SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.
FORM 10-Q
[X] QUARTERLY REPORT UNDER SECTION 13 OR 15 (d) OF
THE SECURITIES EXCHANGE ACT OF 1934
For the Quarterly Period Ended December 31, 1997
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF
THE SECURITIES EXCHANGE ACT OF 1934
Commission File Number 0-20514
CORPORATE RENAISSANCE GROUP, INC.
(Exact Name of Registrant as Specified in its Charter)
Delaware 13-3701354
[State or other jurisdiction of (I.R.S. Employer
incorporation or organization] Identification Number)
1185 Avenue of the Americas
18th Floor
New York, New York 10036
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (212) 730-2000
__________________________________________________________
Former name, former address and fiscal year, if changed since last report
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 such shorter period that the registrant was required
to file such reports), and (2) has been subject to such filing requirements for
the past 90 days. Yes [X] No [ ]
The number of shares outstanding of the Registrant's common stock is 940,350 (as
of February 10, 1998).
<PAGE>
CORPORATE RENAISSANCE GROUP, INC.
INDEX
Page
PART I - FINANCIAL INFORMATION
ITEM 1.
Statements of Assets and Liabilities
as of December 31, 1997 and
September 30, 1997 3
Statements of Operations and Changes
in Net Assets for the Quarter ended
December 31, 1997 and December 31, 1996 4
Statements of Cash Flows for the Quarters ended
December 31, 1997 and December 31, 1996 5
Schedule of Investments, December 31, 1997 6
Notes to Financial Statements 7
ITEM 2.
Management's Discussion and Analysis of Financial
Condition and Results of Operations 12
PART II - OTHER INFORMATION
<PAGE>
CORPORATE RENAISSANCE GROUP, INC.
STATEMENTS OF ASSETS AND LIABILITIES
(Unaudited)
<TABLE>
<CAPTION>
December 31, September 30,
1997 1997
<S> <C> <C>
ASSETS
Investments in securities, at market value
(cost $5,123,873 and $6,411,446 respectively) $4,742,899 $6,639,114
Cash and cash equivalents 2,985,310 950,692
Income taxes receivable 33,132 9,755
Accrued interest receivable 3,548 1,204
Other assets 39,247 3,997
_________________________
Total Assets 7,804,136 7,604,762
LIABILITIES
Deferred fees 20,892 29,845
Accounts payable and accrued expenses 37,428 25,960
Deferred taxes payable 49,405 --
_________________________
Total liabilities 107,725 55,805
_________________________
Net assets $7,696,411 $7,548,957
_________________________
NET ASSETS
Common stock, (par value $.01
per share 20,000,000 shares
authorized: 940,350 and 956,100
shares issued and outstanding,
respectively) $ 9,404 $ 9,404
Additional paid-in capital 7,690,280 7,690,280
Accumulated income (losses):
Accumulated net operating loss
before security transactions (726,790) (1,457,085)
Accumulated net realized gains
from sale of investments 1,236,240 1,210,438
Net unrealized appreciation
of investments (512,723) 95,920
_________________________
(3,273) (150,727)
_________________________
Net assets $7,696,411 $7,548,957
_________________________
Net asset value per share of
common stock outstanding $ 8.18 $ 8.03
_________________________
See notes to financial statements
</TABLE>
<PAGE>
CORPORATE RENAISSANCE GROUP, INC
STATEMENTS OF OPERATIONS AND CHANGES IN NET ASSETS
(Unaudited)
<TABLE>
<CAPTION>
For the For the
Quarter Quarter
Ended Ended
December December
31, 1997 31, 1996
<S> <C> <C>
Income:
Dividend $830,967 --
Fee 8,954 --
Interest 8,053 5,194
__________ __________
Total income 847,974 5,194
__________ __________
Expenses:
Financial advisory 50,000 50,000
Investment banking -- 8,333
Professional 12,300 12,300
Insurance 11,750 14,000
Board of directors 12,500 12,500
Other operating 3,035 3,530
__________ __________
Total expenses 89,585 100,663
__________ __________
Operating income/(loss)
before income tax benefit 758,389 (95,469)
Income tax (expense) benefit (28,094) 33,703
__________ __________
Net operating income/(loss)
before security transactions 730,295 (61,766)
__________ __________
NET REALIZED AND
UNREALIZED GAINS FROM
INVESTMENTS:
Net realized gains/(losses)
from sales of investments 27,533 (428,754)
Change in net unrealized
Appreciation/(depreciation) of
investments (608,643) 749,285
Income tax expense arising from
net realized gains/(losses) and net
unrealized appreciation/(depreciation)
of investments (1,731) (113,156)
__________ __________
Net realized and unrealized gains/(losses)
on investments (582,841) 207,375
__________ __________
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS $147,454 $145,609
__________ __________
Net assets at beginning of period $7,548,957 $9,236,869
Net decrease in net assets resulting
from treasury stock purchases -- (125,137)
__________ __________
Net assets at end of period $7,696,411 $9,257,341
__________ __________
Per Share Data:
Net operating gain/(loss) before security transactions $ .94 $ (.07)
Net realized (losses) from sales of investments (.14) (.29)
Net unrealized (depreciation)/appreciation of investments (.65) .51
Net gain on treasury stock transactions -- .03
__________ __________
Net increase in net asset value resulting from operations .15 .18
__________ __________
Net asset value per common share at beginning of period 8.03 9.66
__________ __________
Net asset value per common shares at end of period $ 8.18 $ 9.84
__________ __________
See notes to financial statements
</TABLE>
<PAGE>
CORPORATE RENAISSANCE GROUP, INC.
