UNITED CAPITAL INVESTMENT CORP.
FINANCIAL STATEMENTS
FOR THE YEARS ENDED
DECEMBER 31, 1997 AND 1996
<PAGE>
FINANCIAL STATEMENTS
Table of Contents Page
Independent Auditor's Report ................................................ 1
Statements of Assets and Liabilities of United Capital
Investment Corp. as of December 31, 1997 and 1996 ...................... 2
Statements of Operations for the years ended
December 31, 1997, 1996 and 1995 ....................................... 4
Statements of Cash Flows for the years ended
December 31, 1997, 1996 and 1995 .......................................
Statements of Stockholders' Equity for the years ended
December 31, 1997, 1996 and 1995 ....................................... 6
Notes to the Financial Statements ........................................... 7
Schedule of Portfolio Investments ........................................... 13
Selected Per Share Data and Ratios .......................................... 14
<PAGE>
Board of Directors
United Capital Investment Corp.
Independent Auditors' Report
We have audited the accompanying statements of assets and liabilities of
United Capital Investment Corp. (the "Company"), including the schedule of
portfolio investments, as of December 31, 1997 and 1996 and the related
statements of operations, cash flows and stockholders' equity for the years then
ended. These financial statements are the responsibility of the Company's
management. Our responsibility is to express an opinion on these financial
statements based on our audit.
We conducted our audit 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 audit provides a reasonable basis for our opinion.
As described in Note 2, these financial statements were prepared in
conformity with the accounting practices prescribed by the Small Business
Administration, which provides for specific allocations of certain types of
income to specific capital accounts. As explained in Note 2, the financial
statements include securities valued at $3,619,838 and $3,662,999 (173% and 172%
of the net assets), whose values have been estimated by the Board of Directors
in the absence of readily ascertainable market values. We have reviewed the
procedures used by the Board of Directors in arriving at its estimate of value
of such securities and have inspected underlying documentation, and, in the
circumstances, we believe the procedures are reasonable and the documentation
appropriate. However, because of the inherent uncertainty of valuation, those
estimated values may differ significantly from values that would have been used
had a ready market for the securities existed, and the differences could be
material.
In our opinion, the financial statements referred to above, present fairly,
in all material respects, the Company's financial position as of December 31,
1997 and 1996 and the results of its operation and its cash flows for the three
years then ended in conformity with generally accepted accounting principles.
February 13, 1998
Certified Public Accountants
<PAGE>
UNITED CAPITAL INVESTMENT CORP.
STATEMENTS OF ASSETS AND LIABILITIES
ASSETS
<TABLE>
<CAPTION>
December 31
1997 1996
----------- -----------
<S> <C> <C>
Loans Receivable - Long Term Portion (Note 2) $ 3,647,254 $ 3,690,880
Less: Unrealized Depreciation on Loans Receivable (27,416) (27,881)
----------- -----------
3,619,838 3,662,999
Less: Current Maturities - Loans Receivable 506,777 519,243
----------- -----------
Total Loans Receivable - Net of Current Maturities 3,113,061 3,143,756
----------- -----------
Current Assets:
Cash 1,558,413 1,487,354
Accrued Interest Receivable 30,700 27,687
Current Maturities - Loans Receivable (Note 2) 506,777 519,243
Other Assets 53,477 60,398
----------- -----------
Current Assets 2,149,367 2,094,682
----------- -----------
Total Assets $ 5,262,428 $ 5,238,438
=========== ===========
</TABLE>
See Notes to the Financial Statements
-2-
<PAGE>
UNITED CAPITAL INVESTMENT CORP.
