##### Table of Contents



SECURITIES AND EXCHANGE COMMISSION
 WASHINGTON, D.C. 20549
 FORM 10-K
 ANNUAL REPORT
 Pursuant
to Section 13 or 15(d) of
the Securities Exchange Act of 1934
 For
the fiscal year ended April 30, 2007
Commission file number 0-10146
 SERVIDYNE, INC.
  Georgia
    
    58-0522129(State or other jurisdiction of 
incorporation or organization)
    
    (I.R.S. Employer
identification No.)
 1945 The Exchange, Suite 300, Atlanta, GA
    
    30339-2029(Address of principal executive offices)
    
    (Zip Code)
 (770) 953-0304
  Title of each class:
    
    Name of each exchange on which registered:Common Stock, $1.00 Par Value Per Share
    
    Nasdaq Global Market
     o NO þ
  o NO þ
  YES þ o
 þ
  Large Accelerated
Filer o
    
    Accelerated
Filer o
    
    Non-Accelerated Filer þ
  o NO þ




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TABLE OF CONTENTS  PART IITEM 1. BUSINESSITEM 1A. RISK FACTORSITEM 1B. UNRESOLVED STAFF COMMENTSITEM 2. PROPERTIESITEM 3. LEGAL PROCEEDINGSITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERSPART IIITEM 5. MARKET FOR REGISTRANTS COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIESITEM 6. SELECTED FINANCIAL DATAITEM 7. MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISKITEM 9. CHANGES IN AND DISAGREEMENTS WITH INDEPENDENT AUDITORS ON ACCOUNTING AND FINANCIAL DISCLOSUREITEM 9A. CONTROLS AND PROCEDURESITEM 9B. OTHER INFORMATIONPART IIIITEMS 10-14PART IVITEM 15. EXHIBITS AND FINANCIAL STATEMENT SCHEDULESSIGNATURESEX-21 LIST OF SUBSIDIARIESEX-23.(A) CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRMEX-31.1 SECTION 302, CERTIFICATION OF THE CEOEX-31.2 SECTION 302, CERTIFICATION OF THE CFOEX-32.1 SECTION 906, CERTIFICATION OF THE CEOEX-32.2 SECTION 906, CERTIFICATION OF THE CFO    Table of Contents  
 PART I
 
 ITEM 1. BUSINESS
      BUILDING PERFORMANCE EXPERT SEGMENT (BPE)
  
    
    The BPE Energy Solution is an integrated energy management
program designed to help customers manage utility expenses, reduce
energy consumption, and lower greenhouse gas emissions. Major
elements of this comprehensive process include: expert energy audits
and facility assessments; utility monitoring and energy costs
benchmarking; development of strategic energy plans; turn-key design
and implementation of energy savings projects; comprehensive
preventive maintenance programs of energy consuming equipment;
ongoing energy measurement and reporting; and program management.
 
    
    The BPE Infrastructure Solution is a financially-driven
strategic process to identify and transform wasteful and inefficient
buildings into cost effective and environmentally sustainable
facilities. Major elements of this comprehensive program include:
expert facility assessments and retro-commissioning of existing
systems; infrastructure capital planning; turn-key design and
implementation of infrastructure upgrades and energy savings capital
projects; ongoing preventive maintenance support; and other strategic
services designed to lower facility operating costs and extend the
lives of building infrastructures and equipment.
 
    
    The BPE Productivity Solution is a broad-based program
designed to help customers optimize the costs of onsite maintenance,
improve the efficiency of facility-related workforces, and improve
the operating efficiency of building systems and equipment. Major
elements of this comprehensive process include: a detailed inventory
of all facility assets and assessment of current maintenance
practices and organization; the design, implementation and ongoing
support of proprietary preventive maintenance and service request
Web/wireless systems with integrated utility and maintenance
reporting; and technical training.
  2




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REAL ESTATE SEGMENT
   EMPLOYEES AND EMPLOYEE RELATIONS
  SEASONAL NATURE OF BUSINESS
  COMPETITION
  PRINCIPAL CUSTOMERS
  3




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BACKLOG
  IncreaseApril 30,
    
    (Decrease)2007
    
    2006
    
    Amount
    
    PercentBPE (1)
    
    $
    9,368,000
    
    
    $
    5,890,000
    
    
    $
    3,478,000
    
    
    
    59Real Estate (2)
    
    
    5,981,000
    
    
    
    5,479,000
    
    
    
    502,000
    
    
    
    9Less: Intersegment Eliminations (3)
    
    
    (564,000
    )
    
    
    (548,000
    )
    
    
    (16,000
    )
    
    
    3Total Backlog
    
    $
    14,785,000
    
    
    $
    10,821,000
    
    
    $
    3,964,000
    
    
    
    37
 
 (1)
    
    The increase in BPE backlog is primarily due to an increase of approximately:
 (a)
    
    $1,814,000 or an increase of 188% in energy management services; and(b)
    
    $1,564,000 or an increase of 72% from infrastructure upgrades and energy saving projects.
   (2)
    
    Real Estate backlog increased primarily as the result of approximately:
 (a)
    
    $469,000 of rental revenues related to the shopping center located in Smyrna,
Tennessee, acquired by the Company in July 2006;
 (b)
    
    $381,000 of rental revenues related to an office building located in Newnan,
Georgia, acquired by the Company in March 2007; and
 (c)
    
    an increase in net rental revenues of $49,000 related to successful leasing
activities at other properties;
 partially offset by:
 (d)
    
    approximately $300,000 of rental revenues related to the Companys leaseback
interest in a shopping center located in Richfield, Minnesota, which the Company sold
on March 12, 2007; and
 (e)
    
    $183,000 of rental revenues as the result of the pending expiration in January 2008 of
a third-party lease at the Companys headquarters building located in Atlanta,
Georgia.
 (3)
    
    Represents rental income at the Companys headquarters building to be paid to the Real
Estate Segment by the Parent Company and the BPE Segment.
  REGULATION
  4




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EXECUTIVE OFFICERS OF THE REGISTRANT
  Alan R. Abrams(52)
    
    
    
    Officer since 1988
  Mark J. Thomas(51)
    
    
    
    Officer since 2003
  Melinda S. Garrett(51)
    
    Officer since 1990
  J. Andrew Abrams(47)
    
    
    
    Officer since 1988
  M. Todd Jarvis(41)
    
    
    
    Officer since 2006
   
 ITEM 1A. RISK FACTORS
  Risks Related to the Company
 The Companys business depends on the success of its relatively new building performance energy,
infrastructure, and productivity offerings. If the Company fails to grow these lines of business,
its prospects could be adversely affected.
  5




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
    
    the ability to add new products and services for the BPE Segment, and the ability to
keep current products and services competitive;
 
    
    the ability to make profitable business acquisitions and the ability to integrate
such acquired businesses into existing operations;
 
    
    the hiring, training and retention of qualified personnel;
 
    
    the establishment of new relationships or expansion of existing relationships with
customers and suppliers; and
 
    
    the availability of capital.
  The Company is redeploying a portion of its capital previously invested in the Real Estate Segment
to grow the BPE Segment. The Company cannot guarantee that the return on investing these resources
in the new segment, if any, will exceed the return that might otherwise be achievable from the Real
Estate Segment.
   In recent years, net earnings have been driven significantly by capital gains from the sale of real
estate investment properties. Without such gains recurring in the future, the Company might not be
profitable.
   6




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If the Company cannot find suitable business acquisition candidates, or integrate completed
business acquisitions successfully, its prospects could be adversely affected
    The Company may not be able to raise the additional capital necessary to implement its growth
strategy.
  If the Company successfully implements its growth strategy, but is unable to effectively manage its
growth, the Companys revenues and profitability might be adversely affected.
  7




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The Company is dependent upon key personnel and the loss of any such key personnel could adversely
impair the Companys ability to conduct its business. In addition, the implementation of the
Companys growth strategy will require the addition of suitable personnel.
   The Company is subject to changing regulations regarding corporate governance and required public
disclosure that have increased both the costs of compliance and the risks of noncompliance. As a
small public company, these costs of compliance may affect the Company disproportionately as
compared with larger competitors.
     Risks Related to the Companys BPE Segment
 Failure to adequately expand the BPE Segments sales force may impede its growth.
  8




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As more of the BPE Segments sales efforts are targeted at larger enterprise customers, its sales
cycle may become longer and more expensive, it may encounter pricing pressure and implementation
challenges, and the Company may have to delay revenue recognition with respect to certain sales to
these customers, all of which could harm the BPE Segments business.
  A significant portion of BPE energy savings contract revenues come from energy service companies
(ESCOs). If the ESCOs were to reduce or eliminate future contract awards, the Companys
business could be harmed.
  The value to customers of the various energy savings products and services offered by the Companys
BPE Segment is substantially impacted by the prevailing conditions of energy markets; if energy
prices and utility costs were to decline, sales of the BPE Segments energy savings products and
service offerings might not grow, or could even decline.
  9




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The BPE Segment may be subject to potential liabilities as a result of construction or design
defects, product liability, or warranty claims made.
  A portion of the BPE Segments revenues are derived from fixed price contracts, which could result
in losses on contracts.
  The BPE Segment often utilizes subcontractors in performing services or completing projects, whose
potential unavailability or unsatisfactory performance could have a material adverse effect on the
Companys business.
  The Company could be exposed to environmental liability related to the disposal of hazardous
materials.
  If the BPE Segments comprehensive energy, infrastructure and productivity Application Software
Provider (ASP) offerings are not widely accepted, the Companys operating results could be
harmed.
  10




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##### Table of Contents




    
    reluctance by enterprises to migrate to an ASP system from more traditional systems in
which the software and related data is hosted and controlled locally by the customer;
    
    the price and performance of the Companys ASP offerings;
    
    the level of customization the BPE Segment is able or willing to offer;
    
    potential adverse publicity about the Company, its services, or the viability,
reliability or security of ASP systems generally from third party reviews, industry analyst
reports, or disparaging statements made by competitors.
  Defects or disruptions in the BPE Segments comprehensive energy, infrastructure and productivity
ASP offerings or its other software offerings could diminish demand for these products and services
and could potentially subject the Company to substantial liability.
    If the BPE Segment were unable to add enhancements and new features to its existing products and
services, or were unable to add acceptable new products and services that kept pace with
competitive or technological developments, the Companys business might be harmed.
  11




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If the BPE Segments security measures were breached, and as a result unauthorized access is
obtained to a customers data, the offerings of the BPE Segment could be perceived as not being
sufficiently secure, customers might curtail or stop using the BPE Segments products and services,
and the BPE Segment could incur significant losses and liabilities.
  Any failure to adequately protect the Companys intellectual property rights could impair the
Companys ability to protect its proprietary technology and its brand.
     12




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Because the BPE Segment recognizes revenue from its ASP offerings over the term of customers
subscription agreements, downturns or upturns in sales may not be reflected immediately in the BPE
Segments operating results.
  Evolving regulation of the Internet may affect the Company adversely.
  The BPE Segment is dependent on the assistance of its customers to complete projects on a timely
basis. If the customer is unable or unwilling to offer assistance, it could affect project
timelines and reduce or slow the collection of energy saving revenues.
  Risks Related to the Companys Real Estate Segment
  The market for purchasing and leasing of commercial real estate is affected by general economic and
market risks.
  
    
    Changes in the national, regional and local economic climate;
    
    Local conditions such as an oversupply of properties or a reduction in demand for properties;
    
    The attractiveness of the properties to prospective tenants;
    
    Competition from other available properties;
    
    Changes in market rental rates; and
    
    The need to periodically repair, renovate and re-lease space.
  13




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The Companys commercial properties could be subject to uninsured losses and condemnation costs.
  Compliance with environmental laws could adversely affect the Company.
  Any failure to sell income-producing properties on a timely basis could adversely affect the
Companys results of operations.
  14




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The Company might not be able to refinance its income-producing properties on a timely basis or on
acceptable terms.
  
 ITEM 1B. UNRESOLVED STAFF COMMENTS
  
 ITEM 2. PROPERTIES
   OWNED SHOPPING CENTERS
  Percentage
    
    
    
    
    
    
    
    
    
    Rental
    
    
    
    
    
    Principalof Square
    
    Calendar
    
    
    
    
    
    Income
    
    
    
    
    
    Amount ofLeasable
    
    Footage
    
    Year(s)
    
    
    
    
    
    Per Leased
    
    Debt
    
    DebtSquare
    
    Leased as of
    
    Placed in
    
    Rental
    
    Square
    
    Service
    
    OutstandingFeet in
    
    April 30,
    
    Service by
    
    Income
    
    Foot
    
    Payments
    
    as of April 30,Location
    
    Acres
    
    Building(s)
    
    2007
    
    Company
    
    2007
    
    2007 (1)
    
    2007 (2)
    
    2007 (3)11459 Old Nashville Hwy.
    
    
    8.0
    
    
    
    51,925
    
    
    
    95
    
    
    
    2006
    
    
    
    $   466,963
    
    
    
    $9.47
    
    
    
    $197,088
    
    
    
    $4,100,000Smyrna, TN (4)380 Blanding Blvd.
    
