-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, TPutyCwDHjaF6wpwL81/14oq/B6ASyBv/C2YgFdnjsYpY0LZjvJYHvcw3ofwNurB 0o/vFBvARdxP8BenFhaBZQ== 0000012779-03-000006.txt : 20030317 0000012779-03-000006.hdr.sgml : 20030317 20030317114143 ACCESSION NUMBER: 0000012779-03-000006 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20030131 FILED AS OF DATE: 20030317 FILER: COMPANY DATA: COMPANY CONFORMED NAME: BLUE RIDGE REAL ESTATE CO CENTRAL INDEX KEY: 0000012779 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-MISCELLANEOUS AMUSEMENT & RECREATION [7990] IRS NUMBER: 240854342 STATE OF INCORPORATION: PA FISCAL YEAR END: 1031 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 000-02844 FILM NUMBER: 03605295 BUSINESS ADDRESS: STREET 1: PO BOX 707 CITY: BLAKESLEE STATE: PA ZIP: 18610 BUSINESS PHONE: 7174438433 MAIL ADDRESS: STREET 1: PO BOX 707 CITY: BLAKESLEE STATE: PA ZIP: 18610 10-Q 1 brbb10q1.txt BLUE RIDGE-BIG BOULDER CORP FIRST QUARTER 10Q 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 quarterly period ended January 31, 2003 ( ) TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from.......... to.......... Blue Ridge 0-28-44 Commission File No.: Big Boulder 0-28-43 BLUE RIDGE REAL ESTATE COMPANY BIG BOULDER CORPORATION State or other jurisdiction of incorporation or organization: Pennsylvania 24-0854342 (Blue Ridge) I.R.S. Employer Identification Number: 24-0822326 (Big Boulder) Address of principal executive office: Blakeslee, Pennsylvania Zip Code: 18610 Registrant's telephone number, including area code: (570)-443-8433 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 and Exchange Act of 1934 during the preceding 12 months (or for such 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 the number of shares outstanding of each of the issuer's classes of common stock, as of the close of the period of this report: Class Outstanding at January 31, 2003 Common Stock, without par value, 1,916,130 stated value $.30 per combined share* *Under a Security Combination Agreement between Blue Ridge Real Estate Company ("Blue Ridge") and Big Boulder Corporation ("Big Boulder") (referred to as the "Corporations") and under the by-laws of the Corporations, shares of the Corporations are combined in unit certificates, each certificate representing the same number of shares of each of the Corporations. Shares of each Corporation may be transferred only together with an equal number of shares of the other Corporation. For this reason, a combined Blue Ridge/Big Boulder Form 10-Q is being filed. Except as otherwise indicated, all information applies to both Corporations. INDEX Page No. PART I - FINANCIAL INFORMATION Item 1-Financial Statements Combined Condensed Balance Sheets January 31, 2003 and October 31, 2002 1 & 2 Combined Condensed Statements of Operations - Three Months ended January 31, 2003 and January 31, 2002 3 Combined Condensed Statements of Cash Flows - Three Months Ended January 31, 2003 and January 31, 2002 4 Notes to Financial Statements 5 & 6 Item 2-Management's Discussion and Analysis of Financial Condition and Results of Operations 6,7 & 8 Item 3-Quantitative and Qualitative Disclosures About Market Risk - Not applicable Item 4-Controls and Procedures 9 PART II - OTHER INFORMATION 9 Item 6-Exhibits and Reports on Form 8-K 9 Signatures 10 Chief Executive Officer Certification 11 Chief Financial Officer Certification 12 President Certification 13 Executive Vice President and Treasurer Certification 14 BLUE RIDGE REAL ESTATE COMPANY and SUBSIDIARIES BIG BOULDER CORPORATION AND SUBSIDIARIES COMBINED CONDENSED BALANCE SHEETS
(UNAUDITED) January 31, October 31, 2003 2002 ASSETS Current Assets Cash and cash equivalents $ 393,086 $ 261,311 (all funds are interest bearing) Accounts receivable 634,136 388,292 Inventories 272,581 247,460 Prepaid expenses, principally insurance and real estate taxes 948,729 918,210 Deferred operating costs 1,224,288 2,275,784 --------- --------- Total current assets 3,472,820 4,091,057 --------- --------- Cash held in escrow 726,651 107,909 ------- ------- Notes receivable noncurrent 244,300 0 ------- ------- Properties: Land, principally unimproved (19,580 and 1,861,951 1,867,352 19,714 acres respectively, per land ledger) Land improvements, buildings and equipment 58,047,684 56,190,649 ---------- ---------- 59,909,635 58,058,001 Less accumulated depreciation and amortization 38,129,057 37,611,139 ---------- ---------- 21,780,578 20,446,862 ---------- ---------- $26,224,349 $24,645,828 =========== ===========
See accompanying notes to unaudited financial statements. 1 LIABILITIES AND SHAREHOLDERS' EQUITY
