UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 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 OCTOBER 31, 1998
OR
[ ] 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.
(Exact name of registrant as specified in its charter)
FLORIDA 65-0707824
(State of Incorporation) (IRS Employer Identification Number)
2720 NW 55TH COURT, FORT LAUDERDALE, FLORIDA, 33309
(Address of principal executive offices) (Zip Code)
(954) 739-3880
(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 December 14, 1998, 2,575,000 shares of the issuer's common stock were
outstanding.
<PAGE>
STREICHER MOBILE FUELING, INC.
FORM 10-Q
INDEX
FORM 10-Q PART AND ITEM NO.
Part I-Financial Information
Item 1. Unaudited Financial Statements
Consolidated Balance Sheets as of
October 31, 1998 and January 31, 1998 . . . . . .........3
Consolidated Statements of Operations for the three
and nine months ended October 31, 1998 and 1997..........5
Consolidated Statements of Cash Flows for the nine
months ended October 31, 1998 and 1997...................6
Notes to Financial Statements............................7
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations......................8
Part II-Other Information
Items 1 - 6......................................................12
Signatures.......................................................13
2
<PAGE>
<TABLE>
<CAPTION>
STREICHER MOBILE FUELING, INC. AND SUBSIDIARIES
UNAUDITED CONSOLIDATED BALANCE SHEETS
OCTOBER 31 JANUARY 31
ASSETS 1998 1998
------ ------------ ------------
<S> <C> <C>
Current Assets:
Cash and cash equivalents $ 123,807 $ 1,411,134
Investments -- 69,227
Accounts receivable, net of allowance for doubtful
accounts of $166,000 and $148,000 respectively 5,543,013 5,065,437
Inventories 181,354 133,924
Prepaid expenses and other current assets 134,150 351,531
------------ ------------
Total current assets 5,982,324 7,031,253
Property and Equipment:
Land 233,803 59,996
Leasehold improvements 182,064 152,664
Fuel trucks and automobiles 9,954,568 6,305,637
Machinery and equipment 892,729 799,858
Furniture and fixtures 69,178 66,139
Construction in process 2,968 173,797
------------ ------------
11,335,310 7,558,091
Less accumulated depreciation and amortization (1,942,891) (1,357,368)
------------ ------------
9,392,419 6,200,723
Deferred income tax assets 259,392 254,848
Note receivable from related party 432,462 451,806
Other assets 37,175 56,910
------------ ------------
Total assets $ 16,103,772 $ 13,995,540
============ ============
</TABLE>
3
<PAGE>
<TABLE>
<CAPTION>
STREICHER MOBILE FUELING, INC. AND SUBSIDIARIES
UNAUDITED CONSOLIDATED BALANCE SHEETS
(CONTINUED)
OCTOBER 31 JANUARY 31
LIABILITIES AND SHAREHOLDERS' EQUITY 1998 1998
- ------------------------------------ ------------ ------------
<S> <C> <C>
Current Liabilities:
Bank line of credit payable $ 4,218,834 $ --
Current portion of long-term debt 1,327,313 790,101
Accounts payable 1,943,495 2,313,581
Accrued expenses 295,781 415,664
Customer deposits 119,895 119,895
------------ ------------
Total current liabilities 7,905,318 3,639,241
Long-term Liabilities:
Bank line of credit payable -- 3,269,713
Long-term debt, excluding current portion 4,334,275 2,645,336
------------ ------------
Total liabilities 12,239,593 9,554,290
------------ ------------
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,
2,575,000 shares issued and outstanding 25,750 25,750
Additional paid-in capital 5,195,758 5,195,758
Accumulated deficit (1,357,329) (780,258)
------------ ------------
Total shareholders' equity 3,864,179 4,441,250
------------ ------------
Total liabilities and shareholders' equity $ 16,103,772 $ 13,995,540
============ ============
</TABLE>
4
<PAGE>
<TABLE>
<CAPTION>
STREICHER MOBILE FUELING, INC. AND SUBSIDIARIES
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE THREE AND NINE MONTH PERIODS ENDED OCTOBER 31, 1998 AND 1997
THREE MONTH PERIODS NINE MONTH PERIODS
ENDED OCTOBER 31, ENDED OCTOBER 31,
---------------------------- ----------------------------
1998 1997 1998 1997
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
Fuel and service charge revenue $ 8,009,233 $ 8,244,646 $ 22,453,591 $ 21,687,284
