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 July 31, 2001
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
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THE FORECAST GROUP "Registered Tradename", L.P.
(Exact Name of Registrant as specified in its charter)
California 33-0582072
----------- ----------
(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
------------------- -----------------------------------------
None 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
August 23, 2001.
THE FORECAST GROUP "Registered Tradename", L.P.
CONSOLIDATED BALANCE SHEETS
(Amounts in 000's)
July 31, 2001 October 31, 2000
(Unaudited)
------------- ----------------
Assets:
- -------
Cash and Cash Equivalents $26,378 $26,607
Accounts Receivable 2,628 809
Accounts and Notes Receivable,
Related Parties 3,951 14,149
Real Estate Inventory 212,707 142,768
Property and Equipment, Net 352 435
Other Assets 2,629 1,565
-------- --------
Total Assets $248,645 $186,333
======== ========
Liabilities & Partners' Equity:
- -------------------------------
Accounts Payable $42,117 $31,382
Accrued Expenses 6,231 6,498
Notes Payable:
Senior Notes at 11 3/8% due
December 2000 - 19,700
Collateralized by Real Estate
Inventory 78,551 44,028
Unsecured 2,518 -
Other Notes Payable - 3,525
-------- --------
Total Notes Payable 81,069 67,253
-------- --------
Total Liabilities $129,417 $105,133
Partners' Equity 119,228 81,200
-------- --------
Total Liabilities &
Partners' Equity $248,645 $186,333
======== ========
<FN> See notes to consolidated financial statements.
THE FORECAST GROUP "Registered Tradename", L.P.
CONSOLIDATED STATEMENTS OF INCOME AND PARTNERS' EQUITY
FOR THE NINE AND THREE MONTHS ENDED JULY 31, 2001 AND 2000
(Unaudited)
(Amount's in 000's)
Nine Months Ended Three Months Ended
July 31, July 31,
----------------- ------------------
2001 2000 2001 2000
----------------- ------------------
<s> <c> <c> <c> <c>
Homebuilding Revenues $320,188 $213,288 $127,728 $83,202
Cost of Homes Sold 240,342 169,719 94,314 66,027
-------- -------- -------- -------
Gross Profit 79,846 43,569 33,414 17,175
-------- -------- -------- -------
Land Sale Revenues 19,739 - - -
Cost of Land Sold 18,431 - 135 -
-------- -------- -------- -------
Gain/(Loss) on Land Sales 1,308 - (135) -
-------- -------- -------- -------
Operating Expenses:
- -------------------
Selling & Marketing Exp. 13,771 11,884 5,317 3,885
General & Admin. Expenses 21,542 14,895 8,157 5,636
Other Operating Costs 187 1,343 159 1
------ ------ ------ -----
Total Operating Expenses 35,500 28,122 13,633 9,522
------ ------ ------ -----
Operating Income 45,654 15,447 19,646 7,653
Other Income
- ------------
Interest Income 745 757 206 275
Other Income and Expenses, net 194 555 323 117
------ ------- ------- ------
Total Other Income 939 1,312 529 392
------- ------- ------- ------
Net Income $46,593 $16,759 $20,175 $8,045
======= ======= ======= ======
Partners' Equity at
Beginning of Period $81,200 $53,018 $102,053 $59,707
Capital Distributions, net (8,565) (2,035) (3,000) (10)
Net Income this Period 46,593 16,759 20,175 8,045
-------- ------- -------- ------
Partners' Equity at
End of Period $119,228 $67,742 $119,228 $67,742
======== ======= ======== =======
<FN> See notes to consolidated financial statements.
THE FORECAST GROUP "Registered Tradename", L.P.
