FORM 10-QSB
SECURITIES AND EXCHANGE COMMISSION
Washington D.C. 20549
Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act
of 1934
For the quarterly period ended June 30, 1996
Commission File No. 0-26760
NORTH AMERICAN RESORTS, INC.
(Exact name of registrant as specified in its charter)
Colorado 84-126065
(State or other jurisdiction (IRS Employer Identification No.)
of Incorporation or Organization)
315 East Robinson Street, Orlando, Florida 32801
(Address of principal executive office) (Zip Code)
Registrant's telephone number: (407) 841-1917
Indicate by check mark whether the Registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the Registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days. Yes__X__ NO____
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NORTH AMERICAN RESORTS, INC.
CONDENSED CONSOLIDATED BALANCE SHEET
FOR THE QUARTER ENDED JUNE 30, 1996
ASSETS
June 30, December 31,
1996 1995
-------- ------------
(Unaudited)
<S> <C> <C>
Current Assets
Cash $ 31,035 $ 1,080
Inventory 1,006,963 1,004,837
Deposits 229 229
Employee loans 7,595 26,212
Accounts receivable 351,512 250,661
---------- ----------
Total Current Assets 1,397,334 1,283,019
---------- ----------
Furniture, Equipment, and
Leasehold Improvements
Furniture 7,075 7,075
Equipment 104,391 92,957
Leasehold improvements 9,153 9,153
---------- ----------
120,619 109,185
Less Accumulated Depreciation 17,946 7,327
---------- ----------
102,673 101,858
---------- ----------
Other Assets
Cypress Island 267,134 27,500
Prepaid expenses 322,485 --
Time share weeks 55,000 55,000
Franchise loans receivable 50,000 50,000
Loan receivable 207,924 --
Organization costs,
net of amortization of $2,840 and $1,700 8,490 9,630
Goodwill,
net of amortization of $30,520 and $18,520 339,885 351,885
---------- ----------
Total Other Assets 1,250,918 494,015
---------- ----------
TOTAL ASSETS $2,750,925 $1,878,892
========== ==========
See Notes to Condensed Consolidated Financial Statements
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LIABILITIES AND STOCKHOLDERS' EQUITY
June 30, December 31,
1996 1995
-------- ------------
(Unaudited)
Current Liabilities
Accounts payable $ 162,394 $ 89,193
Advance customer deposits 125,978 130,368
Room rent reserve 80,391 30,769
Accrued wages 2,409 4,817
Accrued interest payable 1,500 1,500
Withholding payable 711 4,711
Contract pay 23,126 23,126
Tickets payable 25,050 --
----------- -----------
Total Current Liabilities 421,559 284,484
----------- -----------
Long-Term Debt 233,196 177,138
----------- -----------
Deferred Revenue
Memberships 597,863 598,674
Franchise sales 50,000 50,000
----------- -----------
Total Deferred Revenue 647,863 648,674
----------- -----------
Capital
Common stock 1,518,560 1,062,060
Preferred stock 710,937 710,937
Retained earnings (781,190) (1,004,401)
----------- -----------
Total Capital 1,448,307 768,596
----------- -----------
TOTAL LIABILITIES AND CAPITAL $ 2,750,925 $ 1,878,892
=========== ===========
NOTE: The balance sheet at December 31, 1995 has been derived from the
audited financial statements at that date but does not include all
the information and footnotes required by generally accepted
accounting principles for complete financial statements.
NORTH AMERICAN RESORTS, INC.
CONDENSED CONSOLIDATED STATEMENT OF EARNINGS
FOR THE QUARTER ENDED JUNE 30, 1996
Three Months Six Months
Ended Ended
June 30, June 30,
1996 1996
------------ ---------
Sales
Sales $ 752,383 $1,599,771
Prepaid packages redeemed 58,487 92,990
Commissions 33,984 55,831
Other income 215 306
---------- ----------
Net Sales 845,069 1,748,898
---------- ----------
Cost and Expenses
Cost of sales 318,969 675,977
General and administrative expenses 404,373 826,760
Depreciation and amortization 11,880 22,950
---------- ----------
Total Cost and Expenses 735,222 1,525,687
---------- ----------
NET PROFIT BEFORE TAXES $ 109,847 $ 223,211
========== ==========
See Notes to Condensed Consolidated Financial Statements
NORTH AMERICAN RESORTS, INC.
