SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
[ X ] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 1997
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
Commission file number: 0-14207
RANCON REALTY FUND IV,
A CALIFORNIA LIMITED PARTNERSHIP
(Exact name of registrant as specified in its charter)
California 33-0061355
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
400 South El Camino Real, Suite 1100
San Mateo, California 94402
(Address of principal (Zip Code)
executive offices)
(415) 343-9300
(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 (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 ___
Total number of units outstanding as of June 30, 1997: 79,846
Page 1 of 16
<PAGE>
PART 1. FINANCIAL INFORMATION
Item 1. Financial Statements
RANCON REALTY FUND IV,
A CALIFORNIA LIMITED PARTNERSHIP
Consolidated Balance Sheets
(in thousands, except units outstanding)
(Unaudited)
June 30, December 31,
1997 1996
--------- ---------
Assets
Investments in real estate:
Rental property, net of accumulated depreciation
of $13,824 and $13,077 at June 30, 1997
and December 31, 1996, respectively $ 43,765 $ 38,094
Construction in progress -- 2,184
Land held for development 4,915 4,911
Land held for sale 4,495 4,869
--------- ---------
Total real estate investments 53,175 50,058
Cash and cash equivalents 663 97
Restricted cash 371 102
Accounts and interest receivable 37 188
Note receivable -- 405
Deferred financing costs and other fees, net of
accumulated amortization of $896 and $775
at June 30, 1997 and December 31, 1996,
respectively 1,496 1,223
Prepaid expenses and other assets 544 622
--------- ---------
Total assets $ 56,286 $ 52,695
========= =========
continued -
Page 2 of 16
<PAGE>
RANCON REALTY FUND IV,
A CALIFORNIA LIMITED PARTNERSHIP
Consolidated Balance Sheets - continued
(in thousands, except units outstanding)
(Unaudited)
June 30, December 31,
1997 1996
--------- ---------
Liabilities and Partners' Equity (Deficit)
Liabilities:
Notes payable $ 22,135 $ 17,256
Accounts payable and accrued expenses 604 713
Interest payable 85 67
--------- ---------
Total liabilities 22,824 18,036
--------- ---------
Commitments and contingent liabilities (see Note 4)
Partners' equity (deficit):
General partners (891) (891)
Limited partners, 79,846 limited partnership units
outstanding at June 30, 1997 and December 31, 1996 34,353 35,550
--------- ---------
Total partners' equity 33,462 34,659
--------- ---------
Total liabilities and partners' equity $ 56,286 $ 52,695
========= =========
See accompanying notes to financial statements.
Page 3 of 16
<PAGE>
RANCON REALTY FUND IV,
A CALIFORNIA LIMITED PARTNERSHIP
Consolidated Statements of Operations
(in thousands, except per unit amounts and units outstanding)
(Unaudited)
Three months ended Six months ended
June 30, June 30,
----------------- -----------------
1997 1996 1997 1996
------- ------- ------- -------
Revenues:
Rental income $ 1,748 $ 1,049 $ 3,287 $ 2,169
Interest and other income 3 26 11 54
------- ------- ------- -------
Total revenues 1,751 1,075 3,298 2,223
------- ------- ------- -------
Expenses:
Operating 758 527 1,470 1,052
Interest expense 468 356 861 617
Depreciation and amortization 429 386 820 689
Provision for impairment of land
held for sale 378 -- 378 --
Expenses associated with
undeveloped land 148 219 325 402
General and administrative expenses 325 330 641 655
------- ------- ------- -------
Total expenses 2,506 1,818 4,495 3,415
------- ------- ------- -------
Net loss $ (755) $ (743) $(1,197) $(1,192)
======= ======= ======= =======
Net loss per limited partnership unit $ (9.45) $ (9.31) $(14.99) $(14.93)
======= ======= ======= =======
Weighted average number of limited
partnership units outstanding during
each period used to compute net loss
per limited partnership unit 79,846 79,846 79,846 79,846
======= ======= ======= =======
See accompanying notes to financial statements.
