FORM 10-QSB
SECURITIES AND EXCHANGE COMMISSION
Washington D.C. 20549
Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act
of 1934
For the quarterly period ended June 30, 1998
Commission File No. 0-23691
SOUTHWEST INDUSTRIAL PRODUCTS, INC.
(Exact name of registrant as specified in its charter)
Minnesota 41-1853992
(State or other jurisdiction (IRS Employer Identification No.)
of Incorporation or Organization)
2710 Stemmons Freeway, Dallas, Texas 75207
(Address of principal executive office) (Zip Code)
Registrant's telephone number: (214) 638-7811
Indicate by check mark whether the Registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 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___
<PAGE>
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITIONS AND RESULTS OF OPERATIONS
The Company began operations less than one year ago, so there are no
comparisons. All financial reporting was through the wholly owned subsidiary,
International Container Corp., d/b/a Golden Pacific Bag Corp. Sales for the
quarter ending June 30 were $448,012, expenses were $408,894, for net earnings
for the quarter of $39,118.
There are no commitments for capital expenditures at this time. There
are no known trends expected to have a material impact on the Company. There are
no significant elements of income or loss that do not arise from the Company's
continuing operations.
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
None
ITEM 5. OTHER INFORMATION
None
ITEM 6. EXHIBITS AND REPORTS ON FORM 8K
None
<PAGE>
SIGNATURES
In accordance with Section 12 of the Securities Exchange Act of 1934,
the registrant caused this registration statement to be signed on its behalf by
the undersigned thereunto duly authorized.
Date: August 17, 1998
Southwest Industrial Products, Inc.
By /s/ Lindsey Vinson
-------------------------------------
Lindsey Vinson, President
<PAGE>
SOUTHWEST INDUSTRIAL PRODUCTS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF ASSETS,
LIABILITIES AND EQUITY
AS OF JUNE 30, 1998
(UNAUDITED)
<TABLE>
<CAPTION>
ASSETS
<S> <C> <C>
Current Assets:
Cash 15,000.00
Accounts Receivable 152,340.00
Inventory and work in progress 300,000.00
Total Current Assets $ 467,340.00
Property and Equipment:
Equipment 2,750,000.00
F, F & E 30,000.00
Vehicle 7,500.00
Leasehold improvements 50,000.00
Total Property and Equipment $2,837,500.00
-------------
Total Assets $3,304,840.00
=============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable 75,000.00
Total Current Liabilities $ 75,000.00
Long - Term Liabilities:
Bay Business Credit: 2,516,319.00
Total Long Term Liabilities $2,516,319.00
Common Stock Equity $ (30,970.00)
Preferred Stock Equity $ 682,551.00
-------------
Total Liabilities and Stockholders Equity $3,304,840.00
=============
</TABLE>
<PAGE>
SOUTHWEST INDUSTRIAL PRODUCTS AND
INTERNATIONAL CONTAINER CORP.
D/B/A/ GOLDEN PACIFIC BAG CORP.
COMBINED
INCOME STATEMENT
APRIL 1, 1998 - JUNE 30, 1998
Income $448,012.75
Office Expenses
Bank Charges 84.00
Equipment Rental 2,344.97
Freight 1,246.28
Insurance: 7,921.99
Materials 112,945.78
Miscellaneous 2,608.35
Payroll Expense 212,350.17
Postage & Delivery 1,524.80
Printing & Reproduction 3,545.66
Professional fees 1,305.00
Rent 31,206.80
Repairs 3,074.07
Security 700.00
Supplies 2,106.55
Taxes 720.16
Telephone 1,028.93
Travel & Entertainment 500.00
Uncategorized Expenses 6,922.79
Utilities 16,758.28
Total Expenses 408,894.58
----------
Net 39,118.17
<PAGE>
SOUTHWEST INDUSTRIAL PRODUCTS, INC.
STATEMENT OF CASH FLOWS
FOR THE QUARTER ENDING JUNE 30, 1998
CASH FLOWS FROM OPERATING ACTIVITIES:
Manufacturing Operations $39,188.00
Cash and cash equivalents:
Beginning $22,698.00
Ending $61,816.00
----------
<TABLE> <S> <C>
<ARTICLE> 5
<CIK> 0001042669
<NAME> SOUTHWEST INDUSTRIAL PRODUCTS, INC
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-START> APR-01-1998
<PERIOD-END> JUN-30-1998
<CASH> 15,000
<SECURITIES> 0
<RECEIVABLES> 152,340
<ALLOWANCES> 0
<INVENTORY> 300,000
<CURRENT-ASSETS> 467,340
<PP&E> 2,857,500
<DEPRECIATION> 0
<TOTAL-ASSETS> 3,304,840
<CURRENT-LIABILITIES> 75,000
<BONDS> 0
0
682,551
<COMMON> (30,970)
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 3,304,840
<SALES> 448,012
<TOTAL-REVENUES> 448,012
<CGS> 0
<TOTAL-COSTS> 408,894
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 39,118
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 39,118
<EPS-PRIMARY> 0.001
<EPS-DILUTED> 0.001
</TABLE>
