SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549
                                   FORM 10-Q/A
                                 AMENDMENT NO. 1

         (Mark One)

   [ ]    QUARTERLY  REPORT  PURSUANT  TO SECTION 13 OR 15(d) OF THE  SECURITIES
          EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED JULY 31, 2001 OR

   [ ]    TRANSITION  REPORT  PURSUANT TO SECTION 13 OR 15(d) OF THE  SECURITIES
          EXCHANGE    ACT   OF   1934   FOR   THE    TRANSITION    PERIOD   FROM
          _____________________________ TO ___________________________

         0-17430
         ----------------------------------------------------
         Commission File Number

                               DANZER CORPORATION
 ------------------------------------------------------------------------------
             (Exact name of registrant as specified in its charter)


          DELAWARE                                      35-2154335
--------------------------------       -----------------------------------------
(State or other jurisdiction of           (I.R.S. Employer Identification No.)
incorporation or organization)

111 MONUMENT CIRCLE, SUITE 3680                          46204
INDIANAPOLIS, INDIANA
----------------------------------     -----------------------------------------
(Address of principal                                 (Zip code)
executive offices

                                  317-237-4122
 ------------------------------------------------------------------------------
              (Registrant's telephone number, including area code)

-------------------------------------------------------------------------------
              (Former name, former address and former fiscal year,
                         if changed since last report)

     Indicate  by check mark  whether the  registrant  (1) has filed all reports
required to be filed by Section 13 or 15(d) of the  Securities  Exchange  Act of
1934  during  the  preceding  12 months  (or for such  shorter  period  that the
registrant was required to file such reports),  and (2) has been subject to such
filing requirements for the past 90 days. Yes ___ No X


APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKTUPCY PROCEEDINGS DURING THE
PRECEDING FIVE YEARS:

     Indicate by check mark whether the  registrant  has filed all documents and
reports  required  to be filed by  Sections  12,  13 or 15(d) of the  Securities
Exchange Act of 1934 subsequent to the  distribution of securities  under a plan
confirmed by a court. Yes ___ No ___


APPLICABLE ONLY TO CORPORATE ISSUERS:

     Indicate the number of shares  outstanding of each of the issuer's  classes
of common stock, as of the latest practicable date.

         Common Stock                        Outstanding at  July 31, 2001
         $.0001 par value                    36,007,855 shares


<PAGE>

                                Introductory Note


This Amendment No. 1 amends the  Registrant's  Quarterly Report on Form 10-Q for
the fiscal  quarter  ended July 31, 2001,  to amend and restate Items 1 and 2 of
Part I to incorporate certain changes.

                         PART I - FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS.

                       DANZER CORPORATION AND SUBSIDIARIES
                      CONDENSED CONSOLIDATED BALANCE SHEETS
                        (in thousands, except share data)

                                   (unaudited)
<TABLE>

                                                                                    July 31,        December 31,
                                                                                      2001             2000
                                                                                 ----------------------------------
                                                                                  (as restated)

Assets

Current assets:
<S>                                                                                <C>             <C>
    Cash and cash equivalents                                                      $          58   $          217
    Marketable securities                                                                     297              --
    Accounts receivable, net of allowance for doubtful accounts
      of $95 for 2001 and $0 for 2000                                                       4,186           1,746
    Notes receivable, related party, current portion                                           --           1,098
    Inventories, net                                                                        5,928             747
    Prepaid expenses and other assets                                                       1,196             868
                                                                                 ----------------------------------

Total current assets                                                                       11,665           4,676

Property, plant and equipment, net                                                         25,735           3,182

Other assets:
    Accounts and notes receivable, related party, net of current
      portion                                                                                  --           1,770
    Goodwill, not subject to amortization                                                   5,829              --
    Goodwill, net of accumulated amortization of $210                                       5,825              --
    Other intangible assets, net of accumulated amortization of
      $75                                                                                   2,304               5
    Other                                                                                     661              --
                                                                                 ----------------------------------

                                                                                   $      52,019   $        9,633
                                                                                 ==================================
</TABLE>


               The accompanying notes are an integral part of the
                  condensed consolidated financial statements.


<PAGE>



                       DANZER CORPORATION AND SUBSIDIARIES
                      CONDENSED CONSOLIDATED BALANCE SHEETS
                        (in thousands, except share data)
                                   (unaudited)
<TABLE>

                                                                                     July 31,       December 31,
                                                                                       2001             2000
                                                                                 ----------------------------------
                                                                                  (as restated)
Liabilities and Stockholders' Equity

Current liabilities:
<S>                                                                                <C>              <C>
    Current portion of long-term debt                                              $       12,129   $        3,135
    Accounts payable, trade                                                                 2,918              509
    Accounts payable, related parties                                                       2,777               --
    Accrued expenses and customer deposits                                                  2,426              168
                                                                                 ----------------------------------

Total current liabilities                                                                  20,250            3,812

Long-term debt, net of current portion                                                     23,470              711

Deferred income tax liabilities                                                             1,910              171

Accounts payable, related parties                                                             679               --

Commitments and contingencies                                                                  --               --

Mandatory redeemable preferred stock                                                        1,505               --

Stockholders' equity (deficit):
    Common stock, par value $.0001 per share; 40,000,000 shares authorized,
     36,007,855 shares outstanding                                                              3                1
    Preferred stock, 5,000,000 shares authorized; Class of Series C convertible
     preferred stock, par value $.001, 4,600,000 authorized and 3,739,169 shares
     issued and outstanding, 400,000 shares of undesignated Preferred
     Stock authorized                                                                           4               --
    Additional paid-in capital                                                              5,612               --
    Accumulated other comprehensive income                                                    111               --
    Retained earnings (accumulated deficit)                                                (1,525)           4,938
                                                                                 ----------------------------------

Total stockholders' equity                                                                  4,205            4,939
                                                                                 ----------------------------------

                                                                                   $       52,019   $        9,633
                                                                                 ==================================
</TABLE>


               The accompanying notes are an integral part of the
                  condensed consolidated financial statements.


<PAGE>


                       DANZER CORPORATION AND SUBSIDIARIES
                 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                 (in thousands, except share and per share data)
                                   (unaudited)

<TABLE>

                                                     Three Months Ended                   Seven Months Ended
                                            --------------------------------------------------------------------------
                                              July 31, 2001     July 31, 2000      July 31, 2001      July 31, 2000
                                            --------------------------------------------------------------------------

<S>                                           <C>               <C>                <C>                <C>
Net sales                                     $        6,040    $        3,033     $       12,937     $        6,847

Cost of sales                                          4,768             2,513             10,274              5,759
                                            --------------------------------------------------------------------------


Gross profit                                           1,272               520              2,663              1,088

Selling, general and administrative
 expenses                                              1,258               663              2,614                996

Income (loss) from operations                             14              (143)                49                 92

Other income (expense):
  Interest expense, net                                 (690)             (136)            (1,570)              (307)
  Other income (expense)                                  11               110                (56)               251
                                            --------------------------------------------------------------------------

Loss before income taxes                                (665)             (169)            (1,577)                36

Income tax benefit (expense)                              52                56                 52                (29)
                                            --------------------------------------------------------------------------

Net income (loss)                             $         (613)   $         (113)    $       (1,525)    $            7
                                            ==========================================================================

Net income (loss) per share:
  Basic                                       $         (.02)   $           --     $         (.07)    $           --
                                            ==========================================================================
  Diluted                                     $         (.02)   $           --     $         (.07)    $           --
                                            ==========================================================================

Weighted average common and common equivalent shares outstanding:
  Basic                                           26,184,890                --         21,393,492                 --
                                            ==========================================================================
  Diluted                                         26,184,890                --         21,393,492                 --
                                            ==========================================================================
</TABLE>


               The accompanying notes are an integral part of the
                  condensed consolidated financial statements.


<PAGE>


                       DANZER CORPORATION AND SUBSIDIARIES
            CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDER'S EQUITY
                             (dollars in thousands)
                                   (unaudited)
<TABLE>

                                                                                            Accumulated   Retained
                                                                                 Additional    Other      Earnings
                             Comprehensive   Common Stock      Preferred Stock    Paid-in  Comprehensive (Accumulated
                                          ---------------------------------------
                                Income      Shares   Amount    Shares    Amount   Capital     Income      Deficit)   Total
                             -----------------------------------------------------------------------------------------------
                                 (as                                                                       (as restated)
                              restated)


<S>                          <C>         <C>             <C>    <C>      <C>     <C>         <C>         <C>         <C>
Balance at December 31, 2000   $      --  $17,760,015      $1    $   --  $   --     $  --      $    --       $4,938   $4,939
Conversion of debt to
 common stock                         --   1,750,000       --        --      --       355           --           --      355
To record the effect of the
 reverse merger June 21,
 2001                                 --          --        1 1,970,962       2     3,760         (103)      (4,938)  (1,278)
Conversion of Series C
 Preferred Stock to common
 stock                                --  16,497,840        1 (824,892)      (1)       --           --           --       --
Issuance of 2,593,099
 shares of Series C
 Convertible Preferred
 Stock associated with the
 acquisition of United and
 capital contribution                 --          --       -- 2,593,099       3     1,497           --           --    1,500
Unrealized gain on
 available-for-sale
 marketable securities               214          --       --        --      --        --          214           --      214
2001 net loss                     (1,525)         --       --        --      --        --           --       (1,525)  (1,525)
                             -----------------------------------------------------------------------------------------------
                             -----------------------------------------------------------------------------------------------

Total comprehensive loss       $  (1,311)
                             =============
                             =============

                                                                        $                  $                         $
Balance at July 31, 2001                  36,007,855       $3$3,739,169       4   $ 5,612          111     $ (1,525)   4,205
                                          ==================================================================================

</TABLE>



<PAGE>


                       DANZER CORPORATION AND SUBSIDIARIES
                 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                                 (in thousands)
                                   (unaudited)


<TABLE>

                                                                                     Seven Months    Seven Months
                                                                                    Ended July 31,  Ended July 31,
                                                                                         2001            2000
                                                                                    --------------------------------
                                                                                     (as restated)
Cash flow from operating activities:
<S>                                                                                   <C>             <C>
  Net income (loss)                                                                   $    (1,525)    $         7
  Adjustments to reconcile net income (loss) to net cash provided by (used in)
   operating activities:
  Depreciation and amortization                                                             1,374             307
  Other                                                                                       250              --
  Changes in operating assets and liabilities net of effect of acquisitions:
    Accounts receivable, net                                                                  231            (401)
    Inventories                                                                               875             199
    Other, net                                                                               (985)             93
                                                                                    --------------------------------

Net cash provided by (used in) operating activities                                           220             205
                                                                                    --------------------------------

Cash flows from investing activities:
  Capital expenditures                                                                       (687)           (683)
  Payments to acquire U.S. Rubber                                                          (5,528)             --
  Payments to acquire United Expressline                                                  (12,040)             --
  Other                                                                                        95             569
                                                                                    --------------------------------

Net cash used in investing activities                                                     (18,160)           (114)
                                                                                    --------------------------------

</TABLE>




               The accompanying notes are an integral part of the
                  condensed consolidated financial statements.