STATEMENTS OF CASH FLOWS
(Unaudited)
<TABLE>
<CAPTION>
For the For the
Quarter Quarter
Ended Ended
12/31/97 12/31/96
<S> <C> <C>
Cash Flows from Operating Activities:
Net increase in net assets
resulting from operations $147,454 $145,609
Adjustments to reconcile net increase/
(decrease) in net assets resulting from
operations to net cash (used in)/provided
by operating activities:
Change in net unrealized appreciation
of investments 608,642 (749,285)
Realized (gains)/losses from sale of
investments (27,533) 428,754
Deferred income tax provision -- 79,453
(Increase) decrease in operating assets:
Income taxes receivable (23,377) 1,359
Accrued interest receivable (2,344) 491
Other assets (35,250) (32,999)
Increase (decrease) in operating liabilities:
Deferred liability (8,953) --
Income taxes payable 49,405 --
Accounts payable and accrued expenses 11,468 (7,690)
____________ __________
Net cash flows (used in) operating activities 719,512 (134,308)
____________ __________
Cash Flows from Investing Activities:
Purchase of securities (741,320) (237,201)
Proceeds from recapitalized investment 2,018,107 --
Proceeds from sale of securities 38,319 --
____________ __________
Net cash flows provided by/(used in)
investing activities 1,315,106 (237,201)
____________ __________
Cash Flows from Financing Activities:
Purchase of treasury stock -- (125,137)
____________ __________
Net cash flows (used in) financing activities -- (125,137)
____________ __________
Net increase/(decrease) in cash
and cash equivalents 2,034,618 (496,646)
Cash and Cash Equivalents, at the
beginning of the period 950,692 509,257
____________ __________
Cash and Cash Equivalents, at the
end of the period $2,985,310 $12,611
____________ __________
Supplemental Disclosure:
Income taxes paid, net $ 3,797 $(1,359)
____________ __________
See notes to financial statements
</TABLE>
<PAGE>
CORPORATE RENAISSANCE GROUP, INC.
SCHEDULE OF INVESTMENTS (1)
DECEMBER 31, 1997
<TABLE>
<CAPTION>
Shares or Type of Issue Original Market % of Net
Face and Cost Value Assets
Value Name of Issuer
<C> <S> <C> <C> <C>
Reorganized Companies
Common Stock
607,400 Computervision Corporation (2) $3,182,038 $2,315,713 30.1%
453,620 CVSI Acquisition Co., L.L.C. (3) 453,620 453,620 5.9%
7,930 Seaman Furniture - Class A 158,059 212,519 .3%
25,112 Seaman Furniture - Class B 500,525 672,984 8.7%
______________ ____________
Total Reorganized Companies 4,294,242 3,654,836
Other Investments
Common Stock
10,007 Tenet Healthcare Corp. 88,311 331,482 4.3%
1,533,000 Signet Group Plc 741,320 756,581 9.8%
Total Other Investments 829,631 1,088,063
______________ ____________
Total Investments $5,123,873 $4,742,899
___________________________
(1) Notes to Schedule of Investments:
The listed investments are non-income producing. Equity investments that
have not paid dividends within the last twelve months are considered to be non-
income producing, except for Seamans Furniture described in Note 9. See Note 1.
(2) Company merged with Parametric Technology Corporation on January 12, 1998.
See Note 10.