    
    9.4
    
    
    
    84,180
    
    
    
    100
    
    
    
    2007
    
    
    
    264,000
    
    
    
    3.14
    
    
    
    
    
    
    
    Orange Park, FL (5)2500 Airport Thruway
    
    
    8.0
    
    
    
    87,543
    
    
    
    100
    
    
    
    1980, 1988
    
    
    
    441,286
    
    
    
    5.04
    
    
    
    390,946
    
    
    
    408,335Columbus, GA (6) (7)8102 Blanding Blvd.
    
    
    18.8
    
    
    
    174,220
    
    
    
    96
    
    
    
    1999
    
    
    
    1,638,743
    
    
    
    9.80
    
    
    
    610,238
    
    
    
    7,394,243Jacksonville, FL (8)
 
 (1)
    
    Calculated by dividing fiscal 2007 rental income by leased square feet in building (as
of April 30, 2007).(2)
    
    Includes principal, if applicable, and interest.(3)
    
    The Companys liability for repayment is limited to its interest in the respective
mortgaged properties by exculpatory provisions.(4)
    
    Acquired in July 2006 and originally developed by a third party in 1998. Rental income and debt service amounts are
for the period held during fiscal 2007.(5)
    
    The center in Orange Park, Florida, was originally developed by the Company in 1976,
sold, leased back, and then re-acquired by the Company in February 2007 without debt. This
center was previously classified as a leaseback and presented in the leaseback shopping
center table. Rent expense paid to
the ground owner prior to the acquisition was $216,997 in fiscal 2007. The Company has
entered into a contract to sell the property, at a gain. The contract specifies a closing
date in fiscal 2008. The sale is subject to customary conditions, and there can be no
assurance that the contract will close.(6)
    
    Land is leased, not owned. 15




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(7)
    
    The center in Columbus, Georgia, is owned by Abrams-Columbus Limited Partnership, in
which the Companys subsidiary, Abrams Properties, Inc., serves as general partner and owns
an 80% interest. The Company has entered into a contract to sell the property, at a gain.
The contract specifies a closing date in fiscal 2008. The sale is subject to customary
conditions, and there can be no assurance that the contract will close.(8)
    
    Acquired by the Company in 1999 and originally developed by third parties in 1985.    Lease
    
    
    OptionsAnchor
    
    
    
    
    
    Square
    
    
    Expiration
    
    
    toTenant (1)
    
    Location
    
    
    Footage
    
    
    Date
    
    
    RenewHarbor Freight Tools
    
    Jacksonville, FL
    
    
    12,500
    
    
    
    2012
    
    
    4 for 5 years eachPublix (2)
    
    Jacksonville, FL
    
    
    85,560
    
    
    
    2010
    
    
    6 for 5 years eachOffice Depot
    
    Jacksonville, FL
    
    
    22,692
    
    
    
    2008
    
    
    2 for 5 years eachFood Lion
    
    Smyrna, TN
    
    
    33,000
    
    
    
    2019
    
    
    4 for 5 years each
 
 (1)
    
    A tenant is considered to be an Anchor Tenant if it leases 12,000 square feet or more
for an initial lease term of five years or more.(2)
    
    Anchor tenant has subleased the premises to Floor and Decor Outlets, but remains liable
under the lease until the lease expires.   16




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OWNED OFFICE PROPERTIES
  Percentage
    
    
    
    
    
    
    
    
    
    Rental
    
    
    
    
    
    Principalof Square
    
    Calendar
    
    
    
    
    
    Income
    
    
    
    
    
    Amount ofLeasable
    
    Footage
    
    Year(s)
    
    
    
    
    
    Per Leased
    
    Debt
    
    DebtSquare
    
    Leased as of
    
    Placed in
    
    Rental
    
    Square
    
    Service
    
    OutstandingFeet in
    
    April 30,
    
    Service by
    
    Income
    
    Foot
    
    Payments
    
    as of April 30,Location
    
    Acres
    
    Building(s)
    
    2007
    
    Company
    
    2007
    
    2007 (1)
    
    2007 (2)
    

2007
(3)246 Bullsboro Dr.
    
    
    1.35
    
    
    
    21,000
    
    
    
    94
    
    
    
    2007
    
    
    $
    51,830
    
    
    $
    2.63
    
    
    $
    24,549
    
    
    $
    2,500,000Newnan,
GA (4)1945 The Exchange
    
    
    3.12
    
    
    
    65,880
    
    
    
    100
    
    
    
    1997
    
    
    
    1,354,505
    
    
    
    20.56
    
    
    
    443,571
    
    
    
    4,539,270Atlanta,
GA (5)1501-1523
    
    
    8.82
    
    
    
    121,476
    
    
    
    75
    
    
    
    1997
    
    
    
    1,553,729
    
    
    
    17.05
    
    
    
    538,925
    
    
    
    5,779,170Johnson Ferry Rd.Marietta,
GA (6)
 
 (1)
    
    Calculated by dividing fiscal 2007 rental income by leased square feet in building (as of
April 30, 2007).(2)
    
    Includes principal, if applicable, and interest.(3)
    
    The Companys liability for repayment is limited to its
interest in the respective mortgaged properties by exculpatory
provisions.(4)
    
    Acquired in March 2007, originally developed in 1983, and completely renovated in 2006 by a
third party. Rental income and debt service dollar amounts are for the period held during
fiscal 2007.(5)
    
    Includes the Companys corporate headquarters building of which the Company leases
approximately 25,928 square feet. Rental income includes $537,161 of intercompany rent at a
competitive rate paid by the Company and its operating segments. The building was originally
developed by third parties in 1974 and acquired and re-developed by the Company in 1997.(6)
    
    The Company, through a subsidiary of its Real Estate Segment, is the lessee of 5,304 square
feet of space, under a master lease agreement to satisfy a condition required by the lender.
As a result, as of April 30, 2007, rental income includes $26,531 of intercompany rent at a
competitive rate paid by the Real Estate Segment. The office park was originally developed by
third parties in 1980 and 1985.  Lease
    
    OptionsAnchor
    
    
    
    Square
    
    Expiration
    
    toTenant (1)
    
    Location
    
    Footage
    
    Date
    
    RenewSunTrust Bank
    
    Atlanta, GA
    
    35,788
    
    2008
    
    NoneServidyne, Inc. (2)
    
    Atlanta, GA
    
    25,928
    
    2011
    
    NoneUnited Realty
    
    Newnan, GA
    
    13,286
    
    2014
    
    2 for 5 years each
 
 (1)
    
    A tenant is considered to be an Anchor Tenant if it leases 12,000 square feet or more
for an initial lease term of five years or more.(2)
    
    The Company leases its corporate headquarters office
space from the Real Estate Segment.  LEASEBACK SHOPPING CENTERS
  17




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Square
    
    Calendar Years
    
    Rental
    
    Rental Income
    
    RentFeet in
    
    Placed in Service
    
    Income
    
    per Square Foot
    
    ExpenseLocation
    
    Acres
    
    Building(s)
    
    by Company
    
    2007
    
    2007 (1)
    
    2007Davenport, IA
    
    
    10.0
    
    
    
    84,180
    
    
    
    1977
    
    
    $
    255,308
    
    
    $
    3.03
    
    
    $
    105,203Jacksonville, FL (2)
    
    
    11.6
    
    
    
    97,032
    
    
    
    1979
    
    
    
    303,419
    
    
    
    3.13
    
    
    
    258,858
 
 (1)
    
    Calculated by dividing fiscal 2007 rental income by square feet in building (as of April
30, 2007).(2)
    
    The Company has entered into a contract to sell the property, at a gain. The contract
specifies a closing date in fiscal 2008. The sale is subject to customary conditions, and
there can be no assurance that the contract will close.   REAL ESTATE HELD FOR FUTURE DEVELOPMENT, LEASE OR SALE
   Calendar YearDevelopment
    
    IntendedLocation
    
    Acres
    
    Completed
    
    Use (1)Mundy Mill Road
    
    5.3
    
    1987
    
    Commerical development pads orOakwood, GA
    
    
    
    
    
    up to four outlotsNorth Cleveland Avenue
    
    0.73
    
    1993
    
    One outlotNorth Ft. Myers, FL
 
 (1)
    
    Outlot as used herein refers to a small parcel of land platted separately from a shopping
center parcel, which is generally sold to, leased to, or developed as, a fast-food restaurant,
bank, small retail shops, or other commercial use.   18




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ITEM 3. LEGAL PROCEEDINGS
  
 ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
  
 PART II
 
 ITEM 5. MARKET FOR REGISTRANTS COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER
PURCHASES OF EQUITY SECURITIES
 DIVIDENDS PAIDMARKET PRICES
    
    PER SHAREFISCAL 2007
    
    FISCAL 2006
    
    2007
    
    2006HIGH
    
    LOW
    
    HIGH
    
    LOWTRADE
    
    TRADE
    
    TRADE
    
    TRADEFirst Quarter
    
    $
    4.62
    
    
    $
    4.00
    
    
    $
    10.44
    
    
    $
    3.91
    
    
    $
    0.036
    
    
    $
    0.036Second Quarter
    
    
    4.28
    
    
    
    3.85
    
    
    
    8.07
    
    
    
    4.35
    
    
    
    0.036
    
    
    
    0.036Third Quarter
    
    
    5.97
    
    
    
    3.92
    
    
    
    5.15
    
    
    
    3.98
    
    
    
    0.036
    
    
    
    0.036Fourth Quarter
    
    
    5.46
    
    
    
    4.05
    
    
    
    6.00
    
    
    
    4.01
    
    
    
    0.036
    
    
    
    0.036
   19




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SHAREHOLDER RETURN
  
 4/30/02
    
    
    
    4/30/03
    
    
    
    4/30/04
    
    
    
    4/30/05
    
    
    
    4/30/06
    
    
    
    4/30/07Servidyne, Inc.
    
    
    $
    100.00
    
    
    
    $
    78.82
    
    
    
    $
    84.11
    
    
    
    $
    102.77
    
    
    
    $
    111.82
    
    
    
    $
    112.94NASDAQ Stock Market (U.S. Companies)
    
    
    $
    100.00
    
    
    
    $
    84.47
    
    
    
    $
    113.81
    
    
    
    $
    114.26
    
    
    
    $
    140.77
    
    
    
    $
    154.02Dow Jones U.S. Business Support
Services Index *
    
    
    $
    100.00
    
    
    
    $
    74.51
    
    
    
    $
    95.46
    
    
    
    $
    90.53
    
    
    
    $
    115.63
    
    
    
    $
    131.54NASDAQ
Retail Trade Stocks *
    
    
    $
    100.00
    
    
    
    $
    87.40
    
    
    
    $
    116.60
    
    
    
    $
    133.90
    
    
    
    $
    158.00
    
    
    
    $
    165.50
 
 *
    
    The Company has selected a different index to use comparative purposes for the fiscal year ended
April 30, 2007. In the past, the Company has used the NASDAQ Retail Trade Stocks Index; however,
the Company believes that the Dow Jones U.S. Business Support Services Index is now more closely
related to its overall business, and accordingly will no longer include the NASDAQ Retail Trade
Stocks Index in future cumulative total shareholder return graphs and tables. 20




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##### Table of Contents



ITEM 6. SELECTED FINANCIAL DATA
  Years Ended April 30,
    
    2007
    
    2006 (1)
    
    2005 (1)
    
    2004 (1)
    
    2003 (1)Net Earnings (Loss) (2)
    
    $
    966,626
    
    
    $
    525,766
    
    
    $
    1,800,358
    
    
    $
    (1,850,126
    )
    
    $
    (1,073,524
    )Net Loss  Continuing Operations
    
    $
    (1,008,014
    )
    
    $
    (347,439
    )
    
    $
    (1,439,570
    )
    
    $
    (2,840,901
    )
    
    $
    (2,339,131
    )Net Earnings  Discontinued
Operations
    
    $
    1,974,640
    
    
    $
    873,205
    
    
    $
    3,239,928
    
    
    $
    990,775
    
    
    $
    1,265,607Net Earnings (Loss)
Per Share (2)
    
    $
    .27
    
    
    $
    .15
    
    
    $
    .51
    
    
    $
    (.56
    )
    
    $
    (.33
    )Net Loss Per Share 
Continuing Operations
    
    $
    (.29
    )
    
    $
    (.10
    )
    
    $
    (.41
    )
    
    $
    (.86
    )
    
    $
    (.72
    )Net Earnings Per Share 
Discontinued Operations
    
    $
    .56
    
    
    $
    .25
    
    
    $
    .92
    
    
    $
    .30
    
    
    $
    .39Consolidated Revenues 
Continuing Operations
    
    $
    19,372,886
    
    
    $
    18,226,503
    
    
    $
    21,147,042
    
    
    $
    11,810,297
    
    
    $
    10,055,211Consolidated
Revenues  Discontinued Operations
    
    $
    
    
    
    $
    6,516,684
    
    
    $
    13,526,480
    
    
    $
    51,636,859
    
    
    $
    78,069,309Weighted Average Shares
Outstanding at Year-End (3)
    
    
    3,529,509
    
    
    
    3,531,089
    
    
    
    3,526,041
    
    
    
    3,292,137
    
    
    
    3,231,440Cash Dividends Paid Per Share (3)
    
