U.S. SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10QSB
[X] QUARTERLY REPORT UNDER SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For Quarterly period ended June 30, 1999
[ ] TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE
EXCHANGE ACT
For the transition period from to
Commission File No. 0-3802
WESTERN STANDARD CORPORATION
----------------------------
(Exact Name of Registrant as Specified in its Charter)
WYOMING 83-0184378
- ------- ----------
(State or other jurisdiction (IRS Employer
of incorporation or organization) Identification No.)
205 SOUTH BROADWAY, RIVERTON, WY 82501
- -------------------------------- -----
(address of principal executive offices)
307-856-9288
------------
(Issuer's telephone number)
UNCHANGED
---------
(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 _____.
APPLICABLE ONLY TO CORPORATE ISSUERS
State the number of shares outstanding of each of the issuer's
classes of common equity, as of the latest practicable date:
9,965,015 common $0.05 par at August 10, 1999.
PART 1, ITEM 1, 2 (1)(i)
FORM 10QSB
WESTERN STANDARD CORPORATION
Consolidated Balance Sheet
Unaudited
June 30, 1999
Current Assets:
Cash $ 609,067.27
Accounts Receivable 536,284.06
Allowance for Doubtful Accounts ( 17,034.29)
Notes receivable - officer 10,000.00
Inventory - at cost 42,137.74
Total Current Assets $ 1,180,454.78
Property & Equipment, Net of
Accumulated Depreciation,
Amortization and Depletion $ 8,809,895.44
Other Assets:
* Accounts Receivable - Snow King Resort
Center, Inc. $ 1,286,003.42
Allowance for collectibility ( 1,000,000.00)
Prepaid expenses 83,113.30
Prepaid loan fees 213,439.88
Investment in SKRCI 6,720.00
Investment in JH Spring Water 5,279.72
Leasehold Interest 33,916.84
Restricted Cash Reserves 1,097.57
Other 1,164.86
Total Other Assets $ 630,735.59
TOTAL ASSETS $ 10,621,085.81
The Registrant also owns 12,000 shares of Class B Common stock in
Snow King Resort, Inc. at Zero Basis.
* This account receivable is from a new business, approximately
49% owned by Western Standard Corporation and operated by its
subsidiary Snow King Resort, Inc. This is not a short term
receivable.
PART 1, ITEM 1, 2 (1)(i)
FORM 10QSB
WESTERN STANDARD CORPORATION
Consolidated Balance Sheet
Unaudited
June 30, 1999
Liabilities:
Accounts Payable $ 306,875.35
Accounts Payable - Other 137,513.61
Portion of Long Term Debt
payable within one year 62,322.00
Advance Deposit 700,772.94
Accrued Expenses 516,983.00
Subtotal $ 1,724,466.90
Long Term Debt 8,967,244.84
Fee Payable - Officer 90,000.00
TOTAL LIABILITIES $ 10,781,711.74
Minority Interest in Subsidiary
2,150 shares of Class A stock
in SKRI $ 1,930,114.95
STOCKHOLDERS INVESTMENT:
Common Stock, $0.05 par
value, 10,000,000 shares
authorized, 9,965,015
issued and outstanding
at June 30, 1999 $ 401,201.02
Capital in Excess of Par
Value 3,334,801.45
Accumulated Deficit ( 5,826,743.35)
Net Stockholders
Investment ($ 2,090,740.88)
TOTAL LIABILITIES AND CAPITAL $ 10,621,085.81
PART 1, ITEM 1, 2 (1)(ii)
FORM 10QSB
WESTERN STANDARD CORPORATION
Consolidated Statement of Operations
Unaudited
Profit and Loss Information
For the Six (6) Months Ended
Jun. 30, 1999 Jun. 30, 1998
-------------- --------------
1. Gross sales less discounts,
returns and allowances $ 3,335,078.47 $ 4,257,421.80
2. Operating Revenues 996.87 -0-
3. Total of Captions 1 and 2 3,336,075.34 4,257,421.80
4. Costs and Expenses
(a) Operating Expenses 3,971,838.70 4,016,492.71
(b) Interest Expense 342,841.13 342,790.50
(c) Depreciation 330,000.00 315,400.00
Total Costs and Expenses 4,644,679.83 4,674,683.21
5. Income (Loss) before taxes
on income & extraordinary
items ( 1,308,604.49) ( 417,261.41)
6. Discontinued Operations -0- -0-
7. Provisions for taxes on
income -0- -0-
8. Income or (Loss) ( 1,308,604.49) ( 417,261.41)
9. Minority interest in
profit (loss) of
subsidiary ( 90,669.93) ( 97,095.67)
10. Income (Loss) before
extraordinary items 1,217,934.56 -0-
11. Extraordinary items,
income tax, benefit of
net operating loss
carryover -0- -0-
12. Net Income (Loss) ( 1,308,604.49) ( 320,165.74)
13. Earnings (Loss) per share:
($1,308,604.49) : 9,965,015
issued and outstanding (.1313)
($417,261.41) : 9,965,015
issued and outstanding (.0419)
14. Dividends per share -0- -0-
The results for interim periods are not necessarily indicative of
results to be expected for the year.
