<PAGE>
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, 1998
---------------
[ ] 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: 0-08305
THE WRITER CORPORATION
------------------------------------------------------
(Exact name of registrant as specified in its charter)
Colorado 84-0510478
-------------------------------------------------------
(State or other jurisdiction of (IRS Employer
incorporation or organization) Identification No.
6061 S. Willow Dr., #232, Englewood, Colorado 80111
------------------------------------------------------
(Address of principal executive offices) Zip Code
(303) 779-4100
----------------------------------------------------
(Registrant's telephone number, including area code)
Not Applicable
--------------------------------------------------------------------
(Former name, former address and former fiscal year, if change since
last report)
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 during the
preceding 12 months (or for such shorter period that the registrant is required
to file such reports), and (2) has been subject to such filing requirements for
the past 90 days. Yes X No
--- ---
Indicate by check mark if disclosure of delinquent filers pursuant to Item 405
of Regulation S-K is not contained herein, and will not be contained, to the
best of registrant's knowledge, in definitive proxy or information statements
incorporated by reference in Part III of Form 10-K or any amendment to Form
10-K. X
---
APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY
PROCEEDINGS DURING THE PRECEDING FIVE YEARS:
Indicate by check mark whether the registrant has filed all documents and
reports required to be filed by Sections 12, 13 or 15(d) of the Securities
Exchange Act of 1934 subsequent to the distribution of securities under a plan
confirmed by a court. Yes No
--- ---
APPLICABLE ONLY TO CORPORATE ISSUERS:
Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the latest practicable date. 7,430,590 shares as of
August 7, 1998.
<PAGE>
THE WRITER CORPORATION
AND SUBSIDIARIES
INDEX
Page
PART I. FINANCIAL INFORMATION Number
------
Item 1. FINANCIAL STATEMENTS
Consolidated Balance Sheets
June 30, 1998 and December 31, 1997 (Unaudited) 3
Condensed Consolidated Statements
of Operations for the three and six months
ended June 30, 1998 and 1997 (Unaudited) 5
Condensed Consolidated Statements of Cash Flows
for the six months ended June 30, 1998 and
1997 (Unaudited) 6
Notes to Consolidated Financial Statements (Unaudited) 7
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS, LIQUIDITY AND CAPITAL
RESOURCES 9
Item 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK 12
PART II. OTHER INFORMATION 13
2
<PAGE>
THE WRITER CORPORATION
AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Unaudited)
<TABLE>
<CAPTION>
June 30, December 31,
1998 1997
---- ----
<S> <C> <C>
ASSETS
Residential real estate held for sale, net:
Homes under construction $18,319,000 $16,804,000
Model homes and furnishings 3,826,000 3,516,000
Land and land development 14,728,000 16,041,000
Raw land 755,000 739,000
----------- -----------
Subtotal 37,628,000 37,100,000
Office property and equipment, less accumulated
depreciation of $462,000 and $401,000 568,000 470,000
Other assets:
Cash and cash equivalents 1,749,000 1,015,000
Restricted cash 666,000 722,000
Accounts receivable 407,000 315,000
Deferred tax asset 1,400,000 1,251,000
Other 431,000 707,000
----------- -----------
Total Assets $42,849,000 $41,580,000
----------- -----------
----------- -----------
</TABLE>
(Continued)
3
<PAGE>
THE WRITER CORPORATION
AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Unaudited)
<TABLE>
<CAPTION>
June 30, December 31,
1998 1997
---- ----
<S> <C> <C>
LIABILITIES
Notes payable $17,813,000 $19,221,000
Accounts payable and accrued expenses 6,556,000 4,796,000
Accrued interest 151,000 182,000
----------- -----------
Subtotal 24,520,000 24,199,000
STOCKHOLDERS' EQUITY
Common stock, $.10 par value; authorized,
10,000,000 shares; 7,429,600 and 7,354,600
shares issued and outstanding 743,000 735,000
Additional paid-in capital 12,428,000 12,352,000
Retained earnings 5,158,000 4,294,000
----------- -----------
Total Stockholders' Equity, net 18,329,000 17,381,000
----------- -----------
$42,849,000 $41,580,000
----------- -----------
----------- -----------
</TABLE>
(Concluded)
See notes to consolidated financial statements.