January 31, October 31, 2003 2002 Current Liabilities: Notes payable - lines of credit $0 $600,000 Current installments of: long-term debt and capital lease obligations 5,416,497 5,266,548 Accounts and other payables 1,383,814 913,825 Accrued claims 231,824 208,642 Deferred income taxes 1,046,000 796,000 Accrued pension expense 932,493 890,493 Accrued liabilities 929,046 631,913 Deferred revenue 727,599 698,242 ------- ------- Total current liabilities 10,667,273 10,005,663 ---------- ---------- Long-term debt and capital lease obligations, less current installments 3,334,195 2,783,257 --------- --------- Deferred income taxes 1,110,000 1,110,000 --------- --------- Other non-current liabilities 24,468 28,756 ------ ------ Deferred income non-current 515,631 515,631 ------- ------- Commitments and Contingencies Combined shareholders' equity: 659,444 659,444 ------- ------- Capital Stock, without par value, stated value $.30 per combined share, Blue Ridge and Big Boulder each have authorized 3,000,000 shares and each have issued 2,198,148 shares as of January 31, 2003 and as of October 31, 2002 Capital in excess of stated value 1,461,748 1,461,748 Earnings retained in the business 10,536,997 10,166,211 ---------- ---------- 12,658,189 12,287,403 LESS: Cost of 282,018 and 281,968 shares 2,085,407 2,084,882 ------- ------- --------- --------- of capital stock in treasury as of January 31, 2003 & October 31, 2002, respectively. 10,572,782 10,202,521 ---------- ---------- $26,224,349 $24,645,828 =========== ===========
See accompanying notes to unaudited financial statements. 2 BLUE RIDGE REAL ESTATE COMPANY and SUBSIDIARIES BIG BOULDER CORPORATION and SUBSIDIARIES COMBINED CONDENSED STATEMENTS OF OPERATIONS THREE MONTHS ENDED JANUARY 31, 2003 & 2002 (UNAUDITED)
2003 2002 Revenues: Ski operations $5,568,512 $4,941,020 Real estate management 775,839 839,708 Summer recreation operations 85,988 178,357 Land resource management 1,109,900 148,359 Rental income 456,686 429,856 ------- ------- 7,996,925 6,537,300 --------- --------- Costs and expenses: Ski operations 5,631,001 4,921,516 Real estate management 659,136 674,647 Summer recreation operations 197,984 168,173 Land resource management 298,033 5,360 Rental operations 291,141 245,825 General & administrative expenses 185,696 304,337 ------- ------- 7,262,991 6,319,858 --------- --------- Income from operations 733,934 217,442 ------- ------- Other income (expense): Interest & other income 1,327 5,797 Interest expense (114,475) (106,702) -------- -------- (113,148) (100,905) -------- -------- Income before income taxes 620,786 116,537 ------- ------- Provision for income taxes 250,000 46,600 ------- ------ Net income $ 370,786 $ 69,937 ========== ========== Basic and diluted earnings per weighted average combined share $0.19 $0.04 ===== =====
See accompanying notes to unaudited financial statements. 3 BLUE RIDGE REAL ESTATE COMPANY BIG BOULDER CORPORATION and SUBSIDIARIES COMBINED CONDENSED STATEMENT OF CASH FLOWS THREE MONTHS ENDED JANUARY 31, 2003 & 2002 (UNAUDITED)
2003 2002 Cash Flows From(Used In) Operating Activities: Net Income $ 370,786 $ 69,937 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 911,760 884,265 Deferred income taxes 250,000 46,542 Gain on sale of assets 0 (1,632) Changes in assets and liabilities: Accounts receivable (236,714) 11,241 Prepaid expenses and other current assets (55,640) (50,946) Deferred operating costs 661,029 515,956 Notes Receivable (253,430) Accounts Payable & accrued liabilities 828,016 1,210,573 Deferred revenue 29,357 (49,888) ------ ------- Net cash provided by operating activities 2,505,164 2,636,048 --------- --------- Cash Flows From (Used In) Investing Activities: Proceeds from disposition of assets 0 17,191 Additions to properties (848,631) (926,195) Cash held in escrow (613,341) 0 -------- - Net cash used in investing activities (1,461,972) (909,004) ---------- -------- Cash flows From (Used In) Financing Activities: Payment of short-term financing (2,250,000) (1,448,195) Proceeds from short-term financing 1,650,000 800,000 Payment of long-term debt and capital lease (310,892) (219,583) obligations Purchase of Treasury stock (525) 0 ---- - Net cash used in financing activities (911,417) (867,778) -------- -------- Net increase in cash and cash equivalents 131,775 859,266 Cash and cash equivalents, beginning of period 261,311 263,178 ------- ------- Cash and cash equivalents, end of period $ 393,086 $1,122,444 ========== ========== Supplemental disclosures of cash flow information: Cash paid during period: Interest $ 108,762 $ 107,516 Income taxes $ 0 $ 47,069 Supplemental disclosure of non cash investing $ 1,011,778 $ 0 and financing activities, additions to property acquired through capital lease obligations
See accompanying notes to unaudited financial statements. 4 NOTES TO UNAUDITED FINANCIAL STATEMENTS 1. The combined financial statements include the accounts of Blue Ridge Real Estate Company and its wholly-owned subsidiaries (Northeast Land Company, Jack Frost Mountain Company and BRRE Holdings, Inc.) and Big Boulder Corporation and its wholly-owned subsidiaries (Lake Mountain Company and BBC Holdings, Inc.). In the opinion of Management, the accompanying unaudited combined condensed financial statements contain all adjustments (consisting of only normal recurring accruals) necessary to present fairly the financial position as of January 31, 2003, and the results of operations and the statements of cash flows for the three month periods ended January 31, 2003 and January 31, 2002. Certain information and footnote disclosures have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission. These combined financial statements should be read in conjunction with the financial statements and notes thereto included in the Companies' Annual Report on Form 10-K for the year ended October 31, 2002. 