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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-QSB/A
(Amendment No. 2)
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarterly period ended October 31, 1996
-------------------------------------------
OR
[X] TRANSITION REPORT PURSUANT TO SECTION 13 OF 15(D) OR THE SECURITIES
EXCHANGE ACT OF 1934
Commission File Number 000-21825
STREICHER MOBILE FUELING, INC.
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(Exact name of small business issuer as specified in its charter)
Florida 65-0707824
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(State of Incorporation) (IRS Employer Identification Number)
2720 NW 55th Court. Fort Lauderdale, FL, 33309
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(Address of principal executive offices) (Zip Code)
(954) 739-3880
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(Issuer's telephone number, including area code)
Check whether the issuer 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 requirements for the past 90
days. Yes X . No .
----- -----
As of October 31, 1996, 1,500,000 shares of the issuer's common stock were
outstanding.
This report contains 12 pages. There are no exhibits.
X Traditional Small Business Disclosure Format
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STREICHER MOBILE FUELING, INC.
FORM 10-QSB/A
INDEX
10-QSB Part and Item No.
Part I-Financial Information
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Item 1. Financial Statements (Unaudited)
Condensed Balance Sheets as of
October 31, 1996 and January 31, 1996 . . . . . . . . . . . . . 3
Condensed Statements of Operations for
the three month and nine month periods
ended October 31, 1996 and 1995 . . . . . . . . . . . . . . . . 4
Condensed Statements of Cash Flows for the nine
month periods ended October 31, 1996 and 1995 . . . . . . . . . 5
Notes to Condensed Financial Statements . . . . . . . . . . . . 6
Item 2. Management's Discussion and Analysis of Financial
Condition and Plan of Operations . . . . . . . . . . . . . . . 7
</TABLE>
Part II-Other Information
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Item 1. Legal Proceedings . . . . . . . . . . . . . . . . . . . . . . . 10
Item 2. Changes in Securities . . . . . . . . . . . . . . . . . . . . . 10
Item 3. Defaults Upon Senior Securities . . . . . . . . . . . . . . . . 10
Item 4. Submission of Matters to a Vote of Security Holders . . . . . . 10
Item 5. Other Information . . . . . . . . . . . . . . . . . . . . . . . 10
Item 6. Exhibits and Reports on Form 8-K. . . . . . . . . . . . . . . . 10
Signatures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
</TABLE>
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STREICHER MOBILE FUELING, INC.
CONDENSED BALANCE SHEETS
OCTOBER 31 AND JANUARY 31, 1996
(UNAUDITED)
<TABLE>
<CAPTION>
October 31, January 31,
1996 1996
---- ----
<S> <C> <C>
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 55,896 $ 189,508
Investments (restricted $65,000 and $63,000, respectively) 95,023 203,743
Accounts receivable, net of allowance for doubtful
accounts of $40,000 and $28,000 respectively 4,089,959 2,592,559
Inventories 69,620 65,193
Prepaid expenses and other 118,150 100,790
---------- ----------
Total current assets 4,428,648 3,151,793
PROPERTY AND EQUIPMENT, net of accumulated depreciation
of $876,574 and $598,060 respectively 3,306,717 3,136,665
NOTES RECEIVABLE FROM ENTERPRISES 154,309 32,298
OTHER ASSETS 338,441 37,180
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Total assets $8,228,115 $6,357,936
========== ==========
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Line of credit $2,700,000 $ --
Current portion of long-term debt 818,201 471,404
Current portion of capital lease obligations 106,560 131,766
Accounts payable 2,480,914 1,322,126
Accrued expenses 346,254 337,234
Customer deposits 159,874 163,844
---------- ----------
Total current liabilities 6,611,803 2,426,374
---------- ----------
LONG-TERM LIABILITIES:
Line of credit -- 1,802,795
Long-term debt, excluding current portion 1,162,675 1,116,701
Capital lease obligations, excluding current portion 144,112 253,241
Deferred income taxes 223,759 373,759
---------- ----------
Total long-term liabilities 1,530,546 3,546,496
---------- ----------
Total liabilities 8,142,349 5,972,870
---------- ----------
COMMITMENTS AND CONTINGENCIES: (Notes 5 and 6)
SHAREHOLDERS' EQUITY:
Preferred stock, $.01 par value, 1,000,000 shares
authorized, none issued and outstanding -- --
Common stock, $.01 par value, 20,000,000 shares authorized,
1,500,000 shares issued and outstanding 15,000 15,000
Additional paid-in capital 238,588 238,588
Unrealized gain on investment 7,072 7,072
Retained (deficit) earnings (174,894) 124,406
---------- ----------
Total shareholders' equity 85,766 385,066
---------- ----------
Total liabilities and shareholders' equity $8,228,115 $6,357,936
========== ==========
</TABLE>
The accompanying notes to financial statements are an integral part of these
condensed balance sheets.
