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SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
FORM 10-Q
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 2003
Commission File #0-9305
REEVES TELECOM LIMITED PARTNERSHIP
(name changed from Reeves Telecom Associates)
---------------------------------------------------
(Exact name of registrant as specified in its charter)
South Carolina 57-0700063
- ------------------------ -----------------------------
(State of Incorporation) (I.R.S. Employer I.D. Number)
c/o Grace Property Management Inc.
55 Brookville Road
Glen Head, New York 11545
- --------------------------------------------------------------------------------
(Address of General Partner) (Zip Code)
(516) 686-2201
-------------------------------------------------
(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 ( )
Indicate by check mark whether the registrant is an accelerated filer (as
defined in Rule 12b-2 of the Exchange Act).
Yes ( ) No (X)
On May 9, 2003, the registrant had outstanding 1,812,062 Partnership units.
PART 1. FINANCIAL INFORMATION
REEVES TELECOM LIMITED PARTNERSHIP
BALANCE SHEETS
March 31, December 31,
2003 2002
(UNAUDITED) (AUDITED)
----------- ------------
Assets
------
Cash and cash equivalents $ 190,410 $ 301,924
Prepaid and other current assets 19,005 18,737
Properties held for sale and property
and equipment:
Properties held for sale 352,952 354,009
Sales property and equipment, net 142,234 124,889
Country club property and
equipment, net 442,587 442,587
---------- ----------
Total properties held for sale and
property and equipment, net 937,773 921,485
---------- ----------
Total Assets $1,147,188 $1,242,146
========== ==========
Liabilities and Partners' Capital
- ---------------------------------
Accounts payable and accrued expenses $ 29,092 $ 83,895
Accrued expenses, affiliates 30,448 54,762
Deposits on contract, net 300,169 280,245
Long-term debt 107,038 108,282
---------- ----------
Total Liabilities 466,747 527,184
Partners' capital 680,441 714,962
---------- ----------
Total Liabilities and
Partners' Capital $1,147,188 $1,242,146
========== ==========
The accompanying notes are an integral part of these financial statements.
REEVES TELECOM LIMITED PARTNERSHIP
STATEMENTS OF OPERATIONS AND PARTNERS' CAPITAL
FOR THE THREE MONTHS ENDED MARCH 31, 2003 AND 2002
(Unaudited)
2003 2002
----------- -----------
Operating revenues:
Property sales $ 30,545 $ 195,259
Interest income and finance charges 2,946 1,363
----------- -----------
33,491 196,622
----------- -----------
Operating costs and expenses:
Direct costs of property sold 1,410 4,640
Selling, general and administrative
expenses 61,969 65,744
Depreciation 2,301 623
Interest 2,332 2,433
----------- -----------
68,012 73,440
----------- -----------
Net income (loss) (34,521) 123,182
Partners' capital at beginning of period 714,962 722,601
----------- -----------
Partners' capital at end of period $ 680,441 $ 845,783
=========== ===========
Income (loss)per partnership unit $ (0.02) $ 0.07
=========== ===========
Weighted average partnership units
issued and outstanding 1,812,062 1,812,062
----------- -----------
The accompanying notes are an integral part of these financial statements.
REEVES TELECOM LIMITED PARTNERSHIP
STATEMENTS OF CASH FLOWS
FOR THE THREE MONTHS ENDED MARCH 31, 2003 AND 2002
(Unaudited)
2003 2002
--------- ---------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss) $ (34,521) $ 123,182
Adjustments to reconcile net income (loss)
to net cash provided by (used in)
operating activities:
Depreciation 2,301 623
Change in assets and liabilities:
Prepaid and other assets (268) (2,479)
Property held for sale, net 1,057 4,641
Accounts payable and accrued
expenses (54,803) (70,155)
--------- ---------
Net cash provided by (used in)
operating activities (86,234) 55,812
--------- ---------
CASH FLOWS FROM INVESTING ACTIVITIES:
Increase in sales property and
equipment, net (19,646) (1,918)
Deposit on contract 19,924 19,924
--------- ---------
Net cash provided by investing activities 278 18,006
--------- ---------
CASH FLOWS FROM FINANCING ACTIVITIES:
Repayment of long-term debt (1,244) (1,144)
Decrease in accrued expenses, affiliates (24,314) --
--------- ---------
Net cash used in financing activities (25,558) (1,144)
--------- ---------
NET INCREASE (DECREASE) IN CASH (111,514) 72,674
CASH BALANCE - BEGINNING 301,924 296,993
--------- ---------
CASH BALANCE - ENDING $ 190,410 $ 369,667
========= =========
The accompanying notes are an integral part of these financial statements.
