<PAGE> 1
U.S. SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 10-QSB
X Quarterly report under Section 13 or 15(d) of the Securities Exchange Act
- --- of 1934
For the quarterly period ended March 31, 1998
- --- Transition report under Section 13 or 15(d) of the Exchange Act
For the transition period from ________________ to ___________________
Commission file number 1-3172
WEST INDIES SUGAR CORPORATION
-----------------------------
(Exact Name of Small Business Issuer as Specified in Its Charter)
DELAWARE 65-072347
------------------------------- ------------------
(State or Other Jurisdiction of (I.R.S. Employer
Incorporation or Organization) Identification No.)
200 NORTHEAST 2ND DRIVE, HOMESTEAD, FL 33030
--------------------------------------------
(Address of Principal Executive Offices)
(305) 248-4254
--------------
(Issuer's Telephone Number, Including Area Code)
Not Applicable
--------------
(Former Name, Former Address and Former Fiscal Year,
if Changed Since Last Report)
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
--- ---
State the number of shares outstanding of each of the issuer's classes of
common equity, as of the latest practicable date: 550,014
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Transitional Small Business Disclosure Format (check one):
Yes No X
--- ---
2
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PART I
FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
The following unaudited condensed financial statements and accompanying
notes of West Indies Sugar Corporation are included in this report:
Condensed Balance Sheet at March 31, 1998
Condensed Statements of Operations for the Three Months and Six Months
Ended March 31, 1998 and 1997
Condensed Statements of Stockholders' Equity for the Six Months Ended
March 31, 1998
Statements of Cash Flows for the Six Months Ended March 31, 1998 and 1997
Notes to Condensed Financial Statements
3
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WEST INDIES SUGAR CORPORATION
CONDENSED BALANCE SHEET
(UNAUDITED)
<TABLE>
<CAPTION>
March 31, 1998
- -----------------------------------------------------------------------------------------------------------
<S> <C>
ASSETS
CURRENT
Cash and cash equivalents $ 261,134
Other 1,924
- -----------------------------------------------------------------------------------------------------------
Total current assets 263,058
- -----------------------------------------------------------------------------------------------------------
$ 263,058
- -----------------------------------------------------------------------------------------------------------
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT
Accounts payable and accrued expenses $ 3,588
- -----------------------------------------------------------------------------------------------------------
TOTAL CURRENT LIABILITIES 3,588
- -----------------------------------------------------------------------------------------------------------
COMMITMENT AND CONTINGENCIES
STOCKHOLDERS' EQUITY
Common stock, $1 par; 550,231 shares authorized;
550,014 shares outstanding 550,014
Deficit (290,544)
- -----------------------------------------------------------------------------------------------------------
TOTAL STOCKHOLDERS' EQUITY 259,470
- -----------------------------------------------------------------------------------------------------------
$ 263,058
- -----------------------------------------------------------------------------------------------------------
</TABLE>
See accompanying notes to condensed financial statements.
4
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WEST INDIES SUGAR CORPORATION
CONDENSED STATEMENTS OF OPERATIONS
(UNAUDITED)
<TABLE>
<CAPTION>
For the three months ended For the six months ended
March 31, March 31,
1998 1997 1998 1997
- ------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Interest income $ 2,833 $ 4,727 $ 6,369 $ 10,231
- ------------------------------------------------------------------------------------------------------------------
Total income 2,833 4,727 6,369 10,231
- ------------------------------------------------------------------------------------------------------------------
Consulting and professional fees 44,659 53,490 85,382 94,696
General and administrative expenses 5,422 1,261 6,631 4,571
- ------------------------------------------------------------------------------------------------------------------
Total expenses 50,081 54,751 92,013 99,267
- ------------------------------------------------------------------------------------------------------------------
NET LOSS BEFORE INCOME TAXES (47,248) (50,024) (85,644) (89,036)
- ------------------------------------------------------------------------------------------------------------------
NET LOSS $(47,248) $(50,024) $(85,644) $(89,036)
- ------------------------------------------------------------------------------------------------------------------
Weighted average number of
common shares outstanding 550,014 550,014 550,014 550,014
- ------------------------------------------------------------------------------------------------------------------
Net loss per common share $ (.09) $ (.09) $ (.16) $ (.16)
- ------------------------------------------------------------------------------------------------------------------
</TABLE>
See accompanying notes to condensed financial statements.
5
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WEST INDIES SUGAR CORPORATION
CONDENSED STATEMENTS OF STOCKHOLDERS' EQUITY
(UNAUDITED)
<TABLE>
<CAPTION>
Common Stock Retained Total
---------------------- Earnings Stockholders'
Shares Amount (Deficit) Equity
- ------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Balance at October 1, 1997 550,014 $550,014 $(204,900) $ 345,114
Net (loss) -- -- (85,644) (85,644)
- ------------------------------------------------------------------------------------------------------------------
Balance at March 31, 1998 550,014 $550,014 $(290,544) $(259,470)
- ------------------------------------------------------------------------------------------------------------------
</TABLE>
See accompanying notes to condensed financial statements.