STATEMENTS OF ASSETS AND LIABILITIES
LIABILITIES AND STOCKHOLDERS' EQUITY
<TABLE>
<CAPTION>
December 31
1997 1996
---------- ----------
<S> <C> <C>
Long Term Debt:
Debenture Payable to SBA (Note 4) $1,800,000 $1,800,000
Class B, 4% Cumulative, 15 Year Redeemable
Preferred Stock (Note 5) 900,000 900,000
---------- ----------
Total Long Term Debt 2,700,000 2,700,000
---------- ----------
Current Liabilities
Loans Payable - Credit Line (Note 3) 350,000 350,000
Accrued Interest Payable 23,728 17,907
Other Current Liabilities 35,871 19,441
Accrued SBA Dividends 72,000 36,000
---------- ----------
Total Current Liabilities 481,599 423,348
---------- ----------
Total Liabilities 3,181,599 3,123,348
---------- ----------
Commitments and Contingencies -- --
Stockholders' Equity :(Notes 5, 6 and 8)
Class A, 3% Cumulative Preferred Stock, $1,000 Par Value;
1,000 Shares Authorized -- --
Class B, 4% Cumulative, 15 Year Redeemable Preferred Stock,
$1,000 Par Value; 3,000 Shares Authorized: 900 Shares
Issued and Outstanding (See Long Term Debt and Note 5) -- --
Restricted Capital 96,791 224,339
Common Stock, $.01 Par Value; 300,000 Shares Authorized:
199,000 Shares Issued and Outstanding 1,990 1,990
Additional Paid in Capital 1,969,702 1,842,154
Retained Earnings 12,346 46,607
---------- ----------
Total Stockholders' Equity 2,080,829 2,115,090
---------- ----------
Total Liabilities and Stockholders' Equity $5,262,428 $5,238,438
========== ==========
</TABLE>
See Notes to the Financial Statement
-3-
<PAGE>
UNITED CAPITAL INVESTMENT CORP.
STATEMENTS OF OPERATIONS
<TABLE>
<CAPTION>
Years Ended December 31,
1997 1996 1995
-------- -------- --------
<S> <C> <C> <C>
Revenue:
Interest Earned on Outstanding Receivables $409,898 $366,559 $412,245
Interest Income on Idle Funds 82,833 51,991 52,879
Other Income 15,527 10,171 3,560
-------- -------- --------
Total Revenue 508,258 428,721 468,684
-------- -------- --------
Expenses:
Interest 164,292 117,448 111,288
Officers Salaries 140,004 140,004 140,004
Professional Fees 30,393 36,323 31,650
Insurance Expense 21,644 19,632 19,523
Pension Expense 14,000 14,000 14,000
Payroll and Other Taxes 10,469 10,523 9,582
Depreciation and Amortization 6,921 955 1,598
Other Operating Expenses 40,404 42,240 36,147
-------- -------- --------
Total Expenses 428,127 381,125 363,792
-------- -------- --------
Net Investment Income 80,131 47,596 104,892
Unrealized Depreciation in Value of
Investments and Bad Debt Write-Off 77,704 863 --
-------- -------- --------
Net Income Before Taxes 2,427 46,733 104,892
Provision for Taxes 688 704 721
-------- -------- --------
Net Income $ 1,739 $ 46,029 $104,171
======== ======== ========
Earnings Per Common Share (Note 2) $ .01 $ .14 $ .35
======== ======== ========
Actual Dividends Paid Per Common Share $ -- $ .27 $ --
======== ======== ========
</TABLE>
See Notes to the Financial Statements
-4-
<PAGE>
UNITED CAPITAL INVESTMENT CORP.
STATEMENTS OF CASH FLOWS
<TABLE>
<CAPTION>
Years Ended December 31
1997 1996 1995
----------- ----------- -----------
<S> <C> <C> <C>
Cash Flow from Operating Activities:
Net Income $ 1,739 $ 46,029 $ 104,171
Depreciation and Amortization 6,921 955 1,598
(Increase) Decrease in Accrued Interest (3,013) 2,949 6,209
(Increase) in Other Assets -- (49,649) (2,471)
(Decrease) Increase in Accrued Liabilities 22,252 1,111 (11,471)
Unrealized Depreciation in Value of Investments 77,704 864 --
Dividends Paid and Accrued (36,000) (85,885) (32,667)
----------- ----------- -----------
Net Cash Provided (Used) by Operating Activities 69,603 (83,626) 65,369
----------- ----------- -----------
Cash Flows from Investing Activities:
Loans Receivable Originated (1,458,280) (1,398,550) (877,500)
Repayment of Loans Receivable 1,423,736 1,267,820 1,160,664
----------- ----------- -----------
Net Cash Provided (Used by) Investing Activities (34,544) (130,730) 283,164
----------- ----------- -----------
Cash Flow From Financing Activities:
Net Increase in Debentures Payable to SBA -- 400,000 --
Amortization of Restricted Capital (127,548) (127,549) (127,548)
Increase in Additional Paid in Capital 127,548 127,549 127,548
Increase (Decrease) in Accrued SBA Dividends 36,000 (48,667) 32,667
Sale of Class B, 4% Preferred Stock -- -- 500,000
----------- ----------- -----------
Net Cash Provided by Financing Activities 36,000 351,333 532,667
----------- ----------- -----------
Net Increase in Cash 71,059 136,977 881,200
Cash Balance - Beginning of Year 1,487,354 1,350,377 469,177
----------- ----------- -----------
Cash Balance - End of Period $ 1,558,413 $ 1,487,354 $ 1,350,377
=========== =========== ===========
Supplemental Disclosures of Cash Flow Information
Cash Paid During the Year For:
Interest $ 158,471 $ 122,410 $ 111,096
=========== =========== ===========
Taxes $ 688 $ 704 $ 721
=========== =========== ===========
</TABLE>
See Notes to the Financial Statement
-5-
<PAGE>
UNITED CAPITAL INVESTMENT CORP.
