<PAGE>
- --------------------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
---------
FORM 10-K
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
---------
For the fiscal year ended December 31, 1995. Commission File Number 0-9231
ALASKA NORTHWEST PROPERTIES INC.
(Exact name of registrant as specified in its charter)
ALASKA 92-0035034
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
23830 PACIFIC HIGHWAY S. SUITE 300 #3, SEATTLE, WA 98032
(Address of principal executive offices)
Registrant's telephone number, including area code: (206) 433-0730
Securities registered pursuant to Section 12(b) of the Act:
Title of Each Class Name of Exchange on Which Registered
- ------------------- ------------------------------------
None None
Securities registered pursuant to Section 12(g) of the Act:
Common Stock (par value $1.00 each)
- --------------------------------------------------------------------------------
(Title of Class)
As of March 4, 1996, common shares outstanding totaled 29,087. The
aggregate market value of the common stock held by nonaffiliates, 9,733 shares,
was approximately $2,238,590 (based on average bid-ask price of these shares,
$230.00).
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days.
Yes X No
------ ------
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 this Form 10-K or any
amendment to this Form 10-K. [X]
Document incorporated by reference: Definitive Proxy Statement relating
to the 1996 Annual Meeting of Shareholders shall be incorporated by reference in
Part III hereof.
- --------------------------------------------------------------------------------
<PAGE>
PART I
ITEM 1. BUSINESS
HISTORICAL DEVELOPMENT
Alaska Northwest Properties Inc. (the Company) was originally incorporated under
the laws of the State of Alaska as Golden Nugget Motel, Inc. In 1972, it became
a wholly owned subsidiary of Alaska Airlines, Inc. (Alaska Airlines). The name
of the Company was changed to Alaska Northwest Properties Inc. in 1978, and a
number of non-airline properties were transferred to the Company by its parent.
On August 14, 1979, the Company was spun off from Alaska Airlines, and in
January 1980, the shares of ANPI were registered and distributed to the
shareholders of Alaska Airlines.
CURRENT OPERATIONS
The principal business of the Company is real estate investment and operations.
The Company holds for investment purposes several parcels of undeveloped land in
the vicinity of Fairbanks, Alaska, as well as Spieden Island, a 500 acre island
in San Juan County, Washington. The primary operating properties include a
facility building at the Fairbanks International Airport, a condominium unit in
Honolulu, Hawaii, and lodging facilities on Spieden Island.
PLAN OF OPERATION
In addition to its normal day-to-day operations, the Company will continue its
attempts to sell its real estate holdings profitably and to secure and protect
the interests of the Company, with emphasis on the collection of notes
receivable, and management of operating properties. It will continue to
consider offers to sell its existing properties, and to look for opportunities
to acquire additional properties that will provide attractive long-term
investment returns. The Company has historically realized gains from the sale
of its real estate investments, which include several undeveloped parcels held
as long-term investments in, or around, Fairbanks, Alaska.
An example of the Company's continuing efforts to improve the value of its real
estate long-term investment returns include the 1995 sale of a portion of a
large parcel of commercial property in Fairbanks, Alaska to the State of Alaska
Department of Transportation (DOT) for a pre-tax gain of $29,544. The sale of
the 14,000 square-foot plot should eventually enhance the value of the remaining
acreage by allowing the DOT to provide a right-of-way access to an adjacent
highway.
Also, the Company will continue to engage in short-term investment activities,
including U.S. Government obligations, stocks, options, futures, and precious
metals.
EMPLOYEES
At December 31, 1995, the Company had eight employees, none of which were
represented by labor unions.
2
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ITEM 2. PROPERTIES
OPERATING PROPERTIES
The Company has operating properties in the states of Alaska, Washington and
Hawaii. In Fairbanks, Alaska, the Company owns a facility building at the
Fairbanks International Airport. The airport facility is located on land leased
until 2004. The facility is currently subleased to one major tenant, Northern
Air Cargo, Inc. In San Juan County, Washington, the Company operates lodging
facilities on Spieden Island, a largely undeveloped 500 acre island owned by the
Company. In Honolulu, Hawaii, the Company holds one condominium unit. The
condominium is subject to a land lease, with the lease to be renegotiated in
1997. This property produces rental income and is also held for appreciation
potential.
Lease income from Northern Air Cargo Inc. has accounted for 32%, 32%, and 21% of
total revenue for 1995, 1994, and 1993, respectively.
LAND HELD FOR INVESTMENT
The Company holds undeveloped land for investment in the states of Alaska and
Washington. In and around Fairbanks, Alaska, the Company owns five non-
contiguous parcels aggregating 49 acres and 44 lots in six subdivisions. In San
Juan County, Washington, the Company owns Spieden Island, a largely undeveloped
500 acre island.
ITEM 3. LEGAL PROCEEDINGS
There is no litigation pending or, to the knowledge of the Company, threatened,
to which the property of the Company is subject, or to which the Company may be
party, which could have a material adverse affect on the Company.
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
Not Applicable.
3
<PAGE>
PART II
ITEM 5. MARKET FOR THE REGISTRANT'S COMMON STOCK AND RELATED SECURITY HOLDER
MATTERS
The Company's common stock is traded in the over-the-counter market under the
NASDAQ symbol "ANWP." The following table indicates high and low bid prices of
the Common Stock:
<TABLE>
<CAPTION>
1995 1994
----------------------------- -------------------------------
<S> <C> <C> <C> <C>
High Bid Low Bid High Bid Low Bid
First Quarter $229.00 $214.00 $180.00 $170.00
Second Quarter 235.50 231.00 186.00 175.00
Third Quarter 235.00 219.00 175.00 170.00
Fourth Quarter 242.00 233.00 175.00 170.00
</TABLE>
The high and low prices for each quarter are the high and low bids as reported
by certain market makers, which are those quoted by dealers to each other,
exclusive of markups, markdowns or commissions, and do not necessarily represent
actual transactions.
As of December 31, 1995, there were 29,087 shares of common stock issued and
outstanding. The number of stockholders of record at December 31, 1995, was
724. The Company decided that it was not in the best interest of its
shareholders to disburse dividends in 1995 and 1994 and does not anticipate the
payment of dividends in 1996.
