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Previous: FEDERATED STOCK & BOND FUND INC /MD/, 485BPOS, 1997-02-27 |
Next: BDI INVESTMENT CORP, NSAR-A, 1997-02-27 |
BDI INVESTMENT CORPORATION
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For the Six Months Ending
December 31, 1996
<PAGE>
BDI INVESTMENT CORPORATION
C O N T E N T S
Statement of Assets and Liabilities for the
Six Months Ended December 31, 1996
and Fiscal Year Ended July 1, 1996.
Statement of Operations for the Six
Months Ended December 31, 1996
and December 31, 1995.
Statement of Changes in Net Assets for the
Six Months Ended December 31, 1996
and December 31, 1995.
Notes to Financial Statements
Schedule of Securities
Supplementary Information
Corporate Data
<PAGE>
<TABLE>
<CAPTION>
BDI INVESTMENT CORPORATION
STATEMENT OF ASSETS AND LIABILITIES
(Unaudited)
Six Months Twelve Months
Ended Ended
December 31, June 29,
1996 1996
<S> <C> <C>
ASSETS:
Investments in Securities at Market
Value (Note B) (Cost of $13,631,000) ................ $ 13,680,000 $ 13,236,000
Cash and Cash Equivalents .............................. 76,000 86,000
Interest Receivable .................................... 253,000 259,000
Other Receivables ...................................... 8,000 7,000
Prepaid Expenses ....................................... 2,000 2,000
------------ ------------
Total Assets: .... $ 14,019,000 $ 13,590,000
LIABILITIES:
Accounts Payable ....................................... 10,000 11,000
Accrued Expenses ....................................... 11,000 10,000
Dividend Payable ....................................... 309,000 288,000
------------ ------------
Total Liabilities: $ 330,000 $ 309,000
------------ ------------
Net Assets: ...... $ 13,689,000 $ 13,281,000
============ ============
NET ASSETS:
Preferred Stock, Without Par Value:
Authorized, 500,000 Shares Issued None
Common Stock, Par Value $.10 Per Share
Authorized, 4,500,000 Shares
Issued, 1,425,151 .................................... 143,000 143,000
Additional Paid-In Capital ............................. 3,673,000 3,673,000
Retained Earnings ...................................... 9,895,000 9,487,000
Less-Treasury Stock at Cost, 3,600 Shares .............. (22,000) (22,000)
------------ ------------
Net Assets: ...... $ 13,689,000 $ 13,281,000
============ ============
Net Assets per Common Share Outstanding: ............... $ 9.63 $ 9.34
============ ============
See Notes To Financial Statements
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
BDI INVESTMENT CORPORATION
STATEMENT OF OPERATIONS
(Unaudited)
Six Months Ended
--------------------------
December 31, December 31,
1996 1995
---------- ----------
<S> <C> <C>
INVESTMENT INCOME: (Note B)
Interest ........................................ $ 394,000 $ 400,000
Dean Witter Tax Exempt .......................... 16,000 12,000
Tax-Exempt Dividends ............................ 1,000 2,000
---------- ----------
$ 411,000 $ 414,000
EXPENSES:
Accounting and Bookkeeping ...................... 14,000 13,000
Legal ........................................... 0 1,000
Directors' Fees ................................. 12,000 12,000
Other Operating ................................. 7,000 3,000
Insurance ....................................... 1,000 1,000
---------- ----------
34,000 30,000
---------- ----------
Net Investment Income ... $ 377,000 $ 384,000
---------- ----------
REALIZED AND UNREALIZED GAIN
ON INVESTMENTS:
Proceeds from Sales
and redemptions ............................... 131,000 1,096,000
Cost of Investments Sold
and Redeemed .................................. 129,000 1,031,000
---------- ----------
Net Realized Gain/(Loss) ........................ 2,000 65,000
Net Unrealized Gain/(Loss) ...................... 334,000 585,000
---------- ----------
Net Realized and Unrealized
Gain/(Loss) on Investments .................... 336,000 650,000
---------- ----------
NET REALIZED AND UNREALIZED GAIN ..................... $ 713,000 $1,034,000
========== ==========
See Note to Financial Statements
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
BDI INVESTMENT CORPORATION
STATEMENT OF CHANGES IN NET ASSETS
(Unaudited)
Six Months Ended Six Months Ended
---------------- ----------------
December 31, December 31,
1996 1995
------------ ------------
<S> <C> <C>
FROM INVESTMENT ACTIVITIES
Net Investment Income ................ $ 377,000 $ 384,000
Net Realized Gain/(Loss)
on Investments ..................... 2,000 65,000
Net Unrealized Gain/(Loss) on
Investments ........................ 334,000 585,000
------------ ------------
Increase in Net Assets Derived
from Investment Activities ......... 713,000 1,034,000
From Distributions to Shareholders:
One bi-annual $.13 dividend and
one $.0848 per share dividend on
1,421,551 Shares Outstanding ....... (305,000) (423,000)
------------ ------------
NET INCREASE/(DECREASE) IN ASSETS ......... 408,000 611,000
NET ASSETS:
Beginning of Period
(including undistributed net
investment income)................. 13,281,000 12,995,000
------------ ------------
End of Period ........................ 13,689,000 13,606,000
========== ==========
See Note to Financial Statements
</TABLE>
<PAGE>
BDI INVESTMENT CORPORATION
NOTES TO FINANCIAL STATEMENTS
For Six Months Ended December 31, 1996
A. Consolidated Financial Statement:
The statement of assets and liabilities including the schedule of
tax-exempt securities as of December 31, 1996, and the related statements of
operations, changes in new assets, and supplementary information, for the six
months ending December 31, 1996, have been prepared by the Company, without
audit. In the opinion of management, all adjustments (which include only normal
reocurring adjustments) necessary to present fairly the financial position at
December 31, 1996 and all periods presented have been made.
