<PAGE> 1
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-QSB
[X] Quarterly Report under Section 13 or 15(d) of the Securities Exchange
Act of 1934
For the quarterly period ended March 31, 1997
[ ] Transition Report under Section 13 or 15(d) of the Securities
Exchange Act of 1934
For the transition period from ________________ to ________________
Commission file number: 0-5370
GENERAL RESIDENTIAL CORPORATION
-------------------------------
(Exact name of small business issuer as specified in its charter)
Delaware 95-2679815
-------- ----------
(State or other jurisdiction of (I.R.S. employer
incorporation or organization) identification number)
17992 Darmel Place, Santa Ana, California 92705
-------------------------------------------------------
(Address of principal executive offices) (Zip Code)
Issuer's telephone number, including area code: (714) 633-4275
not applicable
--------------
(Former name, former address and former fiscal year,
if changed since last report.)
Check whether the issuer (1) has filed all reports required to be filed
by Section 13 or 15(d) of the Exchange Act during the past 12 months (or
for such shorter period that the issuer was required to file such
reports), and (2) has been subject to such filing requirements for the
past 90 days. Yes [X] No [ ]
As of March 31, 1997, the Company had 16,359,260 shares of common stock
issued and outstanding.
Transitional Small Business Disclosure Format: Yes [ ] No [X]
Total sequentially numbered pages in this document: 7.
<PAGE> 2
PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
GENERAL RESIDENTIAL CORPORATION
CONDENSED BALANCE SHEETS (UNAUDITED)
March 31, December 31,
1997 1996
------------ ------------
ASSETS
CASH $ 12,877 $ 4,265
INCOME TAXES RECEIVABLE 8,655
PROPERTY AND EQUIPMENT,
net of accumulated depreciation 1,877,908 1,902,169
------------ ------------
$ 1,890,785 $ 1,915,089
============ ============
LIABILITIES AND SHAREHOLDERS' EQUITY
LIABILITIES
Note payable $ $ 31,236
Accounts payable and accrued expenses 14,195 14,195
Income taxes payable 1,345
Deferred income taxes 481,700 489,000
Due to related parties 158,500 150,500
------------ ------------
TOTAL LIABILITIES 655,740 684,931
------------ ------------
SHAREHOLDERS' EQUITY
Common stock, $.01 par value;
authorized - 50,000,000 shares; issued
and outstanding - 16,359,260 shares 163,593 163,593
Additional paid-in capital 1,324,880 1,324,880
Accumulated deficit (253,428) (258,315)
------------ ------------
TOTAL SHAREHOLDERS' EQUITY 1,235,045 1,230,158
------------ ------------
$ 1,890,785 $ 1,915,089
============ ============
See accompanying Notes to Condensed Financial Statements.
<PAGE> 3
GENERAL RESIDENTIAL CORPORATION
CONDENSED STATEMENTS OF OPERATIONS
(UNAUDITED)
Three Months Ended March 31, 1997 and 1996
1997 1996
------------ ------------
Leasing revenues $ 90,723 $ 90,695
------------ ------------
Costs and expenses:
Fees and expenses to directors and officers 42,000 28,500
General and administrative 12,617 12,082
Depreciation 24,261 24,261
Interest expense, including $4,084 in 1997
and $3,713 in 1996 to related parties 4,258 6,503
------------ ------------
83,136 71,346
------------ ------------
Income before income taxes 7,587 19,349
Income taxes 2,700 5,600
------------ ------------
Net income $ 4,887 $ 13,749
============ ============
Net income per common share $ nil $ nil
============ ============
Weighted average number of common shares
outstanding 16,359,260 16,540,263
============ ============
See accompanying Notes to Condensed Financial Statements.