(3) Represents a beneficial interest in 453,620 shares of CVSI Inc., which is
not considered to be a readily marketable security.
</TABLE>
<PAGE>
CORPORATE RENAISSANCE GROUP, INC.
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1997
1. Organization and Operation of the Company
Corporate Renaissance Group, Inc. (the "Company") was incorporated under
the laws of the State of Delaware on June 19, 1992. The Company is a non-
diversified, closed-end investment company which has elected to be treated as a
business development company under the Investment Company Act of 1940, as
amended by the Small Business Incentive Act of 1980. The Company offers
investors the opportunity to participate in investments in companies which the
Company believes have viable existing businesses generating substantial revenues
in established markets, and have recently completed or are in the process of
undergoing financial restructuring ("Reorganized Companies") and where, as a
result, the Company can ultimately obtain an equity position at a discount from
market value for comparable companies that are not financially troubled. The
Company's investments are generally not expected to produce meaningful levels of
investment income. It is the Company's objective to select investment
opportunities which the Company believes offer the potential for substantial
capital appreciation.
The Company completed its initial public offering and commenced operations
on November 1, 1994. The Company consummated the initial public offering (the
"Domestic Offering") and an overseas offering (the "Overseas Placement") of
956,000 shares at $10.00 per share. Pursuant to the Domestic Offering, 600,000
shares were sold; 356,000 shares were sold in the Overseas Placement (including
45,000 shares sold to Union d'Etudes et d'Investissments ("UI")). The net
proceeds to the Company of both the Domestic Offering and Overseas Placement
were $7,823,821 after deducting all costs associated with the registration and
offering, resulting in an initial net asset value per share of $8.18.
On November 25, 1996, the Company's Board of Directors authorized the
implementation of an open market share repurchase program, pursuant to which the
Company, from time to time, may purchase up to an aggregate of 175,000 shares of
its common stock in open market transactions. The purpose of the program is to
provide stockholders desiring to sell their shares with enhanced market
liquidity. At the same time, the Company believes that open-market purchases of
its shares at a discount from net asset value will enhance long-term shareholder
value. As of December 31, 1997, 15,750 shares have been repurchased at an
average cost of $7.93 per share.
2. Significant Accounting Policies
a. Valuation of Securities
The Company's securities which are subject to last-sale reporting are
valued by reference to the market price on a national securities exchange or as
reported on the National Association of Securities Dealers Automated Quotation
System. Other unlisted securities are valued at representative "bid" quotations
if held long by the Company and representative "asked" quotations if held short
by the Company. The value of securities for which market quotations are not
readily available and securities as to which the Company believes the method of
valuation set forth above does not fairly reflect market value are determined by
one or more independent third parties selected by the Investment Adviser.
<PAGE>
b. Recognition of Security Transactions and Related Investment Income
Security transactions are recorded on the date the order to buy or sell is
executed (the trade date). Dividend income is recognized on the ex-dividend
date and interest income is recognized on an accrual basis. The net realized
gains and losses on sales of securities are determined on a first-in, first-out
or specific identification basis.
c. Income Taxes
The Company is not entitled to the special treatment available to regulated
investment companies and is taxed as a regular corporation for federal and state
income tax purposes. The Company has accounted for income taxes in accordance
with FASB Statement No. 109, "Accounting for Income Taxes." The aggregate cost
of securities at December 31, 1997 for federal income tax purposes and financial
reporting purposes was the same.
d. Cash and Cash Equivalents
For the purpose of reporting cash flows, cash and cash equivalents consist
of cash and short-term interest-bearing deposits.
e. Use of Estimates
The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the amounts reported in the financial statements and
accompanying notes.
3. Income Taxes
The components of income tax (benefit) on pre-tax income $177,279 are as
follows:
Federal:
Current $ 46,708
Deferred (126,975)
(80,267)
State and Local:
Current (16,883)
Deferred (7,520)
(24,403)
Allowance for deferred tax asset 134,495
Total $ 29,825
<PAGE>
Deferred income taxes arise from temporary differences between the tax
basis of assets and liabilities and their reported amounts in the financial
statements. For example, unrealized gains or losses on investments are not
recognized for tax purposes until realized and therefore create a temporary
difference. As of December 31, 1997, there is no net deferred tax liablity.
A valuation allowance must be established to offset any portion of a
deferred tax asset which more likely than not will not produce a future benefit.
A valuation allowance in the amount of $134,495 was established as of December
31, 1997.
