PGI INC - Quarter Report: 2011 September (Form 10-Q)

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		Form 10 - Q Page No.
PART I	FINANCIAL INFORMATION
Item 1.	Financial Statements Condensed Consolidated Statements of Financial Position     September 30, 2011 (Unaudited) and December 31, 2010	3
	Condensed Consolidated Statements of Operations (Unaudited)     Three and Nine Months Ended September 30, 2011 and 2010	4
	Condensed Consolidated Statements of Cash Flows (Unaudited)     Nine Months Ended September 30, 2011 and 2010	5
	Notes to Condensed Consolidated Financial Statements (Unaudited)	6
Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	11
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	14
Item 4.	Controls and Procedures	14
PART II	OTHER INFORMATION
Item 1.	Legal Proceedings	15
Item 1A.	Risk Factors	15
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	15
Item 3.	Defaults Upon Senior Securities	15
Item 4.	[Removed and Reserved]	15
Item 5.	Other Information	15
Item 6.	Exhibits	15
SIGNATURE		16
EXHIBIT INDEX		17

 

 

 

 

PART I		FINANCIAL INFORMATION
	Item 1.	Financial Statements

 

 

		September 30,				December 31,
		2011				2010
		(Unaudited)
ASSETS
Cash		$	1			$	1
Restricted cash			5				5
Receivables			639				705
Land and improvement inventories			639				639
Other assets			197				189
		$	1,481			$	1,539
LIABILITIES
Accounts payable and accrued expenses		$	116			$	121
Accrued real estate taxes			6				9
Accrued interest:
Primary lender			272				240
Debentures			48,048				44,121
Other			2,819				2,773
Credit agreements –
Primary lender			500				500
Notes payable			1,198				1,198
Subordinated convertible debentures payable			9,059				9,059
Convertible debentures payable			1,500				1,500
			63,518				59,521
STOCKHOLDERS’ DEFICIENCY
Preferred stock, par value $1.00 per share;
authorized 5,000,000 shares; 2,000,000
Class A cumulative convertible shares issued
and outstanding; (liquidation preference of
$8,000,000 and cumulative dividends)			2,000				2,000
Common stock, par value $.10 per share;
authorized  25,000,000 shares; 5,317,758
shares issued and outstanding			532				532
Paid-in capital			13,498				13,498
Accumulated deficit			(78,067	)			(74,012	)
			(62,037	)			(57,982	)
		$	1,481			$	1,539

 

 

 

		Three Months Ended								Nine Months Ended
		September 30,				September 30,				September 30,				September 30,
		2011				2010				2011				2010
REVENUES
Real estate sales		$	-			$	-			$	16			$	-
Interest income			10				11				31				34
Other income			-				-				-				1
			10				11				47				35
COSTS AND EXPENSES
Cost of real estate sales			-				-				1				-
Interest			1,372				1,229				4,005				3,590
Taxes and assessments			2				2				7				8
Consulting and accounting			10				10				30				30
Legal and professional			6				5				11				11
General and administrative			17				14				48				44
			1,407				1,260				4,102				3,683
NET LOSS		$	(1,397	)		$	(1,249	)		$	(4,055	)		$	(3,648	)
NET LOSS PER SHARE (*)
AVAILABLE TO COMMON
STOCKHOLDERS-Basic and diluted		$	(.29	)		$	(.26	)		$	(.85	)		$	(.78	)

 

 

* Considers the effect of cumulative preferred dividends in arrears for the three and nine months ended September 30, 2011 and 2010.

 

 

 

 

 

			Nine Months Ended
			September 30,				September 30,
			2011				2010
Net cash used in operating activities		$	(66	)		$	(51	)
Cash flows from investing activities:
Proceeds from notes receivable			66				52
Net cash provided by investing activities			66				52
Net change in cash			-				1
Cash at beginning of period			1				1
Cash at end of period		$	1			$	2

 

 

 

(1)	Basis of Presentation

 

 

 

 

 

 

(2)	Per Share Data

 

 

 

 

 

 

		Three Months Ended								Nine Months Ended
		September 30,  2011				September 30, 2010				September 30, 2011				September 30, 2010
Net Loss		$	(1,397,000	)		$	(1,249,000	)		$	(4,055,000	)		$	(3,648,000	)
Preferred Dividends			(160,000	)			(160,000	)			(480,000	)			(480,000	)
Loss Available to Common Shareholders		$	(1,557,000	)		$	(1,409,000	)		$	(4,535,000	)		$	(4,128,000	)
Weighted Average Number Of Common Shares Outstanding			5,317,758				5,317,758				5,317,758				5,317,758
Basic and Diluted Loss Per Share		$	(.29	)		$	(.26	)		$	(.85	)		$	(.78	)