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STREICHER MOBILE FUELING, INC.
CONDENSED STATEMENTS OF OPERATIONS
THE THREE MONTH AND NINE MONTH PERIODS ENDED
OCTOBER 31, 1996 AND 1995
(UNAUDITED)
<TABLE>
<CAPTION>
THREE MONTH PERIODS NINE MONTH PERIODS
ENDED OCTOBER 31, ENDED OCTOBER 31,
------------------------- --------------------------
1996 1995 1996 1995
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<S> <C> <C> <C> <C>
REVENUE, including fuel taxes of
$2,724,000, $2,257,000, $6,290,000
and $6,059,000, respectively $9,009,960 $5,760,007 $22,897,815 $16,536,477
COST OF SALES 8,358,580 5,101,978 21,119,509 15,049,212
---------- ----------- ----------- -----------
Gross profit 651,380 658,029 1,778,306 1,487,265
OPERATING EXPENSES 664,689 433,286 1,909,082 1,288,777
---------- ----------- ----------- -----------
(Loss) income from operations (13,309) 224,743 (130,776) 198,488
INTEREST EXPENSE (93,584) (90,808) (353,836) (244,870)
OTHER INCOME (EXPENSE) 2,357 (5,116) 8,744 14,090
---------- ----------- ----------- -----------
(Loss) income before benefit
(provision) for income taxes (104,536) 128,819 (475,868) (32,292)
BENEFIT (PROVISION) FOR INCOME
TAXES 42,717 (45,350) 176,568 11,370
---------- ----------- ----------- -----------
Net (loss) income $ (61,819) $ 83,469 $ (299,300) $ (20,922)
========== =========== =========== ===========
NET (LOSS) INCOME PER SHARE $ (0.04) $ 0.06 $ (0.20) $ (0.01)
========== =========== =========== ===========
WEIGHTED AVERAGE COMMON SHARES
OUTSTANDING 1,500,000 1,500,000 1,500,000 1,500,000
========== =========== =========== ===========
</TABLE>
The accompanying notes to financial statements are an integral part
of these condensed statements.
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STREICHER MOBILE FUELING, INC.
CONDENSED STATEMENTS OF CASH FLOWS
THE NINE MONTH PERIODS ENDED
OCTOBER 31, 1996 AND 1995
(UNAUDITED)
<TABLE>
<CAPTION>
NINE MONTH PERIODS
ENDED OCTOBER 31,
-------------------------
1996 1995
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CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss $ (299,300) $ (20,922)
Adjustments to reconcile net loss to
net cash used in operating activities--
Loss on disposal of equipment 5,928 --
Depreciation and amortization 293,621 215,749
Deferred income tax benefit (150,000) --
Changes in operating assets and liabilities:
Accounts receivable (1,497,400) (1,142,712)
Inventories (4,427) (7,483)
Prepaid expenses and other (17,360) (35,867)
Other assets (301,261) (75,734)
Accounts payable 1,158,788 535,277
Accrued expenses 9,020 52,435
Customer deposits (3,970) (1,380)
------------ ------------
Net cash used in operating activities (806,361) (480,637)
----------- -----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from sale of investment 108,720 --
Purchase of investment -- (64,408)
Net (increase) decrease in note receivable from
Enterprises (122,011) 80,022
Purchases of property and equipment (524,358) (864,278)
Proceeds from disposal of equipment 54,757 --
----------- -----------
Net cash used in investing activities
(482,892) (848,664)
----------- -----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Net borrowings under line of credit 897,205 656,839
Borrowings under long-term debt 1,448,720 853,903
Principal payments on long-term debt (1,055,949) (206,552)
Principal payments on capital lease obligations (134,335) (128,219)
----------- -----------
Net cash provided by financing
activities 1,155,641 1,175,971
----------- -----------
DECREASE IN CASH AND CASH EQUIVALENTS (133,612) (153,330)
CASH AND CASH EQUIVALENTS, beginning of period 189,508 258,142
----------- -----------
CASH AND CASH EQUIVALENTS, end of period $ 55,896 $ 104,812
=========== ===========
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Cash paid during the period for --
Interest $ 363,710 $ 227,760
=========== ===========
Income taxes $ 85,256 $ 35,000
=========== ===========
SUPPLEMENTAL DISCLOSURE OF NONCASH INVESTING AND
FINANCING ACTIVITIES:
Capital lease obligations originated
$ --- $ 96,323
=========== ===========
Unrealized gain on equity investment
$ --- $ 4,024
=========== ===========
</TABLE>
The accompanying notes to financial statements are an integral part
of these condensed statements.