4
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ITEM 6. FIVE YEAR SUMMARY OF SELECTED FINANCIAL DATA
The following selected financial data should be read in conjunction with the
financial statements and related notes and "Management's Discussion and Analysis
of Financial Condition and Results of Operations" included elsewhere herein.
<TABLE>
<CAPTION>
Summary of Operations 1995 1994 1993 1992 1991
- -------------------------------- ------------- ------------- ------------- ------------- ------------
<S> <C> <C> <C> <C> <C>
Revenues $323,619 $326,253 $407,589 $553,205 $523,355
Expenses (619,698) (712,045) (792,645) (917,756) (754,045)
------------- ------------- ------------- ------------- ------------
Net Loss from Operations (296,079) (385,792) (385,056) (364,551) (230,690)
Other Income (Expense)
Gain on Sale of Real Estate(1) 509,298 58,633 18,888 25,000 (3,173)
Net Realized and Unrealized
Gain (Loss) on Investments(2) (311,409) 3,163 170,753 (29,751) (60,031)
------------- ------------- ------------- ------------- ------------
Net Loss (98,190) $(323,996) $(195,415) $(369,302) $(293,894)
------------- ------------- ------------- ------------- ------------
------------- ------------- ------------- ------------- ------------
Net Loss per Share $(3.39) $(11.28) $(6.83) $(13.01) $(10.36)
Book Value per Share 323.49 328.55 340.04 350.22 363.74
Cash Dividends per Share 0.00 0.00 1.00 2.00 2.00
Total Assets $9,754,270 $9,699,213 $10,012,914 $10,252,446 $10,637,313
Notes Payable 111,706 160,813 226,094 228,881 262,384
Shareholders' Equity 9,381,203 9,437,973 9,735,989 9,943,150 10,316,006
</TABLE>
- --------------------------------
(1) As more fully described in Note 2 to financial statements, includes $424,402
recognized in 1995 relating to a 1993 sale of real estate from which a portion
of consideration received included buyer notes receivable.
(2) As more fully described in Note 5 to financial statements, includes
approximately $319,000 of net realized and unrealized losses recognized in 1995
relating to derivative financial instruments.
5
<PAGE>
ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS
FINANCIAL CONDITION
REAL ESTATE AND NOTE COLLECTION ACTIVITIES: As a result of continued additional
investment on the part of the buyer of a 37 room motel in Fairbanks, Alaska, to
whom the Company sold the property in 1993 and from whom the Company has a note
receivable, the Company recognized the remaining deferred gain of $424,402 under
the full accrual method of accounting for real estate sales during the fourth
quarter of 1995. Until the debtor's investment represented a substantial
initial and continuing investment, the Company recognized revenue on the
installment method in amounts of $43,166, $11,503, and $72,240 in 1995, 1994 and
1993, respectively.
Also during 1995, a portion (one of three apartment buildings) of the collateral
securing a 9% note receivable, was destroyed in a fire in Fairbanks, Alaska.
The debtor received an initial insurance disbursement of $50,000 and applied
half of the proceeds to the mortgage, as required by the Company, in an
agreement dated September 8, 1995. Subsequent to December 31, 1995, the Company
reached an agreement with the debtor on an additional allocation of insurance
proceeds in the amount of $337,667. Under an agreement dated February 23, 1996,
the debtor applied $262,667 to the mortgage on the note receivable, while
retaining the remaining $75,000 for improvements to the remaining collateral.
PRIOR YEAR REAL ESTATE AND NOTE COLLECTION ACTIVITIES: During 1994, the lease
expired between the Company and Westmark Hotels Inc., the tenant in the 37-room
motel in Fairbanks, Alaska. The motel was previously repossessed and resold in
1993, as explained below. The Golden Nugget Hotel (formerly Pacific Cove
Corporation) assumed full control of the building at the termination of the
lease on April 1, 1994.
On March 31, 1993, the lease between the debtor on the $1,275,153 note and the
lessee of the collateral property, Westmark Hotels, Inc., expired and was not
extended. Subsequently, the debtor declared bankruptcy and relinquished the
collateral securing the note. The Company subsequently executed a lease with
Westmark Hotels which expired March 31, 1994, as described above. The
collateral had a $531,751 net carrying value (before the repossession) due to a
$743,402 deferred gain. The Company did not incur any losses as a result of the
repossession as the fair market value of the collateral was in excess of the
carrying value.
On December 30, 1993, the Company sold the 37-room motel for the price of
$1,144,755. The terms of the sale included a $150,000 cash down payment, a
$820,490, 7.5% note receivable, and a $174,265, 3% note receivable, which
mirrors the terms of the Company's note payable with the Small Business
Administration. The Company incurred selling costs of $60,747 in connection with
the sale. The initial payment of interest and principal commenced on June 1,
1994. The $551,311 gain on sale was recognized on the installment basis in
accordance with FAS 66. Interest began occurring on the $820,490 note
receivable on April, 1, 1994, the day the debtor assumed full control of the
building.
6
<PAGE>
An apartment building in Fairbanks, that was repossessed on June 10, 1992, was
sold on April 20, 1993. The terms of the sale included a $50,000 down payment
and a $716,040, 8% note receivable that is performing according to the
agreement. This transaction, which resulted in a deferred gain of $102,872 at
December 31, 1993, provided for a four month delay in the commencement of
interest and principal payments on the note. In exchange, the debtor made
substantial capital improvements to the collateral in the approximate amount of
$83,900, which has strengthened the buyer's ability to keep the note current and
increased the value of the property. The transaction is accounted for under the
cost recovery method in accordance with FAS 66, which requires the deferral of
gain and interest income until total payments received exceed the carrying value
of the property.
RESULTS OF OPERATIONS
The Company has reported net losses over the past 5 years. This is primarily
due to the carrying costs on the Company's real estate portfolio held for
long term appreciation. The rental income on operating properties, investment
income, and sales of appreciated properties have and are expected to continue
to provide the liquidity to meet the Company's long term objectives.
REAL ESTATE AND NOTE COLLECTION ACTIVITIES:
The Company recognized a net loss in 1995 of $98,190 compared to a net loss of
$323,996 for 1994. Total revenues, combined with gains on sales of real
estate, increased over the past year to $832,917 in 1995 from $384,886 in 1994,
primarily as a result of the 1995 gain recognition of $442,402 on the December
30, 1993, sale of a motel in Fairbanks, Alaska. Interest income in
1995 increased by $20,092 over 1994 due to an increase in the prime interest
rate affecting various notes receivable. Operating expenses decreased 6%,
primarily due to a decrease in property taxes and depreciable assets. In 1995,
the Company had gains of $41,730 on the cash sales of three residential lots and
a portion of a commercial lot in Fairbanks, Alaska. There were no real estate
sales in 1994.
