<PAGE>
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.
FORM U-3A-2 FILE No. 69-226
------
STATEMENT BY HOLDING COMPANY CLAIMING EXEMPTION UNDER RULE U-3A-2 FROM THE
PROVISIONS OF THE PUBLIC UTILITY HOLDING COMPANY ACT OF 1935
To Be Filed Annually Prior to March 1
CORDILLERA CORPORATION
hereby files with the Securities and Exchange Commission, pursuant to Rule 2,
its statement claiming exemption as a holding company from the provisions of
the Public Utility Holding Company Act of 1935, and submits the following
information:
1. Name, State of organization, location and nature of business of claimant
and every subsidiary thereof, other than any exempt wholesale generator
(EWG) or foreign utility company in which claimant directly or
indirectly holds an interest.
Cordillera Corporation, subsidiaries, and investees (See Schedule 1
attached).
Utah Gas Service Company, a wholly owned subsidiary, is engaged in
transmission, transportation, and distribution of natural gas
exclusively in the State of Utah.
Cordillera Corporation and its remaining subsidiaries are engaged
primarily in real estate investment, development, and management, and
aircraft fixed base operations in Utah and Colorado.
Investees of Cordillera Corporation (more than 10% owned) are engaged in
real estate rental and operation.
2. A brief description of the properties of claimant and each of its
subsidiary public utility companies used for the generation,
transmission and distribution of electric energy for sale, or for the
production, transmission and distribution of natural or manufactured
gas, indicating the location of principal generating plants,
transmission lines, producing fields, gas manufacturing plants, and
electric and gas distribution facilities, including all such properties
which are outside the State in which claimant and its subsidiaries are
organized and all transmission or pipelines which deliver or receive
electric energy or gas to the borders of such State.
Cordillera Corporation and other subsidiaries - NONE
Utah Gas Service Company distributes natural gas in the Uintah, Grand and San
Juan Counties of Utah. The principal distribution points are Vernal, Moab
and Monticello, Utah. Gas is furnished to four industrial customers and
8,550 residential and commercial customers located
<PAGE>
page 2
in the above counties. Transmission lines are as follows:
1) San Juan County, Utah 15 miles 4" Northwest Pipe-line to
Monticello
4 1/2 miles 4" Northwest Pipe-line
to Rio Algom Corp.
2) Grand County, Utah 8 miles 4" Moab Station
to Moab Salt, Inc.
3) Uintah County, Utah & 9 miles 4" Northwest Pipe-
Duchesne County, Utah line to Vernal
8 1/2 miles 4" Vernal Station to
SF Phosphate
53 miles 8" Altonah Gas Plant
Duchesne County, Utah
to Northwest Pipeline,
Uintah County
8 miles 4" line from 8" line
(above) to Vernal
Distribution
13 miles 4" Red Wash Field to
Altonah Pipeline
3. The following information for the last calendar year with respect to
claimant and each of its subsidiary public utility companies:
(a) Number of Kwh. of electric energy sold (at retail or wholesale),
and Mcf. of natural or manufactured gas distributed at retail.
Cordillera Corporation and other subsidiaries - NONE
Utah Gas Service Company - 1,065,494 Mcf @14.73 Psia & 60 F
(b) Number of Kwh. of electric energy and Mcf. of natural or
manufactured gas distributed at retail outside the State in which
each such company is organized.
NONE
(c) Number of Kwh. of electric energy and Mcf. of natural or
manufactured gas sold at wholesale outside the State in which each
such company is organized, or at the State line.
NONE
<PAGE>
Page 3
(d) Number of Kwh. of electric energy and Mcf. of natural or
manufactured gas purchased outside the State in which each such
company is organized or at the State line.
NONE
4. The following information for the reporting period with respect to
claimant and each interest it holds directly or indirectly in a EWG or a
foreign utility company, stating monetary amounts in United States
dollars:
(a) Name, location, business address and description of the facilities
used by the EWG or foreign utility company for the generation,
transmission and distribution of electric energy for sale or for
the distribution at retail of natural or manufactured gas.
NONE
(b) Name of each system company that holds an interest in such EWG or
foreign utility company; and description of the interest held.
NONE
(c) Type and amount of capital invested, directly or indirectly, by the
holding company claiming exemption; any direct or indirect
guarantee of the security of the EWG or foreign utility company by
the holding company claiming exemption; and any debt or other
financial obligation for which there is recourse, directly or
indirectly, to the holding company claiming exemption or another
system company, other than the EWG or foreign utility company.
NONE
(d) Capitalization and earnings of the EWG or foreign utility company
during the reporting period.
NONE
(e) Identify any service, sales or construction contract(s) between the
EWG or foreign utility company and a system company, and describe
the services to be rendered or goods sold and fees or revenues
under such agreement(s).
NONE
<PAGE>
Page 4
EXHIBIT A
A consolidating statement of income and surplus of the claimant and its
subsidiary companies for the last calendar year, together with a
consolidating balance sheet of claimant and its subsidiary companies as of
the close of such calendar year.
Cordillera Corporation and Subsidiaries - Schedules 2, 3 and 4
Investees - more than 10% ownership - Schedule 5
EXHIBIT B
Total-Assets 48,609,304
Total-Operating-Revenues 32,344,535
Net-Income 6,992,186
EXHIBIT C
Not Applicable
- ------------------------------------------------------------------------------
The above-named claimant has caused this statement to be duly executed on its
behalf by its authorized officer on the 27th day of February, 1998.
