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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, 2000
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 Statements
RAINES ROAD, L.P.
(A Delaware Limited Partnership)
FINANCIAL STATEMENTS
FOR THE THREE MONTHS ENDED MARCH 31, 2000 AND 1999
INDEX
Financial Statements
Balance Sheets 3
Statements of Operations 4
Statements of Cash Flows 5
Notes to Financial Statements 6
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<TABLE>
RAINES ROAD, L.P.
(A Limited Partnership)
BALANCE SHEETS
(Unaudited)
<CAPTION>
ASSETS
March 31, December 31,
2000 1999
<S> <C> <C>
CASH $ 23,364 5,129
RESTRICTED CASH 143,642 143,642
LAND AND IMPROVEMENTS
HELD FOR INVESTMENT 5,599,928 5,599,928
Total Assets $ 5,766,934 $ 5,748,699
LIABILITIES AND PARTNERS' DEFICIT
NOTE PAYABLE TO AFFILIATE $ 4,700,000 $ 4,700,000
ACCRUED INTEREST PAYABLE TO
AFFILIATE 3,777,034 3,639,534
ACCOUNTS PAYABLE & ACCRUED
EXPENSES 33,882 29,790
ACCRUED PROPERTY TAXES 132,255 132,255
Total Liabilities 8,643,171 8,501,579
PARTNERS' DEFICIT:
Limited Partners ( 1,875 units
outstanding) (2,876,237) (2,752,880)
General Partner - -
Total Partners' deficit (2,876,237) (2,752,880)
Total Liabilities &
Partners' Deficit $ 5,766,934 $ 5,748,699
========== =========
<FN>
See accompanying notes to financial statements.
</TABLE>
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<TABLE>
RAINES ROAD, L.P.
(A Limited Partnership)
STATEMENTS OF OPERATIONS
(Unaudited)
<CAPTION>
Three months ended
March 31,
2000 1999
<S> <C> <C>
REVENUES:
Interest $ - $ -
Total Revenues - -
EXPENSES:
Interest 141,000 141,000
Property Management Fees 750 750
Legal & Accounting 4,306 2,400
Property Taxes (23,211) 28,681
Other Administrative expenses 512 100
Total Expenses 123,357 172,931
Net Loss $ (123,357) $(172,931)
======== ========
<FN>
See accompanying 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,
2000 1999
<S> <C> <C>
Cash flows from operating activities:
Net Loss $ (123,357) $ (172,931)
Adjustments to reconcile net
loss to net cash used
in operating activities:
Increase in accrued
interest payable 141,000 137,700
Increase in due from affiliate(3,500)
Change in accounts payable
and accrued expenses 4,092 (75,178)
Net cash used in operating
activities 18,235 (110,409)
NET CHANGE IN CASH 18,235 (110,409)
CASH AT JANUARY 1, 5,129 114,342
CASH AT MARCH 31, $ 23,364 $ 3,933
<FN>
See accompanying 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, 2000 and 1999
(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, 1999. 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 esults of operations
for the three month period ended March 31, 2000 may not be
indicative of the results that may be expected for the year
ending December 31, 2000.
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:
2000 1999
Property Management Fee $ 750 $ 750
Accounting Fees 400 400
C. COMPREHENSIVE INCOME
During the first three month periods ended March 31, 2000 and
1999, the Partnership had no components of other comprehensive
income. Accordingly, comprehensive income for each of the
periods was the same as net loss.
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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,
2000.
There have been no sales during the first quarter of
2000.
Overall operations of the Registrant are comparable to
prior quarters with the following exception. The credit balance in
property tax expense is due to a refund of prior years taxes due to
the successful negotiation of the property tax appeal.
Financial Condition and Liquidity
As of April 30, 2000, the Registrant had $14,441 in
cash reserves. Operating expenses are primarily accounting fees
which includes audit and tax, and program management service fees.
The cash reserves are not sufficient to meet these expenses. If a
sale of property occurs, then funds will be available from sale
proceeds. The General Partner will assist the Registant in meeting
operational needs through affiliated loans as necessary.
Year 2000
In 1998, the Partnership initiated a plan ("Plan") to
identify, and remediate "Year 2000" issues within each of its
significant computer programs and certain equipment which contain
microprocessors. The Partnership divided the Plan into five major
phases-assessment, planning, conversion, implementation and
testing. The plan was completed in mid 1999. The total remediation
costs for the plan were not material to the operation or liquidity
of the partnerships. The Registrant had no significant operational
difficulties related to Year 2000 issue. Management does not
expect any issues or operational problems related to Year 2000
issues in the future.
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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 2000.
(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, 2000 By: /s/ Steven D. Ezell
General Partner
By: 222 PARTNERS, INC.
General Partners
Date: May 15, 2000 By: /s/ Michael A. Hartley
Secretary/Treasurer
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-2000
<PERIOD-END> MAR-31-2000
<CASH> 23,365
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 5,599,928
<DEPRECIATION> 0
<TOTAL-ASSETS> 5,772,534
<CURRENT-LIABILITIES> 33,882
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> (2,876,237)
<TOTAL-LIABILITY-AND-EQUITY> 5,772,534
<SALES> 0
<TOTAL-REVENUES> 0
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> (17,643)
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 141,000
<INCOME-PRETAX> (123,357)
<INCOME-TAX> 0
<INCOME-CONTINUING> (123,357)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (123,357)
<EPS-BASIC> (65.79)
<EPS-DILUTED> (65.79)
</TABLE>