REEVES TELECOM LIMITED PARTNERSHIP
MARCH 31,2003
(Unaudited)
NOTE 1. Basis of Presentation
The accompanying unaudited consolidated financial statements have
been prepared in accordance with generally accepted accounting
principles for interim financial information and Rule 10-01 of
Regulation S-X. Accordingly, they do not include all of the
information and notes required by generally accepted accounting
principles for complete financial statements. In the opinion of
management, all adjustments (consisting of only normal recurring
accruals) considered necessary for a fair presentation have been
included. Operating results for the three month period ended
March 31, 2003 are not necessarily indicative of the results that
may be expected for the year ending December 31, 2003. For
further information, refer to the consolidated financial
statements and notes thereto included in the Partnership's Annual
Report on Form 10-K for the year ended December 31, 2002 as filed
with the Securities and Exchange Commission on March 31, 2003.
NOTE 2. Liquidity and Going Concern Issues.
Cash generated from individual lot sales may not be sufficient to
meet future operating costs, debt service and other cash
requirements. If the Partnership's cash flow is less than
management's expectations, capital programs presently planned may
be either postponed, scaled back, or eliminated, and certain
operating expenditures may be either deferred or, in the case of
payments to the General Partner and its affiliates, accrued.
Despite such contingency plans by management, the above mentioned
factors indicate that the Partnership may be unable to continue
in existence while attempting to complete the sale and
liquidation of the Partnership's remaining assets. The
Partnership intends to continue to sell lots in the normal course
of business as a plan of liquidation and, while no assurances can
be given, the Partnership believes the carrying value of the
remaining lots is less than their net realizable value. Should
the Partnership change its plans from the current longer term
liquidation approach to a bulk sale and/or abandonment, the net
amount realized could be less than the carrying value which could
result in liabilities exceeding the Partnership's assets. The
financial statements have been prepared assuming the Partnership
will continue as a going concern.
NOTE 3. Sale of Fox Squirrel Country Club/The Lakes Country Club and
Disposal of Business Segment
During the first quarter of 2001, the Partnership completed the
sale of the assets of Fox Squirrel Country Club, now known as The
Lakes Country Club ("Fox Squirrel/The Lakes") for consideration
totaling $862,500, comprised of $150,000 in cash and a note
receivable. The note receivable had an initial principal amount
of $712,500, bears interest at an annual rate of 9.5%, and
matures
REEVES TELECOM LIMITED PARTNERSHIP
MARCH 31,2003
(Unaudited)
on March 9, 2004. The borrower is obligated to make payments of
principal and interest as follows: (i) monthly payments of $6,641
from April 9, 2001 up to and including February 9, 2004, and (ii)
a final payment of $677,642 on March 9, 2004. The note receivable
is collateralized by all of the assets sold to the buyer. Since
the cash down payment represents less than 25% of the total
consideration paid for the assets, the transaction is recorded on
the Partnership's financial statements using the deposit method
as defined in Statement of Financial Accounting Standard No. 66,
"Accounting for Sales of Real Estate". The deposit method
requires, among other things, that until the total cash received
by the Partnership from the down payment and subsequent principal
payments on the note receivable is at least 25% of the total
consideration paid: (a) the sold assets remain on the
Partnership's balance sheet as assets held for sale or disposal,
(b) cash received from the buyer at closing be shown as a deposit
on contract, and (c) payments received from the buyer in respect
of the note receivable subsequent to closing be treated as an
increase in the deposit. At March 31, 2003, the assets held by
the Partnership covered by the agreement were held at a net book
value of approximately $442,587. The operations of Fox
Squirrel/The Lakes prior to the sale are recorded as discontinued
operations.
REEVES TELECOM LIMITED PARTNERSHIP
MARCH 31,2003
(Unaudited)
ITEM 2. Management Discussion and Analysis of Financial Condition and
Results of Operations.
