SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
[x] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended May 31, 1996
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 0-14019
Ridgewood Properties, Inc.
------------------------------------------------------
(Exact name of registrant as specified in its charter)
Delaware 58-1656330
- ------------------------------- ------------------------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
2859 Paces Ferry Road, Suite 700
Atlanta, Georgia
30339
- -------------------------------------------------------------
(Address of principal executive offices)
(Zip Code)
(770) 434-3670
----------------------------------------------------
(Registrant's telephone number, including area code)
N/A
----------------------------------------------------
(Former name, former address and former 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 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 _____
Common stock, par value $.01 per share - 1,088,480 shares
outstanding at May 31, 1996.
PART I. FINANCIAL INFORMATION
------------------------------
ITEM 1. FINANCIAL STATEMENTS
-----------------------------
RIDGEWOOD PROPERTIES, INC. AND SUBSIDIARIES
-------------------------------------------
CONSOLIDATED BALANCE SHEETS
---------------------------
MAY 31, 1996 AND AUGUST 31, 1995
--------------------------------
($000'S omitted, except per share data)
---------------------------------------
(Unaudited)
May 31, August 31,
ASSETS 1996 1995
------ ----------- -----------
Real Estate Investments:
Real Estate Properties
Operating Properties $ 1,405 $ 1,461
Land Held for Sale or
Future Development 10,018 10,104
------------ ------------
11,423 11,565
Mortgage Loans 5 44
------------ ------------
Total real estate investments 11,428 11,609
Allowance for Possible Losses (4,700) (4,700)
------------ ------------
Net real estate investments 6,728 6,909
Investment in Limited Partnership 771 232
Cash and Cash Equivalents 276 1,880
Escrowed Funds 186 140
Other Assets 703 512
------------ ------------
$ 8,664 $ 9,673
============ ============
<FN>
The accompanying notes are an integral part of these consolidated
financial statements.
</FN>
RIDGEWOOD PROPERTIES, INC. AND SUBSIDIARIES
-------------------------------------------
CONSOLIDATED BALANCE SHEETS
---------------------------
MAY 31, 1996 AND AUGUST 31, 1995
--------------------------------
($000's omitted, except per share data)
---------------------------------------
(Unaudited)
May 31, August 31,
LIABILITIES AND SHAREHOLDERS' INVESTMENT 1996 1995
---------------------------------------- ------------ ------------
Accounts Payable $ 110 $ 102
Accrued Salaries, Bonuses and
Other Compensation 780 737
Accrued Property Tax Expense 94 146
Accrued Interest and Other Liabilities 422 280
Term Loans 2,871 2,796
------------ ------------
Total Liabilities 4,277 4,061
------------ ------------
Commitments and Contingencies
Shareholders' Investment
Series A Convertible Preferred Stock,
$1 par value, 1,000,000 shares authorized, 450,000
shares issued and outstanding at May 31, 1996
and August 31, 1995, liquidation preference
and callable at $3,600,000. 450 450
Common Stock, $.01 par value, 5,000,000
shares authorized, 1,088,480 shares issued and
outstanding at May 31, 1996 and
August 31, 1995. 11 10
Paid-in Surplus 16,060 16,196
Accumulated Deficit since December 30, 1985 (12,134) (11,044)
------------ ------------
4,387 5,612
------------ ------------
$ 8,664 $ 9,673
============ ============
<FN>
The accompanying notes are an integral part of these consolidated
financial statements.