STATEMENTS OF STOCKHOLDERS' EQUITY
<TABLE>
<CAPTION>
Years Ended December 31
1997 1996 1995
----------- ----------- -----------
<S> <C> <C> <C>
Class A - See Balance Sheet $ -- $ -- $ --
Class B, 4% Cumulative, 15 Year Redeemable Preferred Stock,
$1,000 Par Value; 3,000 Shares Authorized: 900 Shares
Issued and Outstanding (See Long Term Debt and Note 5) -- -- --
----------- ----------- -----------
Common Stock, $.01 Par Value, 300,000 Shares Authorized;
199,000 Shares Issued and Outstanding 1,990 1,990 1,990
----------- ----------- -----------
Additional Paid in Capital - Beginning of Period 1,842,154 1,714,605 1,587,057
Amortization of Restricted Capital 127,548 127,549 127,548
----------- ----------- -----------
Additional Paid in Capital - End of Period 1,969,702 1,842,154 1,714,605
----------- ----------- -----------
Restricted Capital
Balance - Beginning of Period 224,339 351,888 479,436
Amortization of Restricted Capital (127,548) (127,549) (127,548)
----------- ----------- -----------
Balance - End of Period 96,791 224,339 351,888
----------- ----------- -----------
Retained Earnings
Balance, Beginning of Period 46,607 86,463 14,959
Net Income 1,739 46,029 104,171
Less: Dividends Paid and Accrued to the SBA (36,000) (85,885) (32,667)
----------- ----------- -----------
Balance End of Period 12,346 46,607 86,463
----------- ----------- -----------
Total Stockholders' Equity $ 2,080,829 $ 2,115,090 $ 2,154,946
=========== =========== ===========
</TABLE>
See Notes to The Financial Statements
-6-
<PAGE>
UNITED CAPITAL INVESTMENT CORP.
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1997 AND 1996
NOTE 1 ORGANIZATION
United Capital Investment Corp. (The "Company") was formed on May 11, 1984, for
the purpose of operating as a specialized small business investment company
(SSBIC), licensed under the Small Business Investment Act of 1958 and regulated
and financed in part by the Small Business Administration (SBA). The Company's
business is to provide financing to persons who qualify as disadvantaged persons
under applicable SBA regulations.
NOTE 2 SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies applied by the
Company in the preparation of its financial statements. The Company maintains
its accounts and prepares its financial statements on the accrual method of
accounting in conformity with generally accepted accounting principles for
investment companies.
Valuation of Loans and Investments
As of December 31, 1997, all investments made by the Company have been in the
form of loans to closely held corporations. The Board of Directors has valued
the investment portfolio based upon the cost of such investments, less a
provision for loan losses. However, because of the inherent uncertainty of the
valuation, the estimated values might otherwise be significantly higher or lower
than the values that would exist in a ready market for such loans which market
has not and does not exist. The provision for loan losses of $27,416 represents
a good faith determination by the Board of Directors. Substantially, all loans
are collateralized by business assets and real estate. See schedule for analysis
of loan portfolio.
