10-Q 1 g65242e10-q.txt SOUTHEAST ACQUISITIONS I, L.P. 1 SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 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 SEPTEMBER 30, 2000. [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (D) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM JULY 1, 2000 TO SEPTEMBER 30, 2000. Commission File number: 0-16835 (formerly 33-12125-A) SOUTHEAST ACQUISITIONS I, L.P. -------------------------------------------------------------------------------- (Exact name of registrant) Delaware 23-2454443 -------- ---------- (State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification No.) 3011 Armory Drive, Suite 310 Nashville, Tennessee 37204 (Address of Principal Executive Offices) Issuer's Telephone Number: 615-834-0872 ------------ 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 [ ] 2 PART I - FINANCIAL INFORMATION Item 1 - Financial Statements The unaudited financial statements of Southeast Acquisitions I, L.P. (the "Partnership") at September 30, 2000 are attached hereto as Exhibit A. Item 2 - Management's Discussion and Analysis of Financial Condition and Results of Operations. Background The Partnership was formed to acquire, own and realize appreciation in a certain 202.72 acre parcel of undeveloped land near Columbia, South Carolina (the "Property") by holding it for investment and eventual sale. However, there can be no assurance that the Partnership's objectives will be realized. At September 30, 2000, the remaining land consisted of approximately 185 acres of South Carolina land. The Partnership is scheduled to terminate on December 31, 2000. There are currently no plans to extend the Partnership agreement. If there is land remaining at December 31, 2000, the current General Partner will continue to run operations through the liquidation mode. Results of Operations for Third Quarter of 2000 Compared with Third Quarter of 1999 The Partnership activities for the third quarter of 2000 and the third quarter of 1999 were focused on the sale of Partnership property. During the third quarter of 2000, as in 1999, there were no sales. The only income during the third quarter of 2000 consisted of interest income of $218 as compared with $420 in the third quarter of 1999. The decrease in interest income was primarily due to a lower cash reserve which has resulted from no sales activity and the use of cash to pay operating expenses. Expenses in the third quarter of 2000 included general and administrative expenses of $4,192 versus $3,890 in the third quarter of 1999. The increase was primarily due to an increase in legal fees. In addition, the Partnership had $2025 of management fees in the third quarter of 2000, which was the same amount incurred in the third quarter of 1999. Other expenses in the third quarter of 2000 were real estate taxes of $70 and insurance costs of $167, which were comparable to the same expenses in the third quarter of 1999. Inflation did not have any material impact on operations during the third quarter of 2000, and it is not expected to materially impact future operations. There were no sales nor any meaningful offers received on the property during 1999. Therefore, the Partnership has terminated its agreement with the realtor, Walter Taylor & Company, Inc. The Partnership has since entered into an agreement with Colliers Keenan of Columbia, South Carolina. 3 Liquidity and Capital Resources The Partnership has cash reserves of $33,156 at September 30, 2000, which will be used to cover the following estimated costs: management fees of $2,025, accounting fees of $10,000, legal fees of $2,500, insurance premiums of $167, taxes of $281, and other administrative costs of $2,000. In the General Partner's opinion, the Partnership's reserves will be sufficient for the remaining three months. However, if additional expenses are incurred, the reserves may be inadequate to cover the Partnership's operating expenses. If the reserves are exhausted, the Partnership may have to dispose of some of the Property or incur indebtedness on unfavorable terms. PART II - OTHER INFORMATION Item 1 - Legal Proceedings None Item 2 - Changes in Securities There were no changes in the Partnership's securities during the third quarter of fiscal year 2000. Item 3 - Defaults Upon Senior Securities There was no default in the payment of principal, interest, a sinking or purchase fund installment or any other default with respect to any indebtedness of the Partnership. The Partnership has issued no preferred stock; accordingly, there have been no arrearages or delinquencies with respect to any such preferred stock. Item 4 - Submission of Matters to a Vote of Security Holders No matters were submitted to the Partners for a vote during the third quarter of 2000. 4 Item 5 - Other Information None Item 6 - Exhibits and Reports on Form 8-K Reports on Form 8-K None Exhibits (numbered in accordance with Item 601 of Regulation S-K) Exhibit Numbers Description --------------- ----------- 27 Financial Data Schedule (for SEC use only) 5 SIGNATURE 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 and in the capacities and on the date indicated. Signature Title Date /s/ Richard W. Sorenson ------------------------------ Member, November 9, 2000 Richard W. Sorenson Southern Management ---------------- Group, LLC 6 EXHIBIT A SOUTHEAST ACQUISITIONS I, LP BALANCE SHEETS

See notes to financial statements. 7 EXHIBIT A SOUTHEAST ACQUISITIONS I, LP STATEMENTS OF OPERATIONS AND PARTNERS' EQUITY (UNAUDITED)

See notes to financial statements. 8 EXHIBIT A SOUTHEAST ACQUISITIONS I, LP STATEMENTS OF CASH FLOWS (UNAUDITED)

See notes to financial statements. 9 SOUTHEAST ACQUISITIONS I, LP (A Limited Partnership) NOTES TO FINANCIAL STATEMENTS For the Nine Months Ended September 30, 2000 (Unaudited) A. ACCOUNTING POLICIES The unaudited financial statements presented herein have been prepared in accordance with the instructions to Form 10-Q and do not include all of the information and note disclosures required by generally accepted accounting principles. These statements should be read in conjunction with the financial statements and notes thereto included in the Partnership's Form 10-K for the year ended December 31, 1999. In the opinion of management, such financial statements include all adjustments, consisting only of normal recurring adjustments, necessary to summarize fairly the Partnership's financial position and results of operations. The results of operations for the nine-month period ended September 30, 2000 may not be indicative of the results that may be expected for the year ending December 31, 2000. B. RELATED PARTY TRANSACTIONS The General Partner and its affiliates have been actively involved in managing the Partnership's operations. Compensation earned for these services in the first nine months were as follows:

SOUTHEAST ACQUISITIONS I L P 10-Q