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
Three Months Six Months
Ended Ended
June 30, June 30,
1996 1996
------------ -----------
Cash Flows From Operations $(136,610) $(471,169)
- --------------------------
Cash Flows From Investing Activities
Purchase of furniture and equipment -- (11,434)
--------- ---------
Net Cash Provided by Investing Activities -- (11,434)
--------- ---------
Cash Flows From Financing Activities
Net change in debt 82,497 56,058
Issue of Stock 71,000 456,500
--------- ---------
Net Cash Provided by Financing Activities 153,497 512,558
--------- ---------
Net Increase in Cash $ 16,887 $ 29,955
- -------------------- ========= =========
See Notes to Condensed Consolidated Financial Statements
NORTH AMERICAN RESORTS, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
FOR THE QUARTER ENDED JUNE 30, 1996
NOTE A BASIS OF PRESENTATION
The accompanying unaudited condensed consolidated financial statements
have been prepared in accordance with generally accepted accounting
principles for interim financial information and with the instructions to
Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not
include all of the information and footnotes required by generally
accepted accounting principles for complete financial statements. In the
opinion of management, all adjustments (consisting of normal recurring
accruals) considered necessary for a fair presentation have been included.
Operating results for the six months ended June 30, 1996 are not
necessarily indicative of the results that may be expected for the year
ended December 31, 1996. The Company started operations April 1, 1995 and,
thus, there was not a full year of operations in 1995. For further
information refer to the refer to the financial statements and footnotes
thereto included in the North American Resorts, Inc. annual report on Form
10-KSB for the period ended December 31, 1995.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITIONS AND RESULTS OF OPERATIONS
The Company had no operations until April of 1995, thus it is impossible
to make a comparison of results of operations and financial conditions with
other periods. The business operations started with the sale of low cost
vacations in the Orlando, Florida area. Income for the second quarter was the
sale of memberships, hotel rooms, airline tickets and car rentals, gross sales
for these was $845,069, and expenses directly associated with these sales was
$318,969, other expenses were $416,253, leading to a net profit of $109,847.
There are no commitments for capital expenditures at this time. There are
no known trends expected to have a material impact on the Company. There are no
significant elements of income or loss that do not arise from the Company's
continuing operations.
ITEM 1. LEGAL PROCEEDINGS
None
ITEM 2. CHANGES IN SECURITIES
None
ITEM 3. DEFAULTS UPON SENIOR SECURITIES
None
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
None
ITEM 5. OTHER INFORMATION
None
ITEM 6. EXHIBITS AND REPORTS ON FORM 8K
None
SIGNATURES
In accordance with Section 12 of the Securities Exchange Act of 1934, the
registrant caused this registration statement to be signed on its behalf by the
undersigned thereunto duly authorized.
Date:
North American Resorts, Inc.
By /s/________________________
Brian Nelson, President
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<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> APR-01-1996
<CASH> 31,035
<SECURITIES> 0
<RECEIVABLES> 351,512
<ALLOWANCES> 0
<INVENTORY> 1,006,963
<CURRENT-ASSETS> 1,397,334
<PP&E> 120,619
<DEPRECIATION> 17,946
<TOTAL-ASSETS> 2,750,925
<CURRENT-LIABILITIES> 451,559
<BONDS> 0
0
0
<COMMON> 1,518,560
<OTHER-SE> 710,937
<TOTAL-LIABILITY-AND-EQUITY> 2,750,559
<SALES> 845,069
<TOTAL-REVENUES> 845,069
<CGS> 318,969
<TOTAL-COSTS> 735,222
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 109,847
<INCOME-TAX> 0
<INCOME-CONTINUING> 109,847
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 109,847
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
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