<PAGE>


                       DANZER CORPORATION AND SUBSIDIARIES
                 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                                 (in thousands)
                                   (unaudited)
<TABLE>


                                                                                     Seven Months    Seven Months
                                                                                    Ended July 31,  Ended July 31,
                                                                                         2001            2000
                                                                                    --------------------------------
                                                                                     (as restated)
Cash flows from financing activities:
<S>                                                                                   <C>             <C>
  Borrowings from and distributions to related parties, net                           $     2,187     $        --
  Net borrowings (payments) on lines of credit                                              3,346            (245)
  Net borrowings (repayments) on long-term debt                                            10,092              --
  Debt issuance cost                                                                         (224)             --
  Proceeds from stock issuance and capital contribution of U.S. Rubber common stock         2,380              --
                                                                                    --------------------------------

Net cash provided by (used in) financing activities                                        17,781            (245)
                                                                                    --------------------------------

Decrease in cash and cash equivalents                                                        (159)           (154)

Cash and cash equivalents, beginning of period                                                217             485
                                                                                    --------------------------------

Cash and cash equivalents, end of period                                              $        58     $       331
                                                                                    ================================

Interest paid                                                                         $     1,562     $       307
                                                                                    ================================

Taxes paid (refunded)                                                                 $      (163)    $        83
                                                                                    ================================

Supplemental disclosure of noncash operating, investing and financing
activities:
  Advances to construct coaches funded by issuance of debt                            $       292     $        --
  Seller notes issued in acquisition of U.S. Rubber                                   $     2,573     $        --
  Conversion of contributed amounts to equity                                         $       355     $        --
  Seller note issued in acquisition of United Expressline                             $     1,500     $        --

</TABLE>


               The accompanying notes are an integral part of the
                  condensed consolidated financial statements.


<PAGE>


                       DANZER CORPORATION AND SUBSIDIARIES
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
              (in thousands, except per-share data and share data)
                                   (unaudited)



1.   BASIS OF  PRESENTATION,  DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT
     ACCOUNTING POLICIES

Description of Business:

     Danzer  Corporation,   formerly  named  Global   Environmental  Corp.,  was
incorporated on October 6, 1987.  Effective August 1, 1988, the Company acquired
all  of the  issued  and  outstanding  common  shares  of  Global  Environmental
Holdings, Inc. ("Global Holdings").  On October 7, 1999, the Company changed its
name from Global Environmental Corp. to Danzer Corporation.

     Danzer  Corporation  was  reorganized  through an  Acquisition  and Plan of
Reorganization  with U.S. Rubber  Reclaiming,  Inc. and Related  Entities ("U.S.
Rubber  Companies"),  which was  consummated  on June 21,  2001 (the  "Effective
Date").  The Acquisition and Plan of Reorganization  of Danzer  Corporation with
U.S. Rubber Companies (see Note 3, the "Acquisition and Plan of Reorganization")
was  accounted  for as a reverse  acquisition  as the  shareholders  of the U.S.
Rubber Companies owned a majority of the outstanding  stock of Danzer subsequent
to the Acquisition and Plan of Reorganization.

     For accounting  purposes,  U.S. Rubber  Reclaiming,  Inc. is deemed to have
acquired Danzer.  Accordingly,  the 2000 financial  information presented herein
represents only the financial results of U.S. Rubber Reclaiming,

Inc.

     Pursuant to the Plan of Acquisition and Reorganization, United Expressline,
Inc. was acquired July 31, 2001.

     The  accompanying  financial data as of July 31, 2001 and for the three and
seven  months  ended July 31, 2001 and 2000 has been  prepared  by the  Company,
without  audit,  pursuant to the rules and  regulations  of the  Securities  and
Exchange  Commission  ("SEC").  Certain  information  and  footnote  disclosures
normally included in financial statements prepared in accordance with accounting
principles  generally  accepted  in the  United  States  of  America  have  been
condensed or omitted  pursuant to such rules and  regulations.  The December 31,
2000 balance sheet was derived from audited financial  statements,  but does not
include all disclosures required by accounting  principles generally accepted in
the United States of America. However, the Company believes that the disclosures
are adequate to make the information presented not misleading.

     In the  opinion  of  management,  all  adjustments  (which  include  normal
recurring  adjustments  except as disclosed  herein) necessary to present a fair
statement of financial  position as of July 31, 2001,  results of operations for
the three and seven months ended July 31, 2001, and cash flows and stockholders'
equity for the seven months  ended July 31, 2001 have been made.  The results of
operations  for  the  three  and  seven  months  ended  July  31,  2001  are not
necessarily  indicative of the operating results for the full fiscal year or any
future periods.

     The  entities  resulting  from  the  merger  described  above,   considered
accounting  subsidiaries  of  U.S.  Rubber  Reclaiming,   Inc.  (the  accounting
acquirer) and legal subsidiaries of Danzer  Corporation  (formerly Danzer) after
the Acquisition and Plan of Reorganization, are as follows:
<PAGE>


                       DANZER CORPORATION AND SUBSIDIARIES
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
              (in thousands, except per-share data and share data)
                                   (unaudited)


     U.S. Rubber  Reclaiming,  Inc. ("U.S.  Rubber",  the accounting  acquirer),
which is engaged in reclaiming  scrap butyl rubber into butyl reclaim for resale
to manufacturers of rubber products.

     Danzer Corporation ("Danzer", the legal acquirer), a holding company.

     Danzer Industries, Inc. ("Danzer Industries"), which is principally engaged
in the design, manufacture and sale of truck bodies.

     Pyramid  Coach,  Inc.  ("Pyramid"),  which is  engaged  in the  leasing  of
coaches,  designed and fitted out for use for travel by country,  rock bands and
other business enterprises, primarily on weekly to monthly leases. The financial
statements of Pyramid are presented on a combined basis. The combined  financial
statements of Pyramid also include the assets,  liabilities,  equity and results
of operations  of DW Leasing,  LLC ("DW  Leasing").  DW Leasing is controlled by
individuals which are also controlling  shareholders of Danzer  Corporation and,
accordingly, Pyramid. DW Leasing also owns substantially all coaches operated by
Pyramid.  All  intercompany  transactions  are eliminated in combination of this
entity.

     Champion Trailer, Inc. ("Champion"), which manufactures and sells transport
trailers to be used primarily in the auto racing industry.

     United  Expressline,  Inc.  ("United")  manufactures  and sells general use
cargo trailers and specialty  trailers used in the racing industry and for other
special purposes.


Significant Accounting Policies:
Principles of Consolidation:

     The accompanying  condensed consolidated financial statements as of and for
the three  months and seven  months  ended July 31, 2001 present the accounts of
Danzer  Corporation and its wholly owned  subsidiaries  described  above, all of
which are treated for accounting  purposes as purchases in a reverse merger more
fully described in Note 3. The entities are  collectively  referred to herein as
the "Company." All significant intercompany  transactions and balances have been
eliminated in consolidation.  The accompanying  financial statements include the
operations of U.S.  Rubber for all periods  presented.  Operations for all other
companies in the consolidated  group are included from their respective dates of
acquisition as follows:

         Champion                           January 1, 2001

         Pyramid                            January 1, 2001

         Danzer Corporation                 June 21, 2001

         Danzer Industries                  June 21, 2001

         United Expressline                 July 31, 2001

Financial  statements  as of July 31,  2000 and for the three  months  and seven
months then ended  include only the accounts and results of  operations  of U.S.
Rubber.

Earnings Per Share:

     Basic per-share amounts are computed,  generally, by dividing net income or
loss by the  weighted-average  number  of  common  shares  outstanding.  Diluted
per-share  amounts are computed  similar to basic per-share  amounts except that
the  weighted-average  shares  outstanding  are increased to include  additional
shares for the assumed  exercise of stock options and warrants and conversion of
preferred stock, if dilutive.
<PAGE>


                       DANZER CORPORATION AND SUBSIDIARIES
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
              (in thousands, except per-share data and share data)
                                   (unaudited)


No common  shares of the  legal  acquirer  were  issued in  connection  with the
acquisition which was accounted for as a reverse merger. Accordingly, there were
no common shares outstanding for the period ended July 31, 2000.

     The Company's Series C Preferred Stock Preferred  Stock,  which has all the
rights and privileges of the Company's  common stock, is convertible at rates of
20 to 1. The inclusion of these  potential  common shares in the  calculation of
loss per share  would have an  antidilutive  effect.  However,  pursuant  to the
Acquisition Agreement and Plan of Reorganization entered into in connection with
the  reorganization,  these shares will be converted to common stock immediately
upon approval by the stockholders.  Accordingly, we are presenting the following
pro forma  information  to indicate  the effect on  earnings  per share had such
shares been converted to common shares for the periods presented.

     Pro forma basic and diluted loss per share have been  computed  below as if
the Series C Preferred  Stock was converted to common  stock.  For the three and
seven months ended July 31, 2001, respectively, the Series C Preferred Stock has
been  reflected on a weighted  average  basis  outstanding  as common  shares of
32,167,442 and 36,291,687  respectively.  There were no Series C Preferred Stock
shares  issued or  outstanding  during the three and seven months ended July 31,
2000.
<TABLE>


                                                    Three Months Ended                     Seven Months Ended
                                          --------------------------------------- --------------------------------------
                                            July 31, 2001       July 31, 2000       July 31, 2001      July 31, 2000
                                          ------------------- ------------------- ------------------ -------------------

Pro forma weighted average common
<S>                                             <C>            <C>                    <C>              <C>
 shares outstanding, basic and diluted          58,352,332          39,419,240        57,685,179           39,419,240
                                          =================== =================== ================== ===================

Pro forma net loss per share, basic and
 diluted, attributable to common
 shareholders                               $       (.01)       $          .00      $       (.03)      $          .00
                                          =================== =================== ================== ===================
</TABLE>

The pro forma net loss per share is presented  for  informational  purposes only
and is not indicative of the weighted  average common shares  outstanding or net
loss per share  presented in accordance  with  accounting  principles  generally
accepted in the United States of America.

     As described  in Note 5, at July 31,  2001,  the Company has a note payable
agreement which is convertible by the holder to common stock totaling  5,000,000
shares at a conversion rate of $0.10 per share. In addition, and as described in
Note 7, the Company has options and warrants  outstanding to purchase a total of
1,047,500  and  200,000  shares of common  stock,  respectively,  at a  weighted
average exercise price of $0.09 and $0.25, respectively, and has preferred stock
that has a conversion  rate of 20 shares of common for each share of  preferred.
However, because the Company incurred a loss for the period ended July 31, 2001,
the inclusion of those  potential  common shares in the  calculation  of diluted
loss per share would have an antidilutive effect.
<PAGE>


                       DANZER CORPORATION AND SUBSIDIARIES
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
              (in thousands, except per-share data and share data)
                                   (unaudited)


Recently Issued Accounting Pronouncements:

     In June 2001, the Financial  Accounting  Standards Board (FASB) issued SFAS
No. 141, Business Combinations,  and SFAS No. 142, Goodwill and Other Intangible
Assets. SFAS No. 141 requires all business combinations initiated after June 30,
2001 to be accounted for using the purchase method.  In addition,  companies are
required to review  goodwill and intangible  assets  reported in connection with
prior  acquisitions,  possibly  disaggregate  and report  separately  previously
identified  intangible assets and possibly  reclassify certain intangible assets
into  goodwill.  SFAS No. 142  establishes  new  guidelines  for  accounting for
goodwill and other intangible  assets. In accordance with SFAS No. 142, goodwill
associated with  acquisitions  consummated after June 30, 2001 is not amortized.
The Company  implemented  the provisions of SFAS Nos. 141 and 142 when recording
the  acquisition  of United on July 31,  2001.  The Company will  implement  the
remaining  provisions of SFAS No. 142 effective  November 1, 2001. Upon adoption
of these provisions, existing goodwill will no longer amortized but instead will
be assessed for impairment at least annually. The adoption of this pronouncement
will result in $5,829 of goodwill not being  amortized  and the  elimination  of
approximately $225 of amortization  annually on an additional $3,381 of goodwill
previously being amortized. The Company is currently assessing the impact of the
impairment provisions of these standards.