2. The preparation of financial statements and related disclosures in conformity with accounting principles generally accepted in the United States 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 the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. For example, unexpected changes in market conditions or a downturn in the economy could adversely affect actual results. Estimates are used in accounting for, among other things, inventory obsolescence, accounts and notes receivables, legal liability, insurance liability, depreciation, employee benefits, taxes, and contingencies. Estimates and assumptions are reviewed periodically and the effects of revisions are reflected in the Combined Condensed Financial Statements in the period they are determined to be necessary. Management believes that its accounting policies regarding accounts and notes receivable, merchandise inventories, long lived assets, revenue recognition and other reserves, among others, affect its more significant judgments and estimates used in the preparation of its Combined Condensed Financial Statements. For a description of these critical accounting policies and estimates, see "Management's Discussion and Analysis of Financial Condition and Results of Operations" in the Company's Form 10-K for the fiscal year ended October 31, 2002. Management believes there have been no significant changes in the Companies' critical accounting policies or estimates since the Companies' fiscal year ended October 31, 2002. 3. The Companies account for notes receivable on a cost basis. Interest income is recorded on a monthly basis. Late payment fees are charged on overdue payment of principal and interest. Notes receivable are evaluated at origination and monitored on an ongoing basis for credit worthiness. Notes receivable are considered fully collectible by management and accordingly no allowance for loan losses is considered necessary. Any note 90 days past due is reviewed by management for write off. 5 Accounts receivable, trade are reported at net realizable value. Accounts are written off when they are determined to be uncollectible based upon management's assessment of individual accounts. The allowance for doubtful accounts which is insignificant, is estimated based on the Company's historical losses and the financial stability of its customers. 4. The Companies and the subsidiaries, under SFAS No. 131, operate in four business segments - Ski Operations, Real Estate Management/Rental Operations, Summer Recreation Operations and Land Resource Management. The results of operations for the three months are not necessarily indicative of the results to be expected for the full year since the Companies' two ski facilities operate principally during the months of December through March. Costs and expenses net of revenues received in advance attributable to the Ski Operations for the months of April through November are deferred and recognized as revenue and operating expenses, ratably, over the operating period. Therefore revenues and operating expenses of the Real Estate Management/Rental Operations and Summer Recreation Operations are as disclosed on the statement of operations. Depreciation of ski facility fixed assets is calculated over the 12- month period. The expense is deferred until the operating period, at which time it will be recognized ratably. 5. The provision for income taxes for the three months ended January 31, 2003 represents the estimated annual effective tax rate for the year ending October 31, 2003. The effective income tax rate for the first three months of Fiscal 2003 was 40%. 6. Reclassifications have been made to the January 31, 2002 Combined Condensed Statement of Operations to reflect changes in presentation for the three months ended January 31, 2003. Namely, Land Resource Management is reported as a separate segment of the Companies. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS Results of Operations Operations for the three months ended January 31, 2003 resulted in a net income of $0.19 per combined share compared to a net income of $.04 per combined share for the three months ended January 31, 2002. Combined revenue of $7,996,925 represents an increase of $1,459,625 as compared to the three months ended January 31, 2002. Ski operations increased $627,492. Real Estate Management decreased $63,869, Summer recreation operations decreased $92,329, Land resource management increased $961,541 and Rental income increased $26,830. Ski operations increase in revenue for the three months ended January 31, 2003 as compared to the three months ended January 31, 2002 was due to an increase in lift revenue ( 32%), season pass revenue ( 12% ), rental shop revenue ( 17% ) , tubing revenue ( 7% ) , food revenue ( 14% ) and retail revenue ( 8% ). 