
The unaudited consolidated financial statements include all adjustments which
are, in the opinion of management, necessary to present a fair statement of
financial position as of May 31, 1995 and the results of operations and cash
flows for the six months ended May 31, 1995 and 1994 and the statement of
partners' capital (deficit) for the six months ended May 31, 1995. Results of
operations for the periods are not necessarily indicative of the results to be
expected for the full year.
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).
Part I, Item 2. Management's Discussion and Analysis of Financial Condition
and Results of Operations
Liquidity and Capital Resources
As of May 31, 1995, the Partnership had cash and short-term investments of
$2,325,686 which were invested in unaffiliated money market accounts. The
increase of $324,151 from November 30, 1994 is attributable to net cash
provided by operating activities exceeding cash distributions to the Limited
Partners and additions to real estate.
Other assets decreased from $146,233 at November 30, 1994 to $136,943 at
May 31, 1995, primarily due to a decrease in rent receivable.
Accounts payable and accrued expenses increased from $86,485 at November 30,
1994 to $102,123 at May 31, 1995. The increase is primarily attributable to
the timing of payments for property appraisals, legal fees and real estate
taxes.
The Partnership expects sufficient cash flow to be generated from operations to
meet its current operating requirements. Net cash from operations is
distributed to the Limited Partners on a quarterly basis in proportion to the
number of units held by each Limited Partner. On or about July 17, 1995, the
Partnership will pay a distribution of net cash from operations of $8.15 per
unit for the quarter ended May 31, 1995.
Certain age-related repairs and capital improvements which are required at the
properties are being funded from the Partnership's cash reserves and cash flow
from operations. Future cash distributions will depend on the adequacy of cash
flow from operations following capital improvements and could be reduced should
market conditions negatively impact occupancy. The amount of future cash
distributions to the Limited Partners will be determined quarterly following a
review of the Partnership's operations and cash requirements.
Results of Operations
Partnership operations resulted in net income of $399,033 and $799,091 for the
three and six months ended May 31, 1995, respectively, compared with $384,663
and $725,576 for the corresponding periods in fiscal 1994. The improvement in
operating results for 1995 is primarily attributable to an increase in rental
income and interest income, partially offset by higher property operating and
general and administrative expenses.
Rental income totaled $850,069 and $1,701,172 for the three and six months
ended May 31, 1995, respectively, compared with $834,554 and $1,645,931 for the
corresponding periods in fiscal 1994. The increase in rental income can be
attributed in part to higher occupancy, particularly at the Mechanicsville
facility, as well as increased rental rates at several of the Partnership's
properties.
Property operating expenses totaled $280,013 and $555,994 for the three and six
months ended May 31, 1995, respectively, compared with $266,581 and $545,255
for the corresponding periods in fiscal 1994. The increase is primarily due to
higher costs for routine repairs and maintenance. General and administrative
expenses totaled $38,964 and $75,745 for the three and six months ended May 31,
1995, respectively, compared with $31,817 and $70,665 for the corresponding
periods in fiscal 1994. The increase in 1995 reflects higher expenses for
audit fees, legal fees and printing and postage.
The average weighted occupancy at the Partnership's properties was 90% at
May 31, 1995, compared with 91% at May 31, 1994.
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 three month period covered by this report.
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.
HUTTON/GSH AMERICAN STORAGE PROPERTIES, L.P.
BY: STORAGE SERVICES INC.
General Partner
Date: July 14, 1995 BY: s/Paul L. Abbott/
Name: Paul L. Abbott
Title: Director, President, Chief
Executive Officer and Chief
Financial Officer