10-Q 1 tenq.txt FORM 10-Q FOR COMMUNITY INVESTMENT PARTNERS II 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 JUNE 30, 2001 Commission file number 0-20213 COMMUNITY INVESTMENT PARTNERS II, L.P. ----------------------------------------------------------------------------- (Exact name of registrant as specified in its charter) MISSOURI 43-1609351 ----------------------------------------------------------------------------- (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 II, L.P. 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..........................................13 Item 6. Exhibits and Reports on Form 8-K...........................13 Signatures.................................................14 2 Part I. FINANCIAL INFORMATION Item 1. Financial Statements COMMUNITY INVESTMENT PARTNERS II, L.P. SCHEDULE OF PORTFOLIO INVESTMENTS AS OF JUNE 30, 2001 (UNAUDITED)

5 Part I. FINANCIAL INFORMATION Item 1. Financial Statements COMMUNITY INVESTMENT PARTNERS II, L.P. STATEMENT OF FINANCIAL CONDITION

6 Part I. FINANCIAL INFORMATION Item 1. Financial Statements COMMUNITY INVESTMENT PARTNERS II, L.P. STATEMENT OF INCOME (UNAUDITED)

7 Part I. FINANCIAL INFORMATION Item 1. Financial Statements COMMUNITY INVESTMENT PARTNERS II, L.P. STATEMENT OF CASH FLOWS (UNAUDITED)

8 Part I. FINANCIAL INFORMATION Item 1. Financial Statements COMMUNITY INVESTMENT PARTNERS II, L.P. STATEMENT OF CHANGES IN PARTNERSHIP CAPITAL (UNAUDITED)

9 Part I. FINANCIAL INFORMATION Item 1. Financial Statements COMMUNITY INVESTMENT PARTNERS II, L.P. NOTES TO FINANCIAL STATEMENTS (UNAUDITED) BASIS OF PRESENTATION Community Investment Partners II, L.P. (CIP II) is a limited partnership 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 II. Management is responsible for making all decisions regarding CIP II's investment portfolio. CIP II is no longer making initial investments, but may increase existing holdings. All portfolio investments are carried at cost until significant developments affecting an investment provide a basis for revaluation. Thereafter, portfolio investments are 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 are valued at the latest reported sales price on the last business day of the period. If no sale has taken place, the securities are valued at the last bid price. If no bid price has been reported, or if no exchange quotation is available, the securities are 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. The General Partners of CIP II have amended, and Management has agreed to amend, the Management Agreement for CIP II to clarify the right of Management to waive all or any portion of the management fee from time to time without any reduction in the level of services. The financial information included herein is unaduited. However, in the opinion of management, such information includes all adjustments, consisting solely of normal recurring accruals, which are necessary for a fair presentation of the results of interim operations. The results of operations for the six months ended June 30, 2001 and June 30, 2000 are not necessarily indicative of the results to be expected for the full year. 10 Part I. FINANCIAL INFORMATION Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations COMMUNITY INVESTMENT PARTNERS II, L.P. MANAGEMENT'S FINANCIAL DISCUSSION RESULTS OF OPERATIONS QUARTER AND SIX MONTHS ENDED JUNE 30, 2001 VERSUS QUARTER AND SIX MONTHS ENDED JUNE 30, 2000 Net income for the three months ended June 30, 2001 was $9,877, compared to net loss of $349,180 for the three months ended June 30, 2000. Net loss for the six months ended June 30, 2001 was $175, compared to net loss of $452,363 for the six months ended June 30, 2000. Total revenue for the three months ended June 30, 2001 were $4,656, compared to $1,969 for the three months ended June 30, 2000. Total revenues for the six months ended June 30, 2001 were $9,313, compared to $3,928 for the six months ended June 30, 2000. Revenues consisted of dividend and interest income from investments. There were no realized gains or losses from the sale of investments for the three months ended June 30, 2001, compared to realized gains from the sale of investments of $1,461 for the three months ended June 30, 2000. Unrealized gains on investments for the three months ended June 30, 2001 were $13,540, compared to unrealized losses on investments of $342,274 for the three months ended June 30, 2000. The unrealized losses on investments for the three months ended June 30, 2000 were due to a decrease in market value of Computer Motion, Inc. and On-line Resources & Communications Corporation. Realized losses from the sale of investments for the six months ended June 30, 2001 were $3,024, compared to realized gains from sale of investments of $1,461 for the six months ended June 30, 2000. Unrealized gains on investments for the six months ended June 30, 2001 were $7,160, compared to unrealized losses on investments of $442,906 for the six months ended June 30, 2000. The unrealized losses on investments for the three months ended June 30, 2000 were due to a decrease in market value of Computer Motion, Inc. and On-line Resources & Communications Corporation of 25% and 61%, respectively. Expenses for the three months ended June 30, 2001 were $8,319, a 20% decrease from expenses for the three months ended June 30, 2000 of $10,336. The decrease is a result of a decrease in legal expenses. Expenses for the six months ended June 30, 2001 were $13,624 an 8% decrease compared to expenses for the six months ended June 30, 2000 of $14,856. 11 Part I. FINANCIAL INFORMATION Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations INVESTMENT TRANSACTIONS Following is a summary of portfolio investment transactions during the six months ended June 30, 2001.

LIQUIDITY AND CAPITAL RESOURCES The Partnership's total capital of $1,327,143 as of June 30, 2001, consisted of $1,313,753 in limited partner capital and $13,390 in general partner capital. Net loss was allocated to the limited partners in the amount of $173 and to the general partners in the amount of $2. At June 30, 2001, the Partnership had $15,917 in cash and cash equivalents. 12 Part II. OTHER INFORMATION COMMUNITY INVESTMENT PARTNERS II, L.P. 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 June 30, 2001. 13 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 II, L.P. By: CIP Management, L.P., LLLP, Managing General Partner By: CIP Management, Inc., its Managing General Partner /s/ Daniel A. Burkhardt President, Treasurer and Director August 10, 2001 -------------------- Daniel A. Burkhardt /s/ Ray L. Robbins, Jr. Vice-President and Director August 10, 2001 -------------------- Ray L. Robbins, Jr. 14

COMMUNITY INVESTMENT PARTNERS II LP 10-Q