The Company recognized a net loss of $323,996 for 1994 compared to a net loss of
$195,415 for the prior year. Total revenues, combined with gains on real
estate sales, decreased to $384,886 in 1994 from $426,477 in 1993. Although the
net difference in total revenue is only 10%, its components reflect significant
changes between the two years, primarily related to the prior year's sales of
various operating properties in Fairbanks, Alaska and the increase in interest
income on the notes receivable related to the sales. Rental income decreased to
$227,839 in 1994 from $330,304 in 1993, a 31% reduction. Conversely, interest
income increased 43% to $68,684 in 1994 from $47,849 in 1993. Operating
expenses continued to decline, falling to $402,759 in 1994 from $495,441 in
1993, representing a 19% change. This is a result of a decrease in maintenance
costs related to the sale of the apartments.
INVESTMENT ACTIVITIES:
During the years ended December 31, 1995 and 1994, the Company recorded net
realized and unrealized losses from its commodities and financial instrument
investment activities of approximately $311,000 and $3,000, respectively.
During the year ended December 31, 1993, the Company recorded a net realized and
unrealized gain of approximately $171,000. The primary
7
<PAGE>
reasons for fluctuations in investment activities' results relate to changes in
the underlying value of investment securities and, commencing in late 1994, an
increase in amounts invested.
Prior to 1995, the Company had maintained an investment position in physical
holdings of precious metals. During 1995, the Company sold its physical
holdings and, in all material respects, replaced such investment position by
entering into precious metals futures and options contracts. Additionally,
commencing in late 1994, the Company established a trading position in stock
index futures and options contracts. The Company's futures and futures options
contracts are relatively short-term, generally 6 months to less than 2 years.
At December 31, 1995, contract amounts of unsettled futures options contracts
approximated $900,000 and $1.5 million relating to precious metals and stock
index derivatives, respectively.
The Company's investment portfolio includes financial instruments which have
off-balance-sheet risk. These financial instruments include options written and
futures contracts that involve, to varying degrees, elements of credit and
market rate risk in excess of the amount recognized in the financial statements.
These contracts were entered into for the potential investment return to the
Company. The Company controls the credit and market risk of its futures and
option contracts through credit approvals, limits, and monitoring procedures.
LIQUIDITY AND CAPITAL RESOURCES
Management anticipates that the current level of available liquidity is adequate
to satisfy its known future working capital and capital expenditure
requirements. The Company has no commitments other than normal operating costs
which would require the use of capital resources. The Company met its liquidity
requirements from investing, financing, and operating activities in 1995 as
outlined below:
OPERATIONS: As presented in more detail in the accompanying statements of cash
flows, cash used by operating activities was $103,568 in 1995 as compared to
$147,627 in 1994. The Company incurred a net loss of $98,190 in 1995, which
included non-cash charges for depreciation of $140,831 and realized and
unrealized investment losses of $311,409 and non-cash gain recognition on real
estate sales of $509,298.
INVESTING: Net cash provided by investing activities totaled $236,422. Cash
was generated from the purchase and sale of other assets in the amount of
$116,904, which includes the net difference in the purchase and sale of
commodities, futures and option contracts. Other sources of investment cash
included the sale of land held for investment in the amount of $82,292 and
proceeds from the disposal of assets of $15,396. Uses of funds included
$47,557 from purchases of Government Securities, net of maturities and
addition of property and equipment of $43,653.
EFFECT OF RECENTLY ISSUED ACCOUNTING STANDARDS
Recently issued accounting standards having relevant applicability to the
Company consist primarily of Statement of Financial Accounting Standards No. 121
("SFAS No. 121"), which establishes accounting standards for, among other
things, the impairment of long-lived assets and
8
<PAGE>
certain identifiable intangibles and Statement of Financial Accounting Standard
No. 123 ("SFAS No. 123"), which establishes standards for accounting for stock-
based compensation. SFAS No. 121 will be effective for financial statements
having fiscal years beginning after December 15, 1995, and is not expected to
have a significant effect, if any, on the Company's financial condition or
results of operation. SFAS No. 123 will be effective for financial statements
for fiscal years beginning after December 15, 1995, and required pro forma
disclosures will be included in such statements. It is not expected that the
Company will adopt the "fair value based method" of accounting for stock
options, which is encouraged by SFAS No. 123, but rather will continue to
account for such, utilizing the "intrinsic value based method" as is allowed by
that statement.
ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
Index to Financial Statements:
Financial Statements Page
- --------------------------------------------- -----------
Reports of Independent Certified Public Accountants 11-12
Balance Sheets 13
Statements of Operations 14
Statements of Shareholders' Equity 15
Statements of Cash Flows 16
Notes to Financial Statements 17-25
Financial Statement Schedules
- ---------------------------------------------
Financial Statement Schedule information is presented in the Financial
Statements.
ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND
FINANCIAL DISCLOSURE.
As reported in the Company's report on Form 8-K dated August 31, 1995, the
Company changed it's independent accountants.
PART III
ITEMS 10, 11, 12 AND 13 are incorporated herein by reference to the registrant's
definitive proxy statement for its June 10, 1996, Annual Meeting of Shareholders
(to be filed within 120 days after the end of the last fiscal year).
9
<PAGE>
PART IV
ITEM 14. FINANCIAL STATEMENT SCHEDULES, AND REPORTS ON FORM 8-K.
(a) See Item 8 of this annual report on Form 10-K.
(b) Not Applicable.
10
<PAGE>
REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS
To the Board of Directors and Shareholders of
Alaska Northwest Properties Inc.
We have audited the accompanying balance sheet of Alaska Northwest Properties
Inc. (the Company) as of December 31, 1995 and the related statements of
operations, stockholders' equity and cash flows for the year then ended. These
financial statements are the responsibility of the Company's management. Our
responsibility is to express an opinion on these financial statements based on
our audit.
We conducted our audit in accordance with generally accepted auditing standards.
