-----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, IRspdAgNWWCl4tM8nqDPWw2PLTRugFicFBxUVra9jq3t75FKC13IYlAR4fy/8gM7 xDEgd8kav0WqmQZY/ZpaAA== 0001068800-02-000220.txt : 20020814 0001068800-02-000220.hdr.sgml : 20020814 20020814154057 ACCESSION NUMBER: 0001068800-02-000220 CONFORMED SUBMISSION TYPE: 10QSB PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20020630 FILED AS OF DATE: 20020814 FILER: COMPANY DATA: COMPANY CONFORMED NAME: PGI INC CENTRAL INDEX KEY: 0000081157 STANDARD INDUSTRIAL CLASSIFICATION: OPERATIVE BUILDERS [1531] IRS NUMBER: 590867335 STATE OF INCORPORATION: FL FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10QSB SEC ACT: 1934 Act SEC FILE NUMBER: 001-06471 FILM NUMBER: 02736052 BUSINESS ADDRESS: STREET 1: 212 SOUTH CENTRAL STREET 2: SUITE 100 CITY: ST LOUIS STATE: MO ZIP: 63105 BUSINESS PHONE: 3145128650 MAIL ADDRESS: STREET 1: 212 SOUTH CENTRAL STREET 2: SUITE 100 CITY: ST LOUIS STATE: MO ZIP: 63105 FORMER COMPANY: FORMER CONFORMED NAME: PUNTA GORDA ISLES INC DATE OF NAME CHANGE: 19900403 10QSB 1 pgi10q.txt PGI INCORPORATED FORM 10-QSB PGI INCORPORATED AND SUBSIDIARIES U.S. SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10 - QSB (Mark One) / X / QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2002 ------------------------------ / / 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 1-6471 ----------------------------------------------- PGI INCORPORATED ---------------------------------------------------------------------- (Exact name of small business issuer as specified in its charter) FLORIDA 59-0867335 ---------------------------------- ------------------------------ (State or other jurisdiction (I.R.S. Employer of incorporation) Identification No.) 212 SOUTH CENTRAL, SUITE 100, ST. LOUIS, MISSOURI 63105 ---------------------------------------------------------------------- (Address of principal executive offices) (314) 512-8650 ---------------------------------------------------------------------- (Issuer's telephone number) (Former Name, Former Address and Former Fiscal year, if changed since last report) Check whether the issuer (1) has filed all reports required to be filed by Section 13 or 15 (d) of the Securities Exchange Act of 1934 during the past 12 months (or for 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 --- --- State the number of shares outstanding of each of the issuer's classes of common equity, as of the latest practicable date: As of August 9, 2002 there were 5,317,758 shares of the Registrant's common stock outstanding. Transitional Small Business Disclosure Format (Check one): Yes No X --------------- --------------- 1 PGI INCORPORATED AND SUBSIDIARIES Form 10 - QSB For the Quarter Ended June 30, 2002 Table of Contents -----------------
Form 10 - QSB Page No. ------------- PART I Financial Information Item 1 Financial Statements Consolidated Statements of Financial Position June 30, 2002 and December 31, 2001 3 Consolidated Statements of Operations Three and Six Months Ended June 30, 2002 and 2001 4 Condensed Consolidated Statements of Cash Flows Six Months Ended June 30, 2002 and 2001 5 Notes to Consolidated Financial Statements for Form 10 - QSB 6 - 11 Item 2 Management's Discussion and Analysis of Financial Condition and Results of Operations 12 - 15 PART II Other Information Item 1 Legal Proceedings 16 Item 2 Changes in Securities 16 Item 3 Defaults Upon Senior Securities 16 Item 4 Submission of Matters to a Vote of Security Holders 16 Item 5 Other Information 16 Item 6 Exhibits and Reports on Form 8 - K 16 SIGNATURES 17
2 PGI INCORPORATED AND SUBSIDIARIES Part I Financial Information Item 1 Financial Statements CONSOLIDATED STATEMENTS OF FINANCIAL POSITION ($ in thousands)
June 30, December 31, 2002 2001 ---- ---- (Unaudited) ASSETS Cash and cash equivalents $ 148 $ 234 Restricted cash 1 260 Receivables 563 130 Land and improvement inventories 702 737 Other assets 169 173 -------- -------- $ 1,583 $ 1,534 ======== ======== LIABILITIES Accounts payable & accrued expenses $ 42 $ 73 Accrued real estate taxes 370 382 Accrued interest: Primary Lender 17 - Debentures 16,022 14,995 Other 2,048 2,009 Credit Agreements - Primary lender 700 700 Notes payable 1,198 1,198 Subordinated debentures payable 9,059 9,059 Convertible debentures payable 1,500 1,500 -------- -------- $ 30,956 $ 29,916 -------- -------- 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 (45,403) (44,412) -------- -------- (29,373) (28,382) -------- -------- $ 1,583 $ 1,534 ======== ======== See accompanying notes to consolidated financial statements for Form 10 - QSB
3 PGI INCORPORATED AND SUBSIDIARIES Part I Financial Information (Continued) CONSOLIDATED STATEMENTS OF OPERATIONS ($ in thousands, except per share data) (Unaudited)
