UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 10-KSB
Annual Report Under Section 13 or 15(d)
of the Securities Exchange Act of 1934
For the fiscal year ended March 31, 2000
Commission File Number 0-18727
CARC, Inc.
(Name of small business issuer in its charter)
South Carolina 57-0641693
(State or other jurisdiction I.R.S. Employer Identification No.)
of incorporation of organization)
500 Downs Loop, Clemson, South Carolina 29631
(Address of principal executive offices) (Zip Code)
Issuer's telephone number, including area code: (864) 654-1155
Securities registered pursuant to Section 12(b) of the Exchange Act: None
Securities registered pursuant to Section 12(g) of the Exchange Act:
Common Stock
(Title of class)
Check whether the issuer (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
Check if disclosure of delinquent filers in response to Item 405 of Regulation
S-B 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-KSB or any amendment to
this Form 10-KSB [x]
The issuer's revenues for its most recent fiscal year: $3,361,675
The aggregate market value of the voting stock held by non-affiliates of the
registrant is unknown and the stock is not currently being traded.
The number of shares outstanding of each of the registrant's classes of common
stock, as of June 1, 2000:
Common stock, $1 par value 536,000
Documents Incorporated by Reference
Portions of registrant's definitive proxy statement (to be filed pursuant to
Regulation 14A) or definitive information statement (to be filed pursuant to
Regulation 14C) for registrant's 2000 annual meeting are incorporated by
reference in Part III.
PART 1
Item 1. Business.
CARC, Inc., the registrant, was organized under the laws of the State of South
Carolina on December 20, 1976 to plan, develop, construct and operate a
retirement community ("Clemson Downs") in the Clemson, South Carolina area to
include residential apartments, an accredited health care center and related
recreational and social facilities. The Company's present office is located at
500 Downs Loop, Clemson, South Carolina 29631, and its telephone number is
(864) 654-1155.
The principal services rendered by the registrant are retirement community
services. They include the operation of a health care center, apartment rentals
and providing recreational and other associated services. For the last two
fiscal years, the percentage of total revenue contributed by each of these
services which provided 15% or more of consolidated revenue are as follows:
2000 1999
1.Health care center 40.1% 39.5%
2.Apartment rentals 37.8% 36.8%
3.Dietary revenue 22.0% 23.3%
The apartment buildings at Clemson Downs provide a choice of seven floor plans.
The apartments rent for between $885 and $1,767 per month, depending on which
floor plan is chosen and whether the apartment is rented by one person or a
couple. One meal per day for each resident is included in the rental fee. In
addition, residents may select extra services including housekeeping and meal
delivery. The additional services are billed monthly. Each apartment has a
patio deck, and each floor of each building has its own washer and dryer room.
All buildings have entrances at ground level. Elevators also serve some
buildings. Doors are electric with wheelchair level door openers. There are
thermal-pane windows in patio doors. All halls have assist rails and wide
doorways. Each apartment unit has individual heating and air-conditioning
systems and an individual hot water heater. All the apartments and public areas
in the apartment wings are carpeted, with the exception of the kitchen and
bathroom areas. The kitchens are fully equipped with a range and oven,
refrigerator, dishwasher and disposal. There is an emergency response call
system to the health care center in each apartment and smoke and heat detectors
are located throughout the property.
Item 1. Business. (continued)
The health care center provides convalescent and rehabilitative treatment to
inpatient adults, including those who are admitted after hospitalization and
before returning to their homes, and is designed to supplement general hospital
care, rather than compete directly with general hospitals. The services
furnished by the health care center include room, board, nursing care, drugs,
supplies, medical equipment, other medical services, social activities and
physical, speech and recreational therapy. The health care center contains
private and semi-private rooms. It also has laundry facilities and a reception
area. The admission, treatment and discharge of each health care center
resident are under the direction of the resident's attending physician.
Although no full-time staff physicians are retained, the health care center has
a part time-medical director as well as consulting and on-call physicians as
required.
