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UNITED STATES 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 Period Ended March 31, 2001
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or
[ ] Transition Report Pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934 for the Transition Period From to
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Commission File Number 000-30967
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BERTHEL GROWTH TRUST II
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(Exact name of Registrant as specified in its charter)
DELAWARE 42-6603601
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(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
701 Tama Street, Marion, Iowa 52302
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(Address of principal executive offices) (Zip Code)
(319) 447-5700
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Registrant's telephone number, including area code
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
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Applicable Only to Corporate Issuers
Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the latest practical date.
Shares of Beneficial Interest - 1,000 shares as of April 25, 2001
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BERTHEL GROWTH TRUST II
INDEX
PART I. FINANCIAL INFORMATION PAGE
Item 1. Financial Statements (unaudited)
Statements of Assets and Liabilities -
March 31, 2001 and December 31, 2000 3
Statement of Operations -
three months ended March 31, 2001 4
Statement of Changes in Net Assets (Liabilities) -
three months ended March 31, 2001 5
Statement of Cash Flows -
three months ended March 31, 2001 6
Notes to Financial Statements 7
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations 8
Item 3. Quantitative and Qualitative Disclosures About Market Risk 8
PART II. OTHER INFORMATION
Item 1. Legal Proceedings 8
SIGNATURES 9
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BERTHEL GROWTH TRUST II
STATEMENTS OF ASSETS AND LIABILITIES (UNAUDITED)
March 31, 2001 December 31, 2000
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ASSETS
Cash $ 9,947 $ 9,947
Deferred offering costs 283,049 270,721
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TOTAL ASSETS 292,996 280,668
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LIABILITIES
Due to affiliate 285,049 272,721
Accrued liabilities 11,936 6,500
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TOTAL LIABILITIES 296,985 279,221
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NET ASSETS (LIABILITIES)
(equivalent to $(3.99) per share
at March 31, 2001 and $1.45 per share
at December 31, 2000) $ (3,989) $ 1,447
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Net assets (liabilities) consist of:
Shares of beneficial interest (3,000,000 shares
authorized; 1,000 shares issued and outstanding) $ 10,000 $ 10,000
Undistributed net investment loss (13,989) (8,553)
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$ (3,989) $ 1,447
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See notes to financial statements.
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BERTHEL GROWTH TRUST II
STATEMENT OF OPERATIONS (UNAUDITED)
Three Months Ended
March 31, 2001
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EXPENSES:
Accounting $ 5,436
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Total expenses 5,436
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Net decrease in net assets $ 5,436
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Per beneficial share amounts:
Net decrease in net assets $ 5.44
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Weighted average shares 1,000
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See notes to financial statements.
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BERTHEL GROWTH TRUST II
STATEMENT OF CHANGES IN NET ASSETS (LIABILITIES) (UNAUDITED)
Three Months Ended
March 31, 2001
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Net assets at December 31, 2000 $ 1,447
Net decrease in net assets (5,436)
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Net assets (liabilities) at March 31, 2001 $ (3,989)
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See notes to financial statements.
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BERTHEL GROWTH TRUST II
STATEMENT OF CASH FLOWS (UNAUDITED)
Three Months Ended
March 31, 2001
OPERATING ACTIVITIES:
Net decrease in net assets $ (5,436)
Adjustments to reconcile net decrease in net assets
to net cash flows from operating activities:
Changes in operating assets and liabilities
Deferred offering costs (12,328)
Due to affiliate 12,328
Accrued liabilities 5,436
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Net cash flows from operating activities -0-
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NET INCREASE IN CASH -0-
CASH AT BEGINNING OF PERIOD 9,947
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CASH AT END OF PERIOD $ 9,947
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See notes to financial statements.
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BERTHEL GROWTH TRUST II
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
NOTE A - BASIS OF PRESENTATION
The accompanying unaudited financial statements have been prepared in accordance
with accounting principles generally accepted in the United States of America
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 information
and footnotes required by generally accepted accounting principles for complete
financial statements and should be read in conjunction with the Trust's Form
10-K filed with the Securities and Exchange Commission for the year ended
December 31, 2000. In the opinion of management, all adjustments (consisting of
normal recurring accruals) considered necessary for a fair representation have
been included. Operating results for the three months ended March 31, 2001 are
not necessarily indicative of the results that may be expected for the year
ended December 31, 2001.
The preparation of the Trust's financial statements in conformity with
accounting principles generally accepted in the United States of America
necessarily requires management to make estimates and assumptions that affect
the reported amounts of assets and liabilities and disclosure of contingent
assets and liabilities at the date of financial statements and the reported
amounts of revenues and expenses during the reporting period. Actual results
could differ from those estimates.
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ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS
As the Trust is only in its offering phase, a discussion of operating results,
liquidity, and capital resources would not be meaningful.
The Trust is offering shares at $10 per share, with a minimum offering of
$6,000,000 (600,000 shares). On March 20, 2001, the Trust filed for an automatic
extension of 90 days for the offering of shares. Until the minimum offering has
been achieved, funds paid by subscribers are deposited in an interest-bearing
bank escrow account with Firstar Bank, N.A. If the Trust is not successful in
reaching the minimum offering, all subscribers' funds will be promptly returned
in full, along with each subscriber's share of any interest earned on their
investment, without any deduction for any expenses. Through April 30, 2001, a
total of $764,500 has been raised. No assurance can be given that the Trust will
be successful in raising the minimum offering amount.
If the Trust has not received subscriptions for at least 600,000 shares
($6,000,000) when the offering terminates, the Trust will promptly refund any
subscription amounts received with interest, if any, actually earned thereon.
Offering costs incurred by the Trust Advisor for the period June 15, 2000 (date
of inception) to March 31, 2001 totalled $283,049. These costs have been
reported as an asset and will be deducted upon the receipt of proceeds from the
subsequent sale of share by the Trust beyond the initial $10,000 capitalization.
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
Not applicable
PART II OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
None.
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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.
BERTHEL GROWTH TRUST II
(Registrant)
Date: May 7, 2001 /s/ Ronald O. Brendengen
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Ronald O. Brendengen, Chief Financial Officer,
Treasurer
Date: May 7, 2001 /s/ Daniel P. Wegmann
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Daniel P. Wegmann, Controller
Date: May 7, 2001 /s/ Henry Royer
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Henry Royer, President
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