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FORM 10-QSB
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
(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, 2001
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the transition period from December 31, 2000 to March 31, 2001
COMMISSION FILE NUMBER 0-18528
INCOME GROWTH PARTNERS, LTD. X
(Exact name of registrant as specified in its charter)
CALIFORNIA 33-0294177
(STATE OR OTHER JURISDICTION OF (I.R.S. EMPLOYER
INCORPORATION OR ORGANIZATION) IDENTIFICATION NO.)
11300 Sorrento Valley Road, Suite 108, San Diego, California 92121
(Address of principal executive offices) (Zip Code)
(619) 457-2750
(Registrant's telephone number, including area code)
(Former name, former address and former fiscal year,
if changed since last report)
Indicate by check mark whether the registration (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
filing requirements for the past 90 days. Yes [X] No [ ]
The number of the registrant's Original Limited Partnership Units outstanding as
of May 14, 2001 was 18,826.5. The number of the registrant's Class A Units
outstanding as of May 14, 2001 was 8,100.
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PART I - FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
INCOME GROWTH PARTNERS, LTD. X AND SUBSIDIARY A CALIFORNIA LIMITED PARTNERSHIP
CONSOLIDATED BALANCE SHEETS
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March 31 December 31,
2001 2000
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ASSETS
Rental properties
Land $ 7,078,365 $ 7,078,365
Buildings and improvements 22,155,531 22,078,598
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29,233,895 29,156,963
Less accumulated depreciation (11,394,986) (11,186,735)
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17,838.909 17,970,228
Cash and cash equivalents 647,925 599,660
Deferred loan fees, net of accumulated amortization
of $260,452 and $243,849, respectively 516,731 533,334
Prepaids and other assets 21,465 127,200
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$ 19,025,030 $ 19,230,422
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LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
Mortgage loans payable $ 19,112,155 $ 19,170,729
Other liabilities
Loan payable to affiliates 18,703 18,703
Accounts payable and accrued liabilities 217,386 177,008
Accrued interest payable 125,699 125,699
Security deposits 230,714 232,852
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19,704,657 19,724,991
Commitments and contingencies
Partners' capital (deficit) (669,627) (484,569)
Note receivable from general partner (10,000) (10,000)
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$ 19,025,030 $ 19,230,422
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The accompanying notes are an integral part of these financial statements.
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INCOME GROWTH PARTNERS, LTD. X AND SUBSIDIARY A CALIFORNIA LIMITED PARTNERSHIP
STATEMENTS OF OPERATIONS FOR THE THREE MONTHS ENDED MARCH 31, 2001 AND 2000
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2001 2000
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REVENUES
Rents $1,214,634 $1,137,590
Other 88,390 50,896
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Total revenues 1,303,024 1,188,486
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EXPENSES
Operating expenses 646,949 498,494
Depreciation and amortization 224,854 230,680
Interest 365,179 391,025
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Total expenses 1,236,982 1,120,199
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Net income (loss) $ 66,042 $ 68,287
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BASIC AND DILUTED PER LIMITED PARTNERSHIP UNIT DATA
Net income (loss) per limited partnership unit $ 2.08 $ 2.16
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Weighted average limited partnership units 26,926 26,926
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The accompanying notes are an integral part of these financial statements.
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INCOME GROWTH PARTNERS, LTD. X AND SUBSIDIARY A CALIFORNIA LIMITED PARTNERSHIP
STATEMENTS OF CASH FLOWS FOR THE THREE MONTHS ENDED MARCH 31, 2001 AND 2000
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2001 2000
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CASH FLOWS FROM OPERATING ACTIVITIES
Net income (loss) $ 66,042 $ 68,287
Adjustments to reconcile net loss to net cash provided by
operating activities
Depreciation and amortization 224,854 230,680
(Increase) / Decrease in
Prepaid expenses and other assets 105,735 (255,488)
Increase / (Decrease) in
Accounts payable, accrued liabilities and accrued
interest payable 40,379 10,443
Security deposits (2,138) 8,045
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Net cash provided by operating activities 434,872 184,467
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CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures (76,933) (80,371)
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Net cash used in investing activities (76,933) (80,371)
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CASH FLOWS FROM FINANCING ACTIVITIES
Principal payments under mortgage debt (58,574) (19,434)
Due to Affiliates (2,500)
Distributions to Investors (251,100) (147,710)
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Net cash used by financing activities (309,674) (169,644)
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Net increase (decrease) in cash and cash equivalents 48,265 (65,548)
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Cash and cash equivalents at beginning of period 599,660 434,712
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Cash and cash equivalents at end of period $ 647,925 $ 369,164
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The accompanying notes are an integral part of these financial statements.