The health care center receives payments for resident care directly on a
private pay basis, including payments from private health insurance.
Health care facility operations are subject to federal, state and local
government regulations. Health care facilities are subject to periodic
inspection by state licensing agencies to determine whether the standards
necessary for continued licensure are maintained. In granting and renewing
licenses, the state agencies consider, among other things, the buildings,
furniture and equipment; the qualifications of the administrative personnel and
staff; the quality of care; and the compliance with the laws and regulations
relating to operation of the facilities. Management believes that the health
care center at Clemson Downs is presently in substantial compliance with all
applicable federal, state and local regulations with respect to licensure
requirements. However, because those standards are subject to change, there can
be no assurance that the health care center will be able to maintain its
licenses upon a change in standards, and future changes in those standards
could necessitate substantial expenditures by the registrant to comply with
them.
Clemson Downs competes with other local and regional retirement communities on
the basis of reputation and physical appearance and in the case of its health
care center on the basis of the quality of care provided. The primary,
secondary and tertiary service areas for Clemson Downs are as follows:
Primary Service Area - the City of Clemson;
Secondary Service Area - an 18 mile radius extending from the City of Clemson;
and
Tertiary Service Area - All other areas.
Item 1. Business. (continued)
Approximately 60% of the current patients in the health care center resided in
the Primary Service Area immediately before being admitted to the health care
center. The Secondary Service Area accounted for almost 30% of the current
patients last residence and the remaining 10% of the patients at the health
care center were from areas outside of the 18 mile radius, or the Tertiary
Service Area.
There are many health care institutions and corporations that furnish services
similar to those offered by the registrant. Some competitors operate nationally
and have substantially greater resources than the registrant.
The registrant also experiences competition in the search for nurses,
technicians, aides and other high-quality professional and non-professional
employees.
The registrant maintains professional liability, comprehensive general
liability and other typical insurance coverage on all its facilities. The
registrant believes that its insurance is adequate in amount and coverage.
The registrant employs approximately 77 persons in its business and believes
its relations with its employees are good.
Item 2. Properties.
The only property owned by the registrant is Clemson Downs, a retirement
community located in Clemson, South Carolina, which consists of 115 apartments,
52 nursing home beds and a community center which includes a dining room,
library, recreation areas and administrative offices. The buildings are
suitable and adequate for which they were designed and are in good state of
repair. In management's opinion, all properties are adequately covered by
insurance.
There is a primary mortgage balance of $1,469,245 at March 31, 2000 that is
collateralized by land and buildings. The Center also has a secondary mortgage
with a balance of $2,474,156 at March 31, 2000 for the construction of an
additional apartment building and activity center which were completed in 1999.
Item 3. Legal Proceedings.
Registrant is not currently engaged in legal proceedings of material
consequence other than ordinary routine litigation incidental to its business.
Item 4. Submission of Matters to a Vote of Shareholders.
No matters were submitted to a vote of shareholders during the fourth quarter
of 2000.
PART II
Item 5. Market for the Registrant's Common Equity and Related Stockholder
Matters.
There is no established public trading market for the registrant's common
stock. The Center has served as agent in transferring shares from stockholders
to new residents interested in obtaining shares and has received fees for these
services. At March 31, 2000, there are approximately 536 holders of the
registrant's common stock. There have been no cash dividends declared or paid
during the past two fiscal years to the holders of the registrant's common
stock.
Item 6. Management's Discussion and Analysis of Financial Condition and Results
of Operations.
The discussion and analysis that follows discusses the financial condition,
results of operations, liquidity and capital resources of the registrant.
Financial Condition
At March 31, 2000 and 1999, assets were $6.9 million and $7.3 million,
respectively. Also, the Center began renovation of approximately 20 apartments
to provide assisted living services at a cost of $119,000, which was financed
by liquidating the Center's investments. The Center completed the renovations
in March and received a license to operate the assisted living program in
April, 2000. All other assets and liabilities remained relatively unchanged.