    $
    .14
    
    
    $
    .14
    
    
    $
    .29
    
    
    $
    .14
    
    
    $
    .14Shareholders Equity
    
    $
    21,460,211
    
    
    $
    20,946,748
    
    
    $
    20,913,411
    
    
    $
    19,997,527
    
    
    $
    21,257,952Shareholders Equity Per Share
    
    $
    6.08
    
    
    $
    5.93
    
    
    $
    5.93
    
    
    $
    6.07
    
    
    $
    6.58Working Capital
    
    $
    5,724,082
    
    
    $
    8,352,086
    
    
    $
    10,450,202
    
    
    $
    7,207,333
    
    
    $
    7,638,091Depreciation and Amortization
 Continuing Operations (4)
    
    $
    1,714,973
    
    
    $
    1,352,811
    
    
    $
    1,443,399
    
    
    $
    1,606,838
    
    
    $
    1,270,153Total Assets
    
    $
    57,393,421
    
    
    $
    52,410,256
    
    
    $
    57,067,172
    
    
    $
    61,876,019
    
    
    $
    73,797,098Income-Producing Properties and
Property and Equipment, net (5)
    
    $
    31,961,029
    
    
    $
    21,550,117
    
    
    $
    21,511,672
    
    
    $
    21,528,503
    
    
    $
    21,974,453Income-Producing
Properties  Discontinued Operations
    
    $
    
    
    
    $
    18,004
    
    
    $
    3,738,200
    
    
    $
    8,705,641
    
    
    $
    21,676,397Long-Term Debt (6)
    
    $
    25,138,741
    
    
    $
    19,603,408
    
    
    $
    20,598,826
    
    
    $
    19,976,471
    
    
    $
    18,813,391Long-term
Debt  Discontinued Operations
    
    $
    
    
    
    $
    1,686,134
    
    
    $
    4,755,781
    
    
    $
    7,435,182
    
    
    $
    14,709,923Total Liabilities
    
    $
    35,933,210
    
    
    $
    31,463,508
    
    
    $
    36,153,761
    
    
    $
    41,878,492
    
    
    $
    52,539,146Variable Rate Debt (6)(7)(8)
    
    $
    3,400,000
    
    
    $
    930,000
    
    
    $
    1,000,000
    
    
    $
    1,000,000
    
    
    $
    Return on Average
Shareholders Equity (2)
    
    
    4.6
    %
    
    
    2.5
    %
    
    
    8.8
    %
    
    
    (9.0
    )%
    
    
    (4.9
    )%
 (1)
    
    Results have been reclassified from prior years Annual Report on Form 10-K pursuant to SFAS 144.(2)
    
    Includes continuing operations, discontinued operations, and extraordinary items, if any.(3)
    
    Adjusted for 10% stock dividend.(4)
    
    Depreciation and amortization for certain sold income-producing properties have been
reclassified as discontinued operations and, therefore, are not included for all periods
presented.(5)
    
    Does not include property held for sale, real estate held for future development or sale, or
sold income-producing properties that have been reclassified as assets of discontinued
operations.(6)
    
    Does not include mortgage debt associated with sold income-producing properties that have been reclassified as discontinued operations.(7)
    
    Includes short-term and long-term debt.(8)
    
    Variable rate interim debt of $2.5 million was replaced with fixed-rate permanent debt
subsequent to fiscal 2007 year-end. See NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  Note 20.
Subsequent Events.
 
 ITEM 7. MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
   Accounting for the
Impairment or Disposal of Long- Lived Assets,
 21




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CHART A
 Years Ended
    
    
    
    
    
    
    
    
    
    Years EndedApril 30,
    
    Increase
    
    April 30,
    
    (Decrease)2007
    
    2006
    
    Amount
    
    Percent
    
    2006
    
    2005
    
    Amount
    
    PercentBPE (1)
    
    $
    12,830
    
    
    $
    11,612
    
    
    $
    1,218
    
    
    
    10
    
    
    $
    11,612
    
    
    $
    13,075
    
    
    $
    (1,463
    )
    
    
    (11
    )Real Estate (2)
    
    
    6,191
    
    
    
    6,108
    
    
    
    83
    
    
    
    1
    
    
    
    6,108
    
    
    
    7,913
    
    
    
    (1,805
    )
    
    
    (23
    )Total
    
    $
    19,021
    
    
    $
    17,720
    
    
    $
    1,301
    
    
    
    7
    
    
    $
    17,720
    
    
    $
    20,988
    
    
    $
    (3,268
    )
    
    
    (16
    )
 
 (1)
    
    In the current year, fiscal 2007, BPE revenues increased approximately $1,218,000 or
10%, compared to the same period in fiscal 2006, primarily due to:
 a)
    
    an increase in revenues related to energy management services of
approximately $666,000 or 59%;b)
    
    an increase in revenues related to the  Companys
productivity solution services of approximately $255,000 or
10%; andc)
    
    an increase in revenues related to energy saving projects of
approximately $219,000 or 3%.
  a)
    
    the revenues of approximately $2,607,000 from one large
energy savings project in the
education and government sector and one large energy savings project in the retail sector being
included in fiscal 2005; andb)
    
    a net decrease in revenues from legacy proprietary software products of
$66,000;partially offset by:
 22




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##### Table of Contents



c)
    
    the recognition of approximately $660,000 in revenues in the first
quarter of fiscal 2006 from a consulting services contract that was substantially
performed in prior periods and did not have any current year associated costs and
expenses (See Chart B);d)
    
    an increase in revenues related to energy management services of
approximately $261,000; ande)
    
    an increase in revenues related to the  Companys
productivity solution services of approximately $96,000.
 (2)
    
    In the current year, fiscal 2007, Real Estate revenues increased approximately $83,000
or 1%, compared to the same period in fiscal 2006, primarily due to:
 a)
    
    an increase in rental revenue of approximately $467,000 as the result of
the acquisition of a shopping center in Smyrna, Tennessee, in July 2006;b)
    
    an increase in rental revenue as the result of leasing of the Companys
existing properties of approximately $143,000;c)
    
    one-time revenues of $150,000 in conjunction with the sale of the
Companys former leaseback interest in a shopping center located in Richfield,
Minnesota, in March 2007; andd)
    
    an increase in rental revenue of approximately $52,000 as the result of
the acquisition of an office building in Newnan, Georgia, in March 2007;partially offset by:e)
    
    one-time revenues of $425,000 in conjunction with the sale of the
Companys former leaseback interest in a shopping center located in Bayonet Point,
Florida, in April 2006; andf)
    
    an associated decrease in leaseback rental income of approximately
$341,000 as a result of the sales of the Companys former leaseback interests
mentioned in (c) and (e) above.
  a)
    
    one-time revenues of $2,250,000 in fiscal 2005, in conjunction with the
sale of the Companys former leaseback interest in a shopping center in Minneapolis,
Minnesota, in September 2004; andb)
    
    an associated decrease in leaseback income of approximately $141,000,
related to the leaseback sale mentioned in (a) above;partially offset by:c)
    
    one-time revenues of $425,000 in conjunction with the sale of the
Companys former leaseback interest in a shopping center in Bayonet Point, Florida,
in April 2006; andd)
    
    an increase in rental revenue in fiscal 2006 of approximately $179,000
related to increased occupancy.
   23




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##### Table of Contents



CHART B
 Percent ofSegment Revenuesfrom Continuing OperationsYears Ended
    
    
    for Years EndedApril 30,
    
    
    April 30,2007
    
    
    2006
    
    
    2005
    
    
    2007
    
    
    2006
    
    
    2005BPE (1)
    
    $
    8,142
    
    
    $
    6,736
    
    
    $
    8,421
    
    
    
    63
    
    
    
    58
    
    
    
    64Real Estate (2)
    
    
    3,839
    
    
    
    3,888
    
    
    
    4,095
    
    
    
    62
    
    
    
    64
    
    
    
    52Total
    
    $
    11,981
    
    
    $
    10,624
    
    
    $
    12,516
    
    
    
    63
    
    
    
    60
    
    
    
    60
 
 (1)
    
    In the current year, fiscal 2007, BPE costs and expenses as a
percentage of revenues,
increased compared to the same period of fiscal 2006, primarily due to: a)
    
    increased costs related to the conversion of customers to the Companys
Web/wireless proprietary facility management software and the amortization of
capitalized software costs; andb)
    
    the recognition of costs related to one energy savings project job which
had a lower gross margin compared to other such jobs.
 In the prior year, fiscal 2006, costs and expenses on a dollar basis decreased approximately
$1,685,000 or 20%, compared to the same period of fiscal 2005,
primarily as the result of the
corresponding decrease in revenues. On a percentage basis, costs and expenses decreased for
fiscal 2006, compared to fiscal 2005, primarily as a result of:
 a)
    
    improved operational efficiencies on energy savings projects;b)
    
    better utilization of capacity in energy management services; andc)
    
    the recognition of revenue from a consulting services contract in the
first quarter of fiscal 2006, that had no current year costs and expenses.
 (2)
    
    In the current year, fiscal 2007, Real Estate costs and expenses on a dollar basis from continuing
operations decreased $49,000 or 1%, compared to the same period of fiscal 2006, primarily
due to:
 a)
    
    the absence of lease costs of $288,000 as the result of the sale of the
Companys former leaseback interest in a shopping center located in Bayonet Point,
Florida, in April 2006;b)
    
    the reduction of lease costs of $46,000 as the result of the sale of the
Companys former leaseback interest in a shopping center located in Richfield,
Minnesota, in March 2007; andc)
    
    the scheduled reduction of lease costs of $89,000 pursuant to a lease
agreement provision for the Companys leaseback shopping center located in
Davenport, Iowa;partially offset by:d)
    
    an increase in rental operating costs and expenses of approximately
$304,000 as the result of the acquisition of the shopping center located in Smyrna,
Tennessee, in July 2006;e)
    
    an increase in rental operating costs and expenses of approximately
$44,000 as the result of the acquisition of the office building located in Newnan,
Georgia, in March 2007; andf)
    
    an increase in operating expenses of approximately $36,000 primarily for
marketing and leasing expenses at two of the Companys income producing properties.
 In the prior year, fiscal 2006, Real Estate costs and expenses on a dollar basis decreased $207,000 or
5%, compared to the same period of fiscal 2005, primarily due to the absence of lease costs
of $115,000 in fiscal 2006
 24




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##### Table of Contents



as the result of the sale of the Companys former leaseback interest in a shopping center
located in Minneapolis, Minnesota, in September 2004.
 In the prior year, fiscal 2006, Real Estate costs and expenses as a percentage of revenues were higher,
compared to fiscal 2005, primarily due to the absence of the one-time revenues of $2,250,000
that were included in fiscal 2005, as a result of the sale of the Companys former leaseback
interest in a shopping center in Minneapolis, Minnesota, in October 2004; the costs of the
sale were $42,115.
   
 CHART C
 Percent ofSegment RevenuesYears Ended
    
    
    for Years EndedApril 30,
    
    
    April 30,2007
    
    
    2006
    
    
    2005
    
    
    2007
    
    
    2006
    
    
    2005BPE (1)
    
    $
    4,645
    
    
    $
    4,417
    
    
    $
    4,415
    
    
    
    36
    
    
    
    38
    
    
    
    34Real Estate (2)
    
    
    815
    
    
    
    976
    
    
    
    1,401
    
    
    
    13
    
    
    
    16
    
    
    
    18Parent (3)
    
    
    3,732
    
    
    
    3,297
    
    
    
    3,516
    
    
    
    20
    
    
    
    19
    
    
    
    17Total
    
    $
    9,192
    
    
    $
    8,690
    
    
    $
    9,332
    
    
    
    48
    
    
    
    49
    
    
    
    44
 
 (1)
    
    In the current year, fiscal 2007, BPE SG&A expenses as a percentage of revenues from
continuing operations decreased, compared to the same period of fiscal 2006, primarily
because the increase in revenues did not require a proportional increase in SG&A expenses.In the current year, fiscal 2007, on a dollar basis, BPE SG&A expenses from continuing
operations increased $228,000 or 5%, compared to the same period of fiscal 2006, primarily
due to expenses associated with the Companys enhanced sales and marketing efforts.(2)
    
    In the current year, fiscal 2007, compared to the same period
in fiscal 2006, Real Estate SG&A
expenses on a dollar and percentage basis decreased $161,000 or 16%, primarily as a result
of:
 a)
    
    a decrease in operating expenses of $64,000 related to the Companys real
estate held for future development;b)
    
    a decrease in legal fees of $22,000; andc)
    
    a decrease of $77,000 in personnel related costs.
 In the prior year, fiscal 2006, Real Estate SG&A expenses on a dollar and percentage basis were $425,000
or 30% lower, compared to the same period of fiscal 2005, primarily due to the legal costs
and net settlement costs that were incurred in fiscal 2005, related to the conclusion of
arbitration proceedings.
 25




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##### Table of Contents



(3)
    