</FN>
RIDGEWOOD PROPERTIES, INC. AND SUBSIDIARIES
-------------------------------------------
STATEMENTS OF CONSOLIDATED LOSS
-------------------------------
FOR THE THREE AND NINE MONTHS ENDED MAY 31, 1996 AND MAY 31, 1995
-----------------------------------------------------------------
($000's omitted, except per share data)
---------------------------------------
For the Three Months Ended For the Nine Months Ended
----------------------------- -----------------------------
May 31, May 31, May 31, May 31,
1996 1995 1996 1995
------------ ------------ ------------ ------------
REVENUES:
Operating revenues from real estate properties..... $ 819 $ 890 $ 2,070 $ 2,626
Revenues from hotel management .................... 230 96 461 163
Sales of real estate properties ................... 399 2,964 457 3,290
Income from loans and temporary investments ....... 4 19 40 83
Other ............................................. -- -- -- 3
------------- ------------- ------------- -------------
1,452 3,969 3,028 6,165
------------- ------------- ------------- -------------
COSTS AND EXPENSES:
Expenses of real estate properties ................ 650 782 1,763 2,313
Expenses of hotel management ...................... 232 115 491 250
Expenses of real estate sales ..................... 390 2,711 319 3,044
Allowance for possible losses ..................... -- -- -- 50
Depreciation ...................................... 39 89 118 324
Interest expense .................................. 86 80 255 302
General, administration and other ................. 354 337 1,025 925
Business development .............................. 64 21 147 104
------------- ------------- ------------- -------------
1,815 4,135 4,118 7,312
------------- ------------- ------------- -------------
NET LOSS BEFORE INCOME TAX EXPENSE .................... $ (363) $ (166) $ (1,090) $ (1,147)
------------- ------------- ------------- -------------
INCOME TAX EXPENSE .................................... $ -- $ (37) $ -- $ 38
------------- ------------- ------------- -------------
NET LOSS .............................................. $ (363) $ (129) $ (1,090) $ (1,185)
============= ============= ============= =============
LOSS PER SHARE ........................................ $ (0.38) $ (0.18) $ (1.13) $ (1.36)
============= ============= ============= =============
<FN>
The accompanying notes are an integral part of these consolidated financial statements.
</FN>
RIDGEWOOD PROPERTIES, INC. AND SUBSIDIARIES
-------------------------------------------
CONSOLIDATED STATEMENT OF CASH FLOWS
------------------------------------
FOR THE NINE MONTHS ENDED MAY 31, 1996 AND MAY 31, 1995
------------------------------------------------------
Decrease in Cash and Cash Equivalents
-------------------------------------
($000's Omitted)
----------------
1996 1995
---------- ----------
Cash flows from operating activities:
Net loss ...................................................... $ (1,090) $ (1,185)
Adjustments to reconcile net loss to net
cash used by operating activities:
Depreciation and amortization ............................. 133 348
Increase in allowance for possible losses ................. -- 50
Gain from sales of real estate property ................... (138) (246)
Increase in escrowed funds ................................ 46 --
Increase in other assets .................................. (219) 335
Decrease in accounts payable and
accrued liabilities ..................................... 96 114
---------- ----------
Total adjustments ......................................... (82) 601
---------- ----------
Net cash used by operating activities ..................... (1,172) (584)
Cash flows from investing activities:
Principal payments received on mortgage loans ............... 39 30
Proceeds from sales of real estate .......................... 481 3,043
Additions to real estate properties ......................... (292) (823)
Investment in limited partnership ........................... (539) --
---------- ----------
Net cash received (used) from investing activities ........ (311) 2,250
Cash flows from financing activities:
Repayments of notes payable ................................. (31) (3,964)
Payment of dividends on preferred stock ..................... (90) (126)
---------- ----------
Net cash used by financing activities ..................... (121) (4,090)
---------- ----------
Net decrease in cash and cash equivalents ....................... $ (1,604) $ (2,424)
Cash and cash equivalents at beginning of period ................ 1,880 2,804
---------- ----------
Cash and cash equivalents at end of period ...................... $ 276 $ 380
========== ==========
The accompanying notes are an integral part of these consolidated financial statements.
Supplemental disclosure of noncash activity in fiscal year 1996:
Issuance of 125,000 shares of common stock
at $.01 par value in conjunction with purchase
of hotel management company .............................. $ 1,250
Assumption of notes payable in conjunction with ==========
purchase of hotel management company ..................... $ 106,000
==========
RIDGEWOOD PROPERTIES, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
MAY 31, 1996 AND MAY 31, 1995
(Unaudited)
1. GENERAL:
Ridgewood Properties, Inc. (the "Company") is
primarily engaged in the business of acquiring, developing,
operating and selling real estate property in the Southeast and
"Sunbelt" areas. Additionally, the Company, through its
investment in a limited partnership, is engaged in acquiring and
managing hotel properties in the Southeast. Currently, the
Company's only operating property is the hotel in Longwood,
Florida. All of the Company's other properties are land
properties held for sale, and no additional development is
currently anticipated for the land. The Company was
incorporated under the laws of the State of Delaware on October
29, 1985. Prior to December 31, 1985, the Company operated
under the name CMEI, Inc.
The Company's common stock is currently listed in
the broker-dealer "Pink Sheets" and trades in the
over-the-counter market. Of the Company's issued and
outstanding shares of common stock, 37% of the common stock is
owned by the Company's President, N. Russell Walden. All of the
Company's issued and outstanding shares of preferred stock are
owned by Triton Group, Ltd.