During 1999, the Center began offering home health services to its apartment
residents.
Results of Operations
Net income for the years ended March 31, 2000 and 1999 was $29,000 and
$139,000, respectively. The decrease of $110,000 was primarily the result of a
decrease in operating revenues due to local competition and vacancies related
to facility renovations.
Operating Revenues
Operating revenues for the years ended March 31, 2000 and 1999 totaled $3.3
million and $3.5 million, respectively. The overall decrease in operating
revenues of $185,000 was due primarily to decreased apartment occupancy
resulting from discontinued residential services and extended vacancies during
facility renovations. Healthcare Center occupancy has also decreased due to an
increase in the number of local competitors.
Operating Expenses
Operating expenses for the years ended March 31, 2000 and 1999 were $3.3
million each year. Expenses remained relatively constant in most areas.
However, fluctuations were noted in the following areas of operations. Dietary
expenses increased approximately $25,000 due to an increase in food and
beverage costs and labor costs. Residential services decreased $21,000 due to
discontinuation of these services. Healthcare Center costs decreased $32,000
due to the decrease in occupancy and decreased use of temporary employees.
Maintenance expenses increased $23,000 due to equipment repairs, additional
grounds maintenance and the use of temporary employees. Interest expense
decreased $16,000 as the debt continued to amortize and a more favorable
interest rate was obtained in October, 1999 on the primary mortgage note.
Nonoperating revenue
Net nonoperating revenues for the years ended March 31, 2000 and March 31, 1999
remained stable.
Liquidity
The Center generated $356,000 in cash flows from operating activities and
$230,000 from maturities of investments for the year ended March 31, 2000. The
cash flows were used primarily to fund $113,000 of capital expenditures and
repay long-term debt of $384,000.
Future Commitments for Capital Expenditures
None.
Item 7. Financial Statements.
The financial statements required to be filed are attached hereto following the
signature page.
Item 8. Changes in and Disagreement with Accountants on Accounting and
Financial Disclosure. - None.
PART III
Item 9. Directors and Executive Officers of the Registrant.
Item 10. Executive Compensation.
Item 11. Security Ownership of Certain Beneficial Owners and Management.
Item 12. Certain Relationships and Related Transactions.
The information called for by Items 9, 10, 11, and 12 has been omitted because
the registrant will file with the SEC no later than 120 days after the close of
its fiscal year a definitive proxy pursuant to Regulation 14A. Such information
is hereby incorporated by reference from registrant's definitive proxy
statement.
PART IV
Item 13. Exhibits, Financial Statement Schedules, and Reports on Form 8-K.
a. Exhibits
Exhibit 27.1 Financial Data Schedule
b.Reports on Form 8-K - None.
SIGNATURES
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.
CARC, Inc.
Date: June 26, 2000 by: /s/ Susan Davis
Susan Davis
Administrator
(Principal Executive Officer)
Date: June 26, 2000 by: /s/ Lynn Shook
Lynn Shook
Accountant
(Principal Financial and Accounting
Officer)
Independent Auditors' Report
The Board of Directors
CARC, Inc.
Clemson, South Carolina
We have audited the accompanying balance sheets of CARC, Inc. (the "Center") as
of March 31, 2000 and 1999, and the related statements of operations,
stockholders' equity and cash flows for the years then ended. These financial
statements are the responsibility of the Center'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 CARC, Inc. as of March 31,
2000 and 1999 and the results of its operations and its cash flows for the
years then ended, in conformity with generally accepted accounting principles.
/s/ CRISP HUGHES EVANS LLP
Greenville, South Carolina
May 10, 2000
<TABLE>
<CAPTION>
CARC, INC.
