FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the period ended January 31, 1997
OR
[] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OR 1934
For the transition period from N/A
Commission File Number 33-72106
THE FORECAST GROUP "Registered Tradename", L.P.
FORECAST "Registered Tradename" CAPITAL CORPORATION
(Exact Name of Registrant as specified in its charter)
California 33-0582072
California 33-0582077
(State of Organization) (IRS Employer Identification Number)
10670 Civic Center Drive, Rancho Cucamonga, California 91730
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (909) 987-7788
Securities Registered Pursuant to Section 12(b) of the Act:
Title of Each Class Name of Each Exchange on Which Registered
11 3/8% Senior Notes Due 2000 None
Securities Registered Pursuant to Section 12(g) of the Act:
None
Indicated by check mark whether the Registrant (1) has filed all
reports required to be filed by Sections 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 the past 90 days.
YES X NO___
There was no voting stock held by non-affiliates of the
Registrant at March 14, 1997. At March 14, 1997, Forecast "Registered
Tradename" Capital Corporation had 2,500 shares of Common stock outstanding.
<PAGE>
<TABLE>
THE FORECAST GROUP "Registered Tradename", L.P.
CONSOLIDATED BALANCE SHEETS
(Amounts in 000's)
January 31, October 31,
1997 1996
(unaudited)
-------- --------
<S> <C> <C>
Assets:
- -------
Cash and Cash Equivalents $5,883 $12,350
Accounts Receivable 375 466
Accounts and Notes Receivable,
Related Parties 3,583 5,239
Real Estate Inventory 73,992 80,760
Property and Equipment, Net 1,115 1,171
Other Assets 1,924 2,200
------- --------
Total Assets $86,872 $102,186
======= ========
Liabilities & Partners' Equity:
- -------------------------------
Accounts Payable $7,320 $11,443
Accrued Expenses 1,721 3,624
Notes Payable:
Senior Notes at 11 3/8% due
December 2000 29,075 34,475
Collateralized by
Real Estate Inventory 27,046 25,720
Other Notes Payable 1,700 --
------ ------
Total Notes Payable 57,821 60,195
------ ------
Total Liabilities 66,862 75,262
Partners' Equity 20,774 27,688
Less: Capital Notes Receivable
from Partners (764) (764)
------ ------
Net Partners' Equity 20,010 26,924
====== ======
Total Liabilities and
Partners' Equity $86,872 $102,186
======= ========
</TABLE>
[FN] See notes to consolidated financial statements.
<TABLE>
THE FORECAST GROUP "Registered Tradename", L.P.
CONSOLIDATED STATEMENTS OF OPERATIONS AND PARTNERS' EQUITY
(Unaudited)
(Amounts in 000's)
For the Three Months
Ended January 31
1997 1996
------ ------
<S> <C> <C>
Homebuilding Revenues $24,843 $26,510
Cost of Homes Sold 21,618 22,191
------- -------
Gross Profit 3,225 4,319
======= =======
Operating Expenses:
Selling & Marketing Expenses 3,176 3,039
General & Administrative Expenses 2,132 1,751
Non-Cash Charge for Impairment of
Real Estate Inventory 6,635 --
------ ------
Total Operating Expenses 11,943 4,790
------ ------
Operating Loss (8,718) (471)
Other Income (Expenses):
Interest Income 131 65
Other Income and Expenses 39 64
------ ------
Total Other Income (Expenses) 170 129
------ ------
Income (Loss) before
Extraordinary Gain (8,548) (342)
Extraordinary Gain on Extinguishment
of Senior Notes 1,634 1,384
------ ------
Net Income (Loss) ($6,914) $1,042
====== ======
Partners' Equity at
Beginning of Period 27,688 23,998
Net Income (Loss) this Period (6,914) 1,042
------ ------
Subtotal 20,744 25,040
Less: Capital Notes Receivable
from Partners (764) (764)
------ ------
Net Partners' Equity at
End of Period $20,010 $24,276
======= =======
</TABLE>
[FN] See notes to consolidated financial statements.