The information furnished for Western Standard Corporation reflects
adjustments which are, in the opinion of management, necessary to
a fair statement of the results for this interim period.
PART 1, ITEM 1, 2 (1)(iii)
FORM 10QSB
WESTERN STANDARD CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
Unaudited
For the Six (6) Months Ended
Jun. 30, 1999 Jun. 30, 1998
-------------- --------------
INCREASE (DECREASE) IN CASH:
Cash flows from operating
activities:
Cash received from
customers $ 3,049,629.93 $ 4,073,678.66
Cash paid to suppliers
and employees ( 3,409,255.94) ( 3,768,633.82)
Interest paid ( 342,841.13) ( 342,790.50)
Net cash provided
(used) by operations ($ 702,467.14) $ 37,745.66
Cash flows from investing
activities:
Increase prepaid loan
fees ( 181,781.88) -0-
Reduction in loans to
officer $ 900.00 $ 900.00
Capital expenditures ( 1,245,042.91) ( 178,237.63)
(Increase) decrease in
restricted cash 11,917.03 ( 476.73)
(Increase) reduction in
Snow King Center loan ( 30,026.68) 93,582.03
Investment ( 100.00) -0-
Net cash provided (used)
by investing
activities ($ 1,444,134.44) ($ 84,232.33)
Cash flows from financing
activities:
New Loans $ 8,993,567.98 $ 285,253.00
Principal payments to
banks ( 6,458,315.87) ( 232,479.90)
Net cash provided
(used) by financing
activities $ 2,535,252.11 $ 52,773.10
Net increase (decrease) in
cash $ 388,650.53 ($ 69,204.89)
Cash at beginning of year 220,416.74 382,161.39
Cash at end of quarter $ 609,067.27 $ 312,956.50
RECONCILIATION OF NET INCOME
TO NET CASH USED BY OPERATING
ACTIVITIES:
Net income (loss) ($ 1,004,265.24) ($ 320,165.74)
Adjustments:
Depreciation and
amortization 345,895.00 327,043.00
Decrease (increase) in
advance deposits 304,470.72 134,805.68
Increase in accounts
receivable ( 313,160.78) ( 318,548.82)
Decrease in prepaid expenses 98,015.03 124,248.82
Decrease (increase) in
inventories 4,920.36 ( 12,824.98)
(Decrease) increase in
accounts payable and
accrued expenses 139,281.65 124,792.05
Collection of trail
receivable 26,715.37 -0-
Allocation of Minority
Interest in profit
(loss) of subsidiary ( 304,339.25) ( 97,095.67)
Net cash provided (used) by
operations ($ 702,467.14) $ 37,745.66
PART I, ITEM 1, 2 (2)
FORM 10QSB
WESTERN STANDARD CORPORATION
(ii) Material Subsequent Events and Contingencies
None
(iii) Significant Equity Investors
Six investors own approximately 23.57% of Snow King
Resort, Inc., a Western Standard Corporation sub-
sidiary.