Balance Sheets
March 31, 2000 and 1999
Assets
2000 1999
<S> <C>
Current assets:
Cash and cash equivalents $ 475,608 $ 521,472
Investments - 107,568
Accounts receivable, net of allowance
for doubtful accounts of $5,000 in
2000 and 1999 128,607 132,828
Other receivables 1,488 654
Prepaid insurance 6,269 10,815
Inventory 9,756 9,756
Deferred income tax asset 79,500 127,600
Total current assets 701,228 910,693
Property, buildings, and equipment, net 5,894,883 6,142,624
Deposits in escrow 121,815 121,441
Deferred income tax asset 27,500 -
Other assets 110,074 110,295
Total assets $6,855,500 $7,285,053
Liabilities and Stockholders' Equity
Current liabilities:
Current installments of long-term debt $ 324,087 $ 385,331
Accounts payable 52,674 69,786
Accrued liabilities 132,617 154,907
Unearned revenue 13,297 40,517
Total current liabilities 522,675 650,541
Refundable entrance fees and deposits 121,815 121,441
Long-term debt, excluding
current installments 3,619,314 3,941,469
Deferred income tax liability 15,000 23,600
Total liabilities 4,278,804 4,737,051
Stockholders' equity:
Common stock, $1 par value. Authorized
600,000 shares; issued and outstanding
536,000 shares 536,000 536,000
Additional paid-in capital 2,111,886 2,111,886
Accumulated deficit (71,190) (99,884)
Total stockholders' equity 2,576,696 2,548,002
Total liabilities and
stockholders' equity $6,855,500 $7,285,053
</TABLE>
<TABLE>
<CAPTION>
CARC, INC.
Statements of Operations
Years Ended March 31, 2000 and 1999
2000 1999
<S> <C>
Operating revenues:
Apartments $1,258,702 $1,296,342
Health care center, net 1,338,402 1,388,772
Dietary 734,260 821,454
Residential services - 2,673
Miscellaneous 2,237 9,425
Net operating revenues 3,333,601 3,518,666
Operating expenses:
Apartments 248,099 241,040
Health care center 871,960 904,068
Dietary 628,922 603,872
Residential services - 20,943
Maintenance and repair 124,070 100,785
Housekeeping 145,556 137,810
Administrative and general 335,682 327,998
Depreciation and amortization 374,883 365,240
Utilities 167,448 167,806
Interest 339,966 355,703
Property taxes 84,395 96,810
Total operating expenses 3,320,981 3,322,075
Income from operations 12,620 196,591
Nonoperating revenues (expenses):
Interest and investment income 28,074 31,274
Loss on sale of equipment - (4,260)
Nonoperating revenues (expenses) 28,074 27,014
Income before income taxes 40,694 223,605
Income tax expense 12,000 85,100
Net income $ 28,694 $ 138,505
Weighted common shares outstanding 536,000 536,000
Basic earnings per share $ .05 $ .26
</TABLE>
<TABLE>
<CAPTION>
CARC, INC.
Statements of Stockholders' Equity
Years Ended March 31, 2000 and 1999
Additional Total
Common Paid-In Accumulated Stockholders'
Stock Capital Deficit Equity
<S> <C>
Balances at
March 31, 1998 $ 536,000 $2,111,886 $ (238,389) $2,409,497
Net income - - 138,505 138,505
Balances at
March 31, 1999 536,000 2,111,886 (99,884) 2,548,002
Net income - - 28,694 28,694
Balances at
March 31, 2000 $ 536,000 $2,111,886 $ (71,190) $2,576,696
</TABLE>
<TABLE>
<CAPTION>
CARC, INC.