Fuel taxes 4,209,927 3,590,358 12,086,678 9,893,670
------------ ------------ ------------ ------------
Total revenues 12,219,160 11,835,004 34,540,269 31,580,954
Cost of fuel and delivery expenses 7,098,372 7,159,552 19,731,330 19,292,166
Fuel taxes 4,209,927 3,590,358 12,086,678 9,893,670
------------ ------------ ------------ ------------
Total cost of sales 11,308,299 10,749,910 31,818,008 29,185,836
Gross profit 910,861 1,085,094 2,722,261 2,395,118
Operating expenses 946,568 1,010,953 2,750,106 2,678,952
------------ ------------ ------------ ------------
Operating income (loss) (35,707) 74,141 (27,845) (283,834)
Loss on asset disposal (6,877) -- (6,877) --
Interest expense (243,424) (128,479) (600,583) (318,631)
Interest and other income 12,454 75,816 58,234 154,928
------------ ------------ ------------ ------------
(237,847) (52,663) (549,226) (163,703)
Income (loss) before benefit
for income taxes (273,554) 21,478 (577,071) (447,537)
Income tax benefit (expense) -- (5,061) -- 152,939
------------ ------------ ------------ ------------
Net income (loss) $ (273,554) $ 16,417 $ (577,071) $ (294,598)
============ ============ ============ ============
Basic and diluted earnings (loss) per share $ (.10) $ .01 $ (.22) $ (.11)
============ ============ ============ ============
Basic and diluted weighted average
common shares outstanding 2,575,000 2,575,000 2,575,000 2,575,000
============ ============ ============ ============
</TABLE>
5
<PAGE>
<TABLE>
<CAPTION>
STREICHER MOBILE FUELING, INC, AND SUBSIDIARIES
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE NINE MONTH PERIODS ENDED OCTOBER 31, 1998 AND 1997
1998 1997
----------- -----------
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss $ (577,071) $ (294,598)
Adjustments to reconcile net loss to net cash
used in operating activities:
(Gain) loss on disposal of assets 6,877 (133)
Gain on sale of investment -- (44,621)
Depreciation and amortization 590,228 362,636
Deferred income tax benefit -- (152,939)
Provision for doubtful accounts 50,000 35,000
Changes in operating assets and liabilities:
Increase in accounts receivable (527,576) (696,844)
Increase in inventories (47,430) (22,130)
(Increase) Decrease in prepaid expenses and other current assets 217,381 (107,690)
Increase in deferred income tax asset (4,544) (257,128)
(Increase) Decrease in other assets 19,735 (5,304)
Decrease in accounts payable and accrued expenses (489,969) (613,196)
Decrease in customer deposits -- (9,500)
----------- -----------
Net cash used in operating activities (762,369) (1,806,447)
----------- -----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from sale of investment 69,227 74,933
Purchase of investment -- (2,403)
Purchases of property and equipment (3,802,278) (2,248,885)
Proceeds from sale of assets 13,477 --
Note receivable due from related party 19,344 (41,296)
----------- -----------
Net cash used in investing activities (3,700,230) (2,217,651)
----------- -----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Net borrowings under line of credit 949,121 1,209,671
Borrowings under long-term debt 3,087,908 1,646,867
Principal payments on long-term debt (861,757) (605,694)
----------- -----------
Net cash provided by financing activities 3,175,272 2,250,844
----------- -----------
NET DECREASE IN CASH AND CASH
EQUIVALENTS (1,287,327) (1,773,254)
CASH AND CASH EQUIVALENTS, beginning of period 1,411,134 2,848,000
----------- -----------
CASH AND CASH EQUIVALENTS, end of period $ 123,807 $ 1,074,746
=========== ===========
SUPPLEMENTAL DISCLOSURE OF CASH FLOW
INFORMATION:
Cash paid for-
Interest $ 570,774 $ 300,640
=========== ===========
Income taxes $ 4,544 $ 5,061
=========== ===========
</TABLE>
6
<PAGE>
STREICHER MOBILE FUELING, INC.
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
(1) NATURE OF OPERATIONS
The Company delivers mechanized mobile fleet fueling and electronic
fuel management primarily to customers that operate large fleets of vehicles
(such as governmental agencies, utilities, major trucking lines, hauling and
delivery services, and national courier services). At October 31, 1998, the
Company had operations in Florida, Georgia, Tennessee, California, Louisiana and
Texas.
