FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
(Mark One)
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 2002
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the transition period from ________ to ___________
Commission file number: 0-26869
WNC HOUSING TAX CREDIT FUND VI, L.P., Series 6
California 33-0761578
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
3158 Redhill Avenue, Suite 120
Costa Mesa, CA 92626
(Address of principal executive offices)
(714) 662-5565
(Telephone number)
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 No X
- ------ --------
WNC HOUSING TAX CREDIT FUND VI, L.P., SERIES 6
(A California Limited Partnership)
INDEX TO FORM 10-Q
For The Quarter Ended June 30, 2002
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
Balance Sheets,
June 30, 2002 and March 31, 2002 3
Statements of Operations
For the three months ended June 30, 2002 and 2001 4
Statement of Partners' Equity (Deficit)
For the three months ended June 30, 2002 5
Statements of Cash Flows
For the three months ended June 30, 2002 and 2001 6
Notes to Financial Statements 7
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of Operations 14
Item 3. Quantitative and Qualitative Disclosures about Market Risks 16
PART II. OTHER INFORMATION
Item 1. Legal Proceedings 16
Item 6. Exhibits and Reports on Form 8-K 16
Signatures 17
Certification Pursuant To 18 U.S.C. Section 1350 18
2
WNC HOUSING TAX CREDIT FUND VI, L.P., SERIES 6
(A California Limited Partnership)
BALANCE SHEETS
June 30, 2002 March 31, 2002
-------------------------- --------------------
(unaudited)
ASSETS
Cash and cash equivalents $ 774,689 $ 751,327
Investments in limited partnerships, net (Note 3) 14,307,151 14,585,268
Loan receivable (Note 2) - 50,000
Other assets 2,059 2,059
-------------------------- --------------------
$ 15,083,899 $ 15,388,654
========================== ====================
LIABILITIES AND PARTNERS' EQUITY (DEFICIT)
Liabilities:
Payables to limited partnerships (Note 5) $ 246,185 $ 246,185
Accrued fees and expenses due to
General Partner and affiliates (Note 4) 36,777 43,577
-------------------------- --------------------
Total liabilities 282,962 289,762
-------------------------- --------------------
Commitment and contingencies
Partners' equity (deficit):
General partner (56,469) (53,489)
Limited partners (25,000 units authorized,
20,500 units issued and outstanding) 14,857,406 15,152,381
-------------------------- --------------------
Total partners' equity 14,800,937 15,098,892
-------------------------- --------------------
$ 15,083,899 $ 15,388,654
========================== ====================
See accompanying notes to financial statements
3
WNC HOUSING TAX CREDIT FUND VI, L.P., SERIES 6
(A California Limited Partnership)
STATEMENTS OF OPERATIONS
For the Three Months Ended June 30, 2002 and 2001
(unaudited)
2002 2001
----------------------------- --------------------------
Three Three
Months Months
----------------------------- --------------------------
Interest income $ 3,679 $ 14,893
----------------------------- --------------------------
Operating expenses:
Amortization (Note 3) 12,887 12,887
Asset management fees (Note 4) 14,952 14,952
Legal and accounting fees 3,675 2,704
Other 4,890 20,415
----------------------------- --------------------------
Total operating expenses 36,404 50,958
----------------------------- --------------------------
Loss from operations (32,725) (36,065)
Equity in losses of
limited partnerships (Note 3) (265,230) (189,890)
----------------------------- --------------------------
Net loss $ (297,955) $ (225,955)
============================= ==========================
Net loss allocated to:
General Partner $ (2,980) $ (2,260)
============================= ==========================
Limited Partners $ (294,975) $ (223,695)
============================= ==========================
Net loss per weighted limited
partner unit $ (14) $ (11)
============================= ==========================
Outstanding weighted limited
partner units 20,500 20,500
============================= ==========================
See accompanying notes to financial statements
4
WNC HOUSING TAX CREDIT FUND VI, L.P., SERIES 6
(A California Limited Partnership)
STATEMENT OF PARTNERS' EQUITY (DEFICIT)
For the Three Months Ended June 30, 2002
(unaudited)
General Limited
Partner Partners Total
------------ --------------- ----------------
Partners' equity (deficit) at March 31, 2002 $ (53,489) $ 15,152,381 $ 15,098,892
Net loss (2,980) (294,975) (297,955)
------------ --------------- ----------------
Partners' equity (deficit) at June 30, 2002 $ (56,469) $ 14,857,406 $ 14,800,937
============ =============== ================
See accompanying notes to financial statements