<TABLE>
THE FORECAST GROUP "Registered Tradename", L.P.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(Amounts in 000's)
For the Three Months
Ended January 31
--------------------
1997 1996
--------------------
<S> <C> <C>
Operating Activities:
- ---------------------
Net Income (Loss) ($6,914) $1,042
Adjustments to Reconcile Net Income (Loss) to
Net Cash Generated from (Used for)
Operating Activities:
Non-Cash Charge for Impairment
of Real Estate Inventory 6,635 --
Extraordinary Gain on Extinguishment
of Senior Notes (1,634) (1,384)
Depreciation and Amortization on
Property and Equipment 72 62
Loss (Gain) on Sale of Property
and Equipment -- 7
Decrease in Accounts Receivable 91 95
Decrease (Increase) in
Real Estate Inventory 133 (3,089)
Decrease (Increase) in Other Assets 122 (439)
Increase (Decrease) in Accounts Payable
and Accrued Expenses (6,026) (1,643)
------- -------
Net Cash Generated from (Used for)
Operating Activities (7,521) (5,349)
------- -------
Investing Activities:
- ---------------------
Additions to Property and Equipment (16) (32)
------- -------
Net Cash Generated from (Used for)
Investing Activities (16) (32)
------- -------
Financing Activities:
- ---------------------
Retirement of Senior Notes at 11 3/8%
due December 2000 (3,612) (2,293)
Decrease (Increase) in Accounts and
Notes Receivable, Related Parties 1,656 (784)
Proceeds from Notes Payable 13,569 15,628
Proceeds from Notes Payable,
Related Parties -- 2,221
Proceeds from Notes Payable, Other 1,700 --
Principal Payments on Notes Payable (12,243) (9,507)
Principal Payments on Notes Payable,
Related Parties -- (2,221)
------- -------
Net Cash Generated from (Used for)
Financing Activities 1,070 3,044
------- -------
Increase (Decrease) in Cash and
Cash Equivalents (6,467) (2,337)
Cash and Cash Equivalents at
Beginning of Period 12,350 8,090
------- -------
Cash and Cash Equivalents at
End of Period $5,883 $5,753
======= =======
</TABLE>
[FN] See notes to consolidated financial statements.
<PAGE>
THE FORECAST GROUP "Registered Tradename", L.P.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
1. Basis of Presentation
The accompanying unaudited condensed consolidated
financial statements have been prepared in accordance with
generally accepted accounting principles for interim
financial information and with the instructions to Form 10-Q and
Article 10 of Regulation S-X. Accordingly, they do not include
all of the information and footnotes required by generally
accepted accounting principles for complete financial
statements. In the opinion of management, all adjustments
(consisting of normal recurring accruals) considered
necessary for a fair presentation have been included.
These consolidated financial statements should be read in
conjunction with the consolidated financial statements and
related disclosures contained in the Form 10-K for the year
ended October 31, 1996 (File No. 33-72106) as filed with the
Securities and Exchange Commission.
The results of operations for the three months ended
January 31, 1997 do not necessarily indicate the results that
can be expected for the full fiscal year.
The results of operations for the three months ended
January 31, 1997, and this Form 10-Q, also may be
interpreted as, or actually contain, "forward looking"
information, as that term is defined by the Securities and
Exchange Commission. To the extent such forward looking
information is contained in this filing, the company intends to
use these disclosures to take advantage of the "Safe Harbor"
provisions set out in the rules and regulations of the
Securities and Exchange Commission, and thus strongly
recommends that prior to making an investment decision a
prospective investor should carefully consider the factors
mentioned in Form 10-K for the year ended October 31, 1996 in
relation to that "forward looking" information, as well as
other financial and business information that may be
available from a variety of sources regarding the home
building industry as a whole, including, but not limited to:
- -- Changes in national economic conditions such as interest
rates, consumer confidence and job loss or formation
statistics
- -- Change in economic conditions in the markets in which the
Company operates
- -- Fluctuations in mortgage interest rates
- -- Cost increases resulting from adverse weather conditions,
shortages of labor and construction materials
- -- Changes in governmental regulations which may delay new home
development or impose additional costs or fees.