(2) BASIS OF PRESENTATION
The consolidated financial statements include the accounts of Streicher
Mobile Fueling, Inc. and its wholly owned subsidiaries, Streicher West, Inc.,
Streicher Realty, Inc. and Mobile Computer Systems, Inc. All significant
intercompany balances and transactions have been eliminated in consolidation.
The unaudited consolidated financial statements included herein have
been prepared in accordance with the instructions to Form 10-Q and do not
include all the information and footnotes required by generally accepted
accounting principles; however, they do include all adjustments of a normal
recurring nature which, in the opinion of management, are necessary to present
fairly the results of operations of the Company for the interim periods
presented. Certain amounts have been reclassified to conform with current
quarter presentation. These interim financial statements should be read in
conjunction with the Company's audited financial statements and related notes
for the year ended January 31, 1998 included in the Company's Annual Report on
Form 10-K for the year ended January 31, 1998. The results of operations for the
interim periods presented are not necessarily indicative of the results to be
expected for the entire year.
Management makes various estimates and assumptions in determining the
reported amounts of assets, liabilities, revenues and expenses for each period
presented. Changes in these estimates and assumptions will occur as a result of
the passage of time and the occurrence of future events, and actual results will
differ from the estimates.
(3) COMMITMENTS AND CONTINGENCIES
At October 31, 1998, the Company had purchase commitments, exercisable
over the next six months, for 3 custom fuel delivery vehicles costing
approximately $210,000.
7
<PAGE>
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
This Form 10-Q contains "forward-looking statements" which involve
risks and uncertainties. The Company's actual results could differ materially
from those in the forward-looking statements as a result of certain factors,
including those set forth under the caption "Certain Factors Affecting Future
Operating Results" in Item 7 of the Company's Annual Report in Form 10-K for the
fiscal year ended January 31, 1998. The following Management's Discussion and
Analysis of Financial Condition and Results of Operations should be read in
conjunction with the Company's financial statements and notes thereto included
elsewhere in this Form 10-Q and the above described factors set forth in the
Company's Form 10-K.
GENERAL
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 delivery costs (primarily payroll and equipment costs). Included in
both revenue and cost of sales are federal and state fuel taxes, which are
generally paid by the Company when it pays for its fuel and are billed by the
Company to its customers upon billing for the related fuel and service charges.
RESULTS OF OPERATIONS
THREE MONTHS ENDED OCTOBER 31, 1998 COMPARED TO THREE MONTHS ENDED
OCTOBER 31, 1997
REVENUES
Revenues for the three months ended October 31, 1998 increased 3.4% to
$12.2 million, compared to $11.8 million for the same quarter a year ago. This
increase was due primarily to an increase in volume of fuel delivered, offset by
decreases in the average wholesale price per gallon of gasoline and diesel fuel.
For the three months ended October 31, 1998, the Company delivered 10.7 million
gallons of fuel compared to 9.0 million gallons for the same quarter of the
prior year, an increase of 18.9%. The increase in volume was attributable to an
increase in services to existing customers, acquisition of new customers in
existing locations and the introduction of mobile fueling operations into
additional metropolitan areas. The Company's revenue levels will fluctuate based
on the cost of fuel in a given period. The Company's sales price to its
customers is adjusted upward or downward for increases or decreases in fuel
costs each week. Significant changes in revenue levels between periods are
possible even if the volume of fuel delivered remains relatively stable.
GROSS PROFIT
Gross profit for the three months ended October 31, 1998 decreased
17.2%, to $911,000, compared to $1.1 million for the same quarter a year ago.
This decline was due to increased costs associated with the Company's continued
expansion, primarily increases in payroll and equipment ownership costs,
partially offset by increases in the total amount of fuel delivered.
OPERATING EXPENSES
Operating expenses for the three months ended October 31, 1998
decreased 5.3%, to $947,000, compared to $1.0 million for the same quarter a
year ago. This decrease is primarily attributable to decreases in administrative
payroll and related costs, decreases in financial consulting fees, debt
guarantee fees and telephone expenses, partially offset by increases in
insurance costs and marketing expenses.