Statements of Cash Flows
Years Ended March 31, 2000 and 1999
2000 1999
<S> <C>
Cash flows from operating activities:
Net income $ 28,694 $ 138,505
Adjustments to reconcile net income
to net cash provided by operating
activities:
Depreciation and amortization 374,883 365,240
Loss on sale of equipment - 4,260
Deferred income tax expense 12,000 85,100
Accretion (942) -
Decrease (increase) in:
Accounts receivable, net 4,221 (27,591)
Other receivables (834) 2,541
Prepaid insurance 4,546 (1,366)
Inventory - 1,364
Increase (decrease) in:
Accounts payable (17,112) (99,467)
Accrued liabilities (22,290) 12,334
Unearned revenue (27,220) 31,023
Deposit proceeds 374 8,624
Net cash provided by operating
activities 356,320 520,567
Cash flows from investing activities:
Purchases of investments - (218,246)
Maturities of investments 229,951 312,413
Capital expenditures (112,921) (220,638)
Increase in restricted
escrow cash account (121,815) -
Net cash used in investing activities (4,785) (126,471)
Cash flows from financing activities:
Long-term debt modification fees (14,000) -
Principal payments of long-term debt (383,399) (434,281)
Proceeds from construction loan - 268,739
Net cash used in financing activities (397,399) (165,542)
Net increase (decrease) in cash and
cash equivalents ( 45,864) 228,554
Cash and cash equivalents,
at beginning of year 521,472 292,918
Cash and cash equivalents,
at end of year $ 475,608 $ 521,472
</TABLE>
CARC, INC.
Notes to Financial Statements
March 31, 2000 and 1999
1.Summary of Significant Accounting Policies
CARC, Inc. (the "Center") is a corporation existing for the purpose of
operating a retirement community in the Clemson, South Carolina area with an
accredited health care facility, residential apartments and other facilities.
The following are the significant accounting policies used in preparation of
the accompanying financial statements.
Operating Revenues - Apartment revenues consist of rental, meals and
miscellaneous other income. Health Care Center revenues consist primarily of
room and board fees and fees for medical supplies and physical therapy. Dietary
revenues consist of fees charged for meals and catered functions.
Resident Revenue - Resident revenue is reported at the estimated net realizable
amounts from residents, third-party payors, and others for service rendered.
Refundable Fees and Deposits - Refundable application fees are refunded upon
demand by the original applicant. Refundable security deposits are refunded
upon termination of the rental agreement less the cost of repairs.
Investments - Investment securities held for investment are stated at amortized
cost since the Center has both the ability and intent to hold such securities
to maturity. Premiums and discounts on the investments are amortized into
income over the contractual terms of the security using a level yield interest
method. Gains and losses on the sale of these securities would be calculated on
the specific identification method.
Other Assets - Other assets consist of loan refinancing cost and loan closing
cost. Debt financing cost is amortized over the life of each respective loan.
Property, Buildings, and Equipment - Property, buildings, and equipment are
stated at cost or, if donated at fair market value at date of receipt, less
accumulated depreciation. Depreciation on buildings and equipment is calculated
on the straight-line method over the estimated useful lives of the assets.
Inventory - Inventory consists of food and medical supplies and is carried at
cost (first-in, first-out).
Accounts Receivable - Accounts receivable consist of unsecured balances from
residents and patients for monthly apartment and health care center charges.
The Center uses the allowance method to account for uncollectible accounts
receivable. The allowance for bad debt accounts is based upon prior years'
experience and management's analysis of possible bad debts.
Income Taxes - Deferred income assets and liabilities are recognized for the
tax consequences of "temporary differences" by applying enacted statutory rates
applicable for future years to differences between the financial statement
carrying amounts and the tax basis of existing assets and liabilities. In the
event the future tax consequences of differences between financial reporting
bases and the tax bases of the Center's assets and liabilities results in a
deferred tax asset, an evaluation of the probability of being able to realize
the future benefits of such an asset is made. A valuation allowance is provided
for the portion of the deferred tax asset when it is more likely than not that
some portion or all of the deferred tax asset will not be realized.
Statements of Cash Flows - For purposes of the statements of cash flows, the
Center considers depository cash accounts to be cash or cash equivalents.
Depository accounts that are held in escrow for fees and deposits are not
considered to be cash or cash equivalents.
As supplemental disclosure to the statements of cash flows, the Center paid
interest amounting to $339,966 in 2000 and $355,703 in 1999. The Center paid no
income taxes in 2000 or 1999.