B. General:
On January 10, 1984, BDI Investment Corporation (the "Company")
filed a Registration Statement on Form N-2 with the Securities and Exchange
Commission in order to register under the Investment Company Act of 1940 as a
closed-end diversified management investment company.
C. Summary of Significant Accounting Policies:
Investments:
The investment portfolio consists primarily of tax-exempt bonds
which are valued at the last bid price on the last business day of the quarter.
Income Recognition:
Security transactions are recorded on the trade date. Interest
income is accrued and recorded based upon settlement dates.
Taxes:
The Company has qualified as a Regulated Investment Company under
certain provisions of the Internal Revenue Code beginning with the fiscal year
starting July 1, 1984. Under such provisions, the Company will not be subject to
federal income tax on income which it receives and distributes to its
shareholders, provided that it distributes substantially all such income. As a
Regulated Investment Company, the Company may "pass through" to its shareholders
the character of the income which it receives.
Distributions:
It is the Company's policy to record distributions to shareholders
as of the date they are declared by the Board of Directors.
Fiscal Year:
The Company's fiscal year ends on the Saturday nearest the end of
June.
<PAGE>
BDI INVESTMENT CORPORATION
NOTES TO FINANCIAL STATEMENTS
For Six Months Ended December 31, 1996
D. Directors' Fees:
The Company pays fees and provides expense reimbursement to members
of the Board of Directors who are not officers of the Company.
E. Purchases and Sales of Securities:
For the six months ending December 31, 1996, the aggregate cost of
tax-exempt bond purchases were $239,000 and the aggregate proceeds from sales or
redemptions of tax-exempt bonds were $131,000.
F. Income Taxes:
For the six months ending December 31, 1996, no income tax expense
was incurred due to the Company's qualification as a Regulated Investment
Company and the distribution of substantially all its income for the current
fiscal year to its shareholders (See Note B).
