PART I - FINANCIAL INFORMATION
Item 1. Financial Statements:
FIRST HARTFORD CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Unaudited)
Assets July 31, April 30,
1997 1997
Real Estate and equipment:
Developed properties (Notes) $14,740,768 $14,740,768
(Net of $6,390,802 write down
to Estimated Market Values)
Equipment and leasehold improvements 355,879 339,570
$15,096,647 $15,080,338
Less accumulated depreciation and
amortization 4,046,020 3,906,929
$11,050,627 $11,173,409
Properties under construction and
investment in undeveloped properties --- 1,104,498
$11,050,627 $12,277,907
Cash 374,105 216,148
Accounts receivable, less allowance
for doubtful accounts 196,745 154,786
Deposits, escrows, and prepaid and
deferred expenses 866,863 813,265
Due from related parties and affiliates, and
investment in affiliated partnership 1,033,269 953,412
$13,521,609 $14,415,518
The accompanying notes are an integral part
of these financial statements.
PART I - FINANCIAL INFORMATION
FIRST HARTFORD CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Unaudited)
July 31, April 30,
1997 1997
Liabilities:
Mortgages, notes payable
and capital lease obligations:
Mortgages payable (Notes) $15,921,897 $16,466,162
Notes Payable:
Other 3,382,433 3,625,000
$19,304,330 $20,091,162
Accounts payable 2,020,643 2,552,066
Accrued Liabilities (Notes) 8,241,044 8,280,019
Due to Related Parties and affiliated
partnerships 2,111,807 1,853,204
$31,677,824 $32,776,451
Shareholders' equity (deficiency):
Common stock, $1 par; authorized
6,000,000 shares; issued 3,322,213
shares 3,322,213 3,322,213
Capital in excess of par 4,857,645 4,857,645
Deficit (24,267,949) (24,472,667)
($16,088,091) ($16,292,809)
Less 232,228 shares of common stock
held in treasury, at cost 2,068,124 2,068,124
($18,156,215) ($18,360,933)
$13,521,609 $14,415,518
The accompanying notes are an integral part
of these financial statements.
FIRST HARTFORD CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME (LOSS)
(Unaudited)
Three Months Ended
July 31, 1997 July 31, 1996
Revenues, Including Related
Party Respectively:
Sale of Real Estate $1,509,700 $ --
Construction 52,007 $ 117,067
Rental 702,372 620,829
Other 15,146 124,988
Non-Recurring Gain
Sale of Partnership -- 192,284
Other 430,000 --
$2,709,225 $1,055,168
Costs and Expenses:
Cost of Sales Real Estate 1,488,013 --
Construction 34,944 69,630
Operating, selling, general
and administrative 387,314 797,117
Interest 375,540 408,520
Depreciation and amortization 140,209 133,098
Real estate taxes 78,487 74,961
$2,504,507 $1,483,326
Net Income Gain (Loss) 204,718 ($ 428,158)
Income Per Share $0.07 ($0.14)
Weighted Average Number of Common
Shares Outstanding 3,089,985 3,089,985
Accompanying notes are an integral part
of these financial statements.
FIRST HARTFORD CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF CASH FLOWS
JULY 31, 1997
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
Cash flows from operating 3 months ended 3 months ended
activities: July 31, 1997 July 31, 1996
Net Profit (Loss) $204,718 ($ 428,158)
Adjustments to reconcile net loss
to net cash used in operating activities:
Depreciation 139,091 131,939
Amortization 1,118 1,118
Changes in assets and liabilities:
Increase in:
Accounts and Notes Receivable ( 41,959) 35,334
Deposits, escrows, prepaid and
deferred expenses ( 54,716) ( 96,513)
Accrued liabilities ( 38,975) 285,723
Decrease in:
Accounts payable ( 531,423) 50,472
Net cash used in operating activities ($322,146) ($ 20,085)
Cash flows from investing activities:
Purchase of Investments $ - ($ 28,458)
Purchase of Equipment and
Leasehold Improvements ( 16,309) ( 44,380)
Proceeds from Sale of Real Estate 1,415,852 -
Payments for:
Additions to Properties under
construction ( 311,354) ( 626,060)
Net Cash used in investing activities $1,088,189 ($698,898)
The accompanying notes are an integral part
of these financial statements.