Those standards require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audit provides a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the financial position of Alaska Northwest Properties
Inc. at December 31, 1995, and the results of its operations and its cash flows
for the year then ended in conformity with generally accepted accounting
principles.
BDO Seidman, LLP
Seattle, Washington
February 15, 1996
11
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REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS
Board of Directors and Shareholders
Alaska Northwest Properties Inc.
Seattle, Washington
We have audited the accompanying balance sheet of Alaska Northwest Properties
Inc. as of December 31, 1994 and the related statements of operations, cash
flows, and shareholders' equity, for each of the years in the two-year period
ended December 31, 1994. These financial statements are the responsibility of
the company's management. Our responsibility is to express an opinion on these
financial statements based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the financial position of Alaska Northwest Properties
Inc. as of December 31, 1994, and the results of its operations and its cash
flows for each of the years in the two-period ended December 31, 1994 in
conformity with generally accepted accounting principles.
Clark Nuber P.S.
Certified Public Accountants
Bellevue, Washington
February 10,1995
12
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ALASKA NORTHWEST PROPERTIES INC.
BALANCE SHEETS
AS OF DECEMBER 31, 1995 AND 1994
<TABLE>
<CAPTION>
ASSETS 1995 1994
- --------------------------------------------------------------------------------
<S> <C> <C>
OPERATING PROPERTY AND EQUIPMENT, at cost:
Land and land improvements $ 393,158 $ 393,158
Buildings 1,317,666 1,292,175
Furniture, fixtures and equipment 195,310 244,822
Leasehold costs and other 218,351 218,351
----------- -----------
2,124,485 2,148,506
Less accumulated depreciation and amortization (1,311,338) (1,284,806)
----------- -----------
813,147 863,700
LAND HELD FOR INVESTMENT, at cost
(Net of accumulated amortization of $523,391
and $461,369, respectively) 7,014,947 7,126,530
NOTES RECEIVABLE (net of deferred gain of
$247,440 and $654,183, respectively) 1,368,120 1,065,418
CASH AND CASH EQUIVALENTS 147,819 111,214
RESTRICTED CASH (Note 5) 88,110
U.S. GOVERNMENT SECURITIES (Note 5) 217,960 170,403
OTHER ASSETS 104,167 91,856
INVESTMENTS IN COMMODITIES 0 270,092
----------- -----------
TOTAL ASSETS $9,754,270 $9,699,213
----------- -----------
----------- -----------
LIABILITIES AND SHAREHOLDERS' EQUITY
- --------------------------------------------------------------------------------
NOTES PAYABLE $ 111,706 $ 160,813
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES 58,322 69,338
LIABILITY FOR UNSETTLED FUTURES AND
OPTION CONTRACTS (Note 5) 203,039 31,089
----------- -----------
TOTAL LIABILITIES 373,067 261,240
----------- -----------
COMMITMENTS (Note 5, 8, & 9)
SHAREHOLDERS' EQUITY:
Common stock $1.00 par value, authorized
50,000 shares, issued 47,641 476,409 476,409
Capital in excess of par value 14,755,812 14,755,812
Treasury stock, at cost (Note 8)
(1995 - 18,554 shares; 1994 - 18,798
shares) (5,005,117) (5,046,537)
Accumulated deficit (845,901) (747,711)
----------- -----------
TOTAL SHAREHOLDERS' EQUITY 9,381,203 9,437,973
----------- -----------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $9,754,270 $9,699,213
----------- -----------
----------- -----------
</TABLE>
The accompanying notes are an integral part of these financial statements.
13
<PAGE>
ALASKA NORTHWEST PROPERTIES INC.
STATEMENTS OF OPERATIONS
FOR THE YEARS ENDED DECEMBER 31, 1995, 1994, AND 1993
<TABLE>
<CAPTION>
1995 1994 1993
---------- ---------- ----------
<S> <C> <C> <C>
REVENUES
Interest Income $88,776 $68,684 $47,849
Building and Land Rents 223,757 227,839 330,304
Other Income 11,086 29,730 29,436
---------- ---------- ----------
323,619 326,253 407,589
---------- ---------- ----------
EXPENSES
Operating Expenses 376,114 402,759 495,441
General & Adminstrative Expenses 238,352 302,115 278,338
Interest Expense 5,232 7,171 18,866
---------- ---------- ----------
619,698 712,045 792,645
---------- ---------- ----------
OTHER INCOME (EXPENSE)
Gain on real estate (Note 2) 509,298 58,633 18,888
Gain (loss) on sale of investments (Note 5) (225,110) 163,042 (4,149)
Increase (decrease) in unrealized appreciation
(depreciation) on investments (Note 5) (86,299) (159,879) 174,902
---------- ---------- ----------
197,889 61,796 189,641
---------- ---------- ----------
NET LOSS $(98,190) $(323,996) $(195,415)
---------- ---------- ----------
---------- ---------- ----------
AVERAGE SHARES OUTSTANDING 29,000 28,726 28,632
---------- ---------- ----------
---------- ---------- ----------
NET LOSS PER COMMON SHARE: $(3.39) $(11.28) $(6.83)
---------- ---------- ----------
---------- ---------- ----------
</TABLE>
The accompanying notes are an integral part of these financial statements.
14
<PAGE>
ALASKA NORTHWEST PROPERTIES INC.
STATEMENT OF SHAREHOLDERS' EQUITY
FOR THE YEARS ENDED DECEMBER 31, 1995, 1994, AND 1993
<TABLE>
<CAPTION>
Common Stock
--------------------------------------------------
Capital in
$1.00 Par Excess of Treasury Retained
Value Par Value Stock Earnings
---------- ----------- ------------ -----------
<S> <C> <C> <C> <C>
BALANCES AT
DECEMBER 31, 1992 $476,409 $14,755,812 $(5,087,516) $(199,705)
Net loss (195,415)
Treasury shares:
Purchased (44,101)
Sold 59,100
Dividends Paid @ $1 per share (28,595)
---------- ----------- ------------ -----------
BALANCES AT
DECEMBER 31, 1993 476,409 14,755,812 (5,072,517) (423,715)
Net loss (323,996)
Treasury shares:
Purchased (2,520)
Sold 28,500
---------- ----------- ------------ -----------
BALANCES AT
DECEMBER 31, 1994 476,409 14,755,812 (5,046,537) (747,711)
Net loss (98,190)
Treasury shares:
Purchased (1,080)
Sold 42,500
----------- ----------- ------------ -----------
BALANCES AT
DECEMBER 31, 1995 $476,409 $14,755,812 $(5,005,117) $(845,901)
----------- ----------- ------------ -----------
</TABLE>
The accompanying notes are an integral part of these financial statements.
