<PAGE>
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-QSB
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the Quarterly Period Ended September 30, 1998
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the Transition Period from _________ to __________
Commission File No. 1-12559
CRAGAR INDUSTRIES, INC.
(Name of small business issuer in its charter)
DELAWARE 86-0721001
(State or other jurisdiction (I.R.S. Employer Identification No.)
of incorporation or organization)
4636 NORTH 43RD AVENUE, PHOENIX, ARIZONA 85031
(Address of principal executive offices)
(602) 247-1300
(Issuer's telephone number)
Check whether the issuer (1) filed all reports required to be filed by
Section 13 or 15(d) of the Exchange Act during the past 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 []
Number of shares of common stock, $.01 par value, outstanding as of
September 30, 1998: 2,453,990.
Transitional small business disclosure format. Yes [ ] No [X]
1
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PART II - OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
The Company from time to time is involved in routine litigation incidental
to the conduct of its business. In addition, the Company is involved with the
legal proceedings associated with the filing of Chapter 11 bankruptcy protection
of Super Shops, formerly the Company's primary customer. On September 19, 1997,
Super Shops filed for reorganization under Chapter 11 of the Federal Bankruptcy
Code in the United States Bankruptcy Court, Central District of California. As
an unsecured creditor, there is no assurance that the Company will recover any
of the account receivable from Super Shops, which totals $3,523,028. Otherwise,
there are currently no material pending proceedings to which the Company is a
party or to which any of its property is subject.
The Company currently maintains product liability insurance, with limits
of $1.0 million per occurrence and $2.0 million in the aggregate per annum.
However, such coverage is becoming increasingly expensive and difficult to
obtain. There can be no assurance that the Company will be able to maintain
adequate product liability insurance at commercially reasonable rates or that
the Company's insurance will be adequate to cover future product liability
claims. Any losses that the Company may suffer as a result of claims in excess
of the Company's coverage could have a material adverse effect on the Company.
ITEM 2. DEFAULTS UPON SENIOR SECURITIES
None. See ITEM 2. "Management's Discussion and Analysis or Plan of
Operation - Liquidity and Capital Resources."
ITEM 3. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits
<TABLE>
<CAPTION>
Exhibit No. Description
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<S> <C>
11* SCHEDULE OF COMPUTATION OF LOSS PER SHARE
27.1 1998 FINANCIAL DATA SCHEDULE
27.2 1997 RESTATED FINANCIAL DATA SCHEDULE
(b) Reports on Form 8-K
Report on Form 8-K filed on October 19, 1998
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*Previously filed
2
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Company has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
CRAGAR INDUSTRIES, INC.
Dated: November 19, 1998 By: /s/ Michael L. Hartzmark
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Michael L. Hartzmark
President and CEO
Dated: November 19, 1998 By: /s/ Anthony Barrett
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Anthony Barrett
Vice President of Sales Operations
(Principal Financial and Accounting Officer)
3
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<PERIOD-START> JAN-01-1997
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