Cordillera Corporation
----------------------
(Name of Claimant)
By: /s/ Joe Maskalenko
-----------------------
Joe Maskalenko, Controller
/s/Grace A. Price
- -----------------------------
Witness
Name, Title and address of officer to whom notices and correspondence
concerning this statement should be addressed to:
Joe Maskalenko, Controller
Cordillera Corporation
5000 South Quebec Street, Ste 450
Denver, CO 80237
<PAGE>
<TABLE>
<CAPTION>
CORDILLERA CORPORATION DECEMBER 31, 1997 SCHEDULE 1
AND CONSOLIDATED SUBSIDIARIES
<S> <C> <C>
SILVER CLIFF LAND & 5000 SOUTH QUEBEC STREET ,SUITE 450 REAL ESTATE DEVELOPMENT
CATTLE CO (CO CORP) DENVER, COLORADO 80237 84-0643543
COLORADO BARNS CORP 5000 SOUTH QUEBEC STREET ,SUITE 450 REAL ESTATE INVESTMENT
(CO CORP) DENVER, COLORADO 80237 84-0570043
FIRST SURETY CORPORATION 5000 SOUTH QUEBEC STREET ,SUITE 450 INVESTMENT CORPORATION
(CO CORP) DENVER, COLORADO 80237 84-0942103
COLORADO JETCENTER,INC. 1575 AVIATION WAY AIRCRAFT FIXED BASED OPER
(CO CORP) COLORADO SPRINGS, COLORADO 80916 74-1887139
DENVER JETCENTER, INC. 7625 S. PEORIA AIRCRAFT FIXED BASED OPER
(DELAWARE CORP) ENGLEWOOD, COLORADO 80112 84-0856526
SALT LAKE JETCENTER, INC. 369 N. 2370 WEST AIRCRAFT FIXED BASED OPER
(UTAH CORP) SALT LAKE CITY, UTAH 84116 87-0369024
FT. COLLINS-LOVELAND JETCENTER, INC. 4824 EARHART ROAD AIRCRAFT FIXED BASED OPER
(CO CORP) LOVELAND, COLORADO 80538 84-1283948
JETCENTERS, INC. 7625 S. PEORIA INVESTMENT CORPORATION
(CO CORP) ENGLEWOOD, COLORADO 80112 84-1037601
UTAH GAS SERVICE COMPANY 5000 SOUTH QUEBEC STREET ,SUITE 650 NATURAL GAS SUPPLIER
(UTAH CORP) DENVER, COLORADO 80237 87-0229547
CORDILLERA'S VALLEY AT 5000 SOUTH QUEBEC STREET ,SUITE 450 INVESTMENT CORPORATION
TELLURIDE, INC. (CO CORP) DENVER, COLORADO 80237 84-0988659
FIRST CITY INVESTMENT 5000 SOUTH QUEBEC STREET ,SUITE 450 NOMINEE CORPORATION
CORPORATION (CO CORP) DENVER, COLORADO 80237 84-1147923
LAMARTINE CONSOLIDATED 5000 SOUTH QUEBEC STREET ,SUITE 450 NOMINEE CORPORATION
MINES CORP. (CO CORP) DENVER, COLORADO 80237 84-1147927
CORDILLERA INTERNATIONAL 5000 SOUTH QUEBEC STREET ,SUITE 450 INVESTMENT CORPORATION
RESOURCES, INC. (CO CORP) DENVER, COLORADO 80237 83-0280584
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
CORDILLERA CORPORATION DECEMBER 31, 1997 SCHEDULE 1
LIST OF AFFILIATES
<S> <C> <C>
GENESEE PROPERTIES, INC. P.O. BOX 63 REAL ESTATE RENTAL
(WYOMING CORP) BERTHOUD, CO 80513 83-0278113
LINDBERGH PROPERTIES, INC. P.O. BOX 63 REAL ESTATE RENTAL
(WYOMING CORP) BERTHOUD, CO 80513 83-0278120
HOPKINS PROPERTIES, INC. P.O. BOX 63 REAL ESTATE RENTAL
(WYOMING CORP) BERTHOUD, CO 80513 83-0277940
SORRENTO VALLEY REAL ESTATE, INC. P.O. BOX 63 REAL ESTATE RENTAL
(WYOMING CORP) BERTHOUD, CO 80513 83-0278121
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Cordillera Corporation Schedule 2
Consolidating Schedule, Balance Sheet Information
December 31, 1997
Cordillera Utah Gas Fixed Base Other Consolidating Eliminating
Corporatio Service Co. Operations Subsidiaries Dr Cr Dr Cr Consolidated
----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
CURRENT ASSETS:
Cash $ 239,348 $ 88,532 $ 1,531,687 $ 88,173 $ - $ - $ - $ - $ 1,947,740
Receivables: - - - -
Note receivable - current
portion 1,739,012 - - 57,400 - - - 1,746,998 49,414
Accounts receivable -
trade 73,502 1,787,584 1,044,379 303 - - - - 2,905,768
Accounts receivable -
affiliates 102,633 23,286 - 664,312 - - - 752,596 37,635
Allowance for doubtful
accounts - (26,778) (79,098) - - - - - (105,876)
Income taxes receivable 515,000 - - - - - - - 515,000
Other current assets 34,094 146,596 333,630 4,770 - - - - 519,090
---------------------------------------------------------------------------------------------------
2,703,589 2,019,220 2,830,598 814,958 - - - 2,499,594 5,868,771
---------------------------------------------------------------------------------------------------
LONG-TERM NOTES RECEIVABLE:
Trade - - 720,517 40,150 - - - - 760,667
Affiliates 659,124 - - 8,204,545 - - - 8,492,163 371,506
---------------------------------------------------------------------------------------------------
659,124 - 720,517 8,244,695 - - - 8,492,163 1,132,173
---------------------------------------------------------------------------------------------------
INVESTMENTS:
Securities 10,371,699 - - 10,092,168 - - - - 20,463,867
Land held for investment 3,532,807 - - 741,093 - - - - 4,273,900
Other - - 661,328 - - - - - 661,328
Subsidiaries 23,356,658 - - - - - - 23,356,658 -
---------------------------------------------------------------------------------------------------
37,261,164 - 661,328 10,833,261 - - - 23,356,658 25,399,095
---------------------------------------------------------------------------------------------------
PROPERTY AND EQUIPMENT:
Utility plant in service - 12,935,792 - - - 1,053,877 - - 11,881,915
Subdivided real estate - - - 64,776 - - - - 64,776
Proved oil and gas properties
- full cost 2,237,131 - - - - - - - 2,237,131
Leasehold improvements - - 8,677,455 - 142,156 - - - 8,819,611
Other property and equipment 383,978 - 1,937,583 - - - - - 2,321,561
Less accumulated depreciation,