5
WNC HOUSING TAX CREDIT FUND VI, L.P., SERIES 6
(A California Limited Partnership)
STATEMENTS OF CASH FLOWS
For the Three Months Ended June 30, 2002 and 2001
(unaudited)
2002 2001
-------------------- -------------------
Cash flows from operating activities:
Net loss $ (297,955) $ (225,955)
Adjustments to reconcile net loss to
cash used in operating activities:
Amortization 12,887 12,887
Equity in losses of limited partnerships 265,230 189,890
Accrued fees and expenses due to
General Partner and affiliates (6,800) 7,259
-------------------
--------------------
Net cash used in operating activities (26,638) (15,919)
-------------------- -------------------
Cash flows from investing activities:
Loans receivable 50,000 -
Distributions received - 5,000
-------------------- -------------------
Net cash provided by investing activities 50,000 5,000
-------------------- -------------------
Net increase (decrease) in cash and cash equivalents 23,362 (10,919)
Cash and cash equivalents, beginning of period 751,327 1,152,887
-------------------- -------------------
Cash and cash equivalent, end of period $ 774,689 $ 1,141,968
==================== ===================
Supplemental Disclosure of Cash Flow Information
Taxes Paid $ 800 $ 800
==================== ===================
See accompanying notes to financial statements
6
WNC HOUSING TAX CREDIT FUND VI, L.P., SERIES 6
(A California Limited Partnership)
NOTES TO FINANCIAL STATEMENTS
For the Quarter Ended June 30, 2002
(unaudited)
NOTE 1 -SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
- --------------------------------------------------
General
- -------
The accompanying condensed unaudited financial statements have been prepared in
accordance with accounting principles generally accepted in the United States of
America for interim financial information and with the instructions to Form 10-Q
for quarterly reports under Section 13 or 15(d) of the Securities Exchange Act
of 1934. Accordingly, they do not include all of the information and footnotes
required by accounting principles generally accepted in the United States of
America for complete financial statements. In the opinion of management, all
adjustments (consisting of normal recurring accruals) considered necessary for a
fair presentation have been included. Operating results for the three months
ended June 30, 2002 are not necessarily indicative of the results that may be
expected for the fiscal year ending March 31, 2003. For further information,
refer to the financial statements and footnotes thereto included in the
Partnership's annual report on Form 10-K for the fiscal year ended March 31,
2002.
Organization
- ------------
WNC Housing Tax Credit Fund VI, L.P., Series 6 (the "Partnership") was formed on
March 3, 1997 under the laws of the State of California, and commenced
operations on August 20, 1998. Prior to August 20, 1998, the Partnership was
considered a development-stage enterprise. The Partnership was formed to invest
primarily in other limited partnerships ("the Local Limited Partnerships") which
own and operate multi-family housing complexes (the "Housing Complexes") that
are eligible for low income housing tax credits. The local general partners (the
"Local General Partners") of each Local Limited Partnership retain
responsibility for developing, constructing, maintaining, operating and managing
the Housing Complex.
The general partner is WNC & Associates, Inc. ("WNC" or the "General Partner").
The chairman and president own substantially all the outstanding stock of WNC.
The business of the Partnership is conducted primarily through WNC, as the
Partnership has no employees of its own.
The Partnership shall continue in full force and effect until December 31, 2052
unless terminated prior to that date, pursuant to the partnership agreement or
law.
The financial statements include only activity relating to the business of the
Partnership, and do not give effect to any assets that the partners may have
outside of their interests in the Partnership, or to any obligations, including
income taxes, of the partners.
The Partnership agreement authorized the sale of up to 25,000 units at $1,000
per Unit ("Units"). As of June 30, 2002 and March 31, 2002, 20,500 units,
representing subscriptions in the amount of $20,456,595, net of discounts of
$27,305 for volume purchases and dealer discounts of $16,100 had been accepted.
The General Partner has 1% interest in operating profits and losses, taxable
income and losses, cash available for distribution from the Partnership and tax
credits of the Partnership. The limited partners will be allocated the remaining
99% of these items in proportion to their respective investments.
