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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
X Quarterly Report Pursuant to Section 13 or 15(d) of the
- ------ Securities Exchange Act of 1934
For the quarterly period ended June 30, 2003
Transition Report Pursuant to Section 13 or 15(d) of the
- ------ Securities Exchange Act of 1934
For the transition period from to .
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Commission File Number 0-7798
FIRST WILKOW VENTURE, A LIMITED PARTNERSHIP
(Exact Name of Registrant as Specified in Its Charter)
Illinois 36-6169280
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(State of Organization) (IRS Employer Identification No.)
180 North Michigan Avenue, Chicago, Illinois 60601
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(Address of Principal Executive Offices)
Registrant's Telephone Number, including area code: (312) 726-9622
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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
------ -----
FIRST WILKOW VENTURE
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
JUNE 30, 2003
1 - Financial Statements
The financial statements have been prepared in accordance with U.S.
generally accepted accounting principles. Under this method of accounting,
revenues are recorded when earned and expenses are recorded when incurred.
No provision for federal income taxes has been made since First Wilkow
Venture (the "Registrant") is a partnership and the partners report their
pro rata share of income or loss individually.
Reference is made to the Registrant's annual report for the year ended
December 31, 2002, for a description of other accounting principles and
additional details for the Registrant's financial condition, results of
operations, changes in partners' capital and statement of cash flows for
the year then ended. The details provided in the notes thereto have not
changed as a result of normal transactions in the interim.
2 - Subsequent Events
On July 10, 2003, the Registrant made a distribution to its partners in
the amount of $188,007.60, or $1.10 per unit, based on 170,916 units
outstanding at June 30, 2003.
On July 8, 2003, a property owned by M & J/Retail Limited Partnership,
Evergreen Commons, was sold for $660,000, resulting in net cash proceeds
of $276,997 after satisfaction of the outstanding mortgage obligation. The
transaction netted a gain on sale of $120,365.
FIRST WILKOW VENTURE
FORM 10-Q
MANAGEMENT DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
JUNE 30, 2003
Overview
Reference is made to the Registrant's annual report for the year ended
December 31, 2002, for a discussion of the Registrant's business.
On January 10, 2003, the Registrant made a distribution to its partners
in the amount of $188,008, or $1.10 per unit.
In March of 2003, the Registrant received a payment of $123,638 on the
indebtedness from M&J/Dover Limited Partnership.
On April 10, 2003, the Registrant made a distribution to its partners
in the amount of $188,008, or $1.10 per unit.
On May 28, 2003, the Registrant invested $250,000 to obtain a 11.26%
interest in M & J/Louisville LLC which has a 33.33% interest in NW Acquisition
Company LLC which has a 90% interest in CMJ/NCT Louisville, LLC which has a 50%
interest in NCT Louisville LLC which owns National City Tower, an office
building located in Louisville, Kentucky.
In May of 2003, the Registrant received a payment of $1,373,038,
including $641,914 of accrued interest, to satisfy the indebtedness from The
Villas at Monterey Limited Partnership and Tango Bay of Orlando L.C.
FIRST WILKOW VENTURE
(A LIMITED PARTNERSHIP)
CONSOLIDATED BALANCE SHEET
June 30,
2003 December 31,
(Unaudited) 2002
---------------- ---------------
ASSETS
------
REAL ESTATE AND INVESTMENTS IN REAL ESTATE PARTNERSHIPS
- -------------------------------------------------------
Real Estate:
Land $ 4,100,376 $ 4,100,376
Buildings and Improvements 31,711,390 31,458,038
Fixtures and Equipment 41,670 41,670
---------------- ---------------
Total 35,853,436 35,600,084
Less-Accumulated Depreciation 13,571,010 13,070,307
---------------- ---------------
Net Real Estate 22,282,426 22,529,777
Investments in Real Estate Partnerships 7,163,728 7,181,237
---------------- ---------------
Total 29,446,154 29,711,014
---------------- ---------------
LOANS RECEIVABLE 86,963 941,725
- ---------------- ---------------- ---------------
OTHER ASSETS
- ------------
Cash and Cash Equivalents 5,948,854 4,562,781
Certificates of Deposit - Restricted 250,000 250,000
Receivable 669,611 1,238,092
Deposits 1,053,804 832,105
Deferred Charges 1,156,638 1,155,828
---------------- ---------------
Total 9,078,907 8,038,806
---------------- ---------------
TOTAL ASSETS $38,612,024 $38,691,545
------------ ================ ===============
LIABILITIES AND PARTNERS' CAPITAL
---------------------------------
MORTGAGES PAYABLE $20,867,463 $20,870,507
- ----------------- ---------------- ---------------
OTHER LIABILITIES
- -----------------
Accounts Payable and Accrued Expenses 345,327 191,688
Accrued Property Taxes 1,323,158 1,329,662
Deferred State Income Taxes 170,000 170,000
Security Deposits and Prepaid Rent 537,653 584,447
---------------- ---------------
Total 2,376,138 2,275,797
---------------- ---------------
MINORITY INTEREST 2,569,428 2,578,193
- ----------------- ---------------- ---------------
PARTNERS' CAPITAL (170,916 units authorized and issued) 12,798,995 12,967,048
- ----------------- ---------------- ---------------
TOTAL LIABILITIES AND PARTNERS' CAPITAL $38,612,024 $38,691,545
======================================= ================ ===============
Note: Balance Sheet at 12/31/02 taken from the audited financial statements at
that date.
