10-Q 1 cip3.txt FORM 10-Q FOR COMMUNITY INVESTMENT PARTNERS III UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ---------------------- FORM 10-Q QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended MARCH 31, 2001 Commission file number 000-23037 COMMUNITY INVESTMENT PARTNERS III, L.P., LLLP ------------------------------------------------------------------------------- (Exact name of registrant as specified in its charter) MISSOURI 43-1790352 ------------------------------------------------------------------------------- (State or other jurisdiction of (IRS Employer incorporation or organization) Identification No.) 12555 Manchester Road St. Louis, Missouri 63131 ------------------------------------------------------------------------------- (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code (314) 515-2000 --------------------- 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 -- -- 1 COMMUNITY INVESTMENT PARTNERS III, L.P., LLLP INDEX Page Number Part I. FINANCIAL INFORMATION Item 1. Financial Statements Schedule of Portfolio Investments...............................3 Statement of Financial Condition................................6 Statement of Income.............................................7 Statement of Cash Flows ........................................8 Statement of Changes in Partnership Capital.....................9 Notes to Financial Statements .................................10 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations ..........................11 Part II. OTHER INFORMATION Item 1. Legal Proceedings..............................................12 Item 6. Exhibits and Reports on Form 8-K...............................12 Signatures.....................................................13 2 Part I. FINANCIAL INFORMATION Item 1. Financial Statements

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9 Part I. FINANCIAL INFORMATION Item 1. Financial Statements COMMUNITY INVESTMENT PARTNERS III, L.P., LLLP NOTES TO FINANCIAL STATEMENTS (UNAUDITED) BASIS OF PRESENTATION Community Investment Partners III, L.P., LLLP (CIP III) is a limited liability limited partnership, established July 23, 1997, which has elected to be a business development company under the Investment Company Act of 1940, as amended. As a business development company, the partnership is required to invest at least 70% of its total assets in qualifying investments as specified in the Investment Company Act. CIP Management, L.P., LLLP (Management), a limited liability limited partnership, is the Managing General Partner of CIP III. Management is responsible for making all decisions regarding CIP III's investment portfolio. All portfolio investments are carried at cost until significant developments affecting an investment provide a basis for revaluation. Thereafter, portfolio investments will be carried at fair value as obtained from outside sources or at a value determined quarterly by the Managing General Partner under the supervision of the Independent General Partners. Due to the inherent uncertainty of valuation, those estimated values for portfolio investments carried at cost may differ significantly from the values that would have been used had a ready market for the investment existed, and the differences could be material to the financial statements. Investments in securities traded on a national securities exchange will be valued at the latest reported sales price on the last business day of the period. If no sale has taken place, the securities will be valued at the last bid price. If no bid price has been reported, or if no exchange quotation is available, the securities will be valued at the quotation obtained from an outside broker. Investment transactions are recorded on a trade date basis. Income is recorded on an accrual basis. 10 Part I. FINANCIAL INFORMATION Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations COMMUNITY INVESTMENT PARTNERS III, L.P., LLLP MANAGEMENT'S FINANCIAL DISCUSSION RESULTS OF OPERATIONS Net loss for the quarter ended March 31, 2001 was $52,596, compared to a net income of $620,080 for the quarter ended March 31, 2000. The decrease was primarily a result of the realized gains from the sale of investments included in the quarter ended March 31, 2000. Interest income of $199 for the quarter ended March 31, 2001 decreased $9,509 (48%) from interest income of $9,708 for the quarter ended March 31, 2000. The decease is a result of funds no longer being held in a money market account during 2001. There were no sales of investments during the three months ended March 31, 2001. Net unrealized losses for the quarter ended March 31, 2001 was $40,449, which is a result of $82,713 unrealized loss on 28,769 shares of IWXX, netted against unrealized gains on 33,333 shares of AGIX of $37,334 and 1,833 shares of UTHR of $4,930. The future income or loss of the Partnership is contingent upon the performance of the portfolio investments and the ability to find suitable investment alternatives. Total expenses of $12,346 for the first quarter of 2001 decreased $4,253 (26%) from total expenses of $16,599 for the first quarter of 2000. Within total expenses, management fees decreased $4,875 (53%) due to a decrease in the value of total assets year over year. Professional fees increased $1,188 (32%) due to additional tax and professional filing fees. Other expenses decreased $566 (100%) due to no longer incurring banking fees related to the money market accounts. There were no distributions to unit holders during the first quarter of 2001. During the first quarter of 2000, a distribution in the amount of $1,372,225 was made which represented a return of initial capital contribution. LIQUIDITY AND CAPITAL RESOURCES As of March 31, 2001 the partnership's total capital of $1,112,967 consisted of $1,119,739 in limited partner capital and $(6,772) in general partner capital. Net loss for the current period was allocated to the limited partners in the amount of $47,336 and to the general partners in the amount of $5,260. At March 31, 2001 the Partnership had $59,762 in cash and cash equivalents. 11 Part II. OTHER INFORMATION COMMUNITY INVESTMENT PARTNERS III, L.P., LLLP Item 1: Legal Proceedings The partnership is not a party to any material pending legal proceedings. Item 6: Exhibits and Reports on Form 8-K (a) Exhibits None (b) Reports on Form 8-K No reports were filed on Form 8-K for the quarter ended March 31, 2001. 12 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. COMMUNITY INVESTMENT PARTNERS III, L.P., LLLP By: CIP Management, L.P., LLLP, its Managing General Partner By: CIP Management, Inc., its Managing General Partner /s/ Daniel A. Burkhardt ---------------------- President, Treasurer and Director May 14, 2001 Daniel A. Burkhardt /s/ Ray L. Robbins, Jr. ---------------------- Vice-President and Director May 14, 2001 Ray L. Robbins, Jr. 13

COMMUNITY INVESTMENT PARTNERS III LP LLP 10-Q