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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 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 June 30, 2002
Transition Report Pursuant to Section 13 or 15(d) of the
----- Securities Exchange Act of 1934
For the transition period from to .
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Commission File Number 0-7798
FIRST WILKOW VENTURE, A LIMITED PARTNERSHIP
(Exact Name of Registrant as Specified in Its Charter)
Illinois 36-6169280
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(State of Organization) (IRS Employer Identification No.)
180 North Michigan Avenue, Chicago, Illinois 60601
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(Address of Principal Executive Offices)
Registrant's Telephone Number, including area code: (312) 726-9622
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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
----- -----
FIRST WILKOW VENTURE
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
JUNE 30, 2002
1 - Financial Statements
--------------------
The consolidated financial statements have been prepared in accordance
with U.S. generally accepted accounting principles. Under this method of
accounting, revenues are recorded when earned and expenses are recorded
when incurred.
No provision for federal income taxes has been made since First Wilkow
Venture (the "Registrant") is a partnership and the partners report their
pro rata share of income or loss individually.
Reference is made to the Registrant's annual report for the year ended
December 31, 2001, for a description of other accounting principles and
additional details for the Registrant's financial condition, results of
operations, changes in partners' capital and statement of cash flows for
the year then ended. The details provided in the notes thereto have not
changed as a result of normal transactions in the interim.
2 - Subsequent Events
-----------------
On July 10, 2002, the Registrant made a distribution to its partners in
the amount of $188,007.00, or $1.10 per unit, based on 170,916 units
outstanding at June 30, 2002.
FIRST WILKOW VENTURE
FORM 10-Q
MANAGEMENT DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
JUNE 30, 2002
Overview
- --------
Reference is made to the Registrant's annual report for the year ended
December 31, 2001, for a discussion of the Registrant's business.
On January 10, 2002, the Registrant made a distribution to its partners
in the amount of $170,916.00, or $1.00 per unit.
On April 10, 2002, M&J/Retail Limited Partnership received a
liquidating distribution from Northlake Tower Limited Partnership in the amount
of $645,986, resulting in a loss on disposition of investment in partnership of
$104,014.
On April 10, 2002, the Registrant made a distribution to its partners
in the amount of $529,840.00, or $3.10 per unit.
FIRST WILKOW VENTURE
(A LIMITED PARTNERSHIP)
CONSOLIDATED BALANCE SHEET
June 30,
2002 December 31,
(Unaudited) 2001
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ASSETS
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REAL ESTATE AND INVESTMENTS IN REAL ESTATE PARTNERSHIPS
- -------------------------------------------------------
Real Estate:
Land $ 4,100,376 $ 4,100,376
Buildings and Improvements 31,173,963 31,014,435
Fixtures and Equipment 41,670 41,670
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Total 35,316,009 35,156,481
Less-Accumulated Depreciation 12,683,892 12,169,085
----------- -----------
Net Real Estate 22,632,117 22,987,396
Investments in Real Estate Partnerships 7,211,782 8,070,780
----------- -----------
Total 29,843,899 31,058,176
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LOANS RECEIVABLE 905,687 905,687
- ---------------- ----------- -----------
OTHER ASSETS
- ------------
Cash and Cash Equivalents 5,685,999 5,990,392
Short-term cash investments - Restricted 250,000 250,000
Receivable 829,485 863,205
Prepaid Expenses 0 6,306
Deposits 1,138,963 1,319,236
Deferred Charges 873,270 967,505
----------- -----------
Total 8,777,717 9,396,644
----------- -----------
TOTAL ASSETS $39,527,303 $41,360,507
=========== ===========
LIABILITIES AND PARTNERS' CAPITAL
MORTGAGES PAYABLE $20,979,777 $21,097,597
- ----------------- ----------- -----------
OTHER LIABILITIES
- -----------------
Accounts Payable and Accrued Expenses 153,722 126,811
Accrued Property Taxes 1,291,543 1,290,215
Deferred State Income Taxes 176,000 176,000
Security Deposits and Prepaid Rent 462,964 848,348
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Total 2,084,229 2,441,374
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MINORITY INTEREST 2,433,987 3,388,816
- ----------------- ----------- -----------
PARTNERS' CAPITAL (170,916 units authorized
- ----------------- and issued) 14,029,310 14,432,720
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TOTAL LIABILITIES AND PARTNERS' CAPITAL $39,527,303 $41,360,507
--------------------------------------- =========== ===========
Note: Balance Sheet at 12/31/01 taken from the audited financial
statements at that date.
