FORM 10-QSB
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
(Mark One)
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 1999
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OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
Commission file number 0-26461
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SNELLING TRAVEL, INC.
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(Exact name of registrant as specified in its charter)
Colorado 58-2368425
- ------------------ ----------------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
55 Pharr Road., No. A-207, Atlanta, Georgia 30305
- ------------------------------------------- -------------
(Address of principal executive offices) (Zip Code)
(404) 841-0111
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(Registrant's telephone number, including area code)
N/A
---
(Former name, former address and former fiscal year, if changed since last
report)
Indicate by check mark whether the registrant (1) has filed all
reports required to be filed by Section 13 or 15(d) of the Securities
Exchange Act of 1934 during the preceding 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 No XX
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APPLICABLE ONLY TO CORPORATE ISSUERS:
Indicate the number of shares outstanding of each of the issuer's classes of
Common Stock, as of the latest practicable date.
Class of Stock Amount Outstanding
------------------ --------------------------
$.001 par value 1,525,000 shares outstanding
Common Stock at November 12, 1999
<PAGE>
SNELLING TRAVEL, INC.
Index
Page
----
Part I - FINANCIAL INFORMATION
Item 1. Financial Statements 1-6
Item 2. Management's Discussion and Analysis Or
Plan of Operation 7-8
Part II - OTHER INFORMATION 9
SIGNATURES 10
<PAGE>
Snelling Travel, Inc.
(A Development Stage Company)
Balance Sheets
- --------------------------------------------------------------------
Unaudited Audited
September December
30, 1999 31, 1998
-------- --------
ASSETS
Cash $32,763 $51,008
Stock Subscriptions Receivable 0 1,500
- -----
TOTAL ASSETS 32,763 52,508
====== ======
LIABILITIES AND SHAREHOLDERS' EQUITY
LIABILITIES
Current Liabilities:
Accounts Payable $804 $0
Advances Due to Related Parties 0 100
- ---
Total Current Liabilities 804 100
--- ---
TOTAL LIABILITIES 804 100
--- ---
SHAREHOLDERS' EQUITY
Preferred Stock, $.01 Par Value
Authorized 1,000,000 Shares
Issued And Outstanding 0 Shares. 0 0
Common Stock, $.001 Par Value
Authorized 10,000,000 Shares;
Issued And Outstanding 1,510,000 Shares
December 31, 1998; 1,525,000 Shares September 1,525 1,510
Common Stock Subscribed 0 15
Capital Paid In Excess Of
Par Value Of Common Stock 57,375 51,975
Deficit Accumulated During The Development Stage (26,941) (1,092)
------ -----
TOTAL SHAREHOLDERS' EQUITY 31,959 52,408
------ ------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $32,763 $52,508
======= =======
The Accompanying Notes Are An Integral Part Of These Unaudited Financial
Statements.
1
<PAGE>
Snelling Travel, Inc.
(A Development Stage Company)
Statement Of Operations
- ----------------------------------------------------------------------------
Unaudited
Unaudited Unaudited December
Nine Month Nine Month 15, 1997
Interim Period Interim Period (Inception)
Ended Ended Through
September September September
30, 1999 30, 1998 30, 1999
-------- -------- --------
Revenue $0 $0 $0
-- -- --
Expenses:
Bank Charges 10 0 90
Filing Fees 1,394 0 1,394
Office 12 0 24
Legal and Accounting 16,850 0 17,850
Rent 900 0 900
Officer Compensation 4,500 0 4,500
Travel Expense 249 0 249
Web Design 1,934 0 1,934
----- - -----
Total Expenses 25,849 0 26,941
------ - ------
Net Income (Loss) ($25,849) $0 ($26,941)
======== == =======
Basic Earnings (Loss) Per Share ($0.02) $0.00
===== =====
Weighted Average Common Shares
Outstanding 1,525,000 1,000,000
========= =========
The Accompanying Notes Are An Integral Part Of These Unaudited Financial
Statements.
2
<PAGE>
Snelling Travel, Inc.
(A Development Stage Company)
Statement Of Operations
- ---------------------------------------------------------------------------
Unaudited Unaudited
Three Month Three Month
Interim Period Interim Period
Ended Ended
September September
30, 1999 30, 1998
-------- --------
Revenue $0 $0
-- --
Expenses:
Filing Fees 1,394 0
Legal and Accounting 4,425 0
Rent 300 0
Officer Compensation 1,500 0
Travel 249 0
--- -
Total Expenses 7,868 0
----- -
Net Income (Loss) ($7,868) $0
====== ==
Basic Earnings (Loss) Per Share ($0.01) $0.00
===== =====
Weighted Average Common Shares
Outstanding 1,525,000 1,000,000
========= =========
The Accompanying Notes Are An Integral Part Of These Unaudited Financial
Statements.
