UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 10-Q
[ X ] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 1999
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
Commission File Number 0-28168
Strategic Capital Resources, Inc.
(Exact name of Registrant as specified in its charter)
Delaware 11-3289981
(State or other jurisdiction (I.R.S. Identification number)
of incorporation or organization)
2500 Military Trail North, Suite 260, Boca Raton, Florida 33431
(Address of principal executive offices)
(561)995-0043
(Registrant's Telephone Number, Including Area Code)
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Sections 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding twelve 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 { }
Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the latest practicable date. The number of shares of
common stock, par value $.001 per share, outstanding as of November 5, 1999
was 15,903,870.
STRATEGIC CAPITAL RESOURCES, INC.
INDEX
Part I. FINANCIAL INFORMATION
Item 1. Financial Statements Page Number
Condensed Consolidated Balance Sheets as of 3
September 30, 1999 (unaudited) and June 30, 1999.
Condensed Consolidated Statement of Operations 4
for the three months ended September 30, 1999, and
September 30, 1998.
(unaudited)
Condensed Consolidated Statement of Cash Flows 5
for the three months ended September 30, 1999, and
September 30, 1998.
(unaudited)
Notes to Condensed Consolidated Financial Statements 6-9
(unaudited)
Item 2. Management's Discussion and Analysis of Financial 10-14
Condition and Results of Operations.
Part II. OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K
No reports on Form 8-K were filed for the three months ended
September 30, 1999.
Signatures 15
STRATEGIC CAPITAL RESOURCES, INC.
AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
September 30 June 30
ASSETS 1999 1999
----------- -----------
Revenue producing assets:
Model homes on lease, at cost, net of accumulated
depreciation of $88,963 on June 30, 1999, and
$67,183 on September 30, 1999 $30,489,588 $34,612,978
Multi-family residential properties 10,227,999 -
----------- -----------
Total revenue producing assets 40,717,587 34,612,978
----------- -----------
Other assets:
Cash 806,540 690,719
Net assets realizable on divestiture 1,100,000 1,100,000
Deferred charges and other assets 719,075 690,087
----------- -----------
Total other assets 2,625,615 2,480,806
----------- -----------
Total assets $43,353,202 $37,093,784
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Mortgages payable $32,794,537 $26,642,294
Notes payable 1,315,907 1,315,907
Accounts payable & accrued expenses 554,361 597,415
Unearned rental revenue 210,446 168,246
----------- -----------
Total liabilities 34,875,251 28,723,862
----------- -----------
Stockholders' equity:
Convertible preferred stock, $.01 par value
5,000,000 shares authorized
400,000 shares issued and outstanding 4,000 4,000
Common stock, $.001 par value
25,000,000 shares authorized and 17,012,005 issued
15,903,870 shares outstanding 17,012 17,012
Additional paid-in capital 8,346,552 8,346,552
Treasury stock, 1,108,135 shares (282,786) (282,786)
Retained earnings 383,173 285,144
----------- -----------
Total stockholders' equity 8,467,951 8,369,922
----------- -----------
Total liabilities and stockholders' equity $43,343,202 $37,093,784
=========== ===========
See accompanying notes.
(3)
STRATEGIC CAPITAL RESOURCES, INC.
AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
Three Months Ended September 30, 1999 and September 30, 1998
(Unaudited)
Three Months Ended
September 30,
1999 1998
--------- ---------
Revenues:
Model home lease revenue $ 937,701 $1,220,861
Model home sales 7,786,215 6,418,788
Multi-family residential income 322,612 -
Other income 109,068 29,610
----------- -----------
Total Revenues 9,155,596 7,669,259
----------- -----------
Costs and expenses:
Interest expense 729,712 771,236
Cost of model homes sold 7,713,126 6,129,095
Multi-family residential costs 87,699 -
Depreciation and amortization 122,274 146,877
Corporate 335,755 364,711
----------- -----------
Total Operating Expenses 8,988,566 7,411,919
----------- -----------
Income before income taxes 167,030 257,340
Deferred income tax expense 49,000 77,138
----------- -----------
Net income 118,030 180,202
Preferred stock distribution 30,000 -
----------- -----------
Income applicable to common shareholders 88,030 180,202
=========== ===========
Net income (loss) per share
Basic $ 0.01 0.01
Diluted $ 0.00 0.01
Weighted average number of shares
Basic 15,903,870 16,858,107
Diluted 18,978,851 18,071,897
See accompanying notes.