4
<PAGE>
THE WRITER CORPORATION
AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
<TABLE>
<CAPTION>
For the Three Months For the Six Months
Ended June 30, Ended June 30,
1998 1997 1998 1997
---- ---- ---- ----
<S> <C> <C> <C> <C>
Residential operations:
Revenue $ 15,323,000 $ 8,264,000 $ 27,032,000 $ 18,906,000
Cost of sales (12,260,000) (6,546,000) (21,409,000) (15,158,000)
Expenses (2,444,000) (1,665,000) (4,860,000) (3,380,000)
------------ ----------- ------------ ------------
Income from residential operations 619,000 53,000 763,000 368,000
Interest and other income, net 79,000 24,000 124,000 1,045,000
------------ ----------- ------------ ------------
Net income before income taxes 698,000 77,000 887,000 1,413,000
Income tax (expense) benefit 49,000 (23,000)
------------ ----------- ------------ ------------
Net income $ 747,000 $ 77,000 $ 864,000 $ 1,413,000
------------ ----------- ------------ ------------
------------ ----------- ------------ ------------
Earnings per basic share: $ 0.10 $ 0.01 $ 0.12 $ 0.19
Earnings per diluted share: $ 0.10 $ 0.01 $ 0.11 $ 0.19
Weighted average number of
shares Outstanding:
Basic 7,430,000 7,355,000 7,392,000 7,355,000
Diluted 7,961,000 7,714,000 7,881,000 7,714,000
</TABLE>
See notes to consolidated financial statements.
5
<PAGE>
THE WRITER CORPORATION
AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
<TABLE>
<CAPTION>
For the Six Months
Ended June 30,
1998 1997
---- ----
<S> <C> <C>
NET CASH PROVIDED BY OPERATING ACTIVITIES: $ 2,296,000 $ 315,000
------------ ------------
CASH FLOWS PROVIDED BY (USED IN) INVESTING
ACTIVITIES
Purchases of office property and equipment (238,000) (282,000)
Proceeds from sale of office property 905,000
------------ ------------
Net cash (used in) provided by investing activity (238,000) 623,000
------------ ------------
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from notes payable 17,421,000 12,229,000
Principal payments on notes payable (18,829,000) (13,781,000)
Proceeds from the sale of common stock 84,000
------------ ------------
Net cash used in financing activities (1,324,000) (1,552,000)
------------ ------------
NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS 734,000 (614,000)
CASH AND CASH EQUIVALENTS, beginning of period 1,015,000 995,000
------------ ------------
CASH AND CASH EQUIVALENTS, end of period $ 1,749,000 $ 381,000
------------ ------------
------------ ------------
</TABLE>
See notes to consolidated financial statements.
6
<PAGE>
THE WRITER CORPORATION
AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
A. ACCOUNTING POLICIES:
The consolidated balance sheet as of June 30, 1998 and the related condensed
consolidated statements of operations and cash flows for the three and six month
period ended June 30, 1998 and 1997 are unaudited, but in management's opinion,
include all adjustments necessary for a fair presentation of such financial
statements. Such adjustments consisted only of normal recurring items. Interim
results are not necessarily indicative of results for a full year.
The consolidated financial statements include the accounts of The Writer
Corporation and its wholly owned subsidiaries (the Company). All significant
intercompany transactions and balances have been eliminated in consolidation.
The financial statements should be read in conjunction with the audited
Consolidated Financial Statements included in the annual report on Form 10-K for
the year ended December 31, 1997. Except as described herein, the accounting
policies utilized in the preparation of these financial statements are the same
as those set forth in the Company's annual financial statements except as
modified for interim accounting treatment.