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STREICHER MOBILE FUELING, INC.
NOTES TO CONDENSED FINANCIAL STATEMENTS
OCTOBER 31, 1995 AND 1996
(UNAUDITED)
(1) NATURE OF OPERATIONS:
Streicher Mobile Fueling, Inc. (the"Company") was incorporated in October
1996. Streicher Enterprises, Inc. ("Enterprises") will complete a corporate
reorganization immediately prior to the closing of an initial public offering
of common stock and redeemable common stock purchase warrants of the Company
which will result in the transfer of the assets, liabilities and operations of
the Mobile Fueling Division of Enterprises to the Company which began mobile
fueling operations in 1983. The Mobile Fueling Division delivers mechanized
mobile fleet fueling and electronic fuel management primarily to customers
which operate large fleets of vehicles (such as governmental agencies,
utilities, major trucking lines, hauling and delivery services, and national
courier services) and has operations in Florida, Georgia, Tennessee, Southern
California and Texas. The aforementioned reorganization was completed prior to
the initial public offering of securities of the Company which closed on Decem-
ber 15, 1996.
(2) BASIS OF PRESENTATION:
The accompanying financial statements include the assets, liabilities and
operations of the Mobile Fueling Division of Enterprises on a retroactive basis
as if such transfer had occurred at inception of the Mobile Fueling Division.
Retained (deficit) earnings represents the cumulative results of the Mobile
Fueling Division.
In the opinion of management, the accompanying unaudited condensed
financial statements contain all adjustments, which are of a normal recurring
nature, necessary for a fair presentation of the Company's financial position
and results of operations for the periods presented. The financial statements
have been prepared by the Company pursuant to the rules and regulations of the
Securities and Exchange Commission. Accordingly, they do not include all the
information and footnotes required for annual financial statements. The
January 31, 1996 balance sheet amounts have been extracted from the annual
audited financial statements of the Company. The financial statements included
herein should be read in conjunction with the audited financial statements
contained in the Company's Prospectus. Certain amounts have been reclassified
to conform with current quarter presentation.
(3) INCOME TAXES:
The Company provides Federal and state income taxes at its estimated annual
effective income tax rate giving effect to applicable Federal and state
statutory rates. Deferred income taxes are recorded to reflect the tax
consequences on future years of differences between the tax bases of assets and
liabilities and the amounts recorded for financial reporting purposes. Income
taxes are provided as if the Company had been a separate taxable entity since
inception of the Mobile Fueling Division.
(4) LINE OF CREDIT:
As of October 31, 1996, Enterprises was fully drawn under a $2,700,000 line
of credit agreement with a bank. As the line of credit is collateralized by
the assets of the Company and repayment will result from the assets and
operations of the Company, such line of credit has been fully allocated to the
Company and reflected in the accompanying balance sheets. Interest is payable
monthly at 1.5% over the prime rate (9.75% as of October 31, 1996). The line
of credit matures in August 1997.
Borrowings under the line of credit are secured by substantially all of the
assets of Enterprises and are personally guaranteed by the sole shareholder of
Enterprises. Under the terms of the credit agreement, Enterprises is required
to comply with certain financial covenants and restrictions, including
maintaining a minimum tangible net worth of $375,000 on a consolidated basis.
