10-Q 1 mar10q201.txt FORM 10-Q 2ND QUARTER 2001 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: June 30, 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 - June 30, 2001, and December 31, 2000 3 B. Statements of Earnings - Comparative three months ended 4 June 30, 2001, and 2000 C. Statements of Earnings - Comparative six months ended 5 June 30, 2001, and 2000 D. Statements of Cash Flows- Comparative six months ended 6 June 30, 2001, and 2000 E. Note to Interim Financial Statements 7 Item 2. Management's Discussion and Analysis of Financial 8 Condition and Results of Operations Item 3. Quantitative and Qualitative Disclosures about Market Risk 10 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 10 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 June 30,2001, and December 31, 2000 Assets 2001 2000 (Unaudited) Cash and cash equivalents .................... $ 6,115,498 $ 7,719,350 Receivables from homesite sales .............. 1,029,224 1,056,586 Other receivables and assets ................. 1,795,955 1,333,457 Properties held for sale: Homes and homesites available for sale ........................... 4,628,350 4,284,320 Land and land improvements ........... 991,922 935,198 --------- --------- 5,620,272 5,219,518 --------- --------- Property and equipment: Marine and other, net ................ 2,469,394 2,588,625 Recreational facilities, net ......... 437,931 453,375 Commercial properties, net ........... 1,876,841 1,962,558 --------- --------- 4,784,166 5,004,323 --------- --------- Other investments: Marina I ............................. 3,080,593 3,428,350 Investments in and Advances to Flatfork Creek Utility .............. (141,882) (152,980) ------------ ------------ $ 22,283,826 $ 23,608,604 ============ ============ Liabilities and Partners' Equity Accounts payable ............................. $ 568,543 $ 705,514 Accrued bonuses .............................. 172,424 133,023 Deferred revenues and sale deposits .......... 767,908 252,547 --------- --------- Total Liabilities ............ 1,508,875 1,091,084 --------- --------- Partners' equity: General partner ...................... 7,958,620 8,624,873 Limited partners ..................... 12,816,331 13,892,647 ---------- ---------- Total partners' equity ....... 20,774,951 22,517,520 ---------- ---------- $ 22,283,826 $ 23,608,604 =========== =========== 3 B. THE MARINA LIMITED PARTNERSHIP Statements of Earnings Three Months Ended June 30, 2001, and 2000 (Unaudited) 2001 2000 Revenues: Homes and homesite sales ............... $ 376,245 $2,889,231 Marine operations ...................... 2,496,454 2,555,564 Equity in earnings of investee companies ............................. 770,989 459,782 Interest income ........................ 76,293 114,339 Rental income, net ..................... 40,569 69,093 Recreational facilities, net ........... 45,626 72,617 Gain on sale of commercial property .... 153,118 -- --------- ---------- 3,959,294 6,160,626 --------- --------- Costs and expenses: Cost of homes and homesites sold and related expenses .................. 299,617 1,985,545 Marine operations ...................... 1,687,010 1,841,513 General and administrative ............. 328,302 298,500 Management fees paid to general partner 41,749 41,205 --------- --------- 2,356,678 4,166,763 --------- --------- Net earnings ........ 1,602,616 1,993,863 Net earnings attributable to general partner ... 613,503 762,332 --------- --------- Net earnings attributable to limited partners .. $ 991,100 $1,231,531 ========== ========== Weighted average number of limited partner units outstanding .................................. 416,715 416,715 ========== ========== Net earnings per limited partner unit .......... $ 2.38 $ 2.96 ========== ========== 4 C. THE MARINA LIMITED PARTNERSHIP Statements of Earnings Six Months Ended June 30, 2001, and 2000 (Unaudited) 2001 2000 Revenues: Homes and homesite sales ................... $1,932,706 $3,262,231 Marine operations .......................... 2,804,886 2,787,878 Equity in earnings of investee companies ... 1,216,113 590,528 Interest income ............................ 199,289 271,943 Rental income, net ......................... 58,441 151,817 Recreational facilities, net ............... 34,599 35,038 Gain on sale of commercial property ........ 153,118 -- --------- ---------- 6,399,152 7,099,435 --------- ---------- Costs and expenses: Cost of homes and homesites sold and related expenses .......................... 1,639,802 2,239,824 Marine operations .......................... 2,130,981 2,239,089 General and administrative ................. 610,798 573,752 Management fees paid to general partner .... 49,471 47,269 --------- ---------- 4,431,052 5,099,934 --------- --------- Net earnings ............ 1,968,100 1,999,501 Net earnings attributable to general partner ....... 752,483 764,488 --------- --------- Net earnings attributable to limited partners ...... $1,215,617 $1,235,013 ========== ========== Weighted average number of limited partner units outstanding ....................................... 416,715 416,715 ========== ========== Net earnings per limited partner unit .............. $ 2.92 $ 2.96 ========== ========== 5 D. THE MARINA LIMITED PARTNERSHIP Statements of Cash Flows Six Months Ended June 30, 2001, and 2000 (Unaudited)

