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FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

(Mark One)

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d)
OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended January 31, 2004 OR

X

 
       

 

______

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 _____________________________________________________________

First Hartford Corporation
(Exact name of registrant as specified in its charter)

Maine 01-0185800
(State or other jurisdiction of incorporation or organization)   (I.R.S. Employer Identification No.)

149 Colonial Road, Manchester, CT 06040
 (Address of principal executive offices) (Zip Code)

(860) 646-6555
(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 Company (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, and (2) has been subject to such filing requirements for the past 90 days.
Yes   X     No     

Amendment
____________________________________________________________________________

Amended effective November 15, 2002; compliance and phase-in details in Release No. 33-8128 (¶ 86,724), 67 F.R. 58480 Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Exchange Act): Yes ___ No  X

End of Amendment
                  ____________________________________________________________________

Indicate by check mark whether the registrant has filed all documents and reports required to be filed by Sections 12,13 or 15(d) of the Securities Exchange Act of 1934 subsequent to the distribution of securities under a plan confirmed by a court. 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 practicable date. 3,089,985 shares of common stock as of January 31, 2004.

 

FIRST HARTFORD CORPORATION  
  INDEX  
     
PART I. FINANCIAL INFORMATION PAGE
     
Item 1. Financial Statements  
     
  Independent Auditor’s Review Letter 1
     
  Consolidated Balance Sheets -  
       January 31, 2004 and April 30, 2003 2 & 3
     
  Consolidated Statements of Operations  
       For the Nine Months and Three Months  
       Ended January 31, 2004 and 2003. 4 & 5
     
  Consolidated Statements of Cash Flows  
       For the Nine Months and Three Months  
       Ended January 31, 2004 and 2003. 6 & 7
     
  Notes to Consolidated Financial Statements 8 & 9
     
Item 2. Management's Discussion and Analysis  
       Of Financial Condition and Results  
       Of Operations 9 - 11
     
Item 3. Quantitative and Qualitative Disclosures  
       About Market Risk 11
     
Item 4. Controls and Procedures 11
     
PART II. OTHER INFORMATION  
     
Item 1. Legal Proceedings 12
     
Item 2. Changes in Securities, use of Proceeds  
  And Issuer Purchases of Equity Securities 12
     
Item 3. Defaults Upon Senior Executives 12
     
Item 4. Submission of Matters to a Vote  
  Of Security Holders 12
     
Item 5. Other Information 12
     
Item 6. Exhibits and Reports on Form 8-K 13
     
  Signatures 14
     
   

 

Kostin, Ruffkess & Company, LLC
Letterhead

 

To the Board of Directors
First Hartford Corporation and Subsidiaries

 

INDEPENDENT ACCOUNTANTS' REPORT

 

We have reviewed the accompanying consolidated balance sheet of First Hartford Corporation and Subsidiaries as of January 31, 2004 and January 31, 2003, and the related consolidated statements of operations, and cash flows for the three months and nine months then ended.  These consolidated financial statements are the responsibility of the Company's management.

We conducted our review in accordance with Statements on Standards for Accounting and Review Services issued by the American Institute of Certified Public Accountants.  A review of interim financial information consists principally of applying analytical procedures to financial data and making inquiries of persons responsible for financial and accounting matters.  It is substantially less in scope than an audit conducted in accordance with auditing standards generally accepted in the United States of America, the objective of which is the expression of an opinion regarding the consolidated financial statements taken as a whole.  Accordingly, we do not express such an opinion.

Based on our review, we are not aware of any material modifications that should be made to the accompanying consolidated financial statements in order for them to be in conformity with accounting principles generally accepted in the United States of America.

/s/ Kostin, Ruffkess & Company, LLC
 

Farmington, Connecticut
March 15, 2004

 

FIRST HARTFORD CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Unaudited)

         Assets   January 31,     April 30,
      2004     2003
             
Real Estate and equipment:            
             
     Developed properties   $ 11,520,582   $ 7,920,657
             
     Equipment and leasehold improvements  
117,781
    
113,719
    11,638,363     8,034,376
             
     Less accumulated depreciation and          
          amortization
1,776,503
1,633,526
      9,861,860     6,400,850
     Properties under construction and          
          investment in undeveloped properties.  
1,209,775
    
72,672
    11,071,635     6,473,522
             
Cash     3,520,251     29,051
             
Accounts receivable, less allowance          
     for doubtful accounts of $70,600            
      758,199     1,187,296
             
Deposits, escrows, and prepaid and          
     deferred expenses     1,604,663     1,340,464
             
Investment in affiliates     125,976     1,132,908
             
Due from related parties and affiliates   230,334     192,505
             
Deferred Tax Assets     900,000     1,700,000
             
Discontinued Assets    
-0-
    
12,132,599
             
    $
18,211,058
   $
24,188,345

2

 

 

 

PART I - FINANCIAL INFORMATION
FIRST HARTFORD CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Unaudited)
           
    January 31,   April 30,
    2004     2003
           
Liabilities:          
           
   Mortgages, notes payable;          
      Construction Loans $ 4,621,418     474,627
           
         Mortgages payable $ 9,482,662     9,191,466
           
      Notes Payable:          
            Other  
1,780,083
    
2,368,789
    15,884,163     12,034,882
           
   Accounts payable   1,765,585     2,097,292
   Accrued Liabilities   685,492     494,512
   Other Liabilities   946,728     772,984
   Deferred Income   215,724     265,467
   Due to Related Parties and affiliated        
            partnerships   118,965     248,359
           