As of January 31, 1996, Enterprises' consolidated tangible net worth exceeded
the minimum required, and Enterprises was in compliance with these
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financial covenants and restrictions. Subsequent to January 31, 1996,
Enterprises was not in compliance with the tangible net worth covenant of its
line of credit agreement and obtained a waiver from the bank of such covenant
through August 1, 1997. Upon completion of its initial public offering in
December 1996, Enterprises far exceeded the minimum required financial
covenants.
(5) RELATED PARTY TRANSACTIONS:
The Company engages in certain transactions with Enterprises. Note
receivable from Enterprises totaled $32,298 as of January 31, 1996 and $154,309
as of October 31, 1996. Rent expense paid to the sole shareholder of
Enterprise totaled $47,500 for the nine months ended October 31, 1995 and
$47,700 for the nine months ended October 31, 1996.
The Company has operating leases with Enterprises that expire in July 2014
and August 2015. Total rent expense for these properties will be approximately
$64,000 for each of the next five years and approximately $821,000 thereafter.
(6) COMMITMENTS AND CONTINGENCIES:
In addition to the operating leases for property owned by the sole
shareholder of Enterprises, the Company has other operating leases that expire
in January and June 1997. Rent expense under these operating leases was
$95,000 and $79,000 for nine months ended October 31, 1996 and 1995,
respectively. Remaining payments relating to these properties at that time
were approximately $6,800.
The Company's operations are affected by numerous Federal, state and local
laws, including those relating to protection of the environment and worker
safety. The transportation of gasoline and diesel fuel is subject to
regulation by various Federal, state and local agencies, including the U.S.
Department of Transportation. These regulatory authorities have broad powers,
and the Company is subject to regulatory and legislative changes that can
affect the economics of the industry by requiring changes in operating
practices or influencing the demand for, and the cost of providing, its
services. The Company is also subject to the rules and regulations of the
Hazardous Materials Transportation Act. In addition, the Company depends on
the supply of gasoline and diesel fuel from the oil and gas industry and,
therefore, is affected by changing taxes, price controls and other laws and
regulations relating to the oil and gas industry generally. The Company cannot
determine the extent to which its future operations and earnings may be
affected by new legislation, new regulations or changes in existing
regulations.
The technical requirements of these laws and regulations are becoming
increasingly expensive, complex and stringent. These laws may impose penalties
or sanctions for damages to natural resources or threats to public health and
safety. Such laws and regulations may also expose the Company to liability for
the conduct of or conditions caused by others, or for acts of the Company that
were in compliance with all applicable laws at the time such acts were
performed. Sanctions for noncompliance may include revocation of permits,
corrective action orders, administrative or civil penalties and criminal
prosecution. Certain environmental laws provide for joint and several
liability for remediation of spills and releases of hazardous substances. In
addition, companies may be subject to claims alleging personal injury or
property damage as a result of alleged exposure to hazardous substances, as
well as damage to natural resources.
Although the Company believes that it is in substantial compliance with
existing laws and regulations, there can be no assurance that substantial costs
for compliance will not be incurred in the future. Moreover, it is possible
that other developments, such as stricter environmental laws, regulations and
enforcement policies thereunder, could result in additional, presently
unquantifiable, costs or liabilities to the Company.
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND PLAN OF OPERATIONS
The following analysis of the Company's financial condition as of October
31, 1996 and the Company's results of operations for the three and nine month
periods ended October 31, 1996 and 1995 should be read in conjunction with the
Company's financial statements and notes thereto included elsewhere in this
Form 10-QSB/A. This Form 10-QSB/A contains certain statements of a
forward-looking nature relating to future events
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of the future financial performance of the Company. Such statements should
specifically be considered in light of the various factors identified in this
Form 10-QSB/A, including the matters set forth below, which could cause actual
results to differ materially from those indicated by such forward-looking
statements.
OVERVIEW
The Company derives all of its revenue from providing mobile fueling
services. Revenue is comprised principally of sales of gasoline and diesel fuel
and related service charges. Cost of sales is comprised principally of the
cost of fuel and transportation costs (primarily payroll). Included in both
revenue and cost of sales is Federal and state fuel taxes, which are collected
by the Company from its customers, when required, and remitted to the
appropriate taxing authority.