depletion and amortization (2,305,504) (7,209,424) (3,306,818) (1,000) 1,053,877 60,423 - - (11,829,292)
---------------------------------------------------------------------------------------------------
315,605 5,726,368 7,308,220 63,776 1,196,033 1,114,300 - - 13,495,702
---------------------------------------------------------------------------------------------------
OTHER ASSETS:
Goodwill, net of amortization 428,380 - - - - - - - 428,380
Prepaid lease costs - - 2,218,932 - - - - - 2,218,932
Other assets 26,407 1,364 38,480 - - - - - 66,251
---------------------------------------------------------------------------------------------------
454,787 1,364 2,257,412 - - - - - 2,713,563
---------------------------------------------------------------------------------------------------
$41,394,269 $ 7,746,952 $13,778,075 $19,956,690 $1,196,033 $1,114,300 $ - $34,348,415 $48,609,304
----------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Cordillera Corporation Schedule 2
Consolidating Schedule, Balance Sheet Information
December 31, 1997
Cordillera Utah Gas Fixed Base Other Consolidating Eliminating
Corporation Service Co. Operations Subsidiaries Dr Cr Dr Cr Consolidated
---------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
CURRENT LIABILITIES:
Current portion of long-term
debt $ 802,922 $ 8,583 $ 3,061,434 $ 150,000 $ - $ - $ 1,746,998 $ - $ 2,275,941
Trade accounts payable 39,578 652,826 444,607 342 - - - - 1,137,353
Accounts payable - affiliates 740,905 4,557 41,680 42,047 - - 752,596 - 76,593
Revenues subject to refund - 247,997 - - - - - - 247,997
Current income taxes payable 552,180 (379,098) 45,314 143,352 - - - - 361,748
Other current liabilities 427,351 601,167 633,222 4,689 - - - - 1,666,429
---------------------------------------------------------------------------------------------------
2,562,936 1,136,032 4,226,257 340,430 - - 2,499,594 - 5,766,061
---------------------------------------------------------------------------------------------------
LONG-TERM LIABILITIES & CREDITS:
Long-term debt 18,760,295 1,714,768 3,937,665 287,617 - - 8,492,163 - 16,208,182
Deferred income taxes 1,375,808 462,220 1,224,671 3,838,301 - - - - 6,901,000
Investment tax and other
deferred credits - 165,793 - - - - - - 165,793
Regulatory obligation - 353,540 - - - - - - 353,540
Other 121,762 - - - - - - - 121,762
---------------------------------------------------------------------------------------------------
20,257,865 2,696,321 5,162,336 4,125,918 - - 8,492,163 - 23,750,277
---------------------------------------------------------------------------------------------------
MINORITY INTERESTS - - - - - - - 519,499 519,499
---------------------------------------------------------------------------------------------------
STOCKHOLDERS' EQUITY:
Common stock 56 145,600 3,767,000 4,099,389 - - 8,011,989 - 56
Capital in excess of par value - - 470,890 3,988,264 - - 4,459,154 - -
Retained earnings (deficit) 14,112,890 2,923,830 (381,246) 3,781,989 55,684 142,156 10,885,516 2,369,334 11,581,226
519,497 92,970
Current Earnings (Loss) 4,460,522 845,169 532,838 3,620,700 4,739 - (808,773) (3,271,077) 6,992,186
---------------------------------------------------------------------------------------------------
18,573,468 3,914,599 4,389,482 15,490,342 60,423 142,156 23,067,383 (808,773) 18,573,467
Treasury stock, at cost - - - - - - - - -
---------------------------------------------------------------------------------------------------
18,573,46 3,914,599 4,389,482 15,490,342 60,423 142,156 23,067,383 (808,773) 18,573,467
---------------------------------------------------------------------------------------------------
$41,394,269 $7,746,952 $13,778,075 $19,956,690 $60,423 $142,156 $34,059,140 $ (289,274) $48,609,304
----------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Cordillera Corporation Schedule 2
Consolidating Income Statements
December 31, 1997
Cordillera Utah Gas Fixed Base Other Consolidating Eliminating
Corporation Service Co. Operations Subsidiaries Dr Cr Dr Cr Consolidated
-------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
REVENUES:
Natural gas utility operations
and oil and gas production $ 23,756 $6,528,341 $ - $ - $ - $ - $ - $ - $ 6,552,097
Aircraft fixed base operations - - 15,976,081 - - - - - 15,976,081
Real estate sales and operations 269,919 - - 32,250 - - - - 302,169
Equity in income of affiliate 1,692,381 - - 2,778,000 - - - - 4,470,381
Other, including management fees 2,571,091 393,682 792,492 2,095,315 - - 808,773 - 5,043,807
-------------------------------------------------------------------------------------------------
4,557,147 6,922,023 16,768,573 4,905,565 - - 808,773 - 32,344,535
-------------------------------------------------------------------------------------------------
COSTS AND EXPENSES:
Natural gas utility operations
and oil and gas production 55,629 3,048,572 - - - - - - 3,104,201
Aircraft fixed base operations - - 7,858,826 - - - - - 7,858,826
Real estate sales and operations 33,868 - - 11,706 - - - - 45,574
Salaries and wages 352,494 1,079,997 2,628,020 - - - - - 4,060,511