    In the current year, fiscal 2007, compared to the same period
in fiscal 2006, Parent SG&A
expenses on a dollar basis increased $435,000 or 13%, as a result of:
 a)
    
    an increase in consulting fees of approximately $111,000 primarily
related to the Companys enhanced sales and marketing efforts;b)
    
    an increase in incentive compensation costs of approximately
$211,000
as the result of the successful achievement of the Company-wide earnings and performance
goals in fiscal 2007;c)
    
    an increase in legal fees of approximately $128,000 related to the
ongoing pursuit of an insurance claim by the Company; andd)
    
    a one-time, non-cash charge in the fourth quarter of approximately
$155,000 for the settlement of a cash surrender value of a life
insurance policy resulting from the death of
a former officer and director of the Company.
 In the prior year, fiscal 2006, Parent SG&A expenses on a dollar basis decreased $219,000 or 6%,
compared to the same period in 2005, primarily due to lower incentive compensation costs.
    Fiscal 2007
    Fiscal 2006
  26




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##### Table of Contents



Fiscal 2005
   Fiscal 2007
   Fiscal 2006
     Fiscal 2005
   Fiscal 2007
  27




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##### Table of Contents



Fiscal 2006
  Fiscal 2005
    Fiscal 2007
  Fiscal 2006
  Fiscal 2005
    a)
    
    cash payments of approximately $472,000 during fiscal 2007 related to the
incentive compensation resulting from the successful achievement of
Company-wide earnings and performance goals in fiscal 2006;b)
    
    an increase in current assets of $129,000, primarily related to prepaid property
taxes; andc)
    
    current year losses from continuing operations of
approximately $1,008,000;partially offset by:
 28




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##### Table of Contents



d)
    
    a decrease in note receivables of approximately $892,000 primarily related to
receipt of payments pursuant to a consulting services contract.
  a)
    
    the deposit with a qualified intermediary of cash proceeds of approximately
$3,862,000 generated by sales of real estate, which qualified the sales for federal income tax
deferrals under the Internal Revenue Code Section 1031;b)
    
    additions to income-producing properties of approximately $319,000, primarily
related to tenant and building improvements;c)
    
    additions to property and equipment of approximately $186,000, primarily
related to the purchase of three vehicles and computer hardware for internal use in the BPE Segment;d)
    
    additions to intangibles of approximately $831,000, primarily related to the
software development costs for one of the Companys productivity
solution offerings; ande)
    
    acquisitions costs, net of escrowed cash that was deposited with a qualified
intermediary, of approximately $5,119,000, related to the purchase of a shopping center
in Smyrna, Tennessee, an office building in Newnan, Georgia, and a shopping center
located in Orange Park, Florida;partially offset by:f)
    
    the release of approximately $419,000 in sales proceeds previously held in
escrow for the intended purpose of purchasing a replacement property to qualify the
sale of the Companys former interest in a leaseback property located in Bayonet Point,
Florida, for tax deferral under Internal Revenue Code Section 1031. In May 2006, the
Company elected not to purchase a replacement property and the proceeds were released
to the Company; andg)
    
    proceeds of approximately $2,709,000 from the sale of the Companys former
manufacturing facility located in Atlanta, Georgia, in
August 2006, and the sale of an
outlot located in North Fort Myers, Florida, in April 2007.
  (a)
    
    net proceeds of $1,500,000 from the permanent loan of $4,100,000 on the
Companys shopping center located in Smyrna, Tennessee, which replaced the interim
bank loan of $2,600,000; and(b)
    
    proceeds of $2,500,000 from an interim bank loan on the Companys office
building located in Newnan, Georgia;partially offset by:(c)
    
    scheduled principal payments on mortgage notes and other long-term debt
of approximately $930,000; and(d)
    
    payment of four regular quarterly cash dividends to shareholders totaling
approximately $509,000.
   Secured letter of credit
  29




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##### Table of Contents



Repurchases of Common Stock
    Payments Due by PeriodLess than
    
    
    
    
    
    
    
    
    
    More thanContractual Obligations
    
    Total
    
    1 Year
    
    1 - 3 Years
    
    3 - 5 Years
    
    5 YearsMortgage notes payable (1)
    
    
    32,921,556
    
    
    $
    2,402,547
    
    
    $
    6,410,140
    
    
    $
    8,537,730
    
    
    $
    15,571,139Operating leases (2)
    
    
    1,606,377
    
    
    
    257,390
    
    
    
    495,384
    
    
    
    495,384
    
    
    
    358,219Other long-term debt (3)
    
    
    1,980,488
    
    
    
    407,170
    
    
    
    354,680
    
    
    
    1,218,638
    
    
    
    Total
    
    $
    36,508,421
    
    
    $
    3,067,107
    
    
    $
    7,260,204
    
    
    $
    10,251,752
    
    
    $
    15,929,358
 
 (1)
    
    Regularly scheduled principal amortization and interest payments and final payments due
upon maturity. In computing interest expense, the Company used the applicable contractual
rate. All, except one, of the mortgage notes payable are fixed rate debt instruments. The
remaining note is a variable rate debt which was replaced with a permanent fixed-rate loan
subsequent to year end. In computing interest expense related to this variable rate
interim debt, a coupon rate of 7.07% (30-day LIBOR rate at April 30, 2007, plus 1.75%) was
used for all periods. The Companys liability for repayment of each of these mortgages is
limited to its interest in the respective mortgaged properties by exculpatory provisions.(2)
    
    Future minimum rental payments on leaseback shopping centers and ground leases. The
Companys liability for payment under each of the leases is limited to its interest in the
perspective leasebacks and ground leases.(3)
    
    In computing interest expense related to variable rate debt, a coupon rate of 9.75%
(prime rate at April 30, 2007, plus 1.5%) was used for all periods, and for fixed rate
debt, the applicable contractual rate was used for all periods.     30




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Revenue Recognition
 Revenue Recognition
    31




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Income-Producing Properties and Property and Equipment
   Valuation of Goodwill and Other Intangible Assets
  Income Taxes
  32




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Discontinued Operations
 Accounting for the Impairment or Disposal of Long-Lived Assets,
 Recent Accounting Pronouncements
 Accounting for Uncertainty in Income Taxes Accounting for Income
Taxes
     33




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ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
   Expected Maturity DateFiscal Year Ending April 30(Dollars in Thousands)EstimatedThere-
    
    
    
    
    
    Fair2008
    
    2009
    
    2010
    
    2011
    
    2012
    
    after
    
    Total
    
    ValueFixed rate debt
    
    $
    1,035
    
    
    
    520
    
    
    
    562
    
    
    
    5,948
    
    
    
    396
    
    
    
    14,312
    
    
    $
    22,773
    
    
    $
    22,359Average interest rate
    
    
    6.8
    %
    
    
    6.8
    %
    
    
    6.8
    %
    
    
    7.2
    %
    
    
    6.7
    %
    
    
    6.6
    %Variable rate debt (1)
    
    $
    
    
    
    
    2,500
    
    
    
    
    
    
    
    
    
    
    
    900
    
    
    
    
    
    
    
    3,400
    
    
    $
    3,400
 (1)
    
    Interest on variable rate debt of $900,000 is based on prime rate plus 1.5%, and interest
on the variable rate interim debt of $2.5 million is based on LIBOR plus 175 basis points.  34




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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
 
    Share-Based Payment
  
 35




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CONSOLIDATED BALANCE SHEETS
 April 30,2007
    
    2006ASSETSCURRENT ASSETS:Cash and cash equivalents (Note 3)
    
    $
    5,662,894
    
    
    $
    7,329,805Restricted cash (Note 3)
    
    
    
    
    
    
    418,594Receivables:Trade accounts and notes, net of allowance for doubtful accounts of
$10,104 in 2007 and $11,061 in 2006
    
    
    1,385,020
    
    
    
    889,798Contracts, net of allowance for doubtful accounts of $4,609 in 2007, and $0
in 2006, including retained amounts of $200,447 in 2007 and $171,303 in 2006 (Note 5)
    
    
    830,080
    
    
    
    1,519,509Costs and earnings in excess of billings (Note 5)
    
    
    265,540
    
    
    
    286,824Notes receivable
    
    
    10,500
    
    
    
    902,505Deferred income taxes (Note 10)
    
    
    443,030
    
    
    
    622,927Other (Note 2)
    
    
    1,613,035
    
    
    
    966,454Total current assets
    
    
    10,210,099
    
    
    
    12,936,416INCOME-PRODUCING PROPERTIES, net (Notes 6 and 8)
    
    
    31,961,029
    
    
    
    20,706,913PROPERTY AND EQUIPMENT, net (Note 7)
    
    
    838,886
    
    
    
    843,204RESTRICTED CASH (Note 3)
    
    
    
    
    
    
    3,241,310ASSETS OF DISCONTINUED OPERATIONS (Note 4)
    
    
    
    
    
    
    61,419OTHER ASSETS:Real estate held for future development or sale
    
    
    1,124,850
    
    
    
    1,925,427Intangible assets, net (Note 17)
    
    
    3,940,418
    
    
    
    3,065,961Goodwill
    
    
    5,458,717
    
    
    
    5,458,717Other (Note 2)
    
    
    3,859,422
    
    
    
    4,170,889Total assets
    
    $
    57,393,421
    
    
    $
    52,410,256LIABILITIES AND SHAREHOLDERS EQUITYCURRENT LIABILITIES:Trade and subcontractors payables, including retained amounts
of $63,541 in 2007 and $20,988 in 2006
    
    $
    635,308
    
    
    $
    705,647Accrued expenses
    
    
    2,011,711
    
    
    
    2,013,360Accrued incentive compensation
    
    
    584,416
    
    
    
    471,619Billings in excess of costs and earnings (Note 5)
    
    
    219,305
    
    
    
    211,676Liabilities of discontinued operations (Note 4)
    
    
    
    
    
    
    253,392Current maturities of long-term debt
    
    
    1,035,277
    
    
    
    928,636Total current liabilities
    
    
    4,486,017
    
    
    
    4,584,330DEFERRED INCOME TAXES (Note 10)
    
    
    4,233,498
    
    
    
    3,710,599LIABILITIES OF DISCONTINUED OPERATIONS (Note 4)
    
    
    
    
    
    
    1,686,134OTHER LIABILITIES
    
    
    2,074,954
    
    
    
    1,879,037MORTGAGE NOTES PAYABLE, less current maturities (Note 8)
    
    
    23,963,741
    
    
    
    18,120,408OTHER LONG-TERM DEBT, less current maturities (Note 9)
    
    
    1,175,000
    
    
    
    1,483,000Total liabilities
    
    
    35,933,210
    
    
    
    31,463,508COMMITMENTS
AND CONTINGENCIES (Notes 8, 9, 18, and 20)SHAREHOLDERS EQUITY:Common
stock, $1 par value; 5,000,000 shares authorized; 
3,695,336 issued and 3,527,070 outstanding at April 30, 2007,
3,695,336 issued and 3,532,180 outstanding at April 30, 2006
    
    
    3,695,336
    
    
    
    3,695,336Additional paid-in capital
    
    
    4,875,160
    
    
    
    4,803,133Deferred stock compensation
    
    
    
    
    
    
    (4,420
    )Retained earnings
    
    
    13,684,779
    
    
    
    13,227,076Treasury stock (common shares) of 168,266 in 2007 and 163,156 in 2006
    
    
    (795,064
    )
    
    
    (774,377
    )Total shareholders equity
    
    
    21,460,211
    
    
    
    20,946,748Total liabilities and shareholders equity
    
    $
    57,393,421
    
    
    $
    52,410,256
 See accompanying notes to
consolidated financial statements 36




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##### Table of Contents



CONSOLIDATED STATEMENTS OF OPERATIONS
 Years Ended April 30,2007
    
    2006
    
    2005REVENUES:Building Performance Expert
    
    $
    12,829,553
    
    
    $
    11,611,479
    
    
    $
    13,074,855Rental income
    
    
    6,190,667
    
    
    
    6,107,751
    
    
    
    7,912,897Interest income
    
    
    262,363
    
    
    
    181,984
    
    
    
    79,436Other income
    
    
    90,303
    
    
    
    325,289
    
    
    
    79,85419,372,886
    
    
    
    18,226,503
    
    
    
    21,147,042COSTS AND EXPENSES:Building Performance Expert
    
    
    8,142,049
    
    
    
    6,735,464
    
    
    
    8,421,559Rental property operating expenses, excluding interest
    
    
    3,839,066
    
    
    
    3,888,482
    
    
    
    4,094,72511,981,115
    
    
    
    10,623,946
    
    
    
    12,516,284Selling, general and administrative expenses
    
    
    9,192,082
    
    
    
    8,689,499
    
    
    
    9,331,313Loss on extinguishment of debt
    
    
    
    
    
    
    
    
    
    
    218,071Interest costs incurred
    
    
    1,615,558
    
    
    
    1,401,734
    
    
    
    1,605,78522,788,755
    
    
    
    20,715,179
    
    
    
    23,671,453GAINS ON
SALE OF REAL ESTATE (Note 16), net of costs of sales
of $1,094,679 in 2007, $1,895,697 in 2006, and $324,379 in 2005
    
    
    1,880,321
    
    
    
    1,928,290
    
    
    
    190,621LOSS FROM CONTINUING OPERATIONSBEFORE INCOME TAXES
    
    
    (1,535,548
    )
    
    
    (560,386
    )
    
    
    (2,333,790
    )INCOME TAX BENEFIT (Note 10):Current
    
    
    (20,574
    )
    
    
    46,505
    
    
    
    Deferred
    
    
    (506,960
    )
    
    
    (259,452
    )
    
    
    (894,220
    )(527,534
    )
    