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE NINE MONTHS ENDED JULY 31, 2001 AND 2000
(Unaudited)
(Amounts in 000's)
For the Nine Months Ended
July 31,
-------------------------
2001 2000
-------------------------
<s> <c> <c>
Operating Activities:
- ---------------------
Net Income $46,593 $16,759
Adjustments to Reconcile Net Income to
Net Cash Used for Operating Activities
Depreciation on Property and Equipment 181 211
Loss on Sale of Property and Equipment 1 1
Gain on Land/Lot Sales (1,308) -
Other Operating Costs 187 1,343
Equity Income of Unconsolidated Joint Venture 746 376
(Increase)/Decrease in Accounts Receivable (1,819) 3,516
Increase in Real Estate Inventory (68,818) (37,068)
Increase in Other Assets (2,251) (71)
Increase/(Decrease) in Accounts Payable
and Accrued Expenses 10,468 (1,332)
------ ------
Net Cash Used for Operating Activities (16,020) (16,265)
------ ------
Investing Activities:
- ---------------------
Contribution to Joint Venture - (5)
Distribution from Joint Venture 441 397
Additions to Property and Equipment (99) (188)
Proceeds from Sale of Property and Equipment - 29
------ -----
Net Cash Provided by Investing Activities 342 233
------ -----
Financing Activities:
- ---------------------
Capital Distributions, net (8,565) (2,035)
Decrease in Capital Notes Receivable from Partner - 300
Decrease/(Increase) in Accounts and Notes
Receivable, Related Parties 10,198 (1,907)
Proceeds from Notes Payable, Collateralized
by Real Estate 234,694 154,374
Proceeds from Notes Payable, Unsecured 9,099 -
Proceeds from Notes Payable, Other 3,769 240
Principal Payments on Notes Payable,
Senior Notes (19,700) -
Principal Payments on Notes Payable,
Collateralized by Real Estate (200,171) (132,350)
Principal Payments on Notes Payable,
Unsecured (6,581) -
Principal Payments on Notes Payable, Other (7,294) (900)
------- -------
Net Cash Provided by Financing Activities 15,449 17,722
------- -------
(Decrease)/Increase in Cash and
Cash Equivalents (229) 1,690
Cash and Cash Equivalents at Beginning of Period 26,607 22,594
------- -------
Cash and Cash Equivalents at End of Period $26,378 $24,284
======= =======
<FN> See notes to consolidated financial statements.
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,
2000 (File No. 33-72106) as filed with the Securities and Exchange
Commission.
The results of operations for the nine months ended July 31, 2001,
do not necessarily indicate the results that can be expected for the full
fiscal year.
The results of operations for the nine months ended July 31, 2001,
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 the Form 10-K for the year
ended October 31, 2000 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
- Changes in economic conditions in the markets in which the
Company operates
- Fluctuations in mortgage and federal funds interest rates
- Cost increases resulting from adverse weather conditions,
shortages of labor and/or construction materials
- Changes in governmental regulations which may delay new home
development or impose additional costs or fees.
2. Inventory
A summary of inventory is as follows:
(Amounts in 000's)
July 31, 2001 October 31, 2000
------------- ----------------
<s> <c> <c>
Homes Under Construction $128,601 $71,399
Development Projects in Process 53,837 49,501
Unimproved Land 17,762 15,293
Model Homes 12,507 6,575
-------- --------
Total $212,707 $142,768
======== ========
3. Interest
The following summarizes the components of interest incurred,
capitalized, expensed and paid:
(Amounts in 000's)
For the Nine Months For the Three Months
Ended Ended
July 31, July 31,
----------------- ------------------
2001 2000 2001 2000
----------------- ------------------
<s> <c> <c> <c> <c>
Interest incurred and capitalized $7,329 $7,647 $2,215 $2,397
Interest incurred and expensed - - - -
------ ------ ------ ------
Total Interest Incurred $7,329 $7,647 $2,215 $2,397
====== ====== ====== ======
Capitalized interest amortized to
cost of homes sold $5,702 $5,743 $1,902 $2,187
Interest paid $8,182 $8,207 $2,215 $2,957
4. Transactions With Affiliates
During the nine months ended July 31, 2001, the Company sold land in
Bullhead, Arizona to an affiliated entity in which Mr. Previti is the 100%
owner for a sales price of $1,713,361. The Company received cash payments of
$400,000 and an unsecured note of $1,313,000. No gain or loss was recognized
on the sale.
5. Receivables From Affiliates
During the nine months ended July 31, 2001, accounts and notes receivable
from related parties decreased $10.2 million to $4.0 million. The decrease
primarily relates to the paydown of certain receivables from affiliated entities
in which Mr. Previti is the 100% owner. The Company anticipates additional
paydowns during the fourth fiscal quarter.
6. 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. On December 13, 2000, the Company retired the
remaining outstanding $19,700,000 of Senior Notes held in the names of investors
other than the Company.
7. Real Estate Held for Development and Sale
In accordance with FASB Statement No. 121, "Accounting for the Impairment
of Long-Lived Assets and for Long-Lived Assets to Be Disposed Of" (Statement
121), when events or circumstances indicate that an impairment of 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 future
undiscounted cash flows, excluding interest charges, 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.
On an ongoing basis, management analyzes future undiscounted cash flows
for all real estate projects where impairment indicators are present. Based
upon such analysis, no provision for impairment loss was recorded for the nine
months ended July 31, 2001 or 2000.