(4)
STRATEGIC CAPITAL RESOURCES, INC.
AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
Three Months Ended September 30, 1999 and September 30, 1998
(Unaudited)
Three Months Three Months
Ended Ended
9/30/99 9/30/98
----------- ----------
Net income $ 167,030 $ 180,202
----------- ----------
Adjustments to reconcile net loss to net cash
provided by operating activities:
Amortization expense 112,440 115,063
Depreciation expense 9,835 31,814
Gain on sale of model homes (73,089) (289,693)
Changes in assets and liabilities:
(Increase) decrease in miscellaneous assets (141,752) 105,968
Increase in accounts payable/accrued expenses 24,621 222,087
Increase in unearned rental revenue 42,200 33,940
----------- ----------
Total adjustments (25,745) 219,179
----------- ----------
Net cash provided by operating activities 141,285 399,381
----------- ----------
Cash flows from investing activities
Purchase of model homes (2,124,640) (1,486,434)
Proceeds from sale of model homes 1,343,766 1,341,189
Capital expenditures - (14,594)
----------- ----------
Net cash used in
investing activities (780,874) (159,839)
----------- ----------
Cash flows from financing activities:
Proceeds from mortgages payable 1,116,858 635,100
Principal payments on mortgages payable (225,232) (361,231)
Deferred financing costs (106,216) (186,834)
Proceeds from stockholder loans - 258,000
Purchase of treasury stock - (262,378)
Preferred distribution payable (30,000) -
----------- -----------
Net cash provided by
financing activities 755,410 82,657
----------- -----------
Net increase (decrease) in cash 115,821 322,199
Cash at beginning of period 690,719 365,227
----------- -----------
Cash at end of period $ 806,540 $ 687,426
=========== ===========
Supplemental disclosure of cash flow information:
Interest paid - $762,615 $698,080
See accompanying notes.
(5)
STRATEGIC CAPITAL RESOURCES, INC.
AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
September 30, 1999
(unaudited)
Note 1. Unaudited Interim Financial Statements
The accompanying unaudited financial statements have been prepared in
accordance with the Securities and Exchange Commission instructions for Form
10-Q and 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 only of normal
recurring adjustments considered necessary for a fair presentation, have been
included. Operating results for any quarter are not necessarily indicative of
the results for any other quarter or for the full year.
These statements should be read in conjunction with the financial statements
of Strategic Capital Resources, Inc. and notes thereto included in the
Company's Annual Report on Form 10-K for the fiscal year ended June 30, 1999.
Note 2. Earnings Per Share
Basic and diluted earnings per share are calculated as follows:
Three Months Ended
September 30,
1999 1998
--------- ----------
Basic:
Income(loss) applicable to
common shareholders 88,030 180,202
Weighted average shares
outstanding during the period 15,903,870 16,858,107
Basic $ 0.01 0.01
Diluted:
Income(loss) applicable to
common shareholders 88,030 180,202
Weighted average shares
outstanding during the period 15,903,870 16,858,107
Effect of dilutive securities:
Stock Options 1,089,384 269,737
Warrants 1,985,597 944,053
--------- ----------
Diluted weighted common
shares outstanding 18,978,851 18,071,897
Diluted $ 0.00 0.01
(6)
Note 3. Multi-family Residential Property Acquisition
On July 15, 1999 the Company purchased a 288 unit multi-family residential
property in Jacksonville, Florida for a purchase price of $10,228,000. The
purchase price was paid as follows:
Assumption of existing first mortgage $ 4,928,000
New loan 5,300,000
-----------
Total purchase price $10,228,000
===========
$1,500,000 of the purchase price is to be utilized to improve, modernize and
enhance the value of the property.