6
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WEST INDIES SUGAR CORPORATION
CONDENSED STATEMENTS OF CASH FLOWS
(UNAUDITED)
<TABLE>
<CAPTION>
Six months ended March 31, 1998 1997
- -------------------------------------------------------------------------------------------------
<S> <C> <C>
OPERATING ACTIVITIES:
NET LOSS $(85,644) $ (89,036)
Adjustments to reconcile net (loss) to cash flows
used in operating activities:
Decrease (increase) in other current assets 645 5,593
(Decrease) increase in accounts payable and
accrued expenses (47) (19,124)
Decrease in income taxes payable -- (28,604)
- ---------------------------------------------------------------------------------------------------
Net cash used in operating activities (85,046) (131,171)
- ---------------------------------------------------------------------------------------------------
Net decrease in cash (85,046) (131,171)
Cash and cash equivalents,
beginning of period 346,180 576,405
- ---------------------------------------------------------------------------------------------------
Cash and cash equivalents, end of period $261,134 $ 445,234
- ---------------------------------------------------------------------------------------------------
SUPPLEMENTAL DISCLOSURES:
Cash paid for interest $ -- $ 9,841
Cash paid for taxes $ -- $ 28,604
</TABLE>
See accompanying notes to condensed financial statements.
7
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WEST INDIES SUGAR CORPORATION
NOTES TO CONDENSED FINANCIAL STATEMENTS
(UNAUDITED)
1. BASIS OF The accompanying unaudited condensed financial
PRESENTATION statements have been prepared in accordance with
generally accepted accounting principles for
interim financial information and with the
instructions to Form 10-QSB. Accordingly, they do
not include all of the information and footnotes
required by generally accepted accounting
principles for complete financial statements. In
the opinion of management, all adjustments
(consisting of normal recurring accruals)
considered necessary for a fair presentation have
been included. Operating results for the six month
period ended March 31, 1998 are not necessarily
indicative of the results that may be expected for
the year ending September 30, 1998. For further
information, refer to the financial statements and
footnotes thereto included in the Company's Annual
Report on Form 10-KSB for the year ended September
30, 1997.
2. SUMMARY OF SIGNIFICANT Earnings Per Share
ACCOUNTING POLICIES ------------------
In February 1997, the Financial Accounting
Standards Board ("FASB") issued Statement of
Financial Accounting Standards No. 128 "Earnings
Per Share." FAS No. 128 simplifies the standards
for computing earnings per share ("EPS")
previously found in APB No. 15 "Earnings Per
Share". It replaces the presentation of primary
EPS with a presentation of basic EPS. It also
requires dual presentation of basic and diluted
EPS on the face of the income statement for all
entities with complex capital structures and
requires a reconciliation of the numerator and
denominator of the diluted EPS computation. The
Company has adopted FAS No. 128 for the six months
ended March 31, 1998. The implementation did not
have an effect on the current or prior year
financial statements.
8
<PAGE> 9
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION
The Registrant's only business relates to carrying out a plan of complete
liquidation, which it expects will involve the prosecution and/or settlement of
its claim against Cuba for expropriating the Registrant's operating
subsidiaries and their property. Since the Registrant has no ongoing operations
and its only activities since 1960 have been related to the claim, Management
believes that period-to-period differences in financial results are not
particularly meaningful, except as a general measurement of the Registrant's
financial capability to pursue its claim from existing sources of funds.
Because the Registrant essentially remained dormant for many years, it required
minimal expenditures to monitor the Cuban claim and administer its affairs.
However, due to political and other developments affecting relations with Cuba
(which have tended to increase claims settlement prospects), the Registrant's
level of activities has increased in recent periods. Consequently, Management
believes that the cost of administering the Registrant's affairs is also likely
to continue to increase in the near term. To a significant degree, such costs
result from the Registrant's continued status as technically a "public" company
under the federal securities laws, which require compiling information and
filing reports and thereby entail greater compliance costs for professional and
other fees. The Registrant's assets capable of being devoted to these ends are
limited. As a result, Management is considering whether other steps may have to
be taken, such as incurring debt or seeking additional equity from existing
stockholders or outside parties, in order to fund increased expenditures. At
this time, Management cannot predict whether any such financing will be
necessary or, if it becomes necessary, when that will occur, or on what terms
it may be available.
FORWARD LOOKING STATEMENTS
The Private Securities Litigation Reform Act of 1995 provides a "safe
harbor" for forward looking statements. In addition to historical information,
this report may be construed to contain forward looking statements that are
subject to risks and uncertainties that could cause financial results to differ
materially from expected results. Such statements are based on Management's
beliefs and assumptions made on information currently available to it. The
Registrant is under no obligation to publicly update or revise any forward
looking statements, whether as a result of new information, future events or
otherwise.
9
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PART II
OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
None
ITEM 2. CHANGES IN SECURITIES AND USE OF PROCEEDS
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
(a) Exhibit 27.1
Financial Data Schedule
(b) None 10
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SIGNATURES
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.
WEST INDIES SUGAR CORPORATION
By: /s/ Steven L. Risi
------------------------------
Steven L. Risi, Treasurer
(principal financial officer)
April 28, 1998
11
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> SEP-30-1998
<PERIOD-START> OCT-01-1997
<PERIOD-END> MAR-31-1998
<CASH> 261,134
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 263,058
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 263,058
<CURRENT-LIABILITIES> 3,588
<BONDS> 0
0
0
<COMMON> 550,014
<OTHER-SE> (290,544)
<TOTAL-LIABILITY-AND-EQUITY> 259,470
<SALES> 0
<TOTAL-REVENUES> 6,369
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 92,013
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> (85,644)
<INCOME-TAX> 0
<INCOME-CONTINUING> (85,644)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (85,644)
<EPS-PRIMARY> (.16)
<EPS-DILUTED> (.16)
</TABLE>