Recognition of Interest Income
It is the Company's policy to record interest on loans and debt securities only
to the extent that management and the Board of Directors anticipate such amounts
may be collected. As of December 31, 1997, the Board of Directors elected to
accrue interest on substantially all outstanding loans.
Gains or Losses on Securities
Cost of securities sold is reported on the average cost basis. Amounts reported
as realized gains and losses are measured by the difference between the proceeds
of sale and the cost basis of the investment without regard to unrealized gain
or loss reported in prior years.
No gain is recognized on the exchange of one investment security for another, or
on the exchange of an equity or debt investment for other tangible or intangible
assets.
-7-
<PAGE>
UNITED CAPITAL INVESTMENT CORP.
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1997 AND 1996
NOTE 2 SIGNIFICANT ACCOUNTING POLICIES
(Continued)
Furniture, Fixtures and Equipment
Fixed assets are recorded at cost. Depreciation is computed on the straight line
basis.
Pension Plan
The Company maintains a defined contribution money purchase plan covering all
qualifying employees. A provision of $14,000 was included for the years ended
December 31, 1997 and 1996.
Income Taxes
Tax provisions for the various periods were as follows:
December 31, 1997 $ 688
December 31, 1996 $ 704
December 31, 1995 $ 721
The Company has registered as an investment company under the Investment Company
Act of 1940 for the first year ended December 31, 1989 and intends to make the
election for the current period ending December 31, 1997. A regulated investment
company can generally avoid taxation at the corporate level to the extent 90% of
the income is distributed to its stockholders.
Earnings Per Share
Earnings per share of common stock are based on a weighted average number of
shares outstanding during the period, less preferred stock dividend.
NOTE 3 LOANS PAYABLE - LINE OF CREDIT
Effective February 25, 1993, the Company renewed a $500,000 line of credit with
the Hong Kong Shanghai Banking Corp., at a rate of 1% above the New York prime
rate, secured by a blanket lien on all assets and guaranteed personally for the
first $150,000 by Mr. Paul Lee, President of the Company.
-8-
<PAGE>
UNITED CAPITAL INVESTMENT CORP.
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1997 AND 1996
NOTE 3 LOANS PAYABLE - LINE OF CREDIT
(Continued)
The Company will pay a commitment fee of .5% per annum payable monthly on the
unused balance of the credit line. There are no restrictions on advances under
the agreement. The balance outstanding as of December 31, 1997 was $350,000.
<TABLE>
<CAPTION>
Maximum Average
Weighted Amount Amount
Balance Average Outstanding Outstanding
End of Interest During During
Date Period Rate Period Period
---- ------ ---- ------ ------
<S> <C> <C> <C> <C>
December 31, 1996 $350,000 4.875% $350,000 $350,000
December 31, 1997 350,000 4.875% 350,000 350,000
</TABLE>
NOTE 4 LONG TERM DEBT - SBA SUBORDINATED DEBENTURES
On December 18, 1996, the Company issued a $1,400,000 subordinated Debenture to
the SBA and paid off its previously issued subordinated debenture maturing on
October 29, 1996 for $1,000,000.
As of December 31, 1997, long term debt to the Small Business Administration
consisted of the following subordinated debentures:
<TABLE>
<CAPTION>
First Second
Due Date Five Years Principal Amount
- -------- ---------- ----------------
<S> <C> <C> <C>
September 1, 2001 5.33% 8.33% $ 400,000
December 18, 2006 7.08% 7.08% 1,400,000
----------
$1,800,000
==========
</TABLE>
NOTE 5 REDEEMABLE PREFERRED STOCK
Effective November 21, 1989 Congress passes legislation which alters the
preferred stock to a 4 percent cumulative dividend and a fifteen year call
provision for all preferred stock sold subsequent to the effective date.
-9-
<PAGE>
UNITED CAPITAL INVESTMENT CORP.
