10-Q 1 mar10q301.txt FORM 10-Q 3/31/01 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 Quarter Ended: March 31, 2001 Commission File Number: 0-13174 ---------------------------------- -------------------------------- THE MARINA LIMITED PARTNERSHIP (Exact name of registrant as specified in its charter) Indiana 35-1689935 ----------------------------------- ---------------------------------- (State or other jurisdiction of (I.R.S. Employer Identification incorporation or organization) Number) 11691 Fall Creek Road, Indianapolis, IN 46256 --------------------------------------- ------------------------------ (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code: (317) 845-0270 -------------- 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 THE MARINA LIMITED PARTNERSHIP FORM 10-Q Table of Contents PART I. FINANCIAL INFORMATION Page No. ------------------------------ -------- Item 1. Financial Statements (unaudited) A. Balance Sheets - March 31, 2001, and December 31, 2000. 3 B. Statements of Earnings - Comparative three months ended March 31, 2001, and 2000. 4 C. Statements of Cash Flows - Comparative three months ended March 31, 2001, and 2000. 5 D. Note to Interim Financial Statements 6 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 7 Item 3. Quantitative and Qualitative Disclosures about Market Risk 8 PART II. OTHER INFORMATION --------------------------- (The items of Part II are inapplicable or the answers thereto are negative and, accordingly, no reference is made to said items in this report.) Signature 9 2 PART I - FINANCIAL INFORMATION THE MARINA LIMITED PARTNERSHIP ITEM 1. FINANCIAL STATEMENTS (UNAUDITED) The financial information incorporated in this form reflects all adjustments which are, in the opinion of management, necessary to a fair statement of the results for the interim period. A. THE MARINA LIMITED PARTNERSHIP Balance Sheets March 31, 2001, and December 31, 2000 (Unaudited) Assets 2001 2000 ------ ---- ---- Cash and cash equivalents ...................... $ 7,464,648 $ 7,719,350 Receivables from homesite sales ................ 1,187,722 1,056,586 Other receivables and assets ................... 2,142,386 1,333,457 Properties held for sale: Homes and homesites available for sale . 4,325,633 4,284,320 Land and land improvements ............. 959,816 935,198 ------------ ------------ 5,284,449 5,219,518 ------------ ------------ Property and equipment: Marine and other, net .................. 2,538,157 2,588,625 Recreational facilities, net ........... 445,653 453,375 Commercial properties, net ............. 1,919,699 1,962,558 --------- --------- 4,903,509 5,004,323 --------- --------- Other investments: Marina I ............................... 3,876,595 3,428,350 Investments in and Advances to Flatfork Creek Utility ................ (156,102) (152,980) ------------ ------------ $ 24,703,207 $ 23,608,604 ============ ============ Liabilities and Partners' Equity Accounts payable ............................... 669,470 705,514 Accrued bonuses ................................ 134,532 133,023 Deferred revenues and sale deposits ............ 1,016,200 252,547 ----------- ----------- Total Liabilities ...... 1,820,202 1,091,084 ----------- ----------- Partners' equity: General partner ........................ 8,764,612 8,624,873 Limited partners ....................... 14,118,393 13,892,647 ------------ ----------- Total partners' equity 22,883,005 22,517,520 ------------ ------------ $ 24,703,207 $ 23,608,604 ============ ============ 3 B. THE MARINA LIMITED PARTNERSHIP Statements of Earnings Three Months Ended March 31, 2001, and 2000 (Unaudited)