6 E. THE MARINA LIMITED PARTNERSHIP Note to Interim Financial Statements Three and Six Months Ended June 30, 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 June 30, 2001, and for the three and six months ended June 30, 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. 7 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 June 30, 2001 and 2000 is as follows (in thousands):

8 ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS FOR THE THREE AND SIX MONTH PERIODS ENDED JUNE 30, 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 and six month periods ended June 30, 2001 and 2000, the Partnership sold homesites as follows: Three Months Six Months 2001 2000 2001 2000 Bridgewater 0 1 0 2 Canal Place 2 0 3 0 Morse Overlook 1 1 2 4 -- -- -- -- 3 2 5 6 == == == == The Partnership is the general partner of Marina I LP ("Marina I"), which also develops homesites. During the three and six month periods ended June 30, 2001 and 2000, Marina I sold homesites as follows: For The Period Ended June 30 2001 2000 Three Months 11 14 == == Six Months 27 21 == == 9 Results of Operations Six Months ended June 30, 2001 Compared to 2000. Net earnings decreased by $31,000 in 2001 from 2000. This was primarily the result of increased equity earnings from Marina I of $601,000 offset by a decrease in earnings from homes and homesite sales of $730,000 by the Partnership. A decrease of $93,000 was experienced between 2001 and 2000 from leasing operations and an increase in gain on sale of investment property in 2001 from 2000 of $153,000. The increase in earnings from homes and homesite sales by Marina I is due to an increase in revenues from homesite sales resulting in the Partnerships share in earnings increasing to $1,205,000 in 2001 from $604,000 in 2000. The increase in earnings from marine operations is primarily a result of the return to normal water levels in the early season. This is offset by a reduction in earnings from boat sales of $50,000 in 2001 as compared to 2000. As of June 30, 2001, the Partnership had $590,000 of unamortized advance dock rentals toward the 2001 boating season. This is compared to $506,000 as of June 30, 2000. Such rental payments are deferred when received and recognized as earned during the April to September boating season. Other receivables and assets were higher on June 30, 2001 compared to December 31, 2000 due to seasonal increase in inventory of new and used boats. 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. Three Months ended June 30, 2001 Compared to 2000 Net earnings decreased by $391,000 in 2001 from 2000. This was primarily the result of decreased earnings from homes and homesite sales of $827,000 by the Partnership. The decrease was offset by an increase in earnings from marine operations of $95,000, an increase in equity earnings of $299,000 from Marina I and an increase in gain on sale of investment property in 2001 from 2000 of $153,000. The Partnership recognized $757,000 as its share of the earnings from Marina I in 2001, compared to $458,000 in 2000. Factors leading to these changes in earnings during the second quarter of 2001 compared to 2000 are substantially as discussed related to the six months ended June 30, 2001. 10 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. 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: August 14, 2001 11

MARINA LIMITED PARTNERSHIP 10-Q