See accompanying notes to consolidated financial statements
FIRST WILKOW VENTURE
CONSOLIDATED STATEMENT OF OPERATIONS
THREE AND SIX MONTHS ENDED JUNE 30, 2003 AND 2002
(UNAUDITED)
Three Months Six Months
Ended June 30, Ended June 30,
-------------------------- --------------------------
2003 2002 2003 2002
----------- ----------- ----------- -----------
REVENUES
- --------
Rental Income $ 2,124,798 $ 1,993,195 $ 4,130,690 $ 4,159,232
Interest Income 16,887 39,544 47,279 86,343
Gain (Loss) on disposal of real estate and other revenue 1,027 3,761 10,433 10,366
----------- ----------- ----------- -----------
2,142,712 2,036,500 4,188,402 4,255,941
----------- ----------- ----------- -----------
PARTNERSHIP INVESTMENTS' INCOME
- -------------------------------
Share of Net Income 72,373 50,674 175,563 178,517
----------- ----------- ----------- -----------
EXPENSES
- --------
Operating Expenses 960,178 1,062,273 1,980,100 2,009,953
Real Estate Taxes 333,238 328,204 574,415 626,324
Depreciation and Amortization 303,314 314,202 630,989 628,241
Interest Expense 410,387 416,612 822,083 826,296
General and Administrative 38,833 23,188 70,397 50,653
----------- ----------- ----------- -----------
2,045,950 2,144,479 4,077,984 4,141,467
----------- ----------- ----------- -----------
INCOME (LOSS) BEFORE MINORITY INTEREST 169,135 (57,305) 285,981 292,991
- ---------------------------------------
MINORITY INTEREST IN
- --------------------
SUBSIDIARIES' NET INCOME (LOSS) (34,422) 47,018 (78,017) 4,355
------------------------------- ----------- ----------- ----------- -----------
NET INCOME (LOSS) $ 134,713 ($ 10,287) $ 207,964 $ 297,346
- ----------------- =========== =========== =========== ===========
UNITS USED TO COMPUTE PER UNIT AMOUNTS 170,916 170,916 170,916 170,916
NET INCOME (LOSS) PER UNIT $ 0.79 ($ 0.06) $ 1.22 $ 1.74
=========== =========== =========== ===========
DISTRIBUTION PER UNIT $ 1.10 $ 3.10 $ 2.20 $ 4.10
=========== =========== =========== ===========
See accompanying notes to consolidated financial statements
FIRST WILKOW VENTURE
CONSOLIDATED STATEMENT OF CASH FLOWS
SIX MONTHS ENDED JUNE 30, 2003 AND 2002
(UNAUDITED)
Six Months Ended March 31,
--------------------------
2003 2002
----------- -----------
CASH FLOWS FROM OPERATING ACTIVITIES
- ------------------------------------
Net Income $ 207,965 $ 297,346
Noncash Items Included in Net Income:
Depreciation and Amortization 630,989 628,241
Decrease In Accounts Payable and Accrued Expenses 447,120 (136,847)
Share of Partnership's Net Income (175,563) (178,517)
----------- -----------
Net Cash Provided by Operating Activities 1,110,511 610,223
----------- -----------
CASH FLOWS FROM INVESTING ACTIVITIES
- ------------------------------------
Partnership Investment Draws 443,072 1,040,610
Collection of Loan Receivable 854,762 0
Investment in Partnerships (250,000) (3,094)
Investment in Land and Buildings (253,352) (159,527)
Increase (Decrease) in Minority Interest (8,765) (954,829)
Investment in Deferred Charges (131,096) (19,201)
----------- -----------
Net Cash Provided by Investing Activities 654,621 (96,041)
----------- -----------
CASH FLOWS FROM FINANCING ACTIVITIES
- ------------------------------------
Cash Distribution to Partners (376,015) (700,756)
Proceeds from Mortgage Financing 82,102
Mortgage Principal Payments (85,146) (117,819)
----------- -----------
Net Cash Used by Financing Activities (379,059) (818,575)
----------- -----------
NET INCREASE IN CASH AND CASH EQUIVALENTS 1,386,073 (304,393)
CASH AND CASH EQUIVALENTS - BEGINNING OF PERIOD 4,562,781 5,990,392
- ----------------------------------------------- ----------- -----------
CASH AND CASH EQUIVALENTS - END OF PERIOD $ 5,948,854 $ 5,685,999
- ----------------------------------------- =========== ===========
See accompanying notes to consolidated financial statements
REMARKS
In the opinion of the General Partners, the financial information of this
report includes all adjustments, including estimated provisions for items
normally settled at year end, and is a fair statement of the results for the
interim ended June 30, 2003 and 2002.
SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) 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.
FIRST WILKOW VENTURE
By: Mark R. Wilkow
--------------------------------
Marc R. Wilkow, General Partner
and President of M&J Wilkow,
Ltd., its Managing Agent
DATED: August 9, 2003
Pursuant to the requirements of the Securities Exchange Act of 1934, this
report has been signed below by the following persons on behalf of the
Registrant, in the capacities indicated, on August 9, 2003.
By: Clifton J. Wilkow
--------------------------------
Clifton J. Wilkow, General
Partner and Executive Vice
President of M&J Wilkow, Ltd.
By: Thomas Harrigan
--------------------------------
Thomas Harrigan, Senior Vice
President of M&J Wilkow, Ltd.