Mortgage payable - discontinued  
-0-
    
14,158,489
    19,616,657     30,071,985
           
Shareholders' equity (deficiency):          
           
   Common stock, $1 par; authorized          
         6,000,000 shares; issued 3,322,213          
         shares   3,322,213     3,322,213
   Capital in excess of par   4,857,645     4,857,645
   Deficit   ( 7,517,333)     (11,995,374)
    662,525     (3,815,516)
           
  Less 232,228 shares of common stock          
        held in treasury, at cost   2,068,124     2,068,124
    ( 1,405,599)     ( 5,883,640)
  $
18,211,058
   $
24,188,345

3

 

FIRST HARTFORD CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME (LOSS)
(Unaudited)
     

Nine Months Ended

   Three Months Ended
      January 31, 2004   January 31, 2003   January 31, 2004   January 31, 2003
         

(Restated)

       (Restated)
Revenues, Including Related                  
   Party Respectively:                  
         Sale of Real Estate     $           73,096 $              - 0 - $               - 0 -   $                    -0-
         Construction     114,375   135,083   9,428   40,483
         Rental     1,190,778   957,349   448,799   329,669
         Management fees     62,034   252,909   62,034   19,375
         Other     245,253   477,719   177,256   405,147
         Non-Recurring     200,367   183,456   - 0 -   - 0 -
         Equity In Earnings of                  
            Joint Ventures    
233,280
  
- 0 -
  
68,280
  
- 0 -
      2,119,183 2,006,516   765,797   794,674
Costs and Expenses:                  
                   
      Cost of Sales Real Estate     15,771   - 0 -   - 0 -   - 0 -
      Construction     28,492   78,733   7,116   11,096
      Operating, selling, general                  
         and administrative     2,143,932 1,556,662   925,819   572,262
      Interest     580,208   598,931   201,494   200,348
      Depreciation and amortization     253,289   171,155   137,513   57,593
      Real estate taxes     123,946  
117,230
  
51,040
  
38,150
      3,145,638   2,522,711   1,322,982   879,449
Net Operating (Loss)                  
Before Discontinued                  
Items and Income Taxes     $(1,026,455)   $(516,195)   $(557,185)   (84,775)
                   
Discontinued Items                  
         Sale of Shopping Center  

19,433,415

   - 0 - 19,433,415   - 0 -
         Cost of Shopping Center  

12,747,518

   - 0 - 12,747,518   - 0 -
         Federal & State Tax    
525,000
  
- 0 -
  
525,000
  
- 0 -
         Gain on Sales (net of tax)     6,160,897   - 0 - 6,160,897   - 0 -
         Operating Gain on Shopping                  
         Center     207,453   151,389   37,535   67,966
         Net Gain     6,368,350   151,389   6,198,432   67,966
Net Income (Loss) Before     5,341,895   (364,806)   5,641,247   (16,809)
Income Tax                  

4

 

FIRST HARTFORD CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME (LOSS)
(Unaudited)
CONTINUED

    Nine Months Ended  

Three Months Ended
   

January 31, 2004

  

January 31, 2003

  

January 31, 2004

  

January 31, 2003
       

(Restated)

      

(Restated)
State Income Tax   63,854   - 0 -   59,153   - 0 -
Deferred Federal Income Tax

800,000

   - 0 -   800,000   - 0 -
Total Taxes On Income

863,854

   - 0 -   859,153   - 0 -
                 
Net Income (Loss)  

4,478,041

  
(364,806)
  
4,782,094
  
(16,809)
                 
Base Earning Per Share

$

 1.45   ($0.12)   1.55   (.01)
                 
Weighted Average Number                
Of Shares Outstanding

3,089,985

 3,089,985   3,089,985   3,089,985

 

5

 

FIRST HARTFORD CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF CASH FLOWS
                         
Cash flows from operating    

9 months ended

    

3 months ended
   activities:   01/31/2004   01/31/2003     01/31/2004   01/31/2003
                         
                         
   Net Profit (Loss)   $ 4,478,041   $ (364,806)   $ 4,782,094   $  ( 16,809)
                         
Adjustments to reconcile net loss                      
   to net cash used in operating                        
   activities:                        
                         
      Depreciation     356,733     349,211     120,332     116,707
      Amortization     116,161     33,331     91,967     12,321
      Deferred Tax Asset     800,000     -0-     800,000     -0-
      Gain on Sale of Property     6,685,897     -0-   6,685,897     -0-
                         
Changes in assets and liabilities:                      
         Increase (Decrease) in:                        
                         
            Accounts and Notes                        
            Receivable (Net)     429,097     201,196     404,416     22,478
            Deposits, escrows, prepaid and                    
            deferred expenses     (628,611)     508,985     (229,958)     166,692
                         
         (Increase) Decrease) in:                        
                         
            Accrued liabilities     190,980   (164,043)     319,950   (664,832)
            Other Liabilities     124,001     441,419     87,937     399,515
            Accounts payable     (331,707)                 (315,307)    
(782,486)
    
229,443
                         
Net cash provided by (used in)                        
operating activities:
12,220,592
 689,986            12,280,149
265,515
                         
Cash Flow from investing activities:                    
                         
         Proceeds from Investments   1,006,932     2,908     182,531     2,908
         Purchase of equipment     (9,004)     (13,101)     ( 4,982)     2,906
         Write Off Predevelopment Cost   98,251     -0-     98,251     -0-
         Proceeds from Sale                        
         of Property   5,530,060     -0-   5,530,060     -0-
                      &