INTEREST EXPENSE
Interest expense for the three months ended October 31, 1998 increased
89.8%, to $243,000, compared to $128,000 for the same quarter a year ago. This
increase is a result of increases in the Company's outstanding borrowings due to
the purchase of additional equipment to support its expansion, along with
increases in borrowings under the Company's working capital line of credit.
INTEREST INCOME
8
<PAGE>
Interest income for the three months ended October 31, 1998 decreased
to $12,000, compared to $76,000 for the same quarter a year ago. This decrease
is primarily due to decreases in cash equivalents held by the Company. The
invested funds represent the remaining portion of the net proceeds of the
Company's initial public offering in December 1996.
INCOME TAXES
The Company recognized no income tax benefit or expense for the three
months ended October 31, 1998, compared to expense of $5,000, representing an
effective tax benefit rate of 31.0%, for the same quarter a year ago. The
elimination of the tax benefit in the current quarter resulted from the
Company's fully reserving any potential income tax benefit.
NET LOSS
Net loss for the three months ended October 31, 1998 was $274,000 or
$.10 per share, compared to a net income of $16,000 or $.01 per share for the
three months ended October 31, 1997. The net loss incurred is due to the
combination of factors discussed above.
RESULTS OF OPERATIONS
NINE MONTHS ENDED OCTOBER 31, 1998 COMPARED TO NINE MONTHS ENDED
OCTOBER 31, 1997
REVENUES
Revenues for the nine months ended October 31, 1998 increased 9.2% to
$34.5 million, compared to $31.6 million for the same period a year ago. This
increase was due primarily to an increase in volume of fuel delivered, offset by
decreases in the average wholesale price per gallon of gasoline and diesel fuel.
For the nine months ended October 31, 1998, the Company delivered 29.9 million
gallons of fuel compared to 23.7 million gallons for the same period of the
prior year, an increase of 26.2%. The increase in volume was attributable to an
increase in services to existing customers, acquisition of new customers in
existing locations and the introduction of mobile fueling operations into
additional metropolitan areas. The Company's revenue levels will fluctuate based
on the cost of fuel in a given period. The Company's sales price to its
customers is adjusted upward or downward for increases or decreases in fuel
costs each week. Significant changes in revenue levels between periods are
possible even if the volume of fuel delivered remains relatively stable.
GROSS PROFIT
Gross profit for the nine months ended October 31, 1998 increased
12.5%, to $2.7 million, compared to $2.4 million for the same period a year ago.
This improvement was primarily due to the increased quantity of fuel delivered,
partially offset by costs associated with the Company's continued expansion,
primarily increases in payroll and equipment ownership costs.
OPERATING EXPENSES
Operating expenses for the nine months ended October 31, 1998 increased
3.7%, to $2.8 million, compared to $2.7 million for the same period a year ago.
This increase is primarily attributable to increases in insurance costs,
increases in marketing expenses and other costs, partially offset by decreases
in financial consulting fees, debt guarantee fees and modest decreases in
administrative payroll and related costs.
INTEREST EXPENSE
Interest expense for the nine months ended October 31, 1998 increased
88.4%, to $601,000, compared to $319,000 for the same period a year ago. This
increase is a result of increases in the Company's outstanding borrowings due to
the purchase of additional equipment to support its expansion, along with
increases in borrowings under the Company's working capital line of credit.
INTEREST INCOME
Interest income for the nine months ended October 31, 1998 decreased to
$58,000, compared to $155,000 for the same period a year ago. This decrease is
primarily due to decreases in cash equivalents held by the Company. The invested
funds represent the remaining portion of the net proceeds of the Company's
initial public offering in December 1996.
9
<PAGE>
INCOME TAXES
The Company recognized no income tax benefit or expense for the nine
months ended October 31, 1998, compared to a benefit of $153,000, representing
an effective tax benefit rate of 34.2%, for the same period a year ago. The
elimination of the tax benefit in the current period resulted from the Company's
fully reserving any potential income tax benefit.
NET LOSS
Net loss for the nine months ended October 31, 1998 was $577,000 or
$.22 per share, compared to a net loss of $295,000 or $.11 per share for the
same period a year ago. The increase in loss incurred is due to the combination
of factors discussed above.