     In June 2001, the FASB issued SFAS No. 143, Accounting for Asset Retirement
Obligations.  SFAS No. 143 addresses  accounting  and reporting for  obligations
associated with the retirement of tangible  long-lived assets and the associated
asset retirement  costs.  This statement is effective for fiscal years beginning
after June 15, 2002.  The Company is currently  assessing the impact of this new
standard.

     In July 2001,  the FASB  issued  SFAS No.  144,  Impairment  or Disposal of
Long-Lived Assets,  which is effective for fiscal years beginning after December
15, 2001. The provisions of this statement provide a single accounting model for
impairment of long-lived assets.  The Company is currently  assessing the impact
of this new standard.

2.   RESTATEMENT OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS

     The Company  originally  reported  its  financial  position  and results of
operations  for the periods ended July 31, 2001 in September 2001 as part of its
filing under from 10-Q. That filing  included  accounting for the reverse merger
transaction  and the acquisition of United  Expressline on a preliminary  basis.
Subsequently  and in conjunction with the with the Company's annual report filed
on Form 10-K in  February  2002 and as  amended on Form  10-K/A  filed in August
2003, certain  preliminary  accounting and reporting  decisions were revised and
finalized.  Accordingly, these condensed financial statements are being restated
to reflect such changes.

3.   ACQUISITIONS AND PLAN OF REORGANIZATION

     On  June  21,  2001  ("Acquisition  Date"),  a  change  of  control  of the
Registrant occurred through an Acquisition  Agreement and Plan of Reorganization
dated June 21, 2001 (the "Reorganization Agreement") by and among Danzer, Danzer
Industries,  Inc., a wholly owned  subsidiary  of Danzer,  and Obsidian  Capital
Partners, LP ("OCP"), Timothy S. Durham (the newly elected Chairman of the Board
of  Danzer),  and  other  individual  owners of  Pyramid  and  Champion.  On the
Acquisition  Date,  Danzer  acquired:  all of the  outstanding  capital stock of
Pyramid in exchange for 810,099 shares of Danzer Series C Convertible  Preferred
Stock ("Danzer Preferred"); all of the outstanding capital stock of Champion for
135,712 shares of Danzer  Preferred and all of the outstanding  capital stock of
U.S. Rubber for 1,025,151 shares of Danzer  Preferred.  On July 31, 2001, Danzer
acquired  all of the  outstanding  capital  stock of  United  Acquisition,  Inc.
("UAI"),  the holding  company formed to acquire assets of United,  from OCP for
2,593,099 shares of Danzer Preferred.
<PAGE>


                       DANZER CORPORATION AND SUBSIDIARIES
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
              (in thousands, except per-share data and share data)
                                   (unaudited)


     Pursuant to the Reorganization Agreement, Danzer issued 4,564,061 shares of
its preferred  stock to OCP,  Timothy  Durham,  and other  individual  owners of
Pyramid and Champion ("OCP Partners"). The Preferred Shares exchanged are Series
C Convertible Preferred Stock, designated $.001 par value per share, with voting
rights equal to common  shareholders  based upon the Preferred Shares conversion
rights of exchange of 20 common  shares for each 1 preferred  share  owned.  The
holders  of the Danzer  Preferred  vote as a single  class  with the  holders of
Danzer's common stock.  After the series of transactions  were completed on July
31, 2001, the OCP Partners owned 75.42% of the total voting, convertible capital
stock  (Preferred) of Danzer.  The preacquisiton  Danzer  shareholders and their
successors  own the  remaining  capital stock  representing  24.58% of the total
voting  capital  stock  (Common).  Since the U.S.  Rubber  Companies are so much
larger  than  Danzer,  and the  existing  U.S.  Rubber  shareholders  obtained a
majority interest in the stock of Danzer, they have been treated, for accounting
purposes, as the acquirer in the Reorganization  (reverse merger).  Although for
accounting  purposes,  U.S.  Rubber  has become  the  registrant,  for all other
purposes,  U.S.  Rubber,  Pyramid and Champion  legally became  subsidiaries  of
Danzer on June 21,  2001.  For purposes of this filing,  the  registrant's  name
continues to be Danzer, subsequently changed to Danzer Corporation, and the U.S.
Rubber  Companies  will change their fiscal year to the fiscal year (October 31)
used by  Danzer  prior  to the  Reorganization.  Therefore,  the  name  Obsidian
Enterprises  and Danzer  Corporation are one and the same as used in this filing
and the financial statements attached as exhibits.

     Pursuant  to the  Acquisition  Agreement  and Plan of  Reorganization  (the
"Acquisition  Agreement")  discussed above,  UAI was created.  On July 31, 2001,
OCP,  through  UAI,  acquired  substantially  all of the  assets of  United,  an
Indiana-based  manufacturer  of  enclosed  cargo  and  specialty  trailers,  for
approximately  $15,358.  The  purchase  price and purchase  accounting  has been
allocated  to the assets and  liabilities  of United based on their fair values.
OCP  exchanged  100% of its  shares of UAI for  shares  of Series C  Convertible
Preferred Stock of Danzer ("Series C Preferred  Stock").  The  consideration was
negotiated in arm's length discussions  between the parties. As a result, UAI is
now a wholly  owned  subsidiary  of  Danzer.  Danzer  intends  to  continue  the
operations of UAI under the name of "United Expressline, Inc."

     The Reorganization (reverse merger) with Danzer, and subsequent acquisition
of United,  were  accounted for under the purchase  method of  accounting.  U.S.
Rubber,  the largest company owned by OCP Partners,  was considered the acquirer
for accounting  purposes and recorded Danzer's assets and liabilities based upon
their  estimated  fair  values,  under the  purchase  method of  accounting  for
business combinations. The operating results of Danzer have been included in the
accompanying  consolidated  financial  statements  from the date of acquisition.
Under the  purchase  method of  accounting,  the  acquired  assets  and  assumed
liabilities have been recorded at their estimated fair values at the date of the
acquisition.

     The  acquisition  of Champion and Pyramid were also accounted for under the
purchase method of accounting;  however, due to the related-party  relationships
of the  previous  owners to the  Company,  the assets were  recorded at net book
value similar to pooling-of-interest  accounting,  referred to as reorganization
of entities  under  common  control.  Accordingly,  no  additional  goodwill was
recognized  beyond that recorded during the original  acquisition from unrelated
third parties.

<PAGE>


                       DANZER CORPORATION AND SUBSIDIARIES
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
              (in thousands, except per-share data and share data)
                                   (unaudited)


Acquisition of Danzer Corporation and Subsidiary:

     Champion and Pyramid,  originally  acquired January 1, 2001 and part of the
Plan of  Reorganization  of June 21, 2001 as discussed  above,  were  previously
owned by individuals who are also the members and managing directors of Obsidian
Capital Company,  LLC ("OCC"),  the General Partner of OCP. Purchase  accounting
and a goodwill  allocation of $2,600 were recorded on Champion when the managing
members of the OCC and others  acquired  those  entities  from  unrelated  third
parties.

     The purchase price and purchase  accounting was allocated to the assets and
liabilities  of Danzer based on their fair values.  The purchase price was based
on the value of Danzer's equity of $3,257 plus acquisition costs of $964.

     The valuation  allocation to tangible  assets included $2,300 and $1,536 of
net liabilities assumed. The excess of the purchase price over the fair value of
the  identifiable  tangible and intangible net assets of $3,457 was allocated to
goodwill.  Of this amount, $650 was allocated to Danzer and $2,807 was allocated
to Danzer Industries, its subsidiary.

     The following  schedule is a description of acquisition costs of Danzer and
Danzer Industries and the purchase price allocation (in thousands):
<TABLE>

Purchase price:
<S>                                                                                                   <C>
  Preferred stock                                                                                     $       3,257
  Acquisition costs, including amounts to related parties (see Note 15)                                         964
                                                                                                    -------------------

Total purchase price                                                                                  $       4,221
                                                                                                    ===================

Purchase Price Allocation:
  Current assets, including accounts receivable and inventory                                         $         329
  Land, property and equipment                                                                                2,300
  Goodwill                                                                                                    3,457
  Intangible assets                                                                                              --
  Other assets                                                                                                   65
  Less debt assumed                                                                                          (1,930)
                                                                                                    -------------------
                                                                                                    -------------------

Total allocation of purchase price                                                                    $       4,221
                                                                                                    ===================
</TABLE>

Acquisition of United Expressline, Inc.:

     The intangibles of United include existing brand name, noncompete,  and the
customer base. The valuation of intangibles  included $822 for brand name,  $886
for noncompete, and $105 for the customer base. The excess of the purchase price
of $15,358 over the fair value of the  identifiable  tangible and intangible net
assets of $5,829 has been allocated to goodwill.  The value assigned to tangible
assets totaled $7,563.
<PAGE>


                       DANZER CORPORATION AND SUBSIDIARIES
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
              (in thousands, except per-share data and share data)
                                   (unaudited)


     The following  schedule is a description of acquisition costs of United and
the purchase price allocation (in thousands):
<TABLE>

Purchase Price:
<S>                                                                                                  <C>
  Cash to seller                                                                                     $       11,050
  Seller note                                                                                                 1,500
  Liabilities assumed                                                                                         1,670
  Acquisition costs, including amounts to related parties (see Note 15)                                       1,138
                                                                                                   -------------------

Total Purchase Price                                                                                 $       15,358
                                                                                                   ===================

Purchase Price Allocation:
  Current assets, including accounts receivable and inventory                                        $        5,559
  Land, property and equipment                                                                                2,004
  Goodwill                                                                                                    5,829
  Intangible assets                                                                                           1,813
  Other assets                                                                                                  153
                                                                                                   -------------------

Total Purchase Price Allocation                                                                      $       15,358
                                                                                                   ===================
</TABLE>

Pro Forma Information:

     The unaudited condensed  consolidated  results of operations on a pro forma
basis as if the  reorganization  had occurred as of the beginning of the periods
projected are as follows (in thousands, except per share data):

     The unaudited condensed  consolidated results of operations shown below are
presented  on a pro forma  basis and  represent  the  results of Danzer,  Danzer
Industries,  U.S. Rubber, Champion,  Pyramid and DW Leasing on a combined basis.
In addition, United is treated as if the business combinations of these entities
occurred at the beginning of the periods presented.  The schedule below includes
all depreciation, amortization and nonrecurring charges for all entities for the
periods shown.