General and administrative
expenses 1,052,970 905,811 4,122,661 10,631 - - - 59,759 6,032,314
Interest expense 1,588,313 196,544 729,845 47,199 - - - 749,015 1,812,886
Depreciation, depletion
and amortization 86,540 372,150 753,608 240 4,739 - - - 1,217,277
-------------------------------------------------------------------------------------------------
3,169,814 5,603,074 16,092,960 69,776 4,739 - - 808,773 24,131,590
-------------------------------------------------------------------------------------------------
Income (loss) before taxes
and minority interests 1,387,333 1,318,949 675,613 4,835,789 (4,739) - 808,773 (808,773) 8,212,945
Earnings of consolidated
subsidiaries 2,369,334 - - - - - - (2,369,334) -
Minority interests - - - - - - - (92,970) (92,970)
Tax (expense) benefit 703,855 (473,780) (142,775) (1,215,089) - - - - (1,127,789)
-------------------------------------------------------------------------------------------------
NET INCOME (LOSS) $4,460,522 $ 845,169 $ 532,838 $ 3,620,700 $(4,739) $ - $808,773 $(3,271,077) $ 6,992,186
-------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Aircraft Fixed Base Operations Schedule 3
Consolidating Schedule, Balance Sheet Information
December 31, 1997
Denver Salt Lake Fort-Collins Colorado Eliminating
jetCenters, Inc. jetCenter jetCenter jetCenter jetCenter Dr Cr Consolidated
------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
CURRENT ASSETS:
Cash $ 12,329 $ 1,162,504 $ 111,803 $ 16,984 $ 228,067 - - $ 1,531,687
Receivables: - -
Note receivable -
current portion 2,661,895 - - - - - (2,661,895) -
Accounts receivable -
trade - 540,481 167,219 50,037 286,642 - - 1,044,379
Accounts receivable -
affiliates 70,206 1,797 - - - - (72,003) -
Less allowance for
doubtful accounts - (52,042) (8,402) (2,416) (16,238) - (79,098)
Income taxes receivable - - - - - - - -
Other current assets 786 146,092 61,786 24,510 100,457 - (1) 333,630
------------------------------------------------------------------------------------------------------
2,745,216 1,798,832 332,406 89,115 598,928 - (2,733,899) 2,830,598
------------------------------------------------------------------------------------------------------
LONG-TERM NOTES
RECEIVABLE:
Trade - - - - 720,517 - - 720,517
Affiliates - - - - - - - -
------------------------------------------------------------------------------------------------------
- - - - 720,517 - - 720,517
------------------------------------------------------------------------------------------------------
INVESTMENTS:
Securities - - - - - - - -
Land held for investment - - - - - - - -
Other - 661,328 - - - - - 661,328
Subsidiaries 1,627,438 - - - - - (1,627,438) -
------------------------------------------------------------------------------------------------------
1,627,438 661,328 - - - - (1,627,438) 661,328
------------------------------------------------------------------------------------------------------
PROPERTY AND EQUIPMENT:
Utility plant in service - - - - - - - -
Subdivided real estate - - - - - - - -
Proved oil and gas
properties- full cost - - - - - - - -
Leasehold improvements - 6,166,343 1,498,518 169,919 1,176,732 - (334,057) 8,677,455
Other property and
equipment 82,257 966,412 442,223 171,528 1,157,598 - (882,435) 1,937,583
Less accumulated
depreciation,
depletion and
amortization (49,659) (2,350,612) (937,959) (145,312) (1,039,770) - 1,216,494 (3,306,818)
------------------------------------------------------------------------------------------------------
32,598 4,782,143 1,002,782 196,135 1,294,560 - 2 7,308,220
------------------------------------------------------------------------------------------------------
OTHER ASSETS:
Goodwill, net of
amortization - - - - - - - -
Prepaid lease costs - 2,218,932 - - - - - 2,218,932
Other assets - 35,710 - 2,770 - - - 38,480
------------------------------------------------------------------------------------------------------
- 2,254,642 - 2,770 - - - 2,257,412
------------------------------------------------------------------------------------------------------
$4,405,252 $ 9,496,945 $1,335,188 $ 288,020 $ 2,614,005 $ - $(4,361,335) $13,778,075
------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Aircraft Fixed Base Operations Schedule 3
Consolidating Schedule, Balance Sheet Information
December 31, 1997
Denver Salt Lake Fort-Collins Colorado Eliminating
jetCenters, Inc. jetCenter jetCenter jetCenter jetCenter Dr Cr Consolidated
-----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
CURRENT LIABILITIES:
Current portion of long-term debt $1,553,285 $1,288,786 $ 2,056,168 $ 618,186 $ 206,904 $(2,661,895) $ - $3,061,434
Trade accounts payable 5,363 211,478 72,881 17,073 137,812 - - 444,607
Accounts payable - affiliates 41,893 218 54,251 16,359 961 (72,002) - 41,680
Revenues subject to refund - - - - - - - -
Income taxes payable 684 143,228 (53,897) (75,792) 31,091 - - 45,314
Other current liabilities 40,198 361,660 81,813 34,676 114,875 - - 633,222
-----------------------------------------------------------------------------------------------
1,641,423 2,005,370 2,211,216 610,502 491,643 (2,733,897) - 4,226,257