After the limited partners have received proceeds from a sale or refinancing
equal to their capital contributions and their return on investment (as defined
in the Partnership Agreement) and the General Partner has received proceeds
equal to its capital contribution and a subordinated disposition fee (as
described in Note 4) from the remainder, any additional sale or refinancing
proceeds will be distributed 90% to the limited partners (in proportion to their
respective investments) and 10% to the General Partner.
7
WNC HOUSING TAX CREDIT FUND VI, L.P., SERIES 6
(A California Limited Partnership)
NOTES TO FINANCIAL STATEMENTS - CONTINIUED
For the Quarter Ended June 30, 2002
(unaudited)
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, continued
- --------------------------------------------------------------
Risks and Uncertainties
- -----------------------
The Partnership's investments in Local Limited Partnerships are subject to the
risks incident to the management and ownership of low-income housing and to the
management and ownership of multi-unit residential real estate. Some of these
risks are that the low income housing credit could be recaptured and that
neither the Partnership's investments nor the Housing Complexes owned by the
Local Limited Partnerships will be readily marketable. To the extent the Housing
Complexes receive government financing or operating subsidies, they may be
subject to one or more of the following risks: difficulties in obtaining tenants
for the Housing Complexes; difficulties in obtaining rent increases; limitations
on cash distributions; limitations on sales or refinancing of Housing Complexes;
limitations on transfers of Local Limited Partnership Interests; limitations on
removal of Local General Partners; limitations on subsidy programs; and possible
changes in applicable regulations. The Housing Complexes are or will be subject
to mortgage indebtedness. If a Local Limited Partnership does not make its
mortgage payments, the lender could foreclose resulting in a loss of the Housing
Complex and low-income housing credits. As a limited partner of the Local
Limited Partnerships, the Partnership will have very limited rights with respect
to management of the Local Limited Partnerships, and will rely totally on the
Local General Partners of the Local Limited Partnerships for management of the
Local Limited Partnerships. The value of the Partnership's investments will be
subject to changes in national and local economic conditions, including
unemployment conditions, which could adversely impact vacancy levels, rental
payment defaults and operating expenses. This, in turn, could substantially
increase the risk of operating losses for the Housing Complexes and the
Partnership. In addition, each Local Limited Partnership is subject to risks
relating to environmental hazards and natural disasters, which might be
uninsurable. Because the Partnership's operations will depend on these and other
factors beyond the control of the General Partner and the Local General
Partners, there can be no assurance that the anticipated low income housing
credits will be available to Limited Partners.
In addition, Limited Partners are subject to risks in that the rules governing
the low income housing credit are complicated, and the use of credits can be
limited. The only material benefit from an investment in Units may be the low
income housing credits. There are limits on the transferability of Units, and it
is unlikely that a market for Units will develop. All management decisions will
be made by the General Partner.
Method of Accounting For Investments in Local Limited Partnerships
- ------------------------------------------------------------------
The Partnership accounts for its investments in Limited Partnerships using the
equity method of accounting, whereby the Partnership adjusts its investment
balance for its share of the Local Limited Partnership's results of operations
and for any distributions received. The accounting policies of the Local Limited
Partnerships are consistent with the Partnership. Costs incurred by the
Partnership in acquiring the investments are capitalized as part of the
investment and amortized over 30 years (see Note 3).
Offering Expenses
- -----------------
Offering expenses consist of underwriting commissions, legal fees, printing,
filing and recordation fees, and other costs incurred with the selling of
limited partnership interests in the Partnership. The General Partner is
obligated to pay all offering and organization costs in excess of 14.5%
(including sales commissions) of the total offering proceeds. Offering expenses
are reflected as a reduction of limited partners' capital and amounted to
$2,817,761 as of June 30, 2002 and March 31, 2002.
8
WNC HOUSING TAX CREDIT FUND VI, L.P., SERIES 6
(A California Limited Partnership)
NOTES TO FINANCIAL STATEMENTS - CONTINIUED
For the Quarter Ended June 30, 2002
(unaudited)
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, continued
- --------------------------------------------------------------
Use of Estimates
- ----------------
The preparation of financial statements in conformity with accounting principles
generally accepted in the United States of America requires management to make
estimates and assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent assets and liabilities at the date of
the financial statements, and the reported amounts of revenues and expenses
during the reporting period. Actual results could materially differ from those
estimates.