Three Months Ended Six Months Ended ------------------ ---------------- June 30, June 30, June 30, June 30, 2002 2001 2002 2001 ---- ---- ---- ---- REVENUES Real Estate Sales $ 238 $ 26 $ 238 $ 38 Interest Income 14 10 23 25 Other Income 6 4 16 7 ----- ----- ------ ------- 258 40 277 70 ----- ----- ------ ------- COSTS AND EXPENSES Cost of Real Estate Sales $ 65 $ 5 $ 65 $ 11 Interest 556 523 1,100 1,041 Taxes & Assessments 13 17 37 33 Consulting & Accounting 10 13 20 23 Legal & Professional 4 21 15 36 General & Administrative 22 8 31 33 ----- ----- ------ ------- 670 587 1,268 1,177 ----- ----- ------ ------- NET (LOSS) $(412) $(547) $ (991) $(1,107) ===== ===== ====== ======= NET (LOSS) PER SHARE (*) $(.11) $(.13) $ (.25) $ (.27) ===== ===== ====== ======= * Considers the effect of cumulative preferred dividends in arrears for the three and six months ended June 30, 2002 and 2001. See accompanying notes to consolidated financial statements for Form 10 - QSB
4 PGI INCORPORATED AND SUBSIDIARIES Part I Financial Information (Continued) CONSOLIDATED STATEMENTS OF CASH FLOWS ($ in thousands) (Unaudited)
Six Months Ended ---------------- June 30, June 30, 2002 2001 ---- ---- Net cash provided by (used in) operating activities $ 109 $(118) ----- ----- Cash flows from investing activities: Proceeds from release of restricted cash 242 - Investment in notes receivable (440) (250) Purchases of inventory and deferred expenditures - (7) Proceeds from notes receivables 3 2 ----- ----- Net cash (used in) investing activities (195) (255) ----- ----- Net (decrease) in cash (86) (373) Cash at beginning of period 234 454 ----- ----- Cash at end of period $ 148 $ 81 ===== ===== See accompanying notes to consolidated financial statements for Form 10 - QSB
5 PGI INCORPORATED AND SUBSIDIARIES Notes to Consolidated Financial Statements (Unaudited) (1) Basis of Presentation The accompanying unaudited consolidated financial statements have been prepared in accordance with the instructions to Form 10 - QSB and therefore do not include all disclosures necessary for fair presentation of financial position, results of operations and cash flows in conformity with generally accepted accounting principles. The Company's independent accountants included an explanatory paragraph regarding the Company's ability to continue as a going concern in their opinion on the Company's consolidated financial statements for the year ended December 31, 2001. The consolidated balance sheet as of December 31, 2001 has been derived from the audited consolidated balance sheet as of that date. The Company remains in default under the indentures governing its unsecured subordinated and convertible debentures and in default of its primary debt obligations. (See Management's Discussion and Analysis of Financial Condition and Results of Operations and Notes 9, 10, 11, and 16 to the Company's consolidated financial statements for the year ended December 31, 2001, as contained in the Company's Annual Report on Form 10 - KSB). All adjustments (consisting of only normal recurring accruals) necessary for fair presentation of financial position, results of operations and cash flows have been made. The results for the three and six months ended June 30, 2002 are not necessarily indicative of operations to be expected for the fiscal year ending December 31, 2002 or any other interim period. (2) Per Share Data Basic per share amounts are computed by dividing net income (loss), after considering cumulative dividends in arrears on the Company's preferred stock, by the average number of common shares and common stock equivalents outstanding. For this purpose, the Company's cumulative convertible preferred stock and collateralized convertible debentures are not deemed to be common stock equivalents. The average number of common shares outstanding for the six months ended June 30, 2002 and 2001 was 5,317,758. Diluted per share amounts are computed by dividing net income (loss) by the average number of common shares outstanding, after adjusting for the estimated effect of the assumed conversion of all cumulative convertible preferred stock and collateralized convertible debentures into shares of common stock. For the six months ended June 30, 2002 and 2001, the assumed conversion of all cumulative convertible preferred stock and collateralized convertible debentures would have been anti-dilutive. 6 PGI INCORPORATED AND SUBSIDIARIES Notes to Consolidated Financial Statements (continued) The following is a summary of the calculations used in computing basic and diluted (loss) per share for the three and six months ended June 30, 2002 and 2001.