15
<PAGE>
ALASKA NORTHWEST PROPERTIES INC.
STATEMENTS OF CASH FLOWS
FOR THE YEARS ENDED DECEMBER 31, 1995, 1994, AND 1993
<TABLE>
<CAPTION>
1995 1994 1993
---------- ---------- ----------
<S> <C> <C> <C>
Cash flows from operating activities:
Net loss $(98,190) $(323,996) $(195,415)
Adjustments to reconcile net loss to cash
used in operating activities:
Depreciation and amortization 140,831 161,808 184,537
Gain on sale of real estate (509,298) (58,633) (18,888)
(Gain) loss on sale of investments 225,110 (163,042) 4,149
Increase (decrease) in unrealized depreciation
(appreciation) on investments 86,299 159,879 (174,902)
Increase in restricted cash (88,110)
Increase in deferred interest income 60,826 58,633 25,109
Other (9,146) 17,724 63,676
---------- ---------- ----------
Net cash used in operating activites (191,678) (147,627) (111,734)
---------- ---------- ----------
Cash flows from investing activities:
Proceeds from disposal of assets 15,396 150 372,791
Collection of notes receivable 113,040 54,311 7,684
Maturing U.S. Government securities 364,456 270,289 167,650
Acquisition of U.S. Government securities (412,013) (317,548) (241,539)
Addition to property and equipment (43,653) (6,205) (78,464)
Sale of land held for investment 82,292 0 0
Sale (Purchase) of other assets - net 116,904 98,948 (103,390)
---------- ---------- ----------
Net cash provided by investing activities 236,422 99,945 124,732
---------- ---------- ----------
Cash flows from financing activities:
Treasury stock sales and purchases 40,968 25,908 14,172
Increase in long term debt 0 0 24,000
Decrease in long term debt (49,107) (65,281) (26,787)
Dividends paid 0 0 (28,595)
---------- ---------- ----------
Net cash used in financing activities (8,139) (39,373) (17,210)
---------- ---------- ----------
Net increase (decrease) in cash and cash
equivalents 36,605 (87,055) (4,212)
Cash and cash equivalents:
Beginning of period 111,214 198,269 202,482
---------- ---------- ----------
End of period $147,819 $111,214 $198,270
---------- ---------- ----------
---------- ---------- ----------
</TABLE>
The accompanying notes are an integral part of these financial statements.
16
<PAGE>
ALASKA NORTHWEST PROPERTIES INC.
NOTES TO FINANCIAL STATEMENTS
NOTE 1 - DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT
ACCOUNTING POLICIES
OPERATIONS: The principal business of the Company is real estate
investment and operations. The Company holds for investment purposes several
parcels of undeveloped land in the vicinity of Fairbanks, Alaska, as well as
Spieden Island, a 500 acre island in San Juan County, Washington. The primary
operating properties include a facility building at the Fairbanks International
Airport, a condominium unit in Honolulu, Hawaii, and lodging facilities on
Spieden Island.
ACCOUNTING ESTIMATES: The preparation of financial statements in conformity
with generally accepted accounting principles (GAAP) 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 reported period.
OPERATING PROPERTY AND DEPRECIATION: Operating property and equipment
acquired through purchase is carried at cost. Operating property and equipment
are depreciated by the straight-line method over the estimated useful lives of
the assets as follows:
Buildings 25-40 years
Furniture, fixtures & equipment 5-15 years
Leasehold costs and other 5-20 years
Land improvements 15 years
LAND HELD FOR INVESTMENT: Interest on debt and real estate taxes
related to land held for investment are charged to expense as incurred. Land
held for investment includes land and under-water breakwater improvements that
are amortized by the straight-line method over the estimated useful lives of the
improvements. Land Held for Investment purchased is carried at cost or if
acquired through foreclosure or repossession is carried at the lower of
management's estimate of fair market value less estimated selling costs or the
carrying value of the investment at the date of acquisition.
CASH AND CASH EQUIVALENTS: The Company considered all highly liquid
investments with an initial maturity of three months or less at the date of
purchase to be cash equivalents.
INVESTMENTS AND OTHER ASSETS: Investments and other assets (including
futures and options contracts) primarily represent trading securities, which
are reported in the balance sheet at fair value at the reporting date utilizing
quoted market prices. Realized gains and losses are recognized during the
period in which sales occur or futures and options contracts closed.
Unrealized gains and losses are recognized and reported in the statements of
operations as increase (decrease) in unrealized appreciation or (depreciation)
during the period in which the changes in market value occur.
17
<PAGE>
INCOME TAXES: Income taxes, when material, are provided regardless of
the period when such taxes will be paid in accordance with Financial Accounting
Standards Board Statement No. 109 "Accounting for Income Taxes."
TREASURY STOCK: Treasury stock is accounted for under the cost method.
COMMON SHARES OUTSTANDING AND LOSS PER COMMON SHARE: Loss per common
share data has been computed based upon the average number of shares of common
stock outstanding during the period. Stock options did not impact loss per
share as they were antidilutive.
INCOME RECOGNITION: Income from sales of real estate properties and
land held for investment is generally recorded when the buyer's financial
commitment is sufficient to provide economic substance to the transaction, and
when other criteria of Financial Accounting Standards Statement No. 66
"Accounting for Sales of Real Estate" (FAS 66) are satisfied. Interest on each
note is recognized in income as it accrues during the period it is outstanding
with the exception of interest income on notes receivable for real estate
transactions accounted for on the cost recovery method. However, if an
uncertainty exists about the collectibility of a note, the Company may establish
a reserve for uncollected interest earned and recognize income only when cash is
received. The Company may also establish a reserve for doubtful accounts on
notes receivable based on management's evaluation of the recoverability of the
note. The evaluation of recoverability is made through comparison of the
carrying value of the asset with its estimated net realizable value. See Note
2.
FINANCIAL STATEMENT PRESENTATION: Certain reclassifications have been
made to prior years' financial statements to conform to the current format.
