1
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, 1996
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 33-89506
BERTHEL GROWTH & INCOME TRUST I
(Exact name of Registrant as specified in its charter)
DELAWARE 52-1915821
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(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
100 Second Street SE, Cedar Rapids, Iowa 52401
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(Address of principal executive offices) (Zip Code)
(319) 365-2506
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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
---- ----
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 - 6,275 shares as of April 30, 1996.
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BERTHEL GROWTH & INCOME TRUST I
INDEX
PART I. FINANCIAL INFORMATION PAGE
- - ------------------------------ ----------
Item 1. Financial statements (unaudited):
Statement of assets and liabilities - March 31, 1996 and
December 31, 1995 3
Statements of operations - three months ended March 31,
1996 and for the period from February 10, 1995
(date of inception) to March 31, 1995 4
Statement of changes in net assets - three months ended
March 31, 1996 5
Statements of cash flows - three months ended March 31,
1996 and for the period from February 10, 1995
(date of inception) to March 31, 1995 6
Notes to the financial statements 7
Item 2. Management's discussion and analysis of financial condition
and results of operations. 7
PART II. OTHER INFORMATION
- - ----------------------------
Item 1. Legal proceedings - none
Item 2. Changes in securities - 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
a. Exhibits - none
b. No report on Form 8-K was filed for the quarter ended March 31, 1996
SIGNATURES
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BERTHEL GROWTH & INCOME TRUST I
STATEMENT OF ASSETS AND LIABILITIES
MARCH 31, 1996
March 31,1996 December 31, 1995
(Unaudited)
--------------- -----------------
ASSETS
Temporary investment in money
market securities at market value $4,968,500 $4,272,549
Cash 26,167 102,269
Interest receivable -0- 17,830
Organizational costs 3,916 4,167
Other receivables 9,832 -0-
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5,008,415 4,396,815
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LIABILITIES
Distributions payable to shareholders 264,238 126,787
Due to affiliate 30,289 27,214
Accounts payable 11,633 -0-
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306,160 154,001
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Net assets (equivalent to $808.50 per share
in 1996 and $827.38 per share in 1995) $4,702,255 $4,242,814
========== ==========
Net assets consist of:
Shares of beneficial interest (25,000 shares
authorized; 5,816 shares in 1996 and 5,128
shares in 1995, issued and outstanding) $4,709,892 $4,257,497
Undistributed net investment loss (7,637) (14,683)
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$4,702,255 $4,242,814
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See accompanying notes.
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BERTHEL GROWTH & INCOME TRUST I
STATEMENTS OF OPERATIONS (UNAUDITED)
February 10, 1995
Three Months Ended (date of inception) to
March 31, 1996 March 31, 1995
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INVESTMENT INCOME:
Interest income $ 56,045 $ 25
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Total investment income 56,045 25
EXPENSES:
Management fees 30,290 -0-
Administrative services 9,912 -0-
Other general and administrative
expenses 8,797 70
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Total expenses 48,999 70
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Net increase (decrease) in net assets
resulting from operations $ 7,046 $ (45)
=========== ============
Net income (loss) per beneficial share $ 1.78 $ (4.50)
============ ============
See accompanying notes.
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BERTHEL GROWTH & INCOME TRUST I
STATEMENT OF CHANGES IN NET ASSETS (UNAUDITED)
Three Months Ended March 31, 1996
Shares of
Beneficial
Interest Amount
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Net assets at December 31, 1995 5,128 $4,242,814
Net investment income for period --- 7,046
Proceeds from sales of shares of beneficial interest 688 688,000
Syndication costs incurred --- (98,154)
Distributions payable --- (137,451)
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Net assets at end of period 5,816 $4,702,255
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See accompanying notes.