Simultaneously, the Company entered into an operation, maintenance, and
management agreement which provides for payment to the Company of a minimum
income stream per month. The agreement also requires the management company
to purchase the property at the end of five years. The performance under the
agreement is guaranteed jointly and severely by two major insurance companies
rated "AAA" and "BB" by Standard & Poors.
Note 4. Commitments & Contingencies
The Company makes preliminary commitments to acquire assets and to enter into
various types of leasing or financing arrangements as described below. The
Company discloses such commitments as part of its routine reporting
requirements. However, such preliminary commitments are subject to routine
changes in size, as well as closing time, prior to finalization. Such changes
arise from a variety of factors, including changes in client needs, economic
conditions, completion of financing agreements, ability of clients to obtain
regulatory approvals and other factors that affect the real estate industry.
Model home purchase commitments
The Company has committed to acquire 27 model homes in California and Nevada
at an approximate cost of $20.8 million. It is anticipated that this
transaction will close prior to the end of December 1999. The closing is
subject to completion of due diligence, receipt of satisfactory appraisals,
formal documentation, and successful completion of financing.
Model home sales contracts
The Company has sale contracts pending on ten (10) model homes. The
aggregate sales price for the ten homes is $3,390,924, which the Company
originally purchased for $3,148,154.
(7)
Commercial real estate purchase contracts
The Company reached agreements with two clients to acquire the following
commercial properties:
Nature of Approximate
real estate Location purchase price
- ------------------------------------ -------- --------------
Office buildings (4) Nevada $16,650,000
Manufacturing/warehouse facility Tennessee 20,500,000
together with manufacturing equipment
-----------
Total $37,150,000
===========
The agreements are subject to the following conditions; (I) satisfactory
completion of due diligence of the assets to be acquired, (ii) the execution
of bank or institutional financing, and (iii) agreement to final wording of
all related legal documentation.
Real estate acquisition and development commitments
The Company reached an agreement in principal with a homebuilder to acquire a
fully entitled parcel of land, provide development funding, and sell the
finished lots over a pre-agreed term to the homebuilder. The following is an
outline of the transaction:
Land Acquisition Development Total
location Cost funding cost
- ------------- ----------- ---------- ------------
Arizona $ 2,654,331 $5,050,000 $ 7,704,331
The agreement is subject to the following conditions; (I) satisfactory
completion of due diligence of the assets to be acquired, (ii) the execution
of bank or institutional financing, and (iii) agreement to final wording of
all related legal documentation.
Financing Activities
In order to finance its expansion, the Company conducts ongoing negotiations
with financial institutions to raise funds through debt and/or equity.
At September 30, 1999, the Company had outstanding $32.8 million in secured
loans provided by financial institutions and $1.3 million in loans from
shareholders. The Company borrows under various revolving and term loan
credit facilities, and at September 30, 1999, had available additional
borrowings of $20 million.
Legal Proceedings
Reference is made to the Company's annual report on Form 10-K for its fiscal
year ended June 30, 1999.
The Company is not presently involved in any other material litigation nor,
to its knowledge, is any material litigation threatened against the Company
or its properties, other than routine litigation arising in the ordinary
course of business.
(8)
Note 5. Subsequent Events
On October 29, 1999, the Company purchased 31 model homes, 23 in California
and 8 in North Carolina, at an aggregate cost of $8,479,373 with two new
divisions of an existing homebuilder client. On November 2, 1999, the Company
purchased 39 model homes in California at an aggregate cost of $9,663,894 with
a new homebuilding client. The following is a summary of model homes owned by
the Company as of the report date.
Amount Units
------------ -------
Balance 9/30/99 $ 30,556,770 135
Model Homes Acquired 10/29/99 6,603,500 23
Model Homes Acquired 10/29/99 1,875,873 8
Model Homes Acquired 11/02/99 9,663,894 39
Model Homes Sold 10/01/99 thru the report date (1,349,028) (5)
------------ -------
Total Model Homes as of the report date 47,351,009 200
============ =======
On October 29, 1999, the Company drew down $1,676,744 under an existing
revolving loan facility which it utilized to purchase eight (8) model homes in
North Carolina. On the same date, the Company also closed on a new $6,603,500
term loan which it utilized to purchase twenty-three (23) model homes in
California.