Certain matters discussed herein are forward-looking statements
about the business, financial condition and prospects of the
Partnership. The actual results could differ materially from
those indicated by such forward-looking statements because of
various risks and uncertainties. Such risks and uncertainties may
include, but are not limited to, regional and national economic
conditions, changes in consumer demand for real estate, changes
in interest rates and the availability of credit to the
Partnership and/or potential purchasers of real estate, and
changes in state and federal regulations relating to
environmental and health matters. The Partnership cannot control
these risks and uncertainties and, in many cases, cannot predict
the risks and uncertainties that could cause its actual results
to differ materially from those indicated by the forward-looking
statements. The Partnership undertakes no obligation to publicly
update or revise any forward- looking statement, whether as a
result of new information, future events or otherwise.
On March 9, 2001, the Partnership completed the sale of the
assets of Fox Squirrel/The Lakes for consideration totaling
$862,500, comprised of $150,000 in cash and a note receivable.
The note receivable had an initial principal amount of $712,500,
bears interest at an annual rate of 9.5%, and matures on March 9,
2004. The borrower is obligated to make payments of principal and
interest as follows: (i) monthly payments of $6,641 from April 9,
2001 up to and including February 9, 2004, and (ii) a final
payment of $677,642 on March 9, 2004. The note receivable is
collateralized by all of the assets sold to the buyer. The
operations of Fox Squirrel/The Lakes prior to the sale are
recorded as discontinued operations. The borrower may extend the
maturity of the note receivable if the Partnership has not
completed remediation of certain environmental contamination from
an underground storage tank formerly located on the golf club
grounds. If the maturity of the note receivable is extended, the
borrower will continue making monthly payments of $6,641 until
the extended maturity date, at which time the remaining unpaid
principal balance will be due and payable.
The Partnership completed work involving the remediation of
certain environmental contamination on the grounds of Fox
Squirrel/The Lakes in 2000. Initial tests of groundwater and soil
samples submitted to the North Carolina Department of Environment
and Natural Resources ("NCDENR") showed levels of groundwater
contamination just above the standards, and the Partnership was
directed to conduct additional groundwater monitoring and
sampling. Tests of groundwater samples submitted to NCDENR in
November 2001 and from time to time thereafter showed levels of
contamination below standards. Nevertheless, NCDENR has directed
the Partnership to conduct additional groundwater monitoring and
sampling. Although Management believes that subsequent tests of
groundwater
REEVES TELECOM LIMITED PARTNERSHIP
MARCH 31,2003
(Unaudited)
samples will also show levels of contamination below standards,
there is no assurance that NCDENR will not direct the Partnership
to continue monitoring and sampling of groundwater.
Results of Operations
---------------------
REVENUE
Revenue from property sales, and the number and type of property
sold for the first three months of 2003 and 2002 are set forth in
the table below.
Three Months Ended
March 31,
------------------------
2003 2002
-------- --------
PROPERTY SOLD
Boiling Spring Lakes, NC:
Individual undeveloped lots 2 4
Commercial land (acres) 0 6.30
Other land (acres) 0 20.00
Pimlico Plantation, SC:
Individual undeveloped lots 1 0
REVENUE
Boiling Spring Lakes, NC:
Individual undeveloped lots $ 6,000 $ 35,075
Commercial land 0 65,410
Other land 0 94,774
Pimlico Plantation, SC
Individual undeveloped lots 24,545 0
-------- --------
Total Revenue $ 30,545 $195,259
======== ========
Note: During the first quarter of 2002 the
Partnership sold two parcels of undeveloped
residential land in Boiling Spring Lakes, totaling
20.00 acres, for an aggregate of $94,774. In
management's discussion and analysis in the
Partnership's report on Form 10-Q for the quarterly
period ended March 31, 2002, such land was included
with individual undeveloped lots. In conformance to
the table above, such land is listed separately.
Boiling Spring Lakes, NC
Generally, the real estate market in Boiling Spring Lakes, NC,
which was sluggish for most of 2002, remained so during the first
three months of 2003. Despite low interest rates, demand for
REEVES TELECOM LIMITED PARTNERSHIP
MARCH 31,2003
(Unaudited)
buildable residential lots remained low compared to 2001 and
prior years.
Individual Undeveloped Lots - Management attributes the decrease
in revenue to a decrease in the number of lots sold, which, in
turn, reflects a somewhat slower real estate market in Brunswick
County, North Carolina during the first three months of 2003 than
in the same period of 2002. The average sales price per lot sold
was lower for the first three months of 2003 than for the same
period in 2002, which is due principally to the relative mix of
lots sold. Lots adjoining or close to the golf course for
example, generally sell for more than lots that are not close to
the golf course, and lots which are suitable for the installation
of individual on-site septic systems generally sell for more than
lots which are not suitable for on-site septic systems.