FIRST HARTFORD CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF CASH FLOWS, CONTINUED
JULY 31, 1997
Cash flows from financing 3 months ended 3 months ended
activities: July 31, 1997 July 31, 1996
Proceeds from:
Construction Loans $ -- $ 440,533
Notes Payable -- $ 138,500
Principal payments on:
Construction Loans Payable
Mortgages payable ( 44,264) ( 34,922)
Notes payable ( 742,567) --
Repayment to related parties and
affiliated partnerships 178,746 79,507
Net Cash provided by financing
activities ($ 608,085) $ 623,618
Net increase (decrease) in cash
and cash equivalents $ 157,958 ($ 95,365)
Cash and cash equivalents, beginning
of year 216,148 102,773
Cash and cash equivalents,
end of year $ 374,106 $ 7,408
The accompanying notes are an integral part
of these financial statements.
FIRST HARTFORD CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
In the quarter ended January 31, 1998, the Registrant was successful in
selling apartment properties which were about to go into foreclosure.
These properties were previously written down by $5,891,000. The Registrant
will report a gain of approximately $14,400,000 from that transaction. Net
property assets will be reduced $6,300,000 while mortgages and accrued
interest will be reduced $18,700,800.
At the same time, the Registrant has come to settlement terms with the
Pension Benefit Guaranty Corporation (PBGC) and the Department of Labor
(DOL). Under the settlement, the Company has paid approximately $500,000 in
excess of what is provided in the current Financial Statement. Additionally,
the President of the Registrant (Neil Ellis) has waived his benefits (valued
between $550,000 - $600,000) which made up the difference in funding shortfall.
The Company will have no further pension liabilities.
Although the Registrant believes it has fully complied with the settlement
documents, they are, as of this date, unsigned by the PBGC.
Item 2.
FIRST HARTFORD CORPORATION AND SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITIONS AND RESULTS OF OPERATIONS.
In an effort to continue in business until the PBGC was satisfied and
their liens removed from the Registrant's assets, a new business entity was
created. This entity has carried the Company through this trying period.
Operating losses for this entity are $239,000 for the quarter ended
July 31, 1997. These losses are not reflected in the current statements but
will be included in subsequent periods. (See Notes to Financials Statements.)
PART II - OTHER INFORMATION
Signatures
Pursuant to the requirements of the Securities Exchange
Act of 1934, the Registrant has duly caused this report to
be signed on its behalf by the undersigned thereunto duly
authorized.
FIRST HARTFORD CORPORATION
Stuart Greenwald
Treasurer
Chief Financial Officer
(Duly Authorized Officer,
Principal Financial and
Accounting Officer)
Date:
FIRST HARTFORD CORPORATION
INDEX
PART I. FINANCIAL INFORMATION PAGE
Item 1. Financial Statements
Consolidated Balance Sheets -
July 31, 1997 and April 30, 1997 1 & 2
Consolidated Statements of Income (Loss)
Three Months Ended July 31, 1997 and
Three Months Ended July 31, 1996 3
Consolidated Statements of Cash Flows
Three Months Ended July 31, 1997 and
Three Months Ended July, 31, 1996 4 & 5
Notes to Consolidated Financial Statements 6
Item 2. Management's Discussion and Analysis
of Financial Condition and Results
of Operations 7
PART II. OTHER INFORMATION
Signatures 8
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
F O R M 10-Q
QUARTERLY REPORT UNDER SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For Quarter Ended July 31, 1997 Commission File No. 0-8862
First Hartford Corporation
(Exact name of registrant as
specified in its charter)
Maine 01-0185800
(State of Incorporation) (I.R.S. Employer
Identification No.)
149 Colonial Road, Manchester, Connecticut 06040
(Address of principal executive offices) (Zip Code)
(860) 646-6555
(Registrant's telephone number, including area code)
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, and (2) has been subject to such
filing requirements for the past 90 days.
YES NO X
As of November 8, 1997, 3,089,985 shares of common stock of the
Registrant were outstanding.