Page 4 of 16
<PAGE>
RANCON REALTY FUND IV,
A CALIFORNIA LIMITED PARTNERSHIP
Consolidated Statements of Partners' Equity (Deficit)
For the six months ended June 30, 1997 and 1996
(in thousands)
(Unaudited)
General Limited
Partners Partners Total
------- --------- ---------
Balance at December 31, 1996 $ (891) $ 35,550 $ 34,659
Net loss -- (1,197) (1,197)
------- --------- ---------
Balance at June 30, 1997 $ (891) $ 34,353 $ 33,462
======= ========= =========
Balance at December 31, 1995 $ (891) $ 37,060 $ 36,169
Net loss -- (1,192) (1,192)
------- --------- ---------
Balance at June 30, 1996 $ (891) $ 35,868 $ 34,977
======= ========= =========
See accompanying notes to financial statements.
Page 5 of 16
<PAGE>
RANCON REALTY FUND IV,
A CALIFORNIA LIMITED PARTNERSHIP
Consolidated Statements of Cash Flows
(in thousands)
(Unaudited)
Six months ended
June 30,
1997 1996
-------- --------
Cash flows from operating activities:
Net loss $ (1,197) $ (1,192)
Adjustments to reconcile net loss to net cash
provided by (used for) operating activities:
Depreciation and amortization 820 689
Amortization of loan fees, included in interest expense 48 39
Provision for impairment of land held for sale 378 --
Changes in certain assets and liabilities:
Accounts and interest receivable 151 (1)
Prepaid expenses and other assets 78 (284)
Accounts payable and accrued expenses (109) 1,274
Interest payable 18 47
Deferred financing costs and other fees (272) (38)
-------- --------
Net cash provided by (used for) operating activities (85) 534
-------- --------
Cash flows from investing activities:
Net proceeds from sale of real estate -- 248
Additions to real estate and property development costs (3,837) (5,556)
-------- --------
Net cash used for investing activities (3,837) (5,308)
-------- --------
Cash flows from financing activities:
Net loan proceeds 6,500 3,845
Decrease (increase) in restricted cash, net (269) 826
Payment of loan fees (122) (199)
Notes payable principal payments (1,621) (77)
-------- --------
Net cash provided by financing activities 4,488 4,395
-------- --------
Net increase (decrease) in cash and cash equivalents 566 (379)
Cash and cash equivalents at beginning of period 97 1,296
-------- --------
Cash and cash equivalents at end of period $ 663 $ 917
======== ========
- continued -
Page 6 of 16
<PAGE>
RANCON REALTY FUND IV,
A CALIFORNIA LIMITED PARTNERSHIP
Consolidated Statements of Cash Flows - continued
(in thousands)
(Unaudited)
Six months ended
June 30,
1997 1996
-------- --------
Supplemental disclosure of cash flow information:
Cash paid for interest $ 795 $ 528
======== ========
Supplemental disclosure of additions to real estate
and property development costs:
Purchase price of real estate $(1,750) $ --
Reduction of note receivable 405 --
Additions to real estate and property development costs (2,492) (5,556)
------- --------
Net additions to real estate and property development costs $(3,837) $ (5,556)
======= ========
Supplemental disclosure of non-cash refinancing activity:
New financing $ 7,700 $ 9,425
Original financing paid off in escrow (1,200) (5,580)
------- --------
Net loan proceeds $ 6,500 $ 3,845
======= ========
See accompanying notes to financial statements.
Page 7 of 16
<PAGE>
RANCON REALTY FUND IV,
A CALIFORNIA LIMITED PARTNERSHIP
Notes to Consolidated Financial Statements
June 30, 1997
(Unaudited)
Note 1. THE PARTNERSHIP AND SIGNIFICANT ACCOUNTING POLICIES
In the opinion of Rancon Financial Corporation ("RFC") and Daniel Lee Stephenson
(the "Sponsors") and Glenborough Corporation (successor by merger with
Glenborough Inland Realty Corporation), the accompanying unaudited financial
statements contain all adjustments (consisting of only normal accruals)
necessary to present fairly the financial position of Rancon Realty Fund IV, A
California Limited Partnership (the "Partnership") as of June 30, 1997 and
December 31, 1996, and the related statements of operations for the three and
six months ended June 30, 1997 and 1996, and the changes in partners' equity
(deficit) and cash flows for the six months ended June 30, 1997 and 1996.