Commercial Land - Management attributes the decline in revenue to
the fact that no acreage was sold during the first three months
of 2003, whereas some 6 acres were sold in the same period of
2002. The Partnership experiences great volatility in sales from
year to year as to revenue and acreage, and often the Partnership
records no sales in a fiscal year. The price per acre that the
Partnership realizes depends upon numerous factors, including,
among others, the size of the tract and its location.
Other Land - Management attributes the decline in revenue to the
fact that no acreage was sold during the first three months of
2003, whereas 20 acres were sold in the same period of 2002. The
Partnership experiences great volatility in sales from year to
year as to revenue and acreage, and often the Partnership records
no sales in a fiscal year. The price per acre that the
Partnership realizes depends upon numerous factors, including,
among others, the size of the tract, its location, and the extent
to which portions of the tract are suitable for the installation
of individual on-site septic systems.
Pimlico Plantation, SC
Management attributes the increase in revenue to the fact that
one lot was sold during the first three months of 2003, whereas
no lots were sold in the same period of 2002. After such sale,
the Partnership no longer owns any land in Pimlico Plantation,
SC.
DIRECT COSTS OF PROPERTY SOLD
Direct costs of property sold for the first three months of 2003
and 2002 were $1,410 and $4,640, respectively. Management
attributes the decrease in costs principally to the lower number
of individual undeveloped lots sold, the lower number of acres of
commercial land sold, and the lower number of acres of other land
sold during the first quarter of 2003 than during the same period
of 2002.
REEVES TELECOM LIMITED PARTNERSHIP
MARCH 31,2003
(Unaudited)
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES
Selling, general and administrative expenses were $61,969 for the
first three months of 2003, compared to $65,744 for the same
period of 2002. Management attributes the 6% decrease principally
to lower salaries and wages, lower telephone and utilities costs,
and lower costs associated with the Partnership's transfer agent
and K-1 processor, (although, with respect to salaries and wages,
and costs associated with the transfer agent and K-1 processor,
Management expects that the total for all twelve months of 2003
will approximate the total for all twelve months of 2002). The
lower costs described above were partially offset by higher
property taxes, which are due to higher assessed values following
a reassessment for all of Brunswick County, NC.
The sale of Fox Squirrel/The Lakes was completed on March 9,
2001. As a result, the operations of Fox Squirrel are recorded as
discontinued operations. Accordingly, there are no financial
results of operations at Fox Squirrel/The Lakes for the first
quarter of 2003 or 2002.
Inflation has had only a minor impact on the Partnership's
operations during the first three months of 2003 and 2002.
Capital Resources and Liquidity
-------------------------------
Operating activities used $86,234 of net cash during the first
three months of 2003, compared to $55,812 of net cash provided by
operating activities during the same period of 2002. The change
is primarily attributable to the net loss incurred during the
first quarter of 2003, whereas in the first quarter of 2002 the
Partnership earned net income of $123,182.
Investing activities provided net cash of $278 during the first
three months of 2003, compared to $18,006 provided during the
same period of 2002. The decrease is due principally to the
expenditure during the first three months of 2003 of $20,000 on
dam repairs, whereas no significant capital expenditures were
made during the same period of 2002. The Partnership continues to
receive principal and interest payments on the note receivable
from the borrower in connection with the sale of Fox Squirrel/The
Lakes at a rate of $6,641 per month.
Financing activities used $25,558 of net cash during the first
three months of 2003, compared to $1,144 of net cash used during
the same period of 2002. Payment of accrued expenses to
affiliates and principal payments on long-term debt continue to
represent most of the cash uses.
The Partnership recently renegotiated the terms of its loan from
a local financial institution to provide for a lower interest
rate.
REEVES TELECOM LIMITED PARTNERSHIP
MARCH 31,2003
(Unaudited)
Effective April 2, 2003, the note has a balance outstanding of
$107,038, bears interest at a fixed rate of 5.65%, and provides
for equal monthly payments of $1,020 through March 2006. The note
matures on April 2, 2006, at which time the remaining principal
balance will be due. The Partnership has no other long-term debt.
The scheduled principal payments under the foregoing note are as
follows:
Rest of 2003 $ 4,199
2004 6,603
2005 6,986
2006 89,250
--------
$107,038
========
Off Balance Sheet Arrangements
------------------------------
The Partnership does not utilize off balance sheet arrangements,
and there were none during the first three months of 2003 or
2002.