2. Real Estate Held for Development and Sale and Related
Notes Payable
Real estate held for development and sale and related notes
payable consist of the following:
<TABLE>
(Amounts in 000's) January 31, 1997
-----------------------------
Real Estate Notes Payable
Inventory
-----------------------------
<S> <C> <C>
Land Held for Development $15,267 $0
Residential Projects in Process 50,749 22,156
Model Homes 7,976 4,890
------- -------
Total $73,992 $27,046
======= =======
October 31, 1996
-----------------------------
Real Estate Notes Payable
Inventory
-----------------------------
Land Held for Development $15,067 $0
Residential Projects in Process 57,442 20,449
Model Homes 8,251 5,271
------- -------
Total $80,760 $25,720
======= =======
</TABLE>
3. Interest Expense
The following summarizes the components of interest
expense incurred, capitalized, expensed and paid:
<TABLE>
FOR THREE MONTHS ENDED
JANUARY 31,
----------------------
1997 1996
----------------------
<S> <C> <C>
Interest incurred and capitalized $1,919 $1,911
Capitalized interest amortized to
cost of homes sold $1,470 $1,237
Interest paid $2,974 $3,095
</TABLE>
4. Transactions With Affiliates
In December of 1994, Mr. Previti did, on his own
account, purchase $550,000 of the Company's Senior Notes at a
favorable discount from their face value. In January
1995, the Board of Directors of Forecast "Registered Tradename" Homes,
Inc., resolved that it would be in the Company's best long-term
interests to seek the assistance of Mr. James Previti, the
Company's President and Chief Executive Officer, in
acquiring the Company's Senior Notes on the open market, if he
could acquire them at a favorable discount from their stated
face value. At the same time, the Board of Directors agreed that
the Company would repurchase the notes from Mr. Previti at his
cost basis, plus interest, at such time as the Company had
sufficient financial resources. Acting upon this authorization,
Mr. Previti did acquire another $19,800,000 of Senior Notes of
which $14,950,000 were repurchased and retired prior to
October 31, 1996. In January 1997, Mr. Previti assigned his
interest in the aggregate remaining $5,400,000 of Senior
Notes to the Company, in exchange for the Company's
assumption of margin debt of $1,700,000 owing by Mr.
Previti, and forgiveness of two notes held by and owing to the
Company in the total amount of $1,699,000 that were secured
by Mr. Previti's interest in the Senior Notes. This transaction
resulted in an extraordinary gain of $1,634,000 in the first
quarter of fiscal 1997.
The Company believes that the transactions discussed
above were on terms at least as favorable to the Company as a
comparable transaction made on an arms length basis between
unaffiliated parties.
5. 11 3/8% Senior Notes Due December 2000
In February 1994, the Company issued $50,000,000 in 11
3/8% Senior Notes through a public debt offering. The notes are
joint and several obligations of the Company and Forecast
Capital Corporation, with interest only payments due semi-
annually on June 15 and December 15 of each year. The notes are
unsecured obligations of the Company and rank pari passu in
right of payment with all senior indebtedness of the Company.
As of January 31, 1997, the Company had retired a total of
$20,925,000 of the Senior Notes, leaving $29,075,000 of Senior
Notes still outstanding.
The Indenture governing the Senior Notes requires the
Company to maintain a minimum net worth of $25 million. If
the Company's net worth at the end of any two consecutive
fiscal quarters (the last day of such second consecutive
fiscal quarter being referred to as the "Trigger Date" is less
than $25 million , then the Company is required to make an
offer to all Senior Note holders to acquire on a pro rata basis,
Senior Notes in the aggregate principal amount of $5 million
(the "Net Worth Offer") at a purchase price equal to 100% of
the principal amount thereof, plus accrued interest to the date
of repurchase. Notwithstanding this requirement to offer to,
and then, repurchase Senior Notes, the Indenture allows the
Company to credit against the Net Worth Offer, the principal
amount of any Senior Notes acquired by the Company prior to
the Trigger Date, through repurchase or optional redemption.
The Company may not, however, use any specific Senior Note
repurchase in any more than one Net Worth Offer. In no
event shall the failure to meet the minimum net worth
requirement at the end of any fiscal quarter be counted toward
the making of more than one Net Worth Offer.
For the fiscal quarters ended October 31, 1995 and
January 31, 1996, the Company was not in compliance with the
minimum net worth requirement. Therefore, under the terms of
the Company's Indenture, January 31, 1996 became a Trigger
Date for the Company, requiring a Net Worth Offer. However,
despite this event, the Company had already repurchased or
redeemed a sufficient amount of Senior Notes to meet any
repurchase obligations resulting from the first Trigger Date.
As of April 30, 1996, July 31, 1996, and October 31,
1996, the Company's net worth was again above the $25 million
threshold, preventing the occurrence of a second Trigger Date
at any time prior to January 31, 1997. As of January 31,
1997, as a result of the Company's decision to record a non-
cash charge for the impairment of real estate inventory the
Company's net worth went below the $25 million threshold.
Further, the Company anticipates its net worth will be below the
$25 million threshold at April 30, 1997, at which time a
Trigger Date would occur. Notwithstanding the occurrence of
this Trigger Date, the Company has acquired and retired over
$20 million of Senior Notes and, accordingly will not be
required to make a Net Worth Offer.