Cash and Cash Equivalents
- -------------------------
The Partnership considers all highly liquid investments with remaining maturity
of three months or less when purchased to be cash equivalents. As of June 30,
2002 and March 31, 2002 the Partnership had no cash equivalents.
Net Income Per Limited Partner Unit
- -----------------------------------
Net income per limited partner unit is calculated pursuant to Statement of
Financial Accounting Standards No. 128, Earnings Per Share. Net income per unit
includes no dilution and is computed by dividing income available to limited
partners by the weighted average number of units outstanding during the period.
Calculation of diluted net income per unit is not required.
Concentration of Credit Risk
- ----------------------------
At June 30, 2002 and March 31, 2002, the Partnership maintained cash balances at
certain financial institutions in excess of the federally insured maximum.
Reporting Comprehensive Income
- ------------------------------
The Statement of Financial Accounting Standards ("SFAS") No. 130, Reporting
Comprehensive Income established standards for the reporting and display of
comprehensive income (loss) and its components in a full set of general-purpose
financial statements. The Partnership had no items of other comprehensive income
for all periods presented, as defined by SFAS No. 130.
New Accounting Pronouncement
- ----------------------------
In October 2001, the FASB issued Statement of Financial Accounting Standards No.
144, "Accounting for the Impairment or Disposal of Long-Lived Assets" ("SFAS
144"), which addresses accounting and financial reporting for the impairment or
disposal of long-lived assets. SFAS 144 is effective for fiscal years beginning
after December 15, 2001, and generally, is to be applied prospectively. The
Partnership does not expect SFAS 144 to have a material impact on the
Partnership's financial position or results of operations.
Reclassification
- ----------------
Certain prior period balances have been reclassified to conform to the
presentation for the three months ended June 30, 2002.
9
WNC HOUSING TAX CREDIT FUND VI, L.P., SERIES 6
(A California Limited Partnership)
NOTES TO FINANCIAL STATEMENTS - CONTINIUED
For the Quarter Ended June 30, 2002
(unaudited)
NOTE 2 - LOAN RECEIVABLE
- ------------------------
Loans receivable represent amounts loaned by the Partnership to certain Local
Limited Partnerships in which the Partnership may invest. These loans are
generally applied against the first capital contribution due if the Partnership
ultimately invests in such entities. In the event that the Partnership does not
invest in such entities, the loans are to be repaid with interest at a rate
which is equal to the rate charged to the holder (11.5% and 11.5% at March 31,
2002 and 2001, respectively). A loan receivable with a balance of $50,000 at
March 31, 2002 and 2001 was due from one Local Limited Partnership, in which an
interest was not acquired. On April 11, 2002, the loan was repaid.
NOTE 3 - INVESTMENTS IN LIMITED PARTNERSHIPS
- --------------------------------------------
As of June 30, 2002 and March 31, 2002, the Partnership had acquired Limited
Partnership interests in fifteen Local Limited Partnerships each of which owns
one Housing Complex, except for one Local Limited Partnership which owns three
Housing Complexes, consisting of an aggregate of 608 apartment units. As of June
30, 2002, construction or rehabilitation of one of the Housing Complexes was
still in process. The respective general partners of the Local Limited
Partnerships manage the day to day operations of the entities. Significant Local
Limited Partnership business decisions require approval from the Partnership.
The Partnership, as a limited partner, is generally entitled to 99.9%, as
specified in the Local Limited Partnership agreements, of the operating profits
and losses, taxable income and losses and tax credits of the Local Limited
Partnerships.
As of August 22, 2002, the Partnership had not obtained audited financial
statements for one of its investments, Cotton Mill Elderly Living Center, L.P.
("Cotton Mill"), as of and for the year ended December 31, 2001. As a result,
the Partnership has not included the financial information of Cotton Mill in the
combined condensed statement of operations presented herein. The Partnership's
investment in Cotton Mill totaled $720,000 (unaudited) at June 30, 2002. The
Partnership's estimate of its interest in the results of operations of Cotton
Mill totaled $(50,000) (unaudited) for the period ended June 30, 2002. The
combined condensed statement of operations presented herein for June 30, 2001
previously included a net loss of $(6,000) for Cotton Mill. The combined
condensed financial information presented in this footnote for 2001 has been
restated to exclude the accounts of Cotton Mill.