                                       Three Months Ended    Seven Months Ended
                                         July 31, 2000         July 31, 2000
                                      ------------------------------------------
                                      ------------------------------------------

Net sales                                $        16,047      $        45,518

Net loss                                 $          (344)     $        (1,632)

Net loss per share - basic and diluted   $         (.02)      $         (.09)

     The pro forma financial information is presented for informational purposes
only and is not indicative of the operating results that would have occurred had
the  Reorganization  been  consummated  as of the  above  dates,  nor  are  they
necessarily indicative of future operating results.
<PAGE>


                       DANZER CORPORATION AND SUBSIDIARIES
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
              (in thousands, except per-share data and share data)
                                   (unaudited)


     4. INVENTORIES

Inventories  are stated at the  lower-of-cost  (first-in,  first-out  method) or
market and are comprised of the following components (in thousands):
<TABLE>

                                                                 July 31,       December 31, 2000
                                                                   2001
                                                             ------------------ -------------------

<S>                                                            <C>                <C>
Raw materials                                                  $        3,969     $        1,649
Work-in-process                                                         1,348                 --
Finished goods                                                          1,654                435
Valuation reserve                                                      (1,043)            (1,338)
                                                             ------------------ -------------------

Total                                                          $        5,928     $          747
                                                             ================== ===================
</TABLE>

     The Company provides valuation reserves for inventory  considered  obsolete
or not currently  available for use in  production.  Inventory  reserves at U.S.
Rubber are related to excess scrap butyl rubber not currently  available for use
without  further  processing;  therefore,  it has minimal value.  Changes in the
valuation reserve are as follows (in thousands):
<TABLE>

                                                                  U.S. Rubber           Total
                                                               ------------------ -------------------

<S>                <C>                                           <C>                <C>
Balance at January 1, 2000                                       $       (1,818)    $       (1,818)
  Provision for losses, 2000                                               (120)              (120)
  Write-off of inventory, 2000                                              600                600
                                                               ------------------ -------------------

Balance at December 31, 2000                                             (1,338)             (1,338)
  Write-off of inventory, first three quarters 2001                         295                295
                                                               ------------------ -------------------

Balance at July 31, 2001                                         $       (1,043)    $       (1,043)
                                                               ================== ===================
</TABLE>

5.   FINANCING ARRANGEMENTS

     In  connection  with the  Acquisitions  described  in Note 3 and to provide
working capital, the Company has incurred the following debt as of July 31, 2001
and December 31, 2000:
<TABLE>

                                                                                     Debt Amount (in thousands)
                                                                                -------------------------------------
                                                                                    July 31,         December 31,
                                                                                      2001              2000**
                                                                                ------------------ ------------------
U.S. Rubber

Line of credit due, bearing interest at the prime rate plus .75% (7.50% at July
 31, 2001), borrowings not to exceed the greater of $3,000 or the borrowing base
 (80% of eligible accounts receivable and 50% of eligible
<S>                                                                               <C>                <C>
 inventories), collateralized by substantially all assets of U.S. Rubber          $        2,160     $        2,740

Note payable to a bank, interest payable monthly at prime rate plus 1% (7.75% at
 July 31, 2001), monthly principal payments of $2 beginning January 2002,
 collateralized by substantially all assets of U.S. Rubber                                   200                200

Note payable to a bank, due November 30, 2005, monthly principal payments of
 $35, balloon payment and accrued interest due at maturity, accruing interest at
 the prime rate plus 1% (7.75% at July 31, 2001), to be used to finance the
 acquisition and capital expenditures, collateralized by substantially
 all assets of U.S. Rubber*                                                                2,240                 --
</TABLE>
<PAGE>


                       DANZER CORPORATION AND SUBSIDIARIES
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
              (in thousands, except per-share data and share data)
                                   (unaudited)

5.   FINANCING ARRANGEMENTS, CONTINUED

<TABLE>

As part of the original acquisition described in Note 3, the Company issued a
 note payable to former owner (SerVaas, Inc.) in the amount of $1,750. The note
 requires interest payable monthly at fourteen percent (14%) from the date of
 this note until March 31, 2001 and at a rate of twenty percent (20%)
 thereafter. The former owner agreed to defer interest and principal payments
 through May of 2001. The amounts accrued during this period will become part of
 the balloon payment due December 28, 2005. The note is collateralized by a
 Stock Pledge Agreement given by OCP. In addition, this note is
<S>                                                                                        <C>                <C>
 subordinated to the lines of credit and note payable described above.                     1,750                 --

Note payable to former owner, total payments of $930, with interest imputed
 at 12%. Due in monthly installments of $39. Subordinate to bank debt and
 collateralized by inventory. Matures December 2001.                                         599                 --

Note payable to a bank, due November 30, 2005, monthly principal payments of $3,
 balloon payment and accrued interest due at maturity, accruing interest at the
 prime rate plus 1% (7.75% at July 31, 2001), to be used to finance
 the acquisition, collateralized by substantially all assets of U.S. Rubber*                 496                806

Other                                                                                         98                100
                                                                                ------------------ ------------------

Subtotal U.S. Rubber                                                                       7,543              3,846
                                                                                ------------------ ------------------
</TABLE>

*    U.S. Rubber is in technical  violation of certain  financial loan covenants
     with Bank One on its long-term  debt.  U.S. Rubber is working with Bank One
     to obtain waivers of the covenant violations, but has not received a waiver
     as of the date of this report filing.  The noncurrent  debt due Bank One in
     the amount of $2,086 has been  reclassified  as current debt in the balance
     sheet  until such time as  acceptable  waivers or  modifications  have been
     obtained.

<PAGE>


                       DANZER CORPORATION AND SUBSIDIARIES
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
              (in thousands, except per-share data and share data)
                                   (unaudited)


5.   FINANCING ARRANGEMENTS, CONTINUED
<TABLE>

                                                                                     Debt Amount (in thousands)
                                                                                -------------------------------------
                                                                                    July 31,         December 31,
                                                                                      2001              2000**
                                                                                ------------------ ------------------
Champion

Bank One, N.A. Facility 1--Line of Credit, maximum borrowing equal to $200,
 interest payable monthly at prime plus .50% (7.25% at July 31, 2001) due March
 15, 2002, collateralized by substantially all assets of Champion and
<S>                                                                               <C>                <C>
 guaranteed by Messrs. Durham and Whitesell                                       $          200     $           --

Bank One, N.A. Facility 2--term loan, note payable $650, requires monthly
 principal installments of $8 plus interest at prime plus .75% (7.50% at July
 31, 2001), matures June 2005, collateralized by substantially all assets of
 Champion and guaranteed by Messrs. Durham and Whitesell                                     541                 --

Bank One, N.A. Facility 3 - term loan, note payable $1,118, requires monthly
 principal installments of $31 plus interest at prime matures 1.50% (8.25% at
 July 31, 2001), matures June 2003, paid off on January 8, 2002, collateralized
 by substantially all assets of Champion and guaranteed by
 Messrs. Durham and Whitesell                                                                683                 --
</TABLE>
<PAGE>


                       DANZER CORPORATION AND SUBSIDIARIES
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
              (in thousands, except per-share data and share data)
                                   (unaudited)

5.   FINANCING ARRANGEMENTS, CONTINUED
<TABLE>

Note payable to The Markpoint Company, $1,250, interest payable monthly at
 13.50%, commencing June 1, 2000, balloon payment of outstanding principal
 balance due May 2005, collateralized by substantially all assets of Champion
<S>                                                                                        <C>        <C>
 and subordinate to senior bank debt described above*                                      1,250                 --

Other                                                                                         42                 --
                                                                                ------------------ ------------------

Subtotal Champion                                                                          2,716                 --
                                                                                ------------------ ------------------
</TABLE>

*    Champion  Trailer  is in  technical  violation  of certain  financial  loan
     covenants with Markpoint on its long-term  subordinated debt.  Champion has
     received  quarterly  waivers  through  June 30, 2001 of all  defaults,  but
     remains in default for the  classification of debt. The noncurrent debt due
     Markpoint in the amount of $1,250 has been  reclassified as current debt in
     the balance sheet until such time as the waivers  obtained are for a period
     longer than 90 days.




<PAGE>


                       DANZER CORPORATION AND SUBSIDIARIES
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
              (in thousands, except per-share data and share data)
                                   (unaudited)




5.   FINANCING ARRANGEMENTS, CONTINUED
<TABLE>

                                                                                     Debt Amount (in thousands)
                                                                                -------------------------------------
                                                                                    July 31,         December 31,
                                                                                      2001              2000**
                                                                                ------------------ ------------------
Pyramid and DW Leasing

Various installment loans, $15,483 repayable in monthly installments totaling
 $203 including interest ranging from 8.5% to 13.1% through November 2007 and
 applicable balloon payments thereafter through December 2007, first lien on
 assets financed (finance acquisition and asset purchases). Substantially all
<S>                                                                               <C>                <C>
 borrowings guaranteed by the members of DW Leasing.*                             $       13,109     $           --

Former shareholders of Pyramid and related companies installment loans, $928
 repayable in monthly installments of interest at 9% through December 2002 with
 a balloon payment in January 2003, collateralized by Security Agreements for
 Pyramid, DW Leasing and the members of DW Leasing (finance
 acquisition)                                                                                928                 --

Line of credit bearing interest at prime rate plus 1% (7.5% at July 31, 2001),
 borrowings not to exceed $200, collateralized by substantially all
 assets of DW Leasing                                                                        200                 --

Ford Motor Credit installment loan, $39 repayable in monthly installments of $1
 including interest at .9% through October 2005, first lien on asset
 (purchase asset)                                                                             33                 --
                                                                                ------------------ ------------------
                                                                                ------------------ ------------------

Subtotal Pyramid and DW Leasing                                                           14,270                 --
                                                                                ------------------ ------------------
</TABLE>

*    DW Leasing is in technical  violation of certain  financial  loan covenants
     with two  lenders,  Regions Bank and Old  National  Bank.  The lenders have
     given waivers to DW Leasing for the quarter  ended July 31, 2001.  However,
     since the Company continues to be in violation of the covenants,  long-term
     debt due  Regions  Bank and Old  National  Bank in the amount of $1,189 has
     been  classified  as a current  liability as of the quarter  ended July 31,
     2001.






<PAGE>



5.   FINANCING ARRANGEMENTS, CONTINUED
<TABLE>

                                                                                     Debt Amount (in thousands)
                                                                                -------------------------------------
                                                                                    July 31,         December 31,
                                                                                      2001              2000**
                                                                                ------------------ ------------------
Danzer Industries

Revolving and term loans payable to Wells Fargo. Collateralized by equipment,
 inventory, real estate and accounts receivable, refinanced in August 2001
<S>                                                                               <C>                <C>
 (see Note 11)                                                                    $          564     $           --

Equipment loans payable--monthly payments currently aggregating $2 including
 interest of 8.90% to 11.25% through September 2006. Collateralized by
 equipment financed.                                                                          35                 --

Term loans payable to US Amada, Ltd.--monthly payments currently aggregating $13
 including interest at 10%, loans due January 2003, collateralized by
 equipment financed                                                                          304                 --

Other                                                                                         11                 --
                                                                                ------------------ ------------------
                                                                                ------------------ ------------------

Subtotal Danzer Industries                                                                   914                 --
                                                                                ------------------ ------------------
                                                                                ------------------ ------------------

United

First Indiana Bank Revolving Line of Credit, maximum borrowing equal to $3,500,
 with a base of 80% of eligible accounts receivable; plus 50% of raw material,
 work-in-process and finished goods inventory. Interest payable monthly at prime
 plus .75% (7.50% at July 31, 2001) due July 1, 2002, collateralized by
 substantially all assets of United and guaranteed by
 Danzer Corporation                                                               $      2,888       $           --

First Indiana Term Loan I--note payable $291, requires monthly principal
 installments of $5 plus interest at prime plus 1% (7.75% at July 31, 2001), due
 July 1, 2006, collateralized by substantially all assets of United and
 guaranteed by Danzer Corporation                                                          291                   --