The accompanying financial statements of the Company
present the historical cost basis amount of assets, liabilities
and shareholders' investment of the real estate business for the
periods presented. The consolidated financial statements
include the accounts of the Company, its wholly-owned
subsidiaries and its joint venture investments after the
elimination of all intercompany amounts.
2. BASIS OF PRESENTATION:
The accompanying consolidated financial statements
have been prepared by the Company, without audit, pursuant to
the rules and regulations of the Securities and Exchange
Commission. In the opinion of management, the consolidated
financial statements reflect all adjustments, consisting of
normal recurring adjustments, which are necessary to present
fairly the financial position, results of operations and changes
in cash flow for the interim periods covered by this report.
Although certain information and footnote disclosures normally
included in financial statements prepared in accordance with
generally accepted accounting principles have been condensed or
omitted pursuant to such rules and regulations, management
believes that the disclosures are adequate to make the
information presented not misleading. These financial
statements should be read in conjunction with the audited
consolidated financial statements and notes thereto included in
the Company's annual report for the fiscal year ended August 31,
1995. The results of operations for the nine months ended May
31, 1996 are not necessarily indicative of the results to be
expected for the fiscal year ending August 31, 1996.
The Company is currently generating net operating
loss carryforwards for both book and tax purposes which may be
used to offset future taxable income. In September 1993, the
Company adopted SFAS 109. The adoption of SFAS 109 did not have
a material effect on the Company's consolidated financial
position or results of operations.
For the purpose of the Statement of Cash Flows, cash
includes cash equivalents which are highly liquid investments
with maturity of three months or less.
Certain prior year amounts have been reclassified to
conform with the current presentation.
3. ALLOWANCE FOR POSSIBLE LOSSES:
No additional allowance for possible losses was
necessary for the nine months ended May 31, 1996. The allowance
for possible losses increased by $50,000 for the nine months
ended May 31, 1995. The additional reserve was to reflect the
net realizable value on a residential lot in Atlanta, Georgia.
4. COMMITMENTS AND CONTINGENCIES:
On May 2, 1995 a complaint was filed in the Court of
Chancery of the State of Delaware (New Castle County) entitled
William N. Strassburger v. Michael M. Early, Luther A.
Henderson, John C. Stiska, N. Russell Walden, and Triton Group,
Ltd., defendants, and Ridgewood Properties, Inc., nominal
defendant, C.A. No. 14267 (the "Complaint"). The plaintiff is
an individual shareholder of the Company who purports to file
the Complaint individually, representatively on behalf of all
similarly situated shareholders, and derivatively on behalf of
the Company. The Complaint challenges the actions of the
Company and its directors in consummating the Company's August
1994 repurchase of its common stock held by Triton Group, Ltd.
and Hesperus Partners Ltd. in five counts, denominated Waste of
Corporate Assets, Breach of Duty of Loyalty to Ridgewood, Breach
of Duty of Good Faith, Intentional Misconduct, and Breach of
Duty of Loyalty and Good Faith to Class.
The Company has answered the Complaint, denying all
allegations of wrongdoing either on its part or that of its
directors. The Company's management believes the claims made in
the Complaint are without merit, and that the shareholders of
Ridgewood benefited from the challenged transactions. Since
previous disclosures, there has been no significant progress in
the lawsuit. Management intends to vigorously contest this
matter.
5. SHAREHOLDERS' INVESTMENT:
Loss Per Common Share --
Loss per common share is calculated based upon the
weighted average number of shares outstanding of approximately
963,000 for the three and nine months ended May 31, 1995,
1,088,000 for the three months ended May 31, 1996 and 1,044,000
for the nine months ended May 31, 1996. Dividends paid on
preferred stock were $45,000 and $126,000, respectively, for the
three and nine months ended May 31, 1995; and $90,000 for the
nine months ended May 31, 1996. The preferred dividend payable
in May was accrued but not paid until June 1996. These
dividends were added to the net loss for purposes of computing
the loss per common share.
Stock Option Plan --
On March 30, 1993, the Company granted options to
purchase 378,000 shares of common stock at a price of $1.83 per
share to its key employees and one director under the Ridgewood
Properties, Inc. Stock Option Plan (the "Plan"). The options
will vest over a four year period in 25% increments. All
options expire ten years from the date of grant, unless earlier
on account of death, disability, termination of employment, or
for other reasons outlined in the Plan. As of May 31, 1996, all
of the options are exercisable.