Equity in losses of the Local Limited Partnerships is recognized in the
financial statements until the related investment account is reduced to a zero
balance. Losses incurred after the investment account is reduced to zero are not
recognized. If the Local Limited Partnerships report net income in future years,
the Partnership will resume applying the equity method only after its share of
such net income equals the share of net losses not recognized during the
period(s) the equity method was suspended.
10
WNC HOUSING TAX CREDIT FUND VI, L.P., SERIES 6
(A California Limited Partnership)
NOTES TO FINANCIAL STATEMENTS - CONTINIUED
For the Quarter Ended June 30, 2002
(unaudited)
NOTE 3 - INVESTMENTS IN LIMITED PARTNERSHIPS, continued
- -------------------------------------------------------
Distributions received by limited partners are accounted for as a reduction of
the investment balance. Distributions received after the investment has reached
zero are recognized as income. As of June 30, 2002, no investment accounts in
Local Limited Partnerships had reached a zero balance.
Following is a summary of the equity method activity of the investments in
limited partnerships as of:
For the Three Months
Ended For the Year Ended
June 30, 2002 March 31, 2002
----------------------- ---------------------
Investments per balance sheet, beginning of period $ 14,585,268 $ 15,439,696
Capital contributions paid, net - 298,125
Capital contributions to be paid - 52,605
Equity in losses of limited partnerships (265,230) (1,136,238)
Tax credit adjustments - (7,537)
Amortization of capitalized acquisition fees and costs (12,887) (51,548)
Distributions received from limited partnerships - (9,835)
----------------------- ---------------------
Investments in limited partnerships, end of period $ 14,307,151 $ 14,585,268
======================= =====================
WNC HOUSING TAX CREDIT FUND VI, L.P., SERIES 6
(A California Limited Partnership)
NOTES TO FINANCIAL STATEMENTS - CONTINIUED
For the Quarter Ended June 30, 2002
(unaudited)
NOTE 3 - INVESTMENTS IN LIMITED PARTNERSHIPS, continued
- -------------------------------------------------------
Selected financial information for the three months ended June 30, 2002 and 2001
from the unaudited combined condensed financial statements of the limited
partnerships in which the Partnership has invested as follows:
COMBINED CONDENSED STATEMENTS OF OPERATIONS
2002 2001
----------------------- ---------------------
(Restated)
Revenues $ 596,000 $ 533,000
----------------------- ---------------------
Expenses:
Interest expense 152,000 151,000
Depreciation and amortization 271,000 245,000
Operating expenses 393,000 325,000
----------------------- ---------------------
Total expenses 816,000 721,000
----------------------- ---------------------
Net loss $ (220,000) $ (188,000)
======================= =====================
Net loss allocable to the Partnership, $ (215,000) $ (188,000)
before equity in losses of Cotton Mill
======================= =====================
Net loss recorded by the Partnership, (215,000) (184,000)
before equity in losses of Cotton Mill
Net loss of Cotton Mill recorded
by the Partnership (unaudited) (50,000) (6,000)
----------------------- ---------------------
Net loss recorded by the Partnership $ (265,000) $ (190,000)
======================= =====================
Certain Local Limited Partnerships have incurred significant operating losses
and have working capital deficiencies. In the event these Local Limited
Partnerships continue to incur significant operating losses, additional capital
contributions by the Partnership and/or the Local General Partner may be
required to sustain the operations of such Local Limited Partnerships. If
additional capital contributions are not made when they are required, the
Partnership's investment in certain of such Local Limited Partnerships could be
impaired, and the loss and recapture of the related tax credits could occur.
12
WNC HOUSING TAX CREDIT FUND VI, L.P., SERIES 6
(A California Limited Partnership)
NOTES TO FINANCIAL STATEMENTS - CONTINIUED
For the Quarter Ended June 30, 2002
(unaudited)
NOTE 4 - RELATED PARTY TRANSACTIONS
- -----------------------------------
Under the terms of the Partnership Agreement, the Partnership has paid or is
obligated to the General Partner or its affiliates for the following items:
(a) An annual asset management fee not to exceed 0.2% of the Invested Assets
(defined as the Partnership's capital contributions plus reserves of the
Partnership of up to 5% of gross proceeds plus its allocable percentage of
the mortgage debt encumbering the Housing Complexes) of the Local Limited
Partnerships. Management fees of $14,952 were incurred during each of the
three months ended June 30, 2002 and 2001, of which $26,992 and $13,516
were paid during the three months ended June 30, 2002 and 2001,
respectively.