    
    (212,947
    )
    
    
    (894,220
    )LOSS FROM CONTINUING OPERATIONS
    
    
    (1,008,014
    )
    
    
    (347,439
    )
    
    
    (1,439,570
    )DISCONTINUED OPERATIONS (Note 4):(Loss) earnings from discontinued operations, adjusted
for applicable income tax (benefit) expense of ($113,509),
$9,588, and ($180,770), respectively
    
    
    (185,200
    )
    
    
    15,647
    
    
    
    (370,043
    )Gain on sale of real estate income-producing properties, adjusted
for applicable income tax expense of $1,323,773, $525,600
and $1,977,390, respectively
    
    
    2,159,840
    
    
    
    857,558
    
    
    
    3,609,971EARNINGS FROM DISCONTINUED
OPERATIONS
    
    
    1,974,640
    
    
    
    873,205
    
    
    
    3,239,928NET EARNINGS
    
    $
    966,626
    
    
    $
    525,766
    
    
    $
    1,800,358NET EARNINGS (LOSS) PER SHARE (Note 13):From continuing operations  basic and diluted
    
    $
    (.29
    )
    
    $
    (.10
    )
    
    $
    (.41
    )From discontinued operations  basic and diluted
    
    
    .56
    
    
    
    .25
    
    
    
    .92Net earnings per share  basic and diluted
    
    $
    .27
    
    
    $
    .15
    
    
    $
    .51
 See accompanying notes to consoidated financial statements.
 37




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##### Table of Contents



CONSOLIDATED STATEMENTS OF SHAREHOLDERS EQUITY
 Additional
    
    DeferredCommon Stock
    
    Paid-In
    
    Stock
    
    Retained
    
    TreasuryShares
    
    Amount
    
    Capital
    
    Compensation
    
    Earnings
    
    Stock
    
    TotalBALANCES at April 30, 2004
    
    
    3,327,628
    
    
    $
    3,327,628
    
    
    $
    2,963,874
    
    
    $
    (26,855
    )
    
    $
    14,412,663
    
    
    $
    (679,783
    )
    
    $
    19,997,527Net earnings
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1,800,358
    
    
    
    
    
    
    
    1,800,358Common stock issued
    
    
    29,973
    
    
    
    29,973
    
    
    
    104,108
    
    
    
    (39,175
    )
    
    
    
    
    
    
    
    
    
    
    94,906Stock compensation expense
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    51,868
    
    
    
    
    
    
    
    (5,159
    )
    
    
    46,709Cash
dividends declared  $.29 per
share (adjusted for subsequent stock dividend)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (1,026,089
    )
    
    
    
    
    
    
    (1,026,089
    )BALANCES at April 30, 2005
    
    
    3,357,601
    
    
    
    3,357,601
    
    
    
    3,067,982
    
    
    
    (14,162
    )
    
    
    15,186,932
    
    
    
    (684,942
    )
    
    
    20,913,411Net earnings
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    525,766
    
    
    
    
    
    
    
    525,766Common stock issued
    
    
    1,800
    
    
    
    1,800
    
    
    
    6,660
    
    
    
    (8,460
    )
    
    
    
    
    
    
    
    
    
    
    Stock compensation expense
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    18,202
    
    
    
    
    
    
    
    (1,871
    )
    
    
    16,331Stock option exercise
    
    
    732
    
    
    
    732
    
    
    
    2,196
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    2,928Cash
dividends declared 
$.14 per share (adjusted for
subsequent stock dividend)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (511,688
    )
    
    
    
    
    
    
    (511,688
    )Stock
dividend declared 
10% at market value
on date declared
    
    
    335,203
    
    
    
    335,203
    
    
    
    1,726,295
    
    
    
    
    
    
    
    (1,973,934
    )
    
    
    (87,564
    )
    
    
    BALANCES at April 30, 2006
    
    
    3,695,336
    
    
    
    3,695,336
    
    
    
    4,803,133
    
    
    
    (4,420
    )
    
    
    13,227,076
    
    
    
    (774,377
    )
    
    
    20,946,748Net earnings
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    966,626
    
    
    
    
    
    
    
    966,626Common stock acquired
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (19,747
    )
    
    
    (19,747
    )Stock compensation expense
    
    
    
    
    
    
    
    
    
    
    72,027
    
    
    
    4,420
    
    
    
    
    
    
    
    (940
    )
    
    
    75,507Cash
dividends declared 
$.144 per share
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (508,923
    )
    
    
    
    
    
    
    (508,923
    )BALANCES at April 30, 2007
    
    
    3,695,336
    
    
    $
    3,695,336
    
    
    $
    4,875,160
    
    
    $
    
    
    
    $
    13,684,779
    
    
    $
    (795,064
    )
    
    $
    21,460,211
 See accompanying notes to consolidated financial statements.
 38




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##### Table of Contents



CONSOLIDATED STATEMENTS OF CASH FLOWS
 Fiscal Year Ended2007
    
    2006
    
    2005Cash flows from operating activities:Net earnings
    
    $
    966,626
    
    
    $
    525,766
    
    
    $
    1,800,358Earnings from discontinued operations, net of tax
    
    
    (1,974,640
    )
    
    
    (873,205
    )
    
    
    (3,239,928
    )Adjustments to reconcile net earnings to net
cash (used in) provided by operating activities:Gain on sale of real estate
    
    
    (1,880,321
    )
    
    
    (1,928,291
    )
    
    
    (190,621
    )Depreciation and amortization
    
    
    1,714,973
    
    
    
    1,352,811
    
    
    
    1,443,399Deferred tax expense (benefit)
    
    
    (506,960
    )
    
    
    180,474
    
    
    
    853,058Stock compensation expense
    
    
    75,507
    
    
    
    16,331
    
    
    
    46,709Cash surrender value
    
    
    66,542
    
    
    
    (121,110
    )
    
    
    (112,879
    )Straight-line rent
    
    
    (38,264
    )
    
    
    (44,568
    )
    
    
    (165,188
    )Provision for (recovery of) doubtful accounts, net
    
    
    27,152
    
    
    
    (58,740
    )
    
    
    21,289Loss on
disposal of property and equipment
    
    
    
    
    
    
    17,232
    
    
    
    Loss on early extinguishment of debt
    
    
    
    
    
    
    
    
    
    
    218,071Changes in assets and liabilities, net of effect of acquisitions:Receivables, net
    
    
    70,575
    
    
    
    301,463
    
    
    
    (959,098
    )Notes receivable, net
    
    
    892,005
    
    
    
    (509,568
    )
    
    
    Costs and earnings in excess of billings
    
    
    21,284
    
    
    
    25,957
    
    
    
    201,138Other current assets
    
    
    (128,875
    )
    
    
    (99,432
    )
    
    
    (274,687
    )Other assets
    
    
    (14,003
    )
    
    
    (33,716
    )
    
    
    (184,428
    )Trade and subcontractors payable
    
    
    (70,339
    )
    
    
    (182,750
    )
    
    
    196,831Accrued expenses
    
    
    (52,501
    )
    
    
    166,848
    
    
    
    (271,005
    )Accrued incentive compensation
    
    
    112,797
    
    
    
    (617,750
    )
    
    
    1,089,369Billings in excess of costs and earnings
    
    
    7,629
    
    
    
    (314,836
    )
    
    
    428,073Other liabilities
    
    
    (48,599
    )
    
    
    (84,887
    )
    
    
    43,460Net cash (used in) provided by operating activities
    
    
    (759,412
    )
    
    
    (2,281,971
    )
    
    
    943,921Cash flows from investing activities:Proceeds from sale of real estate temporarily held in escrow
    
    
    418,594
    
    
    
    8,272,399
    
    
    
    Deposit of cash proceeds from sale of real estate temporarily held in escrow
    
    
    (3,861,664
    )
    
    
    (3,659,904
    )
    
    
    (8,272,399
    )Proceeds from maturity of held-to-maturity investment
    
    
    
    
    
    
    2,000,000
    
    
    
    200,000Purchase of held-to-maturity investments
    
    
    
    
    
    
    (300,000
    )
    
    
    Proceeds from sale of real estate held for future sale or development
    
    
    2,709,444
    
    
    
    3,245,595
    
    
    
    515,000Additions to real estate held for sale or future development
    
    
    (28,546
    )
    
    
    
    
    
    
    Additions to income-producing properties, net
    
    
    (318,528
    )
    
    
    (724,333
    )
    
    
    (459,243
    )Additions to property, equipment and other, net
    
    
    (185,989
    )
    
    
    (202,910
    )
    
    
    (469,661
    )Additions to intangible assets, net
    
    
    (830,713
    )
    
    
    (866,753
    )
    
    
    (605,041
    )Acquisition, net of escrowed cash
    
    
    (5,118,575
    )
    
    
    
    
    
    
    (169,624
    )Net cash (used in) provided by investing activities
    
    
    (7,215,977
    )
    
    
    7,764,094
    
    
    
    (9,260,968
    )Cash flows from financing activities:Debt proceeds
    
    
    9,200,000
    
    
    
    
    
    
    
    Scheduled debt repayments
    
    
    (929,986
    )
    
    
    (905,212
    )
    
    
    (715,357
    )Mortgage principal payoff
    
    
    (2,600,000
    )
    
    
    
    
    
    
    (1,974,042
    )Deferred loan costs paid
    
    
    (154,497
    )
    
    
    
    
    
    
    (50,000
    )Cash dividends
    
    
    (508,923
    )
    
    
    (511,688
    )
    
    
    (1,026,089
    )Repurchase of Common Stock
    
    
    (19,747
    )
    
    
    
    
    
    
    Proceeds from exercise of stock options
    
    
    
    
    
    
    2,928
    
    
    
    Net cash provided by (used in) financing activities
    
    
    4,986,847
    
    
    
    (1,413,972
    )
    
    
    (3,765,488
    )Cash flows from discontinued operations:Operating activities
    
    
    111,531
    
    
    
    (397,366
    )
    
    
    2,312,034Investing activities
    
    
    3,134,788
    
    
    
    5,360,366
    
    
    
    8,118,366Financing activities
    
    
    (1,924,688
    )
    
    
    (3,103,991
    )
    
    
    (3,324,899
    )Net cash provided by discontinued operations
    
    
    1,321,631
    
    
    
    1,859,009
    
    
    
    7,105,501Net (decrease) increase in cash and cash equivalents
    
    
    (1,666,911
    )
    
    
    5,927,160
    
    
    
    (4,977,034
    )Cash and cash equivalents at beginning of period
    
    
    7,329,805
    
    
    
    1,402,645
    
    
    
    6,379,679Cash and cash equivalents at end of period
    
    $
    5,662,894
    
    
    $
    7,329,805
    
    
    $
    1,402,645Supplemental disclosure of noncash financing activities:Issuance of
Common Stock under 2000 Stock Award Plan
    
    $
    
    
    
    $
    8,460
    
    
    $
    39,175Supplemental schedule of cash flow information:Cash paid during the year for interest
    
    $
    2,152,747
    
    
    $
    2,004,677
    
    
    $
    1,996,986Cash
(refunded) paid during the year for income taxes, net
    
    $
    (20,572
    )
    
    $
    141,771
    
    
    $
    58,488
 See accompanying notes to consolidated financial statements.
 39




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##### Table of Contents



NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
APRIL 30, 2007, 2006, AND 2005
    (A) Principles of consolidation and basis of presentation
   (B) Use of estimates
  (C) Revenue recognition
 Revenue Recognition
   40




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##### Table of Contents



(D) Cash and cash equivalents and short-term investments
  (E) Restricted cash
  (F) Income-producing properties and property and equipment
  41




---



##### Table of Contents



(G) Real estate held for future development or sale
  (H) Deferred loan costs
  (I) Impairment of long-lived assets and assets to be disposed of
  (J) Income taxes
  K) Capitalized computer software
 Accounting for the Costs of
Computer Software Developed or Obtained for Internal Use
 (L) Goodwill and other intangible assets
  Computer software
    
    3 yearsProprietary BPE software solutions
    
    5 yearsCustomer relationships
    
    5 yearsLease costs
    
    Over the term of the leaseLoan costs
    
    Over the term of the loan
  42




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##### Table of Contents



Goodwill and Other Intangible Assets
 (M) Derivative instruments and hedging activities
 Accounting for Derivative Instruments and Hedging Activities
 (N) Discontinued Operations
 Accounting for the Impairment or Disposal of Long-Lived Assets,
 (O) Other current assets
  2007
    
    2006Cash surrender value of life Insurance
    
    $
    517,706
    
    
    $
    Inventory
    
    
    286,425
    
    
    
    253,330Prepaid real estate taxes
    
    
    265,195
    
    
    
    207,858Deferred costs
    
    
    139,052
    
    
    
    123,273Other
    
    
    138,214
    
    
    
    114,537Deposits
    
    
    121,898
    
    
    
    25,320Prepaid insurance
    
    
    79,971
    
    
    
    138,512Prepaid rent
    
    
    39,574
    
    
    
    78,624Prepaid consulting
    
    
    25,000
    
    
    
    25,000$
    1,613,035
    
    
    $
    966,454
 (P) Other assets
  2007
    
    2006Deferred executive compensation
    
    $
    1,968,345
    
    
    $
    1,731,825Cash surrender value of life insurance
    
    
    1,077,615
    
    
    