Three Months Ended Six Months Ended ------------------ ---------------- June 30, June 30, June 30, June 30, 2002 2001 2002 2001 ---- ---- ---- ---- Net (Loss) $(412,000) $(547,000) $ (991,000) $(1,107,000) Preferred Dividends (160,000) (160,000) (320,000) (320,000) --------- --------- ----------- ----------- (Loss) Available to Common Shareholders $(572,000) $(707,000) $(1,311,000) $(1,427,000) ========= ========= =========== =========== Weighted Average Number of Shares Outstanding 5,317,758 5,317,758 5,317,758 5,317,758 Basic and Diluted (Loss) Per Share $ (.11) $ (.13) $ (.25) $ (.27)
(3) Statement of Cash Flows The Financial Accounting Standards Board issued Statement No. 95, "Statement of Cash Flows", which requires a statement of cash flows as part of a full set of financial statements. For quarterly reporting purposes, the Company has elected to condense the reporting of its net cash flows. Interest paid for the six months ended June 30, 2002 and 2001 was $17,000 and $46,000 respectively. (4) Restricted Cash Restricted cash includes restricted proceeds held by the primary lender as collateral for debt repayment and escrowed receipts related to sold contracts receivable. 7 PGI INCORPORATED AND SUBSIDIARIES Notes to Consolidated Financial Statements (continued) (5) Receivables Net receivables consisted of:
June 30, December 31, 2002 2001 ---- ---- ($ in thousands) Contracts receivable on homesite sales $ 167 $ 177 Less: Allowance for cancellations (167) (177) ------- ------- Net receivables on real estate sales - - Other notes receivable - trade 9 26 Other notes receivable - related party 540 100 Other interest receivable 14 4 ------- ------- $ 563 $ 130 ======= =======
(6) Land and Improvements Land and improvement inventories consisted of:
June 30, December 31, 2002 2001 ---- ---- ($ in thousands) Unimproved land $ 613 $ 613 Fully improved land 89 124 ------- ------- $ 702 $ 737 ======= =======
(7) Property and Equipment Property and Equipment consisted of:
June 30, December 31, 2002 2001 ---- ---- ($ in thousands) Furniture, fixtures and other equipment $ 31 $ 31 Less: Accumulated depreciation (31) (31) ------- ------- $ - $ - ======= =======
(8) Other Assets Other assets consisted of:
June 30, December 31, 2002 2001 ---- ---- ($ in thousands) Deposit with Trustee of 6-1/2% debentures $ 159 $ 158 Other 10 15 ------- ------- $ 169 $ 173 ======= =======
8 PGI INCORPORATED AND SUBSIDIARIES Notes to Consolidated Financial Statements (continued) (9) Accounts Payable and Accrued Expenses Accounts payable and accrued expenses consisted of:
June 30, December 31, 2002 2001 ---- ---- ($ in thousands) Accounts payable $ 21 $ 48 Accrued audit & professional 19 24 Accrued consulting fees 2 - Accrued legal - 1 ------- ------- $ 42 $ 73 ======= ======= Accrued Real Estate Taxes consisted of: Current real estate taxes $ 9 $ 18 Delinquent real estate taxes 361 364 ------- ------- $ 370 $ 382 ======= =======
(10) 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:
June 30, December 31, 2002 2001 ---- ---- ($ in thousands) Credit agreements - primary lender: (maturing July 8, 1997, bearing interest at prime plus 5%) $ 700 $ 700 Notes payable - $1,176,000 bearing interest at prime plus 2% 1,198 1,198 ------- ------- $ 1,898 $ 1,898 ------- ------- Subordinated debentures payable: At 6-1/2% interest; due June 1991 1,034 1,034 At 6% interest; due May 1, 1992 8,025 8,025 ------- ------- $ 9,059 $ 9,059 ------- -------
9 PGI INCORPORATED AND SUBSIDIARIES Notes to Consolidated Financial Statements (continued) 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 $12,457 $12,457 ======= =======
(11) Real Estate Sales and Other Income Real Estate Sales and Cost of Sales for the three and six months ended June 30, 2002 and 2001 were as follows:
Three Months Ended Six Months Ended ------------------ ---------------- June 30, June 30, June 30, June 30, 2002 2001 2002 2001 ---- ---- ---- ---- ($ in thousands) ($ in thousands) Real Estate Sales $238 $ 26 $238 $ 38 Cost of Sales 65 5 65 11