EFFECT OF RECENTLY ISSUED ACCOUNTING STANDARDS: Recently issued
accounting standards having relevant applicability to the Company consist
primarily of Statement of Financial Accounting Standards No. 121 ("SFAS No.
121"), which establishes accounting standards for, among other things, the
impairment of long-lived assets and certain identifiable intangibles and
Statement of Financial Accounting Standard No. 123 ("SFAS No. 123"), which
establishes standards for accounting for stock-based compensation. SFAS No. 121
will be effective for financial statements having fiscal years beginning after
December 15, 1995, and is not expected to have a significant effect, if any, on
the Company's financial condition or results of operation. SFAS No. 123 will be
effective for financial statements for fiscal years beginning after December 15,
1995, and required pro forma disclosures will be included in such statements.
It is not expected that the Company will adopt the "fair value based method" of
accounting for stock options, which is encouraged by SFAS No. 123, but rather
will continue to account for such, utilizing the "intrinsic value based method"
as is allowed by that statement.
NOTE 2 - OPERATING PROPERTY AND LAND HELD FOR INVESTMENT
The Company had three operating properties at December 31, 1995 and 1994. The
properties consist of a commercial facility at the Fairbanks Airport in the
State of Alaska, a condominium in the State of Hawaii, and lodging facilities on
Spieden Island in the San Juan Islands, Washington. Each property was acquired
by purchase and is carried at cost less accumulated depreciation. There are no
material mortgages, liens or encumbrances against these properties and no
proposed
18
<PAGE>
programs for significant renovation or improvement at this time. The properties
are covered under a comprehensive insurance policy. The properties are held for
operating as well as investment purposes. The Fairbanks Airport building is
leased to a single tenant as disclosed in Notes 4 and 9. The Hawaii condominium
is leased on an annual, biannual, and month-to-month basis, while the island
facilities are leased on a month-to-month and daily basis.
During 1995, the Company had no purchases or repossessions of operating
properties or land held for investment, and had land held for investment cash
sales of three residential lots and a portion of a commercial lot in Fairbanks,
Alaska, for a total pretax gain of $41,730.
In 1994, the Company had no purchases, repossessions or sales of operating
properties or land held for investment.
During 1993, the Company sold two properties that were previously acquired by
repossession through the foreclosure process. The significant details of the
two properties are as follows:
TANANA VILLAGE APARTMENTS (TVA): This property has been sold,
repossessed and resold twice (repossessed and resold in 1986, repossessed in
1992 and resold in 1993). In 1986, this 36 unit apartment building was sold for
$735,000. In June 1992, the Company repossessed TVA, which secured a $680,000,
9.5% promissory note and another related $68,299, 13% note. The Company
accounted for the repossessed properties by recording the basis in the property
at the remaining balance outstanding on the notes receivable, plus accrued
interest receivable, net of deferred gains. The $613,643 net carrying value of
the notes was lower than management's estimate of the fair market value less
estimated selling costs as demonstrated by the subsequent resale described
below. Tanana Village Apartments was resold on April 20, 1993, for $752,000.
The terms of the sale included a $50,000 cash down payment and a $716,040 note
receivable, adjusted annually to the prime rate plus 2% (See Note 3). Included
in the note balance was $14,040 of delayed interest for the four months before
the first payment date on August 20, 1993. Selling and other costs of $46,921
were incurred leaving a gain of $102,872 that was deferred in accordance with
FAS 66 under the cost recovery method. Interest income is also deferred under
the cost recovery method until the debtor's commitment exceeds the Company's
cost basis at the date of sale. Deferred interest income totaled $60,826,
$58,633, and $25,109 in 1995, 1994 and 1993, respectively,
GOLDEN NUGGET MOTEL: This 37 room motel was sold in 1978 for
$1,420,000. In June 1993, the Company repossessed the motel, which was
collateral for a note receivable, with a remaining balance of $1,268,947. The
carrying value of the note, net of deferred gain of $743,404 was $531,972. The
property was recorded at the net carrying value of the note as the amount was
lower than the market value less estimated selling costs as demonstrated by the
subsequent resale described below. The motel was resold on December 30, 1993,
for $1,144,755. The terms of the sale include a $150,000 cash down payment, a
$820,490, 7.5% note receivable and a $174,265, 3% note receivable matching the
terms of an underlying note payable with the SBA (See Note 6). Selling costs of
$60,747 were incurred leaving a $551,311 gain that was deferred at the time of
the 1993 sale under the installment method in accordance with FAS 66.
During 1995, 1994, and 1993, the Company recognized $43,166, $11,503 and
$72,240, respectively, of gains on the sale of real estate under the installment
method in accordance with FAS 66. As a result of the debtor's continued
additional investment, to such extent that there
19
<PAGE>
exists a substantial initial and continuing investment, the Company recognized
the remaining deferred gain of $424,402 under the full accrual method in
accordance with FAS 66 in 1995.
NOTE 3 - NOTES RECEIVABLE
At December 31, 1995 and 1994, long-term, non-recourse notes receivable from
sales of real estate and other properties consisted of the following:
<TABLE>
<CAPTION>
1995 1994
------- -------
<S> <C> <C>
7.5% note receivable with monthly
installments of $6,610 beginning
6-1-94 until paid in full, secured
by a second mortgage on a motel
and restaurant in the State of Alaska. $793,325 $813,248
9% note receivable (adjusted annually
to the prime rate plus 2%) with
monthly installments of $5,800 until
paid in full. Secured by a building
in the State of Alaska. 673,896 707,606
3% note receivable with variable
monthly installments. The note
receivable terms match the Note
Payable to the SBA in Note 6. 87,985 135,023
8.5% note receivable with monthly
installments of $543 until paid in
full. Secured by a duplex in the
State of Alaska. 60,355 63,724
------ ------
1,615,561 1,719,601
Less deferred gain and deferred interest income (247,441) (654,183)
-------- --------
Total $1,368,120 $1,065,418
---------- ----------
---------- ----------
</TABLE>
Principal payments on the above are expected as follows for the next five years:
<TABLE>
<S> <C>
1996 $ 75,266
1997 71,111
1998 34,480
1999 745,178
2000 15,078
Thereafter 674,448
-------
$1,615,561
----------
----------
</TABLE>
Subsequent to December 31, 1995, the debtor on the 9% note receivable agreed to
apply $262,667 in insurance proceeds to the outstanding balance on the note. In
addition, the Company
20
<PAGE>
agreed to release the portion of the collateral that was damaged to the debtor
and reduce the related monthly payment from $5,800 to $3,365. This payment is
not reflected in the five year summary above.