LIQUIDITY AND CAPITAL RESOURCES
The Company's business requires it to expend considerable amounts of
funds for fuel, labor and equipment costs before any payments are received from
the Company's customers. The fuel purchased by the Company for resale to its
customers must generally be paid for within 10 to 15 days of purchase, labor
costs and related taxes are funded bi-weekly and equipment related costs are
generally satisfied within 30 days. The Company bills its customers weekly and
generally collects its accounts within 35 to 40 days. Days sales outstanding at
October 31, 1998 totaled 43 days as compared to 38 days sales outstanding at
January 31, 1998.
During the past two years, the Company has relied on bank borrowings
and proceeds of its December 1996 initial public offering to fund increases in
accounts receivable, provide the funds necessary to acquire additional custom
fuel delivery trucks and fund its ongoing operating losses. At current levels of
operating loss, the Company anticipates that its cash reserves and line of
credit availability along with a commitment, subject to certain conditions, for
a $200,000 working capital loan, anticipated collections of $200,000 on a
related party receivable and various operational change designed to improve
profitability will provide sufficient working capital to fund operations over
the next twelve months. The Company is also seeking additional working capital
to finance its operations by a combination of sales of equity securities and
expansion of its credit facility. There is no assurance that any such financing
or equity sales will be obtained on terms acceptable to the Company or that
current operating losses can be reduced in the near future.
The Company has outstanding borrowings of $4.2 million as of October
31, 1998 under its $5.0 million line of credit. This line permits the Company to
borrow up to 85% of the total amount of eligible accounts receivable. Based on
eligible receivables outstanding at October 31, 1998 the line has been fully
drawn as of that date. Interest is payable monthly at .75% over the prime rate
(8.0% as of October 31, 1998). The line of credit matures on October 31, 1999
and is secured by substantially all of the Company's assets. The credit
agreement contains customary covenants such as the maintenance of certain
financial ratios and minimum net worth and working capital requirements. As of
October 31, 1998, the Company was not in compliance with the minimum net worth
and working capital requirements. The Company has requested waivers of these
violations from the lender. Although there is no assurance, the Company believes
it will obtain waivers of these violations from the lender.
Custom fuel trucks are ordered in advance of need and require a minimal
down payment with the balance due upon delivery. It is expected that this
balance will be funded through a combination of available cash and financing. In
the past, the Company has financed approximately 85% to 95% of the purchase
price of fuel trucks. The Company is unable to estimate the amount of cash
required for the acquisition of fuel trucks as such amount is dependent upon the
terms and conditions of financing available, if any, to the Company at the time
of delivery. At October 31, 1998, the Company had purchase commitments, to be
executed over the next six months, for 3 custom fuel delivery vehicles costing
approximately $210,000.
A significant portion of the Company's outstanding debt bears interest
at variable interest rates. The Company's financial results will be impacted by
significant increases or decreases in interest rates.
YEAR 2000 ISSUE
Historically, certain computer programs, as well as certain hardware
were designed to utilize a
two-digit date field and consequently, they may not
be able to properly recognize dates in the Year 2000. This could result in
significant system failures. The Company relies on its computer-based equipment
in conducting its normal business activities. Certain of these computer-based
programs and equipment may not have been designed to function properly with
respect to the application of dating systems relating to the Year 2000.
10
<PAGE>
In response, the Company has developed a "Year 2000" Plan and
established an internal group to identify and assess potential areas of risk and
to make any required modifications to its computer systems and equipment used in
its product supply and distribution activities. The Year 2000 Plan is comprised
of various phases, including assessment, remediation, testing and contingency
plan development. After the assessment phase has been completed and evaluated,
the remediation, testing and certification phases will be implemented to ensure
that business activities will continue to operate safely, reliably, and without
interruption after 1999. Based upon the results of these assessments contingency
plans will be developed to the extent deemed necessary.
The Company is also monitoring the compliance efforts of significant
suppliers and other third parties with whom it does business to ensure that
operations will not be adversely affected by the Year 2000 compliance problems
of others. There is no assurance that there will not be an adverse effect on the
Company if vendors, suppliers, customers, state and federal governmental
authorities and other third parties do not convert their respective systems in a
timely manner and in a way that is compatible with the Company's information
systems. However, management believes that ongoing communication with and
assessment of the compliance efforts and status of these third parties will
minimize these risks.