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1997 AND 1996
NOTE 5 REDEEMABLE PREFERRED STOCK
(Continued)
The Company amended its certificate of incorporation to create a class A
preferred stock $1,000 par value which will consist of the 1,000 outstanding
preferred stock and to change the existing 3,000 authorized but unissued shares
of preferred stock into a new class B preferred stock $1,000 par value which
will carry a 4 percent cumulative dividend rate and a mandatory 15 year
redemption. Subsequent to the repurchase of the 3% preferred stock (see note 8),
the Company retired the class A preferred stock. On February 17, 1995 the
Company sold 500 shares of its 15 year redeemable, 4% cumulative preferred stock
to the SBA for $500,000 and on September 20, 1991, the Company sold 400 shares
of its 15 year redeemable, 4 percent cumulative preferred stock to the SBA for
$400,000. The mandatory redemption provisions call for the preferred stock to be
repurchased by the Company at its face value. In accordance with Regulation S-X,
the Company's financial statements present the preferred stock as Long Term
Debt.
NOTE 6 PREFERRED STOCK
As of December 31, 1997 the Company was authorized to issue 4,000 shares of
cumulative preferred stock, consisting of 1,000 shares of 3 percent cumulative
preferred stock and a second class of 4 percent cumulative, 15 year redeemable
preferred stock, $1,000 par value.
As of December 31, 1997, 900 shares of 4 percent preferred stock were issued to
the SBA. Each share is entitled to receive 4 percent per annum. Dividends are
not required to be paid to the SBA on an annual or other periodic basis, so long
as cumulative dividends are paid to the SBA before any other payments are made
to shareholders. Such dividends on the preferred stock will be deemed to be
earned at the time dividends on the Company's common stock are declared, and
accordingly will reduce the amounts available for distribution to the Company's
shareholders. As of December 31, 1997, the Company was contingently liable to
the SBA on the 4 percent redeemable preferred stock from January 1, 1996 to
December 31, 1997 in the amount of $72,000.
NOTE 7 LEASE AGREEMENT
Minimum rental commitments under operating leases in effect as of December 31,
1997 are as follows:
Rental expense for the current period was $14,117. The lease expired on April
30, 1997, and was renewed for an additional three years, expiring April 30, 2000
with minimum annual rental costs of $13,860 per annum.
NOTE 8 REPURCHASE OF 3% PREFERRED STOCK
Effective August 23, 1993, the Company amended its certificate of incorporation
granting the SBA a liquidating interest in a newly created restricted capital
surplus account.
-10-
<PAGE>
UNITED CAPITAL INVESTMENT CORP.
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1997 AND 1996
NOTE 8 REPURCHASE OF 3% PREFERRED STOCK
(Continued)
The Company and the SBA entered into a repurchase agreement dated October 5,
1993. Pursuant to the agreement, the Company repurchased all 1,000 shares of its
3% preferred stock, $1,000 par value, from the SBA for a purchase price of
$362.257 per share, or an aggregate of $362,257. The repurchase price was at a
substantial discount to the original sale price of $1,000 per share. As a
condition precedent to the repurchase, the Company granted the SBA a liquidating
interest in the restricted capital surplus account.
The surplus account is equal to the amount of the repurchase discount less
expenses associated with the repurchase. The initial value of the liquidating
interest was equal to $637,743. the amount of the repurchase discount on the
date of repurchase, and is being amortized over a sixty (60) month period on a
straight-line basis. Should the Company be in default under the repurchase
agreement, at any time, the liquidating interest will become fixed at the level
immediately preceding the event of default and will not decline further until
such time as the default is cured or waived. The liquidating interest will
expire on the earlier of (I) sixty (60) months from the date of the repurchase
agreement, or (ii) if any event of default has occurred and such default has
been cured or waived, such later date on which the liquidating interest is full
amortized. Should the Company voluntarily or involuntarily liquidate prior to
the expiration of the liquidating interest, any assets which are available,
after the payment of all debts of the Company, shall be distributed first to the
SBA until the amount of the then remaining liquidating interest has been
distributed to the SBA. Such payment, if any, would be prior in right to any
payments made to the Company's shareholders.
NOTE 9 MANAGEMENT FEES
Effective February 9, 1993, the SBA approved the Company's request for an
increase in total compensation to $160,200 retroactive to January 1, 1993.
NOTE 10 RELATED PARTY TRANSACTION
Certain officers and directors of the Company are also shareholders of the
Company. Officers' salaries are set by the Board of Directors and are also
subject to maximum compensation by the SBA.
NOTE 11 FINANCIAL INSTRUMENTS WITH OFF BALANCE SHEET RISKS
The Company maintains an aggregate of approximately $1,052,943 in various banks
in excess of amounts that would be insured by the Federal Depository Insurance
Company.