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. This table excludes land/lot sales revenue and costs of land/lots sold.
Percent of Percent of
Housing Sales Housing Sales
For the Nine For the Three
Months Ended Months Ended
July 31, July 31,
---------------- ---------------
2001 2000 2001 2000
---------------- ---------------
<s> <c> <c> <c> <c>
Homebuilding Revenues 100.0% 100.0% 100.0% 100.0%
Cost of Homes Sold 75.1% 79.6% 73.8% 79.4%
------ ------ ------ ------
Gross Profit 24.9% 20.4% 26.2% 20.6%
Operating Expenses:
- -------------------
Selling & Marketing Expenses 4.3% 5.6% 4.2% 4.7%
General & Admin. Expenses 6.7% 7.0% 6.4% 6.8%
Other Operating Costs 0.1% 0.6% 0.1% 0.0%
------ ----- ----- -----
Total Operating Expenses 11.1% 13.2% 10.7% 11.5%
------ ----- ----- -----
Operating Income 13.8% 7.2% 15.5% 9.1%
====== ===== ===== =====
Amount % Amount Amount % Amount
Change Change
---------------------- -------------------
<s> <c> <c> <c> <c> <c> <c>
Number of sales,
net of cancellations:
- ----------------------
Northern California 652 -0.6% 656 204 -22.1% 262
Southern California 959 60.9% 596 365 92.1% 190
Arizona 31 N/A - 22 N/A -
----- ----- ----- --- ------ ---
Total 1,642 31.2% 1,252 591 30.8% 452
Number of closings:
- -------------------
Northern California 704 35.9% 518 240 10.6% 217
Southern California 744 34.8% 552 329 74.1% 189
Arizona 3 N/A - 2 N/A -
----- ----- ----- --- ----- ---
Total 1,451 35.6% 1,070 571 40.6% 406
Backlog units at
end of period:
- ----------------
Northern California 196 -26.6% 267
Southern California 347 115.5% 161
Arizona 28 N/A -
--- ------ ---
Total 571 33.4% 428
Aggregate value of backlog (in millions) $128.5 $89.5
====== =====
Results of Operations
For the Nine Months ended July 31, 2001 and July 31, 2000
Despite weather related delays in the commencement of construction
at the beginning of calendar year 2001, and the media predictions of an
economic slowdown and an impending energy shortage, (which the Company
was insulated from due to its continued focus on the entry-level and
affordable price point markets) the Company was able to produce record
revenues, closings and home sales for the nine-month period ended July 31,
2001. Housing revenues were $320.2 million, an increase of $106.9 million,
or 50.1%, from the nine months ended July 31, 2000. The closings of 1,451
homes were an increase of 381 closings, or 35.6%, over the nine-month period
ended July 31, 2000. The record home sales were 1,642 homes, representing
an increase of 390 homes, or 31.2%, over the nine-month period ended July 31,
2000. The increase in these three indices was due to increased demand for
housing by first-time homebuyers that stemmed from the continued
strength of the affordable range of the California housing market and, to
a lesser degree, the reduction of mortgage rates during the period.
The average sales price of the homes closed in the nine months ended July 31,
2001 was $220,667, an increase of $21,332 or 10.7%, as compared to the nine-
month period ended July 31, 2000. The increase in average sales price was due
primarily to the Company's ability to increase prices in its high demand
communities. The Company was successfully able to achieve this result by
carefully weighing the affordability of its homes against the desired absorption
of those same homes, while at the same time not seeking to raise prices merely
to achieve the highest possible revenues.
Gross profit from housing sales was $79.8 million for the nine months
ended July 31, 2001, representing an increase of $36.3 million, or 83.3%, from
the nine months ended July 31, 2000. During the same nine-month period, gross
profit per home increased to $55,028, from $40,719, representing a 35.1%
increase over the comparable period in 2000. Gross profit margin for the nine
months ended July 31, 2001 rose to 24.9% versus 20.4% for the same period one
year earlier. The increase in gross profit and gross margin was due primarily
to increasing inventory turns which reduced interest in cost of sales and the
continued strength of the affordable range of the California housing market,
which permitted the Company to increase sales prices while it maintained
construction costs at level amounts.
During the nine months ended July 31, 2001, the Company sold 245 lots in
Phoenix, Arizona, 28 lots in Perris, California, one parcel of land located in
Bullhead, Arizona, 61 lots in Oceanside, California, and 69 lots in Corona,
California, all of which, in the aggregate, resulted in net gains of $1,308,000.