    1,605,863Straight-line rent
    
    
    513,462
    
    
    
    452,638Short-term investment
    
    
    300,000
    
    
    
    300,000Notes receivable
    
    
    
    
    
    
    80,563$
    3,859,422
    
    
    $
    4,170,889
 43




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##### Table of Contents



(Q) Recent Accounting Pronouncement
 Accounting for Uncertainty in Income Taxes Accounting for Income
Taxes
 (R) Stock Compensation
 Share-Based Payment (revised 2004)
 Accounting for
Stock Issued to Employees Accounting for
Stock-Based Compensation Accounting for Stock-Based Compensation 
Transition and Disclosure
  2006
    
    2005Net earnings, as reported
    
    $
    525,766
    
    
    $
    1,800,358Add: Stock-based compensation
    
    
    25,107
    
    
    
    52,397Deduct: Total stock-based compensation
expense as determined under fair value
based method for all awards, net of
related tax effects
    
    
    (113,999
    )
    
    
    (161,600
    )Add: Forfeitures, net of related tax effects
    
    
    12,124
    
    
    
    50,760Pro forma net earnings
    
    $
    448,998
    
    
    $
    1,741,915Net earnings per share:Basic and diluted  as reported
    
    $
    0.15
    
    
    $
    0.51Basic and diluted  pro forma
    
    $
    0.13
    
    
    $
    0.49
  44




---



##### Table of Contents



Stock Options
  2007
    
    2006
    
    2005Weighted
    
    
    
    
    
    Weighted
    
    
    
    
    
    WeightedOptions
    
    Average
    
    Options
    
    Average
    
    Options
    
    Averageto Purchase
    
    Exercise
    
    to Purchase
    
    Exercise
    
    to Purchase
    
    ExerciseShares
    
    Price
    
    Shares
    
    Price
    
    Shares
    
    PriceOutstanding at beginning of year
    
    
    757,390
    
    
    $
    4.68
    
    
    
    788,169
    
    
    $
    4.67
    
    
    
    723,353
    
    
    $
    4.56Granted
    
    
    
    
    
    
    
    
    
    
    4,400
    
    
    
    4.77
    
    
    
    172,589
    
    
    
    4.86Forfeited
    
    
    (190,209
    )
    
    
    4.74
    
    
    
    (34,373
    )
    
    
    4.57
    
    
    
    (107,773
    )
    
    
    4.68Exercised
    
    
    
    
    
    
    
    
    
    
    (806
    )
    
    
    3.64
    
    
    
    
    
    
    
    Outstanding at end of year
    
    
    567,181
    
    
    
    4.66
    
    
    
    757,390
    
    
    
    4.68
    
    
    
    788,169
    
    
    
    4.67Vested at end of year
    
    
    567,181
    
    
    $
    4.66
    
    
    
    757,390
    
    
    $
    4.68
    
    
    
    498,593
    
    
    $
    4.61
    Number of
    
    Weighted AverageOutstanding
    
    Remainingand Exercisable
    
    ContractualExercise Price
    
    Options
    
    Life (Years)$4.64
    
    
    498,108
    
    
    
    5.274.77
    
    
    4,400
    
    
    
    0.104.82
    
    
    63,800
    
    
    
    7.915.45
    
    
    873
    
    
    
    7.14
  2006
    
    2005Expected life (years)
    
    
    10
    
    
    
    10Dividend yield
    
    
    3.70
    %
    
    
    3.86
    %Expected stock price volatility
    
    
    26
    %
    
    
    26
    %Risk-free interest rate
    
    
    4.52
    %
    
    
    4.45
    %
  45




---



##### Table of Contents



Stock Appreciation Rights
  WeightedSARs to
    
    
    AveragePurchase
    
    
    ExerciseShares
    
    
    PriceOutstanding at April 30, 2006
    
    
    
    
    
    $
    Granted
    
    
    561,000
    
    
    
    4.07Exercised
    
    
    
    
    
    
    Forfeited
    
    
    (131,000
    )
    
    
    4.10Outstanding at April 30, 2007
    
    
    430,000
    
    
    $
    4.06Vested at April 30, 2007
    
    
    
    
    
    $
    
  Weighted AverageNumber of
    
    Number of
    
    RemainingOutstanding
    
    Exercisable
    
    ContractualExercise Price
    
    SARs
    
    SARs
    
    Life (Years)$3.98
    
    
    217,000
    
    
    
    0
    
    
    
    9.614.14
    
    
    213,000
    
    
    
    0
    
    
    
    9.16
  2007Expected life (years)
    
    
    5Dividend yield
    
    
    3.19
    %Expected stock price volatility
    
    
    36.17
    %Risk free interest rate
    
    
    4.81
    %Fair value of SARs granted
    
    $
    0.77
  46




---



##### Table of Contents



Shares of Restricted Stock
  2007
    
    2006
    
    2005Non-vested restricted stock at beginning of year
    
    
    4,420
    
    
    
    9,570
    
    
    
    10,230Granted
    
    
    
    
    
    
    1,890
    
    
    
    10,120Forfeited
    
    
    (210
    )
    
    
    (440
    )
    
    
    (550
    )Vested
    
    
    (4,210
    )
    
    
    (6,600
    )
    
    
    (10,230
    )Non-vested restricted stock at end of year
    
    
    
    
    
    
    4,420
    
    
    
    9,570
     Accounting for the Impairment or Disposal of Long-Lived Assets,
 Allocation of Interest to
Discontinued Operations
 Construction Segment
  47




---



##### Table of Contents



Real estate sales of income-producing properties
   2007
    
    2006
    
    2005CONSTRUCTION SEGMENTRevenues
    
    $
    
    
    
    $
    40
    
    
    $
    145,513Costs and expenses
    
    
    
    
    
    
    (50,411
    )
    
    
    114,734Selling, general & administrative expenses
    
    
    14,201
    
    
    
    96,990
    
    
    
    171,393Operating loss from Construction Segment
    
    
    (14,201
    )
    
    
    (46,539
    )
    
    
    (140,614
    )REAL ESTATE SEGMENTRental revenues
    
    
    231,613
    
    
    
    1,016,644
    
    
    
    2,380,967Rental property operating expenses, including depreciation
    
    
    23,599
    
    
    
    437,476
    
    
    
    1,466,995Interest expense and loan prepayment fees
    
    
    492,522
    
    
    
    507,394
    
    
    
    1,324,171Operating (loss) earnings from Real Estate Segment
    
    
    (284,508
    )
    
    
    71,774
    
    
    
    (410,199
    )Total operating (loss) earnings from discontinued operations
    
    
    (298,709
    )
    
    
    25,235
    
    
    
    (550,813
    )Income tax (benefit) expense
    
    
    (113,509
    )
    
    
    9,588
    
    
    
    (180,770
    )Total operating (loss) earnings from discontinued operations, net of tax
    
    
    (185,200
    )
    
    
    15,647
    
    
    
    (370,043
    )Gain on sales of income-producing real estate
    
    
    3,483,613
    
    
    
    1,383,158
    
    
    
    5,587,361Income tax expense
    
    
    1,323,773
    
    
    
    525,600
    
    
    
    1,977,390Gain on sales of income-producing real estate, net of tax
    
    
    2,159,840
    
    
    
    857,558
    
    
    
    3,609,971Earnings from discontinued operations, net of tax
    
    $
    1,974,640
    
    
    $
    873,205
    
    
    $
    3,239,928
 Balances atAssets
of Discontinued Operations
    
    April 30, 2007
    
    April 30, 2006Income-producing
properties
    
    $
    
    
    
    $
    18,004Intangible assets
    
    
    
    
    
    
    43,415$
    
    
    
    $
    61,419
 Balances atLiabilities
of Discontinued Operations
    
    April 30, 2007
    
    April 30, 2006Accrued expenses
    
    $
    
    
    
    $
    14,836Current maturities of long-term debt
    
    
    
    
    
    
    238,556Mortgage notes payable
    
    
    
    
    
    
    1,686,134$
    
    
    
    $
    1,939,526
 48




---



##### Table of Contents



2007
    
    2006Costs and earnings in excess of billings:Accumulated costs and earnings
    
    $
    613,835
    
    
    $
    1,377,857Amounts billed
    
    
    348,295
    
    
    
    1,091,033$
    265,540
    
    
    $
    286,824Billings in excess of costs and earnings:Amounts billed
    
    $
    3,028,185
    
    
    $
    2,837,690Accumulated costs and earnings
    
    
    2,808,880
    
    
    
    2,626,014$
    219,305
    
    
    $
    211,676
   EstimatedUseful Lives
    
    2007
    
    2006Land
    
    
    N/A
    
    
    $
    11,194,458
    
    
    $
    6,329,715Buildings and improvements
    
    7-39 years
    
    
    29,028,641
    
    
    
    24,604,506$
    40,223,099
    
    
    $
    30,934,221Less  accumulated
depreciation and
amortization
    
    
    
    
    
    
    8,262,070
    
    
    
    10,227,308$
    31,961,029
    
    
    $
    20,706,913
    EstimatedUseful Lives
    
    2007
    
    2006Buildings and improvements
    
    3-39 years
    
    $
    496,276
    
    
    $
    490,804Equipment
    
    3-10 years
    
    
    1,304,949
    
    
    
    1,231,543Vehicles
    
    3-5 years
    
    
    253,184
    
    
    
    147,126$
    2,054,409
    
    
    $
    1,869,473Less  accumulated depreciation
    
    
    
    
    
    
    1,215,523
    
    
    
    1,026,269$
    838,886
    
    
    $
    843,204
  49




---



##### Table of Contents



Year Ending April 30,
    
    Owned
    
    Leaseback2008
    
    $
    4,738,000
    
    
    $
    559,0002009
    
    
    3,620,000
    
    
    
    559,0002010
    
    
    3,093,000
    
    
    
    559,0002011
    
    
    2,386,000
    
    
    
    559,0002012
    
    
    1,865,000
    
    
    
    559,000Thereafter
    
    
    3,410,000
    
    
    
    781,000$
    19,112,000
    
    
    $
    3,576,000
  Owned Rental Properties
    
    LeasebackMortgage Payments
    
    Centers RentalYear Ending April 30,
    
    Principal
    
    Interest
    
    Payments2008
    
    $
    757,277
    
    
    $
    1,645,270
    
    
    $
    257,0002009
    
    
    2,979,903
    
    
    
    1,537,462
    
    
    
    248,0002010
    
    
    477,382
    
    
    
    1,415,393
    
    
    
    248,0002011
    
    
    5,798,490
    
    
    
    1,381,604
    
    
    
    248,0002012
    
    
    395,906
    
    
    
    961,730
    
    
    
    248,000Thereafter
    
    
    14,312,060
    
    
    
    1,259,079
    
    
    
    358,000$
    24,721,018
    
    
    $
    8,200,538
    
    
    $
    1,607,000
 50




---



##### Table of Contents



Secured letter of credit
  Debt restructuring in Fiscal 2005
   51




---



##### Table of Contents



2007
    
    2006Note payable, net of discount ($100,000 at April 30, 2007), bearing
interest at the prime rate plus 1.5% (9.75% at April 30, 2007);
interest only payments due monthly; matures December 18, 2011;
secured by all general assets of The Wheatstone Energy Group, LLC
    
    $
    900,000
    
    
    $
    930,000Note payable bearing interest at 6.0%; interest due annually on
January 31, and principal payments due in installments as defined in
the agreement commencing on January 31, 2006; matures on January 31,
2008
    
    
    258,000
    
    
    
    387,000Note payable bearing interest at 6.8%; interest due annually on
December 31, beginning December 31, 2004, and principal payments due
annually in installments as defined in the agreement commencing on
December 19, 2008; matures on December 19, 2011
    
    
    295,000
    
    
    
    295,000Note payable, net of discount ($4,875 at April 30, 2006), with an
imputed interest rate of 6.0%; principal payments were due in two
installments on May 26, 2005, and May 26, 2006
    
    
    
    
    
    
    74,625Note payable, net of discount ($1,749 at April 30, 2006), with an
imputed interest rate of 6.0%; principal payments due annually in
installments as defined in the agreement, commencing on December 26,
2004; matured on December 26, 2006
    
    
    
    
    
    
    33,417Total other long-term debt
    
    
    1,453,000
    
    
    
    1,720,042Less current maturities
    
    
    278,000
    
    
    
    237,042Total other long-term debt, less current maturities
    
    $
    1,175,000
    
    
    $
    1,483,000
 52




---



##### Table of Contents



Fiscal Year Ending April 30,2008
    
    $
    278,0002009
    
    
    40,0002010
    
    
    85,0002011
    
    
    150,0002012
    
    
    900,000Thereafter
    
    
    Total
    
    $
    1,453,000
   Current
    
    Deferred
    
    TotalYear ended April 30, 2007Federal
    
    $
    (20,574
    )
    
    $
    (456,542
    )
    
    $
    (477,116
    )State and local
    
    
    
    
    
    
    (50,418
    )
    
    
    (50,418
    )$
    (20,574
    )
    
    $
    (506,960
    )
    
    $
    (527,534
    )Year ended April 30, 2006Federal
    
    $
    46,505
    
    
    $
    (225,829
    )
    
