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FORM 10-Q.--QUARTERLY REPORT UNDER SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
(As last amended in Rel. No. 31326, eff. 10/22/92.)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark One)
[X] Quarterly Report Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
For the period ended September 30, 1996
or
[ ] Transition Report Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
For the transition period from ________to________
Commission File Number: 33-26327
RAINES ROAD, L.P.
(Exact name of Registrant as specified in its charter)
Delaware 62-1375245
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification)
4400 Harding Road, Suite 500, Nashville, Tennessee 37205
(Address of principal executive office) (Zip Code)
(615) 292-1040
(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 at least the past 90 days.
YES X NO
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PART 1. FINANCIAL INFORMATION
Item 1. Financial Statement.
RAINES ROAD, L.P.
(A Delaware Limited Partnership)
FINANCIAL STATEMENTS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1996
INDEX
Financial Statements
Balance Sheets 3
Statements of Operations 4
Statements of Cash Flows 5
Notes 6
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<TABLE>
RAINES ROAD, L.P.
(A Limited Partnership)
BALANCE SHEETS
(Unaudited)
<CAPTION>
ASSETS
September 30, December 31,
1996 1995
<S> <C> <C>
CASH $ 41,371 $175,779
RESTRICTED CASH 139,358 139,358
ESCROW DEPOSITS 16,329 16,329
LAND AND LAND IMPROVEMENTS 5,856,861 5,856,226
LOAN COSTS - 7,981
Total Assets $6,053,919 $ 6,195,673
=========== ==========
LIABILITIES AND PARTNERS' EQUITY
NOTE PAYABLE TO AFFILIATE $4,700,000 $4,700,000
ACCRUED INTEREST PAYABLE TO
AFFILIATE 2,554,434 2,131,434
ACCOUNTS PAYABLE 34,866 1,235
NOTE PAYABLE (Private) - 100,000
Accrued Interest Payable
(Private) - 2,420
PARTNERS' (deficit) EQUITY (1,235,381) (739,416)
Total Liabilities &
Partners' Equity $6,053,919 $6,195,673
========== ==========
<FN>
See notes to financial statements.
/TABLE
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<TABLE>
RAINES ROAD, L.P.
(A Limited Partnership)
STATEMENTS OF OPERATIONS
(Unaudited)
<CAPTION>
Quarter to Date Year to Date
Ending September 30,
1996 1995 1996 1995
<S> <C> <C> <C> <C>
REVENUES:
Interest $1,749 1,182 9,050 26,467
------ ------ ------ ------
Total Revenues 1,749 1,182 9,050 26,467
EXPENSES:
Property Tax & Penalties 33,697 24,476 31,889 49,593
Interest 141,000 155,255 427,571 460,824
Program Management Fees 750 750 2,250 2,250
Professional Services 9,341 3,210 29,890 20,065
Land Maintenance 275 - 2,725 -
Amortization - 5,985 7,981 17,955
Administrative Expenses 300 4,634 2,709 8,807
Total Expenses 185,363 194,310 505,015 559,494
Net Earnings (183,614)(193,128)(495,965)(533,027)
======= ======== ======= =======
<FN>
See notes to financial statements.
/TABLE
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<TABLE>
RAINES ROAD, L.P.
(A Limited Partnership)
STATEMENTS OF CASH FLOWS
(Unaudited)
<CAPTION>
Nine Months Ended
September 30,
1996 1995
<S> <C> <C>
Cash flows from operating activities:
Net Loss $ (495,965) (533,027)
Adjustments to reconcile net
earnings to net cash used
in operating activities:
Amortization 7,981 17,955
Interest incurred on Note
Payable-Affiliate 423,000 427,700
Interest incurred on Note
Payable-Private - 33,124
Payments on Interest pay-Affiliate - (600,000)
Payments on Interest Pay- Private (2,420) (22,578)
Change in accrued
property taxes - (15,878)
Change in Escrow deposits - -
Change in other assets:
Loan Costs - -
Cash received on Note Rec. - 646,400
Cash received on Interest
receivable - 7,650
Change in accounts payable 33,631 (130,705)
------- --------
Total Adjustments 462,192 363,668
Net cash used in operating activities (33,773) (169,359)
Cash flows from investing activities
Cost of Land Improvements (635) -
Cash flows from financing activities
Payments on Note Payable (100,000) -
NET CHANGE IN CASH (134,408) (169,359)
CASH AT JANUARY 1, 175,779 788,045
CASH AT SEPTEMBER 30, 41,371 618,686
<FN>
See notes to financial statements.
/TABLE
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RAINES ROAD, L.P.
(A Limited Partnership)
NOTES TO THE FINANCIAL STATEMENTS
For the Nine Months Ended September 30, 1996
(Unaudited)
A.ACCOUNTING POLICIES
The unaudited financial statements presented herein have been
prepared in accordance with the instructions to Form 10-Q and do
not include all of the information and note disclosures required
by generally accepted accounting principles. These statements
should be read in conjunction with the financial statements and
notes thereto included in the Partnership's Form 10-K for the
year ended December 31, 1995. In the opinion of management such
financial statements include all adjustments, consisting only of
normal recurring adjustments, necessary to summarize fairly the
Partnership's financial position and results of operations. The
results of operations for the nine month period ended September
30, 1996 may not be indicative of the results that may be
expected for the year ending December 31, 1996.
B.RELATED PARTY TRANSACTIONS
The General Partner and its affiliates have been actively
involved in managing the property as described in the Prospectus
dated April 3, 1989. Compensation earned for these services for
the first six months were as follows:
1996 1995
Program Management Fee 2,250 2,250
Accounting Fees 1,600 1,500
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Item 2.Management's Discussion and Analysis of Financial
Condition and Results of Operations
There have been no sales during the first nine months of 1996.
Overall operations of the Registrant are comparable to prior
quarters with the following exceptions. Interest income has
decreased due to the collection of the Note Receivable during
the first quarter 1995. The reduction in interest expense is
due to the retirement of the note payable private in May 1996.
Financial Condition and Liquidity
As of October 31, 1996, the Registrant had $ 41,192 in cash
reserves. The General Partners believe that this amount is
sufficient to cover all development and operating needs of the
Registrant for the next year.
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Part II. OTHER INFORMATION
Item 6.Exhibits and Reports on Form 8-K
(a) Exhibit 27 - Financial Data Schedule
(b) No 8-K's have been filed during this quarter.
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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.
RAINES ROAD, L.P.
By: 222 RAINES LTD.
General Partner
Date: August 14, 1996 By: /s/ Steven D. Ezell
General Partner
By: 222 PARTNERS, INC.
General Partners
Date: August 14, 1996 By: /s/ Michael A. Hartley
Secretary/Treasurer
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<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> SEP-30-1996
<CASH> 41,371
<SECURITIES> 139,358
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 5,856,861
<DEPRECIATION> 0
<TOTAL-ASSETS> 6,053,919
<CURRENT-LIABILITIES> 34,866
<BONDS> 4,700,000
0
0
<COMMON> 0
<OTHER-SE> (1,235,381)
<TOTAL-LIABILITY-AND-EQUITY> 6,053,919
<SALES> 9,050
<TOTAL-REVENUES> 9,050
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 77,444
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 427,571
<INCOME-PRETAX> (495,965)
<INCOME-TAX> 0
<INCOME-CONTINUING> (495,965)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (495,965)
<EPS-PRIMARY> (264.51)
<EPS-DILUTED> 0
</TABLE>