6. Real Estate Inventory
In March 1995, The Financial Accounting Standards Board
(FASB) issued Statement No. 121, "Accounting for the
Impairment of Long-Lived Assets and for Long-Lived Assets to Be
Disposed Of" (Statement 121). Under Statement 121, when events
or circumstances indicate that an impairment to an assets to
be held and used might exist, the expected future undiscounted
cash flows from the affected asset or group of assets must be
estimated and compared to the carrying value of the asset or
group of assets. If the sum of the estimated undiscounted
cash flows is less than the carrying value of the assets, an
impairment loss must be recorded. The impairment loss is
measured by comparing the estimated fair value of the assets
with their carrying amount. Statement 121 also requires that
long-lived assets that are held for disposal be reported at
the lower of the assets' carrying amount or fair value less
costs of disposal.
In the first quarter of fiscal 1997, management performed
evaluations of its real estate inventory and analyzed future
undiscounted cash flows for all real estate projects where
impairment indicators were present. The evaluations largely
considered the competitive nature of homebuilding operations in
the Company's principal markets, including decreased
sales prices, increased sales incentives and future costs of
development and holding costs during development based on
current absorption estimates. Based on these evaluations, a non-
cash charge for the impairment of certain real estate assets
amounting to $6,635,000 was recorded for the three months
ending January 31, 1997.
<PAGE>
FORECAST "Registered Tradename" CAPITAL CORPORATION
BALANCE SHEET
(Unaudited)
<TABLE>
January 31, October 31,
1997 1996
------------------------
<S> <C> <C>
Assets:
- -------
Cash $300 $300
------ ------
Total Assets $300 $300
====== ======
Liabilities & Shareholders' Deficit:
- -------------------------------------
Accounts Payable $400 $400
Accounts Payable, Related Parties 2,300 2,300
------ ------
Total Liabilities 2,700 2,700
------ ------
Common Stock, $1.00 par value:
Authorized 10,000 shares
Issued and Outstanding 2,500 shares 2,500 2,500
Accumulated Deficit (4,900) (4,900)
------ ------
Total Shareholders' Deficit (2,400) (2,400)
------ ------
Total Liabilities & Shareholders'
Deficit $300 $300
====== ======
</TABLE>
[FN] See notes to consolidated financial statements.
FORECAST "Registered Tradename" CAPITAL CORPORATION
STATEMENTS OF OPERATIONS AND SHAREHOLDERS' EQUITY
(Unaudited)
<TABLE>
For the Three months
Ended January 31
--------------------
1997 1996
--------------------
<S> <C> <C>
General & Administrative Expenses $0 $0
Income Tax Expense -- --
----- -----
Net Income (Loss) $0 $0
===== =====
Shareholders' Equity at
Beginning of Period (2,400) (600)
Net Income (Loss) this Period 0 0
------ ------
Shareholders' Equity at
End of Period ($2,400) ($600)
====== ======
</TABLE>
[FN] See notes to consolidated financial statements.
<PAGE>
FORECAST "Registered Tradename" CAPITAL CORPORATION
NOTES TO FINANCIAL STATEMENTS
(Unaudited)
1. Basis of Presentation
Forecast "Registered Tradename" Capital Corporation was incorporated in
California on September 20, 1993. The Company is a whollyowned
subsidiary of The Forecast Group "Registered Tradename", L.P., a California
limited partnership that is engaged in the residential real estate
development business.
The accompanying unaudited financial statements have been
prepared in accordance with generally accepted accounting
principles for interim financial information and with the
instructions to Form 10-Q and Article 10 of Regulation S-X.
Accordingly, they do not include all of the information and
footnotes required by generally accepted accounting principles
for complete financial statements. In the opinion of
management, all adjustments (consisting of normal recurring
accruals) considered necessary for a fair presentation have been
included.
These consolidated financial statements should be read in
conjunction with the consolidated financial statements and
related disclosures contained in the Form 10K for the year
ended October 31, 1996 (File No. 33-72106) as filed with the
Securities and Exchange Commission.
The results of operations for the three months ended
January 31, 1997 do not necessarily indicate the results that
can be expected for the full fiscal year.
2. Income Taxes
The Company is a "C" Corporation for federal and state
income tax reporting purposes and accounts for income taxes in
accordance with Financial Accounting Standards Board
Statement No. 109 "Accounting for Income Taxes".
<PAGE>
THE FORECAST GROUP "Registered Tradename", L.P.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
Part I. Item 2.
