<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 December 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.)
9200 DADELAND BLVD., MIAMI, FL 33156
------------------------------------
(Address of Principal Executive Offices)
(305) 670-9660
--------------
(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
<PAGE> 2
Transitional Small Business Disclosure Format (check one):
Yes No X
--- ---
2
<PAGE> 3
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 Balanced Sheet at December 31, 1998
Condensed Statements of Operations for the Three Months Ended December 31,
1998 and 1997
Condensed Statements of Stockholders' Equity for the Three Months Ended
December 31, 1998
Condensed Statements of Cash Flows for the Three Months Ended December 31,
1998 and 1997
Notes to Condensed Financial Statements
3
<PAGE> 4
WEST INDIES SUGAR CORPORATION
CONDENSED BALANCE SHEET
<TABLE>
<CAPTION>
December 31, 1998
- --------------------------------------------------------------------------
<S> <C>
ASSETS
CURRENT
Cash and cash equivalents $ 181,582
Other 1,048
- --------------------------------------------------------------------------
Total current assets 182,630
- --------------------------------------------------------------------------
$ 182,630
- --------------------------------------------------------------------------
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT
Accounts payable and accrued expenses $ 17,754
- --------------------------------------------------------------------------
TOTAL CURRENT LIABILITIES 17,754
- --------------------------------------------------------------------------
COMMITMENT AND CONTINGENCIES
STOCKHOLDERS' EQUITY
Common stock, $1 par; 550,231 shares authorized;
550,014 shares outstanding 550,014
Deficit (385,138)
- --------------------------------------------------------------------------
TOTAL STOCKHOLDERS' EQUITY 164,876
- --------------------------------------------------------------------------
$ 182,630
- --------------------------------------------------------------------------
</TABLE>
See accompanying notes to condensed financial statements.
4
<PAGE> 5
WEST INDIES SUGAR CORPORATION
CONDENSED STATEMENTS OF OPERATIONS
<TABLE>
<CAPTION>
Three months ended December 31, 1998 1997
- --------------------------------------------------------------------------------------------------
<S> <C> <C>
Interest income $1,576 $ 3,536
- --------------------------------------------------------------------------------------------------
Total income 1,576 3,536
- --------------------------------------------------------------------------------------------------
Consulting and professional fees 29,414 40,723
General and administrative expenses 2,020 1,209
- --------------------------------------------------------------------------------------------------
Total expenses 31,434 41,932
- --------------------------------------------------------------------------------------------------
NET LOSS $(29,858) $(38,396)
- --------------------------------------------------------------------------------------------------
Weighted average number of common shares outstanding 550,014 550,014
- --------------------------------------------------------------------------------------------------
Net loss per common share $ (.05) $ (.07)
- --------------------------------------------------------------------------------------------------
</TABLE>
See accompanying notes to condensed financial statements.
5
<PAGE> 6
WEST INDIES SUGAR CORPORATION
CONDENSED STATEMENTS OF STOCKHOLDERS' EQUITY
<TABLE>
<CAPTION>
Common Stock Retained Total
------------------------ Earnings Stockholders'
Shares Amount (Deficit) Equity
- -----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Balance at October 1, 1998 550,014 $550,014 $(355,280) $194,734
Net (loss) -- -- (29,858) (29,858)
- -----------------------------------------------------------------------------------------------------------------
Balance at December 31, 1998 550,014 $550,014 $(385,138) $164,876
- -----------------------------------------------------------------------------------------------------------------
</TABLE>
See accompanying notes to condensed financial statements.
6
<PAGE> 7
WEST INDIES SUGAR CORPORATION
CONDENSED STATEMENTS OF CASH FLOWS
<TABLE>
<CAPTION>
Three months ended December 31, 1998 1997
- ----------------------------------------------------------------------------------------------
<S> <C> <C>
OPERATING ACTIVITIES:
NET LOSS $(29,858) $(38,396)
Adjustments to reconcile net (loss) to cash flows
used in operating activities:
Decrease in other current assets 324 254
Increase in accounts payable and
accrued expenses 14,184 8,695
- ----------------------------------------------------------------------------------------------
Net cash used in operating activities (15,350) (29,447)
- ----------------------------------------------------------------------------------------------
Net decrease in cash (15,350) (29,447)
Cash and cash equivalents,
beginning of period 196,932 346,180
- ----------------------------------------------------------------------------------------------
Cash and cash equivalents, end of period $181,582 $316,733
- ----------------------------------------------------------------------------------------------
SUPPLEMENTAL DISCLOSURES:
Cash paid for interest $ -- --
Cash paid for taxes $ -- --
</TABLE>
See accompanying notes to condensed financial statements.
7
<PAGE> 8
WEST INDIES SUGAR CORPORATION
NOTES TO CONDENSED FINANCIAL STATEMENTS
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 three
month period ended December 31, 1998 are not
necessarily indicative of the results that may be
expected for the year ending September 30, 1999.
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, 1998.
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 materially in recent periods. Consequently,
the cost of administering the Registrant's affairs has also increased
substantially. 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 very 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, or reducing the level
of the Registrant's activities further so that its assets are not depleted to
the point which it is unable to prosecute its claim. At this time, Management
cannot predict whether any such financing will be obtained or what other cost
reduction measures will become necessary.
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
<PAGE> 10
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
<PAGE> 11
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)
February 11, 1999
11
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> SEP-30-1999
<PERIOD-START> OCT-01-1998
<PERIOD-END> DEC-31-1998
<CASH> 181,582
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 182,630
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 182,630
<CURRENT-LIABILITIES> 17,754
<BONDS> 0
0
0
<COMMON> 550,014
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 182,630
<SALES> 0
<TOTAL-REVENUES> 1,576
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 31,434
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> (29,858)
<INCOME-TAX> 0
<INCOME-CONTINUING> (29,858)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (29,858)
<EPS-PRIMARY> (.05)
<EPS-DILUTED> (.05)
</TABLE>