There were no land sales in the comparable nine-month period of 2000.
The Company's interest amortized to cost of homes sold (as a percentage
of revenue) decreased to 1.8%, for the nine months ended July 31, 2001, from
2.7% for the same period a year ago. This decrease is directly attributable
to the Company's increased level of closings in the first nine months of fiscal
year 2001, which increased the rate of capital turnover, thereby resulting in
lower capitalized interest costs. In addition, the Company continuously
evaluates the cost of capital charged by each of its lenders and carefully
monitors and manages its debt level relating to those lenders.
Selling and marketing expenses increased $1.9 million or 15.9% during the
nine months ended July 31, 2001, as compared to the nine months ended July 31,
2000, but decreased 23.2%, as a percentage of revenue, when compared to the
comparable period in 2000. This decrease, as a percentage of revenue, is
attributable to the higher closing volume, higher average sales prices, and
lower incentives required to achieve the desired sales absorptions.
General and administrative expenses decreased from 7.0% to 6.7%, as a
percentage of revenue, for the nine months ended July 31, 2001 as compared to
the nine months ended July 31, 2000. The decrease is primarily attributable to
efficiencies in operations and the higher volume of closings achieved during the
nine months ended July 31, 2001.
Other operating costs for the nine months ended July 31, 2001 were
$187,000, as compared to $1,343,000 for the nine months ended July 31, 2000.
The other operating costs of $1,343,000 during the nine months ended July 31,
2000, was due to expensing the carrying costs of one community in Fontana that
had been held for future development. The Company has begun developing the
Fontana community and began closing homes in the second quarter of fiscal 2001.
Net income increased 178.0% to $46.6 million during the nine months ended
July 31, 2001, as compared to net income of $16.8 million for the nine months
ended July 31, 2000. Net income, as a percentage of revenue, increased to 14.6%
as compared to 7.9% a year ago. These results are attributable to maintaining
efficient production costs and high inventory turnover, while taking advantage
of increases in the average selling price within each sub-market.
Results of Operations
For the Three Months ended July 31, 2001 and July 31, 2000
Despite media predictions of an economic slowdown and an impending energy
shortage, the Company's continued focus on the entry-level and affordable price
point markets enabled it to produce record revenues and closings for the three-
month period ended July 31, 2001. Housing revenues were $127.7 million, an
increase of $44.5 million, or 53.5%, from the three months ended July 31, 2000.
The July 31, 2001 three month closings of 571 homes represented an increase of
165 closings, or 40.6%, over the three-month period ended July 31, 2000. The
home sales realized were 591 homes, representing an increase of 139 homes, or
30.8%, over the three-month period ended July 31, 2000. The increase in sales
in Southern California off-set a decrease in sales in Northern California, which
is directly attributable to delays in opening a number of new communities during
the three months ended July 31, 2001. This situation is expected to change
when, in the fourth quarter, Northern California will open four new communities,
which will serve to bring the fiscal year 2001 sales back into line with our
full year business plan. The increase in revenues and closings is due to a
continuing high level of interest and demand for housing by first-time
homebuyers that stemmed from the continued strength of the affordable range of
the California housing market and, to a lesser degree, the reduction of mortgage
rates during the period. The average sales price of the homes closed in the
three months ended July 31, 2001 was $223,691, an increase of $18,760 or 9.2%,
as compared to the three-month period ended July 31, 2000. The increase in
average sales price was due primarily to the Company's ability to increase
prices in its high demand communities. The Company was successfully able to
achieve this result by carefully weighing the affordability of its homes against
the desired absorption of those same homes, while at the same time not seeking
to raise prices merely to achieve the highest possible revenues.
Gross profit from housing sales was $33.4 million for the three months
ended July 31, 2001, representing an increase of $16.2 million, or 94.5%, from
the three months ended July 31, 2000. During the same three-month period, gross
profit per home increased to $58,518, from $42,303, representing a 38.3%
increase over the comparable period in 2000. Gross profit margin for the three
months ended July 31, 2001 rose to 26.2% versus 20.6% for the same period one
year earlier. The increase in gross profit and gross margin was due primarily
to the continued strength of the California affordable housing market and that
market's ability to absorb increased sales prices while at the same time
maintaining construction costs at level amounts.
During the three months ended July 31, 2001, the Company incurred (as a
loss on land sales) an additional $135,000 in costs relating to the March 2001
sale of the 245 lots sold in Phoenix, Arizona. There were no land sales, or
realization of costs, in the comparable three-month period of 2000.