In December, 1994, RFC entered into an agreement with Glenborough Corporation
("Glenborough") whereby RFC sold to Glenborough the contract to perform the
rights and responsibilities under RFC's agreement with the Partnership and other
related Partnerships (collectively, the "Rancon Partnerships") to perform or
contract on the Partnership's behalf, for financial, accounting, data
processing, marketing, legal, investor relations, asset and development
management and consulting services for the Partnership for a period of ten years
or until the liquidation of the Partnership, whichever comes first. Pursuant to
the contract, the Partnership will pay Glenborough for its services as follows:
(i) a specified asset administration fee, which is fixed for five years subject
to reduction in the year following the sale of assets, currently $989,000 per
year; (ii) sales fees of 2% for improved properties and 4% for land; (iii) a
refinancing fee of 1% and (iv) a management fee of 5% of gross rental receipts.
As part of this agreement, Glenborough will perform certain tasks for the
General Partner of the Rancon Partnerships and RFC agreed to cooperate with
Glenborough, should Glenborough attempt to obtain a majority vote of the limited
partners to substitute itself as the General Partner for the Rancon
Partnerships. This agreement became effective January 1, 1995. Glenborough is
not an affiliate of RFC or the Partnership.
Consolidation - In order to satisfy certain lender requirements for the
Partnership's 1996 loan secured by Service Retail Center, Promotional Retail
Center, and Carnegie Business Center I, Rancon Realty Fund IV Tri-City Limited
Partnership, a Delaware limited partnership ("RRF IV Tri-City") was formed in
April 1996. The three properties securing the loan were contributed to RRF IV
Tri-City by the Partnership. The limited partner of RRF IV Tri-City is the
Partnership and the general partner is Rancon Realty Fund IV, Inc., a
corporation wholly owned by the Partnership. Since the Partnership indirectly
owns 100% of RRF IV Tri-City, the financial statements of RRF IV Tri-City have
been consolidated with those of the Partnership. All intercompany transactions
and account balances have been eliminated in consolidation.
Page 8 of 16
<PAGE>
RANCON REALTY FUND IV,
A CALIFORNIA LIMITED PARTNERSHIP
Notes to Consolidated Financial Statements
June 30, 1997
(Unaudited)
Reclassification - Certain 1996 balances have been reclassified to conform to
the current period presentation.
Note 2. REFERENCE TO 1996 AUDITED FINANCIAL STATEMENTS
These unaudited financial statements should be read in conjunction with the
Notes to Financial Statements included in the December 31, 1996 audited
financial statements.
Note 3. INVESTMENTS IN REAL ESTATE
On February 28, 1997, the Partnership purchased the property known as TGI
Friday's for $1,750,000. The Partnership paid $1,345,000 in cash and the
existing $405,000 note receivable secured by a deed of trust on the TGI Friday's
property was retired as part of this transaction.
In May 1997, construction of the Circuit City site in the Tri-City Corporate
Center was completed for a total cost of approximately $3,840,000 and was
classified as rental property.
In the second quarter of 1997, due to the sales price of pending land sales,
management concluded that the carrying value of the Partnership's investment in
the land held for sale in Temecula, California was in excess of its fair value
and a provision for impairment of the land held for sale in the amount of
$378,000 was recorded.
Note 4. RESTRICTED CASH
On March 12, 1997, pursuant to the Inland Regional Center ("IRC") lease, a
$269,000 certificate of deposit ("DC") was opened. The $269,000 represents a
security deposit which the Partnership will retain in the event of a default by
IRC. Provisions in the lease allow for the security deposit plus accrued
interest to be converted to prepaid rent after the 60th month of the lease if
the tenant is not in default of the provisions of the lease.
