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 March 31, 2004
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: 0-17466
REALMARK PROPERTY INVESTORS LIMITED PARTNERSHIP - VI A
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(Exact name of registrant as specified in its charter)
Delaware 16-1309987
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(State of organization) (IRS Employer Identification No.)
2350 North Forest Road, Suite 12A,Getzville, New York 14068
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(Address of principal executive offices)
(716) 636-0280
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(Registrant's telephone number)
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 [ ]
Indicate by check mark whether the registrant is an accelerated filer (as
defined in Rule 12b-2 of the Exchange Act). Yes [ ] No [X]
Part I - FINANCIAL INFORMATION
Item 1. Financial Statements
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Condensed Consolidated Balance Sheets
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(Unaudited)
March 31, December 31,
2004 2003
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Assets
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Cash and equivalents $ 1,176,770 1,214,336
Other assets 5,000 66,520
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Total assets $ 1,181,770 1,280,856
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Liabilities and Partners' Equity
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Accounts payable and accrued expenses 59,861 78,669
Payable to affiliates 24,395 24,408
Equity in losses of unconsolidated joint venture
in excess of investment 70,665 85,952
Partners' equity 1,026,849 1,091,827
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Total liabilities and partners' equity $ 1,181,770 1,280,856
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Condensed Consolidated Statements of Operations
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(Unaudited)
Three months ended March 31,
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2004 2003
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Rental income $ - 547,706
Other income 4,097 73,409
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Total income 4,097 621,115
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Property operating costs 37,063 424,232
Administrative expense - affiliates 9,000 75,038
Other administrative expense 38,299 69,227
Interest - 190,493
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Total expenses 84,362 758,990
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Loss before equity in earnings of joint venture (80,265) (137,875)
Equity in earnings of joint venture 15,287 38,538
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Net loss $ (64,978) (99,337)
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Net loss per limited partnership unit $ (.40) (.61)
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Weighted average limited partnership units outstanding 157,378 157,378
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Condensed Consolidated Statements of Cash Flows
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(Unaudited)
Three month ended March 31
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2004 2003
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Cash provided (used) by:
Operating activities:
Net loss: $ (64,978) (99,337)
Adjustments - other, principally changes
in other assets and liabilities 27,412 (56,279)
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Net cash used by operating activities (37,566) (155,616)
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Investing activities:
Additions to property and equipment - (6,132)
Payments on note receivable - 1,355
Distributions from joint venture - 43,000
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Net cash provided by investing activities - 38,223
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Financing activities - principal payments on mortgage loans - (23,906)
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Net decrease in cash and equivalents (37,566) (141,299)
Cash and equivalents at beginning of period 1,214,336 260,089
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Cash and equivalents at end of period $ 1,176,770 118,790
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Notes to Consolidated Financial Statements
Three months ended March 31, 2004 and 2003
(Unaudited)
Organization
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Realmark Property Investors Limited Partnership - VI A (the Partnership), a
Delaware limited partnership, was formed on September 21, 1987, to invest in a
diversified portfolio of income-producing real estate investments. The general
partners are Realmark Properties, Inc. (the corporate general partner) and
Joseph M. Jayson (the individual general partner). Joseph M. Jayson is the sole
shareholder of J.M. Jayson & Company, Inc. Realmark Properties, Inc. is a
wholly-owned subsidiary of J.M. Jayson & Company, Inc. Under the partnership
agreement, the general partners and their affiliates can receive compensation
for services rendered and reimbursement for expenses incurred on behalf of the
Partnership.
Basis of Presentation
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The accompanying unaudited interim consolidated financial statements have been
prepared in accordance with accounting principles generally accepted in the
United States of America and the instructions to Form 10-Q. Accordingly, they do
not include all of the information and notes required by accounting principles
generally accepted in the United States of America for complete financial
statements. The balance sheet at December 31, 2003 has been derived from the
audited financial statements at that date. In the opinion of management, all
adjustments (consisting of normal recurring adjustments) considered necessary
for a fair presentation, have been included. The Partnership's significant
accounting policies are set forth in its December 31, 2003 Form 10-K. The
interim financial statements should be read in conjunction with the financial
statements included therein. The interim results should not be considered
indicative of the annual results.
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Property and Equipment
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At March 31, 2004, the Partnership had an interest in a joint venture, as
described below. The joint venture property is being actively marketed for sale
and, therefore, is not being depreciated. The Partnership sold its remaining
wholly-owned property in 2003. Depreciation expense not recorded for the three
month period ended March 31, 2003 was approximately $105,000.