Results of Operations
The following table sets forth, for the period
indicated, certain income statement items as percentages of
total home building sales and certain other data:
<TABLE>
Percent of Housing Sales
For the Three Months
ended January 31
------------------------
1997 1996
------------------------
<S> <C> <C>
Homebuilding Revenues 100.0% 100.0%
Cost of Homes Sold 87.0% 83.7%
------ ------
Gross Profit 13.0% 16.3%
Operating Expenses:
Selling & Marketing Expenses 12.8% 11.5%
General & Administrative Expenses 8.6% 6.6%
Non-Cash Charge for Impairment of
Real Estate Inventory 26.7% 0.0%
------ ------
Total Operating Expenses 48.1% 18.1%
Operating Income (Loss) -35.1% -1.8%
====== ======
Number of homes closed 175 194
Number of homes sold 137 197
Number of sold homes in backlog 125 203
Aggregate value of backlog, in millions $18.1 $26.6
</TABLE>
Results of Operations for the Three Months ended January
31, 1997 and January 31, 1996:
Housing revenues for the three months ended January 31,
1997 were $24.8 million, a decrease of $1.7 million or 6.3% from
the three months ended January 31, 1996. The revenues in fiscal
1997 represent 175 closings at an average sales price of
$141,960 while the revenues in fiscal 1996 represent 194
unit closings at an average sales price of $136,600. Changes
in the average selling price of homes delivered may vary from
period to period based on product mix and pricing of specific
communities. The decrease in closings is attributable to fewer
sold homes in backlog at the beginning of the 1997 fiscal
quarter largely due to competitive conditions in the Company's
Southern California market and the delay in opening new
communities in Northern California.
Gross margin from housing sales decreased by $1.1
million, or 25.3%, for the three months ended January 31,
1997, as compared to the three months ended January 31,
1996, as a result of decreased home closings and a 3.3%
increase in the cost of homes sold. This increase in the cost
of homes sold is attributable to increased land costs in
relation to the sales price of the Company's homes. This
tightening of margins was itself the result of competitive
conditions which have limited the Company's ability to pass on
price increases to its customers, as well as higher
financing costs which were created by the Company carrying its
inventories for longer periods.
Selling and marketing expenses were $3.2 million during the
three months ended January 31, 1997, an increase of $137,000
over the same period during fiscal 1996. This increase was
realized as an outgrowth of the Company's increased
advertising costs which were incurred in an effort to keep sales
absorption at similar levels to those reported in the three month
period ended January 31, 1996.
General and administrative expenses were $2.1 million
and $1.7 million during the three months ended January 31, 1997
and 1996, respectively. The $381,000 increase can be largely
attributed to accrued legal costs resulting from the settlement
of various land related issues.
A net loss of $6.9 million was recognized in the first
quarter of fiscal 1997 compared to net income of $1.0
million in the first quarter of fiscal 1996 as a result of
decreased gross profit from homebuilding and a non-cash
charge for impairment of real estate inventory of $6.6
million.
The Company had new home sales, net of cancellations,
of 137 homes in the three months ended January 31, 1997, a
decrease of 60 homes or 31% from the comparable prior year
period. The decrease is attributable to an unusually large
number of cancellations in the Company's Phoenix market and
delays in opening new communities in Northern California.
Liquidity and Capital Resources:
The residential real estate development business is
inherently capital intensive. Significant cash expenditures are
typically needed to acquire and develop land, construct homes
and establish marketing programs for lengthy periods of time
in advance of revenue realization. The Company generally
finances its operations with secured borrowings from
commercial banks, financial institutions and private investors,
unsecured borrowings in the public market, and with available
cash flow from operations.
The Company has commitments for $25.5 million under
several revolving credit facilities with commercial banks and
financial institutions of which $9.9 million was outstanding at
January 31, 1997. In addition, the Company has community
specific facilities to provide aggregate funding of $23.9
million of which $12.2 million was outstanding and $11.7
million is available to build out the respective communities.
The Company also benefits from a line of credit which is
secured by some of its model homes for an amount not to exceed
$5.8 million of which $4.9 million was outstanding as of
January 31, 1997. Borrowings under the credit facilities are
secured by liens on specific real property owned by the
Company. The aggregate outstanding principal balance under
the Company's credit facilities was $27.0 million as of January
31, 1997.
In February 1994, the Company issued $50 million in
Senior Notes through a public debt offering, of which
$29,075,000 were still outstanding on January 31, 1997. The
notes are due in December 2000 with interest at the rate of 11
3/8% per annum payable semi-annually on June 15 and December
15 of each year.