ITEM 3. Quantitative and Qualitative Disclosures About Market Risk
The Partnership's principal market risk exposure is to changes in
interest rates, which are highly sensitive to many factors,
including governmental monetary and tax policies, domestic and
international economic and political considerations, and other
factors beyond the control of the Partnership. Changes in the
general level of interest rates can affect the Partnership's
revenue from property sales, since the market for real estate in
general varies to a large degree upon the level and stability of
interest rates. Generally, when interest rates are high or are
increasing, the market for real estate declines, and when
interest rates are low or are stable, the market for real estate
increases. The Partnership does not enter into derivative
contracts for its own account to hedge against the risk of
changes in interest rates.
At March 31, 2003, the Partnership had cash of $190,410,
substantially all of which is deposited in interest-bearing
accounts at a local financial institution, and owed $107,038 to
that same institution in the form of long-term debt secured by a
mortgage on an improved residential lot purchased in 1999. The
interest rate earned on the cash balance is variable. The
interest rate on the outstanding principal amount of the loan was
fixed at 8.65%; however, after the end of the first quarter, the
Partnership renegotiated the terms of the loan to provide for a
fixed interest rate of 5.65%. Had the average level of interest
rates during the first quarter of 2003 been higher or lower by
100 basis points or one percent (1%), the Partnership would have
earned approximately $500 more or less, respectively, on its cash
balances. Since the
REEVES TELECOM LIMITED PARTNERSHIP
MARCH 31,2003
(Unaudited)
interest rate on the Partnership's outstanding debt is fixed,
there would have been no change in interest expense.
ITEM 4. Controls and Procedures
Within the 90-day period prior to the filing date of this
quarterly report on Form 10-Q, the General Partner, under the
direction of John S. Grace and Davis P. Stowell, President and
Vice President, respectively, of the General Partner (since the
Partnership has no executive officers, Messrs. Grace and Stowell
carry out the responsibilities of the chief executive officer and
chief financial officer, respectively, of the Partnership),
carried out an evaluation of the effectiveness of the design and
operation of the Partnership's disclosure controls and procedures
as defined in Exchange Act Rules 13a-14(c) and 15(d)-14c. Based
upon that evaluation, Messrs. Grace and Stowell concluded that
the Partnership's disclosure controls and procedures are
effective. There have been no significant changes in the
Partnership's internal controls or in other factors that could
significantly affect internal controls subsequent to the date
that evaluation was carried out. The General Partner intends to
periodically evaluate the Partnership's disclosure controls and
procedures as required by the Exchange Act Rules.
REEVES TELECOM LIMITED PARTNERSHIP
MARCH 31,2003
(Unaudited)
PART II - OTHER INFORMATION
ITEM 6. Exhibits and Reports on Form 8-K
No reports were filed on Form 8-K for the quarter ended March 31,
2003.
REEVES TELECOM LIMITED PARTNERSHIP
MARCH 31, 2003
(Unaudited)
SIGNATURE
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, thereto duly authorized.
REEVES TELECOM LIMITED PARTNERSHIP
By: Grace Property Management Inc.