The Center maintains cash accounts at one financial institution. At times
throughout the year, the Center may have balances in excess of FDIC insured
limits. Due to the strong credit rating of this financial institution,
management believes there is no significant credit risk related to these
accounts.
Unearned Revenue - Unearned revenue represents advance payment of gross room
rates.
Earnings Per Share - The Center provides earnings per share in accordance with
SFAS No. 128, "Earnings Per Share". Basic earnings per share were computed by
dividing earnings available to shareholders by the weighted average number of
common shares outstanding. There are no securities outstanding that represent
potential common stock that would require presentation of diluted earnings per
share.
Estimates - The presentation of financial statements in conformity with
generally accepted accounting principles 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
reporting period. Actual results could differ from those estimates.
Reclassifications - Certain prior year balances have been reclassified to
conform with the current year presentations.
2.Investments
A summary of the Center's investments at March 31 follows:
2000 1999
Investments - U. S. Treasury obligations
due within one year - $ 229,009
The carrying amount of investments approximates their estimated market value.
Included in the carrying amount is accreted interest earned on the zero coupon
bonds which will be collected at maturity. The aggregate of these investments
are presented in the accompanying balance sheets based on the composition of
funds invested as follows:
2000 1999
Investments $ - $ 107,568
Deposits in escrow - 121,441
Total investments $ - $ 229,009
3.Property, Building, and Equipment
A summary of property, buildings, and equipment at March 31 follows:
2000 1999
Land and land improvements $ 550,220 $ 550,220
Buildings 9,298,312 9,220,014
Equipment 597,649 593,551
Vehicles 53,079 53,079
Construction in progress 30,525 -
10,529,785 10,416,864
Less accumulated depreciation 4,634,902 4,274,240
Property, buildings
and equipment, net $5,894,883 $6,142,624
4.Long-Term Debt
Long-term debt consists of a primary mortgage note due in October 2005 and a
secondary mortgage note due April 2007. The Center obtained term modifications
to its primary mortgage in October 1999, with new monthly payments of $27,392,
including interest at 8.75% through October 2005. Prior to the modifications,
monthly payments were $40,626 at an interest rate of 7.5% with scheduled rate
increases. The note had an outstanding balance of $1,469,245 at March 31, 2000
and $1,759,941 at March 31, 1999. The note is collateralized by land and
buildings.
The secondary mortgage note is secured by the real estate and apartment rents.
Monthly payments $25,206, including interest at 7.85% are payable through April
2007, at which time the remainder of principal and interest is due. The note
had an outstanding balance of $2,474,156 at March 31, 2000 and $2,566,859 at
March 31, 1999. This loan was a construction loan and converted to a mortgage
note in 1999.
The mortgage notes have certain restrictive covenants pertaining to its current
ratio, working capital, cash flow coverage ratio, and tangible worth. The
Center is also limited as to property and equipment purchases. As of March 31,
2000, the Center was in compliance with such covenants or received a waiver for
events of noncompliance.
The aggregate annual maturities of long-term debt for each of the five years
subsequent to March 31, 2000 and thereafter are as follows:
2001 $ 324,087
2002 352,499
2003 383,415
2004 417,447
2005 453,636
Thereafter 2,012,317
$3,943,401
5.Income Taxes
As of March 31, 2000, the Center has net operating loss carryforwards of
approximately $248,000 available to offset future taxable income which expire
as follows:
Year:
2006 $ 120,000
2007 128,000
$ 248,000
The components of the net deferred income tax assets are as follows:
2000 1999
Deferred income tax asset:
Net operating loss carryovers $ 95,000 $ 102,900
Accrued expense not
currently deductible for
tax purposes 5,300 7,800
Bad debts expense not
currently deductible for
tax purposes 1,800 1,900
Accrued revenue not currently recognized
for book purposes 4,900 15,000
107,000 127,600
Deferred income tax liability:
Tax depreciation greater than book
depreciation (15,000) (23,600)
Net deferred income tax asset $ 92,000 $ 104,000
A portion of the deferred income tax asset resulting from net operating loss
carryforwards of $27,500 has been presented as noncurrent in the accompanying
balance sheet as of March 31, 2000.