See accompanying notes to consolidated financial statements
FIRST WILKOW VENTURE
CONSOLIDATED STATEMENT OF OPERATIONS
THREE AND SIX MONTHS ENDED JUNE 30, 2002 AND 2001
(UNAUDITED)
Three Months Six Months
Ended June 30, Ended June 30,
------------------------------ -----------------------------
2002 2001 2002 2001
---------- ---------- ---------- ----------
REVENUES
- --------
Rental Income $1,993,195 $2,501,220 $4,159,232 $4,951,031
Interest Income 39,544 90,507 86,343 183,096
Gain (Loss) on disposal of real estate and other revenue 3,761 20,933 10,366 40,420
---------- ---------- ---------- ----------
2,036,500 2,612,660 4,255,941 5,174,547
---------- ---------- ---------- ----------
PARTNERSHIP INVESTMENTS' INCOME
- -------------------------------
Share of Net Income 50,674 132,874 178,517 288,193
---------- ---------- ---------- ----------
EXPENSES
- --------
Operating Expenses 1,062,273 986,847 2,009,953 2,109,286
Real Estate Taxes 328,204 395,511 626,324 833,271
Depreciation and Amortization 314,202 406,548 628,241 815,582
Interest Expense 416,612 580,032 826,296 1,130,591
General and Administrative 23,188 29,164 50,653 71,637
---------- ---------- ---------- ----------
2,144,479 2,398,102 4,141,467 4,960,367
---------- ---------- ---------- ----------
INCOME (LOSS) BEFORE MINORITY INTEREST (57,305) 347,432 292,991 502,373
- ---------------------------------------
MINORITY INTEREST IN
- --------------------
SUBSIDIARIES' NET INCOME (LOSS) 47,018 (74,979) 4,355 (82,338)
------------------------------- ---------- ---------- ---------- ----------
NET INCOME (LOSS) ($10,287) $ 272,453 $ 297,346 $ 420,035
- ----------------- ========== ========== ========== ==========
UNITS USED TO COMPUTE PER UNIT AMOUNTS 170,916 170,916 170,916 170,916
NET INCOME (LOSS) PER UNIT ($0.06) $ 1.59 $ 1.74 $ 2.46
========== ========== ========== ==========
DISTRIBUTION PER UNIT $ 3.10 $ 4.00 $ 4.10 $ 4.75
========== ========== ========== ==========
See accompanying notes to consolidated financial statements
FIRST WILKOW VENTURE
CONSOLIDATED STATEMENT OF CASH FLOWS
SIX MONTHS ENDED JUNE 30, 2002 AND 2001
(UNAUDITED)
Six Months Ended June 30,
---------------------------
2002 2001
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CASH FLOWS FROM OPERATING ACTIVITIES
- ------------------------------------
Net Income $ 297,346 $ 420,035
Noncash Items Included in Net Income:
Depreciation and Amortization 628,241 815,582
Increase (Decrease) in Net Payable
and Accrued Expense (136,847) 88,588
Share of Partnership's Net Income (178,517) (288,193)
----------- -----------
Net Cash Provided by Operating Activities 610,223 1,036,012
----------- -----------
CASH FLOWS FROM INVESTING ACTIVITIES
- ------------------------------------
Partnership Investment Draws 1,040,610 366,661
Investment in Land and Buildings (159,527) (544,193)
Investment in Fixtures and Equipment 0 (43)
Investment in Partnerships (3,094) (951,000)
Decrease in Minority Interest (954,829) (1,184,962)
Investment in Deferred Charges (19,201) (185,042)
----------- -----------
Net Cash Provided (Used) by Investing Activities (96,041) (2,498,579)
----------- -----------
CASH FLOWS FROM FINANCING ACTIVITIES
- ------------------------------------
Increase in Mortgage and Notes Payable 0 19,175
Cash Distribution to Partners (700,756) (811,851)
Mortgage Principal Payments (117,819) (147,161)
----------- -----------
Net Cash Used by Financing Activities (818,575) (939,837)
----------- -----------
NET DECREASE IN CASH AND EQUIVALENTS (304,393) (2,402,404)
CASH AND EQUIVALENTS - BEGINNING OF PERIOD 5,990,392 6,193,003
- ------------------------------------------ ----------- -----------
CASH AND EQUIVALENTS - END OF PERIOD $ 5,685,999 $ 3,790,599
- ------------------------------------ =========== ===========
See accompanying notes to consolidated financial statements
REMARKS
-------
In the opinion of the General Partners the financial information of this
report includes all adjustments, including estimated provisions for items
normally settled at year end, and is a fair statement of the results for the
interim ended June 30, 2002 and 2001.
SIGNATURES
----------
Pursuant to the requirements of Section 13 or 15(d) 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.
FIRST WILKOW VENTURE
By: /s/ Marc R. Wilkow
--------------------------------------
Marc R. Wilkow, General Partner and
President of M&J Wilkow, Ltd., its
Managing Agent
DATED: August 10, 2002
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, in the capacities indicated, on August 10, 2002.
By: /s/ Clifton J. Wilkow
--------------------------------------
Clifton J. Wilkow, General Partner and
Executive Vice President of
M&J Wilkow, Ltd.
By: /s/ Thomas Harrigan
--------------------------------------
Thomas Harrigan, Senior Vice President
of M&J Wilkow, Ltd.