(iv) Significant Disposition and Purchase Business
Combinations.
None
(v) Material accounting changes
None
PART I, Item 1, 2 (2)(iii)
Significant Equity Investors
Unaudited
January 1 to
Jun. 30, 1999
--------------
Sales $ 3,324,362.13
Gross Income $ 3,324,362.13
Net Income (Loss) from continuing operations ($ 1,291,214.47)
Less Minority Interest in profit or (loss) -
23.57% ($ 90,669.93)
Net Income (Loss) ($ 1,200,544.54)
The above figures are for Snow King Resort, Inc., a Western
Standard Corporation subsidiary. The Registrant owns approximately
76.43 percent of the outstanding Snow King Resort, Inc. voting
stock.
PART II
FORM 10QSB
WESTERN STANDARD CORPORATION
Other Information
1. Legal Proceedings.
At June 30, 1999 and August 10, 1999, there were no lawsuits
pending against Western Standard Corporation or its subsidiary,
Snow King Resort, Inc.
2. Change in Securities
None
3. Defaults upon senior securities.
None
4. Submission of matters to a vote of security holders.
None
5. Other information.
None
6. Exhibits and reports on Form 8-K.
(a) Exhibit 27 - Financial Data Schedule
(b) No reports on Form 8-K were filed during this quarter
303(b) 2 Management's Discussion and Analysis of Financial
Condition and Results of Operations.
(a) ANALYSIS OF FINANCIAL CONDITION:
Heavy startup and operating costs at the Snow King Resort
Center have created a heavy drain on Snow King Resort's
cash flow. At times Snow King Resort has not had
sufficient cash flow to pay its creditors in a timely
manner. Principal and interest payments on loans are
current.
In March, 1999, Snow King Resort, Inc. borrowed
$10,000,000 including a line of credit for $650 to be
used to pay off existing debt and to refurbish the Hotel
as needed. Major debts were paid off. Refurbishing is
in progress.
Western Standard Corporation, the parent company, will
have sufficient funds to cover its expenses during 1999
from cash reserves, oil and gas royalties, interest, and
accounts receivable.
(c) RESULTS OF OPERATIONS:
Net loss for the first six months of 1999 amounted to
$1,308,604, compared to a loss for the first six months
of 1998 in the amount of $417,261.
Profits and losses for the first six months of 1999 and
1998 came from:
SOURCE 1999 1998
----------- ---------
Western Standard Corporation ($ 18,356) ($ 5,290)
Snow King Resort, Inc. ( 1,291,214) ( 411,946)
Western Recreation Corporation 966 ( 25)
($ 1,308,604) ($ 417,261)
Hotel bookings at Snow King Resort, Inc. appear to be very
good for this summer.
FORM 10QSB
WESTERN STANDARD CORPORATION
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.
WESTERN STANDARD CORPORATION
----------------------------
(Registrant)
Dated: August 10, 19999 /s/ Stanford E. Clark
----------------------------
Stanford E. Clark, President
Treasurer
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1999
<PERIOD-START> JAN-01-1999
<PERIOD-END> JUN-30-1999
<CASH> 609,067
<SECURITIES> 0
<RECEIVABLES> 546,284
<ALLOWANCES> 17,034
<INVENTORY> 42,138
<CURRENT-ASSETS> 1,180,455
<PP&E> 13,724,576
<DEPRECIATION> 4,914,680
<TOTAL-ASSETS> 10,621,086
<CURRENT-LIABILITIES> 1,724,467
<BONDS> 0
<COMMON> 401,201
0
0
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 10,621,086
<SALES> 3,335,078
<TOTAL-REVENUES> 3,336,075
<CGS> 0
<TOTAL-COSTS> 4,644,680
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 342,841
<INCOME-PRETAX> (1,308,604)
<INCOME-TAX> 0
<INCOME-CONTINUING> (1,308,604)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (1,308,604)
<EPS-BASIC> 0
<EPS-DILUTED> (.13)
</TABLE>