RESULTS OF OPERATIONS
Three Months Ended October 31, 1996 Compared to Three Months Ended October
31, 1995
Revenue increased $3,250,000, or 56.4%, in the third quarter of fiscal 1997
compared to the same period in fiscal 1996. Excluding fuel taxes, revenue
increased $2,783,000, or 79.5%. This increase in revenue resulted from a
higher volume of fuel sales due to increased services to existing customers,
acquisition of new customers in existing locations, the introduction of mobile
fueling operations into additional metropolitan areas and an overall increase
in the wholesale price of gasoline and diesel fuel.
Gross profit decreased $7,000, or 1.0%, in the third quarter of fiscal 1997
compared to the third quarter of fiscal 1996. This decrease in gross profit
does not correspond with the increase in revenue due in part to a decrease in
service charges per gallon during the quarter in response to competitive
conditions. As a percentage of revenue, gross profit decreased from 11.4% in
the third quarter of fiscal 1996 to 7.2% in the corresponding period of fiscal
1997 primarily as a result of an overall increase in the wholesale prices of
gasoline and diesel fuel. Because the Company sells fuel to its customers at
fixed amounts over its wholesale costs, the increase in fuel prices resulted in
lower gross margins as a percentage of revenue. In addition, an increase in
driver payroll costs included in cost of sales associated with expansion into
new markets and underutilization of equipment in such markets adversely
impacted the Company's gross margin during the quarter.
Operating expenses increased $231,000, or 53.4%, in the third quarter of
fiscal 1997 compared to the same period in fiscal 1996. As a percentage of
revenue, operating expenses decreased slightly from 7.5% in the third quarter
1996 to 7.4% in the corresponding period of fiscal 1997.
Interest expense increased $3,000, or 3.1%, in the third quarter of fiscal
1997 compared with the corresponding period in fiscal 1996 as a result of an
increase in borrowings to fund the Company's acquisition of new trucks,
primarily for existing locations.
The Company recorded an income tax provision of $45,000 in the third
quarter of fiscal 1996 and an income tax benefit of $43,000 in the third
quarter of fiscal 1997.
The Company had net income $83,000, or $0.06 per share, for the third
quarter of fiscal 1996 and a net loss of $62,000, or $0.04 per share, for the
third quarter of fiscal 1997.
Nine Months Ended October 31, 1996 compared to Nine months Ended October 31,
1995
Revenue increased $6,361,000 or 38.5%, for the nine months ended October
31, 1996 compared to the nine months ended October 31, 1995. Excluding fuel
taxes, revenue increased $6,130,000 or 58.5%. The increase in revenue resulted
from a higher volume of fuel sales due to increased services to existing
customers, acquisition of new customers in existing locations, the introduction
of mobile fueling operations into additional metropolitan areas and an overall
increase in the wholesale price of gasoline and diesel fuel.
Gross profit increased $291,000, or 19.6%, in the nine months ended October
31, 1996 compared to the same period in fiscal 1996, primarily as a result of
the increase in revenue. This increase in gross profit was lower than the
corresponding increase in revenue due in part to a decrease in service charges
per gallon during
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the nine months ended October 31, 1996 in response to competitive conditions. As
a percentage of revenue, gross profit decreased from 9.0% in the first nine
months of fiscal 1996 to 7.8% in the first nine months of fiscal 1997. Because
the Company sells fuel to its customers at fixed amounts over its wholesale
costs, the increase in fuel prices resulted in lower gross margins as a
percentage of revenue. In addition, an increase in driver payroll costs
included in cost of sales associated with expansion into new markets and
underutilization of equipment in such markets adversely impacted the Company's
gross margin during the nine months ended October 31, 1996.
Operating expenses increased $620,000, or 48.1%, in the first nine months
of fiscal 1997 compared to the first nine months of fiscal 1996. As a
percentage of revenue, operating expenses increased from 7.8% to 8.3% the first
nine months of fiscal 1996 and 1997, respectively. The increase in operating
expenses primarily resulted from an increase in payroll and related
administrative costs associated with the addition of personnel to support
expansion of the Company's mobile fueling operations.
Interest expense increased $109,000, or 44.5%, in the nine months ended
October 31, 1996 compared to the corresponding period in fiscal 1996 as a
result of increased borrowings to fund the Company's expansion into new markets
and to acquire new custom fuel trucks for existing and new locations.
