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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, 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)
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 AND SIX MONTHS ENDED JUNE 30, 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
June 30, December 31,
2000 1999
<S> <C> <C>
CASH $ 40 $ 5,129
RESTRICTED CASH 143,642 143,642
ACCOUNTS RECEIVABLE
FROM AFFILIATES 8,500 2,100
LAND AND IMPROVEMENTS
HELD FOR INVESTMENT 5,599,928 5,599,928
Total Assets $ 5,752,110 $ 5,750,799
LIABILITIES AND PARTNERS' DEFICIT
NOTE PAYABLE TO AFFILIATE $4,700,000 $ 4,700,000
ACCRUED INTEREST PAYABLE TO
AFFILIATE 3,923,634 3,641,634
ACCOUNTS PAYABLE & ACCRUED
EXPENSES 29,790 29,790
ACCRUED PROPERTY TAXES 194,813 132,255
Total Liabilities 8,848,237 8,503,679
PARTNERS' DEFICIT:
Limited Partners ( 1,875 units
outstanding) (3,096,127) (2,752,880)
General Partner - -
Total Partners' deficit (3,096,127) (2,752,880)
Total Liabilities &
Partners' Deficit $5,752,110 $ 5,750,799
========== =========
<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 SIX MONTHS ENDED
June 30,
2000 1999 2000 1999
<S> <C> <C> <C> <C>
REVENUES:
Interest $ - $ - $ - $ -
------ ------ ------ ------
Total Revenues - - - -
EXPENSES:
Property Taxes 31,278 28,681 39,347 57,362
Interest 141,000 141,000 282,000 282,000
Property Management Fees 750 750 1,500 1,500
Legal and Accounting Fees 7,843 7,975 12,149 10,375
Other Administrative
Expenses 7,739 627 8,251 727
Total Expenses (188,610) 179,033 343,247 351,964
Net Loss $(188,610) $(179,033) $(343,247)$(351,964)
Net Loss per limited
partner unit $ (100.59) $(95.48) $ (183.07) $(187.71)
<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>
Six Months Ended
June 30,
2000 1999
<S> <C> <C>
Cash flows from operating activities:
Net Loss $ (343,247) $ (351,964)
Adjustments to reconcile net
loss to net cash used
in operating activities:
Increase Due From Affiliates (6,400) -
Increase in accrued interest payable 282,000 284,200
Decrease in accounts payable &
Accrued Expenses - (46,498)
Increase in Accrued Property Taxes 62,558 -
Net Cash used in
operating activities (5,089) (114,262)
NET DECREASE IN CASH (5,089) (114,262)
CASH AT JANUARY 1, 5,129 114,342
CASH AT JUNE 30, $ 40 $ 80
Supplelmental Disclosures of Cash Flow information:
Cash paid during the year for interest $ - $ 4,400
<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 and Six Months Ended June 30, 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 results of operations
for the six month period ended June 30, 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 six months were as follows:
2000 1999
Property Management Fees $ 1,500 $ 1,500
Accounting Fees 7,827 1,800
C. COMPREHENSIVE INCOME
During the three and six month periods ended June 30, 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
There have been no sales during the first six months of 2000
or 1999. Overall operations of the Registrant are comparable to
prior quarters, except for other administrative expenses and
property tax. Other administrative expenses in 2000 include
estimated Tennessee franchise and excise tax of $7,000. Due to new
legislation in Tennessee, partnerships were required to pay
franchise and excise tax beginning January 1, 2000. The decrease
in property tax for 2000 is due to a refund of contested 1999
property taxes of approximately $23,000 received in the first
quarter.
Financial Condition and Liquidity
As of June 30, 2000, the Registrant had $ 40 in cash reserves.
This balance is not sufficient to meet the operating needs of the
Registrant. Unless there are property sales, the General Partner
is expected to assist the Registrant in meeting operational needs
through affiliated loans as it has recently done.
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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 8, 2000 By: /s/ Steven D. Ezell
General Partner
By: 222 PARTNERS, INC.
General Partners
Date: August 8, 2000 By: /s/ Michael A. Hartley
Secretary/Treasurer
