U.S. Securities and Exchange Commission
Washington, D.C. 20549
Form 10-QSB/A
This Amendment No. 1 is submitted to amend the following
August 31, 1999 information in the Registrant's Consolidated Balance Sheets,
which is included under Item 1 (on page 2) of the Registrant's original
Quarterly Report on Form 10-QSB filed on October 15, 1999 (the "Form 10-QSB"):
Current portion of long-term debt; total current liabilities; and long-term debt
less current portion. This Amendment also amends the August 31, 1999 working
capital amount specified in the first paragraph under "Liquidity and Capital
Resources," which is included under Item 2 (on page 9) of the Form 10-QSB. This
Amendment also amends the amount of current liabilities specified on Exhibit 27
to the Form 10-QSB.
[X] QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended August 31, 1999
-------------------------------------------------
[ ] TRANSITION REPORT UNDER SECTION 13 OF 15(d) OF THE EXCHANGE ACT
For the transition period from ___________________to___________________________
Commission File Number 000-21623
OBIE MEDIA CORPORATION
- --------------------------------------------------------------------------------
(Exact name of small business issuer as specified in its charter)
OREGON 93-0966515
- --------------------------------------------------------------------------------
(State or other jurisdiction of (IRS Employer
incorporation or organization) Identification No.)
4211 West 11th Ave., Eugene, Oregon 97402
- --------------------------------------------------------------------------------
(Address of principal executive offices)
541-686-8400 FAX 541-345-4339
- --------------------------------------------------------------------------------
(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 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 [ ].
As of October 11, 1999, 5,322,949 shares of the issuer's common stock were
outstanding.
This report contains 5 pages.
<PAGE>
OBIE MEDIA CORPORATION
Consolidated Balance Sheets
ASSETS
August 31, November 30,
1999 1998
-------------- --------------
CURRENT ASSETS:
Cash $ 421,460 $ 326,140
Accounts receivable, net 6,981,079 6,719,218
Prepaids and other current assets 2,086,021 1,156,061
Deferred income taxes 758,832 758,832
-------------- --------------
Total current assets 10,247,392 8,960,251
PROPERTY AND EQUIPMENT, NET 11,005,842 10,493,174
GOODWILL, NET 7,295,534 7,696,394
OTHER ASSETS, NET 343,731 497,512
-------------- --------------
$28,892,499 $27,647,331
============== ==============
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Current portion of long-term debt $ 1,443,375 $ 1,511,276
Line of credit 502,778 1,414,877
Accounts payable 735,384 780,268
Accrued expenses 1,423,557 2,674,287
Income taxes payable 438,374 299,090
Deferred revenue 1,654,438 1,247,470
-------------- --------------
Total current liabilities 6,197,906 7,927,268
DEFERRED INCOME TAXES 783,502 783,502
LONG-TERM DEBT, LESS CURRENT PORTION 5,156,625 13,354,395
-------------- --------------
Total liabilities 12,138,033 22,065,165
-------------- --------------
MINORITY INTEREST IN SUBSIDIARY 35,424 35,424
SHAREHOLDERS' EQUITY:
Preferred stock, without par value,
10,000,000 shares authorized,
no shares issued or outstanding
Common stock, without par value;
20,000,000 shares authorized,
5,322,949 and 4,315,728 shares
issued and outstanding, respectively 16,607,905 6,851,053
Options issued for common stock 211,763 211,763
Foreign currency translation 584 -
Accumulated deficit (101,210) (1,516,074)
-------------- --------------
Total shareholders' equity 16,719,042 5,546,742
-------------- --------------
$28,892,499 $27,647,331
============== ==============
See accompanying notes
<PAGE>
Liquidity and Capital Resources
We have historically satisfied our working capital requirements with
cash from operations and revolving credit borrowings. Our working capital at
August 31, 1999 and November 30, 1998 was $4.0 million and $1.0 million,
respectively. The increase in working capital is primarily the result of our
stock offering, which was completed in August, 1999. The net proceeds from the
offering were used to reduce our debt, including borrowings on our line of
credit.
Net cash provided by operating activities was $427,000 during the nine
months ended August 31, 1999 compared to $1.1 million during the same period in
fiscal 1998. The decrease from the first nine months of fiscal 1998 to the first
nine months of fiscal 1999 was primarily due to reductions in liabilities for
transit district fees which were partially offset by increases in deferred
revenue.