 

 

 

 

 

 

(5)	Receivables

		September 30,				December 31,
		2011				2010
		($ in thousands)
Notes receivable – related party		$	638			$	704
Interest receivable – related party			1				1
		$	639			$	705

 

(6)	Land and Improvements

		September 30				December 31,
		2011				2010
		($ in thousands)
Unimproved land		$	625			$	625
Fully improved land			14				14
		$	639			$	639

 

 

(7)	Other Assets

Other assets consisted of:

 

 

(8)	Accounts Payable and Accrued Expenses

Accounts payable and accrued expenses consisted of:

 

 

(9)	Primary Lender Credit Agreements, Notes Payable, Subordinated and Convertible Debentures Payable

Credit agreements with the Company’s primary lender and notes payable consisted of the following:

 

		September 30,				December 31,
		2011				2010
		($ in thousands)
Credit agreements – primary lender:
balance is past due, bearing interest
at prime plus 5%		$	500			$	500
Notes payable - $1,176,000
bearing interest at prime plus 2%,
the remainder non-interest bearing,
all past due			1,198				1,198
			1,698				1,698
Subordinated debentures payable:
At 6-1/2% interest; due June 1, 1991			1,034				1,034
At 6% interest; due May 1, 1992			8,025				8,025
			9,059				9,059
Collateralized convertible debentures payable:
At 14% interest; due July 8, 1997,
convertible into shares of common stock			1,500				1,500
at $1.72 per share		$	12,257			$	12,257

 

 

 

 

 

 

 

		September 30,				December 31,
		2011				2010
		($ in thousands)
Deferred tax asset:
Net operating loss carryforward		$	17,428			$	15,887
Adjustments to reduce land to net realizable value			12				12
Expenses capitalized under IRC 263(a)			56				56
Environmental liability			27				27
Valuation allowance			(17,351	)			(15,810	)
			172				172
Deferred tax liability:
Basis difference of land and improvement inventories			172				172
Net deferred tax asset		$	-			$	-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

		September 30, 2011
		Principal				Accrued
		Amount Due				Interest
		($ in thousands)
Subordinated convertible debentures:
At 6 ½%, due June 1, 1991		$	1,034			$	1,524
At 6%, due May 1, 1992			8,025				16,789
		$	9,059			$	18,313
Collateralized convertible debentures:
At 14%, due July 8, 1997		$	1,500			$	29,735
Notes Payable:
At prime plus 2%		$	1,176			$	2,819
Non-interest bearing			22				-
		$	1,198			$	2,819

 

 

 

 

Primary Lender:

$

500

$

272

 

 

 

 

 

 

 

 

 

 

 

Date: November 14, 2011	/s/ Laurence A. Schiffer
	Laurence A. Schiffer
	President
	(Duly Authorized Officer, Principal Executive Officer and Principal Financial Officer)

 

 

2.	Inapplicable.
3.(i)	Inapplicable.
3.(ii)	Inapplicable.
4.	Inapplicable.
10.	Inapplicable.
11.	Statement re:  Computation of Per Share Earnings (Set forth in Note 2 of the Notes to Condensed Consolidated Financial Statements (Unaudited) herein).
15	Inapplicable.
18.	Inapplicable.
19.	Inapplicable.
22.	Inapplicable.
23.	Inapplicable.
24.	Inapplicable.
31(i).1	Principal Executive Officer certification pursuant to Rule 13a-14(a) or 15d-14(a) under the Securities Exchange Act of 1934, as amended.
31(i).2	Principal Financial Officer certification pursuant to Rule 13a-14(a) or 15d-14(a) under the Securities Exchange Act of 1934, as amended.
32.1	Chief Executive Officer certification pursuant to 18 U.S.C. Section 1350.
32.2	Chief Financial Officer certification pursuant to 18 U.S.C. Section 1350.
99.	Inapplicable.
100.	Inapplicable.
101.	Instance Document, Schema Document, Calculation Linkbase Document, Labels Linkbase Document, Presentation Linkbase Document and Definition Linkbase Document.*
● Furnished with this report.

 

 

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