-----------------------------------------------------------------------------------------------
LONG-TERM LIABILITIES & CREDITS:
Long-term debt - 3,416,256 29,337 - 492,072 - - 3,937,665
Deferred income taxes (266) 1,215,541 (666) 5,161 4,901 - - 1,224,671
Investment tax and other
deferred credits - - - - - - - -
Regulatory obligation - - - - - - - -
Other - - - - - - - -
-----------------------------------------------------------------------------------------------
(266) 4,631,797 28,671 5,161 496,973 - - 5,162,336
-----------------------------------------------------------------------------------------------
MINORITY INTERESTS - - - - - - - -
-----------------------------------------------------------------------------------------------
STOCKHOLDERS' EQUITY:
Common stock 3,717,000 100 25,000 100 50,000 (25,200) - 3,767,000
Capital in excess of par value 470,890 3,840,890 323,115 - - (4,164,005) - 470,890
Retained earnings (deficit) (1,868,096) (1,620,913) (1,132,693) (251,504) 1,486,853 - 3,005,107 (381,246)
Current Earnings (Loss) 444,301 639,701 (120,121) (76,239) 88,536 (443,340) - 532,838
-----------------------------------------------------------------------------------------------
2,764,095 2,859,778 (904,699) (327,643) 1,625,389 (4,632,545) 3,005,107 4,389,482
Treasury stock, at cost - - - - - - - -
-----------------------------------------------------------------------------------------------
2,764,095 2,859,778 (904,699) (327,643) 1,625,389 (4,632,545) 3,005,107 4,389,482
-----------------------------------------------------------------------------------------------
$4,405,252 $9,496,945 $ 1,335,188 $ 288,020 $2,614,005 $(7,366,442) $3,005,107 $13,778,075
-----------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Aircraft Fixed Base Operations Schedule 3
Consolidating Income Statement
For the year ended December 31, 1997
Denver Salt Lake Fort-Collins Colorado Eliminating
jetCenters, Inc. jetCenter jetCenter jetCenter jetCenter Dr Cr Consolidated
-----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
REVENUES:
Natural gas utility operations
and oil and gas production $ - $ - $ - $ - $ - $ - $ - $ -
Aircraft fixed base operations - 8,749,745 2,391,752 831,376 4,003,208 - - 15,976,081
Real estate sales and operations - - - - - - - -
Equity in income of affiliate - - - - - - - -
Other, including management fees 659,474 61,481 11,293 (120) 60,364 - - 792,492
---------------------------------------------------------------------------------------------
659,474 8,811,226 2,403,045 831,256 4,063,572 - - 16,768,573
---------------------------------------------------------------------------------------------
COSTS AND EXPENSES:
Natural gas utility operations
and oil and gas production - - - - - - - -
Aircraft fixed base operations - 4,536,225 1,374,879 455,841 1,491,881 - - 7,858,826
Real estate sales and operations - - - - - - - -
Salaries and wages 299,484 885,349 387,595 203,482 852,110 - - 2,628,020
General and administrative
expenses 171,782 2,005,414 507,328 223,618 1,214,519 - - 4,122,661
Interest expense 175,792 213,110 215,496 60,895 64,552 - - 729,845
Depreciation, depletion -
and amortization 10,488 302,638 102,547 42,563 295,372 - - 753,608
---------------------------------------------------------------------------------------------
657,546 7,942,736 2,587,845 986,399 3,918,434 - - 16,092,960
---------------------------------------------------------------------------------------------
Income (loss) before taxes
and minority interests 1,928 868,490 (184,800) (155,143) 145,138 - 675,613
Earnings of consolidated
subsidiaries 443,340 - - - - - (443,340) -
Minority interests - - - - - - - -
Tax (expense) benefit (967) (228,789) 64,679 78,904 (56,602) - - (142,775)
---------------------------------------------------------------------------------------------
NET INCOME (LOSS) $444,301 $ 639,701 $ (120,121) $ (76,239) $ 88,536 $ - $(443,340) $ 532,838
---------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Small Subsidiaries Schedule 4
Consolidating Schedule, Balance Sheet Information
December 31, 1997
Cordillera's
Silver Cliff Colorado First Surety Valley at Cordillera Eliminating
Land & Cattle Barns Corp Corporation Telluride Int'l Resource Dr Cr Consolidated
-----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
CURRENT ASSETS:
Cash $ 27,931 $20,209 $ 35,995 $ 2,286 $ 1,752 $ - $ - $ 88,173
Receivables: - -
Note receivable - current
portion 13,687 - 33,713 10,000 - - - 57,400
Accounts receivable - trade 303 - - - - - - 303
Accounts receivable -
affiliates - 40,184 247,291 376,837 - - 664,312
Less allowance for doubtful
accounts - - - - - - - -
Income taxes receivable - - - - - - - -
Other current assets 4,770 - - - - - - 4,770
--------------------------------------------------------------------------------------------
Total current assets 46,691 20,209 109,892 259,577 378,589 - - 814,958
--------------------------------------------------------------------------------------------
LONG-TERM NOTES RECEIVABLE:
Trade 40,150 - - - - - - 40,150
Affiliates - - 1,950,236 2,556,030 3,698,279 - - 8,204,545