First Indiana Term Loan II--note payable $1,116, requires monthly principal
 installments of $6 plus interest at prime plus 1% (7.75% at July 31, 2001), due
 July 1, 2006, collateralized by substantially all assets of United and
 guaranteed by Danzer Corporation                                                        1,116                   --

First Indiana Term Loan III--note payable $1,750, requires monthly principal
 installments of $73 plus interest at prime plus 2% (8.75% at July 31, 2001),
 due July 1, 2003, collateralized by substantially all assets of United and
 guaranteed by Danzer Corporation                                                        1,750                   --

Subordinated note payable to Huntington Capital Investment Company, $3,500,
 interest payable quarterly at 14% per annum, balloon payment of outstanding
 principal balance due July 26, 2006, less unamortized discount of $1,505.
 Unsecured and subordinate to First Indiana debt.                                        1,996                   --
</TABLE>




<PAGE>


                       DANZER CORPORATION AND SUBSIDIARIES
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
              (in thousands, except per-share data and share data)
                                   (unaudited)




5.   FINANCING ARRANGEMENTS, CONTINUED
<TABLE>

                                                                                     Debt Amount (in thousands)
                                                                                -------------------------------------
                                                                                    July 31,         December 31,
                                                                                      2001              2000**
                                                                                ------------------ ------------------
United, continued

Note payable to former shareholder $1,500, interest payable monthly at 9% per
 annum, balloon payment of outstanding principal balance due July 27, 2006.
<S>                                                                               <C>                <C>
 Unsecured and subordinate to First Indiana and Huntington debt.                  $      1,500       $           --

Note payable to Renaissance (formerly parent Danzer Corporation), interest
 payable monthly at 8% per annum, with monthly principal payments beginning July
 2004 at a rate of $.01 for each $1 of outstanding principal, due July 2008.
 Convertible at the option of the holder to common stock of Obsidian Enterprises
 at a conversion price of $.10 per share. The loan agreement also
 restricts dividend payments without the prior consent of the lender.                      500                   --

Other                                                                                      115                   --
                                                                                ------------------ ------------------

Subtotal United                                                                         10,156                   --
                                                                                ------------------ ------------------
                                                                                ------------------ ------------------

Total all companies                                                                     35,599                3,846

Less current portion                                                                    12,129                3,135
                                                                                ------------------ ------------------

                                                                                  $     23,470       $          711
                                                                                ================== ==================
</TABLE>

**   The debt balances for December 31, 2000 reflect only those of U.S.  Rubber.
     While the other  companies  listed for  October 31, 2001 did have 2000 debt
     balances,  U.S. Rubber becomes the accounting acquirer in a reverse merger.
     Debt  balances for  December 31, 2000 and prior years are  presented in the
     financial statements of acquired businesses.

     The Company has an agreement  with OCP that gives it the right to mandate a
capital  contribution  from OCP if the lenders to U.S. Rubber and United were to
declare a default. In that event, the Company has the right to enforce a capital
contribution agreement with OCP up to $1,620 on U.S. Rubber and $1,000 on United
to fund the respective subsidiary's shortfall.  Those payments, if any, would be
applied directly to reduce the respective  subsidiary's  debt obligations to the
lender.



<PAGE>


                       DANZER CORPORATION AND SUBSIDIARIES
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
              (in thousands, except per-share data and share data)
                                   (unaudited)


5.   FINANCING ARRANGEMENTS, CONTINUED

     Following are the  maturities  of long-term  debt for each of the next five
years and thereafter (in thousands):

2002                                                           $     12,129***
2003                                                                  3,700
2004                                                                  1,947
2005                                                                  3,920
2006                                                                  8,772
Thereafter                                                            5,131
                                                             ------------------

                                                              $      35,599
                                                             ==================

***  Includes  $4,525 of amounts  in default  due to  technical  violations  and
     classified as current.

6.   MANDATORY PREFERRED STOCK

     In conjunction with the United acquisition described in Note 3, the Company
issued  386,206  shares  of  Series  C  Preferred  Stock to  Huntington  Capital
Investment Corporation ("Huntington"), the senior subordinated lender of United.
The note purchase agreement included a provision giving Huntington the option to
require the Company to repurchase the Series C Preferred Stock.  Under the terms
of the  agreement,  Huntington  has the  option  of  requiring  the  Company  to
repurchase  these shares at 90% of market value at the date of  redemption  upon
the earlier of: a) fifth  anniversary  of  issuance of such  shares,  b) default
under the  subordinated  debt  agreement,  c) other factors related to a sale of
substantially all assets of the Company as defined in the agreement.

     A portion of the note purchase  agreement  proceeds of $3,500 was allocated
to the  stock  issued  based on the  thirty  day  average  closing  value of the
Company's  common stock prior to the  transaction.  As the  redemption  value is
variable,  the  Company  recognizes  changes  in the  estimated  fair value each
quarter.  Changes in fair value are adjusted through additional paid in capital.
At July 31, 2001,  the  estimated  redemption  requirement  is $1,505 to be paid
July, 2006.

7.       STOCKHOLDERS' EQUITY

Preferred Stock:

     In conjunction with the merger and acquisitions  (described  previously) of
June 21,  the  Company  issued  1,970,962  of  Series  C  Preferred  Stock.  The
shareholders of Pyramid and Champion then converted  824,892 shares of preferred
stock to 16,497,840 of common stock.  In addition,  on July 5, 2001, the Company
increased the authorized shares of common stock by 20,000,000 to 40,000,000.  On
July 31, 2001, the Company  issued  2,593,099  shares of additional  convertible
preferred stock related to the United acquisition.

     The convertible  preferred stock is convertible at the option of the holder
at any time,  unless  previously  redeemed,  into shares of common  stock of the
Company  at an  initial  conversion  rate of 20 shares of common  stock for each
share of convertible stock.  However, the convertible preferred stock may not be
converted  prior to the  corporation  filing a  registration  statement  of such
shares.  Holders of the  convertible  preferred  stock have voting  rights which
entitle them to cast on each matter  submitted to a vote of the  stockholders of
the  Corporation  the  number of votes  equal to the  number of shares of common
stock into which such shares of Series C Preferred could be converted.
<PAGE>


                       DANZER CORPORATION AND SUBSIDIARIES
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
              (in thousands, except per-share data and share data)
                                   (unaudited)


     These shares were offered and sold in  transactions  which were exempt from
Securities Act registration  under Section 4(2) of the Securities Act,  relating
to sales by an issuer not  involving a public  offering.  No  underwriters  were
involved in the sale of these shares.  The Corporation will use its best efforts
to file, as soon as reasonable practicable following the date of issuance of the
Series C Preferred, a registration statement ("Registration  Statement") on Form
S-1, pursuant to the rules of the Securities and Exchange  Commission ("SEC") or
on such  other  form  promulgated  by the SEC for  which  the  Corporation  then
qualifies,  which  is  available  to  Corporation,  and  which  counsel  for the
Corporation shall deem appropriate for the registration under the Securities Act
of 1933.


Stock Options:

     On May 7, 1990, Danzer's stockholders approved a stock option plan to issue
both  "qualified"  and  "nonqualified"  stock options.  Under the plan,  800,000
options to purchase  shares of the  Company's  common stock may be issued at the
discretion  of the Company's  Board of Directors.  The option price per share is
determined by the Company's Board of Directors, but in no case will the price be
less  than  85% of the  fair  value of the  common  stock on the date of  grant.
Options  under  the plan  will  have a term of not  more  than  ten  years  with
accelerated termination upon the occurrence of certain events.

     In April 1998,  Danzer granted  600,000 stock options,  exercisable at $.10
per share, to its president. The options vest over two years and expire in April
2004. None of these options have been exercised as of July 31, 2001.

     In September 1998,  Danzer adopted a qualified  incentive stock option plan
under Section 422 of the Internal  Revenue Code.  Options granted under the plan
will be granted at prices not less than fair value of the Company's stock at the
date of grant,  have a term not more than ten years and have other  restrictions
as determined by statute.

     In  September  1998,  Danzer  granted  a total of  604,500  stock  options,
exercisable at $.10 per share, to certain employees. The options expire November
2001. As a result of voluntary  termination,  75,000 options expired in 1999 and
192,000 options expired in 2000. None of these options were exercised as of July
31, 2001.

     The Company has adopted the  disclosure-only  provisions  of  Statement  of
Financial  Accounting  Standards  (SFAS) No.  123,  Accounting  for  Stock-Based
Compensation.  Accordingly,  no compensation expense has been recognized for the
stock option plans.




<PAGE>


                       DANZER CORPORATION AND SUBSIDIARIES
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
              (in thousands, except per-share data and share data)
                                   (unaudited)




Stock Options and Warrants:

     The following table summarizes the outstanding options and warrants at July
31, 2001:
<TABLE>

                                                                                                           Weighted
                                                                                                           Average
                                                                                                           Exercise
                                                                                             Shares         Price
                                                                                          -------------- -------------

<S>                                                                                         <C>              <C>
Total granted stock options outstanding                                                     1,047,500        $  .09
                                                                                          ============== =============

Fixed options:
  Exercise price $.10                                                                         600,000        $  .10
  Exercise price $.05                                                                         200,000        $  .05
                                                                                          ============== =============

Warrants:
  On June 21, 2001, Duncan-Smith Co. terminated warrants for 650,000 common
   shares and was issued new warrant for 10,000 shares Series C Preferred
   exercisable at $2.00 per
   share, expiring August 31, 2002                                                            200,000        $  .10
                                                                                          ============== =============

Markpoint financing agreement expiring May 2008 associated with Champion                        Zero*        $  .01
                                                                                          ============== =============
</TABLE>

*    The number of warrants  available  under the  agreement  with  Markpoint is
     based on  twenty-five  percent of the fair  market  value of Champion to be
     determined based on a formula  including a multiple of EBITDA.  No warrants
     are currently available under this agreement based on the operating results
     and stockholder's deficit of Champion.


Convertible Debt:

     As described  in Note 5, at July 31,  2001,  the Company has a note payable
agreement which is convertible by the holder to common stock totaling  5,000,000
shares at a conversion rate of $0.10 per share at July 31, 2001.