On November 2, 1999, the Company drew down $8,214,166 under an existing
revolving loan facility which it utilized to purchase thirty-nine (39) model
homes in California.
As of the report date, the Company has available $10,000,000 under existing
revolving credit facilities.
(9)
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
OVERVIEW
Strategic Capital Resources, Inc. (the "Company" or "SCRI"), a Delaware
Corporation was organized in November 1995. The Company's principal
operations consist of the following business lines:
1) The purchase and leaseback on a "triple net" basis of fully furnished
model homes complete with options and upgrades to major publicly traded
homebuilders and real estate developers.
2) The land acquisition and contract development program for major publicly
traded homebuilders and real estate developers. The Company purchases
the real estate, simultaneously enters into a bonded (not to exceed)
development contract with the builder supported by a performance
(completion) bond, who then develops the real estate. The builder
simultaneously contracts to purchase the finished lots from the Company
on a scheduled basis usually not to exceed three (3) years.
3) The purchase and leaseback of commercial real estate including office
buildings, multi-family residential properties, industrial, manufacturing
and warehouse facilities. The Company purchases the real estate and
enters into fixed term agreements with the clients which will allow the
Company to recover principal and earn a specific return. The clients
performance is supported by surety bonds issued by insurance companies
rated "A" to "AAA" by the major rating agencies.
Since its inception, the Company and its special-purpose bankruptcy-remote
subsidiary have purchased a total of 335 model homes and sold 200, resulting in
a portfolio of 135 model homes owned at September 30, 1999. All of the Company's
clients are major, publicly-traded homebuilders. The following is a summary of
model home purchases and sales by year since inception:
Fiscal Units Amount Units Cost of Model
Year Ended Purchased Purchased Sold Homes Sold
- ---------- --------- ----------- ---- ------------
6/30/96 61 $11,836,729 3 $ 503,165
6/30/97 75 14,512,772 23 4,437,087
6/30/98 110 26,170,860 49 8,892,378
6/30/99 61 16,813,539 95 20,799,329
6/30/2000 (YTD) 28 3,432,326 30 7,577,497
--------- ----------- ---- ------------
Total 335 $72,766,226 200 $42,209,456
--------- ----------- ---- ------------
Model Homes on Lease at cost at September 30, 1999 - 135 - $30,556,770
(10)
A summary of the operating results of Strategic Capital Resources, Inc. and
subsidiaries for the three months ended September 30, 1999, and September 30,
1998 are presented below.
Three Months Three Months
Ended Ended
September 30 September 30
1999 % 1998 %
-----------------------------------
Revenues:
Model home lease revenue $ 937,701 10% $1,220,861 16%
Model home sales 7,786,215 85% 6,418,788 84%
Multi-family residential income 322,612 4% -
Other income 109,068 1% 29,610 -
-----------------------------------
Total revenues $9,155,596 100% 7,669,259 100%
-----------------------------------
Costs and expenses:
Interest expense 729,712 8% 771,236 10%
Cost of model home sales 7,713,126 84% 6,129,095 80%
Multi-family residential expenses 87,699 1% -
Depreciation & amortization 122,274 1% 146,877 2%
Corporate 335,755 4% 364,711 5%
-----------------------------------
Total costs and expenses 8,988,566 98% 7,411,919 97%
-----------------------------------
Income before income taxes 167,030 2% 257,340 3%
Deferred income tax expense 49,000 1% 77,138 1%
-----------------------------------
Net income $118,030 1% 180,202 2%
===================================
Results of Operations:
Three Months Ended September 30, 1999 compared to September 30, 1998.
For the period from July 1, 1999 through September 30, 1999, the Company had
revenues of $9,155,596 of which lease revenues on model homes totaled
$937,701, multi-family residential property income totaled $322,612, and
revenues from the sale of model homes were $7,786,215. Net income for the
period was $118,030 compared to net income of $180,202 for the prior year
fiscal period. The decrease was primarily attributable to decreased gains on
the sale of model homes. Gain on the sale of model homes totalled $73,000
for the quarter ended September 30, 1999 compared to $289,000 for the prior
year comparable quarter, a decrease of $216,000.