The Company recorded an income tax benefit of $177,000 and $11,000 for
the nine months ended October 31, 1996 and October 31, 1995, respectively.
The Company had net loss of $21,000, or $0.01 per share, in the first nine
months of fiscal 1996 and a net loss of $299,000, or $0.20 per share, in the
first nine months of fiscal 1997.
LIQUIDITY AND CAPITAL RESOURCES
The Company had working capital of $725,000 as of January 31, 1996 and
($2,183,000) as of October 31, 1996. The negative working capital resulted
primarily from recording the Company's $2.7 million line of credit as a current
liability as of October 31, 1996. The Company's primary long-term and working
capital requirements have been to fund capital expenditures for custom fuel
trucks and related equipment and working capital for its inventory
requirements and the financing of customer accounts receivable. The Company's
expansion over the past several years and its negative cash flows from
operating activities have been financed by additional bank borrows and lease
financing. In the past, the Company has financed approximately between 85% and
95% of the purchase price of fuel trucks. Presently, the Company is unable to
estimate the amount of cash required for the purchase of fuel trucks because
such amount will be dependent upon the terms and conditions of financing, if
any, available to the Company at the time of purchase. The Company's cash and
unrestricted investments totaled $86,000 as of October 31, 1996.
The Company has a credit facility with BankAtlantic providing for a $2.7
million revolving line of credit which the Company utilizes to purchase custom
fuel trucks and for working capital. Borrowings are subject to a borrowing base
determined by eligible accounts receivable and bear interest at 1.5% per annum
over the prime rate. The facility is secured by substantially all of the
Company's assets (including accounts receivable). The credit facility contains
covenants that, among other things, include the maintenance of a minimum
tangible net worth of $375,000, restrict mergers, dispositions of assets and
certain business acquisitions. As a result of the Company's losses, the
Company was not in compliance with the minimum tangible net worth covenant
included in the bank's line of credit agreement. The Company has obtained a
written waiver of such covenant from the bank through August 1, 1997. After
giving effect to the initial public offering (see Subsequent Events) and the
receipt of proceeds therefrom, the Company will be in compliance with the terms
of its credit facility. See Note 4 of Notes to the Company's Condensed
Financial Statements included elsewhere in this Form 10-QSB/A.
Cash flows used in operating activities totaled $481,000 for the nine
months ended October 31, 1995 and $806,000 for the nine months ended October
31, 1996. Cash flows from operating activities have been adversely affected by
the Company's net losses as well as the funding of continually increasing
number of accounts receivable resulting from the Company's expansion. The
Company has experienced an increase of approximately 13 days in the average
period of time for accounts receivable collection from 39 days at fiscal year
end January 31, 1996 to 52 days at October 31, 1996. The increase in number of
days outstanding is unfavorably influenced by the increase in fuel costs and
fuel taxes. However, the Company is taking steps to improve its cash flows
from operating activities, including improving accounts receivable collection
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methods; increasing the prices of certain of the Company's services;
introducing a new daytime delivery service at an hourly rate; eliminating
certain unprofitable services; and revising certain routes to increase truck
utilization.
Cash flows used in investing activities totaled $849,000 for the nine
months ended October 31, 1995, and $483,000 for the nine months ended October
31, 1996. Cash flows used in investing activities in all periods principally
represents expenditures for the purchase of custom fuel trucks and related
equipment. In the past, the Company has financed approximately between 85% and
95% of the purchase price of fuel trucks.
Cash flows from financing activities totaled $1,176,000 for the nine months
ended October 31, 1995 and $1,156,000 for the nine months ended October, 1996.
Cash flows from investing activities in each period principally represent the
increase in net borrowings under the Company's line of credit and the repayment
of obligations for equipment under capital leases.
SUBSEQUENT EVENTS
On December 15, 1996 the Company successfully completed an initial public
offering of securities of the Company, including 1,000,000 shares of common
stock and 1,000,000 redeemable common stock purchase warrants (1,075,000 shares
of common stock and 1,150,000 warrants including the over-allotment), as
described in the Prospectus (the Offering), providing net proceeds to the
Company of approximately $5,000,000.
As a result of the completion of the Offering, the Company's annual
operating expenses will increase by approximately $125,000 as a result of
compensation payable to Mr. Streicher pursuant to his employment agreement.