<PAGE>



8.   BUSINESS SEGMENT DATA AND GEOGRAPHIC DATA

     The Company  operates in three industry  segments  comprised of trailer and
related transportation  equipment manufacturing (trailer  manufacturing);  coach
leasing;  and butyl rubber reclaiming.  All sales are in North and South America
primarily  in the United  States,  Canada and Brazil.  Selected  information  by
segment follows (in thousands):
<TABLE>

                                                             Three Months Ended July 31, 2001
                                       ------------------------------------------------------------------------------
                                             Trailer         Coach Leasing       Butyl Rubber           Total
                                          Manufacturing                           Reclaiming
                                       ------------------------------------------------------------------------------

Sales:
<S>                                      <C>                 <C>                 <C>               <C>
  Domestic                               $        1,759      $       1,467       $       2,680     $        5,906
  Foreign                                            --                 --                 134                134
                                       ------------------------------------------------------------------------------

Total                                    $        1,759      $       1,467       $       2,814     $        6,040

Cost of goods sold                       $        1,633      $         517       $       2,618     $        4,768

Income (loss) before taxes               $         (435)     $          30       $        (260)    $         (665)

Identifiable assets                      $       26,844      $      13,328       $      11,197     $       51,369*

Depreciation and amortization expense    $          102      $         238       $         266     $          606

*Identifiable assets, as stated above                                                              $       51,369
  Corporate-level goodwill                                                                                    650
                                                                                                 --------------------
                                                                                                 --------------------

Total assets                                                                                       $       52,019
                                                                                                 ====================
</TABLE>



<PAGE>


                       DANZER CORPORATION AND SUBSIDIARIES
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
              (in thousands, except per-share data and share data)
                                   (unaudited)


<TABLE>


                                                             Seven Months Ended July 31, 2001
                                       ------------------------------------------------------------------------------
                                             Trailer         Coach Leasing       Butyl Rubber           Total
                                          Manufacturing                           Reclaiming
                                       ------------------------------------------------------------------------------

Sales:
<S>                                      <C>                 <C>                 <C>               <C>
  Domestic                               $        3,123      $       2,646       $       6,700     $       12,469
  Foreign                                            --                 --                 468                468
                                       ------------------------------------------------------------------------------

Total                                    $        3,123      $       2,646       $       7,168     $       12,937

Cost of goods sold                       $        2,816      $         964       $       6,494     $       10,274

Income (loss) before taxes               $         (739)     $        (497)      $        (341)    $       (1,577)

Identifiable assets                      $       26,844      $      13,328       $      11,197     $       51,369*

Depreciation and amortization expense    $          210      $         544       $         620     $        1,374

*Identifiable assets, as stated above                                                              $       51,369
  Corporate-level goodwill                                                                                    650
                                                                                                 --------------------
                                                                                                 --------------------

Total assets                                                                                       $       52,019
                                                                                                 ====================

</TABLE>

Danzer Corporation (legal parent) allocates selling,  general and administrative
expenses to the respective companies primarily based on a percentage of sales.

For the three and seven months ended July 31, 2000, the Company operated in only
one segment (butyl rubber  reclaiming),  which was the segment of the accounting
acquirer U.S. Rubber.


<PAGE>



9.   RELATED PARTIES

The  Company  makes  advances,   receives  loans  and  conducts  other  business
transactions with affiliates  resulting in the following amounts for the periods
ended (in thousands):
<TABLE>

                                                                                      July 31,         December 31,
                                                                                        2001               2000
                                                                                  ------------------ -----------------
Balance sheet:
  Current assets:
<S>                                                                                 <C>                <C>
    Notes receivable, stockholder                                                   $         --       $      1,098
  Long-term portion:
    Notes receivable, stockholder                                                             --              1,770
    Investment banking fees, purchase accounting*                                          1,960                 --
                                                                                  ------------------ -----------------

Total assets                                                                        $      1,960       $      2,868
                                                                                  ================== =================
  Current liabilities:
    Accounts payable, Obsidian Capital Company (OCC)                                $      1,616       $         --
    Accounts payable, Obsidian Capital Partners                                            1,161
  Long-term portion:
    Accounts payable, Obsidian Capital Company (OCC)                                         296
    Accounts payable, stockholders                                                           383                 --
                                                                                  ------------------ -----------------
                                                                                  ------------------ -----------------

Total liabilities                                                                   $      3,456       $         --
                                                                                  ================== =================
</TABLE>
<TABLE>


                                                  Three Months Ended                       Seven Months Ended
                                         -------------------------------------    -------------------------------------
                                           July 31, 2001      July 31, 2000         July 31, 2001      July 31, 2000
                                         ------------------ ------------------    ------------------ ------------------
Statements of operations:
<S>                                        <C>                    <C>               <C>                <C>
  Interest income                          $         --           $ 110             $         --       $        251
                                         ================== ==================    ================== ==================
</TABLE>

     Related-party  amounts  classified as current reflect those portions of the
total  receivable  or payable that were  currently  due in  accordance  with the
terms, or were collected or paid subsequent to July 31, 2001. Amounts classified
as long term represent amounts not currently due.

     The Company was obligated to the stockholders  and certain  employees (that
were  formerly   stockholders  of  subsidiary   companies)  under  note  payable
agreements  acquired  as part of the  acquisitions.  The  details of these notes
payable are included in Note 5.

     *Subsidiaries  of the Company  paid  Obsidian  Capital  Company,  an entity
controlled by Mr.  Durham  (Chairman of the  Company),  investment  banking fees
associated with the  acquisitions  and related  financing on the Danzer and U.S.
Rubber merger and the United acquisition.  Amounts paid by U.S. Rubber,  United,
and Danzer were $760, $600, and $600 respectively.
<PAGE>


                       DANZER CORPORATION AND SUBSIDIARIES
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
              (in thousands, except per-share data and share data)
                                   (unaudited)


10.      COMMITMENTS AND CONTINGENCIES

     The  Company  has a purchase  commitment  to  purchase  or lease  three (3)
coaches  within 60 days of  completion,  expected to be in the second quarter of
calendar 2002. The cost of these coaches will approximate $1,350.

     In the normal  course of  business,  the  Company  is liable  for  contract
completion  and  product  performance.   In  the  opinion  of  management,  such
obligations will not significantly  affect the Company's  financial  position or
results of operations.

11.      SUBSEQUENT EVENTS

     On August 15, 2001, Danzer  Industries  entered into a new credit agreement
providing  for a line of credit  and term loan  with  Bank of  America.  The new
facilities replaced the existing outstanding debt with Wells Fargo. Terms of the
new facilities are:

     Bank of America line of credit,  maximum borrowing equal to $1,000,  with a
base  of  80% of  eligible  accounts  receivable;  plus  50%  of  raw  material,
work-in-process  and finished goods  inventory.  Interest payable monthly at the
LIBOR Daily  Floating  Rate plus 3.2%,  due March 31,  2002,  collateralized  by
substantially   all  assets  of  Danzer  Industries  and  guaranteed  by  Danzer
Corporation

     Bank of America  loan--note  payable  $1,000,  requires  monthly  principal
installments of $6 plus interest at the LIBOR Daily Floating Rate plus 3.2%, due
August 15, 2006. Collateralized by substantially all assets of Danzer Industries
and guaranteed by Danzer Corporation



<PAGE>


                       DANZER CORPORATION AND SUBSIDIARIES

ITEM 2. MANAGEMENT'S  DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
        OF OPERATIONS.

IMPORTANT NOTE ABOUT FORWARD-LOOKING STATEMENTS.


Cautionary Statement Regarding Forward-Looking Statements

     The Private Securities Litigation Reform Act of 1995 provides a safe harbor
for  forward-looking  statements.  The Company and its  representatives may from
time  to  time  make  written  or  oral  forward-looking  statements,  including
statements  included in or incorporated by reference into this Quarterly  Report
on Form  10-Q and the  Company's  other  filings  made with the  Securities  and
Exchange Commission.  These forward-looking statements are based on management's
views and  assumptions  and involve  risks,  uncertainties  and other  important
factors,  some of which may be beyond  the  control of the  Company,  that could
cause actual results to differ materially from those expressed or implied in the
forward-looking  statements.  Factors  that might  cause or  contribute  to such
differences  include,  but are not  limited  to,  those  discussed  in Item  2.,
Management's  Discussion  and  Analysis of  Financial  Condition  and Results of
Operations,  in this  Form  10-Q.  Readers  should  carefully  review  the risks
described in this and other  documents  that the Company files from time to time
with the  Securities and Exchange  Commission.  The  forward-looking  statements
speak  only as of the date  that  they are made and the  Company  undertakes  no
obligation to update or revise any of the forward-looking statements.


     Overview  Prior to the reverse  merger  transaction,  U.S.  Rubber,  United
Expressline,  Pyramid and Champion  reported on a calendar year basis. As of the
date of the reverse merger  transaction,  these companies changed their year end
to October, the year end of Danzer Corporation, the legal acquirer. Accordingly,
the year to date  information  presented  includes  seven  months of activity as
further described below.

     The reverse merger transactions, completed in June and July 2001, have been
treated for  accounting  purposes as an  acquisition  by U.S.  Rubber.  For this
reason,  the results for the seven-month period July 31, 2000 represent only the
financial  results of U.S.  Rubber.  Since the  Company  acquired a  substantial
portion of its  operations on or after January 1, 2001 and was not  previously a
registrant,  management's  discussion and analysis includes a comparison of 2001
operating  results with the three-month  and seven-month  periods ended July 31,
2000 only for the butyl rubber reclaiming segment.

     The results for the  seven-month  period July 31, 2001  represent  only the
financial results of U.S. Rubber,  Champion  Trailer,  and the Pyramid Group for
seven  months  based on the  January 1, 2001  acquisition  date.  The  financial
results  of  Danzer   Corporation  and  its  wholly  owned  subsidiary,   Danzer
Industries,  acquired June 21, 2001, are included from the date of  acquisition.
United  Expressline  was  acquired  July 31, 2001 and had no material  operating
results for the periods presented.

     Since the closing of the Acquisition and Plan of Reorganization on June 21,
2001.  Management  has  focused on  creating  consistent  reporting  systems and
communication with each of its subsidiaries. In addition Management has begun to
address the transition of the subsidiaries  from closely held mostly  nonaudited
private  companies to public entities.  Each of the subsidiaries is wholly owned
by Danzer.
<PAGE>

                       DANZER CORPORATION AND SUBSIDIARIES


     The majority voting shareholder of Danzer, Obsidian Capital Partners, L.P.,
a Delaware limited partnership  ("Obsidian") acquired U.S. Rubber in December of
2000, Champion in January 2001 and United in July 2001. Because the subsidiaries
are  such  recent  acquisitions,  Management  has  only  begun  the  process  of
operational  integration of the subsidiaries under Danzer, as a holding company.
Management  intends  to  focus  on  the  identification  and  implementation  of
manufacturing  and   administrative   efficiencies  as  well  as  marketing  and
cross-selling  opportunities.  Management has no prior history in effecting such
an  integration  of  subsidiaries  under a holding  company  and its  ability to
successfully  accomplish  this  task will  have a  substantial  impact on future
Company revenues and profits.

RESULTS OF OPERATIONS 2001 COMPARED WITH 2000

     The Company operates in three segments,  trailer and related transportation
manufacturing,  butyl rubber reclaiming,  and coach leasing. Trailer and related
transportation   manufacturing   includes  the  operations  of  United,   Danzer
Industries,  and Champion.  Butyl rubber  reclaiming  includes the operations of
U.S.  Rubber and coach leasing  includes the operations of Pyramid,  DW Leasing,
and Obsidian Leasing.


Segment Sales

The following table shows net sales by segment:
<TABLE>

                                            Three Months Ended                          Seven Months Ended
                                 ------------------------------------------ -------------------------------------------
                                    July 31, 2001         July 31, 2000        July 31, 2001         July 31, 2000
                                 --------------------- -------------------- --------------------- ---------------------

<S>                                  <C>                   <C>                  <C>                   <C>
Butyl rubber reclaiming              $      2,814          $      3,033         $      7,168          $      6,847
Trailer manufacturing                       1,759                    --                3,123                    --
Coach leasing                               1,467                    --                2,646                    --
                                 --------------------- -------------------- --------------------- ---------------------

Net Sales                            $      6,040          $      3,033         $     12,937          $      6,847
                                 ===================== ==================== ===================== =====================
</TABLE>

     The  Company's  operating  results and revenue were less than  expected for
each of its  segments in the three  months and seven months ended July 31, 2001.
This is  primarily  due to  reduced  capacity  at the  butyl  rubber  reclaiming
facility,  lower than anticipated utilization in the coach fleet and a reduction
in repair business in the trailer  manufacturing  segment. Each of these factors
is further discussed below.




