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 March 31, 1997
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 of (IRS Employer Identification No.)
Incorporation or Organization)
301 East Hillcrest 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____
<PAGE>
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITIONS AND RESULTS OF OPERATIONS
The Company had slightly higher net sales for the quarter ending March 31,
1997 than in 1996; $390,186 as opposed to $316,458. Costs and expenses however
were much higher; $550,154 as opposed to $139,695, which led to a loss of
$159,968 in 1997 as compared to a gain of $176,763 in 1996. There were no income
taxes due because of the loss in this quarter. This translated to a loss of $.01
per share in 1997, compared to a gain of $.06 per share in 1996.
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
<PAGE>
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: August 14, 1997
North American Resorts, Inc.
By ___/s/________________________
Anthony Arrigoni, Vice, President
<PAGE>
NORTH AMERICAN RESORTS, INC.
COMPILATION OF FINANCIAL STATEMENTS
THREE MONTHS ENDED MARCH 31, 1997
GARY A. LaPALME, C.P.A.
CERTIFIED PUBLIC ACCOUNTANTS
Minneapolis, Minnesota
<PAGE>
NORTH AMERICAN RESORTS, INC.
CONTENTS
THREE MONTHS ENDED MARCH 31, 1997
Page
Accountant's Compilation Report 2
Financial Statements
Condensed Balance Sheets 3
Condensed Statements of Earnings 4
Condensed Statements of Cash Flows 5
Notes to Financial Statements 6
<PAGE>
GARY A. LaPALME, C.P.A.
CERTIFIED PUBLIC ACCOUNTANTS
MAPLE GROVE EXECUTIVE CENTRE
7200 HEMLOCK LANE, SUITE 110
MAPLE GROVE, MINNESOTA 55369
(612) 424-5330
FAX (612) 424-2601
MEMBER
MINNESOTA SOCIETY OF C.P.A.s
AMERICAN INSTITUTE OF C.P.A.s
Board of Directors and Stockholders
NORTH AMERICAN RESORTS, INC.
I have compiled the accompanying balance sheet of NORTH AMERICAN RESORTS, INC.
as of March 31, 1997, and the related statements of earnings for the three
months then ended, in accordance with standards established by the American
Institute of Certified Public Accountants.
A compilation is limited to presenting in the form of financial statements
information that is the representation of management. I have not audited or
reviewed the accompanying financial statements and, accordingly, do not express
an opinion or any other form of assurance on them.
Management has elected to omit substantially all of the disclosures and the
statement of cash flows required by generally accepted accounting principles. If
the omitted disclosures and statement of cash flows were included in the
financial statements, they might influence the user's conclusions about the
company's financial position, results of operations, and cash flows.
Accordingly, these financial statements are not designed for those who are not
informed about such matters.
/s/ Gary A. LaPalme
Gary A. LaPalme, C.P.A.
Certified Public Accountants
Minneapolis, Minnesota
May 27, 1997
<PAGE>
NORTH AMERICAN RESORTS, INC.
CONDENSED BALANCE SHEETS
<TABLE>
<CAPTION>
ASSETS
March 31, December 31,
1997 1996
----------- -----------
(Unaudited) (*Note)
<S> <C> <C>
Current Assets
Cash $ (8,149) $ 869
Accounts receivable-trade 8,322 146,877
Accounts receivable-other 105,974 114,993
----------- -----------
Total Current Assets 106,147 262,739
----------- -----------
Furniture, Leasehold Improvements
And Equipment-Net 26,361 25,905
----------- -----------
Other Assets 825,970 832,710
----------- -----------
TOTAL ASSETS $ 958,478 $ 1,121,354
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
Accounts payable $ 151,919 $ 190,512
Current portion of long-term debt 5,192 10,402
Loans from stockholders 137,152 163,563
Accrued expenses 98,561 103,517
Reserve for discontinued operations -- 49,493
----------- -----------
Total Current Liabilities 392,824 517,487
----------- -----------
Deferred Revenues 460,942 481,606
----------- -----------
Long-Term Debt, less current portion 7,293 8,773
----------- -----------
Stockholders' Equity
Preferred stock, no par value, 50,000,000
shares authorized, 771,465 issued
and outstanding in 1996 and 539,965 shares
issued and outstanding March 31, 1997 1,306,717 1,575,373
Common stock, no par value, 100,000,000
shares authorized, 60,657,446 issued
and outstanding in 1996 and 64,372,467
shares issued and outstanding March
31, 1997 3,562,796 3,442,141
Rescinded Stock -- (291,900)
Accumulated deficit (4,772,094) (4,612,126)
----------- -----------
Total Stockholders' Equity 97,419 113,488
----------- -----------
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $ 958,478 $ 1,121,354
=========== ===========
</TABLE>
*Note: The balance sheet at December 31, 1996 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.
See Notes To Condensed Financial Statements
<PAGE>
NORTH AMERICAN RESORTS, INC.
CONDENSED STATEMENTS OF EARNINGS
(Unaudited)
Three Months Ended
March 31
----------------------------
Net Sales $ 390,186 $ 316,458
------------ -----------
Cost and Expenses
Direct costs-memberships 181,151 29,275
General and administrative 335,666 49,814
Salaries and related expenses 24,552 57,310
Depreciation and amortization 8,785 3,296
------------ -----------
550,154 139,695
------------ -----------
Earnings (Loss) Before Taxes (159,968) 176,763
Income Taxes -- (60,100)
------------ -----------
Net Earnings (Loss) $ (159,968) $ 116,663
============ ===========
Net Earnings Per Share $ (.01) $ .06
============ ===========
Weighted Average Shares Outstanding 65,749,045 1,805,978
============ ===========
See Notes To Condensed Financial Statements
<PAGE>
NORTH AMERICAN RESORTS, INC.
STATEMENT OF CASH FLOWS
(Unaudited)
Three Months Ended
March 31
-----------------------
Cash Flows From Operating Activities $(117,315) $ 102,585
Cash Flows From Investing Activities (2,501) (475,722)
Cash Flows From Financing Activities 110,798 324,561
--------- ---------
Net Decrease in Cash $ (9,018) $ (48,576)
========= =========
See Notes To Condensed Financial Statements
<PAGE>
NORTH AMERICAN RESORTS, INC.
NOTES TO CONDENSED FINANCIAL STATEMENTS
MARCH 31, 1997
(Unaudited)
Note A BASIS OF PRESENTATION
The accompanying unaudited condensed 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 three months ended March 31, 1997
are not necessarily indicative of the results that may be expected for
the year ended December 31, 1997. For further information, refer to the
refer to the financial statements and footnotes thereto included in the
annual report on Form 10-KSB for the period ended December 31, 1996.
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-START> JAN-01-1997
<PERIOD-END> MAR-31-1997
<CASH> (8,149)
<SECURITIES> 0
<RECEIVABLES> 114,296
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 106,147
<PP&E> 26,361
<DEPRECIATION> 0
<TOTAL-ASSETS> 958,478
<CURRENT-LIABILITIES> 392,824
<BONDS> 0
0
1,306,717
<COMMON> 3,562,796
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 958,478
<SALES> 390,186
<TOTAL-REVENUES> 390,186
<CGS> 0
<TOTAL-COSTS> 550,154
<OTHER-EXPENSES> 0
<LOSS-PROVISION> (159,968)
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> (159,968)
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (159,968)
<EPS-PRIMARY> (.01)
<EPS-DILUTED> (.01)
</TABLE>
