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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 March 31, 1997
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)
One Belle Meade Place, 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 THREE MONTHS ENDED MARCH 31, 1997
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
March 31, December 31,
1997 1996
<S> <C> <C>
CASH 32,199 41,633
RESTRICTED CASH 157,952
156,241
LAND AND LAND IMPROVEMENTS 5,856,861 5,856,861
Total Assets $6,047,012 $6,054,735
=========== ==========
LIABILITIES AND PARTNERS' EQUITY
NOTE PAYABLE TO AFFILIATE $4,700,000 $4,700,000
ACCRUED INTEREST PAYABLE TO
AFFILIATE 2,836,434 2,695,434
ACCOUNTS PAYABLE 46,817
46,751
PARTNERS' DEFICIT:
Limited Partners ( 1,875 units
outstanding) (1,536,239)
(1,387,450)
General Partner - -
Total Partners' deficit(1,536,239) (1,387,450)
Total Liabilities &
Partners' Equity $6,047,012
$6,054,735
========== ==========
<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 &
Year-to-Date
Ending March 31,
1997 1996
<S> <C> <C>
REVENUES:
Interest $233 $1,732
Total Revenues $233 $1,732
EXPENSES:
Interest 141,000 143,992
Program Management Fees 750 750
Professional Services 4,800 8,377
Amortization - 5,985
Other Administrative
Expenses 2,472 1,968
Total Expenses $149,022 $161,072
Net Earnings $(148,789) $(159,340)
======== ========
<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>
Three Months Ended
March 31,
1997 1996
<S> <C> <C>
Cash flows from operating activities:
Net earnings $(148,789) $(159,340)
Adjustments to reconcile net
earnings to net cash used
in operating activities:
Amortization - 5,985
Increase in Restricted Cash (1,711) -
Change in accrued
interest payable 141,000 143,992
Change in accounts payable 66 -
Total Adjustments 139,355 149,977
Net cash used in operating
activities (9,434) (9,363)
Cash flows from investing activities
Increase in Land Improvements - (635)
NET CHANGE IN CASH (9,434) (9,998)
CASH AT JANUARY 1, 41,633 175,779
CASH AT MARCH 31, $32,199 $165,781
<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 Three Months Ended March 31, 1997
(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, 1996. 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 three month period
ended March 31, 1997 may not be indicative of the
results that may be expected for the year ending
December 31, 1997.
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
three months were as follows:
<TABLE>
<CAPTION>
1997 1996
<S> <C><C>
Program Management Fee $750 $750
</TABLE>
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Item 2. Management's Discussion and Analysis of
Financial Condition and Results of Operations
Results of Operations for the Quarter Ended March 31,
1997
There have been no sales during the first quarter of
1997. The Registrant has a contract to sell
approximately 30 acres. The sale is expected to close in
May 1997. However, there are several contingencies for
the sale to close. Therefore, there can be no assurances
that the contingencies will be met and that the sale will
close.
Overall operations of the Registrant are comparable to
prior quarters with the following exception. Loan costs
were fully amortized in 1996 therefore there is no
expense in 1997.
Financial Condition and Liquidity
As of April 30, 1997, the Registrant had $25,269 in
cash reserves. The General Partners believe that this
amount is sufficient to cover 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) Exhibits
Exhibit 27 - Financial Data Schedule for the First
Quarter of 1997.
(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: May 15, 1997 By: /s/ Steven D. Ezell
General Partner
By: 222 PARTNERS, INC.
General Partners
Date: May 15, 1997 By: /s/ Michael A. Hartley
Secretary/Treasurer
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<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> MAR-31-1997
<CASH> 32199
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 5856861
<DEPRECIATION> 0
<TOTAL-ASSETS> 6047012
<CURRENT-LIABILITIES> 46817
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> (1536239)
<TOTAL-LIABILITY-AND-EQUITY> 6047012
<SALES> 0
<TOTAL-REVENUES> 233
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 8022
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 141000
<INCOME-PRETAX> (148789)
<INCOME-TAX> 0
<INCOME-CONTINUING> (148789)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (148789)
<EPS-PRIMARY> (79.35)
<EPS-DILUTED> (79.35)
</TABLE>