<PAGE>

                       DANZER CORPORATION AND SUBSIDIARIES




Butyl Rubber Reclaiming

The following table shows sales, cost of sales and gross profit for this segment
for the periods indicated (in thousands):
<TABLE>

                                   Three Months Ended                         Seven Months Ended
                        ------------------------------------------ ------------------------------------------
                           July 31, 2001         July 31, 2000        July 31, 2001         July 31, 2000
                        --------------------- -------------------- --------------------- --------------------

<S>                         <C>                   <C>                  <C>                   <C>
Net Sales                   $      2,814          $      3,033         $      7,168          $      6,847
Cost of Sales                      2,618                 2,513                6,494                 5,759
                        --------------------- -------------------- --------------------- --------------------

Gross Profit                $        196          $        520         $        674          $      1,088
                        ===================== ==================== ===================== ====================

Gross Profit %                    7.0%                 17.1%                 9.4%                 15.9%
</TABLE>

Three  Months  Ended July 31, 2001  Compared to The Three  Months Ended July 31,
2000

Net sales in this  segment for the three  months ended July 31, 2001 as compared
to the comparable  three-month  period ended July 31, 2000 decreased 7.2% in the
amount of $219.  The  reduction in sales is a result of reduced  capacity at the
butyl reclaiming  facility due to the current  renovation of the 12" extruder (a
key  element of the  manufacturing  process).  In the first  half of 2001,  U.S.
Rubber has expended  over $850 in this and other major  renovations  and the 12"
extruder  is  expected  to be  fully  operational  by  mid-September  2001.These
renovations  have  resulted in lower than normal  production  through the period
ended July 31, 2001. Demand for product has increased over the comparable period
because of the widespread tire recalls at Bridgestone/Firestone and Goodyear.

Gross  profit  percentage  for the three  months  ended  July 31,  2001 was 7.0%
compared to 17.1% for the three  months  ended July 31,  2000.  The  decrease in
gross profit  percentage is the result of several factors.  First, the decreased
volume of production as a result of the refurbishment of manufacturing equipment
discussed  above.  Second,  the  equipment  refurbishment  has also  resulted in
inefficiencies in the production process.  Gross profit has also been negatively
impacted by the cost and  availability of raw material.  U.S. Rubber obtains its
raw material  inventory  through an extensive  collection  system  consisting of
small  rubber  collectors  and large  scrap  tire  recyclers.  U.S.  Rubber  has
experienced  competition  for its raw material  inventory from Korean buyers and
other overseas  buyers.  This competition will have the end result of higher raw
material costs. The competition for raw material  inventory has also contributed
to the lower than expected production rates and gross margins.

Seven  Months  Ended July 31, 2001  Compared to The Seven  Months Ended July 31,
2000

Net sales in this  segment for the seven  months ended July 31, 2001 as compared
to the  seven-month  period ended July 31, 2000  increased 4.7% in the amount of
$321.  The  increase in sales is due  primarily  to  increased  demand from tire
companies as the result of widespread tire recalls as discussed above.

Gross  profit  percentage  for the seven  months  ended  July 31,  2001 was 9.4%
compared  to 15.9% for the seven  months  ended July 31, 2000 as a result of the
decreased  volume,  inefficiencies  in  production  and raw material  factors as
discussed above.

<PAGE>

                       DANZER CORPORATION AND SUBSIDIARIES


Trailer And Related Transportation Equipment Manufacturing

     The following  table  presents net sales,  cost of sales,  gross profit and
gross  profit  percentage  for the seven  months and three months ended July 31,
2001,  for  the  trailer  and  related  transportation  equipment  manufacturing
segment.

                         Three months Ended   Seven Months Ended
                           July 31, 2001         July 31, 2000
                        --------------------- --------------------

Net Sales                   $      1,759          $      3,123
Cost of Sales                      1,633                 2,816
                        --------------------- --------------------

Gross Profit                $        126          $        307
                        ===================== ====================

Gross Profit %                    7.2%                  9.8%

     Sales and gross  profits were lower than  expected in this segment due to a
reduction  of its repair  business  at  Champion.  Management  believes  it must
recapture  some if not all of its  repair  business  in order to meet  operating
expectations.  Marketing  efforts have been made to increase the repair business
to former  levels.  Future  operating  activity in this  segment  will  increase
materially as a result of the acquisition of Danzer  Industries on June 21, 2001
and  United  on July 31,  2001.  Each of these  acquisitions  have  historically
experienced  sales in excess of those of Champion.  Management  anticipates this
segment will comprise in excess of 50% of the Company's  consolidated revenue in
the future based on the current company structure.


Coach Leasing

     The following  table  presents net sales,  cost of sales,  gross profit and
gross  profit  percentage  for the seven  months and three months ended July 31,
2001, for the coach leasing segment

                         Three months Ended   Seven Months Ended
                           July 31, 2001         July 31, 2000
                        --------------------- --------------------

Net Sales                   $     1,467           $     2,646
Cost of Sales                       517                   964
                        --------------------- --------------------

Gross Profit                $       950           $     1,682
                        ===================== ====================

Gross Profit %                   64.8%                 63.6%

Pyramid is  engaged  in the  leasing  of luxury  bus  coaches  with  specialized
interior  finishes,  and used for travel by country  and western and rock bands,
entertainment  personalities,  and other  business  enterprises  for  travel and
entertainment.  The buses are leased on both short-term (weekly and monthly) and
long-term leases.  Utilization for the first four months of 2001 was softer than
expected;  however,  beginning in April 2001, utilization has steadily increased
from 70.7% to 96.8% in July,  and  Pyramid's  fleet has  increased  by seven new
luxury coaches. This increased utilization is both a factor of marketing and the
seasonality of this business segment. Historically, coach utilization is highest
in the  summer  and  lowest in the  winter.  The  financial  information  herein
includes the results of operations of D.W.  Leasing,  LLC ("DW Leasing") as well
as  Pyramid.  DW Leasing is owned by the former  owners of Pyramid  who are also
officers and shareholders of Danzer  Corporation.  At the time of the closing of
the  Acquisition  and Plan of  Reorganization  on June 21, 2001,  Pyramid and DW
Leasing  conducted  cooperative   operations  through  a  management  agreement,
cross-guarantees  of debt and shared  management.  It is Management's  intent to
transfer a substantial  part of DW Leasing's  asset and  liabilities to Obsidian
Leasing Company,  ("Obsidian  Leasing",  a proposed entity to be wholly owned by
Danzer  Corporation),  to complete  the purchase of the Coach  Leasing  business
contemplated by the purchase  transaction in June 2001. The planned  transaction
is conditioned upon the consents of various lenders who have financed the luxury
coaches  that are titled in DW Leasing.  Management  is  currently  seeking such
consents,  and  expects  to close the  above  referenced  agreements  as soon as
possible.
<PAGE>

                       DANZER CORPORATION AND SUBSIDIARIES


SELLING, GENERAL AND ADMINISTRATIVE (SG&A) EXPENSES

     Selling, general and administrative expenses for the three months and seven
months  ended July 31,  2001 were $1,258 and $2,614 as compared to $663 and $996
for the three and seven months ended July 31, 2000. The increases over the prior
year are directly  attributable to the acquisitions in January, June and July of
2001 as previously  noted and to the fact that 2000  operating  results  include
only the operations of U.S. Rubber.  These increases are partially offset by the
cost of litigation settlement in June 2000 of $409.


INTEREST EXPENSE

     Interest  expense for the three months and seven months ended July 31, 2001
was $690 and $1,570 as compared to $136 and $307 for the three and seven  months
ended July 31, 2000. The increases over the prior year are directly attributable
to the acquisitions in January, June and July of 2001 as previously noted and to
the fact that 2000 operating results include only the operations of U.S. Rubber.
The Company's interest expense is a material amount and will continue to be high
as a percentage of sales as substantially all acquisitions were made on a highly
leveraged basis.


OTHER INCOME (EXPENSE)

     Other income (expense) for the three months and seven months ended July 31,
2001 was $11 and  $(56) as  compared  to $110 and $251 for the  three  and seven
months  ended July 31,  2000.  The  decreases  over the prior year are  directly
attributable to interest income on shareholder  notes  receivable of U.S. Rubber
in 2000. These notes were paid in full in 2000.


INCOME TAX PROVISION

     Income tax benefit  (expense)  for the three  months and seven months ended
July 31,  2001 was $52 and $52 as  compared  to $56 and  $(29) for the three and
seven months ended July 31,  2000.  The income tax benefit is created  primarily
through  operating  loss  carryforwards  recognized in the quarter to the extent
they are available to offset the Company's net deferred tax liability. Quarterly
tax benefits are based on the estimated effective tax rate for the full year.


LIQUIDITY AND CAPITAL RESOURCES

Each of the subsidiaries of Danzer have separate revolving credit agreements and
term loan borrowings through which each subsidiary finances its operations along
with cash generated  from  operations.  The high  principal  balances of some of
these loans reflect the fact that Obsidian  highly  leveraged the acquisition of
each of Champion,  U.S. Rubber,  Pyramid, and United. Each of these subsidiaries
will  utilize  its  excess  cash  in the  foreseeable  future  to pay  off  this
acquisition financing.
<PAGE>

                       DANZER CORPORATION AND SUBSIDIARIES


     This high level of debt  creates  liquidity  issues for the Company and the
stringent financial covenants that are common for this type of debt increase the
probability that the Company's  subsidiaries  will be in technical default under
loans.  These risks are mitigated,  in part,  for the Company's  United and U.S.
Rubber subsidiaries by the right described below under "Guarantees of OCP."

     Certain  subsidiaries  have violated certain  requirements and covenants in
their debt  agreements  relating to  maintenance  of certain  minimum ratios and
levels of earnings to funded debt and fixed charge coverage rate. Management has
brought  these  violations  to the attention of its lenders and, is working with
the  lenders to obtain  waivers or  modifications  to the credit  agreements  as
described below under "Financial Covenant Waivers."

     The  Company's  working  capital  position  (current  assets  over  current
liabilities)  was  negative at July 31, 2001 by $8,585 in part because of $4,525
of the Company's debt is classified as a current  liability due to debt covenant
violations.

The Company has been addressing  these liquidity and working capital issues in a
number of ways.  Management  anticipates  that the following  steps currently in
process will improve the Company's  working  capital,  strengthen its equity and
place the Company in a position to  successfully  address its liquidity  issues.
These steps include:

o    The transactions described below under "Partners Equity Transactions" which
     converts approximately $2,170 of long-term liabilities to equity.

o    The  transactions  described  below under  "Refinancing  Activities"  which
     provides for additional equity and reduced interest cost.

There can be no assurance that these  transactions  will occur as projected.  It
should  be noted  that  even if these  transactions  do  occur,  there can be no
assurance that they will  sufficiently  address the Company's  liquidity issues.
Management  will continue to address the liquidity  concerns as well as consider
any additional actions if the contemplated  transactions  either do not occur or
are insufficient.