6 Real Estate Management revenue decreased $63,869. This decrease in revenue is attributable to property management of homes in our resort communities (38 %) and property sales for which we earn commission, within our resort communities (28%). Summer recreation operations decreased $92,329 for three months ended January 31, 2003 as compared to the three months ended January 31, 2002. This decrease was the result of a decrease in Splatter revenue (32%) and Traxx revenue (66%). The decrease in Traxx revenue is a result of the discontinuation of Snocross snow mobile rentals. Land resource management increased $961,541 for the three months ended January 31, 2003 as compared to the three months ended January 31, 2002. This is a new business segment that encompasses land sales and timbering. Rental operations increased $26,830 for the three months ended January 31, 2003 as compared to the three months ended January 31, 2002. This increase is attributable to the management of homes in our resort communities. Operating costs increased $1,061,774 during the first three months of Fiscal 2003 as compared to the three months ended January 31, 2002. Ski operation expenses increased $709,485. This increase was attributable to an increase in salaries and wages ( 41% ) , utilities ( 15% ) and insurance expense ( 9% ). Real Estate Management operating expenses decreased $15,511. Summer recreational operations expenses increased $29,811. This increase was the result of an increase in Splatter supplies & services (55%) and Traxx insurance (45%). Land Resource Management operation expenses increased $292,673. This is a new business segment that had minimal activity in the first three months of Fiscal 2002. General and Administrative expenses decreased $118,641. This decrease was due primarily to the reclassification of operating expenses, such as certain salaries, legal and auditing fees, to the revenue generating centers within the Company. Interest expense increased $7,773 for the three months ended January 31, 2003 as compared to the three months ended January 31, 2002. This increase is attributable to an additional line of credit for Land resource management purposes ( 6%), interest on the new D lift loan at Jack Frost Mountain ( 67% ) and interest on capital lease obligations ( 27% ) for the groomers and compressors at both ski areas. These increases were also offset by a pay down on existing debt and the reduction in the prime interest rate. Financial Condition, Liquidity and Capital Resources The deficit in working capital as of January 31, 2003, increased by $1,279,847 as compared to October 31, 2002. The change is primarily due to the cyclical nature of the Companies' business. The change in the balance of deferred operating costs from October 31, 2002 to January 31, 2003 was due primarily to revenue and expenses that are applicable to the ski facilities, which are deferred and recognized ratably during the months of December through March. 7 On November 8, 2002 the Companies entered into an additional line of credit with a bank, aggregating $1,000,000 available for short term financing, expiring March 31, 2003. The purpose of the new line of credit is to provide funds for mortgage financing of land sales. During Fiscal 2003 the Companies entered into two capital lease agreements for the purpose of financing snowmaking and grooming equipment. The equipment is being amortized over the five year term of the agreements. Moving Forward During Fiscal 2003 the Companies will actively pursue land sales and purchases. The Companies will offer financing to attract new land sale customers. The Companies will continue to generate timbering revenues from selective harvesting of timber. Management is organizing a subsidiary company, Boulder Creek Resort Company. This new company will be used as a marketing tool to consolidate and brand the Companies' holdings as one resort destination and to facilitate the land sales division. The Companies are planning further real estate development of multi-family dwellings at our ski resorts. An offer to purchase the Dreshertown Plaza Shopping Center has been presented to the Companies. Management is currently reviewing the proposal. A final price has not been determined. A mortgage note payable on the Dreshertown Plaza approximating $4,500,000 is classified as a current obligation with a maturity date of August 31, 2003. The proposed selling price in the proposal exceeds our current obligation. In the event management does not accept the proposal, it intends and has the capability to refinance this debt. In December 2002, the FASB issued SFAS No. 148 "Accounting for Stock Based Compensation-Transition and Disclosure". SFAS No. 148 amends SFAS No. 123, "Accounting for Stock Based Compensation", to provide alternative methods of transition for a voluntary change to the fair value based method of accounting for stock-based employee compensation. In addition, this Statement amends the disclosure requirements of Statement 123 to require prominent disclosures in both annual and interim financial statements about the method of accounting for stock-based employee compensation. These expanded disclosures will be required for the Companies' second quarter ending April 30, 2003. The Company anticipates that it will continue to apply Accounting Principles Board Opinion No. 25, "Accounting for Stock Issued to Employees". Accordingly, the Companies believe that the adoption of this standard will have no material impact on its financial position, results of operations or cash flows. 