The Company's interest amortized to cost of homes sold (as a percentage of
revenue) decreased to 1.5%, for the three months ended July 31, 2001 from 2.6%
for the same period a year ago. This decrease is directly attributable to the
Company's increased level of closings experienced in the third quarter of fiscal
year 2001, which resulted in increased rates of capital turnover, and lower
capitalized interest costs. In addition, the Company continuously evaluates the
cost of capital charged by each of its lenders and carefully monitors and
manages its debt level relating to those lenders.
Selling and marketing expenses increased $1.4 million or 36.9% during the
three months ended July 31, 2001, as compared to the three months ended July 31,
2000, but decreased 10.6%, when compared to the comparable period in 2000. This
decrease, as a percentage of revenue, is attributable to the higher closing
volume, higher average sales prices, and lower incentives required to achieve
the desired sales absorptions.
General and administrative expenses decreased from 6.8% to 6.4%, as a
percentage of revenue, for the three months ended July 31, 2001 as compared to
the three months ended July 31, 2000. The decrease is primarily attributable to
efficiencies in operations and the higher volume of closings achieved during the
three months ended July 31, 2001.
Net income increased 150.8% to $20.2 million during the three months ended
July 31, 2001, as compared to a net income of $8.0 million for the three months
ended July 31, 2000. Net income, as a percentage of revenue, increased to 15.8%
as compared to 9.7% a year ago. These results are attributable to maintaining
efficient production costs and high inventory turnover, while taking advantage
of increases in the average selling price within each sub-market.
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 cash flow from operations, secured borrowings from
commercial banks and financial institutions and with unsecured borrowings in the
capital markets.
The Company's financing needs depend primarily upon sales volume, asset
turnover and land acquisition. When liquidating inventory through home
closings, the Company generates cash. When building inventory, the Company uses
substantial amounts of cash obtained through borrowings and cashflow from
operations. The Company has had adequate liquidity throughout its operating
history, despite recessionary periods, and historically the Company's liquidity
needs have been met through the use of cash provided by a combination of
closings and financing activities. In February 1994, the Company issued $50
million of 11 3/8% Senior Notes due in 2000 through a public debt offering. At
certain times during the past few years the Company repurchased portions of its
outstanding 11 3/8% Senior Notes on the open market. In December 2000, the
Company paid off and retired all remaining outstanding Senior Notes.
At July 31, 2001, the Company had commitments for $105.8 million under
several revolving credit facilities with commercial banks and financial
institutions, of which $70.4 million was outstanding. In addition, at July 31,
2001, the Company had community specific facilities capable of providing
aggregate fundings of $8.2 million, all of which was outstanding. Borrowings
under the credit facilities are secured by liens on specific real property owned
by the Company, and carry varying levels of recourse against the Company. The
Company also utilizes unsecured borrowing lines from time-to-time to meet its
operational needs and objectives. The unsecured borrowing lines have
commitments of $2.5 million, all of which was outstanding as of July 31, 2001.
On July 31, 2001, the aggregate outstanding principal balance under all of the
Company's credit facilities was $81.1 million and the recourse to the Company
from those borrowings was 33.4% of the total outstanding balance, or $27.1
million. The lender institutions charge interest rates ranging from LIBOR plus
2.10% (5.74% as of July 31, 2001) to prime plus .50% (7.25% as of July 31,
2001).
To date, the Company has been able to obtain acceptable land acquisition
and construction financing. Consistent with an industry trend, certain lenders
require increased amounts of cash invested in a project by borrowers in
connection with both new loans and the extension of existing loans. The Company
currently intends to continue utilizing conventional bank financing for land
acquisition and construction financing, and use its own cash to fund that
portion of the total project costs and acquisition costs its lenders require be
supplied (in form of equity) in order to obtain construction or land acquisition
financing.
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 needs for capital. However, the Company expects
that available capital resources, in the form of retained earnings and debt
financing, will be sufficient to meet its normal operating requirements over the
near term.
PART II. OTHER INFORMATION
Item 1. Legal Proceedings
-----------------
(a) None
Item 2. Changes in Securities
----------------------
(a) Senior Notes were paid in full on December 13, 2000
Item 3. Defaults upon Senior Securities
-------------------------------
(a) None
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.
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
August 23, 2001 By: /s/ James P. Previti
- --------------- --------------------------
Date James P. Previti
President
By: /s/ Richard B. Munkvold
-----------------------------
Richard B. Munkvold
Chief Financial Officer
Principal Accounting Officer