Other income for the six months ended June 30, 2002 and 2001 was $16,000 and $7,000 respectively. The other income mainly consists of recoveries of contracts receivable which have been fully provided for. (12) Commitments and Contingencies The aggregate outstanding balances of all receivables sold and exchanged with recourse was paid off in March 2002. The outstanding balance totaled $17,000 at December 31, 2001. Based on its collection experience with such receivables, the Company maintained no allowance at December 31, 2001 for the recourse provision related to all receivables sold. (13) Income Taxes At December 31, 2001, the Company had an operating loss carryforward of approximately $38,000,000 to reduce future taxable income. These operating losses expire at various dates through 2021. 10 PGI INCORPORATED AND SUBSIDIARIES Notes to Consolidated Financial Statements (continued) The following summarizes the temporary differences of the Company at December 31, 2001 at the current statutory rate:
($ in thousands) Deferred tax asset: Net operating loss carryforward $ 15,120 Adjustments to reduce land to net realizable value 12 Expenses capitalized under IRC 263(a) 56 (15,016) -------- Valuation allowance 172 Deferred tax liability: Basis difference of land and improvement inventories 172 -------- Net deferred tax asset $ - ========
11 PGI INCORPORATED AND SUBSIDIARIES Item 2 Management's Discussion and Analysis of Financial Condition and Results of Operations Preliminary Note The Company's business focus and emphasis recently has been to concentrate its sales and marketing efforts on the disposition in bulk of its undeveloped, platted, residential real estate, as a result of its continuing financial difficulties due to the principal and interest owed on its debt. Presently, the Company's remaining inventory primarily consists of 370 acres located in Hernando County, Florida. In addition, the Company has been actively pursuing collection on delinquent contract receivables from homesite sales. The Company owns approximately 35 lots, mostly located in Citrus County, Florida which are listed for sale. The Company believes the 370 acres located in Hernando County, Florida may become more marketable because of the property's close proximity to the recently completed interchange of the Suncoast Expressway with Highway 98. In December 1999, the Hernando County Commission approved a change in land use of 40 acres of the parcel from residential to commercial use. The Company anticipates that a further extension of the Suncoast Expressway beyond Highway 98 will not occur for several years. Results of Operations Revenues for the first six months of 2002 increased by $207,000 to $277,000 from $70,000 for the comparable 2001 period reflecting additional real estate sales revenue in the current year. A net loss of $991,000 was incurred for the first six months of 2002 compared to a net loss of $1,107,000 for the first six months of 2001. Expenses for the six months increased by $91,000 reflecting increases in cost of real estate sales and interest expense. After consideration of cumulative preferred dividends in arrears, totaling $320,000 for each of the six months ended June 30, 2002 and 2001 ($.10 per share of common stock), net (loss) per share of $(.25) and $(.27) respectively, was reported for the six month periods ended June 30, 2002 and 2001. Real Estate Sales and Cost of Sales consisted of:
Three Months Ended Six Months Ended June 30, June 30, June 30, June 30, 2002 2001 2002 2001 ---- ---- ---- ---- ($ in thousands) ($ in thousands) Real Estate Sales $238 $ 26 $238 $ 38 Cost of Sales 65 5 65 11
Other income for the six months ended June 30, 2002 and 2001 was $16,000 and $7,000 respectively. The other income mainly consists of recoveries of contracts receivable which have been fully provided for. 12 PGI INCORPORATED AND SUBSIDIARIES Item 2 Management's Discussion and Analysis of Financial Condition and Results of Operations (continued) As of June 30, 2002, the Company remained in default of its primary lender indebtedness with PGIP, LLC, ("PGIP"). PGIP holds restricted funds of the Company pursuant to an escrow agreement whereby funds may be disbursed (i) as requested by PGI and agreed to by PGIP, or (ii) as deemed necessary and appropriate by PGIP, in either case, to protect PGIP's interest in the Retained Acreage (as hereinafter defined), including PGIP's right to receive principal and interest under the note agreement securing the remaining indebtedness, or (iii) to PGIP to pay any other obligations owed to PGIP by the Company. The restricted escrow held by the primary lender at June 30, 2002 and December 31, 2001 was $1,000 and $255,000 respectively. The Company utilized $239,000 of the restricted escrow in April, 2002 to invest