On January 28, 1994, the Company granted options to
purchase 375,000 and 75,000 shares of common stock at a price of
$1.00 per share to its President and Chief Financial Officer,
respectively, under the Plan. The options are exercisable
immediately and expire on January 31, 1997.
6. NOTES PAYABLE:
In June 1995, the Company entered into a loan with a
commercial lender to refinance the Ramada Inn in Longwood,
Florida. The loan proceeds are $2,800,000. The loan is for a
term of 20 years with an amortization period of 25 years, at the
rate of 10.35%. Principal and interest payments are
approximately $26,000 per month beginning August 1, 1995. In
addition, the Company is required to make a repair escrow
payment comprised of 4% of estimated revenues, as well as real
estate tax and insurance escrow payments. The total amount for
these items will be a payment of approximately $20,000 per month
and can be adjusted annually. The escrow funds will be used as
tax, insurance and repair needs arise. As of May 31, 1996,
there was approximately $186,000 of escrowed funds related to
this loan agreement. In June 1996, the Company requested and
received approximately $95,000 from escrow for hotel repair
items. Also, commitment fees and loan costs of approximately
$159,000 are being amortized over 20 years. The balance of this
loan as of May 31, 1996 was approximately $2,777,000.
In December 1995 and in conjunction with the
acquisition of a hotel management company, the Company assumed
three promissory notes dated September 22, 1994 and payable to
three different Georgia corporations. The total combined
outstanding principal was approximately $106,000. All three
notes are for a term of five years at a rate of 6.83%. Combined
principal and interest payments are approximately $2,667 per
month through October 1, 1999. The combined balance of these
loans at May 31, 1996 was approximately $94,000.
Maturities of long-term debt during the Company's
next five fiscal years are as follows: 1997 - $55,000; 1998 -
$59,000; 1999 - $65,000; 2000 - $43,000; 2001 - $42,000.
7. INVESTMENT IN LIMITED PARTNERSHIP:
On August 16, 1995, RW Hotel Partners, L.P. was
organized as a limited partnership (the "Partnership") under the
laws of the State of Delaware. Concurrently, the Company formed
Ridgewood Hotels, Inc., a Georgia corporation ("Ridgewood
Hotels") which became the sole general partner in the
Partnership with RW Hotel Investments Associates, L.L.C.
("Investor") as the limited partner. Ridgewood Hotels has a 1%
base distribution percentage versus 99% for the Investor.
However, distribution percentages do vary depending on certain
defined preferences and priorities pursuant to the Partnership
Agreement ("Agreement") which are discussed below. The
partnership was originally formed to acquire a hotel property in
Louisville, Kentucky. The terms of this partnership will serve
as a guideline for other potential acquisitions with the
Investor or its affiliates.
The Partnership Agreement was amended and restated on
September 8, 1995. Distributable Cash is defined as the net
income from the property before depreciation plus any net sale
proceeds and net financing proceeds less capital costs.
Distributions of Distributable Cash shall be made as follows:
- First, to the Investor until there has been
distributed to the Investor an amount equal to a 15% cumulative
internal rate of return on the Investor's investment.
- Second, to Ridgewood Hotels until the aggregate
amount received by Ridgewood Hotels equals the aggregate cash
contributions made by Ridgewood Hotels to the Partnership (as of
5/31/96, Ridgewood Hotels contributed approximately $771,000).
- Third, 12% to Ridgewood Hotels and 88% to the
Investor until there has been distributed to the Investor an
amount equal to a 25% cumulative internal rate of return on
Investor's investment.
- Fourth, 75% of the residual to the Investor and 25%
to Ridgewood Hotels.
A Management Agreement exists between the Partnership
and the Company as Manager ("Manager") for the purpose of
managing hotels in Kentucky, Georgia and South Carolina. The
Manager shall be entitled to the following property management
fees:
(1) 2.5% of the gross revenues from the hotel
property.
(2) 1% of the gross revenues from the hotel property
as an incentive fee if distributable cash equals or exceeds
13.5% of certain aggregate acquisition costs. No management
fees are payable with respect to the first 12-month period of
management of the hotel in Kentucky.
A Construction Management Agreement exists between
the Partnership and the Manager for the purpose of managing
future improvements to the properties.