See the Company's Prospectus for further discussion. Pursuant to the
employment to be entered into between the Company and Mr. Streicher, the
Company will grant Mr. Streicher stock options to acquire up to an aggregate of
1,000,000 shares of Common Stock at the initial public offering price of $6.00
with the timing of exercise thereof contingent upon the Company's achievement
of certain performance thresholds.
PART II-OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
The Company has no material proceedings pending. From time to time, the
Company may become a party to litigation incidental to its business. There can
be no assurance that any future legal proceedings will not have a material
adverse affect on the Company's business, reputation, financial condition or
results of operations.
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 8-K
Exhibit 27.1 Financial Data Schedule for 9 Months (for S.E.C. use
only).
Exhibit 27.2 Financial Data Schedule for 3 Months (for S.E.C. use
only).
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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 hereunto duly authorized.
STREICHER MOBILE FUELING, INC.
By: /s/ Stanley H. Streicher
------------------------------------
Chief Executive Officer (Duly
Authorized Director and
Officer of the Registrant)
Dated: May 1, 1997
11
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE BALANCE
SHEETS OF STREICHER MOBILE FUELING, INC. AS OF JANUARY 31, 1996 AND OCTOBER 31,
1996 (UNAUDITED), AND THE RELATED STATEMENTS OF OPERATIONS AND CASH FLOWS FOR
EACH OF THE THREE MONTHS AND THE NINE MONTHS ENDED OCTOBER 31, 1995 AND 1996
(UNAUDITED) AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL
STATEMENTS.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> JAN-31-1997
<PERIOD-START> FEB-01-1996
<PERIOD-END> OCT-31-1996
<CASH> 55,896
<SECURITIES> 95,023
<RECEIVABLES> 4,129,959
<ALLOWANCES> 40,000
<INVENTORY> 69,620
<CURRENT-ASSETS> 4,428,648
<PP&E> 4,183,291
<DEPRECIATION> 876,574
<TOTAL-ASSETS> 8,228,115
<CURRENT-LIABILITIES> 6,611,803
<BONDS> 0
0
0
<COMMON> 15,000
<OTHER-SE> 70,766
<TOTAL-LIABILITY-AND-EQUITY> 8,228,115
<SALES> 22,897,815
<TOTAL-REVENUES> 22,897,815
<CGS> 21,119,509
<TOTAL-COSTS> 21,119,509
<OTHER-EXPENSES> 1,909,082
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 353,836
<INCOME-PRETAX> (475,868)
<INCOME-TAX> 176,568
<INCOME-CONTINUING> (299,300)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (299,300)
<EPS-PRIMARY> (.20)
<EPS-DILUTED> (.20)
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE BALANCE
SHEETS OF THE STREICHER MOBILE FUELING, INC. AS OF JANUARY 31, 1996 AND OCTOBER
31, 1996 (UNAUDITED) AND THE RELATED STATEMENTS OF OPERATIONS AND CASH FLOWS
FOR EACH OF THE THREE MONTHS AND THE NINE MONTHS ENDED OCTOBER 31, 1995 AND
1996 (UNAUDITED) AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH
FINANCIAL STATEMENTS.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> JAN-31-1997
<PERIOD-START> AUG-01-1996
<PERIOD-END> OCT-31-1996
<CASH> 55,896
<SECURITIES> 95,023
<RECEIVABLES> 4,129,959
<ALLOWANCES> 40,000
<INVENTORY> 69,620
<CURRENT-ASSETS> 4,428,648
<PP&E> 4,183,291
<DEPRECIATION> 876,574
<TOTAL-ASSETS> 8,228,115
<CURRENT-LIABILITIES> 6,611,803
<BONDS> 0
0
0
<COMMON> 15,000
<OTHER-SE> 70,766
<TOTAL-LIABILITY-AND-EQUITY> 8,228,115
<SALES> 9,009,960
<TOTAL-REVENUES> 9,009,960
<CGS> 8,358,580
<TOTAL-COSTS> 8,358,580
<OTHER-EXPENSES> 664,689
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 93,584
<INCOME-PRETAX> (104,536)
<INCOME-TAX> 42,717
<INCOME-CONTINUING> (61,819)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (61,819)
<EPS-PRIMARY> (.04)
<EPS-DILUTED> (.04)
</TABLE>
