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, 1999 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.
<PAGE>
FIRST HARTFORD CORPORATION
INDEX
PART I. FINANCIAL INFORMATION PAGE
----
Item 1. Financial Statements
Consolidated Balance Sheets -
July 31, 1999 and April 30, 1999 1 & 2
Consolidated Statements of Income (Loss)
Three Months Ended July 31, 1999 and
Three Months Ended July 31, 1998 3
Consolidated Statements of Cash Flows
Three Months Ended July 31, 1999 and
Three Months Ended July, 31, 1998 4 & 5
Item 2. Management's Discussion and Analysis
of Financial Condition and Results of Operations 6
PART II. OTHER INFORMATION
Signatures 7
<PAGE>
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements:
FIRST HARTFORD CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Unaudited)
Assets July 31, April 30,
1999 1999
----------- -----------
Real Estate and equipment:
Developed properties $11,318,157 $ 7,379,545
Equipment and leasehold improvements 120,763 117,311
----------- -----------
$11,438,920 $ 7,496,856
Less accumulated depreciation and
amortization 1,011,077 941,535
----------- -----------
$10,427,843 $ 6,555,321
Properties under construction and
investment in undeveloped properties $ 8,578,835 $11,641,378
----------- -----------
$19,006,678 $18,196,699
Cash 37,344 106,017
Accounts receivable, less allowance
for doubtful accounts 68,061 69,953
Deposits, escrows, and prepaid and
deferred expenses 1,420,935 1,167,942
Due from related parties and affiliates, and
investment in affiliated partnership 1,833,890 1,729,140
Deferred Tax Assets 1,606,441 1,606,441
----------- -----------
$23,973,349 $22,876,192
=========== ===========
1
<PAGE>
PART I - FINANCIAL INFORMATION
FIRST HARTFORD CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Unaudited)
July 31, April 30,
1999 1999
------------ ------------
Liabilities:
Mortgages, notes payable
and capital lease obligations:
Construction loan payable $ 12,025,858 $ 10,161,257
Mortgages payable $ 7,800,188 $ 7,849,778
Notes Payable:
Other 4,168,658 3,818,659
------------ ------------
$ 23,994,704 $ 21,829,694
Accounts payable 2,377,929 3,101,020
Accrued Liabilities 683,765 639,001
Due to Related Parties and affiliated
partnerships 1,741,747 1,834,624
------------ ------------
$ 28,798,145 $ 27,404,339
Shareholders' equity (deficiency):
Common stock, $1 par; authorized
6,000,000 shares; issued 3,322,213
shares 3,322,213 3,322,213
Capital in excess of par 4,857,645 4,857,645
Deficit (10,936,530) (10,639,881)
------------ ------------
($ 2,756,672) ($ 2,460,023)
Less 232,228 shares of common stock
held in treasury, at cost 2,068,124 2,068,124
------------ ------------
($ 4,824,796) ($ 4,528,147)
------------ ------------
$ 23,973,349 $ 22,876,192
============ ============
2
<PAGE>
FIRST HARTFORD CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME (LOSS)
(Unaudited)
Three Months Ended
------------------
July 31, 1999 July 31, 1998
------------- -------------
Revenues, Including Related
Party Respectively:
Sale of Real Estate $ -- $ 186,500
Construction 79,743 63,948
Rental 553,551 248,977
Other 31,757 60,689
----------- -----------
$ 665,011 $ 560,114
Costs and Expenses:
Cost of Sales Real Estate -- 186,082
Construction 35,636 45,589
Operating, selling, general
and administrative 411,319 398,243
Interest 413,571 144,188
Depreciation and amortization 73,214 44,964
Real estate taxes 27,920 39,080
----------- -----------
961,660 858,146
----------- -----------
Net Income Gain (Loss) (296,649) (298,032)
=========== ===========
Income Per Share ($ 0.10) ($ 0.10)
=========== ===========
Weighted Average Number of Common
Shares Outstanding 3,089,985 3,089,985
=========== ===========
3
<PAGE>
FIRST HARTFORD CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF CASH FLOWS
JULY 31, 1999
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
Cash flows from operating 3 months ended 3 months ended
activities: July 31, 1999 July 31, 1998
-------------- --------------
Net Profit (Loss) ($ 296,649) ($ 298,031)
Adjustments to reconcile net loss
to net cash used in operating activities:
Depreciation 70,450 43,846
Amortization 2,763 1,118
Changes in assets and liabilities:
Increase in:
Accounts and Notes Receivable 1,892 (64,278)
Deposits, escrows, prepaid and
deferred expenses (255,756) (22,781)
Accrued liabilities 44,764 (48,993)
Decrease in:
Accounts payable (723,093) (197,278)
----------- -----------
Net cash used in operating activities (1,155,629) ($ 586,397)
----------- -----------
Cash flows from investing activities:
Purchase of Equipment and
Leasehold Improvements (4,293) (12,689)
Proceeds from Sale of Real Estate -- 170,969
Payments for:
Additions to Properties under
construction (876,136) (2,967,676)
----------- -----------
Net Cash used in investing activities (880,429) ($2,809,396)
----------- -----------
4
<PAGE>
FIRST HARTFORD CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF CASH FLOWS, CONTINUED
JULY 31, 1999
Cash flows from financing 3 months ended 3 months ended
activities: July 31, 1999 July 31, 1998
----------- -----------
Proceeds from:
Construction Loans $ 1,864,601 $ 5,370,639
Notes Payable 350,000 --
Principal payments on:
Construction Loans Payable -- ($1,650,000)
Mortgages payable (49,589) (193,475)
Notes payable -- (150,000)
Repayment to related parties and
affiliated partnerships (197,627) 49,325
----------- -----------
Net Cash provided by financing
activities 1.967.385 $ 3,426,489
Net increase (decrease) in cash
and cash equivalents ($ 68,673) $ 30,696
Cash and cash equivalents, beginning
of year 106,017 4,118
----------- -----------
Cash and cash equivalents,
end of year $ 37,344 $ 34,814
=========== ===========
5
<PAGE>
Item 2. FIRST HARTFORD CORPORATION AND SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
Result of Operations
The quarter ended July 31, 1999 produced a loss of $296,649 or (.10) per
share compared to a loss of $298,032 (.10) per share for the quarter ended July
31, 1998.
Rental income has increased to $553,511 from $248,977 due to new rentals
at our shopping centers in Putnam, Connecticut and Mt. Olive, New Jersey.
Interest expense has increased to $413,571 from $144,188 and depreciation has
increased to $73,214 from $44,964. New rentals should stabilize in the third
quarter.
In the quarter ended July 31, 1999 net property assets increased
approximately $800,000 while construction loans increased $1,865,000. Most of
the net increase in borrowing was due to cash management and was used to pay
down accounts payable by $723,000.
Capital resource and liquidity have always been a major impediment of the
Registrant. Reputation, industry contacts and capital resources are the key
elements of the real estate development business. Management has continued to
explore new lenders and believes we will continue to find capital resources at
reasonable rates. Liquidity is worked on a daily basis through tight cash
management and the Registrant believes that will be adequate. In the event that
it is not, the Registrant will seek to bring a partner into one of the existing
properties or an outright sale.
6
<PAGE>
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
/s/ Stuart Greenwald
----------------------------------------
Stuart Greenwald
Treasurer
Chief Financial Officer
(Duly Authorized Officer,
Principal Financial and
Accounting Officer)
Date: 9/15/99
-------------
7
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
This schedule contains summary financial information extracted from First
Hartford Corp. 10-Q and is qualified in its entirety by reference to such
financial statements.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> APR-30-2000
<PERIOD-START> MAY-01-1999
<PERIOD-END> JUL-31-1999
<CASH> 37,344
<SECURITIES> 0
<RECEIVABLES> 114,061
<ALLOWANCES> 46,000
<INVENTORY> 8,578,835
<CURRENT-ASSETS> 105,405
<PP&E> 11,438,920
<DEPRECIATION> 1,011,077
<TOTAL-ASSETS> 23,973,349
<CURRENT-LIABILITIES> 3,061,694
<BONDS> 23,994,704
0
0
<COMMON> 1,254,089
<OTHER-SE> (6,078,885)
<TOTAL-LIABILITY-AND-EQUITY> 23,973,349
<SALES> 0
<TOTAL-REVENUES> 665,011
<CGS> 0
<TOTAL-COSTS> 73,849
<OTHER-EXPENSES> 887,811
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 413,571
<INCOME-PRETAX> (296,649)
<INCOME-TAX> 0
<INCOME-CONTINUING> (296,649)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 296,649
<EPS-BASIC> (.10)
<EPS-DILUTED> (.10)
</TABLE>