<PAGE>
<TABLE>
<CAPTION>
BDI INVESTMENT CORPORATION
INVESTMENT PORTFOLIO
SCHEDULE OF SECURITIES
December 31, 1996
MARKET
PAR VALUE ISSUER COST VALUE
--------- ------ ---- -----
<S> <C> <C> <C>
100,000 Anaheim CA Water Rev $103,000 $105,000
6.000%, 7/1/03
100,000 Association Bay Area Govt 100,000 100,000
5.625%, 10/1/98
100,000 Association Bay Area Govt 100,000 101,000
5.900%, 10/1/99
255,000 Association Bay Area Govt 253,000 258,000
6.100%, 10/1/00
200,000 Bakersfield CA Pub Fing 200,000 203,000
5.800%, 9/15/06
125,000 Banning, California 119,000 131,000
7.000%, 3/1/20
265,000 Buena Park Redev 263,000 272,000
6.300%, 9/1/99
260,000 Buena Park Redev 258,000 265,000
6.300%, 3/1/99
135,000 Calif Edl Rev-Harvey Mudd College 139,000 142,000
6.050%, 12/1/08
65,000 Calif Edl Rev-Pepperdine Univ 67,000 66,000
6.750%, 1/15/06
100,000 CA HFF Healthcare 100,000 105,000
5.900%, 9/1/02
200,000 CA HFF Healthcare 202,000 212,000
6.000%, 9/1/03
50,000 CA Health Kaiser 54,000 54,000
7.000%, 10/1/99
<PAGE>
<CAPTION>
BDI INVESTMENT CORPORATION
INVESTMENT PORTFOLIO
SCHEDULE OF SECURITIES
December 31, 1996
MARKET
PAR VALUE ISSUER COST VALUE
--------- ------ ---- -----
<S> <C> <C> <C>
$25,000 CA Housing Fin Agy Rev $ 25,000 $ 26,000
6.250%, 2/1/06
135,000 California Special District 139,000 138,000
8.000%, 7/1/98
150,000 CA State Pub Works 149,000 155,000
5.600%, 4/1/06
100,000 CA State Pub Works 101,000 106,000
6.400%, 9/1/08
175,000 California State, Vet. GO 175,000 176,000
7.000%, 4/1/16
425,000 Calif Statewide San Gabriel 417,000 421,000
5.375%, 9/1/07
100,000 Compton, California Cmnty 100,000 108,000
7.700%, 8/1/99
325,000 Compton, California Cmnty 325,000 359,000
7.800%, 8/1/01
100,000 Contra Costa Cnty 100,000 107,000
6.200%, 8/1/08
165,000 Contra Costa Hosp COP 172,000 176,000
6.400%, 11/1/05
100,000 Corona, Calif SFMR 100,000 100,000
5.500%, 11/1/10
250,000 East Muni Wtr & Swr 242,000 246,000
5.375%, 7/1/13
340,000 Eldorado Cal Cmnty 359,000 352,000
7.900%, 6/1/08
<PAGE>
<CAPTION>
BDI INVESTMENT CORPORATION
INVESTMENT PORTFOLIO
SCHEDULE OF SECURITIES
December 31, 1996
MARKET
PAR VALUE ISSUER COST VALUE
--------- ------ ---- -----
<S> <C> <C> <C>
340,000 Emeryville Public Fing 337,000 342,000
5.700%, 9/1/07
50,000 Los Angeles MFHR FHA 51,000 52,000
7.300%, 7/20/11
225,000 Metro Water Dist R.G.O. $192,000 $221,000
5.250%, 3/1/22
500,000 Metro Water Dist Rev 500,000 500,000
5.400%, 7/1/10
50,000 Metro Water Dist Rev 49,000 49,000
5.500%, 7/1/19
600,000 Metro Water Dist Rev 588,000 597,000
5.500%, 7/1/13
350,000 Metro Water Dist Rev 341,000 318,000
5.000%, 7/1/20
150,000 Midpeninsula Reg 150,000 168,000
6.950%, 9/1/08
25,000 Montclair, CA Redv Agy Res 24,000 29,000
7.750%, 10/1/11
70,000 Morgan Hill Redev 70,000 71,000
5.250%, 3/1/98
115,000 N Cal Public Power 111,000 110,000
5.000%, 7/1/09
125,000 Oakland, California Redev. 125,000 139,000
7.400%, 6/1/10
45,000 Palmdale, CA SFMR 43,000 48,000
7.000%, 9/1/11
<PAGE>
<CAPTION>
BDI INVESTMENT CORPORATION
INVESTMENT PORTFOLIO
SCHEDULE OF SECURITIES
December 31, 1996
MARKET
PAR VALUE ISSUER COST VALUE
--------- ------ ---- -----
<S> <C> <C> <C>
600,000 Placer Co Cal Wtr 600,000 609,000
5.500%, 7/1/10
145,000 Pleasanton CA CTFS 153,000 157,000
6.700%, 10/1/06
$335,000 Puerto Rico HFC $346,000 $353,000
7.500%, 4/1/22
290,000 Puerto Rico HFC SF GNMA 302,000 304,000
7.650%, 10/15/22
40,000 Redding CA Sch Sr 36,000 37,000
5.000%, 3/1/19
235,000 Riverside Co CA Asset 235,000 244,000
6.000%, 6/1/04
600,000 Riverside Electric Rev 567,000 564,000
5.000%, 10/1/13
50,000 Sacramento New Pub Hsg 52,000 52,000
6.000%, 12/1/07
190,000 San Clemente, CA Ltd Obl 190,000 197,000