3
<PAGE>
Snelling Travel, Inc.
(A Development Stage Company)
Statement Of Cash Flows
- ----------------------------------------------------------------------------
Unaudited
Unaudited Unaudited December
Nine Month Nine Month 15, 1997
Interim Period Interim Period (Inception)
Ended Ended Through
September September September
30, 1999 30, 1998 30, 1999
-------- -------- --------
Net (Loss) ($25,849) $0 ($26,941)
Adjustments To Reconcile Net Loss
To Net Cash
Used In Operating Activities:
Stock Issued For Services 0 0 1,000
Rents and Services Contributed
by Officers 5,400 0 5,400
Increase In Accounts Payable 804 0 804
--- ---
Net Cash Flows Provided By
(Used In) Operations (19,645) 0 (19,737)
------ - ------
Cash Flows From Investing Activities:
Net Cash Flows Provided By
Investing Activities 0 0 0
- - -
Cash Flows From Financing Activities:
Advances Received From Shareholders 0 0 225
Payment of Shareholder Advance (100) 0 (225)
Issuanance of Common Stock 1,500 0 52,500
----- - ------
Net Cash Flows Provided By
Financing Activities 1,400 0 52,500
----- - ------
Net Decrease In Cash (18,245) 0 32,763
Cash At Beginning Of Period 51,008 0 0
------ - -
Cash At End Of Period $32,763 $0 $32,763
======= == =======
Summary of non-cash investing and
financing activities:
Stock Issued for Services $0 $0 $1,000
== == ======
Summary of Non-Cash Investing And
Financing Activities:
Contributed Services and Rent 5,400 0 5,400
Stock Issued for Services 0 0 1,000
The Accompanying Notes Are An Integral Part Of These Unaudited Financial
Statements.
4
<PAGE>
<TABLE>
Snelling Travel, Inc.
Unaudited Statement Of Shareholders' Equity
- ----------------------------------------------------------------------------------------------------------------------
<CAPTION>
(Deficit)
Accumulated
Number Of Common Additional During The
Common Shares Common Paid-In Development
Shares Subscribed Stock Capital Stage Total
------ ---------- ----- ------- ----- -----
<S> <C> <C> <C> <C> <C> <C>
Balance At December 15, 1997 0 0 $0 $0 $0 $0
December 17, 1997 Services
Valued at $.001 Per Share 1,000,000 1,000 1,000
Net Loss December 31, 1997 (1,000) (1,000)
--------- ---------- ---------- ---------- ----- -----
Balance At December 31, 1997 1,000,000 0 1,000 0 (1,000) 0
Private Stock Offering:
December 15, 1998 for Cash @ $.10 Per Share 510,000 510 50,490 51,000
December 15, 1998 Subscribed @ $.10 Per Share 0 15,000 15 1,485 1,500
Net Loss December 31, 1998 (92) (92)
--------- ---------- ---------- ---------- -- --
Balance At December 31, 1998 1,510,000 15,000 $1,525 $51,975 ($1,092) $52,408
Cash Received for Subscribed Shares 15,000 (15,000)
Rent and services contributed by officers 5,400 5,400
Net Loss September 30, 1999 (25,849) (25,849)
--------- ---------- ---------- ---------- ------ ------
Balance At September 30, 1999 1,525,000 0 $1,525 $57,375 ($26,941) $31,959
========= = ====== ======= ======= =======
The Accompanying Notes Are An Integral Part Of These Unaudited Financial
Statements.
</TABLE>
5
<PAGE>
Snelling Travel, Inc.
Notes To Unaudited Financial Statements
For The Nine Month Period Ended September 30, 1999
- --------------------------------------------------
Note 1 - Unaudited Financial Information
- ----------------------------------------
The unaudited financial information included for the three month and nine
month interim periods ended September 30, 1999 were taken from the books
and records without audit. However, such information reflects all
adjustments (consisting only of normal recurring adjustments) which are in
the opinion of management, necessary to reflect properly the results of
interim periods presented. The results of operations for the nine month
period ended September 30, 1999 are not necessarily indicative of the
results expected for the fiscal year ended December 31, 1999.
Note 2 - Financial Statements
- -----------------------------
Management has elected to omit substantially all footnotes relating to the
condensed financial statements of the Company included in the report. For a
complete set of footnotes, reference is made to the Company's Report on
Form 10 and the financial statements included therein for the year ended
December 31, 1998 as filed with the Securities and Exchange Commission.
6
<PAGE>
SNELLING TRAVEL, INC.