General Partner
By: /s/ JOHN S. GRACE
------------------------------
John S. Grace
President
Dated: May 14, 2003
REEVES TELECOM LIMITED PARTNERSHIP
MARCH 31,2003
(Unaudited)
CERTIFICATION
I, John S. Grace, President of Grace Property Management, Inc., the
general partner of Reeves Telecom Limited Partnership (the "Partnership"),
acting in the capacity and carrying out the responsibilities of the chief
executive officer of the Partnership, certify that:
1. I have reviewed this quarterly report on Form 10-Q of the Partnership;
2. Based on my knowledge, this quarterly report does not contain any
untrue statement of material fact or omit to state a material fact
necessary to make the statements made, in light of the circumstances
under which such statements were made, not misleading with respect to
the period covered by this quarterly report;
3. Based on my knowledge, the financial statements, and other financial
information included in this quarterly report, fairly present in all
material respects the financial condition, results of operations and
cash flows of the registrant as of, and for, the periods presented in
this quarterly report;
4. The registrant's other certifying officers and I are responsible for
establishing and maintaining disclosure controls and procedures (as
defined in Exchange Act Rules 13a-14 and 15d-14) for the registrant and
we have:
a. designed such disclosure controls and procedures to ensure that
material information relating to the registrant, including its
consolidated subsidiaries, is made known to us by others within
those entities, particularly during the period in which this
quarterly report is being prepared;
b. evaluated the effectiveness of the registrant's disclosure
controls and procedures as of a date within 90 days prior to the
filing date of this quarterly report (the "Evaluation Date"); and
c. presented in this quarterly report our conclusions about the
effectiveness of the disclosure controls and procedures based on
our evaluation as of the Evaluation Date;
5. The registrant's other certifying officers and I have disclosed, based
on our most recent evaluation, to the registrant's auditors and the
audit committee of registrant's board of directors (or persons
performing the equivalent function):
a. all significant deficiencies in the design or operation of
internal controls which could adversely affect the registrant's
ability to record, process, summarize and report financial data
and have identified for the registrant's auditors any material
weaknesses in internal controls; and
REEVES TELECOM LIMITED PARTNERSHIP
MARCH 31,2003
(Unaudited)
CERTIFICATION
b. any fraud, whether or not material, that involves management or
other employees who have a significant role in the registrant's
internal controls; and
6. The registrant's other certifying officers and I have indicated in this
quarterly report whether or not there were significant changes to
internal controls or in other factors that could significantly affect
internal controls subsequent to the date of our most recent evaluation,
including any corrective actions with regard to significant
deficiencies and material weaknesses.
Date: May 14, 2003 By: /s/ JOHN S. GRACE
-----------------------------
John S. Grace
President, acting in the
capacity and carrying out
the responsibilities of the
chief executive officer of
Reeves Telecom Limited
Partnership
REEVES TELECOM LIMITED PARTNERSHIP
MARCH 31,2003
(Unaudited)
CERTIFICATION
I, Davis P. Stowell, Vice President of Grace Property Management, Inc.,
the general partner of Reeves Telecom Limited Partnership (the
"Partnership"), acting in the capacity and carrying out the responsibilities
of the chief financial officer of the Partnership, certify that:
1. I have reviewed this quarterly report on Form 10-Q of the Partnership;
2. Based on my knowledge, this quarterly report does not contain any
untrue statement of material fact or omit to state a material fact
necessary to make the statements made, in light of the circumstances
under which such statements were made, not misleading with respect to
the period covered by this quarterly report;
3. Based on my knowledge, the financial statements, and other financial
information included in this quarterly report, fairly present in all
material respects the financial condition, results of operations and
cash flows of the registrant as of, and for, the periods presented in
this quarterly report;
4. The registrant's other certifying officers and I are responsible for
establishing and maintaining disclosure controls and procedures (as
defined in Exchange Act Rules 13a-14 and 15d-14) for the registrant and
we have:
a. designed such disclosure controls and procedures to ensure that
material information relating to the registrant, including its
consolidated subsidiaries, is made known to us by others within
those entities, particularly during the period in which this
quarterly report is being prepared;
b. evaluated the effectiveness of the registrant's disclosure
controls and procedures as of a date within 90 days prior to the
filing date of this quarterly report (the "Evaluation Date"); and
c. presented in this quarterly report our conclusions about the
effectiveness of the disclosure controls and procedures based on
our evaluation as of the Evaluation Date;
5. The registrant's other certifying officers and I have disclosed, based
on our most recent evaluation, to the registrant's auditors and the
audit committee of registrant's board of directors (or persons
performing the equivalent function):
a. all significant deficiencies in the design or operation of
internal controls which could adversely affect the registrant's
ability to record, process, summarize and report financial data
and have identified for the registrant's auditors any material
weaknesses in internal controls; and
REEVES TELECOM LIMITED PARTNERSHIP
MARCH 31,2003
(Unaudited)
CERTIFICATION
b. any fraud, whether or not material, that involves management or
other employees who have a significant role in the registrant's
internal controls; and
6. The registrant's other certifying officers and I have indicated in this
quarterly report whether or not there were significant changes to
internal controls or in other factors that could significantly affect
internal controls subsequent to the date of our most recent evaluation,
including any corrective actions with regard to significant
deficiencies and material weaknesses.
Date: May 14, 2003 By: /s/ DAVIS P. STOWELL
-----------------------------
Davis P. Stowell
Vice President, acting in the
capacity and carrying out
the responsibilities of the
chief financial officer of
Reeves Telecom Limited
Partnership