Investments in Joint Ventures
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The Partnership has a 50% interest in Research Triangle Industrial Park Joint
Venture with Realmark Property Investors Limited Partnership - II (RPILP - II),
an entity affiliated through common general partners, owning the other 50%. The
Venture owns and operates the Research Triangle Industrial Park West, an
office/warehouse facility located in Durham County, North Carolina. Summary
financial information of the Venture follows:
Balance Sheet Information
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March 31, December 31,
2004 2003
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Net property, held for sale $ 1,697,152 1,684,255
Cash and equivalents 3,343 26,667
Escrow deposits 707,094 871,080
Other assets 253,450 245,242
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Total assets $ 2,661,039 2,827,244
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Liabilities:
Mortgage loan payable 5,034,084 5,060,888
Accounts payable and accrued expenses 113,762 288,337
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5,147,846 5,349,225
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Partners' deficit:
The Partnership (1,342,819) (1,360,406)
RPILP - II (1,143,988) (1,161,575)
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(2,486,807) (2,521,981)
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Total liabilities and partners' deficit $ 2,661,039 2,827,244
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Operating Information
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Three months ended March 31,
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2004 2003
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Rental income $ 199,500 199,500
Other 46,450 47,944
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Total income 245,950 247,444
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Property operating costs 90,830 42,096
Interest 105,234 106,293
Administrative 14,712 17,379
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Total expenses 210,776 165,768
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Net income $ 35,174 81,676
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Allocation of net income:
The Partnership 17,587 40,838
RPILP - II 17,587 40,838
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$ 35,174 81,676
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Current Accounting Pronouncements
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In January 2003, the Financial Accounting Standards Board (FASB) issued
Financial Interpretation (FIN) No. 46, "Consolidation of Variable Interest
Entities." In December 2003, the FASB reissued FIN No. 46R with certain
modifications and clarifications. This pronouncement became effective for the
Partnership on March 31, 2004 and did not have any effect on its consolidated
financial statements.
PART I - Item 2. Management's Discussion and Analysis of Financial Condition
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and Results of Operations
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Liquidity and Capital Resources
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Effective January 1, 2001, management began formally marketing all remaining
properties in the Partnership for sale. In 2002, the Partnership sold two of its
properties (Beaver Creek and Countrybrook). In 2003, the Partnership sold its
remaining three properties (Pomeroy Park, Inducon Columbia, and Stonegate
Townhouses). The sales proceeds enabled the Partnership to make a distribution
to the limited partners in the last quarter of 2003 in the amount of $2,500,000.
Assets consisted primarily of cash, which amounted to approximately $1,177,000,
at March 31, 2004. In accordance with the settlement of the lawsuit (Part II,
Item 1), it is anticipated that with the sale of the remaining joint venture,
the Partnership may be in a position to make distributions to the limited
partners.
Results of Operations
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As a result of the sale of its remaining wholly-owned properties, the
Partnership's rental operations ceased in 2003. Operations for the three months
ended March 31, 2004 consisted primarily of ownership of the joint venture
investment, administrative costs and professional fees.
PART I - Item 3. Quantitative and Qualitative Disclosures About Market Risk
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The Partnership invests in only short-term money market instruments, in amounts
in excess of daily working cash requirements. The rates of earnings on those
investments increase or decrease in line with general movement of interest
rates.
PART I - Item 4. Controls and Procedures
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Disclosure Controls and Procedures: The Partnership's management, with the
participation of the Partnership's Individual General Partner and Principal
Financial Officer, has evaluated the effectiveness of the Partnership's
disclosure controls and procedures (as such term is defined in Rule 13a-15(e)
under the Securities Exchange Act of 1934, as amended) as of the end of the
period covered by this report. Based on such evaluation, the Partnership's
Individual General Partner and Principal Financial Officer have concluded that,
as of the end of such period, the Partnership's disclosure controls and
procedures are effective.
Internal Control Over Financial Reporting: There have been no changes in the
Partnership's internal control over financial reporting (as defined in Rule
13a-15(f) under the Securities Exchange Act of 1934, as amended) during the
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fiscal quarter to which this report relates that have materially affected, or
are reasonably likely to materially affect, the Partnership's internal control
over financial reporting.
PART II - OTHER INFORMATION
Item 1. Legal Proceeding
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As previously reported, the Partnership, as a nominal defendant, the General
Partners of the Partnership and of affiliated public partnerships (the "Realmark
Partnerships") and the officers and directors of the Corporate General Partner,
as defendants, had been involved in a class action litigation in New York State
court. The Partnership's settlement of this litigation is described in its
Annual Report on Form 10-K for the year ended December 31, 2003.
Item 6. Exhibits and Reports on Form 8-K
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(a) Exhibits
31. Certification Pursuant to Rule 13a-14(a), as Adopted Pursuant to
Section 302 of the Sarbanes-Oxley Act of 2002.
32. Certification Pursuant to 18 U.S.C. Section 1350, as Adopted
Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
(b) Reports on Form 8-K
None.
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SIGNATURES
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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.
REALMARK PROPERTY INVESTORS LIMITED PARTNERHIP - VI A
May 17, 2004 /s/ Joseph M. Jayson
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Date Joseph M. Jayson,
Individual General Partner and
Principal Financial Officer
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