NOTE 4 - CONCENTRATION OF CREDIT RISK AND MAJOR CUSTOMERS
Financial instruments that potentially subject the Company to concentration of
credit risk consist primarily of notes receivable secured by real estate from
debtors in the Fairbanks, Alaska region. It is the Company's policy to require
collateral sufficient to provide for full realization of a note receivable's net
carrying value in any transactions where a note is accepted as consideration.
The Company's exposure in the event of nonperformance of the debtors is
represented by the contractual amount of these notes.
The Company has considered the effect of the general downturn in economic
activity in Fairbanks, Alaska over the past decade and the effect on individual
debtors and collateral value of properties securing notes receivable. The
primary impact of the economic conditions has been a decreased demand for vacant
lots and other commercial properties. This decreased demand indirectly affects
note receivable collection activities as the debtors are frequently involved in
enterprises affected by these market factors. Management has specifically
evaluated the value of the underlying collateral and credit history of
individual debtors for each note and has determined that no allowance for
doubtful accounts is necessary based upon the sufficiency of the collateral and
credit information about each debtor.
During both 1995 and 1994, approximately 95% of total interest income, including
amounts deferred under the cost recovery method of accounting was received from
two debtors. During both 1995 and 1994, one major tenant of the Fairbanks
Airport operating property accounted for 46% of rent income (see
Note 9).
NOTE 5 - FUTURES, OPTIONS, AND OTHER ASSETS
The Company's investment portfolio includes financial instruments which have
off-balance-sheet risk. These financial instruments include options written and
futures contracts which involve, to varying degrees, elements of credit and
market risk in excess of the amount recognized in the financial statements.
These contracts were entered into for the potential investment return to the
Company. The Company controls the credit and market risk of its futures and
option contracts through credit approvals, limits, and monitoring procedures.
The Company maintains trading positions in precious metals and stock index
derivative financial instruments that are comprised of futures and futures
options contracts. Futures contracts are forward-based contracts to make or
take delivery of a specified financial instrument or commodity at a specified
future date or during a specified period. The risk associated with futures
contracts arises from the market movements in the underlying commodities or
securities value. Option contracts allow, but do not require, the holder to buy
or sell (or purchaser to call or put) a specified financial instrument or
commodity at a specified price during a specified period. At the inception of
an option contract, the seller charges a fee in exchange for assuming the risk
of an unfavorable change in the price of the underlying security. Premiums
received are deferred until contracts close or expire. Futures and futures
options are standardized contracts traded on an
21
<PAGE>
organized exchange. To ensure an orderly market, the exchange specifies maximum
daily price fluctuations for each type of contract.
Brokers require both buyers and sellers of futures and futures options contracts
to deposit assets (such as cash or government securities) when contracts are
initiated and require additional (or release) collateral on a daily basis as
contracts are marked to market. At December 31, 1995, approximately $90,000 and
$115,000 of the Company's cash and government securities, respectively, are
pledged as security for open contracts and are accordingly restricted as to
withdrawal.
The estimated fair value of open futures and futures options contracts
represents amounts that the Company would pay, or receive, to terminate the
contracts at the reporting date, taking into account unrealized gains or losses
of open contracts and premiums received from writing options. The negative fair
value is reported in the accompanying balance sheets as liability for unsettled
futures and options contracts. The liability for unsettled futures and options
contracts approximated $203,000 and $31,000 at December 31, 1995 and 1994,
respectively. The average negative fair values during the years ended December
31, 1995 and 1994 did not vary materially from the respective year end values.
The Company's futures and futures options contracts are relatively short-term,
generally 6 months to less than 2 years. At December 31, 1995, notional (or
contract) amounts of unsettled futures and futures options contracts
approximated $900,000 and $1.5 million, relating to precious metals and stock
index derivatives, respectively. The contract amounts do not represent amounts
exchanged, and thus, are not a measure of the Company's exposure though its use
of such financial instruments.
During the years ended December 31, 1995 and 1994, recorded net realized and
unrealized losses relating to derivative financial instruments are approximately
as follows:
<TABLE>
<CAPTION>
<S> <C> <C>
Class of Derivative Instrument: 1995 1994
------------ -----------
Commodities $ (19,000) $ (11,000)
Stock Index (300,000) 7,000
------------ -----------
$ (319,000) $ (4,000)
------------- ------------
------------- ------------
</TABLE>
During the year ended December 31, 1995, the Company sold the physical
quantities of precious metals that it owned and recorded a net gain of
approximately $1,400.
NOTE 6 - NOTES PAYABLE
At December 31, 1995 and 1994, the Company's notes payable consisted of the
following:
<TABLE>
<CAPTION>
1995 1994
---------- ---------
<S> <C> <C>
3% Small Business Administration note
secured by a motel, payable in monthly
installments through 1997. $ 87,985 $134,958
7% mortgage secured by building, payable
in monthly installments through 2004. 23,721 25,855
-------- --------
Total $111,706 $160,813
-------- --------
-------- --------
</TABLE>
22
<PAGE>
Principal payments on the above are due as follows:
<TABLE>
<S> <C>
1996 $ 51,001
1997 41,727
1998 2,631
1999 2,788
2000 2,956
thereafter 10,603
---------
$ 111,706
----------
----------
</TABLE>
Cash paid for interest in 1995, 1994, and 1993 was $5,300, $7,328, and $8,629,
respectively.
NOTE 7 - INCOME TAXES
The Company accounts for income taxes utilizing the liability method required by
the Financial Accounting Standards Board Statement of Financial Accounting
Standards No. 109 (FAS 109), "Accounting for Income Taxes". Under this method,
deferred tax assets and liabilities are determined based on tax carry forwards
and the differences between financial reporting and the tax basis of assets and
liabilities. These tax assets and liabilities are measured using the enacted
tax rates and laws that will be in effect when the differences are expected to
reverse.