    $
    (179,324
    )State and local
    
    
    
    
    
    
    (33,623
    )
    
    
    (33,623
    )$
    46,505
    
    
    $
    (259,452
    )
    
    $
    (212,947
    )Year ended April 30, 2005Federal
    
    $
    
    
    
    $
    (746,813
    )
    
    $
    (746,813
    )State and local
    
    
    
    
    
    
    (147,407
    )
    
    
    (147,407
    )$
    
    
    
    $
    (894,220
    )
    
    $
    (894,220
    )
  2007
    
    2006
    
    2005Computed expected benefit
    
    $
    (522,086
    )
    
    $
    (190,531
    )
    
    $
    (793,489
    )Decrease in income taxes resulting from:State and local income taxes, net
of federal income tax benefit
    
    
    (60,808
    )
    
    
    (22,416
    )
    
    
    (93,351
    )Valuation allowance
    
    
    
    
    
    
    
    
    
    
    (46,667
    )Permanent items
    
    
    55,974
    
    
    
    
    
    
    
    Other
    
    
    (614
    )
    
    
    
    
    
    
    39,287$
    (527,534
    )
    
    $
    (212,947
    )
    
    $
    (894,220
    )
 53




---



##### Table of Contents



2007
    
    2006Deferred income tax assets:Items not currently deductible for tax purposes:Net operating loss carryforwards, federal and state (1)
    
    $
    2,647,024
    
    
    $
    1,451,135Valuation allowance
    
    
    (236,098
    )
    
    
    (236,098
    )Income producing properties and property and equipment, principally
because of differences in depreciation and capitalized interest
    
    
    193,076
    
    
    
    842,202Capitalized costs
    
    
    49,426
    
    
    
    86,881Bad debt reserve
    
    
    32,228
    
    
    
    32,592Deferred compensation plan
    
    
    752,932
    
    
    
    655,083Compensated absences
    
    
    36,338
    
    
    
    52,121Other accrued expenses
    
    
    516,879
    
    
    
    425,981Other
    
    
    151,314
    
    
    
    329,306Gross deferred income tax assets
    
    
    4,143,119
    
    
    
    3,639,203Deferred income tax liabilities:Income producing properties and property and equipment, principally
because of differences in depreciation and capitalized interest
    
    
    1,052,004
    
    
    
    944,959Gain on real estate sales structured as tax-deferred like-kind exchanges
    
    
    6,648,422
    
    
    
    5,605,180Other
    
    
    233,161
    
    
    
    176,736Gross deferred income tax liability
    
    
    7,933,587
    
    
    
    6,726,875Net deferred income tax liability
    
    $
    3,790,468
    
    
    $
    3,087,672
 (1)
    
    The federal net operating loss carryforwards expire in various years after fiscal 2015. The
majority of the state operating loss carryforwards expire in various years after fiscal 2009.    54




---



##### Table of Contents



Earnings Per Share,
 
 55




---



##### Table of Contents



For the Year Ended April 30, 2007Per ShareEarnings (Loss)
    
    Shares
    
    AmountBasic EPS  loss per share from continuing operations
    
    $
    (1,008,014
    )
    
    
    3,529,509
    
    
    $
    (0.29
    )Basic EPS  earnings per share from discontinued
operations
    
    
    1,974,640
    
    
    
    3,529,509
    
    
    
    0.56Effect of dilutive securities
    
    
    
    
    
    
    
    
    
    
    Diluted EPS  earnings per share
    
    $
    966,626
    
    
    
    3,529,509
    
    
    $
    0.27
 For the Year Ended April 30, 2006Per ShareEarnings (Loss)
    
    Shares
    
    AmountsBasic EPS  loss per share from continuing operations
    
    $
    (347,439
    )
    
    
    3,531,089
    
    
    $
    (0.10
    )Basic EPS  earnings per share from discontinued
operations
    
    
    873,205
    
    
    
    3,531,089
    
    
    
    0.25Effect of dilutive securities
    
    
    
    
    
    
    
    
    
    
    Diluted EPS  earnings per share
    
    $
    525,766
    
    
    
    3,531,089
    
    
    $
    0.15
 For the Year Ended April 30, 2005Per ShareEarnings (Loss)
    
    Shares
    
    AmountBasic EPS  loss per share from continuing operations
    
    $
    (1,439,570
    )
    
    
    3,526,041
    
    
    $
    (0.41
    )Basic EPS  earnings per share from discontinued
operations
    
    
    3,239,928
    
    
    
    3,526,041
    
    
    
    0.92Effect of dilutive securities
    
    
    
    
    
    
    
    
    
    
    Diluted EPS  earnings per share
    
    $
    1,800,358
    
    
    
    3,526,041
    
    
    $
    0.51
    56




---



##### Table of Contents



2007
    
    2006
    
    2005Customer 1
    
    
    N/A
    
    
    
    13
    %
    
    
    25
    %Customer 2
    
    
    12
    %
    
    
    15
    %
    
    
    N/ACustomer 3
    
    
    11
    %
    
    
    13
    %
    
    
    N/A
    57




---



##### Table of Contents



RealEstateBPE
    
    (1)
    
    Parent
    
    Eliminations
    
    Consolidated2007Revenues from unaffiliated
customers
    
    $
    12,829,553
    
    
    $
    9,165,667
    
    
    $
    
    
    
    $
    
    
    
    $
    21,995,220Interest and other income
    
    
    25,123
    
    
    
    1,213,708
    
    
    
    99,729
    
    
    
    (985,894
    )
    
    
    352,666Intersegment revenue
    
    
    
    
    
    
    534,394
    
    
    
    
    
    
    
    (534,394
    )
    
    
    Total revenues
    
    $
    12,854,676
    
    
    $
    10,913,769
    
    
    $
    99,729
    
    
    $
    (1,520,288
    )
    
    $
    22,347,886Net earnings (loss)
    
    $
    (633,513
    )
    
    $
    4,339,655
    
    
    $
    (2,753,502
    )
    
    $
    13,986
    
    
    $
    966,626Segment assets
    
    $
    12,944,471
    
    
    $
    51,312,138
    
    
    $
    26,097,765
    
    
    $
    (32,960,953
    )
    
    $
    57,393,421Goodwill (2)
    
    $
    5,458,717
    
    
    $
    
    
    
    $
    
    
    
    $
    
    
    
    $
    5,458,717Interest expense (2)
    
    $
    170,719
    
    
    $
    1,514,331
    
    
    $
    916,402
    
    
    $
    (985,894
    )
    
    $
    1,615,558Depreciation and
amortization (2)
    
    $
    581,523
    
    
    $
    1,078,427
    
    
    $
    55,023
    
    
    $
    
    
    
    $
    1,714,973Capital expenditures (2)
    
    $
    168,981
    
    
    $
    318,528
    
    
    $
    17,008
    
    
    $
    
    
    
    $
    504,517
 RealEstateBPE
    
    (1)
    
    Parent
    
    Eliminations
    
    Consolidated2006Revenues from unaffiliated
customers
    
    $
    11,611,479
    
    
    $
    9,931,738
    
    
    $
    
    
    
    $
    
    
    
    $
    21,543,217Interest and other income
    
    
    29,627
    
    
    
    1,083,364
    
    
    
    34,424
    
    
    
    (640,142
    )
    
    
    507,273Intersegment revenue
    
    
    
    
    
    
    517,197
    
    
    
    
    
    
    
    (517,197
    )
    
    
    Total revenues
    
    $
    11,641,106
    
    
    $
    11,532,299
    
    
    $
    34,424
    
    
    $
    (1,157,339
    )
    
    $
    22,050,490Net earnings (loss)
    
    $
    (236,652
    )
    
    $
    3,150,288
    
    
    $
    (3,058,031
    )
    
    $
    690,248
    
    
    $
    545,853Segment assets
    
    $
    13,957,213
    
    
    $
    45,230,775
    
    
    $
    28,987,785
    
    
    $
    (35,765,517
    )
    
    $
    52,410,256Goodwill (2)
    
    $
    5,458,717
    
    
    $
    
    
    
    $
    
    
    
    $
    
    
    
    $
    5,458,717Interest expense (2)
    
    $
    86,288
    
    
    $
    1,340,245
    
    
    $
    615,343
    
    
    $
    (640,142
    )
    
    $
    1,401,734Depreciation and
amortization (2)
    
    $
    415,815
    
    
    $
    868,126
    
    
    $
    68,870
    
    
    $
    
    
    
    $
    1,352,811Capital expenditures (2)
    
    $
    135,284
    
    
    $
    745,376
    
    
    $
    46,583
    
    
    $
    
    
    
    $
    927,243
 RealEstateBPE
    
    (1)
    
    Parent
    
    Eliminations
    
    Consolidated2005Revenues from unaffiliated
customers
    
    $
    13,074,855
    
    
    $
    8,427,897
    
    
    $
    
    
    
    $
    
    
    
    $
    21,502,752Interest and other income
    
    
    17,615
    
    
    
    350,064
    
    
    
    29,781
    
    
    
    (238,170
    )
    
    
    159,290Intersegment revenue
    
    
    14,867
    
    
    
    500,736
    
    
    
    
    
    
    
    (515,603
    )
    
    
    Total revenues
    
    $
    13,107,337
    
    
    $
    9,278,697
    
    
    $
    29,781
    
    
    $
    (753,773
    )
    
    $
    21,662,042Net earnings (loss)
    
    $
    (276,404
    )
    
    $
    4,030,540
    
    
    $
    (2,832,509
    )
    
    $
    963,847
    
    
    $
    1,885,474Segment assets
    
    $
    11,841,074
    
    
    $
    45,976,925
    
    
    $
    22,153,647
    
    
    $
    (22,904,474
    )
    
    $
    57,067,172Goodwill (2)
    
    $
    5,458,717
    
    
    $
    
    
    
    $
    
    
    
    $
    
    
    
    $
    5,458,717Interest expense (2)
    
    $
    152,408
    
    
    $
    1,473,410
    
    
    $
    215,695
    
    
    $
    (235,728
    )
    
    $
    1,605,785Depreciation and
amortization (2)
    
    $
    470,025
    
    
    $
    882,003
    
    
    $
    91,371
    
    
    $
    
    
    
    $
    1,443,399Capital expenditures (2)
    
    $
    132,273
    
    
    $
    459,243
    
    
    $
    337,388
    
    
    $
    
    
    
    $
    928,904
 (1)
    
    The Company is in the business of creating long-term value by periodically realizing
gains through the sale of income-producing properties and the sale of real estate held for
future development or sale; therefore, in this presentation the Real Estate Segments net
earnings includes earnings from discontinued operations, pursuant to SFAS 144, that
resulted from the sales of certain income-producing properties, and earnings included in
continuing operations that resulted from the gain on sale of certain other real estate
assets.(2)
    
    Does not include amounts associated with discontinued operations. 58




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For
the Year Ended April 30,2007
    
    2006
    
    2005Consolidated Segment revenues
    
    $
    22,347,886
    
    
    $
    22,050,490
    
    
    $
    21,662,042Revenues from sale of real estate held for sale
    
    
    (2,975,000
    )
    
    
    (3,823,987
    )
    
    
    (515,000
    )Total consolidated revenues
    
    $
    19,372,886
    
    
    $
    18,226,503
    
    
    $
    21,147,042
  For
the Year Ended April 30,2007
    
    2006
    
    2005Consolidated Segment net earnings
    
    $
    966,626
    
    
    $
    545,853
    
    
    $
    1,885,474Discontinued Construction Segment net loss
    
    
    
    
    
    
    (20,087
    )
    
    
    (170,761
    )Eliminations related to Construction Segment
    
    
    
    
    
    
    
    
    
    
    85,645Total consolidated net earnings
    
    $
    966,626
    
    
    $
    525,766
    
    
    $
    1,800,358
  Fiscal 2007
    59




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Fiscal 2006
  Fiscal 2005
    2007
    
    
    2005BuildingPerformanceNewnan
    
    
    Orange Park
    
    
    Stewartsboro
    
    
    Engineers
    
    
    Estimated Useful LivesLand
    
    $
    706,074
    
    
    $
    2,858,530
    
    
    $
    1,300,140
    
    
    $
    
    
    
    IndefiniteLand Improvements
    
    
    304,408
    
    
    
    
    
    
    
    240,684
    
    
    
    
    
    
    15 yearsBuilding
    
    
    2,942,369
    
    
    
    
    
    
    
    3,385,911
    
    
    
    
    
    
    39 yearsLease costs
    
    
    298,411
    
    
    
    
    
    
    
    341,020
    
    
    
    
    
    
    Over life of leaseProperty, furniture and equipment
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    8,727
    
    
    Various (2-5 years)Non-compete agreements
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    16,222
    
    
    2 yearsGoodwill
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    313,035
    
    
    IndefiniteTotal assets acquired
    
    $
    4,251,262
    
    
    $
    2,858,530
    
    
    $
    5,267,755
    
    
    $
    337,984
   Fiscal 2007
    60




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Fiscal 2006
       61




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Fiscal 2005
       April 30, 2007Gross Carrying
    
    
    AccumulatedAmount
    
    
    AmortizationAmortized intangible assets:Proprietary BPE software solutions
    
    $
    3,186,699
    
    
    $
    1,271,190Computer software
    
    
    453,525
    
    
    