The Company's effective income tax rate and the U.S. federal statutory rate
are substantially the same. The benefit from the graduated federal tax rate is
offset by the state and local tax liability.
4. Financial Advisory Fees
The Company has retained M.D. Sass Investors Services, Inc. (the
"Investment Adviser") as the Company's investment adviser. The Investment
Adviser is a registered investment adviser under the Investment Advisers Act of
1940, as amended. The Investment Adviser is part of a group of affiliated
investment advisers and other affiliated entities comprising the M.D. Sass
organization ("M.D. Sass"). Upon completion of the Company's offering of its
common shares, the Company entered into a two-year Financial Advisory Agreement
with the Investment Adviser, pursuant to which the Investment Adviser receives a
base fee of $200,000 per annum, for furnishing the Company with administrative
services, including necessary executive, administrative, internal accounting and
support services. In addition to the base fee, the Investment Adviser will
receive an incentive fee for its investment advisory services equal to 20% of
the increase in net asset value of the Company's shares, as defined in the
Financial Advisory Agreement. There were no incentive fees earned or payable at
December 31, 1997.
5. Board of Directors Fees
The Company pays each of its five independent directors an annual fee of
$10,000 for the directors' services as such.
6. Investment Transactions
As of December 31, 1997 the accumulated unrealized appreciation on
investments was $380,974, consisting of $485,351 of gross unrealized
appreciation and $866,325 of gross unrealized depreciation.
7. Concentration of Credit Risk and Off-Balance Sheet Risk
The Company engages in security purchase and sale transactions with
regulated broker-dealers. In connection with these transactions, the Company
may be subject to credit risk in the event the counterparty or the Company's
regulated clearing brokers cannot fulfill their contractual obligations.
<PAGE>
The Company's activities with off balance sheet risk include the writing of
traded stock market index options. The Company is subject to market risk
associated with changes in the value of the underlying stock index. As a writer
of options, the Company receives a premium at the outset and then bears the risk
of unfavorable changes in the price of the stock index underlying the option.
There were no written options outstanding at December 31, 1997.
8. Investment in CVSI, Inc.
In July 1997, the Investment Adviser and certain of its affiliates,
including the Company (collectively, the "Buyer"), purchased a majority interest
in the Open Service Solutions business unit ("CVSI") of Computervision
Corporation ("Computervision"), through CVSI Acquisition Co., L.L.C., a newly
formed Delaware limited liability company. In the transaction, the Buyer paid
$7.6 million to Computervision for 76% of CVSI's Class A Voting Stock (the
"Class A Stock"). In addition, CVSI paid Computervision $25.0 million in cash
and issued Computervision a $10.0 million subordinated note (the "Subordinated
Note"). Further, Computervision retained its ownership of 24% of CVSI's Class A
Stock and 100% of CVSI's Class B Non-Voting Stock (the "Class B Stock"). The
Buyer also received options to purchase (i) the Class A Stock held by
Computervision should the Buyer retire the Subordinated Note within one year of
the transaction and (ii) the Class B Stock for $15.0 million. Moreover, if CVSI
does not achieve certain specified levels of product revenues and operating
margins from Computervision-initiated referrals, CVSI will have the option to
purchase, at a nominal price, some or all of the Class A Stock held by
Computervision. The Buyer is a principal stockholder of Computervision and
James B. Rubin, an executive officer and director of the Company, serves as a
director of Computervision.
In connection with the acquisition of CVSI, the Company received $89,535 of
investment banking fees and $35,814 of consulting fees. The consulting fees are
being amortized over a one-year period. As of December 31, 1997, $14,923 of
consulting income has been recognized. The Investment Adviser and certain of
its clients and affiliates who acquired shares of CVSI also received investment
banking and consulting fees.
9. Investment in Seaman Furniture Company, Inc.
In August 1997, Seaman Furniture Company, Inc. ("Seamans") entered into an
Agreement and Plan of Merger, as amended on September 4, 1997 (the "Merger
Agreement") with SFC Merger Company ("Newco"), a Delaware corporation formed and
wholly owned by the Investment Adviser and its affiliates (including the
Company), T. Rowe Price Recovery Fund, L.P. ("Price") and Carl Marks Management
Co., L.P. ("Marks," and collectively with the Investment Adviser and Price, the
"Funds"), pursuant to which the Funds will acquire through a merger (the
"Merger") all of the outstanding common stock of Seamans not already owned by
the Funds (the "Public Stock"). Upon consummation of the Merger, Newco merged
with and into Seamans and each share of Public Stock (other than dissenting
shares) was converted into the right to receive $25.05 in cash and each existing
Seamans stock option was converted into the right to receive $25.05 in cash per
share purchasable thereunder, less the exercise price with respect thereto,
other than certain options of officers of the Company which will be cancelled
and reissued as options of equivalent or greater value following the Merger.