(b) A subordinated disposition fee in an amount equal to 1% of the sales price
of real estate sold. Payment of this fee is subordinated to the limited
partners receiving a preferred return of 12% through December 31, 2008 and
6% thereafter (as defined in the Partnership Agreement) and is payable only
if the General Partner or its affiliates render services in the sales
effort. No disposition fees have been paid.
Accrued fees and expenses due to the General Partner and affiliates consisted of
the following:
June 30, 2002 March 31, 2002
--------------------- ---------------------
Asset management fees payable $ 22,172 $ 34,212
Reimbursement for expenses paid by the General Partner
or an affiliate 14,605 9,365
--------------------- ---------------------
Total $ 36,777 $ 43,577
===================== =====================
NOTE 5 - PAYABLES TO LIMITED PARTNERSHIPS
- -----------------------------------------
Payables to limited partnerships represent amounts, which are due at various
times based on conditions specified in the limited partnership agreements. These
contributions are payable in installments and are due upon the Local Limited
Partnerships achieving certain operating and development benchmarks (generally
within two years of the Partnership's initial investment).
NOTE 6 - INCOME TAXES
- ---------------------
No provision for income taxes has been recorded in the accompanying financial
statement, as any liability for income taxes is the obligation of the partners
of the Partnership.
13
Item 2. Management's Discussion and Analysis of Financial Condition and Results
of Operations
Forward Looking Statements
With the exception of the discussion regarding historical information,
"Management's Discussion and Analysis of Financial Condition and Results of
Operations" and other discussions elsewhere in this Form 10-Q contain
forward-looking statements. Such statements are based on current expectations
subject to uncertainties and other factors, which may involve known and unknown
risks that could cause actual results of operations to differ materially from
those projected or implied. Further, certain forward-looking statements are
based upon assumptions about future events, which may not prove to be accurate.
Risks and uncertainties inherent in forward looking statements include, but are
not limited to, our future cash flows and ability to obtain sufficient
financing, level of operating expenses, conditions in the low income housing tax
credit property market and the economy in general, as well as legal proceedings.
Historical results are not necessarily indicative of the operating results for
any future period.
Subsequent written and oral forward looking statements attributable to us or
persons acting on our behalf are expressly qualified in their entirety by
cautionary statements in this Form 10-Q and in other reports we filed with the
Securities and Exchange Commission. The following discussion should be read in
conjunction with the Financial Statements and the Notes thereto included
elsewhere in this filing.
The following discussion and analysis compares the results of operations for the
three months ended June 30, 2002 and 2001, and should be read in conjunction
with the condensed financial statements and accompanying notes included within
this report.
Financial Condition
The Partnership's assets at June 30, 2002 consisted primarily of $775,000 in
cash, net investments in fifteen Local Limited Partnerships of $14,307,000 and
$2,000 in other assets. Liabilities at June 30, 2002 primarily consisted of
$246,000 of capital contributions due to Local Limited Partnerships and $37,000
of accrued fees and advances due to the General Partner and affiliates.
Results of Operations
Three Months Ended June 30, 2002 Compared to Three Months Ended June 30, 2001.
The Partnership's net loss for the three months ended June 30, 2002 was
$(298,000), reflecting an increase of approximately $(72,000) from the net loss
of $(226,000) for the three months ended June 30, 2001. The increase in net loss
was primarily due to equity in losses of limited partnerships which increased by
$(75,000) to $(265,000) for the three months ended June 30, 2002 from $(190,000)
for the three months ended June 30, 2001. The increase in equity in losses of
limited partnerships was offset by loss from operations, which decreased by
$(3,000) to $(33,000) for the three months ended June 30, 2002 from $(36,000)
for the three months ended June 30, 2001. The decrease in loss from operations
was due a decrease in interest income of $11,000, which was offset by a decrease
in operating expenses by $14,000 to $37,000 for the three months ended June 30,
2002 from approximately $51,000 for the three months ended June 30, 2001. The
decrease in operating expenses was due to a decrease in interest expense of
approximately $15,000, which was offset by an increase in legal and accounting
fees of $1,000 for the three months ended June 30, 2002.
