<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 June 30, 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.)
9200 S. DADELAND BLVD., MIAMI, FL 33156
--------------------------------------------
(Address of Principal Executive Offices)
(305) 670-9660
--------------
(Issuer's Telephone Number, Including Area Code)
200 NORTHEAST 2ND DRIVE, HOMESTEAD, FL 33030
--------------
(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 June 30, 1998
Condensed Statements of Operations for the Three Months and Nine Months
ended June 30, 1998 and 1997
Condensed Statements of Stockholders' Equity for the Nine Months ended
June 30, 1998
Condensed Statements of Cash Flows for the Nine Months ended June 30, 1998
and 1997
Notes to Condensed Financial Statements
3
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WEST INDIES SUGAR CORPORATION
CONDENSED BALANCE SHEET
(UNAUDITED)
<TABLE>
<CAPTION>
June
30, 1998
- -----------------------------------------------------------------------------------------------------------
<S> <C>
ASSETS
CURRENT
Cash and cash equivalents $ 224,241
Other 1,653
- -----------------------------------------------------------------------------------------------------------
Total current assets 225,894
- -----------------------------------------------------------------------------------------------------------
$ 225,894
- -----------------------------------------------------------------------------------------------------------
LIABILITIES AND STOCKHOLDERS' EQUITY
COMMITMENT AND CONTINGENCIES
STOCKHOLDERS' EQUITY
Common stock, $1 par; 550,231 shares authorized;
550,014 shares outstanding $ 550,014
Deficit (324,120)
- -----------------------------------------------------------------------------------------------------------
TOTAL STOCKHOLDERS' EQUITY 225,894
- -----------------------------------------------------------------------------------------------------------
$ 225,894
- -----------------------------------------------------------------------------------------------------------
</TABLE>
See accompanying notes to condensed financial statements.
4
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WEST INDIES SUGAR CORPORATION
CONDENSED STATEMENTS OF OPERATIONS
(UNAUDITED)
<TABLE>
<CAPTION>
Three months ended Nine months ended
June 30, June 30,
1997 1998 1997 1998
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Interest income $ 4,312 $ 2,430 $ 14,543 $ 8,799
- -------------------------------------------------------------------------------------------------------------------
Total income 4,312 2,430 14,543 8,799
- -------------------------------------------------------------------------------------------------------------------
Consulting and professional fees 36,847 34,961 131,543 120,343
General and administrative expenses 3,090 1,045 7,661 7,676
- -------------------------------------------------------------------------------------------------------------------
Total expenses 39,937 36,006 139,204 128,019
- -------------------------------------------------------------------------------------------------------------------
NET LOSS BEFORE INCOME TAXES (35,625) (33,576) (124,661) (119,220)
- -------------------------------------------------------------------------------------------------------------------
NET LOSS $(35,625) $(33,576) $(124,661) $(119,220)
- -------------------------------------------------------------------------------------------------------------------
Weighted average number of common
shares outstanding 550,014 550,014 550,014 550,014
- -------------------------------------------------------------------------------------------------------------------
Net loss per common share $ (.06) $ (.06) $ (.23) $ (.22)
- -------------------------------------------------------------------------------------------------------------------
</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>
Balance at October 1, 1997 550,014 $550,014 $ (204,900) $ 345,114
Net (loss) - - 119,220 119,220
- ---------------------------------------------------------------------------------------------------------------------
Balance at June 30, 1998 550,014 $550,014 $(324,120) $ 225,894
- ---------------------------------------------------------------------------------------------------------------------
</TABLE>
See accompanying notes to condensed financial statements.
6
<PAGE> 7
WEST INDIES SUGAR CORPORATION
CONDENSED STATEMENTS OF CASH FLOWS
(UNAUDITED)
<TABLE>
<CAPTION>
Nine months ended June 30, 1997 1998
- --------------------------------------------------------------------------------------------------
<S> <C> <C>
OPERATING ACTIVITIES:
NET LOSS $(124,661) $(119,220)
Adjustments to reconcile net (loss) to cash flows
used in operating activities:
Decrease (increase) in other current assets 5,836 916
(Decrease) increase in accounts payable and
accrued expenses (13,836) (3,635)
Decrease in income taxes payable (28,604) -
- ---------------------------------------------------------------------------------------------------
Net cash used in operating activities (161,265) (121,939)
- ---------------------------------------------------------------------------------------------------
Net decrease in cash (161,265) (121,939)
Cash and other short term investments,
beginning of period 576,405 346,180
- ---------------------------------------------------------------------------------------------------
Cash and other short term investments, end of period $ 415,140 $224,241
- ---------------------------------------------------------------------------------------------------
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 statements
PRESENTATION 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 nine month period ended
June 30, 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.
8
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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 and have been reduced significantly since 1996. 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
Effective June 4, 1998, Eliot Stein, who had served as the Registrant's
sole director and since 1996 as Chairman of the Board, retired from his
positions. Prior to his retirement as sole director, Mr. Stein elected Wendy
Norris and James A. Star as directors. Ms. Norris, age 37, is currently serving
as President of the Registrant, and Mr. Star, age 37, is currently Vice
President-Investments of Henry Crown and Company, a privately owned holding
company based in Chicago, IL. Prior to June 1994, Mr. Star was a portfolio
manager and investment analyst at Harris Associates, L.P., a Chicago investment
advisory firm. At the present time, Ms. Norris and Mr. Star comprise the entire
Board of Directors of the Registrant.
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibit 27.1
Financial Data Schedule
(b) None
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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)
August 7, 1998
11
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> SEP-30-1998
<PERIOD-START> OCT-01-1997
<PERIOD-END> JUN-30-1998
<CASH> 224,241
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 225,894
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 225,814
<CURRENT-LIABILITIES> 0
<BONDS> 0
0
0
<COMMON> 550,014
<OTHER-SE> (324,120)
<TOTAL-LIABILITY-AND-EQUITY> 225,894
<SALES> 0
<TOTAL-REVENUES> 8,799
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 128,019
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> (119,220)
<INCOME-TAX> 0
<INCOME-CONTINUING> (119,220)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (119,220)
<EPS-PRIMARY> (.22)
<EPS-DILUTED> (.22)
</TABLE>