The Company has considered available evidence supporting the realization of net
deferred tax assets including future reversal of temporary differences and
future taxable income exclusive of temporary differences in the carry forward
period of loss and credit carry forwards. At December 31, 1995 and 1994, the
Company had net operating loss carry forwards totaling approximately $1.3
million and $1 million, respectively, that may be offset against future taxable
income and start expiring in the year 2004. Additionally, the Company has
capital loss carryforwards totaling $240,000 that may be offset against future
capital gains through the year 2000. On the basis of these factors and the
Company's recent loss history, the Company has provided a valuation allowance
for the full amount of the deferred tax asset at December 31, 1995 and 1994 with
no effect on net income for the current and prior period. The valuation
allowance will be reevaluated on a quarterly basis.
The Company's deferred tax liabilities and deferred tax assets relate to tax
loss carryforwards and temporary differences in the basis of real estate
assets and notes receivable and differences in the timing of recognition of
gains on sales of real estate for financial and tax return purposes and are
presented below:
<TABLE>
<CAPTION>
December 31, December 31,
1995 1994
------------ ------------
<S> <C> <C>
Deferred tax liabilities $ 197,000 $ 88,000
Deferred tax assets 435,000 365,000
Valuation Allowance 238,000 277,000
</TABLE>
23
<PAGE>
NOTE 8 - TREASURY STOCK AND STOCK OPTIONS
On June 17, 1987, a 1 for 10 reverse stock split became effective and the
outstanding shares were reduced to approximately 29,428 shares of new common
stock. A liability was recorded for the fractional shares outstanding after
the reverse stock split. During 1995 and 1994, total purchases of fractional
shares amounted to $452 and $72 respectively. As of December 31, 1995 and
1994, the Company had 29,087 and 28,843 shares of common stock outstanding
and a $34,324 and $34,776 liability for fractional shares yet to be
purchased. Total common stock issued and authorized, treasury stock,
outstanding shares, amounts per share and stock options were adjusted to an
equivalent reverse stock split basis.
During 1995 and 1994, the Company purchased 8 and 14 shares, respectively, of
its own common stock from various unaffiliated stockholders and sold 250 and
170 shares, respectively, of treasury stock via the exercise of stock options.
During 1993, the Company purchased 248 shares of its own common stock from
various unaffiliated stockholders as part of a tender offer to shareholders
with less than 5 shares and sold 354 shares of treasury stock via the exercise
of stock options.
The Board of Directors has granted five-year non-qualified stock options to
directors, officers and certain key employees which were exercisable on the date
of grant and expire in 1996 and 1997. The option prices were determined using
the average of the bid and ask prices of the Company's stock on the date of
grant. Stock option information is summarized as follows:
<TABLE>
<CAPTION>
1995 1994 1993
---------- ---------- ---------
<S> <C> <C> <C>
End of year:
Options outstanding 795 1,045 1,415
During the year:
Options exercised 250 170 354
Options forfeited 0 200 0
Average prices per share:
Options outstanding $190.00 $185.22 $176.71
Options exercised 170.00 167.65 166.95
</TABLE>
NOTE 9 - LEASE COMMITMENTS, RENT INCOME & RENT EXPENSE
The Company owns a facility building in Fairbanks, Alaska which is located on
land leased from the State of Alaska until year 2004. The Company, as lessor,
has entered into a long-term sub-lease with the major tenant of this property,
Northern Air Cargo. The lease, which has been extended through February 1997,
provides for minimum annual rental income of $104,640. The terms of the
agreement provide that the tenant is responsible for all operating expenses
except property taxes. The Company also owns a condominium unit in Honolulu,
Hawaii, which is subject to a land lease through 1997 and has been leased to a
private party through June of 1996.
24
<PAGE>
The lease and related sub-lease in effect at December 31, 1995, for the
Fairbanks Airport Building and the Hawaii Condo provide for the following
minimum annual rental commitments and sub-lease income:
<TABLE>
<CAPTION>
Gross Less sublease Net
Commitments rental income Commitments
----------- ------------- -----------
<S> <C> <C> <C>
1996 $ 20,800 $ (121,020) $ (100,220)
1997 20,800 (17,440) 3,360
1998 20,280 20,280
1999 20,280 20,280
2000 20,280 20,280
2001-2004 70,995 70,995
--------- ----------- -----------
Total Lease
Payments $ 173,435 $ (138,460) $ 34,975
---------- ----------- ----------
---------- ----------- ----------
</TABLE>
The Company has rent income from other operating properties that are leased or
rented on a month to month basis. Total lease and rental income on all
operating properties aggregated $224,000, $228,000, and $330,000, respectively
in 1995, 1994 and 1993.
The Company incurred total lease and rent expenses of $38,824, $38,824 and
$41,519 in 1995, 1994, and 1993, respectively.
25
<PAGE>
Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange
Act of 1934, the registrant has duly caused this report to be signed on its
behalf by the undersigned, thereunto duly authorized.
ALASKA NORTHWEST PROPERTIES INC.
By:
--------------------------------
Michael W. Shimasaki, President
Date:
------------------------------
Pursuant to the requirements of the Securities Exchange Act of 1934, this report
has been signed below by the following persons on behalf of the registrant and
in the capacities and on the dates indicated.
Date:
- ---------------------------------- ----------------------
Ronald F. Cosgrave
Chairman of the Board of Directors
Date:
- ---------------------------------- ----------------------
Michael W. Shimasaki
Director, President & Treasurer
(Principal Executive, Financial
& Accounting Officer)
Date:
- ----------------------------------- ----------------------
Keith J. Kennedy
Director
26
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-START> JAN-01-1995
<PERIOD-END> DEC-31-1995
<CASH> 235,929
<SECURITIES> 52,554
<RECEIVABLES> 1,392,361
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 0
<DEPRECIATION> 1,311,338
<TOTAL-ASSETS> 9,754,270
<CURRENT-LIABILITIES> 373,067
<BONDS> 0
0
0
<COMMON> 476,409
<OTHER-SE> 8,904,794
<TOTAL-LIABILITY-AND-EQUITY> 9,754,270
<SALES> 0
<TOTAL-REVENUES> 323,519
<CGS> 0
<TOTAL-COSTS> 619,698
<OTHER-EXPENSES> 197,889
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 5,232
<INCOME-PRETAX> (98,190)
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (98,190)
<EPS-PRIMARY> (3.39)
<EPS-DILUTED> 0
</TABLE>