The Company believes that it can provide the resources necessary to
ensure Year 2000 compliance and expects to complete its Year 2000 Plan within a
time frame that will enable its computer-based programs and equipment to
function without significant disruption in the Year 2000. The Company believes
that the assessment phase of its Year 2000 Plan is now complete. It is
anticipated that the remediation phase will be completed by February 15, 1999
and the testing phase by April 30, 1999. Thereafter, contingency plans, if
necessary and appropriate, will be developed as needed.
At October 31, 1998, the Company has incurred third party costs of
approximately $2,500 related to Year 2000 compliance matters and estimates that
the total future third party software and equipment costs related to Year 2000
compliance activities, based upon information developed to date, will be
approximately $12,500, which will be expensed as incurred. These costs have been
and will continue to be funded through operating cash flows and are not deemed
material to the operations of the Company. The cost of the remediation
activities and the completion dates are based on management's best estimates and
may be updated as additional information becomes available.
Although the Company anticipates minimal business disruption will occur
as a result of Year 2000, in the event the computer based programs and equipment
of the Company, or that owned and operated by third parties, should fail to
function properly, possible consequences include but are not limited to, loss of
communications link with field offices; loss of electric power; an inability to
timely process commercial transactions or engage in normal automated or
computerized business activities.
To date, the Company has not established a contingency plan for
possible Year 2000 issues. As noted above, in the event the Company, after
completion of the assessment, remediation and testing phases of the Year 2000
Plan and review of the results of monitoring the compliance efforts and status
of third parties, determines that contingency plans are necessary, the Company
will establish contingency plans based on its assessment of outside risks. The
Company anticipates that contingency plans, if determined to be necessary, will
be in place by June 30, 1999.
The discussion of the Company's efforts, and management's expectations,
relating to Year 2000 compliance contains forward-looking statements. Presently,
the Company does not anticipate that the Year 2000 issues will have a material
adverse effect on the operations or financial performance of the Company.
However, there can be no assurance that the Year 2000 will not adversely affect
the Company and its business.
11
<PAGE>
PART II. OTHER INFORMATION
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
The Company held its Annual Shareholders Meeting on August 28, 1998.
The issues submitted to a vote of the security holders and the results
of the voting are as follows:
1) Election of five directors
FOR WITHHELD
--- --------
Stanley H. Streicher 2,490,679 3,000
E. Scott Golden 2,490,679 3,000
Joseph M. Murphy 2,490,679 3,000
John H. O'Neil, Jr. 2,490,679 3,000
L. Phillips Reames 2,490,679 3,000
The Board consists of five directors. All nominees were elected to serve for a
one year period.
ITEM 5
OTHER INFORMATION
None.
ITEM 6
EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits: Financial Data Schedule: Ex. 27
(b) The company filed a report on Form 8-K (Item 4) on August 18, 1998 to
report the dismissal of Arthur Andersen LLP as the Company's
independent public accountants.
12
<PAGE>
SIGNATURE
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.
December 14, 1998 By: /s/ STANLEY H. STREICHER
---------------------------------------------
Stanley H. Streicher
Chief Executive Officer
13
<PAGE>
EXHIBIT INDEX
EXHIBIT DESCRIPTION
- ------- -----------
27 Financial Data Schedule
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> JAN-31-1999
<PERIOD-START> FEB-01-1998
<PERIOD-END> OCT-31-1998
<CASH> 123,807
<SECURITIES> 0
<RECEIVABLES> 5,708,683
<ALLOWANCES> (165,670)
<INVENTORY> 181,354
<CURRENT-ASSETS> 5,982,324
<PP&E> 11,335,310
<DEPRECIATION> (1,942,891)
<TOTAL-ASSETS> 16,103,772
<CURRENT-LIABILITIES> 7,905,318
<BONDS> 0
0
0
<COMMON> 25,750
<OTHER-SE> 3,838,429
<TOTAL-LIABILITY-AND-EQUITY> 16,103,772
<SALES> 34,540,269
<TOTAL-REVENUES> 34,540,269
<CGS> 31,818,008
<TOTAL-COSTS> 31,818,008
<OTHER-EXPENSES> 2,691,872
<LOSS-PROVISION> 6,877
<INTEREST-EXPENSE> 600,583
<INCOME-PRETAX> (577,071)
<INCOME-TAX> 0
<INCOME-CONTINUING> (577,071)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (577,071)
<EPS-PRIMARY> (0.22)
<EPS-DILUTED> (0.22)
</TABLE>