The Company currently has approximately $771,000
invested in the Partnership. The Partnership purchased a hotel
in Louisville, Kentucky for approximately $16,000,000. In
December 1995 and January 1996, the Partnership purchased four
hotel properties in Georgia for approximately $15,000,000 and a
hotel in South Carolina for $4,000,000, respectively. The
Company may make future capital contributions to the
Partnership. Management expects to fund such capital
contributions through available cash or from loans from the
Partnership. Additionally, the Company may invest in other
partnerships to acquire hotels in the future.
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
FOR THE THREE AND NINE MONTHS ENDED MAY 31, 1996
COMPARED TO THREE AND NINE MONTHS ENDED MAY 31, 1995
LIQUIDITY AND CAPITAL RESOURCES --
In June 1995, the Company entered into a loan with a
commercial lender to refinance the Ramada Inn in Longwood,
Florida. The loan proceeds are $2,800,000. The loan is for a
term of 20 years with an amortization period of 25 years, at the
rate of 10.35%. Principal and interest payments are
approximately $26,000 per month beginning August 1, 1995. In
addition, the Company is required to make a repair escrow
payment comprised of 4% of estimated revenues, as well as real
estate tax and insurance escrow payments. The total amount for
these items will be a payment of approximately $20,000 per month
and can be adjusted annually. The escrow funds will be used as
tax, insurance and repair needs arise. As of May 31, 1996,
there was approximately $186,000 of escrowed funds related to
this loan agreement. In June 1996, the Company requested and
received approximately $95,000 from escrow for hotel repair
items.
During the first nine months of fiscal year 1996, the
Company sold land in Ohio and Georgia for net proceeds of
approximately $339,000 and $81,000, respectively. Also, in
September 1995, the Company was refunded its entire investment
of $61,000 in its joint venture for the purpose of developing a
subdivision lot in Atlanta, Georgia.
The Company signed a contract for the sale of a
parcel of its land in Dallas, Texas for net proceeds of
approximately $450,000. The Company also signed a contract for
the sale of a parcel of land in Athens, Georgia for net proceeds
of approximately $140,000. Additionally, the Company signed a
contract for the sale of approximately five acres of land in
Maitland, Florida for net proceeds of approximately $1.2
million. The above sales are scheduled to close in August 1996
(two) and September 1996, respectively, but all of the contracts
have several contingencies which allow the buyers to withdraw at
any time.
On August 16, 1995, RW Hotel Partners, L.P. was
organized as a limited partnership (the "Partnership") under the
laws of the State of Delaware. Concurrently, the Company formed
Ridgewood Hotels, Inc., a Georgia corporation ("Ridgewood
Hotels") which became the sole general partner in the
Partnership with RW Hotel Investments Associates, L.L.C.
("Investor") as the limited partner. Ridgewood Hotels has a 1%
base distribution percentage versus 99% for the Investor.
However, distribution percentages do vary depending on certain
defined preferences and priorities pursuant to the Partnership
Agreement ("Agreement") which are discussed below. The
partnership was originally formed to acquire a hotel property in
Louisville, Kentucky. The terms of this partnership will serve
as a guideline for other potential acquisitions with the
Investor or its affiliates.
The Partnership Agreement was amended and restated on
September 8, 1995. Distributable Cash is defined as the net
income from the property before depreciation plus any net sale
proceeds and net financing proceeds less capital costs.
Distributions of Distributable Cash shall be made as follows:
- First, to the Investor until there has been
distributed to the Investor an amount equal to a 15% cumulative
internal rate of return on the Investor's investment.
- Second, to Ridgewood Hotels until the aggregate
amount received by Ridgewood Hotels equals the aggregate cash
contributions made by Ridgewood Hotels to the Partnership (as of
5/31/96, Ridgewood Hotels contributed approximately $771,000).
- Third, 12% to Ridgewood Hotels and 88% to the
Investor until there ha been distributed to the Investor an
amount equal to a 25% cumulative internal rate of return on
Investor's investment.
- Fourth, 75% of the residual to the Investor and 25%
to Ridgewood Hotels.
A Management Agreement exists between the Partnership
and the Company as Manager ("Manager") for the purpose of
managing hotels in Kentucky, Georgia and South Carolina. The
Manager shall be entitled to the following property management
fees:
(1) 2.5% of the gross revenues from the hotel
property.
