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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 June 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 SIX MONTHS ENDED June 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
June 30,December 31,
1996 1995
<S> <C> <C>
CASH $ 50,288 $175,779
RESTRICTED CASH 139,358 139,358
ESCROW DEPOSITS (NOTE C) 16,329 16,329
LAND AND LAND IMPROVEMENTS 5,856,861 5,856,226
LOAN COSTS - 7,981
Total Assets $6,062,836 $ 6,195,673
=========== ==========
LIABILITIES AND PARTNERS' EQUITY
NOTE PAYABLE TO AFFILIATE $4,700,000 $4,700,000
ACCRUED INTEREST PAYABLE TO
AFFILIATE 2,413,434 2,131,434
ACCOUNTS PAYABLE 1,168 1,235
NOTE PAYABLE (Private) - 100,000
Accrued Interest Payable
(Private) - 2,420
PARTNERS' (deficit) EQUITY (1,051,766) (739,416)
Total Liabilities &
Partners' Equity $6,062,836 $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 June 30,
1996 1995 1996 1995
<S> <C> <C> <C> <C>
REVENUES:
Interest $5,568 17,761 7,300 25,285
------ ------ ------ ------
Total Revenues 5,568 17,761 7,300 25,285
EXPENSES:
Property Tax & Penalties - 23,355 - 25,117
Interest 142,580 153,689 286,571 305,569
Program Management Fees 750 750 1,500 1,500
Professional Services 12,172 1,598 20,548 11,503
Land Maintenance - (3,277) 2,450 7,664
Amortization 1,995 950 7,981 1,900
Administrative Expenses 1,081 20 600 1,859
Total Expenses 158,578 182,120 319,650 365,182
Net Earnings (153,010)(164,359)(312,350)(339,897)
======= ======== ======= =======
<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>
Six Months Ended
June 30,
1996 1995
<S> <C> <C>
Cash flows from operating activities:
Net Loss (312,350)(339,897)
Adjustments to reconcile net
earnings to net cash used
in operating activities:
Amortization 7,981 11,970
Interest incurred on Note
Payable-Affiliate 282,000 283,567
Change in accrued
property taxes - (15,742)
Interest incurred on Note
Payable-Private 4,571 22,002
Payments on accrued
interest payable
-Affiliate - (600,000)
Change in Escrow deposits - -
Change in other assets:
Loan Costs (6,991) -
Cash received on Note Rec. - 646,400
Cash received on Interest
receivable - 7,650
Change in accounts payable (67)(131,006)
------- --------
Total Adjustments 287,494 202,262
Net cash used in
operating activities (24,856)(137,635)
Cash flows from investing activities
Cost of Land Improvements (635) -
Cash flows from financinf activities
Payments on Note Payable (100,000) -
NET CHANGE IN CASH (125,491)(137,635)
CASH AT JANUARY 1, 175,779 788,045
CASH AT JUNE 30, 50,288 650,410
<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 Six Months Ended June 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 six month
period ended June 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. Compensation earned for
these services for the first six months were as follows:
1996 1995
Program Management Fee 1,500 1,500
C. ESCROW DEPOSITS
The Escrow Deposit represents a certificate of deposit
reserved for development work. This deposits is assigned
to Memphis, Light, Gas, and water.
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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 six 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
Phase III development, which includes construction and improvement
of Tchulahoma Road through the property is expected to begin this
year.
As of July 31, 1996, the Registrant had $ 49,726 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> 6-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> JUN-30-1996
<CASH> 50,288
<SECURITIES> 16,329
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 5,856,861
<DEPRECIATION> 0
<TOTAL-ASSETS> 6,062,836
<CURRENT-LIABILITIES> 1,168
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> (1,051,766)
<TOTAL-LIABILITY-AND-EQUITY> 6,062,836
<SALES> 0
<TOTAL-REVENUES> 7,300
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 319,650
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 286,571
<INCOME-PRETAX> (315,350)
<INCOME-TAX> 0
<INCOME-CONTINUING> (315,350)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (315,350)
<EPS-PRIMARY> (168.18)
<EPS-DILUTED> 0
</TABLE>