In February, 1997 the Financial Accounting Standards Board issued Statement of
Financial Accounting Standards No. 128 Earnings Per Share ("SFAS 128"). SFAS 128
established standards for computing and presenting earnings per share (EPS), and
supersedes APB Opinion No. 15 and its related interpretations. It replaces the
presentation of primary EPS with a presentation of basic EPS, which excludes
dilution, and requires dual presentation of basic and diluted EPS for all
entities with complex capital structures. Diluted EPS is computed similarly to
fully diluted EPS pursuant to Opinion No. 15. The Company adopted SFAS 128 in
December 1997 and has restated EPS in the accompanying financial statements to
give retroactive effect to the adoption of the accounting standard. The adoption
of SFAS 128 did not have a material effect on EPS.
7
<PAGE>
The following table reconciles income and the number of shares outstanding used
in the calculation of basic and diluted earnings per share.
<TABLE>
<CAPTION>
For the Six Months Ended June 30, 1998: Income Shares Per Share
------ ------ ---------
<S> <C> <C> <C>
Net Income $ 864,000 7,392,000 $0.12
Effect of Options 189,000
Effect of convertible debt 32,000 300,000
---------- ---------
Net income per share - assuming dilution $ 896,000 7,881,000 $0.11
---------- --------- -----
---------- --------- -----
For the Quarter Ended June 30, 1998:
Net Income $ 747,000 7,430,000 $0.10
Effect of options 231,000
Effect of convertible debt 16,000 300,000
---------- ---------
Net income per share - assuming dilution $ 763,000 7,961,000 $0.10
---------- --------- -----
---------- --------- -----
For the Six Months Ended June 30, 1997:
Net Income $1,413,000 7,355,000 $0.19
Effect of options 59,000
Effect of convertible debt 51,000 300,000
---------- ---------
Net income per share - assuming dilution $1,464,000 7,714,000 $0.19
---------- --------- -----
---------- --------- -----
For the Quarter Ended June 30, 1997:
Net Income $ 77,000 7,355,000 $0.01
Effect of options 59,000
Effect of convertible debt 26,000 300,000
---------- ---------
Net income per share - assuming dilution $ 103,000 7,714,000 $0.01
---------- --------- -----
---------- --------- -----
</TABLE>
Effective January 1, 1998, the Company adopted Statement of Financial Accounting
Standards No. 130, "Reporting Comprehensive Income," which establishes standards
for reporting and display of comprehensive income and its components. It
requires that all changes in equity during a period, except those resulting from
investment by owners and distributions to owners, be reported as a component of
comprehensive income and that comprehensive income be displayed in annual
financial statements with the same prominence as other financial statements that
constitute a full set of financial statements. The Company's comprehensive
income for the three and six months ended June 30, 1998 and 1997 is the same
amount as the Company's net income for these periods.
8
<PAGE>
THE WRITER CORPORATION
AND SUBSIDIARIES
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS, LIQUIDITY AND CAPITAL RESOURCES.
FINANCIAL CONDITION
During the first six months of 1998 the Company increased its backlog of homes
under contract 116% to 158 units from 73 units at year end. This backlog
represents potential revenue of $31,600,000 at June 30, 1998 versus $16,200,000
at December 31, 1997. On March 31, 1998 the Company's backlog was 144 units
representing potential revenue of $30,000,000. These increases reflect continued
stability in market conditions in the Denver metropolitan area, which are
exceeding our expectations, supplemented by our expansion into northern
Colorado. On July 31, 1998 the Company's backlog had increased an additional 13%
over June 30, 1998 to 179 units representing potential revenue of $35,319,000.
The Company's backlog was 79 units representing potential revenue of $17,521,000
at June 30, 1997.