    431,551Real estate lease costs
    
    
    1,865,461
    
    
    
    882,684Customer relationships
    
    
    218,000
    
    
    
    145,393Deferred loan costs
    
    
    531,432
    
    
    
    304,049Other
    
    
    28,660
    
    
    
    17,199$
    6,283,777
    
    
    $
    3,052,066Unamortized intangible assets:Trademark
    
    $
    708,707
    
    
    $
    
 62




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##### Table of Contents



April 30, 2006Gross Carrying
    
    
    AccumulatedAmount
    
    
    AmortizationAmortized intangible assets:Proprietary BPE software solutions
    
    $
    2,464,564
    
    
    $
    867,130Computer software
    
    
    427,210
    
    
    
    401,825Real estate lease costs
    
    
    1,150,800
    
    
    
    709,327Customer relationships
    
    
    218,000
    
    
    
    101,733Deferred loan costs
    
    
    410,087
    
    
    
    248,396Other
    
    
    55,609
    
    
    
    40,605$
    4,726,270
    
    
    $
    2,369,016Unamortized intangible assets:Trademark
    
    $
    708,707
    
    
    $
    
 Aggregate amortization expense for all amortized intangible assetsFor the year ended April 30, 2007
    
    $
    743,875For the year ended April 30, 2006
    
    
    546,537For the year ended April 30, 2005
    
    
    553,897
 Estimated amortization expense for all amortized intangible assets for the fiscal years endedApril 30, 2008
    
    $
    899,587April 30, 2009
    
    
    738,862April 30, 2010
    
    
    526,684April 30, 2011
    
    
    349,872April 30, 2012
    
    
    232,196
      Fiscal Year Ended April 30, 2007First Quarter
    
    Second Quarter
    
    Third Quarter
    
    Fourth QuarterTotal revenues from continuing operations
    
    $
    4,183
    
    
    $
    4,873
    
    
    $
    5,424
    
    
    $
    4,893Gross profit from continuing operations
    
    
    1,546
    
    
    
    1,722
    
    
    
    1,807
    
    
    
    2,317Net earnings (loss)
    
    
    (551
    )
    
    
    356
    
    
    
    1,202
    
    
    
    (41
    )Net earnings (loss) per share  basic
and diluted
    
    
    (0.16
    )
    
    
    0.10
    
    
    
    0.34
    
    
    
    (0.01
    )
 Fiscal Year Ended April 30, 2006First Quarter
    
    Second Quarter
    
    Third Quarter
    
    Fourth QuarterTotal revenues from continuing operations
    
    $
    5,082
    
    
    $
    3,946
    
    
    $
    4,428
    
    
    $
    4,770Gross profit from continuing operations
    
    
    2,630
    
    
    
    1,187
    
    
    
    1,782
    
    
    
    2,003Net earnings (loss)
    
    
    330
    
    
    
    (690
    )
    
    
    494
    
    
    
    392Net earnings (loss) per share  basic
and diluted
    
    
    0.10
    
    
    
    (0.20
    )
    
    
    0.14
    
    
    
    0.11
 63




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64




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##### Table of Contents



SCHEDULE III  REAL ESTATE AND ACCUMULATED DEPRECIATION
April 30, 2007
 CostsCapitalized
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Life on WhichSubsequent
    
    
    
    
    
    Gross Amounts at Which
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    DepreciationInitial Cost to Company
    
    to Acquisition
    
    
    Carried at Close of Year
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    In LatestBuilding
    
    
    
    
    
    
    
    
    
    Building
    
    
    
    
    
    
    
    
    
    Net
    
    
    
    
    
    
    
    
    
    Earningsand
    
    
    
    
    
    
    
    
    
    and
    
    Capitalized
    
    
    
    
    
    Accumulated
    
    Date(s) of
    
    Date
    
    StatementDescription
    
    Encumbrances
    
    Land
    
    Improvements
    
    Improvements
    
    Land
    
    Improvements
    
    Interest
    
    Total(1)
    
    Depreciation
    
    Construction
    
    Acquired
    
    Is ComputedINCOME-PRODUCING PROPERTIES:Kmart  Orange Park, FL
    
    $
    
    
    
    $
    2,858,530
    
    
    $
    127,487
    
    
    $
    35,731
    
    
    $
    2,858,530
    
    
    $
    163,218
    
    
    $
    
    
    
    $
    3,021,748
    
    
    $
    163,218
    
    
    
    1976
    (2)
    
    
    2007
    (2)
    
    25 yearsKmart  Columbus, GA
    
    
    408,335
    
    
    
    11,710
    
    
    
    2,356,920
    
    
    
    10,078
    
    
    
    11,710
    
    
    
    2,366,998
    
    
    
    238,970
    
    
    
    2,617,678
    
    
    
    2,605,968
    
    
    
    1980,1988
    
    
    
    
    
    
    25 yearsLeaseback
Shopping Center 
Davenport, IA
    
    
    
    
    
    
    
    
    
    
    2,150
    
    
    
    193,261
    
    
    
    
    
    
    
    195,411
    
    
    
    
    
    
    
    195,411
    
    
    
    189,272
    
    
    
    1995
    
    
    
    
    
    
    7 yearsLeaseback
Shopping Center 
Jacksonville, FL
    
    
    
    
    
    
    
    
    
    
    42,151
    
    
    
    
    
    
    
    
    
    
    
    42,151
    
    
    
    
    
    
    
    42,151
    
    
    
    24,449
    
    
    
    1994
    
    
    
    
    
    
    25 yearsOffice Building  Atlanta, GA
    
    
    4,539,270
    
    
    
    660,000
    
    
    
    4,338,102
    
    
    
    869,434
    
    
    
    660,000
    
    
    
    5,207,536
    
    
    
    
    
    
    
    5,867,536
    
    
    
    1,689,536
    
    
    
    1974,1997
    (3)
    
    
    1997
    
    
    39 yearsOffice Park  Marietta, GA
    
    
    5,779,170
    
    
    
    1,750,000
    
    
    
    6,417,275
    
    
    
    1,644,381
    
    
    
    1,750,000
    
    
    
    8,061,656
    
    
    
    
    
    
    
    9,811,656
    
    
    
    2,347,852
    
    
    
    1980,1985
    (4)
    
    
    1997
    
    
    39 yearsOffice Park  Newnan, GA
    
    
    2,500,000
    
    
    
    706,074
    
    
    
    3,246,777
    
    
    
    
    
    
    
    706,074
    
    
    
    3,246,777
    
    
    
    
    
    
    
    3,952,851
    
    
    
    15,956
    
    
    
    1998
    (4)
    
    
    2007
    
    
    39 yearsShopping Center  Smyrna, TN
    
    
    4,100,000
    
    
    
    1,300,140
    
    
    
    3,626,595
    
    
    
    4,756
    
    
    
    1,300,140
    
    
    
    3,631,351
    
    
    
    
    
    
    
    4,931,491
    
    
    
    81,434
    
    
    
    1983, 2006
    (4)
    
    
    2006
    
    
    39 yearsShopping Center  Jacksonville, FL
    
    
    7,394,243
    
    
    
    3,908,004
    
    
    
    5,170,420
    
    
    
    704,153
    
    
    
    3,908,004
    
    
    
    5,874,573
    
    
    
    
    
    
    
    9,782,577
    
    
    
    1,144,385
    
    
    
    1985
    (4)
    
    
    1999
    
    
    39 years24,721,018
    
    
    
    11,194,458
    
    
    
    25,327,877
    
    
    
    3,461,794
    
    
    
    11,194,458
    
    
    
    28,789,671
    
    
    
    238,970
    
    
    
    40,223,099
    
    
    
    8,262,070REAL ESTATE HELD FOR FUTURE DEVELOPMENT OR SALE:Land  Oakwood, GA
    
    
    
    
    
    
    234,089
    
    
    
    
    
    
    
    543,330
    
    
    
    777,419
    
    
    
    
    
    
    
    16,644
    
    
    
    794,063
    
    
    
    
    
    
    
    
    
    
    
    1987
    
    
    
    Land  North Ft. Myers
    
    
    
    
    
    
    183,221
    
    
    
    
    
    
    
    147,566
    
    
    
    330,787
    
    
    
    
    
    
    
    
    
    
    
    330,787
    
    
    
    
    
    
    
    
    
    
    
    1993
    
    
    
    
    
    
    
    417,310
    
    
    
    
    
    
    
    690,896
    
    
    
    1,108,206
    
    
    
    
    
    
    
    16,644
    
    
    
    1,124,850
    
    
    
    $
    24,721,018
    
    
    $
    11,611,768
    
    
    $
    25,327,877
    
    
    $
    4,152,690
    
    
    $
    12,302,664
    
    
    $
    28,789,671
    
    
    $
    255,614
    
    
    $
    41,347,949
    
    
    $
    8,262,070
 
 (1)
    
    The aggregated cost for land and building and improvements for federal income tax
purposes at April 30, 2007, is $25,720,196.(2)
    
    Developed by the Company in 1976, sold by the Company, leased back to the Company and
re-acquired in 2007.(3)
    
    Developed by others in 1974, redeveloped by the Company in 1997.(4)
    
    Developed by others.
 65




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SCHEDULE III  REAL ESTATE AND ACCUMULATED DEPRECIATION (Cont)
APRIL 30, 2007
  Real Estate
    
    Accumulated Depreciation2007
    
    2006
    
    2005
    
    2007
    
    2006
    
    2005BALANCE AT BEGINNING OF YEAR
    
    $
    33,370,202
    
    
    $
    38,577,901
    
    
    $
    45,509,783
    
    
    $
    10,719,858
    
    
    $
    10,471,525
    
    
    $
    11,911,108ADDITIONS DURING YEARReal estate
    
    
    12,085,283
    (5)
    
    
    724,334
    
    
    
    621,296
    
    
    
    
    
    
    
    
    
    
    
    Depreciation from continuing operations
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    802,526
    
    
    
    692,787
    
    
    
    817,124Depreciation from discontinued operations
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    170,525
    
    
    
    218,330Transfers
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    12,085,283
    
    
    
    724,334
    
    
    
    621,296
    
    
    
    802,526
    
    
    
    863,312
    
    
    
    1,035,454DEDUCTIONS DURING YEARAccumulated depreciation on
properties sold or transferred
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    3,260,314
    (6)
    
    
    614,979
    (7)
    
    
    2,475,037
    (8)Carrying value of real estate
sold, transferred, or retired
    
    
    4,107,536
    (6)
    
    
    5,932,033
    (7)
    
    
    7,553,178
    (8)
    
    
    
    
    
    
    
    
    
    
    4,107,536
    
    
    
    5,932,033
    
    
    
    7,553,178
    
    
    
    3,260,314
    
    
    
    614,979
    
    
    
    2,475,037BALANCE AT CLOSE OF YEAR
    
    $
    41,347,949
    
    
    $
    33,370,202
    
    
    $
    38,577,901
    
    
    $
    8,262,070
    
    
    $
    10,719,858
    
    
    $
    10,471,525
 
 (5)
    
    Primarily represents the acquisition of an office building in Newnan, Georgia, a shopping
center in Smyrna, Tennessee, and the reacquisition of the land and
building in Orange Park, Florida.(6)
    
    Primarily represents the sale of the shopping center in Morton, Illinois, an outlot in North
Fort Myers, Florida, and the Companys former manufacturing and warehouse facility.(7)
    
    Primarily represents the sale of the professional medical office building in Douglasville,
Georgia, three outparcels in North Fort Myers, Florida, and one outparcel in Louisville, Kentucky.(8)
    
    Primarily represents the sale of a shopping center in
Cincinnati, Ohio, and Jackson, Michigan.
 66




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##### Table of Contents



ITEM 9. CHANGES IN AND DISAGREEMENTS WITH INDEPENDENT AUDITORS ON ACCOUNTING AND FINANCIAL
DISCLOSURE
  
 ITEM 9A. CONTROLS AND PROCEDURES
    
 ITEM 9B. OTHER INFORMATION
  
 PART III
 
 ITEMS 10-14
   
 PART IV
 
 ITEM 15. EXHIBITS AND FINANCIAL STATEMENT SCHEDULES
 (A)
          67




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##### Table of Contents



(B)
 (C)
 68




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##### Table of Contents



SERVIDYNE, INC.Dated: July 19, 2007
    By:
    /s/ Alan R. AbramsAlan R. AbramsChief Executive Officer  Dated: July 19, 2007
    /s/ Alan R. AbramsAlan R. AbramsChairman of the Board of Directors,
Chief Executive OfficerDated: July 19, 2007
    /s/ J. Andrew AbramsJ. Andrew AbramsDirectorDated: July 19, 2007David L. AbramsDirectorDated: July 19, 2007
    /s/ Samuel E. AllenSamuel E. AllenDirectorDated: July 19, 2007
    /s/ Gilbert L. DanielsonGilbert L. DanielsonDirectorDated: July 19, 2007
    /s/ Melinda S. GarrettMelinda S. GarrettDirectorDated: July 19, 2007
    /s/ Robert T. McWhinney, Jr.Robert T. McWhinney, Jr.DirectorDated: July 19, 2007
    /s/ Mark J. ThomasMark J. ThomasChief Financial Officer 69