4 C. THE MARINA LIMITED PARTNERSHIP Statements of Cash Flows Three Months Ended March 31, 2001, and 2000 (Unaudited)

5 D. THE MARINA LIMITED PARTNERSHIP Note to Interim Financial Statements Three Months Ended March 31, 2001 and 2000 (Unaudited) Note (1) Basis of Presentation A summary of significant accounting policies used by The Marina Limited Partnership is set forth in Note 1 of Notes to Financial Statements included in the December 31, 2000 Annual Report Form 10-K. The interim financial statements have been prepared in accordance with instructions to Form 10-Q, and therefore, do not include all information and footnotes necessary for a fair presentation of financial position, results of operations and cash flows in conformity with generally accepted accounting principles. The interim financial statements at March 31, 2001, and for the three months ended March 31, 2001 and 2000, have not been audited by independent accountants, but reflect, in the opinion of management, all adjustments (which include only normal recurring adjustments) necessary to present fairly the financial position, results of operations and cash flows for such periods. Certain balances in 2000 have been reclassified to conform to 2001 classifications. Note (2) Segment Information The Partnership is engaged in two primary business segments, the development and sale of homes and homesites and marine operations at Geist and Morse Lakes. Summarized financial information by business segment for the periods ended March 31, 2001 and 2000 is as follows (in thousands): 2001 2000 ---- ---- Revenues: Homes and homesites $ 1,530 373 Equity in earnings of investee company 445 131 ----- ----- 1,975 504 Marine operations 308 232 Other 159 204 ----- ----- $ 2,442 940 ======= ====== Operating income: Homes and homesites sales, including equity in earnings of investee company $ 635 250 Marine operations (135) (166) Other 159 204 Administration (293) (282) ------ ------ $ 366 6 ======= ===== Assets: Homes and homesites sales, including investment in investee company $10,440 8,858 Marine operations 4,551 4,435 Cash 7,465 7,500 Other 2,247 2,791 ------ ----- $24,703 23,584 ======= ====== 6 ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS FOR THE THREE MONTH PERIOD ENDED March 31, 2001 AND 2000. The following discussion and analysis is intended to address the significant factors affecting the Partnership's results of operations and financial condition. It is designed to provide a more comprehensive review of the operating results and financial position than could be obtained from an analysis of the financial statements alone. It should, however, be read in conjunction with the financial statements included elsewhere herein. Homesite Sales During the three month periods ended March 31, 2001 and 2000, the Partnership sold homesites as follows: Morse Bridgewater Canal Place Overlook Total 2001 0 1 1 2 ---- 2000 1 0 1 2 ---- The Partnership is the general partner of Marina I LP ("Marina I"), which also develops homesites. During the three months ended March 31, 2001, and 2000, Marina I sold homesites as follows: For The Periods Ended March 31 2001 16 --- 2000 7 ---- --- 7 Results of Operations Three Months ended March 31 2001 Compared to 2000. ------------------------- Net earnings increased in 2001 from 2000 primarily as a result of increased equity earnings from Marina I of $302,000 and an increase in home and homesite earnings of $71,000. Earnings from home and homesite sales were $190,000 in 2001, which compares to $119,000 in 2000, primarily as a result of the closing of more home sales in 2001 as compared to 2000. The Partnership recognized $448,000 as its share of the earnings from Marina I in 2001, compared to $146,000 in 2000, resulting from homesite sales of $1,431,000 in 2001 as compared to $467,000 in 2000. Other receivables and assets are higher on March 31, 2001 compared to December 31, 2000 due to the seasonal increase in inventory of new boats. As of March 31, 2001, the Partnership collected $920,000 of advance dock rental toward the 2001 boating season. This is compared to $674,000 collected as of March 31, 2000. The rental payments are deferred when received and recognized as earned during the April through September boating season. On April 5, 2001, the Partnership made a cash distribution to the partners of record on March 23, 2001, of $5.50 per unit of partnership interest, for a total of $3,711,000. This compares to a cash distribution of $5.50 per partnership unit on April 5, 2000. ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK. Pursuant to Item 305(e) of Regulation S-K, the Partnership is not required to provide information in response to this Item 3. 8 SIGNATURE 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. THE MARINA LIMITED PARTNERSHIP ------------------------------ (Registrant) By: /s/ Donald J. Calabria --------------------------- Donald J. Calabria Vice President and Chief Financial Officer The Marina II Corporation General Partner of The Marina Limited Partnership DATE: May 15, 2001 9

MARINA LIMITED PARTNERSHIP 10-Q