7.900%, 9/1/99
155,000 San Francisco GO 159,000 163,000
6.100%, 6/15/07
100,000 San Francisco Port Comm 98,000 102,000
5.500%, 7/1/04
50,000 San Francisco Pub HSG 50,000 50,000
5.125%, 8/1/10
200,000 San Joaquin Cop Hosp 200,000 207,000
5.900%, 9/1/03
<PAGE>
<CAPTION>
BDI INVESTMENT CORPORATION
INVESTMENT PORTFOLIO
SCHEDULE OF SECURITIES
December 31, 1996
MARKET
PAR VALUE ISSUER COST VALUE
--------- ------ ---- -----
<S> <C> <C> <C>
100,000 San Luis Obisbo Wtr 100,000 102,000
5.375%, 6/1/08
105,000 San Luis Obisbo Wtr 105,000 107,000
5.500%, 6/1/09
$600,000 Santa Maria Redev $581,000 $555,000
5.000%, 6/1/16
85,000 Santa Margarita Water District 85,000 86,000
7.500%, 11/1/11
200,000 Sierra Uni Sch Dist 193,000 198,000
5.650%, 3/1/0
95,000 Sonoma, CA Cmnty Redev 94,000 97,000
7.900%, 8/1/14
250,000 Tahoe Forest Hospital 246,000 261,000
5.850%, 8/1/04
600,000 Tehatchapi School Dist 593,000 594,000
6.300%, 8/1/21
100,000 Temecula Vly CA Uni Sch 102,000 101,000
5.900%, 9/1/04
65,000 Thousand Oaks, CA RDV 66,000 67,000
7.900%, 1/01/16
130,000 University of CA Revs 129,000 133,000
5.875%, 9/1/08
575,000 Vallejo CA Rev FHA 575,000 558,000
5.650%, 5/1/27
335,000 Westminister City COP 335,000 335,000
5.750%, 6/1/09
----------
13,220,000
==========
<PAGE>
<CAPTION>
BDI INVESTMENT CORPORATION
INVESTMENT PORTFOLIO
SCHEDULE OF SECURITIES
December 31, 1996
UNITS ISSUER COST VALUE
----- ------ ---- -----
<S> <C> <C> <C>
24,875 Dean Witter Coldwell Banker 496,000 319,000
Tax Exempt Mortgage Fund
----------- -----------
$13,631,000 $13,680,000
=========== ===========
<PAGE>
<CAPTION>
BDI INVESTMENT CORPORATION
SUPPLEMENTARY INFORMATION
SIX MONTHS ENDED DECEMBER 31, 1996, DECEMBER 31, 1995,
DECEMBER 31, 1994, DECEMBER 31, 1993 AND DECEMBER 31, 1992
Selected date for each share of common stock follows:
1996 1995 1994 1993 1992
---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C>
Investment Income ................. 0.29 0.29 0.28 0.32 0.38
Expenses .......................... 0.02 0.02 0.03 0.03 0.03
Net Investment Income ...... 0.27 0.27 0.26 0.29 0.35
Dividends from net investment
income ......................... (0.21) (0.30) (0.32) (0.33) (0.39)
Distributions in excess of net
investment income .............. 0.05 (0.03) (0.06) (0.04) (0.04)
Net realized gain (loss) and
increase/(decrease) in ......... 0.24 0.46 (0.55) 0.04 0.06
unrealized appreciation
Net increase (decrease) in
net asset value ................ 0.29 0.43 (0.61) 0.00 0.02
Net asset value:
Beginning of period ............ 9.34 9.14 9.03 9.67 9.54
End of period ..................... 9.63 9.57 8.42 9.67 9.56
Ratio of expense to average ....... 0.25% 0.22% 0.30% 0.30% 0.27%
net assests
Ratio of net investment ........... 2.79% 2.85% 2.94% 2.98% 3.66%
income to average net assets
Ratio of total investment
operating expenses to total .... 8.27% 7.25% 9.25% 9.25% 6.94%
investment income
Market price at end of period ..... * * * * *
Portfolio Turnover ................ 1.77% 8.14% 6.63% 13.63% 12.82%
---------
Number of shares outstanding at the end of each period 1,421,551
=========
* Due to the limited market that currently exists for the Company's common
stock, there is is no established market price.
</TABLE>
<PAGE>
BDI INVESTMENT CORPORATION
CORPORATE DATA
Arthur Brody Chairman of the Board of Directors,
Chief Executive Officer, President
and Treasurer
Edward Kane Director
Michael Stolper Director
Donald Brody Secretary
COUNSEL: Lowenstein, Sandler, Kohl,
Fisher and Boylan
AUDITORS: Coopers & Lybrand
TRANSFER AGENT: Registrar & Transfer Co.
CUSTODIAN: Dean Witter
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