Note 5. COMMITMENTS AND CONTINGENT LIABILITIES
The Partnership is contingently liable for subordinated real estate commissions
payable to the Sponsor in the amount of $643,000 at June 30, 1997 for sales that
transpired in previous years. The subordinated real estate commissions are
payable only after the Limited Partners have received distributions equal to
their original invested capital plus a cumulative non-compounded return of six
percent per annum on their adjusted invested capital.
Page 9 of 16
<PAGE>
RANCON REALTY FUND IV,
A CALIFORNIA LIMITED PARTNERSHIP
Notes to Consolidated Financial Statements
June 30, 1997
(Unaudited)
Note 6. NOTES PAYABLE
On January 31, 1997, the Partnership obtained an unsecured promissory note for a
$1,500,000 revolving line of credit from Glenborough at a rate of eleven percent
(11%) per annum to fund capital expenditures and other partnership costs. By
April 1997, the Partnership had drawn the total $1,500,000 available on the line
of credit and the loan was paid off in May 1997, from new permanent financing
proceeds (see below).
On February 28, 1997, the Partnership obtained a $1,200,000 unsecured loan at an
interest rate of one percent (1%) per annum in excess of the bank "Prime Rate."
The loan was used to finance the acquisition of the TGI Friday's property. This
loan was also paid off in May 1997, from the new permanent financing proceeds
(see below).
On May 8, 1997, the Partnership obtained new permanent financing of $5,000,000
from Wells Fargo Bank, secured by real estate referred to as Circuit City and
TGI Friday's. The Partnership used the proceeds to pay off the $1,500,000
Glenborough line of credit and $1,221,000 to pay off the unsecured Wells Fargo
Bank loan (including accrued interest). In addition, the Partnership incurred
approximately $193,000 in loan fees and closing costs and $1,956,000 for the
Circuit City tenant improvement allowance, of which $35,000 remains to be paid
as of June 30, 1997, pending final completion of all tenant improvements. The
remaining net proceeds of approximately $130,000 were added to the Partnership's
cash reserves.
The new loan bears interest at one percent (1%) per annum in excess of the
lender's "Prime Rate," requires monthly payments of interest only, and matures
on May 31, 1999 with an option for a one-year extension.
Note 7. SUBSEQUENT EVENT
On July 1, 1997 and August 7, 1997, the Partnership sold four of the 11
remaining available lots of Rancon Towne Village for an aggregate sales price of
$936,000.
Page 10 of 16
<PAGE>
Item 2. Management's Discussion and Analysis of Financial Conditions and Results
of Operations.
LIQUIDITY AND CAPITAL RESOURCES
At June 30, 1997, the Partnership had cash of $932,000. The remainder of the
Partnership's assets consist primarily of its investments in real estate,
totaling approximately $53,553,000.
The Partnership's primary source of funds consist of cash provided by rental
activities, permanent financing, construction financing, property sales and
interest income on certificates of deposit and other deposits of funds invested
temporarily, pending their use in the development of properties.
The Partnership's improved cash position at June 30, 1997 compared to December
31, 1996 is largely due to the placement of the Inland Regional Center into
service in June 1996, the acquisition of TGI Friday's in February 1997, and the
net proceeds from various financing obtained in 1997.
On May 8, 1997, the Partnership obtained new permanent financing of $5,000,000
from Wells Fargo Bank, secured by real estate referred to as Circuit City and
TGI Friday's. The Partnership used the proceeds to pay off a $1,500,000 line of
credit and $1,221,000 to pay off the unsecured Wells Fargo Bank loan. In
addition, the Partnership incurred approximately $193,000 in loan fees and
closing costs and $1,956,000 for the Circuit City tenant improvement allowance.
The remaining net proceeds of approximately $130,000 were added to the
Partnership's cash reserves.
A majority of the Partnership's assets are located within the Inland Empire, a
submarket of Southern California, and have been directly affected by the
economic weakness of the region. Management believes, however, that while prices
have not increased significantly, the Southern California real estate market
appears to be improving. Management continues to evaluate the real estate
markets in which the Partnership's assets are located in an effort to determine
the optimal time to dispose of them and realize their maximum value.