(2) 1% of the gross revenues from the hotel property
as an incentive fee if distributable cash equals or exceeds
13.5% of certain aggregate acquisition costs. No management
fees are payable with respect to the first 12-month period of
management of the hotel in Kentucky.
A Construction Management Agreement exists between
the Partnership and the Manager for the purpose of managing
future improvements to the properties.
The Company currently has approximately $771,000
invested in the Partnership. The Partnership purchased a hotel
in Louisville, Kentucky for approximately $16,000,000. In
December 1995 and January 1996, the Partnership purchased four
hotel properties in Georgia for approximately $15,000,000 and a
hotel in South Carolina for $4,000,000, respectively. The
Company may make future capital contributions to the
Partnership. Management expects to fund such capital
contributions through available cash or from loans from the
Partnership. Additionally, the Company may invest in other
partnerships to acquire hotels in the future.
Since the Company is not currently generating
sufficient operating cash to cover overhead and debt service,
the Company must continue to sell real estate, seek alternative
financing or otherwise recapitalize the Company. The Company
also intends to aggressively pursue the acquisition of hotels
and hotel management contracts which would provide additional
cash flow.
RESULTS OF OPERATIONS --
The Company had gains from real estate sales of
approximately $9,000 and $138,000 for the three and nine months
ended May 31, 1996. During the three and nine months ended May
31, 1995, the Company had gains from real estate sales of
approximately $253,000 and $246,000, respectively. Gains or
losses on sales are dependent upon the specific assets sold in a
particular period and the terms of each sale.
Operating revenues from real estate properties
decreased approximately $71,000, or 8%, and $556,000, or 21%,
respectively, for the three and nine months ended May 31, 1996,
compared to the three and nine months ended May 31, 1995. The
decrease was the result of the sale of the Company's weekly
rental hotel in Orlando, Florida during fiscal year 1995. For
the nine months ended May 31, 1996, operating revenues increased
approximately $41,000 at the Company's hotel in Longwood,
Florida.
Revenues from hotel management increased
approximately $134,000, or 140%, and $298,000, or 183%,
respectively, for the three and nine months ended May 31, 1996
compared to the three and nine months ended May 31, 1995 due to
the acquisition of hotels and a hotel management company. In
turn, expenses of hotel management increased approximately
$117,000, or 102%, and $241,000, or 96%, respectively, for the
three and nine months ended May 31, 1996 compared to the three
and nine months ended May 31, 1995.
Expenses of real estate properties during the three
and nine months ended May 31, 1996 decreased $132,000, or 17%,
and $550,000, or 24%, respectively, compared to the three and
nine months ended May 31, 1995 due primarily to the sale of the
Company's weekly rental hotel in Florida. Expenses decreased by
approximately $19,000 at the Company's hotel in Florida for the
nine months ended May 31, 1996 compared to the nine months ended
May 31, 1995.
No provision for possible losses was necessary for
the nine months ended May 31, 1996. The provision of $50,000
for possible losses in fiscal year 1995 pertains to a land
parcel in Atlanta, Georgia which has been sold.
Interest expense increased approximately $6,000 for
the three months ended May 31, 1996 compared to the three months
ended May 31, 1995 due to the increase in outstanding debt.
Interest expense decreased approximately $47,000 for the nine
months ended May 31, 1996 compared to the nine months ended May
31, 1995 due to the decrease in outstanding debt. There was no
capitalized interest during the three or nine months ended May
31, 1996 or May 31, 1995.
General, administration and other expenses increased
approximately $17,000, or 5%, and $100,000 or 11%, respectively,
for the three and nine months ended May 31, 1996 compared to the
three and nine months ended May 31, 1995 as a result of slightly
increased overhead due to an expanding business entity.
Due to the Company's aggressive movement into the
business of acquiring, developing, operating and selling hotel
properties throughout the country, the Company increased
business development costs approximately $43,000, or 205%, and
$43,000, or 41%, respectively, for the three and nine months
ended May 31, 1996 compared to the three and nine months ended
May 31, 1995.
PART II. OTHER INFORMATION
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K:
A. Exhibits:
27 Financial Data Schedule
B. Reports on Form 8-K:
No exhibits or reports on Form 8-K were filed
during the three months ended May 31, 1996.
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.
RIDGEWOOD PROPERTIES, INC.
By: /s/ N. R. Walden__________
N. Russell Walden
President
By: /s/ Karen S. Hughes_______
Karen S. Hughes
Vice President,
Chief Accounting Officer
Date: July 12, 1996