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BERTHEL GROWTH & INCOME TRUST I
STATEMENT OF CASH FLOWS (UNAUDITED)
Three months ended February 10, 1995
March 31, 1996 (date of inception)
to March 31, 1995
------------------------ --------------------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net investment income (loss) $ 7,046 $ (45)
Adjustments to reconcile net investment loss
to net cash flows from operating activities:
Amortization of organizational costs 251 -0-
Changes in operating assets and liabilities:
Temporary investment in money market securities (695,951) (10,025)
Other receivable (9,832) -0-
Interest receivable 17,830 -0-
Due to affiliate 3,075 250
Accounts payable 11,633 -0-
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Net cash flowsfrom operating activities (665,948) ( 9,820)
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CASH FLOWS FROM INVESTING ACTIVITIES: -0- -0-
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from sales of shares of beneficial interest 688,000 10,000
Syndication costs incurred (98,154) -0-
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Net cash flows from financing activities 589,846 10,000
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NET INCREASE (DECREASE) IN CASH (76,102) 180
CASH AT BEGINNING OF PERIOD 102,269 -0-
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CASH AT END OF PERIOD $ 26,167 $ 180
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SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Noncash financing activities:
Distributions payable to shareholders $ 137,451 -0-
See accompanying notes.
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BERTHEL GROWTH & INCOME TRUST I
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
NOTE A -- BASIS OF PRESENTATION
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 information and footnotes required
by generally accepted accounting principles for complete financial statements
and should be read in conjunction with the Company's Form 10-K filed with the
Securities and Exchange Commission on March 22, 1996. 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, 1996 are not necessarily
indicative of the results that may be expected for the year ended December 31,
1996.
NOTE B - NET INCOME (LOSS) PER BENEFICIAL SHARE
Net income (loss) per beneficial share is based on the weighted average of
shares outstanding for the period ended March 31, 1996 of 3,968 shares and 10
shares for the period ended March 31, 1995.
Item 2. Managements Discussion and Analysis of Financial Condition and Results
of Operations.
RESULTS OF OPERATIONS:
Three Months Ended February 10, 1995
DESCRIPTION: March 31, 1996 (date of inception)
to March 31, 1995
------------------------- -----------------
Interest income $ 56,045 $ 25
Management fees $ 30,290 $ -0-
Administrative services $ 9,912 $ -0-
Other general and administrative expenses $ 8,797 $ 70
Berthel Growth & Income Trust I was formed on February 10, 1995. The Trust
received approval from the Securities and Exchange Commission to begin offering
shares of beneficial interest effective June 21, 1995.
The minimum offering of 1,500 shares sold was reached on August 30, 1995. As
of March 31, 1996, 5,816 shares were issued and outstanding. Net proceeds from
all shares sold through March 31, 1996 have been invested in short term
temporary investments.
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Item 2. Managements Discussion and Analysis of Financial Condition and Results
of Operations (Continued):
The Trust earned $56,045 of interest from the short term temporary investments
for the three months ended March 31, 1996.
Management fees of $30,290 were incurred for the period ending March 31, 1996.
The Trust pays the Trust Advisor an annual management fee equal to 2.5% of the
net asset value of the Trust.
Administrative fees of $9,912 were paid to the Dealer Manager for
administration of shareholder accounts and other administrative services.
On April 19, 1996, the Trust filed, with the Securities and Exchange
Commission, an amendment to the prospectus. The purpose of the amendment was
to update certain financial information provided in the prospectus and to
identify two portfolio companies the Trust intends to invest in. The two
portfolio companies are VisionComm, Inc. and Soil Recovery Services, Inc. The
proposed investments are debentures with 14-15% current interest yields, five
to seven year securities and have the rights to common stock in each company of
approximately 20% and 22% respectively.
LIQUIDITY AND CAPITAL RESOURCES
Three Months Ended February 10, 1995
March 31, 1996 (date of inception)
to March 31, 1995
- - ------------------------------------------------------------------------------------------------------------------------------------
Major Cash Source:
Proceeds from issuance of beneficial shares $ 688,000 $ 10,000
Major Cash Use:
Payments for syndication costs $ 98,154 $ -0-
Pending investment in Enhanced Yield Investments, the Trust has invested
$4,968,500 in a money market mutual fund.
Distributions of $264,238 have been accrued as of March 31, 1996. The Trust
will continue to accrue distributions based on 10% simple annual interest
computed on a daily basis from the initial closing (August 30, 1995) until the
Final Closing.
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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 & INCOME TRUST I
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(Registrant)
5-1-96 RONALD O. BRENDENGEN
Date ---------------------- ------------------------------------
Ronald O. Brendengen, Chief Financial
Officer, Treasurer
Date 5-1-96 DANIEL P. WEGMANN
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Daniel P. Wegmann, Controller