<PAGE> 4
GENERAL RESIDENTIAL CORPORATION
CONDENSED STATEMENTS OF CASH FLOWS
(UNAUDITED)
Three Months Ended March 31, 1997 and 1996
1997 1996
------------ ------------
CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from lessees $ 90,723 $ 90,695
Interest paid to related parties (4,084) (3,713)
Interest paid to others (174) (2,790)
Income taxes paid (5,273)
Payments to directors and officers for
fees and expenses (42,000) (28,500)
General and administrative expenses (12,617) (12,082)
------------ ------------
NET CASH PROVIDED BY
OPERATING ACTIVITIES 31,848 38,337
------------ ------------
CASH FLOWS FROM FINANCING ACTIVITIES
Principal payments on notes payable,
secured by deeds of trust (31,236) (38,163)
Borrowings from related party 8,000
Common stock repurchased and retired (1,663)
------------ ------------
NET CASH USED IN FINANCING ACTIVITIES (23,236) (39,826)
------------ ------------
NET INCREASE (DECREASE) IN CASH 8,612 (1,489)
CASH BALANCE AT BEGINNING OF PERIOD 4,265 10,118
------------ ------------
CASH BALANCE AT END OF PERIOD $ 12,877 $ 8,629
============ ============
RECONCILIATION OF NET INCOME TO NET CASH
PROVIDED BY OPERATING ACTIVITIES
Net income $ 4,887 $ 13,749
Adjustments to reconcile net income
to net cash provided by operating
activities:
Depreciation of property and equipment 24,261 24,261
Increase in income taxes payable
and deferred taxes 2,700 327
------------ ------------
NET CASH PROVIDED BY OPERATING ACTIVITIES $ 31,848 $ 38,337
============ ============
See accompanying Notes to Condensed Financial Statements.
<PAGE> 5
GENERAL RESIDENTIAL CORPORATION
NOTES TO CONDENSED FINANCIAL STATEMENTS (UNAUDITED)
1. BASIS OF PRESENTATION
The accompanying unaudited financial statements, which are for interim
periods, do not include all disclosures provided in the annual financial
statements. These unaudited financial statements should be read in
conjunction with the financial statements and the footnotes thereto
contained in the Annual Report on Form 10-KSB for the year ended December
31, 1996 of General Residential Corporation (the "Company"), as filed
with the Securities and Exchange Commission. The December 31, 1996
balance sheet was derived from audited financial statements, but does not
include all disclosures required by generally accepted accounting
principles.
In the opinion of the Company, the accompanying unaudited financial
statements contain all adjustments (which are of a normal recurring
nature) necessary for a fair presentation of the financial statements.
The results of operations for the three months ended March 31, 1997 are
not necessarily indicative of the results to be expected for the full
year.
<PAGE> 6
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF PLAN OF OPERATION
Financial Condition:
The Company expects to generate sufficient cash flow from operations
to fund scheduled debt service requirements and general and
administrative expenses during the fiscal year ending December 31, 1997.
Results of Operations:
The Company leases its three properties to an unrelated entity which
operates the properties as residential board and care facilities. The
Company has a fixed yearly lease income of approximately $360,000 through
April 2005. The Company has no other sources of operating revenues.
PART II. OTHER INFORMATION
Items 1 through 6 are not applicable.
<PAGE> 7
SIGNATURES
In accordance with the requirements of the Exchange Act, the registrant
caused this report to be signed on its behalf by the undersigned,
thereunto duly authorized.
GENERAL RESIDENTIAL CORPORATION
-------------------------------------
(Registrant)
Date: April 30, 1997 /S/PAUL M. KUEFLER
By: __________________________________________
Paul M. Kuefler
President
(Principal Executive Officer)
Date: April 30, 1997 /S/DANIEL LEZAK
By: __________________________________________
Daniel Lezak
Secretary-Treasurer
Chief Financial Officer
(Principal Financial and
Accounting Officer)
<TABLE> <S> <C>
<ARTICLE> 5
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-START> JAN-01-1997
<PERIOD-END> MAR-31-1997
<CASH> 12,877
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 3,446,608
<DEPRECIATION> 1,568,700
<TOTAL-ASSETS> 1,890,785
<CURRENT-LIABILITIES> 0
<BONDS> 0
0
0
<COMMON> 163,593
<OTHER-SE> 1,071,452
<TOTAL-LIABILITY-AND-EQUITY> 1,890,785
<SALES> 0
<TOTAL-REVENUES> 90,723
<CGS> 0
<TOTAL-COSTS> 78,878
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 4,258
<INCOME-PRETAX> 7,587
<INCOME-TAX> 2,700
<INCOME-CONTINUING> 4,887
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 4,887
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