The Company's work in process inventory of homes under construction increased by
$1,515,000, or 9% from the year end balance. This increase is attributable to
the aforementioned increased backlog.
Model homes and furnishings increased by $310,000, or 9% also which reflects the
construction and opening of models at Park Square at Lowry and models for the
Northern Division operations at Stetson Creek and River West.
The Company's land and land development accounts decreased by $1,313,000, or 8%
which reflects the Company's continued emphasis on moving lots to production.
This movement has been accelerated due to the increased sales activity at the
Company's projects.
The Company's continuing operating profit has allowed it to increase its cash
balances, however cash balances are greatest at quarter end due to the closings
which take place at that time. A corresponding increase is reflected in the
Company's trade accounts payable which was reduced with the Company's cash
reserves subsequent to the quarter end.
The Company's deferred tax asset has been increased by $149,000. The Company's
continued improvement in operations now provides a basis for additional
recognition of the Company's deferred tax assets. These deferred tax assets stem
primarily from land valuations previously expensed within prior periods which
are now being utilized to reduce tax liabilities payable.
Accounts receivable increased by $92,000 which reflects additional deposits with
utility companies, and escrows established pursuant to landscape agreements at
the time of home closings with buyers. These funds are typically disbursed to
the Company after the completion of the landscape improvements.
The Company's notes payable account was reduced by $1,408,000, or 7% despite the
increase in the Company's work in process inventory which is essentially 100%
financed. The decrease in notes payable reflects the accelerated payments on the
Company's land debt as closings have increased. In addition the Company has
repaid amounts advanced from its revolving line of credit and retired its
Series-A 1992 notes.
9
<PAGE>
Accounts payable and accrued expenses increased by $1,760,000. This increase is
reflective of recording estimated amounts for costs of thirty houses closed in
June 1998, but for which invoices have not yet been received. The increase also
reflects the higher work in process balance mentioned above. In addition the
Company significantly increased the profit sharing interest due to development
lenders from the year end balance due to the higher closing levels during the
second quarter. These profit sharing amounts were paid subsequent to quarter
end.
The Company's capital stock and additional paid in capital accounts were
increased due to the issuance of stock to the Company's former President and
Chief Operating Officer who exercised qualified stock options for 75,000 shares
prior to his departure. The increase in retained earnings reflects the Company's
net income of $864,000 for the six month period ending June 30, 1998.
RESULTS OF OPERATIONS
The Company closed 72 and 122 units for the three and six month periods ending
June 30, 1998 compared to 38 and 82 units for the same periods in the prior
year. Both periods reflect increases of 89% and 49%, respectively. For the first
six months of 1998, the Company's average sales price was $221,600 which
represents a $6,200 increase over the average sales price during the full year
of 1997. This modest increase reflects increases in the Company's overall base
housing prices, but is also impacted by the mix of products which is illustrated
below.
<TABLE>
<CAPTION>
Closings Townhomes Cluster Homes Single Family Total
- -------- --------- ------------- ------------- -----
<S> <C> <C> <C> <C>
3 month period ended June 30, 1998 34 4 34 72
3 month period ended June 30, 1997 19 3 16 38
6 month period ended June 30, 1998 54 13 55 122
6 month period ended June 30, 1997 34 5 43 82
</TABLE>
The combination of the increased unit activity and the higher average sales
price resulted in revenues of $15,323,000, and $27,032,000 for the three and six
month periods ended June 30, 1998. These amounts reflect increases from
comparable prior periods of $7,059,000, or 85% for the second quarter, and
$8,126,000, or 43% for the six month period. The Company's gross profit as a
percentage of revenue remained consistent with the prior year. However, due to
the increase of sales volume, gross profit increased by $1,345,000, to
$3,063,000 during the second quarter of 1998. This represents a 78% increase
over the prior year second quarter. During the six month period ended June 30,
1998 the Company's gross profit increased by $1,875,000 which represents a 50%
increase over the previous six month period. The Company's gross profit as a
percentage of revenue during the six month period ended June 30, 1998 increased
by 1% over the previous six month period and was 21%.