FINANCIAL COVENANT VIOLATIONS

Certain  subsidiaries of the Company have violated financial  covenants in their
loan agreements as follows:

o    Management is in discussions  with Bank One in respect of the violations by
     U.S.  Rubber of the negative  covenants of (i) fixed charge  coverage ratio
     and (ii) funded debt to EBITDA  ratio.  No waiver of these  violations  has
     been received and discussions  regarding these  violations  continue.  As a
     result,  long-term  debt due to Bank One in the  amount of $2,086  has been
     reclassified as a current liability.

o    Pyramid is a guarantor of DW  Leasing's  debt to Regions  Bank,  Nashville,
     Tennessee. DW Leasing and Pyramid have been in violation of the Funded Debt
     to EBITDA ratio in the Regions Bank Credit  Facility since the inception of
     the loan.  DW Leasing also has a violation of its credit  facility with Old
     National  Bank.  Regions  Bank  and  Old  National  Bank  have  waived  the
     violations as of July 31, 2001. However,  since the Company continues to be
     in  violation  of the  covenants,  long-term  debt due Regions Bank and Old
     National  Bank in the amount of $1,189 has been  reclassified  as a current
     liability.

o    Champion   remains  in  default  of  its   subordinated   debt   agreement.
     Accordingly, $1,250 has been reclassified as a current liability due to the
     default.
<PAGE>

                       DANZER CORPORATION AND SUBSIDIARIES



FUNDS AVAILABILITY

     On a consolidated basis, as of July 31, 2001, the Company had approximately
$58 of cash and cash equivalents.

     Danzer  Industries,  U.S.  Rubber,  Champion and United each have revolving
credit lines available for working capital at each individual entity. Borrowings
under the credit facilities are available to the lesser of the maximum amount or
the borrowing base as defined in the credit  agreement.  At July 31, 2001, these
additional  current  availability under these credit facialities as supported by
the respective  borrowing base calculations were approximately  $532, $0, $0 and
$0 for Danzer Industries, U.S. Rubber, Champion and United, respectively.

     The Company generated net cash flow from operations during the seven months
ended July 31, 2001 of $220. Operating losses year to date were funded primarily
through borrowings under existing lines of credit.


REFINANCING ACTIVITIES

o    On August 15, 2001, the Company  completed the  refinancing of the existing
     debt of Danzer  Industries  with Bank of  America.  Terms of the  agreement
     provide for a $1,000 term note and a $1,000 line of credit.

o    U.S.  Rubber has a  subordinated  debt  obligation  to SerVaas,  Inc.  (the
     "Seller") in the amount of $1,750 and a  subordinated  raw material  supply
     agreement  with the Seller with a remaining  purchase  obligation  of $800.
     Management has reached an agreement in principal with SerVaas, Inc. for the
     company to acquire the  Subordinated  Note and Supply Agreement for $1,550.
     Counsel for the Company is in the process of completing  the  documentation
     of this purchase,  the net effect of which will be to reduce U.S.  Rubber's
     liabilities by approximately $1,000.

PARTNERS EQUITY TRANSACTIONS

     Obsidian Capital  Partners,  LP, the major  shareholder of the Company,  is
required  under the Plan of  Reorganization  to fund  through  the  purchase  of
additional  preferred  stock  certain  ongoing  administrative  expenses  of the
company to complete the Plan of  Reorganization,  complete all required  current
and prior year audits to meet the regulatory filing requirements, and ensure all
annual and quarterly SEC filings are completed to enable the registration of the
preferred stock issued to Obsidian  Capital  Partners,  LP. Such amount expended
through July 31, 2001  approximated  $645.  Management  anticipates this and any
additional items incurred will be converted to equity.

     Obsidian Capital  Partners,  LP has indicated that it is willing to convert
to Series C Preferred  Stock of the Company  $1,169 of advances from Partners to
the Company. Management anticipates this transaction will be concluded in 2002.


GUARANTEES OF OCP

     The Company has an agreement with Obsidian Capital Partners,  LP that gives
it the right to mandate a capital  contribution  from Obsidian Capital Partners,
LP if the lenders to U.S. Rubber or United were to declare a default.  In either
of those  events,  the Company  has the right to enforce a capital  contribution
agreement with Obsidian  Capital  Partners,  LP up to $1,620 on U.S.  Rubber and
$1,000 on United to fund the respective subsidiary's shortfall.  These payments,
if any,  would be applied  directly to reduce the respective  subsidiary's  debt
obligations to the lender.
<PAGE>

                       DANZER CORPORATION AND SUBSIDIARIES



RISK FACTORS

There are a number of risk factors related to the future results of the Company,
including those discussed in the following paragraphs.


Liquidity

     The  Company  cannot  be  certain  that it will have  sufficient  liquidity
available  under  existing lines of credit.  Four of the Company's  subsidiaries
were acquired in highly  leveraged  transactions.  Also,  three of the Company's
subsidiaries  have been in violation of certain  requirements  and  covenants in
their debt  agreements  relating to maintenance of specified  minimum ratios and
levels of earnings to funded debt and fixed charge coverage.  The Company cannot
be certain  whether it will be able to meet covenant  requirements  contained in
debt agreements. Although the Company has been able to obtain waivers of certain
violations, the Company cannot be certain that it will be able to obtain waivers
of such covenants if waivers are needed in the future.

     There is no assurance  that  lenders will  continue to lend to the Company.
Lenders' criteria for loans change and, if there is a further general tightening
of credit  standards,  the Company may not qualify for credit.  Further,  if the
Company's  financial  performance  continues to  deteriorate  from the manner in
which its various operations have historically performed,  the Company's lenders
may declare  defaults and refuse to advance funds under revolving  credit lines.
Under these  circumstances  the Company may not be able to obtain  credit on any
terms.


Integration Of Operations

     The Company  consists of a business  combination  of Obsidian  Enterprises,
Inc. and various recently purchased  manufacturing  entities of Obsidian Capital
Partners,  L.P. The management  resources to date have been spent on purchasing,
continuing  operations at  preacquisition  capability  after the  purchase,  and
integrating  subsidiary  operations  with the Obsidian  management.  The date of
purchase of each entity by the current management is:

Operating Entity                                Date of Purchase

U.S. Rubber Reclaiming, Inc.                    December 29, 2000
Pyramid Coach, Inc.                             December 20, 1999
Champion Trailer, Inc.                          May 2, 2000
Danzer Industries, Inc.                         June 21, 2001
United Expressline, Inc.                        July 31, 2001

     The Company is still in the  process of  resolving  issues  relating to the
integration  of the  operations  of  these  entities.  The  Company  nay  not be
successful in integrating these businesses or the integration may take longer or
be more costly than currently anticipated.


Market Risk

     The Company is exposed to market risk related to changes in interest  rates
on its debt. Approximately 36% of the Company's primary debt bears interest at a
variable rate. An interest rate increase of one percentage  point would increase
the Company's  interest expense over a one-year period by approximately  $128 at
current debt levels.
<PAGE>

                       DANZER CORPORATION AND SUBSIDIARIES



Ability To Attract And Retain Key Managers And Employees

     The Company's  ability to retain key  subsidiary  management  and employees
will be a significant factor in the Company's success.  The recent  acquisitions
of the four subsidiary entities and the changes in the Company's management have
made it even  more  important  for the  Company  to  focus on  retaining  former
managers and  employees.  In addition,  the Company  continues to seek to obtain
skilled  managers and employees and to provide  efficient  incentives for all of
the managers and employees of its subsidiary companies.


Competition

     The Company  faces  strong  competitors  in its coach  leasing  segment and
trailer  and  related  transportation   equipment   manufacturing  segment.  The
Company's coach leasing business  competes with a number of other companies that
lease luxury  coaches.  The Company's  success in the coach  leasing  segment is
dependent  upon its ability to meet  demand and match the quality and  amenities
sought after by its target market at competitive  prices.  The Company's trailer
and related  transportation  equipment  manufacturing  segment  competes  with a
number of companies, including a number who are much larger than the Company and
have equal or greater technical and financial resources.


Butyl Rubber Reclaiming Segment

     The Company's butyl rubber reclaiming  segment is highly dependent upon the
availability of raw materials.  The Company is facing increased  competition for
raw materials from foreign manufacturers as the supply of the scrap butyl rubber
from inner tubes  continues to decline.  The success of this segment will depend
in large measure upon the Company's ability to successfully  develop alternative
sources of raw  materials.  The demand for butyl rubber by some of the Company's
customers also is closely tied to the price of crude oil, with demand falling as
the price of crude oil falls.


Coach Leasing Segment

     The Company's  coach leasing  segment  leases luxury  coaches  primarily to
performers in the entertainment  industry. This segment is highly dependent upon
the state of the  general  economy  and its  effect on  entertainment  spending.
Consumer spending on entertainment tends to decline during recessionary  periods
when disposable  income is low. The  availability of quality contract drivers is
another factor that affects the success of the coach leasing segment.


Trailer And Related Transportation Equipment Manufacturing Segment

     A majority  of truck  bodies  manufactured  by the  Company are used in the
telecommunications  industry.  The success of the Company's  trailer and related
transportation   equipment  manufacturing  segment  is  dependent  upon  overall
economic  conditions  and in particular  on the state of the  telecommunications
industry.  Slightly  more  than  one-half  of the  Company's  revenue  from  the
manufacture of service truck bodies,  which is part of the Company's trailer and
related transportation equipment manufacturing segment, is derived from a single
customer.  The Company's  success in this segment is dependent to a large degree
upon the  continued  financial  health of this one  customer  and the  continued
strength of the Company's  relationship with this customer.  The loss of this or
another  significant  customer  could  have a  material  adverse  effect on this
segment of the Company's business.


Other Factors

     Management's  attention to day-to-day  operating issues and the solution of
such issues is ongoing due to the very recent  dates of  purchase.  Management's
ability  to  successfully  integrate  the  operating  companies  into  a  public
reporting  and  cohesive   operations  while  attempting  to  attain  profitable
operating results will be determinative of later success.  Employee  uncertainty
and  lack of  management  focus  during  the  initial  stages  of  purchase  and
continuing integration is disruptive to the business of each Company subsidiary.
Retention of employees  through support of the Company's  ongoing  manufacturing
capability,  ongoing  sales and marketing  efforts will be required,  but is not
assured.
<PAGE>

                       DANZER CORPORATION AND SUBSIDIARIES


     The Company's  ability to stabilize  operations  and to eventually  achieve
growth of each of its  segments  will  require  it to  implement  and expand its
operating and financial systems.  This  implementation  will carry a significant
disproportionate  cost to the  operations  in the next twelve  months which will
have a negative impact on revenues.  The Company expects any significant  growth
would place a strain on its  operational  resources and its  financial  systems.
Failure to effectively manage any growth would have a material adverse effect on
the Company's  business,  financial  condition,  results of operations  and cash
flows.



<PAGE>

                       DANZER CORPORATION AND SUBSIDIARIES





ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K.



     EXHIBITS
     The  exhibits  listed  in the  Exhibit  Index  are  incorporated  herein by
reference.


     REPORTS ON FORM 8-K
     None

                                   SIGNATURES

     Pursuant to the  requirements  of the Securities  Exchange Act of 1934, the
registrant  has duly  caused  this  report  to be  signed  on its  behalf by the
undersigned thereunto duly authorized.

                                 OBSIDIAN ENTERPRISES, INC.

August 25, 2003                  By:  /s/ Timothy S. Durham
Date                                --------------------------------------
                                    Timothy S. Durham, Chairman and
                                     Chief Executive Officer






<PAGE>




                                  EXHIBIT INDEX
<TABLE>

              Exhibit No.                             Description                             Location

<S>              <C>                     <C>                                                  <C>
                 31.1                    Sarbanes-Oxley    Act   Section   302                Attached
                                         Certification

                 31.2                    Sarbanes-Oxley    Act   Section   302                Attached
                                         Certification

                 32.1                    Sarbanes-Oxley    Act   Section   906                Attached
                                         Certification

                 32.2                    Sarbanes-Oxley    Act   Section   906                Attached
                                         Certification

</TABLE>