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 September 30, 2000
[ ] 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
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(Exact Name of Registrant as Specified in its Charter)
WYOMING 83-0184378
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(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
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(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 $.05 par at October 10, 2000.
PART 1, ITEM 1, 2 (1)(i)
CLIFFORD H. MOORE AND COMPANY, CPAs
205 South Broadway
Riverton, Wyoming 82501
INDEPENDENT ACCOUNTANT'S REPORT
We have reviewed the accompanying interim financial statements
required by the Securities and Exchange Commission (SEC) form 10QSB
of Western Standard Corporation and consolidated subsidiaries as of
September 30, 2000, and for the nine month period then ended.
These financial statements are the responsibility of the company's
management.
We conducted our review in accordance with standards
established by the American Institute of Certified Public
Accountants. A review of interim financial information consists
principally of applying analytical procedures to financial data and
making inquiries of persons responsible for financial and
accounting matters. It is substantially less in scope than an
audit conducted in accordance with generally accepted auditing
standards, the objective of which is the expression of an opinion
regarding the financial statements taken as a whole. Accordingly,
we do not express such an opinion.
Based on our review, we are not aware of any material
modifications that should be made to the accompanying financial
statements for them to be in conformity with generally accepted
accounting principles.
/s/ Clifford H. Moore and
Company, CPAs
Riverton, Wyoming
November 10, 2000
FORM 10QSB
WESTERN STANDARD CORPORATION
Consolidated Balance Sheet
Unaudited
September 30, 2000
Current Assets:
Cash $ 670,927.47
Accounts Receivable 809,342.94
Allowance for Doubtful Accounts ( 5,927.42)
Notes receivable - officer 10,000.00
Inventory - at cost 45,687.17
---------------
Total Current Assets $ 1,530,030.16
---------------
Property & Equipment, Net of
Accumulated Depreciation,
Amortization and Depletion $ 9,344,854.26
---------------
Other Assets:
* Accounts Receivable - Snow King Resort
Center, Inc. and JH Spring Water $ 1,439,019.93
Allowance for collectibility ( 1,260,000.00)
Prepaid expenses 9,937.44
Prepaid loan fees and leases 76,113.79
Investment in SKRCI 6,720.00
Leasehold Interest 32,146.84
Patronage capital 229,499.64
Other 1,164.86
---------------
Total Other Assets $ 534,602.50
---------------
TOTAL ASSETS $ 11,409,486.92
===============
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 two new businesses; one is
approximately 49% owned by Western Standard Corporation and
operated by its subsidiary Snow King Resort, Inc. The other is
totally owned by 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
September 30, 2000
Liabilities:
Accounts Payable $ 298,490.17
Accounts Payable - Other 78,641.52
Portion of Long Term Debt
payable within one year 427,731.49
Advance Deposit 239,055.90
Accrued Expenses 640,093.27
First Interstate Bank line of credit -0-
Xerox notes 4,055.82
---------------
Subtotal $ 1,688,068.17
Long Term Debt 8,763,591.83
Fee Payable - Officer 90,000.00
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TOTAL LIABILITIES $ 10,541,660.00
---------------
Minority Interest in Subsidiary
2,150 shares of Class A stock
in SKRI $ 2,175,444.98
---------------
STOCKHOLDERS INVESTMENT:
Common Stock, $0.05 par
value, 10,000,000 shares
authorized, 9,965,015
issued and outstanding
at September 30, 2000 $ 401,201.02
Capital in Excess of Par
Value 3,334,801.45
Accumulated Deficit ( 5,043,620.53)
---------------
Net Stockholders
Investment ($ 1,307,618.06)
---------------
TOTAL LIABILITIES AND CAPITAL $ 11,409,486.92
===============
PART 1, ITEM 1, 2 (1)(ii)
FORM 10QSB
WESTERN STANDARD CORPORATION
Consolidated Statement of Operations
Unaudited
Profit and Loss Information
For the Nine (9) Months Ended
Sep. 30, 2000 Sep. 30, 1999
1. Gross sales less discounts,
returns and allowances $ 8,540,073.61 $ 7,501,011.96
2. Operating Revenues -0- -0-
3. Total of Captions 1 and 2 8,540,073.61 7,501,011.96
4. Costs and Expenses
(a) Operating Expenses 6,897,448.70 6,346,751.85
(b) Interest Expense 587,366.40 524,914.21
(c) Depreciation 627,546.21 495,000.00
Total Costs and Expenses 8,112,361.31 7,366,666.06
5. Income (Loss) before taxes
on income & extraordinary
items 427,712.30 134,345.90
6. Discontinued Operations -0- -0-
7. Provisions for taxes on
income 145,422.18 35,644.90
8. Income or (Loss) 282,290.12 98,701.00
9. Minority interest in
profit (loss) of
subsidiary 103,810.42 34,815.17
10. Income (Loss) before
extraordinary items 178,479.70 63,885.83
11. Extraordinary items,
income tax, benefit of
net operating loss
carryover and minority
share of tax 145,422.18 35,644.90
12. Net Income (Loss) 323,901.88 99,530.73
13. Earnings (Loss) per share:
$323,901.88 : 9,965,015
issued and outstanding .03
$99,530.73 : 9,965,015
issued and outstanding .01