The Company's lease revenues decreased approximately $283,000 (a 23% decrease)
during the three months ended September 30, 1999 as compared to the three
months ended September 30, 1998. This decrease is due to the reduction of
model homes on lease from the prior year fiscal period. ($30.5 million at
September 30, 1999 compared to $34.7 million at September 30, 1998)
The Company generated $322,612 in multi-family residential income for the
three months ended September 30, 1999. No multi-family residential income was
generated for the prior year quarter end. The increase was due to the purchase
of a 288 unit multi-family residential property on July 15, 1999.
(11)
Corporate costs decreased from $364,711 for the quarter ended September 30,
1998 to $335,755 for the quarter ended September 30, 1999, representing a 8%
decrease. Corporate costs as a percentage of revenues is consistent with
the prior year fiscal quarter.
Model Homes
Model homes on lease have decreased to $30,556,771 at September 30, 1999 from
$39,999,565 at September 30, 1998, a decrease of 24%.
A breakdown of model home costs and units by state is as follows:
# Model Homes Model Home # Model Homes Model Home
Owned at Cost Owned at Cost
State 9/30/99 9/30/99 9/30/98 9/30/98
- ------------------------------------------------------------------------------
Arizona 19 $ 2,124,640 - $ -
Colorado 5 1,086,175 13 2,854,187
Florida 12 2,592,506 38 8,398,145
Minnesota 1 258,377 - -
Nevada 13 1,667,790 - -
New Jersey 54 14,851,650 76 19,644,793
New York 6 2,386,435 6 2,404,000
North Carolina - - 3 694,372
Pennsylvania 18 4,409,042 23 5,166,369
Texas 2 342,430 2 342,430
Utah 5 837,726 - -
Virginia - - 2 495,269
------- ------------- ------- ------------
Total 135 $ 30,556,771 163 $ 39,999,565
======= ============= ======= ============
A breakdown of lease rental revenues by state is as follows:
Lease Revenues Lease Revenues
From 7/1/99 From 7/1/98
State to 9/30/99 to 9/30/98
- ------------------------------------------------------------------------------
Arizona $ 708 $ -
Colorado 32,585 98,080
Florida 91,483 298,808
Minnesota 15,610 -
Nevada 35,935 -
New Jersey 520,471 547,834
New York 76,655 68,085
North Carolina 5,478 20,832
Pennsylvania 148,503 156,115
Texas 10,273 16,249
Utah - -
Virginia - 14,858
----------- -----------
Total $ 937,701 $1,220,861
=========== ===========
The average purchase price of model homes acquired by the Company since
inception was approximately $217,000. For the quarter ended September 30,
1999, the Company sold thirty (30) model homes for total sales price of
$7,786,215 less costs of sales of $7,713,126 for a net gain of $73,089.
(12)
Liquidity and Capital Resources
The Company's principal business, leasing of model homes and real estate
acquisition and contract development, is a capital-intensive operation
requiring constant infusions of cash as the number, size, and complexity of
transactions in which the Company is involved increases. To date, this
business has been financed by equity capital contributions, loans made by
shareholders, and secured loans from financial institutions.
These capital contributions and loans have been adequate to permit the Company
to carry on operations to date. However, it may be necessary to finance the
expansion of operations over the coming fiscal year with additional funds
raised through the issuance of debt or equity securities. Should the need
arise, the Company will complete a securities offering of debt or equity prior
to the end of fiscal 2000. The net proceeds of an offering, together with
existing cash and credit facilities, as well as new facilities obtained on an
"as needed" basis, should enable the Company to finance its growing level of
operations. (See Financing Activities for additional information.)
Cash Flow - Three Months Ended September 30, 1999.
Net cash provided by operating activities comprised net income of $167,030,
plus net adjustments for non-cash items of $49,186, offset by a net change in
other operating assets and liabilities of $74,931.
Net cash used in investing activities comprised proceeds from sale of model
homes of $1,343,766 offset by $2,124,640 in model home purchases.
Net cash provided by financing activities comprised proceeds from mortgages
payable of $1,116,858, offset by deferred financing costs of $106,216,
principal payments on mortgages payable of $225,232, and preferred
distributions of $30,000.