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INCOME GROWTH PARTNERS, LTD. X AND SUBSIDIARY A CALIFORNIA LIMITED PARTNERSHIP
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS MARCH 31, 2001 AND 2000
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The accompanying unaudited consolidated financial statements of Income Growth
Partners, Ltd. X, a California limited partnership, and subsidiary (the
"Partnership") have been prepared pursuant to the rules and regulations of the
Securities and Exchange Commission. Certain information and note disclosures
normally included in annual financial statements prepared in accordance with
generally accepted accounting principles have been condensed or omitted pursuant
to those rules and regulations, although the Partnership believes that the
disclosures made are adequate to make the information presented not misleading.
These consolidated financial statements should be read in conjunction with the
consolidated financial statements and the notes thereto included in the
Partnership's latest audited financial statements for the year ended December
31, 2000 filed on Form 10K.
The accompanying consolidated financial statements have not been audited by
independent public accountants, but include all adjustments (consisting of
normal recurring adjustments) which are, in the opinion of the general partners,
necessary for a fair presentation of the financial condition, results of
operations and cash flows for the periods presented. However, these results are
not necessarily indicative of results for a full year.
Certain prior period amounts have been reclassified to conform with the current
period presentation.
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INCOME GROWTH PARTNERS, LTD. X AND SUBSIDIARY A CALIFORNIA LIMITED PARTNERSHIP
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS MARCH 31, 2001 AND 2000
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ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS
The following Management's Discussion and Analysis of Financial Condition and
Results of Operations should be read in conjunction with the financial
statements and notes thereto filed herewith.
a. Liquidity and Capital Resources:
Since inception, the Partnership's operating and debt service obligations have
been financed through the sale of Partnership Units, cash provided by operating
activities, and 1995 debt restructuring activities. During the three months
ended March 31, 2001, all of the Partnership's operating and debt service cash
requirements have been met through cash generated from operations.
The Mission Park mortgage was refinanced in December 1995 at a fixed interest
rate of 7.76%. The Shadowridge Meadows mortgage was refinanced in October 1997
at a fixed interest rate of 7.49%.
In the event that one or more of the properties is unable to support its debt
service and the Partnership is unable to cover operational shortfalls from cash
reserves, the Partnership may have to take one or more alternative courses of
action. The general partners would then determine, based on their analysis of
relevant economic conditions and the status of the properties, a course of
action intended to be consistent with the best interests of the Partnership.
Possible courses of action might include the sacrifice, sale or refinancing of
one or more of the properties, the entry into one or more joint venture
partnerships with other entities, or the filing of another bankruptcy petition.
Net cash provided by operating activities for the three months ended March 31,
2001 was approximately $435,000 compared to approximately $184,000 for the same
period in 2000. The principal reasons for this increase can be attributed to
increase in rental revenue and decrease in prepaid expenses.
Net cash used in investing activities for the three months ended March 31, 2001
was approximately $77,000 compared to approximately $80,000 for the same period
in 2000. The principal reason for this decrease was a decrease in capital
expenditures.
Net cash used in financing activities for the three months ended March 31, 2001
was approximately $310,000 compared to approximately $170,000 for the same
period in 2000. The principal reason for this increase was an increase in
distributions to investors.
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INCOME GROWTH PARTNERS, LTD. X AND SUBSIDIARY A CALIFORNIA LIMITED PARTNERSHIP
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS MARCH 31, 2001 AND 2000
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b. Results of Operations:
COMPARISON OF THREE MONTHS ENDED MARCH 31, 2001 TO THE THREE
MONTHS ENDED MARCH 31, 2000.
Rental revenue for the three months ended March 31, 2001 was approximately
$1,215,000, an increase of 7% over rents of approximately $1,138,000 for the
comparable period in 2000. The increase is primarily attributable to an increase
in monthly tenant rental rates and steady average occupancy rates.
Operating expenses for the three months ended March 31, 2001 were approximately
$647,000, an increase of 29% over operating expenses of approximately $499,000
for the comparable period in 2000. The increase is primarily attributable to an
increase in property and administration expenses.
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INCOME GROWTH PARTNERS, LTD. X AND SUBSIDIARY A CALIFORNIA LIMITED PARTNERSHIP
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS MARCH 31, 2001 AND 2000
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PART II - OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS:
There are no pending legal proceedings which may have a material adverse effect
on the Partnership. However, the Partnership is involved in small claims court
proceedings against certain present or former tenants of its apartment complexes
with regard to landlord-tenant matters, all of which are considered to be in the
ordinary course of its business.
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:
None
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INCOME GROWTH PARTNERS, LTD. X AND SUBSIDIARY A CALIFORNIA LIMITED PARTNERSHIP
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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.
Date: May 14, 2001
INCOME GROWTH PARTNERS, LTD. X,
a California Limited Partnership
By: Income Growth Management, Inc.
General Partner
By: /s/ Timothy C. Maurer
-------------------------------------
Timothy C. Maurer
Principal Financial Officer AND
Duly Authorized Officer of the Registrant
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