8 PART II - OTHER INFORMATION Item 4. Controls and Procedures Within the 90 days prior to the date of this report, the Companies carried out an evaluation, under the supervision and with the participation of its management, including its President and Chief Executive Officer and its Chief Financial Officer, of the effectiveness of the design and operation of its disclosure controls and procedures pursuant to Rule 13a-15 under the Securities Exchange Act of 1934. Based upon that evaluation, the President and Chief Executive Officer, and Chief Financial Officer have concluded that the Companies disclosure controls and procedures are effective in timely alerting them to material information relating to the Companies that is required to be included in the Companies periodic SEC filings. There have been no significant changes in the Companies internal controls or in any factors that could significantly affect the controls subsequent to the date of their evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses. Item 6. Exhibits and Reports on Form 8-K (a) Exhibits. 99.1 Certification of chief executive officer 99.2 Certification of chief financial officer (b) Reports on Form 8-K None. The Companies have no matters to report with respect to Items 1, 2, 3, and 5. 9 FORM 10-Q 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: BLUE RIDGE REAL ESTATE COMPANY BIG BOULDER CORPORATION (Registrant) /s/ Eldon D. Dietterick Eldon D. Dietterick Executive Vice President/Treasurer /s/ Cynthia A. Barron Cynthia A. Barron Chief Accounting Officer Date: March 6, 2003 10 CERTIFICATION* I, Patrick M. Flynn, certify that: 1. I have reviewed this quarterly report on Form 10-Q of Blue Ridge Real Estate Company and Big Boulder Corporation (together, the "registrants"); 2. Based on my knowledge, this quarterly report does not contain any untrue statement of a 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 registrants as of, and for, the periods presented in this quarterly report; Date: March 6, 2003 /s/ PATRICK M. FLYNN Patrick M. Flynn Chief Executive Officer and President _____________ * Pursuant to the transition provisions of Release No. 34-46427 (Aug. 28, 2002), the portions of this certification required by paragraphs (b)(4), (5) and (6) of Exchange Act Rule 13a-14 are inapplicable to this quarterly report. Accordingly, the portions have been omitted from this certification. 11 CERTIFICATION* I, Eldon D. Dietterick, certify that: 1. I have reviewed this quarterly report on Form 10-Q of Blue Ridge Real Estate Company and Big Boulder Corporation (together, the "registrants"); 2. Based on my knowledge, this quarterly report does not contain any untrue statement of a 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 registrants as of, and for, the periods presented in this quarterly report; Date: March 6, 2003 /s/ ELDON D. DIETTERICK________ Eldon D. Dietterick Executive Vice President and Treasurer (chief financial officer) _____________ * Pursuant to the transition provisions of Release No. 34-46427 (Aug. 28, 2002), the portions of this certification required by paragraphs (b)(4), (5) and (6) of Exchange Act Rule 13a-14 are inapplicable to this quarterly report. Accordingly, the portions have been omitted from this certification. 12 CERTIFICATION I, PATRICK M. FLYNN, certify that: 1. I have reviewed this quarterly report on Form 10-Q of Blue Ridge Real Estate Company/Big Boulder Corporation; 2. Based on my knowledge, this quarterly report does not contain any untrue statement of a 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 respect 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 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 45 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 functions): 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 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 annual report whether there were significant changes in 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. March 6, 2003 /s/ PATRICK M. FLYNN Patrick M. Flynn President 13 CERTIFICATION I, ELDON D. DIETTERICK, certify that: 1. I have reviewed this quarterly report on Form 10-Q of Blue Ridge Real Estate Company/Big Boulder Corporation; 2. Based on my knowledge, this quarterly report does not contain any untrue statement of a 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 respect 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 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 45 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 functions): 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 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 there were significant changes in 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. March 6, 2003 /s/ ELDON D. DIETTERICK Eldon D. Dietterick Executive Vice President and Treasurer 14 -----END PRIVACY-ENHANCED MESSAGE-----