-11-
<PAGE>
UNITED CAPITAL INVESTMENT CORP.
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1997 AND 1996
NOTE 12 COMMITMENTS AND CONTINGENCIES
Pursuant to SBA regulations, all SSBIC's issuing debentures subsequent to April
25, 1994, were required to amend their certificates of incorporation to indicate
that they have consented , in advance, to the SBA's right to require the removal
of officers or directors and to the appointment of the SBA, or its designee, in
the event of certain default provisions. Effective November 1994, the Company
amended its certificate of incorporation in accordance with the current
provision of the SBA regulation.
NOTE 13 SIGNIFICANT CONCENTRATION OF CREDIT RISK
Approximately twenty eight percent (28%) of the Company's loan portfolio
consists of loans made for the financing and purchase of Dry Cleaners and
related equipment.
-12-
<PAGE>
UNITED CAPITAL INVESTMENT CORP.
SCHEDULE OF PORTFOLIO INVESTMENTS
DECEMBER 31, 1997
<TABLE>
<CAPTION>
Original
Outstanding Number Maturity Balance
Type of Loan of Loans Interest Rate Date Outstanding
------------ -------- ------------- ---- -----------
<S> <C> <C> <C> <C>
Dry Cleaners 13 10.00% - 16.25% 4 - 10 years $ 1,031,795
Food Stores 6 12.00% - 15.00% 4 - 7 years 559,343
Restaurants 5 11.50% - 15.00% 4 - 15 years 395,932
Deli - Grocery 6 12.00% - 15.50% 4 - 7 years 251,191
Taxi Cabs 4 8.75% - 13.50% 4 - 15 years 248,326
Beauty & Nail Salons 3 10.00% - 15.00% 4 - 7 years 192,846
Manufacturers 2 9.75% - 14.75% 4 - 15 years 199,440
Medical Clinic 2 10.00% - 15.00% 4 - 15 years 104,413
Sporting Goods 2 14.00% - 15.00% 4 years 69,688
Herbs 2 19.75% - 14.25% 4 - 5 years 250,000
Clothing Store 3 13.00% - 15.00% 4 - 5 years 130,206
Sandwich Shop 2 14.00% - 15.00% 4 years 71,840
Photo Shop 1 15.00% 4 years 31,332
Dental Lab 1 15.00% 4 years 31,402
Art Supply 1 15.00% 4 years 29,132
Bakery 1 14.00% 4 years 27,881
Contractor 1 14.50% 5 years 8,868
Laundromat 1 13.875% 10 years 13,619
---- ------------
56 $ 3,647,254
==== ============
</TABLE>
-13-
<PAGE>
UNITED CAPITAL INVESTMENT CORP.
SUPPLEMENTARY INFORMATION
PER SHARE DATA AND RATIOS
FOR THE FIVE YEARS ENDED
<TABLE>
<CAPTION>
December 31,
1997 1996 1995 1994 1993
------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C>
Per Share Data
Investment Income $ 2.55 $ 2.15 $ 2.36 $ 2.25 $ 2.49
Investment Expenses (2.15) (1.91) (1.84) (2.09) (2.30)
------ ------ ------ ------ ------
Net Investment Income .40 .24 .52 .16 .19
Net Realized and Unrealized Gains
and Losses on Securities (.39) -- -- (.09) (.11)
Dividends (.18) (.44) (.17) (.09) --
Gain on Repurchase of Preferred Stock -- -- -- -- 2.98
------ ------ ------ ------ ------
Net Increase/Decrease in Net Asset Value (.17) (.20) .35 (.02) 3.06
Net Asset Value - Beginning of Period $10.62 $10.82 $10.47 $10.49 $ 7.43
------ ------ ------ ------ ------
Net Asset Value - End of Year $10.45 $10.62 $10.82 $10.47 $10.49
====== ====== ====== ====== ======
Ratios
Ratio of Expenses to Average Net Assets 20.4% 17.9% 17.2% 20.9% 25.5%
====== ====== ====== ====== ======
Ratio of Net Investment Income to
Average Net Assets 3.8% 2.2% 4.9% .6% 2.3%
====== ====== ====== ====== ======
</TABLE>
-14-
