Gentlemen,
We are transmitting herewith Form 10-QSB for the quarter ended March 31,
2001 for Diversified Realty, Inc.
Diversified Realty, Inc.
S/Lori Olson,
Lori Olson
Accountant
Please be advised:
The company's controller left on March 31, 2001 and the accountant on
May 30, 2001. I started as an accountant with the company in May 2001.
I have reviewed the working papers and other accounting records for the
quarter ended March 31, 2001 and have reconciled cash accounts. To the
best of my knowledge and belief the Form 10-QSB for the quarter ended
March 31, 2001, reflects the financial condition of the company.
U.S. Securities and Exchange Commission
Washington, D. C. 20549
FORM 10-QSB
(Mark One)
[X] QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 2001
[ ] TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE ACT
For the transition period from to
Commission file number 0-2864
DIVERSIFIED REALTY, INC.
(Exact name of small business issuer as specified in its charter)
Montana 81-0268110
(State or other jurisdiction of (IRS Employer Identification No.)
incorporation or organization)
128 Second Street South, Great Falls, Montana 59405
(Address of principal executive offices)
(406)727-2600
(Issuer's telephone number)
Not Applicable
(Former name, former address and former fiscal year, if changed since
last Report)
Check whether the issuer (1) filed all reports required to be filed by
Section 13 or 15(d) of the Exchange Act during the past 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
APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY
PROCEEDINGS DURING THE PRECEDING FIVE YEARS
Check whether the registrant filed all documents and reports required to
be filed by Section 12, 13 or 15(d) of the Exchange Act after the
distribution of securities under a plan confirmed by a court. Yes
No
APPLICABLE ONLY TO CORPORATE ISSUERS
State the number of shares outstanding of each of the issuer's classes
of common equity, as of the latest practicable date:
Class Outstanding at March 31,
2001
$.10 Par Value Common Stock 5,370,542.8 Shares
Transitional Small Business Disclosure Format (Check One): Yes ; No
X
DIVERSIFIED REALTY, INC.
INDEX
MARCH 31, 2001
Page Number
PART I
Condensed Financial Statements:
Balance Sheet -
March 31, 2001 2
Statements of Income -
Three Months Ended March 31, 2001 and 2000 3
Statements of Cash Flows -
Three Months Ended March 31, 2001 and 2000 4
Notes to Financial Statements 5
Management's Discussion and Analysis of the
Statements of Income 6
PART II
Other Information 7
Signatures 8
1
DIVERSIFIED REALTY, INC.
BALANCE SHEET
AS OF MARCH 31, 2001
ASSETS
Current Assets
Cash
$
2,290,788
Due From Parent Company
86,267
Total Current Assets
2,377,055
Property, Plant and Equipment, Net
210,111
Total Assets
$
2,587,166
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
Accounts Payable and Accrued Liabilities
$
32,013
Income Taxes Payable
9,668
Total Current Liabilities
42,681
Stockholders' Equity
Common Stock, $.10 Par Value,
11,000,000 shares authorized,
5,375,000 shares issued
537,500
Additional Paid-In-Capital
1,929,408
Retained Earnings
79,980
Cost of Common Stock in Treasury
(1,403)
Total Stockholders' Equity
2,544,485
Total Liabilities and Stockholders' Equity
$
2,587,166
See Notes to Financial Statements.
2
DIVERSIFIED REALTY, INC.
STATEMENTS OF INCOME
For The Three Months
Ended
March 31,
2001
2000
Operating Revenues
$
48,904
$
53,079
Operating Expenses
18,122
18,110
30,782
34,969
Income Tax Expense
(12,700)
(14,500)
Net Income
$
18,082
$
20,469
See Notes to Financial Statements.
3
DIVERSIFIED REALTY, INC.
STATEMENTS OF CASH FLOWS
For The Three Months
Ended
March 31,
2001
2000
CASH FLOWS FROM OPERATING ACTIVITIES
Net Cash Provided By
Operating Activities
$
37,499
$
42,063
CASH FLOWS FROM FINANCING ACTIVITIES
Cash Purchases of Treasury Stock
(172)
(7)
Net Cash Advances
From (To) Parent Company
(8,399)
(55,509)
Net Cash Provided (Used) By
Financing Activities
(8,571)
(55,516)
NET INCREASE (DECREASE) IN CASH
28,928
(13,453)
CASH - BEGINNING OF PERIOD
2,261,860
2,220,920
CASH - END OF PERIOD
$
2,290,788
$
2,207,467
See Notes to Financial Statements.
4
DIVERSIFIED REALTY, INC.
NOTES TO FINANCIAL STATEMENTS
MARCH 31, 2001
In the opinion of management, all adjustments necessary (consisting
of only normal recurring accruals) have been made to the unaudited
financial statements to present fairly the financial position as of
March 31, 2001 and the results of the Company's operations and cash
flows for the three months ended March 31, 2001 and 2000.
The results of operations for the three months ended March 31, 2001
and 2000 are not necessarily indicative of the results to be expected
for the full year.
Parent -
M Corp, Great Falls, Montana owns approximately 95% of the
outstanding shares of the Company.
5
DIVERSIFIED REALTY, INC.
MANAGEMENT'S DISCUSSION AND ANALYSIS
OF THE STATEMENTS OF INCOME
MARCH 31, 2001
A summary of the period to period changes in items included in the
statements of income is shown below.
COMPARISON OF
Three Months
Ended
March 31,
2001 and 2000
Increases
(Decreases)
Revenues
$ (4,174)
(7.9)%
Operating Expenses
$ ( 12)
(.07)%
Net Income
$ ( 2,386)
(11.7)%
Revenues decreased $4,174 (7.9%) in the first quarter of 2001 as
compared with the first quarter of 2000 due primarily to an decrease in
interest revenues ($3,409; 11.4%) and a decrease in other income $10.22;
20.2%). Interest revenues decreased primarily due to a decrease in
interest rates earned by the company. Operating expenses decreased $12
(.07%) in the first quarter of 2001 as compared with the first quarter
of 2000. The decrease in operating expenses during the first quarter of
2001 as compared with the first quarter of 2000 was due primarily to
decreases in operating expenses. The provision for income tax expense
decreased $1,800 (12.4%) in the first quarter of 2001 as compared with
the first quarter of 2000 due primarily to the decrease in pretax
income.
6
DIVERSIFIED REALTY, INC.
PART II
OTHER INFORMATION
MARCH 31, 2001
ITEM 1 LEGAL PROCEEDINGS
None
ITEM 2 CHANGES IN SECURITIES AND USE OF PROCEEDS
None
ITEM 3 DEFAULTS UPON SENIOR SECURITIES
None
ITEM 4 SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
None
ITEM 5 OTHER INFORMATION
None
ITEM 6 EXHIBITS AND REPORTS ON FORM 8-K
None
7
SIGNATURES
In accordance with the requirements of the Exchange Act, the
registrant caused this report to be signed on its behalf by
the undersigned, thereunto duly authorized.
DIVERSIFIED REALTY, INC.
Registrant
Date: May 29, 2001 s/A. Dompier
A. Dompier,
Assistant
Secretary-Treasurer
Date: May 29, 2001 s/L. Olson
L. Olson
Accountant
8