Due to the significant increase in revenue, the Company showed a corresponding
improvement in its operating expenses as a percentage of revenue. Operating
expenses were 16% and 18%, versus 20% and 18% for the three and six month
comparable periods. The overall increase in costs is primarily attributable to
variable marketing expenses, commissions and closing costs, which increase
relative to the higher revenue levels. In addition, the Company increased its
general and administrative expenses during both periods due primarily to higher
compensation levels and consulting expenses associated with new product design
and installation of the Company's new management information system. These costs
were partially offset by
10
<PAGE>
decreases in the Company's interest expense related to its debt and decreased
real estate taxes associated with inventory holdings.
As a result of these factors the Company recorded income from operations of
$619,000 and $763,000, for the three and six month periods ending June 30, 1998,
compared to $53,000 and $368,000 during the comparable prior year periods. This
improvement reflects a 107% increase in income from operations for the six month
period ended June 30, 1998.
During the first quarter of 1997, the Company sold its office building at a gain
of approximately $542,00 recorded as other income in the quarterly results
presented herewith. In addition to this gain, the Company retired the debt which
was collateralized by the office building at a discount which resulted in a
$106,000 of other income. Also included in the other income category is
$342,000, which represents a one time refund of taxes and fees.
At December 31, 1997 the Company had a deferred tax asset of $2,303,000 of which
$1,050,000 was reserved because of uncertainties as to the ultimate realization.
As the Company has realized income it can now be more certain than not that a
portion of the asset will be utilized and therefore a deferred tax benefit of
approximately $314,000 is reflected in the three and six month results for 1998.
All of these factors resulted in the Company recording net income of $747,000,
and $864,000 for the three and six month period ended June 30, 1998, versus
$77,000 and $1,413,000 for the comparable previous year periods. The 1997
results included certain nonrecurring items of $1,000,000, previously mentioned.
LIQUIDITY AND CAPITAL RESOURCES
During the first six months of 1998 the Company continued to improve its
liquidity and capital resources through its profitable operations. The Company
generated $2,296,000 of cash from its operating activities during the first six
months of 1998. In addition the Company reduced its overall debt by $1,408,000
due primarily to the acceleration of land debt repayments. These accelerated
repayments have been achievable because of the additional increase in unit sales
volumes.
The Company's lending relationships and borrowing capacities remain stable and
have been enhanced by more favorable terms and higher commitments which were
negotiated during recent renewals. The Company's debt to equity ratio continues
to be strong and has improved to less than a 1:1 ratio. The strength of the
Company's balance sheet continues to provide a basis for enhanced credit terms
from virtually all of the Company's lenders, and interest costs continue to be
lowered.
The Company has maintained its secured line of credit which provides $1,450,000
of available working capital to the Company. This reflects a slight decrease
from the commitment amount at December 31, 1997 which is attributable to the
reducing collateral base as the Company sells homes at its Castle Pines North
project. Although the Company has secured additional development financing with
this same collateral, the Company has agreed with its lender to maintain the
line of credit amount at its current level due to the enhanced value of the
underlying properties notwithstanding the reduced number of units. In addition
the Company maintains a $500,000 unsecured working capital facility with another
lender. Neither of these facilities was drawn upon at June 30, 1998, and
therefore remain available to the Company to support growth and working capital
needs.
11
<PAGE>
The Company continues in its desire to expand its operations through additional
land acquisitions and community development. However the current market
conditions command relatively high levels of pricing for both developed and
undeveloped ground, and therefore the Company intends to proceed cautiously with
its land acquisition activity. Virtually all land acquisition and community
development will require cash equity contributions from the Company in order to
secure financing. The Company believes its present working capital coupled with
ongoing profitable operations will provide the necessary equity for the planned
managed growth.