in a short term note with an affiliate of L-PGI, the Company's preferred shareholder, Love Investment Company. The real estate owned by the Company that has not been sold, totalling approximately 370 acres (the "Retained Acreage"), remains subject to the primary lender indebtedness. Contracts receivable on homesite sales and related receivables are fully provided for cancellation at June 30, 2002 and December 31, 2001. The Company has been actively pursuing collection on the delinquent contract receivables. An assessment is made for each contract receivable as to the economic benefit of reacquisition of the lot considering the cost of foreclosure, delinquent taxes and association fees due, and estimated current sale value of the lot. For those contract receivables with an anticipated economic benefit, foreclosure action is begun in the absence of payment or receipt of a quit claim deed of the property back to the Company. Cash provided by operating activities for the six months ended June 30, 2002 was $109,000 compared to cash used of $118,000 for the comparable 2001 period. Net cash used in investing activities in 2002 included proceeds from the release of restricted cash of $242,000 less a $440,000 investment in a short-term note with an affiliate of L-PGI, the Company's preferred shareholder, Love Investment Company. Cash used in investing activities in 2001 included a $250,000 investment in a short-term note with an affiliated holding company. 13 PGI INCORPORATED AND SUBSIDIARIES Item 2 Management's Discussion and Analysis of Financial Condition and Results of Operations (continued) Analysis of Financial Condition Assets increased at June 30, 2002 compared to assets at December 31, 2001, reflecting the following changes:
June 30, December 31, Increase 2002 2001 (Decrease) ---- ---- ---------- ($ in thousands) Cash and cash equivalents $ 148 $ 234 $ (86) Restricted cash 1 260 (259) Receivables 563 130 433 Land and improvement inventories 702 737 (35) Other assets 169 173 (4) ------ ------ ----- $1,583 $1,534 $ 49 ====== ====== =====
Liabilities were approximately $31 million at June 30, 2002 compared to approximately $29.9 million at December 31, 2001 reflecting the following changes:
June 30, December 31, Increase 2002 2001 (Decrease) ---- ---- ---------- ($ in thousands) Accounts payable & accrued expenses $ 42 $ 73 $ (31) Accrued real estate taxes 370 382 (12) Accrued interest 18,087 17,004 1,083 Credit agreements - primary lender 700 700 - Notes 1,198 1,198 - Convertible subordinated debentures payable 9,059 9,059 - Convertible debentures payable 1,500 1,500 - ------- ------- ------ $30,956 $29,916 $1,040 ======= ======= ======
The Company has aggressively taken steps to curtail and simplify operations as well as concentrate on major bulk sales of its undeveloped acreage. The Company remains totally dependent upon the sale of property to fund its operations and debt service requirements. 14 PGI INCORPORATED AND SUBSIDIARIES Item 2 Management's Discussion and Analysis of Financial Condition and Results of Operations (continued) The Company remains in default of the entire principal plus interest on its subordinated debentures. The amounts due are as indicated in the following table:
June 30, 2002 ------------- Principal Unpaid Amount Due Interest ---------- -------- ($ in thousands) Subordinated debentures due June 1, 1991 $1,034 $ 861 Subordinated debentures due May 1, 1992 8,025 7,913 ------ ------ $9,059 $8,774 ====== ======
The Company does not have funds available to make any payments of either principal or interest on the above debentures. 15 PGI INCORPORATED AND SUBSIDIARIES PART II Other Information Item 1 Legal Proceedings In 1994, the Citrus County Tax Assessor denied agricultural exemption status for the undeveloped Sugarmill Woods property and the Company was forced to sue the County to reclaim the tax benefit. In 1995, the Citrus County Tax Assessor again denied agricultural exemption status for the undeveloped Sugarmill Woods property, but was overruled by the Value Adjustment Board. As a result, the Tax Assessor sued Sugarmill Woods, and was again successful in denying the agricultural exemption for the property. The Company won on appeal, but the Tax Assessor appealed to the Supreme Court of Florida to reinstate the exemption. On April 1, 1999, the Supreme Court of Florida issued their opinion in favor of Sugarmill Woods, Inc. On