--------------------------------------------------------------------------------------------
40,150 - 1,950,236 2,556,030 3,698,279 - - 8,244,695
--------------------------------------------------------------------------------------------
INVESTMENTS:
Securities - - - - 10,092,168 - - 10,092,168
Land held for investment 741,093 - - - - - - 741,093
Other - - - - - - - -
Subsidiaries - - - - - - - -
--------------------------------------------------------------------------------------------
741,093 - - - 10,092,168 - - 10,833,261
--------------------------------------------------------------------------------------------
PROPERTY AND EQUIPMENT:
Utility plant in service - - - - - - - -
Subdivided real estate 64,776 - - - - - - 64,776
Proved oil and gas
properties- full cost - - - - - - - -
Leasehold improvements - - - - - - - -
Other property and equipment - - - - - - - -
Less accumulated depreciation, -
depletion and amortization (1,000) - - - - - - (1,000)
--------------------------------------------------------------------------------------------
63,776 - - - - - - 63,776
--------------------------------------------------------------------------------------------
OTHER ASSETS:
Goodwill, net of amortization - - - - - - - -
Prepaid lease costs - - - - - - - -
Other assets - - - - - - - -
--------------------------------------------------------------------------------------------
- - - - - - - -
--------------------------------------------------------------------------------------------
$891,710 $20,209 $2,060,128 $2,815,607 $14,169,036 $ - $ - $19,956,690
--------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Small Subsidiaries Schedule 4
Consolidating Schedule, Balance Sheet Information
December 31, 1997
Cordillera's
Silvercliff Colorado First Surety Valley at Cordillera Eliminating
Land & Cattle Barns Corp Corporation Telluride Int'l Resource Dr Cr Consolidated
-----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
CURRENT LIABILITIES:
Current portion of long-term debt $ - $ - $ - $ 150,000 $ - $ - $ - $ 150,000
Trade accounts payable 11 331 - - - - - 342
Accounts payable - affiliates - - - 42,047 - - - 42,047
Revenues subject to refund - - - - - - - -
Current income taxes payable 110,418 - - 15,621 17,313 - - 143,352
Other current liabilities 1,995 2,694 - - - - - 4,689
--------------------------------------------------------------------------------------------
112,424 3,025 - 207,668 17,313 - - 340,430
--------------------------------------------------------------------------------------------
LONG-TERM LIABILITIES & CREDITS:
Long-term debt - - - 287,617 - - - 287,617
Deferred income taxes 74,122 - - - 3,764,179 - - 3,838,301
Investment tax and other
deferred credits - - - - - - - -
Regulatory obligation - - - - - - - -
Other - - - - - - - -
--------------------------------------------------------------------------------------------
74,122 - - 287,617 3,764,179 - - 4,125,918
--------------------------------------------------------------------------------------------
MINORITY INTERESTS - - - - - - - -
--------------------------------------------------------------------------------------------
STOCKHOLDERS' EQUITY:
Common stock 101 10 10 100 4,099,168 - - 4,099,389
Capital in excess of par value 300,000 - 2,687,943 819,900 180,421 - - 3,988,264
Retained earnings (deficit) 406,836 7,558 (2,238,147) 1,357,130 4,248,612 - - 3,781,989
Current Earnings (Loss) (1,773) 9,616 1,610,322 143,192 1,859,343 - - 3,620,700
--------------------------------------------------------------------------------------------
705,164 17,184 2,060,128 2,320,322 10,387,544 - - 15,490,342
Treasury stock, at cost - - - - - - - -
--------------------------------------------------------------------------------------------
705,164 17,184 2,060,128 2,320,322 10,387,544 - - 15,490,342
--------------------------------------------------------------------------------------------
$891,710 $ 20,209 $2,060,128 $2,815,607 $14,169,036 $ - $ - $19,956,690
--------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Small Subsidiaries Schedule 4
Consolidating Income Statement
For the year ended December 31, 1997
Cordillera's
Silvercliff Colorado First Surety Valley at Cordillera Eliminating
Land & Cattle Barns Corp Corporation Telluride Int'l Resource Dr Cr Consolidated
--------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
REVENUES:
Natural gas utility operations
and oil and gas production $ - $ - $ - $ - $ - $ - $ - $ -
Aircraft fixed base operations - - - - - - - -
Real estate sales and operations 7,185 25,065 - - - - - 32,250
Equity in income of affiliate - - - - 2,778,000 - - 2,778,000
Other, including management fees 7,797 - 1,629,375 269,900 188,243 - - 2,095,315
------------------------------------------------------------------------------------------
14,982 25,065 1,629,375 269,900 2,966,243 - - 4,905,565
------------------------------------------------------------------------------------------
COSTS AND EXPENSES:
Natural gas utility operations
and oil and gas production - - - - - - - -
Aircraft fixed base operations - - - - - - - -
Real estate sales and operations 750 10,956 - - - - - 11,706