The effective tax rate on income before income taxes was different than amounts
computed by applying the statutory federal tax rate of 34% to income before
income taxes. The reasons for these differences are as follows:
2000 1999
Income taxes at statutory rate $ 14,000 $ 76,000
Increase (decrease) resulting from:
State taxes, net of federal tax benefit 1,000 7,500
Deferred tax rate adjustment (2,000) -
Other (1,000) 1,600
Actual income tax expense (benefit) $ 12,000 $ 85,100
6.Retirement Plan
The Center has a 401(k) Retirement Plan for all employees who have completed
one year of service. Active participants may elect to have the Center make
salary reduction contributions on their behalf based on a percentage of their
earnings, not to exceed 15%. The Center has the option of making an annual
discretionary contribution and can also match each employees' contribution to
the plan up to a predetermined limit. The Center's combined contribution
totaled $19,499 and $15,833 for the years ended March 31, 2000 and 1999,
respectively.
7.Financial Instruments
Generally accepted accounting principles require disclosure of fair value
information about financial instruments, whether or not recognized in the
balance sheet, for which it is practicable to estimate fair value. Instruments
such as accounts receivable, accounts payable, accrued expenses, notes payable
that are currently due, and cash equivalents are of a short-term nature and
carrying value approximates fair value. The estimated fair value of long-term
notes payable is based on discounting amounts at contractual rates using
current market rates for similar instruments. The Center estimates the fair
value of these items to be the same as their carrying value.
Exhibit 27
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<CAPTION>
CARC, Inc.
EDGAR - FINANCIAL DATA SCHEDULES
Article 5 of Regulation S-X
Commercial and Industrial Companies
Item Financial Data as of
Number Item Description March 31, 2000
<S> <S> <C>
5-02(1) Cash and cash items $ 475,608
5-02(2) Marketable securities -
5-02(3)(a)(1) Notes and accounts receivable - trade 133,607
5-02(4) Allowances for doubtful accounts (5,000)
5-02(6) Inventory 9,756
5-02(9) Total current assets 701,228
5-02(13) Property, plant and equipment 10,529,785
5-02(14) Accumulated depreciation 4,634,902
5-02(18) Total assets 6,855,500
5-02(21) Total current liabilities 522,675
5-02(22) Bonds, mortgages and similar debt 3,943,401
5-02(28) Preferred stock-mandatory redemption -
5-02(29) Preferred stock-no mandatory redemption -
5-02(30) Common stock 536,000
5-02(31) Other stockholders' equity 2,040,696
5-02(32) Total liabilities and stockholders' equity 6,855,500
5-03(b)(1)(a) Net sales of tangible products -
5-03(b)(1) Total revenues 3,333,601
5-03(b)2(a) Cost of tangible goods sold -
5-03(b)2 Total costs and expenses applicable to
sales and revenues 3,320,981
Exhibit 27 (continued)
CARC, Inc.
EDGAR - FINANCIAL DATA SCHEDULES
Article 5 of Regulation S-X (continued)
Commercial and Industrial Companies
Item Financial Data as of
Number Item Description March 31, 2000
5-03(b)3 Other costs and expenses $ -
5-03(b)5 Provision for doubtful accounts and notes -
5-03(b)(8) Interest and amortization of debt discount 339,966
5-03(b)(10) Income before taxes and other items 40,694
5-03(b)(11) Income tax expense 12,000
5-03(b)(14) Income/loss continuing operations 28,694
5-03(b)(15) Discontinued operations -
5-03(b)(17) Extraordinary items -
5-03(b)(18) Cumulative effect - changes in accounting principles -
5-03(b)(19) Net income or loss 28,694
5-03(b)(20) Earnings per share - basic .05
5-03(b)(20) Earnings per share - diluted .05
</TABLE>
The accompanying notes are an integral part of these financial statements.