November 9, 1999 the Circuit Court of Citrus County adjudged the agricultural classification applicable to tax years 1994, 1995 and 1996 for exemption. The non interest bearing restricted escrow of $557,000 was released in October 2000 with the confirmation that no further liability exists for tax years 1994, 1995, and 1996. Tax year 1997 remains in dispute on a matter of timely filing of petition for exemption. In June 2002 the District Court of Appeals denied the agricultural exemption for 1997 and the Company has filed a motion for rehearing. Item 2 Changes in Securities Not applicable. Item 3 Defaults Upon Senior Securities See discussion in Item 2 with respect to defaults on the Company's subordinated debentures and collateralized convertible debentures, which discussion is incorporated herein by this reference. Item 4 Submission of Matters to a Vote of Security Holders Not applicable. Item 5 Other Information Not applicable. Item 6 Exhibits and Reports on Form 8 - K (a) Exhibits - reference is made to the Exhibit Index hereof for a list of exhibits filed under this Item. (b) No report on Form 8 - K was filed during the quarter ended June 30, 2002. 16 PGI INCORPORATED AND SUBSIDIARIES In accordance with the requirements of the Exchange Act, the registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. PGI INCORPORATED ---------------- (Registrant) Date: August 14, 2002 /s/ Laurence A. Schiffer --------------------- -------------------------- Laurence A. Schiffer President 17 PGI INCORPORATED AND SUBSIDIARIES EXHIBIT INDEX - ------------- 2. Inapplicable. 3(i) Restated Articles of Incorporation of PGI Incorporated executed September 4, 1998 with certificate from the State of Florida dated October 27, 1998 (filed as Exhibit 3.1 to Registrant's September 30, 1998 Form 10-QSB and incorporated herein by reference). 3(ii)a. Bylaws of Registrant, as amended September 1987 (filed as Exhibit 3.3 to Registrant's original Form 10-K Annual Report for the year ended December 31, 1987 ("Original 1987 Form 10-K") dated as of March 29, 1988 and incorporated herein by reference). 3(ii)b. Amendments to the Bylaws of the Registrant by the Board of Directors of PGI Incorporated by the Unanimous Written Consent, dated as of March 17, 1995 (filed as Exhibit 3.5 to the December 31, 1995 Form 10-KSB and incorporated herein by reference). 4. Inapplicable. 10. Inapplicable. 11. Statements re: Computations of Per Share Earnings. (Incorporated by reference to Note 2 to the consolidated financial statements herein.) 15 Inapplicable. 18. Inapplicable. 19. Inapplicable. 22. Inapplicable. 23. Inapplicable. 24. Inapplicable. 99.1 Chief Executive Officer certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. Filed herein on page 19. 99.2 Chief Financial Officer certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. Filed herein on page 20. 18 EX-99.1 3 exh99p1.txt CHIEF EXECUTIVE OFFICER CERTIFICATION Exhibit 99.1 CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002 In connection with the Quarterly Report of PGI Incorporated (the "Company") on Form 10-QSB for the period ended June 30, 2002 as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I, Laurence A. Schiffer, Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. section 1350, as adopted pursuant to section 906 of the Sarbanes-Oxley Act of 2002, that to the best of my knowledge: (1) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Act of 1934; and (2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. /s/ Laurence A. Schiffer - ------------------------ Laurence A. Schiffer Chief Executive Officer August 14, 2002 19 EX-99.2 4 exh99p2.txt CHIEF FINANCIAL OFFICER CERTIFICATION Exhibit 99.2 CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002 In connection with the Quarterly Report of PGI Incorporated (the "Company") on Form 10-QSB for the period ended June 30, 2002 as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I, Laurence A. Schiffer, Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. section 1350, as adopted pursuant to section 906 of the Sarbanes-Oxley Act of 2002, that to the best of my knowledge: (1) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Act of 1934; and (2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. /s/ Laurence A. Schiffer - ------------------------ Laurence A. Schiffer Chief Financial Officer August 14, 2002 20 -----END PRIVACY-ENHANCED MESSAGE-----