FORWARD LOOKING STATEMENT
In connection with, and because it desires to take advantage of, the "safe
harbor" provisions of the Private Securities Litigation Reform Act of 1995, the
Company cautions readers regarding certain forward looking statements contained
in the following discussion and elsewhere in this report and in any other
statements made by or on behalf of the Company whether or not in future filings
with the Securities and Exchange Commission. Forward looking statements are
statements not based on historical information and which relate to the future
operations, strategies, financial results, or other developments. In particular,
statements using verbs such as, "expected", "anticipate", "believe", or words of
similar import generally involve forward looking statements. Without limiting
the foregoing, forward looking statements include statements which represent the
Company's beliefs concerning future, or projected levels of sales of the
Company's homes, investments in land or other assets, projected absorption
rates, or the Company's ability to attract needed financing, or the continued
earnings or profitability of the Company's activities. Forward looking
statements are necessarily based upon estimates and assumptions that are
inherently subject to significant business, economic, and competitive
uncertainties and contingencies, many of which are beyond the Company's control
and many of which, with respect to future business decisions, are subject to
change. These uncertainties and contingencies can effect actual results and
could cause actual results to differ materially from those expressed in any
forward looking statements made by or on behalf of the Company. Whether or not
actual results differ materially from forward looking statements may depend on
numerous foreseeable and unforeseeable events or developments, some of which may
be national in scope, such as general economic conditions and interest rates;
some of which may be related to the homebuilding industry generally, such as
price, competition, regulatory developments, and industry consolidation; and
others of which may relate to the Company specifically, such as credit
availability and the liquidity necessary to provide equity into land acquisition
and development transactions and other factors.
Item 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.
Not applicable.
12
<PAGE>
THE WRITER CORPORATION
AND SUBSIDIARIES
PART II. OTHER INFORMATION
Item 1. LEGAL PROCEEDINGS
None
Item 2. CHANGES IN SECURITIES
None
Item 3. DEFAULTS UPON SENIOR SECURITIES
None
Item 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
None
Item 5. OTHER INFORMATION
None
Item 6. EXHIBITS AND REPORTS ON FORM 8-K
(b) There were no reports on Form 8-K filed for the six months
ended June 30, 1998.
13
<PAGE>
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.
THE WRITER CORPORATION
(Registrant)
Date: August 7, 1998 /s/ Daniel J. Nickless
--------------------------------------
By: Daniel J. Nickless
Executive Vice President and
Chief Operating and Financial Officer
14
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-START> JAN-01-1998
<PERIOD-END> JUN-30-1998
<CASH> 2,415,000<F1>
<SECURITIES> 0
<RECEIVABLES> 407,000
<ALLOWANCES> 0
<INVENTORY> 37,628,000<F2>
<CURRENT-ASSETS> 0
<PP&E> 1,030,000
<DEPRECIATION> 462,000
<TOTAL-ASSETS> 42,849,000<F3>
<CURRENT-LIABILITIES> 6,707,000
<BONDS> 17,813,000
0
0
<COMMON> 743,000
<OTHER-SE> 17,586,000
<TOTAL-LIABILITY-AND-EQUITY> 42,849,000
<SALES> 27,032,000
<TOTAL-REVENUES> 27,032,000
<CGS> 21,409,000
<TOTAL-COSTS> 21,409,000
<OTHER-EXPENSES> 4,736,000
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 887,000
<INCOME-TAX> (23,000)
<INCOME-CONTINUING> 864,000
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 864,000
<EPS-PRIMARY> .12
<EPS-DILUTED> .11
<FN>
<F1>Cash includes $666,000 of restricted cash
<F2>Inventory includes homes under construction $18,319,000, model homes &
furnishings $3,826,000, land and land development $14,728,000, unplatted
land $755,000
<F3>Total assets includes other assets of $1,831,000
</FN>
</TABLE>