General and Administrative expenses 9,685 624 116 91 115 - - 10,631
Interest expense - - - 47,199 - - - 47,199
Depreciation, depletion and
amortization 240 - - - - - - 240
------------------------------------------------------------------------------------------
10,675 11,580 116 47,290 115 - - 69,776
------------------------------------------------------------------------------------------
Income (loss) before taxes
and minority interests 4,307 13,485 1,629,259 222,610 2,966,128 - - 4,835,789
Earnings of consolidated subsidiaries - - - - - - - -
Minority interests - - - - - - - -
Tax (expense) benefit (6,080) (3,869) (18,937) (79,418) (1,106,785) - - (1,215,089)
------------------------------------------------------------------------------------------
NET INCOME (LOSS) $(1,773) $ 9,616 $1,610,322 $143,192 $ 1,859,343 $ - $ - $ 3,620,700
------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
GENESEE PROPERTIES, INC. Schedule 5
Balance Sheet
December 31
<TABLE>
<CAPTION>
ASSETS
------
1997 1996
------------- -------------
<S> <C> <C>
Current Assets:
Cash $ 47,829 $ 100,206
Taxes receivable 19,037 35,883
Accrued interest - 10,650
Accrued interest - affiliates 14,122 14,122
Current portion of note receivable - 170,868
Deferred income tax asset 260,000 190,000
------------- -------------
Total current assets 340,988 521,729
------------- -------------
Property, at cost
Land 9,800,000 9,800,000
Buildings 26,097,460 26,097,460
Less accumulated depreciation (14,013,496) (12,770,760)
------------- -------------
Net property 21,883,964 23,126,700
------------- -------------
Other assets:
Notes receivable 1,479,000 2,499,913
Investments 3,726,625 3,615,542
Net loan costs 72,312 118,284
------------- -------------
5,277,937 6,233,739
------------- -------------
Total assets $27,502,889 $29,882,168
------------- -------------
------------- -------------
</TABLE>
(Continued)
<PAGE>
<TABLE>
<CAPTION>
GENESEE PROPERTIES, INC. Schedule 5
Balance Sheet
(Continued)
December 31
LIABILITIES AND STOCKHOLDERS' EQUITY
------------------------------------
1997 1996
----------- -----------
<S> <C> <C>
Current liabilities:
Accounts payable $ 6,963 $ 6,217
Accrued interest payable 59,200 72,987
Income taxes payable - 33,753
Other accrued liabilities 3,805 3,826
----------- -----------
Total current liabilities 69,968 116,783
----------- -----------
Long-term debt 11,100,000 15,050,000
----------- -----------
Other liabilities and deferred credits:
Security deposits 339,320 339,320
Deferred income taxes 1,088,264 833,134
----------- -----------
Total other liabilities and deferred credits 1,427,584 1,172,454
----------- -----------
Commitments and contingencies
Stockholders' equity:
Preferred stock 7,955,000 7,955,000
Common stock 22,100 22,100
Capital in excess of par value 29,000 29,000
Retained earnings 6,899,237 5,536,831
----------- -----------
Total stockholders' equity 14,905,337 13,542,931
----------- -----------
Total liabilities and stockholders' equity $27,502,889 $29,882,168
----------- -----------
----------- -----------
</TABLE>
<PAGE>
GENESEE PROPERTIES, INC. Schedule 5
Statement of Operations
For the years ended December 31, 1997 and 1996
<TABLE>
<CAPTION>
1997 1996
---------- ----------
<S> <C> <C>
Revenues:
Rental income $4,988,372 $4,890,562
Interest income 264,828 234,383
---------- ----------
Total revenues 5,253,200 5,124,945
---------- ----------
Expenses:
Support easements 100,390 98,422
Consulting expense 400,000 400,000
Interest expense 1,107,296 1,270,217
Depreciation and amortization 1,313,708 1,313,708
Miscellaneous expenses 107,759 94,804
---------- ----------
Total expense 3,029,153 3,177,151
---------- ----------
Income before income taxes 2,224,047 1,947,794
Provision for income taxes (861,640) (667,590)
---------- ----------
Net income $1,362,407 $1,280,204
---------- ----------
---------- ----------
</TABLE>
<PAGE>
HOPKINS PROPERTIES, INC. Schedule 5
Balance Sheet
December 31
<TABLE>
<CAPTION>
ASSETS
------
1997 1996
---------- ----------
<S> <C> <C>
Current Assets:
Cash $ 134,997 $ 149,817
Taxes receivable 2,050 -
---------- ----------
Total current assets 137,047 149,817
---------- ----------
Investments in affiliates 9,352,000 9,352,000
---------- ----------
Property and equipment, at cost:
Land 200,000 200,000
Buildings 652,021 652,021
Less accumulated depreciation (350,102) (319,054)
---------- ----------
Net property 501,919 532,967
---------- ----------
Other assets 55 55
---------- ----------
Total assets $9,991,021 $10,034,839
---------- ----------
---------- ----------
(Continued)
</TABLE>
<PAGE>
HOPKINS PROPERTIES, INC. Schedule 5
Balance Sheet
(Continued)
December 31
<TABLE>
<CAPTION>
LIABILITIES AND STOCKHOLDERS' EQUITY
------------------------------------
1997 1996
----------- -----------
<S> <C> <C>
Current liabilities:
Income tax payable $ 89 $ 33,614
----------- -----------
Total current liabilities 89 33,614
----------- -----------
Other liabilities and deferred credits:
Security deposits 7,777 7,777
Deferred income taxes 12,717 10,227
----------- -----------