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION
Introduction
Certain statements contained herein constitute "forward looking
statements" within the meaning of the Private Securities Litigation
Reform Act of 1995. Such forward looking statements include, without
limitation, statements regarding the Company's plan of business
operations, anticipated revenues and related expenditures. Factors
that could cause actual results to differ materially include, among
others, the following: acceptability of the Company's services in the
retail market place, general economic conditions, political and
economical conditions abroad, competition in the airline industry and
the overall state of the travel industry. Most of these factors are
outside the control of the Company. Investors are cautioned not to put
undue reliance on forward looking statements. Except as otherwise
required by applicable securities statutes or regulations, the Company
disclaims any intent or obligation to update publicly these forward
looking statements, whether as a result of new information, future
events or otherwise.
Plan of Operation
At September 30, 1999, the Company remained in the development
stage, having no revenue from operations. The Company continued
efforts to implement its business plan and generate revenues.
Marketing is conducted through a site maintained by the Company on the
World Wide Web, as well as the personal contacts of the Company's
president. During the nine month period ended September 30, 1999, the
Company was successful in placing banner advertisements on Web sites
maintained by third parties. Such advertising represents an effort by
the Company to obtain additional exposure for its services. The
Company's sole employee continues investigation of travel destinations
and accommodations in an effort to broaden the Company's programs. The
Company also makes various presentations to individuals and groups in
an effort to interest prospective clients.
Receipt of revenue by the Company is dependent on the success of
these and other marketing efforts conducted by the Company. There is
no assurance when, if ever, revenues will be received. However,
management believes that winter and fall are the most popular travel
times for its customers, and will increase marketing efforts to attract
clients during that time.
During the nine month period ended September 30, 1999, the Company
realized a net loss of $25,849, or $.02 per share. Significant
expenses include legal and accounting fees associated with the
preparation and filing of a Registration Statement with the Securities
and Exchange Commission, as well as salaries to employees and expenses
associated with the Company's Web page. Salaries and rent accrued
during the nine month period ended Sseptember 30, 1999 in the amount of
$5,400 have been donated by the Company's president. Accordingly,
those expenses represent non-cash expenses.
7
<PAGE>
Expenses anticipated in the future include administrative expenses
similar to those incurred to date, as well as direct costs associated
with travel programs proposed to be implemented by the Company.
Liquidity and Capital Resources
At September 30, 1999, the Company had working capital of $31,959,
consisting of current assets of $32,763 and current liabilities of
$804. Current assets consisted entirely of cash, while current
liabilities consisted of accounts payable. The Company has no specific
capital requirements at this time other than payment of accounts
payable and general and administrative expenses. Management believes
that the Company's cash will be sufficient for the foreseeable future.
Expenses associated with travel programs proposed to be offered by the
Company will be paid in installments by customers in the form of
deposits. Accordingly, management does not believe that the Company
requires significant additional cash.
During the nine month period ended September 30, 1999, the
Company's operations used approximately $20,000 in cash. A majority of
that amount were expenses payable in connection with legal and
accounting services provided to the Company. Management does not
anticipate such expenses will be repeated in the future, and
accordingly, cash used by operations should decrease. However, any
additional cash required for operations will be sought from private
debt or equity financing.
8
<PAGE>
PART II. OTHER INFORMATION
Item 1. Legal Proceedings.
No report required.
Item 2. Changes in Securities and Use of Proceeds.
No report required.
Item 3. Defaults Upon Senior Securities.
No report required.
Item 4. Submission of Matters to a Vote of Security Holders.
No report required.
Item 5. Other Information.
No report required.
Item 6. Exhibits and Reports on Form 8-K.
No report required.
9
<PAGE>
SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the
Securities Exchange Act of 1934, the Registrant has duly caused this
report to be signed on its behalf by the undersigned thereunto duly
authorized.
SNELLING TRAVEL, INC.
Date: November 11, 1999 By: /s/ Rollins C. Snelling, Jr.
------------------- --------------------------------
Rollins C. Snelling, Jr., President
and Treasurer
10
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY INFORMATION EXTRACTED FROM THE 9/30/99 FORM
10-QSB AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FORM 10-QSB.
</LEGEND>
<CIK> 0001077568
<NAME> SNELLING TRAVEL, INC.
<MULTIPLIER> 1
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1999
<PERIOD-START> JAN-01-1999
<PERIOD-END> SEP-30-1999
<CASH> 32,763
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 32,763
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 32,763
<CURRENT-LIABILITIES> 804
<BONDS> 0
0
0
<COMMON> 1,525
<OTHER-SE> 30,434
<TOTAL-LIABILITY-AND-EQUITY> 32,763
<SALES> 0
<TOTAL-REVENUES> 0
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 25,849
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> (25,849)
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<INCOME-CONTINUING> (25,849)
<DISCONTINUED> 0
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<NET-INCOME> (25,849)
<EPS-BASIC> (.02)
<EPS-DILUTED> (.02)
</TABLE>