Net cash used in investing activities was $1.3 million during each of
the nine months ended August 31, 1999 and 1998. These expenditures were
principally related to the cost of building outdoor advertising displays,
upgrading our computer capabilities and capital expenditures related to opening
new offices.
Net cash provided by financing activities was $918,000 and $270,000
during the nine months ended August 31, 1999 and 1998, respectively. In August
1999, we completed an offering of 1,000,000 shares of our common stock at $11.00
per share, the net proceeds of $9.7 million from the offering were used to
retire debt. As of August 31, 1999, we had borrowings on our line of credit of
$503,000 and available borrowing capacity, based on collateralized accounts, of
$3.4 million.
We expect to pursue a policy of continued growth through obtaining new
transit district agreements, acquiring out-of-home advertising companies or
assets and constructing new outdoor advertising displays. We intend to finance
our future expansion activities using a combination of internal and external
sources. We believe that internally generated funds and funds available for
borrowing under our bank credit facilities will be sufficient to satisfy all
debt service obligations and to finance our existing operations, including
anticipated capital expenditures, but excluding possible acquisitions, for the
next twelve months. We may require additional debt or equity financing in the
event of future acquisitions, if any, or if we obtain significant new transit
advertising agreements.
Seasonality
Obie Media's revenues and operating results historically have
fluctuated by season. Typically, our results of operations are strongest in the
fourth quarter and weakest in the first quarter of our fiscal year ending
November 30. Our transit advertising operations are more seasonal than our
outdoor advertising operations because our outdoor advertising display space,
unlike our transit advertising display space, is and has been sold nearly
exclusively by means of 12-month contracts. We believe that the seasonality of
our revenues and operating results will increase as our transit advertising
operations continue to expand more rapidly than our outdoor advertising
operations. This seasonality, together with fluctuations in general and regional
economic conditions and the timing and expenses related to acquisitions, the
obtaining of new transit agreements and other actions we have taken to implement
our growth strategy, have contributed to fluctuations in our periodic operating
results. These fluctuations likely will continue. Accordingly, our results of
operations in any period may not be indicative of the results to be expected for
any future period.
Market Risk
We have not entered into derivative financial instruments. We may be
exposed to future interest rate changes on our debt. We do not believe that a
hypothetical 10 % change in interest rates would have a material effect on our
cash flows.
<PAGE>
Signature
In accordance with the requirements of the Exchange Act, the registrant caused
this report to be signed on its behalf by the undersigned, thereunto duly
authorized.
Obie Media Corporation
Date October 29, 1999 By:/s/ James W. Callahan
James W. Callahan
Chief Financial Officer
Date October 29, 1999 By: /s/ Michael E. Hubbard
Michael E. Hubbard
Corporate Controller
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
This schedule contains summary financial information extracted from the
financial statements of Obie Media Corporation, which are included in its
quarterly report on Form 10-QSB for the quarter ended August 31, 1999, and is
qualified in its entirety by reference to such financial statements.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> NOV-30-1999
<PERIOD-END> AUG-31-1999
<CASH> 421,460
<SECURITIES> 0
<RECEIVABLES> 7,402,747
<ALLOWANCES> 421,668
<INVENTORY> 0
<CURRENT-ASSETS> 10,247,392
<PP&E> 15,919,911
<DEPRECIATION> 4,914,069
<TOTAL-ASSETS> 28,892,499
<CURRENT-LIABILITIES> 6,197,906
<BONDS> 6,600,000
0
0
<COMMON> 16,607,905
<OTHER-SE> 111,137
<TOTAL-LIABILITY-AND-EQUITY> 28,892,499
<SALES> 0
<TOTAL-REVENUES> 25,369,716
<CGS> 0
<TOTAL-COSTS> 18,266,418
<OTHER-EXPENSES> 1,086,582
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 846,765
<INCOME-PRETAX> 2,319,448
<INCOME-TAX> 904,584
<INCOME-CONTINUING> 1,414,864
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 1,414,864
<EPS-BASIC> 0.32
<EPS-DILUTED> 0.32
</TABLE>