Consummation of the Merger took place on December 23, 1997.
<PAGE>
Following consummation of the Merger, the Funds own all of the outstanding
shares of Seamans Common Stock of which approximately 47.5% is owned by the
Investment Adviser and its affiliates, including 4.1% by the Company. In
addition, 19.3% of Seamans Common Stock, on a fully diluted basis, was reserved
for issuance to certain officers and employees of Seamans upon the exercise of
options. The Funds have received a distribution of approximately $67.0 million
on the shares of Seamans held by them, of which approximately 30% represented a
dividend and the balance a distribution in return of capital. Approximately
$2.84 million of this distribution was received by the Company.
10. Subsequent Events
On November 4, 1997, Computervision Corporation ("CVN") and Parametric
Technology Corporation ("PTC") announced a definitive merger agreement under
which PTC will acquire CVN in a stock-for-stock transaction. Under the terms of
the Agreement, each share of CVN common stock will be exchanged for .0866 shares
(approximately 52,600 total shares) of PTC common stock. This transaction
closed on January 12, 1998.
<PAGE>
PART II - OTHER INFORMATION
Item 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations
This Report contains, in addition to historical information, forward-
looking statements regarding Corporate Renaissance Group, Inc. (the "Company"),
which represents the Company's expectations or beliefs including, but not
limited to, statements concerning the Company's operations, performance,
financial condition, business strategies and other information. For this
purpose, any statements contained in this Report that are not statements of
historical fact may be deemed to be forward-looking statements. Without
limiting the generality of the foregoing, words such as "may," "will," "expect,"
"believe," "anticipate," "intend," "could," "estimate," or "continue" or the
negative or other variations thereof or comparable terminology are intended to
identify forward-looking statements. The statements by their nature involve
substantial risk and uncertainties, certain of which are beyond the Company's
control, and actual results may differ materially depending on a variety of
important factors, including those described in this Report and the Company's
other filings with the Securities and Exchange Commission (the "Commission").
Liquidity and Capital Resources
The Company is a non-diversified, closed-end management investment company
which has elected to be treated as a special type of investment company known as
a business development company under the Investment Company Act of 1940 (the
"1940 Act") as amended by the Small Business Act of 1980. The Company's primary
investment objective is to achieve long-term capital appreciation through
investments in companies ("Portfolio Investments") which the Company believes
have viable existing businesses generating substantial revenues in established
markets, but which have recently completed, are in the process of undergoing or
are likely to undergo a financial restructuring pursuant to bankruptcy or
reorganization proceedings or on a negotiated basis outside of bankruptcy or
reorganization proceedings and where, as a result, the Company can ultimately
obtain an equity position (either common or preferred stock) at a discount from
market value for comparable companies that are not financially troubled. Such
investments are not generally available to the public because they require large
financial commitments and, in some cases, managerial assistance. The Company
may make these investments either on its own or, more likely, jointly with other
investors, including investment partnerships managed or advised by M.D. Sass
Investors Services, Inc. (the "Investment Adviser") and its affiliates. Any
investments with affiliates of the Company will be subject to restrictions under
the 1940 Act and conditions set forth in an exemptive order granted by the
Commission in November 1994. A portion of the Company's portfolio is invested
in other securities, including securities of financially distressed companies,
where the Company believes that it can generate capital appreciation by engaging
in portfolio trading.
<PAGE>
The Company has retained the Investment Adviser as the Company's investment
adviser to identify, negotiate, manage and liquidate investments for the
Company. The Company invests only in transactions recommended by the Investment
Adviser. The activities of the Investment Adviser on behalf of the Company are
subject to supervision by the independent directors of the Company.
As described in Note 9 to the Financial Statements included in Item 1 of
this Report, during the quarter ended December 31, 1997, the Company received a
distribution of approximately $2,840,000 in connection with a "going private"
transaction involving Seaman Furniture Company, Inc. ("Seamans"), one of the
Company's Portfolio Investments. In addition, as described in Note 10 to the
Financial Statements included in Item 1 of this Report, during the quarter ended
December 31, 1997, Computervision Corporation, another of the Company's
Portfolio Investments, agreed to be acquired by Parametric Technology
Corporation in a stock-for-stock transaction. Such transaction was consummated
in January 1998.