Cash Flows
Three months Ended June 30, 2002 Compared to Three months Ended June 30, 2001.
Net increase in cash during the three months ended June 30, 2002 was $23,000
compared to net cash decrease for the three months ended June 30, 2001 of
$(11,000), reflecting an increase of $34,000. The increase is primarily due to
an increase in cash provided by net investing activities of approximately
$(45,000) from $5,000 for the three months ended June 30, 2001 to $50,000 for
the three months ended June 30, 2002. This was offset by an increase of
approximately $11,000 in net cash used in operating activities from $(16,000)
for the three months ended June 30, 2001, to $(27,000) for the three months
ended June 30, 2002.
The Partnership expects its future cash flows, together with its net available
assets at June 30, 2002, to be sufficient to meet all future cash requirements.
14
Impact of New Accounting Pronouncement
In October 2001, the FASB issued Statement of Financial Accounting Standards No.
144, "Accounting for the Impairment or Disposal of Long-Lived Assets" ("SFAS
144"), which addresses accounting and financial reporting for the impairment or
disposal of long-lived assets. SFAS 144 is effective for fiscal years beginning
after December 15, 2001, and generally, is to be applied prospectively. The
Partnership does not expect SFAS 144 to have a material impact on the
Partnership's financial position or results of operations.
15
Item 3: Quantitative and Qualitative Disclosures Above Market Risks
NOT APPLICABLE
Part II. Other Information
Item 1. Legal Proceedings
NONE
Item 6. Exhibits and Reports on Form 8-K
NONE
16
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.
WNC HOUSING TAX CREDIT FUND VI, L.P., Series 6
By: WNC & Associates, Inc. General Partner of the Registrant
By: /s/ Wilfred N. Cooper, Jr.
--------------------------
Wilfred N. Cooper, Jr.
President and Chief Operating Officer of WNC & Associates, Inc.
Date: August 22, 2002
By: /s/ Thomas J. Riha
-------------------
Thomas J. Riha
Vice President and Chief Financial Officer of WNC & Associates, Inc.
Date: August 22, 2002
17
CERTIFICATION PURSUANT TO
18 U.S.C. SECTION 1350,
AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
In connection with the Quarterly Report on Form 10-Q of WNC Housing Tax
Credit VI, L.P., Series 6 (the "Partnership") for the period ended June 30, 2002
as filed with the Securities and Exchange Commission on the date hereof (the
"Report"), and pursuant to 18 U.S.C., section 1350, as adopted pursuant to
section 906 of the Sarbanes-Oxley Act of 2002, I, Wilfred N. Cooper, Sr.,
Chairman and Chief Executive Officer of WNC & Associates, Inc., general partner
[of the general partner] of the Partnership, hereby certify that:
1. The Report fully complies with the requirements of section 13(a) or 15(d)
of the Securities Exchange Act of 1934; and
2. The information contained in the Report fairly presents, in all material
respects, the financial condition and result of operations of the
Partnership.
/s/WILFRED N. COOPER, SR.
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Wilfred N. Cooper, Sr.
Chairman and Chief Executive Officer of WNC & Associates, Inc.
August 22, 2002
CERTIFICATION PURSUANT TO
18 U.S.C. SECTION 1350,
AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
In connection with the Quarterly Report on Form 10-Q of WNC Housing Tax
Credit VI, L.P., Series 6 (the "Partnership") for the period ended June 30, 2002
as filed with the Securities and Exchange Commission on the date hereof (the
"Report"), and pursuant to 18 U.S.C., section 1350, as adopted pursuant to
section 906 of the Sarbanes-Oxley Act of 2002, I, Thomas J. Riha, Chief
Financial Officer of WNC & Associates, Inc., general partner [of the general
partner] of the Partnership, hereby certify that:
1. The Report fully complies with the requirements of section 13(a) or 15(d)
of the Securities Exchange Act of 1934; and
2. The information contained in the Report fairly presents, in all material
respects, the financial condition and result of operations of the
Partnership.
/s/THOMAS J. RIHA
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Thomas J. Riha
Chief Financial Officer of WNC & Associates, Inc.
August 22, 2002
18