Tri-City
The Partnership currently owns the following properties in the Tri-City
Corporate Center area within the Inland Empire submarket of the Southern
California region:
Property Type Square Feet
--------------------------- ---------------------------------- -----------
One Vanderbilt Four story office building 73,809
Two Vanderbilt Four story office building 69,094
Carnegie Business Center I Two light industrial buildings 62,605
Service Retail Center Two retail buildings 20,780
Promotional Retail Center Four strip center retail buildings 104,865
Inland Regional Center Two story office building 81,079
TGI Friday's Restaurant 9,386
Circuit City Build-to-suit retail building 39,123
Page 11 of 16
<PAGE>
The Partnership also owns approximately 26 acres of unimproved land in the
Tri-City area.
Additionally, the Partnership owns the Shadowridge Woodbend Apartments (a
240-unit apartment complex) in Vista, California plus unimproved land in
Riverside County, California as described below.
Lake Elsinore
Lake Elsinore is 24.8 acres of undeveloped land, commercially zoned in Lake
Elsinore, Riverside County, California. Offsite improvements remain on hold at
the Lake Elsinore property and there is no development activity planned for the
near future.
Perris
Perris is 17.14 acres of unimproved land near Perris Lake in Perris, Riverside
County, California. There has been no development of the Perris property to
date. The property is being marketed for sale to retail users and interested
developers.
Temecula
The subdivision of the 12.4 gross acre property in Temecula, California, also
known as Rancon Towne Village, into 12 lots was approved January 2, 1996. From
February 1996 through August 1997, the Partnership sold five lots totaling
approximately 3.7 acres for a cumulative sales price of $1,211,000. The
Partnership has executed a sales contract on one lot consisting of approximately
1.06 acres for a sales price of $270,000. The sale is expected to close by
January 1998. Negotiations are currently underway for the sale of one additional
.76 acre lot while the remaining lots continue to be marketed for sale.
The Partnership has a $100,000 certificate of deposit ("CD") held as collateral
for subdivision improvements and monument bonds related to the land for sale in
Temecula, California. It is anticipated that this CD will be released during
1997.
General Matters
The $5,671,000 increase in rental property at June 30, 1997 from December 31,
1996 is primarily due to the acquisition of the TGI Friday's property, the
reclassification of Circuit City from construction in progress to rental
property, and the tenant improvement allowance paid for the completion of the
Circuit City property.
The General Partners continue to assess the real estate market in Southern
California in an effort to determine an appropriate time to liquidate the
Partnership and realize the maximum value for its assets. Cash generated from
property sales may be utilized in the development of other properties or
distributed to the partners.
Page 12 of 16
<PAGE>
RESULTS OF OPERATIONS
Revenues
Rental income for the six and three months ended June 30, 1997 increased
$1,118,000 or 52% and $699,000 or 67% over the six and three months ended June
30, 1996, respectively, primarily as a result of: (i) the commencement of
operations of the Inland Regional Center in June 1996; (ii) ground lease revenue
earned from Circuit City as the project was under construction from September
1996 through May 1997; (iii) the commencement of the Circuit City operating
lease in May 1997; (iv) the acquisition of the TGI Friday's property in February
1997; and (v) the increased occupancy at One Vanderbilt, Two Vanderbilt, Service
Retail Center, and Shadowridge Woodbend Apartments during the six and three
months ended June 30, 1997 over the six and three months ended June 30, 1996.
Occupancy rates at the Partnership's Tri-City properties as of June 30, 1997 and
1996 were as follows:
June 30,
1997 1996
-------- -------
One Vanderbilt 90% 59%
Two Vanderbilt 90% 25%
Service Retail Center 100% 97%
Carnegie Business Center I 81% 87%
Promotional Retail Center-Phase I 97% 97%
Inland Regional Center (commenced operations
June, 1996) 100% 100%
TGI Friday's (acquired February 28, 1997) 100% n/a
Circuit City (commenced operations May, 1997) 100% n/a
As of June 30, 1997, tenants at Tri-City occupying substantial portions of
leased rental space included: (i) ITT Educational Services with a lease which
expires in December 2004; (ii) Inland Regional Center with a lease through July
2009; (iii) CompUSA with a lease through August 2003; (iv) PetsMart with a lease
through January 2009; (v) Circuit City with a lease through January 2018; and
(vi) Fidelity National Title with a lease through August 2003. These six
tenants, in the aggregate, occupied approximately 219,000 square feet of the
412,000 total leasable square feet at Tri-City as of June 30, 1997 and account
for 52% of the rental income generated at Tri-City and 38% of the total rental
income for the Partnership during the first half of 1997.