The Company's primary source of working capital is funds generated from
investment activities. At December 31, 1997, the Company had cash and cash
equivalents of $2,985,310, as compared to cash and cash equivalents of $950,692
at September 30, 1997. The increase in cash and cash equivalents was a result
of the distribution received on the Company's Portfolio Investment in Seamans as
described above.
In addition, on November 25, 1996, the Company's Board of Directors
authorized the implementation of an open market share repurchase program,
pursuant to which the Company, from time to time, may purchase up to an
aggregate of 175,000 shares of its Common Stock in open market transactions. As
of December 31, 1997, the Company had purchased 15,750 shares pursuant to this
program at an average cost of $7.93 per share. In January 1988, the Company
purchased an additional 10,000 shares pursuant to this program at an average
cost of $5.875 per share.
Results of Operations
Quarter ended December 31, 1997 as compared to quarter ended December 31,
1996
During the quarter ended December 31, 1997, the Company had interest income
of $8,053, as compared to interest income of $5,194 in the 1996 quarter. During
the 1997 quarter, the Company also realized a distribution of $830,967 from its
Portfolio Investment in Seamans and $8,954 in investment banking and consulting
fees relating to another Portfolio Investment. Operating expenses during the
1997 quarter were $89,585, as compared to $100,663 in the 1996 quarter. This
decrease is primarily attributable to fees payable to an investment banking firm
accrued during the 1996 quarter pursuant to an Investment Banking Agreement
which expired in October 1996. For the quarter ended December 31, 1997, the
Company had operating pre-tax income and operating income after a $127,757
income tax benefit of $758,389 and $886,146, respectively, as compared to a pre-
tax loss and net operating loss for the 1996 quarter of $95,469 and $61,766,
respectively. The pre-tax and net income earned in the 1997 quarter was
attributable to the distribution realized during the quarter on the Portfolio
Investment in Seamans. Since the Company typically does not purchase securities
with the objective of generating investment income, net investment losses are
expected to routinely occur.
<PAGE>
During the quarter ended December 31, 1997, the Company had net realized
gains from sale of investments of $27,533, as opposed to net realized losses
from sale of investments of $428,754 during the 1996 quarter. For the quarter
ended December 31, 1997, the Company had net unrealized depreciation of
investments of $608,643, as compared to net unrealized appreciation of
investments of $749,285 in the 1996 quarter. For the 1997 quarter, the Company
had net realized and unrealized losses on investments of $738,692, as compared
to net realized and unrealized losses on investments of $207,375 for the 1996
quarter and, after giving effect to net operating losses, an increase in net
assets resulting from operations of $147,454 in the 1997 quarter, as compared to
an increase in net assets resulting from operations of $145,609 in the 1996
quarter.
Net Asset Value
At December 31, 1997, the Company had a net asset value of $8.18 per share
of Common Stock, an increase of $.15 per share from net asset value at September
30, 1997 of $8.03 per share.
<PAGE>
PART II - OTHER INFORMATION
1. Legal Proceedings
Not applicable.
2. Changes in Securities
Not applicable.
3. Default Upon Senior Securities
Not applicable.
4. Submission of Matters to a Vote of Security Holders
Not applicable.
5. Other Information
Not applicable.
6. Exhibits and Reports on Form 8-K
(a) Exhibit 27 - Financial Data Schedule (SEC use only)
(b) Reports on Form 8-K - None.
<PAGE>
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.
Date: February 12, 1998 CORPORATE RENAISSANCE GROUP, INC.
By: /s/Martin D. Sass
Martin D. Sass, Chairman of the Board
and Chief Executive Officer
By: /s/Martin E. Winter
Martin E. Winter, Secretary-Treasurer
(Principal Financial and Accounting Officer)
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> SEP-30-1997
<PERIOD-END> DEC-31-1997
<CASH> 2985310
<SECURITIES> 4742899
<RECEIVABLES> 36680
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 39247
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 7804136
<CURRENT-LIABILITIES> 107725
<BONDS> 0
0
0
<COMMON> 9404
<OTHER-SE> 7687007
<TOTAL-LIABILITY-AND-EQUITY> 7696411
<SALES> 0
<TOTAL-REVENUES> 266864
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 89585
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 177279
<INCOME-TAX> 29825
<INCOME-CONTINUING> 147454
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 147454
<EPS-PRIMARY> .15
<EPS-DILUTED> 0
</TABLE>