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 Nine (9) Months Ended
Sep. 30, 2000 Sep. 30, 1999
INCREASE (DECREASE) IN CASH:
Cash flows from operating
activities:
Cash received from
customers $ 7,760,957.82 $ 7,140,658.55
Cash paid to suppliers
and employees ( 6,647,671.21) ( 6,390,944.27)
Interest paid ( 587,366.40) ( 524,914.21)
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Net cash provided
(used) by operations $ 525,920.21 $ 224,800.07
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Cash flows from investing
activities:
Increase prepaid loan fees $ -0- ($ 181,781.88)
Reduction in loans to
officer 800.00 900.00
Capital expenditures ( 561,742.94) ( 1,610,548.18)
(Increase) decrease in
restricted cash 17,548.15 11,911.49
(Increase) reduction in
Snow King Center loan 12,411.00 ( 334.52)
Investment -0-
Repayment Loveridge
receivable 33,360.95 -0-
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Net cash provided
(used) by investing
activities ($ 497,622.84) ($ 1,779,953.09)
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Cash flows from financing
activities:
New loans $ 776,533.67 $ 8,993,567.98
Principal payments to
banks ( 410,216.17) ( 6,892,067.29)
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Net cash provided
(used) by financing
activities $ 366,317.50 $ 2,101,500.69
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Net increase (decrease) in
cash $ 394,614.87 $ 546,347.67
Cash at beginning of year 276,312.60 220,416.74
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Cash at end of quarter $ 670,927.47 $ 766,764.41
============== ==============
RECONCILIATION OF NET INCOME
TO NET CASH USED BY OPERATING
ACTIVITIES:
Net income (loss) $ 323,901.88 $ 99,530.73
Adjustments:
Depreciation and
amortization 627,546.21 496,062.00
Decrease (increase) in
advance deposits ( 270,914.74) ( 187,223.28)
Increase (decrease) in
accrued expenses 156,503.05 121,149.84
Decrease (increase) in
accounts receivable ( 508,201.05) ( 387,068.78)
Decrease in prepaid
expenses 195,493.33 173,110.58
Decrease (increase) in
inventories 21,053.44 4,812.72
Decrease in trail
receivable -0- 26,715.37
(Decrease) increase in
accounts payable ( 123,272.33) ( 157,104.28)
Allocation of minority
interest in profit
(loss) of subsidiary 103,810.42 34,815.17
-------------- --------------
Net cash provided (used)
by operations $ 525,920.21 $ 224,800.07
============== ==============
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
Sep. 30, 2000
Sales $ 8,510,346.41
Gross Income $ 8,510,346.41
Net Income (Loss) from continuing operations $ 440,434.55
Less Minority Interest in profit or (loss) -
23.57% $ 103,810.42
Net Income (Loss) $ 336,624.13
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 September 30, 2000, there were no lawsuits filed against
either Western Standard Corporation or Snow King Resort, Inc
and none threatened.
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) Reports on Form 8-K
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. Snow King Resort, at times, has not had
sufficient cash flow to pay its creditors in a timely
manner. Snow conditions in Jackson were fair for skiing
during the winter of 1999-00. However, more rooms
available in Jackson and fewer people vacationing,
had an adverse effect on winter revenues. Summer
bookings were impressive. Fewer airline arrivals brought
fewer people to the Jackson area, thus fewer customers.
The airlines will be running more flights into Jackson
from major areas next winter.
On March 23, 1999, Snow King Resort, Inc. closed a
refinancing loan in the amount of $9,370,000 with an
additional line of credit in the amount of $640,000.
At September 30, 2000, $-0- had been drawn against
the $640,000. A fixed interest rate of 7.98% applies
to the $9,370,000 mortgage. There were no principal
payments due until 6/15/00. The borrowing was to pay
off the previous mortgage, short term debts and for
refurbishing the Hotel. Refinancing costs, including
penalties for prepaying mortgage balances were
considerable and contribute immensely to the first
quarter net loss. Principal and interest payments on
loans are current.
Western Standard Corporation, the parent company, will
have sufficient funds to cover its expenses during 2000
from cash reserves, oil and gas royalties, interest, and
accounts receivable.
(c) RESULTS OF OPERATIONS:
Net income for the first nine months of 2000 amounted to
$427,712.30, compared to a net income for the first nine
months of 1999 in the amount of $99,531.
Profits and losses for the first nine months of 2000 and
1999 came from:
SOURCE 2000 1999
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Western Standard Corporation ($ 12,697) ($ 14,331)
Snow King Resort, Inc. 440,434 112,895
Western Recreation Corporation ( 25) 967
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$ 427,712 $ 99,531
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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
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(Registrant)
Dated: November 13, 2000 /s/ Stanford E. Clark
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Stanford E. Clark, President
Treasurer