Trends in Operations
The Company's operations continue to grow at an accelerated rate. Such growth
has resulted from the ongoing acquisition of model homes under lease and the
acquisition of multi-family residential properties. At September 30, 1999, the
Company had 135 model homes on lease which were purchased at a cost of
approximately $30.5 million, and multi-family residential properties acquired
at a cost of $10,228,000. Since October 1, 1999 and through the report date,
the Company acquired an additional 70 model homes at a cost of $18.1 million,
sold 5 model homes with a cost of $1.3 million, resulting in a portfolio of
200 model homes acquired at a cost of $47.3 million as of the report date.
(See Note 5 to Condensed Consolidated Financial Statements)
During the fiscal year ended June 30, 1999, the Company added a new line of
business, the purchase and leaseback of commercial real estate properties
which include office buildings, multi-family residential properties,
industrial, manufacturing and warehouse facilities. The Company purchases the
real estate and enters into fixed term agreements with its clients. The
clients performance is supported by surety bonds issued by insurance companies
rated "A" to "AAA" by the major rating agencies.
(13)
Year 2000 Issues
SCRI's State of Readiness
SCRI has completed a review of its software and hardware and determined,
through a combination of internal testing and vendor representations that
their products have been tested and are compliant.
The Costs to Address SCRI's Year 2000 Issues
Based on current estimates and plans, SCRI believes the costs of addressing
Year 2000 issues will not be material.
The Risks and Worst Case Scenario of SCRI's Year 2000 Issues
SCRI believes the most reasonable worst case scenario will be indirect in
nature involving third parties such as clients, vendors and suppliers which
may not have successfully dealt with their Year 2000 issues. SCRI continues
to assess the key third parties that it relies upon, however, SCRI has not yet
been assured that all of the computer systems of its clients, vendors and
suppliers will be Year 2000 compliant. For example, if suppliers of SCRI's
energy or telecommunications fail to become Year 2000 compliant, such failure
could have an adverse effect on SCRI's ability to conduct daily operations or
to communicate with its clients and vendors. While SCRI continues to analyze
these risks, it is possible that information relevant to such analysis will
not be made available to SCRI, or that potential solutions will not be within
SCRI's control. In addition, there can be no guarantee that SCRI's efforts
will prevent a material adverse impact on its results of operations, financial
condition and cash flows. SCRI believes that its readiness program, including
the contingency plans discussed below, should significantly reduce the adverse
effect any disruption may have.
SCRI's Contingency Plans
SCRI will continue to monitor and evaluate its key clients, vendors and
suppliers to determine the extent that SCRI is vulnerable to those third
parties' possible failure to become Year 2000 compliant. SCRI expects to
develop contingency plans throughout 1999, on an as needed basis to address
these concerns, where reasonable to do so. These plans may include
identifying and securing alternate suppliers of services and other measures
considered appropriate by management. Once developed, the contingency plans
will be continually refined, as additional information becomes available.
Forward Looking Statements
This report contains certain forward-looking statements within the meaning
of Section 27A of the Securities Act of 1933 and Section 21E of the
Securities Exchange Act of 1934, as amended (the "Exchange Act") concerning
the Company's operations, economic performance and financial conditions,
including, in particular, the likelihood of the Company's success in
developing and bringing to market the products which it currently has under
development, as well as procuring the necessary financing to acquire these
products. These statements are based upon a number of assumptions and
estimates which are inherently subject to significant uncertainties, and
contingencies, many of which are beyond the control of the Company and reflect
future business decisions which are subject to change. Some of these
assumptions inevitably will not materialize, and unanticipated events will
occur which will affect the Company's results. Consequently, actual results
will vary from the statements contained herein and such variance may be
material. Prospective investors should not place undue reliance on this
information.
(14)
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 of the
undersigned thereunto duly authorized.
STRATEGIC CAPITAL RESOURCES, INC.
By: /s/John P. Kushay
John P. Kushay, Treasurer
Chief Financial Officer and
Chief Accounting Officer
(Duly Authorized Officer)
Date: November 10, 1999
(15)
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
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