The Indenture governing the Senior Notes limits total
outstanding recourse debt to $15 million unless, at the time the
recourse debt is incurred and after giving effect to the proceeds
therefrom, certain threshold tests are met for interest
coverage and debt to equity ratios, as defined in the Indenture.
At January 31, 1997, the Company's outstanding recourse
debt was approximately $5.5 million, thus approximately $9.5
million in additional "recourse" debt could have been incurred.
As of January 31, 1997, the Company did not meet the
threshold tests for interest coverage or debt-to-equity
ratios. However, the Company is not precluded from incurring
debt on a non-recourse basis, and believes the financing
currently in place is sufficient to meet the Company's
business objectives for the foreseeable future.
The Indenture governing the Senior Notes requires the
Company to maintain a minimum net worth of $25 million. If the
Company's net worth at the end of any two consecutive fiscal
quarters (the last day of such second consecutive fiscal
quarter being referred to as the "Trigger Date" is less than
$25 million , then the Company is required to make an offer to
all Senior Note holders to acquire on a pro rata basis, Senior
Notes in the aggregate principal amount of $5 million (the
"Net Worth Offer") at a purchase price equal to 100% of the
principal amount thereof, plus accrued interest to the date of
repurchase. Notwithstanding this requirement to offer to, and
then, repurchase Senior Notes, the Indenture allows the Company
to credit against the Net Worth Offer, the principal amount of
any Senior Notes acquired by the Company prior to the Trigger
Date, through repurchase or optional redemption. The Company
may not, however, use any specific Senior Note repurchase in any
more than one Net Worth Offer. In no event shall the
failure to meet the minimum net worth requirement at the end of
any fiscal quarter be counted toward the making of more than one
Net Worth Offer.
For the fiscal quarter ended January 31, 1997, the
Company is not in compliance with its minimum net worth
covenant. In addition, management believes it is unlikely that
the minimum net worth will be met as of April 30, 1997, which
date would represent the Trigger Date for a net worth offer.
However, the Company has purchased or redeemed a sufficient
amount of Senior Notes believed necessary to meet repurchase
obligations resulting from the first Trigger Date. While
there are no assurances, management believes that future
income from operations and gains from the extinguishment of
Senior Notes will be sufficient to restore minimum net worth
before any future Trigger Dates.
There can be no assurance that the impact of market
conditions affecting the demand for homes or the availability of
debt financing will not adversely affect the Company's future
need for capital. However, the Company expects that available
capital resources will be sufficient to meet its normal
operating requirements over the near term.
<PAGE>
PART II. OTHER INFORMATION
Item 1. Legal Proceedings
-----------------
(a) None
Item 2. Changes in Securities
---------------------
(a) None
Item 3. Defaults upon Senior Securities
-------------------------------
(a) Refer to note 5 of Notes to Consolidated Financial Statements.
Item 4. Submission of Matters to a Vote of Security Holders
----------------------------------------------------
(a) None
Item 5. Other Information
-----------------
(a) None
Item 6. Exhibits and Reports on Form 8-K
--------------------------------
(a) There are no exhibits attached to this report.
(b) The Company did not file any reports on Form 8-K
during the period.
<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.
THE FORECAST GROUP "Registered Tradename", L.P.
By: FORECAST "Registered Tradename" HOMES, INC.
---------------------------------------------
A California Corporation
its General Partner
March 14, 1997 By: /s/ James P. Previti
- --------------- ------------------------
Date James P.Previti
President
By: /s/ Thomas Connelly
---------------------
Thomas Connelly
Senior Vice President
Principal Financial and
Accounting Officer
By: FORECAST "Registered Tradename" CAPITAL CORPORATION
---------------------------------------------------
March 14, 1997 By: /s/ James P. Previti
- -------------- ----------------------
Date James P. Previti
President
By: /s/ Thomas Connelly
---------------------
Thomas Connelly
Senior Vice President
Principal Financial and
Accounting Officer
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> OCT-31-1997
<PERIOD-END> JAN-31-1997
<CASH> 5883000
<SECURITIES> 0
<RECEIVABLES> 3958000
<ALLOWANCES> 0
<INVENTORY> 73992000
<CURRENT-ASSETS> 86872000
<PP&E> 1115000
<DEPRECIATION> 72000
<TOTAL-ASSETS> 86872000
<CURRENT-LIABILITIES> 66862000
<BONDS> 29075000
0
0
<COMMON> 0
<OTHER-SE> 0
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</TABLE>