Total other liabilities and deferred credits 20,494 18,004
----------- -----------
Commitments and contingencies
Stockholders' equity:
Preferred stock 10,000,000 10,000,000
Common stock 22,100 22,100
Capital in excess of par value 29,000 29,000
Accumulated deficit (80,662) (67,879)
----------- -----------
Total stockholders' equity 9,970,438 9,983,221
----------- -----------
Total liabilities and stockholders' equity $ 9,991,021 $10,034,839
----------- -----------
----------- -----------
</TABLE>
<PAGE>
HOPKINS PROPERTIES, INC. Schedule 5
Statement of Operations
For the years ended December 31, 1997 and 1996
<TABLE>
<CAPTION>
1997 1996
--------- ---------
<S> <C> <C>
Revenues:
Rental income $114,337 $112,096
Other - 636,400
--------- ---------
Total revenues 114,337 748,496
--------- ---------
Expenses:
Consulting expense 90,000 90,000
Accounting expense 2,700 2,755
Depreciation and amortization 31,048 31,048
Miscellaneous expenses 35 35
--------- ---------
Total expense 123,783 123,838
--------- ---------
Income (loss) before income taxes (9,446) 624,658
Provision for income taxes (3,337) (62,835)
--------- ---------
Net income (loss) $(12,783) $561,823
--------- ---------
--------- ---------
</TABLE>
<PAGE>
LINDBERGH PROPERTIES, INC. Schedule 5
Balance Sheet
December 31
<TABLE>
<CAPTION>
1997 1996
---------- ----------
<S> <C> <C>
Current Assets:
Cash $ 15,463 $ 9,494
Taxes receivable 1,563 -
---------- ----------
Total current assets 17,026 9,494
---------- ----------
Property, at cost:
Land 2,010,991 2,010,991
---------- ----------
Total assets $2,028,017 $2,020,485
---------- ----------
---------- ----------
Current Liabilities:
Income taxes payable $ 55 $ 1,395
---------- ----------
Total current liabilities 55 1,395
---------- ----------
Long term debt 1,865,000 1,895,000
---------- ----------
Commitments and contingencies
Stockholders' equity:
Preferred stock - -
Common stock 22,100 22,100
Capital in excess of par value 29,000 29,000
Retained earnings 111,862 72,990
---------- ----------
Total stockholders' equity 162,962 124,090
---------- ----------
Total liabilities and stockholders' equity $2,028,017 $2,020,485
---------- ----------
---------- ----------
</TABLE>
<PAGE>
LINDBERGH PROPERTIES, INC. Schedule 5
Statement of Operations
For the years ended December 31, 1997 and 1996
<TABLE>
<CAPTION>
1997 1996
-------- --------
<S> <C> <C>
Revenues:
Rental income $159,091 $155,972
-------- --------
Expenses:
Consulting expense 10,000 10,000
Accounting expense 2,500 2,755
Interest expense 85,210 87,439
Miscellaneous expenses 35 35
-------- --------
Total expense 97,745 100,229
-------- --------
Income before income taxes 61,346 55,743
Provision for income taxes (22,474) (20,753)
-------- --------
Net income $38,872 $34,990
-------- --------
-------- --------
</TABLE>
<PAGE>
SORRENTO VALLEY REAL ESTATE, INC. Schedule 5
Balance Sheet
December 31
<TABLE>
<CAPTION>
ASSETS
------
1997 1996
---------- ----------
<S> <C> <C>
Current Assets:
Cash $ 141,815 $ 119,337
---------- ----------
Total current assets 141,815 119,337
---------- ----------
Property, at cost:
Buildings 806,822 806,822
Less accumulated depreciation (433,236) (394,816)
---------- ----------
Net property 373,586 412,006
---------- ----------
Other assets:
Note receivable 1,000,000 1,000,000
Other 68 68
---------- ----------
1,000,068 1,000,068
---------- ----------
Total assets $1,515,469 $1,531,411
---------- ----------
---------- ----------
(Continued)
</TABLE>
<PAGE>
SORRENTO VALLEY REAL ESTATE, INC. Schedule 5
Balance Sheet
(Continued)
December 31
<TABLE>
<CAPTION>
LIABILITIES AND STOCKHOLDERS' EQUITY
1997 1996
---------- ----------
<S> <C> <C>
Current liabilities:
Income taxes payable $ 142 $ 4,377
---------- ---------
Total current liabilities 142 4,377
---------- ---------
Other liabilities and deferred credits:
Security deposits 19,569 19,569
Deferred income taxes 17,155 21,145
---------- ---------
Total other liabilities and deferred credits 36,724 40,714
---------- ---------
Commitments
Stockholders' equity:
Preferred stock 1,397,000 1,397,000
Common stock 22,100 22,100
Capital in excess of par value 29,000 29,000
Retained earnings 30,503 38,220
---------- ---------
Total stockholders' equity 1,478,603 1,486,320
---------- ---------
Total liabilities and stockholders' equity $1,515,469 $1,531,411
---------- ---------
---------- ---------
</TABLE>
<PAGE>
SORRENTO VALLEY REAL ESTATE, INC. Schedule 5
Statement of Operations
For the years ended December 31, 1997 and 1996
<TABLE>
<CAPTION>
1997 1996
---------- ---------
<S> <C> <C>
Revenues:
Rental income $207,592 $203,522
Interest income 45,300 45,424
---------- ---------
Total revenue 252,892 248,946
---------- ---------
Expenses:
Support easements 58,701 57,550
Consulting expense 160,000 160,000
Accounting expense 2,500 2,565
Depreciation and amortization 38,420 38,420
Miscellaneous expenses 35 36
---------- ---------
Total expense 259,656 258,571
---------- ---------
Loss before income taxes (6,764) (9,625)
Provision for income taxes (953) 336
---------- ---------
Net loss $ (7,717) $ (9,289)
---------- ---------
---------- ---------
</TABLE>