Interest income decreased $43,000 or 80% and $23,000 or 88% during the six and
three months ended June 30, 1997 compared to the six and three months ended June
30, 1996, respectively, due to a lower average cash balance in 1997 as a result
of additions to real estate and property development costs in the second half of
calendar year 1996 and the elimination of the interest income on the $405,000
note receivable that was retired as part of the acquisition of TGI Friday's on
February 28, 1997.
Page 13 of 16
<PAGE>
Expenses:
Operating expenses increased $418,000 or 40% and $231,000 or 44% during the six
and three months ended June 30, 1997 over the six and three months ended June
30, 1996, respectively, due to: (i) the addition of the Inland Regional Center
as an operating property in June 1996; (ii) increased utility and operational
expenses related to increased occupancy at selected properties; and (iii)
property tax refunds received in the first half of 1996.
Interest expense increased $244,000 or 40% and $112,000 or 31% during the six
and three months ended June 30, 1997 compared to the same periods in 1996,
respectively, due to the increased debt to finance the acquisition and
construction of properties over the past year.
Depreciation and amortization for the six and three months ended June 30, 1997
increased $131,000 or 19% and $43,000 or 11% from the six and three months ended
June 30, 1996, respectively, primarily as a result of the acquisition/operations
of the Inland Regional Center, TGI Friday's and Circuit City properties over the
past year.
Expenses associated with undeveloped land decreased $77,000 or 19% and $71,000
or 32% during the six and three months ended June 30, 1997 compared to the six
and three months ended June 30, 1996, respectively, due to the reduction of
property taxes resulting from a reduction by the Assessor's office of assessed
values of selected parcels of land.
Page 14 of 16
<PAGE>
Part II. OTHER INFORMATION
Item 1. Legal Proceedings
None.
Item 2. Changes in Securities
Not applicable.
Item 3. Defaults Upon Senior Securities
Not applicable.
Item 4. Submission of Matters to a Vote of Security Holders
None.
Item 5. Other Information
None.
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits:
#27 - Financial Data Schedule
(b) Reports on Form 8-K:
None.
Page 15 of 16
<PAGE>
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.
RANCON REALTY FUND IV,
a California Limited Partnership
(Registrant)
Date: August 13, 1997 By: /s/ Daniel L. Stephenson
------------------------
Daniel L. Stephenson
Chief Executive Officer and
Chief Financial Officer of
Rancon Financial Corporation,
General Partner of
Rancon Realty Fund IV,
a California Limited Partnership
Page 16 of 16
<PAGE>
<TABLE> <S> <C>
<ARTICLE> 5
<CIK> 0000743870
<NAME> RANCON REALTY FUND IV
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-START> JAN-01-1997
<PERIOD-END> MAR-31-1997
<CASH> 1,034
<SECURITIES> 0
<RECEIVABLES> 37
<ALLOWANCES> 0
<INVENTORY> 4,495
<CURRENT-ASSETS> 1,071
<PP&E> 62,504
<DEPRECIATION> 13,824
<TOTAL-ASSETS> 56,286
<CURRENT-LIABILITIES> 689
<BONDS> 22,135
0
0
<COMMON> 0
<OTHER-SE> 33,462
<TOTAL-LIABILITY-AND-EQUITY> 56,286
<SALES> 0
<TOTAL-REVENUES> 3,298
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 3,256
<LOSS-PROVISION> 378
<INTEREST-EXPENSE> 861
<INCOME-PRETAX> (1,197)
<INCOME-TAX> 0
<INCOME-CONTINUING> (1,197)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (1,197)
<EPS-PRIMARY> (14.99)
<EPS-DILUTED> (14.99)
</TABLE>
