U.S. SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-QSB
(MARK ONE)
[X] QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT
OF 1934 FOR THE QUARTERLY PERIOD ENDED SEPTEMBER 30, 2000.
[_] TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT
OF 1934 FOR THE TRANSITION PERIOD FROM __________ TO __________
COMMISSION FILE NUMBER: 0-24053
The National Capital Companies, Inc.
(Exact name of small business issuer as specified in its charter)
Nevada 88-0350154
(State or other jurisdiction of (I.R.S. Employer Identification No.)
incorporation or organization)
18952 MacArthur Boulevard, Suite 300, Irvine, California 92612
(Address of principal executive offices) (Zip Code)
(949) 261-2101
(Issuer's Telephone Number, including Area Code)
Check whether the issuer (1) has filed all reports required to be filed by
Section 13 or 15(d) of the Exchange Act of 1934 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.
[X] Yes [_] No
As of November 14, 2000, there were 7,651,550 shares of the issuer's $.001 par
value common stock issued and outstanding.
<PAGE>
THE NATIONAL CAPITAL COMPANIES, INC.
INDEX TO FORM 10-QSB
For the Quarter Ended September 30, 2000
<TABLE>
<CAPTION>
PAGE
----
<S> <C>
PART I. FINANCIAL INFORMATION
Item 1. Condensed Financial Statements (Unaudited)
Condensed Consolidated Balance Sheet as of September 30, 2000 3 - 4
Condensed Consolidated Statements of Operations for the Three Months and Nine
Months Ended September 30, 2000 and 1999 5
Condensed Consolidated Statements of Cash Flows for the Nine Months
Ended September 30, 2000 and 1999 6
Notes to Condensed Consolidated Financial Statements 7 - 9
Item 2. Management's Discussion and Analysis 10 - 13
PART II. OTHER INFORMATION
14
Item 1. Legal Proceedings
Item 2. Changes in Securities 14
Item 3. Defaults Upon Senior Securities 14
Item 4. Submission of Matters to a Vote of Security Holders 14
Item 5. Other Information 14
Item 6. Exhibits and Reports on Form 8-K 14
</TABLE>
2
<PAGE>
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements
THE NATIONAL CAPITAL COMPANIES, INC.
CONDENSED CONSOLIDATED BALANCE SHEET
September 30, 2000
(UNAUDITED)
(In U.S. Dollars, except per share amounts)
ASSETS
<TABLE>
<S> <C>
Cash and cash equivalents $ 1,186,000
Receivables from clearing organizations 1,042,000
Accounts receivable, net of allowance for doubtful accounts of $11,000 188,000
Other receivables 397,000
Securities owned, at estimated fair value 1,586,000
Property and equipment, less accumulated depreciation of $102,000 1,148,000
Goodwill, less accumulated amortization of $451,000 6,162,000
Other assets 534,000
-----------
Total assets $12,243,000
===========
</TABLE>
3
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THE NATIONAL CAPITAL COMPANIES, INC.
CONDENSED CONSOLIDATED BALANCE SHEET
September 30, 2000
(UNAUDITED)
(In U.S. Dollars, except per share amounts)
LIABILITIES AND STOCKHOLDERS' EQUITY
LIABILITIES
Accounts payable and accrued expenses $ 580,000
Commissions payable 1,196,000
Payable to clearing organizations 732,000
Income taxes payable 502,000
Other liabilities 212,000
Due to affiliates 300,000
Notes payable 1,500,000
------------
Total liabilities 5,022,000
------------
MINORITY INTEREST (78,000)
------------
STOCKHOLDERS' EQUITY
Common stock
$.001 par value,
50,000,000 shares authorized
7,561,550 shares issued and outstanding 8,000
Additional paid in capital 6,985,000
Retained earnings 306,000
------------
Total stockholders' equity 7,299,000
------------
Total liabilities and stockholders' equity $ 12,243,000
============
4
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THE NATIONAL CAPITAL COMPANIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
(In U.S. Dollars, except per share amounts)
<TABLE>
<CAPTION>
Three Months Ended September 30, Nine Months Ended September 30,
------------------------------ ------------------------------
2000 1999 2000 1999
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
NET REVENUES
Commissions $ 5,795,000 $ 197,000 $ 15,997,000 $ 786,000
Investment banking 612,000 653,000 3,698,000 2,490,000
Principal transactions 391,000 718,000 814,000 2,366,000
Other 541,000 355,000 581,000 431,000
------------ ------------ ------------ ------------
TOTAL NET REVENUES 7,339,000 1,923,000 21,090,000 6,073,000
------------ ------------ ------------ ------------
EXPENSES
Commissions, compensation and benefits 5,752,000 1,338,000 17,388,000 3,043,000
General and administrative 1,975,000 931,000 4,578,000 1,743,000
Depreciation and amortization 193,000 38,000 502,000 41,000
------------ ------------ ------------ ------------
TOTAL EXPENSES 7,920,000 2,307,000 22,468,000 4,827,000
------------ ------------ ------------ ------------
INCOME (LOSS) BEFORE INCOME TAXES (581,000) (384,000) (1,378,000) 1,246,000
PROVISION (BENEFIT) FOR INCOME TAXES
(250,000) (130,000) (402,000) 435,000
------------ ------------ ------------ ------------
NET INCOME (LOSS) $ (331,000) $ (254,000) $ (976,000) $ 811,000
============ ============ ============ ============
BASIC EARNINGS (LOSS) PER SHARE $ (.04) $.(16) $ (.13) $ .51
============ ============ ============ ============
DILUTED EARNINGS (LOSS) PER SHARE $ (.04) $.(16) $ (.13) $ .51
============ ============ ============ ============
</TABLE>
5
<PAGE>
THE NATIONAL CAPITAL COMPANIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
(In U.S. Dollars, except per share amounts)
<TABLE>
<CAPTION>
Nine Months Ended September 30,
-------------------------------
2000 1999
----------- -----------
<S> <C> <C>
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES $ (499,000) $ 977,000
----------- -----------
NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES 776,000 (1,540,000)
----------- -----------
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES
(181,000) 924,000
----------- -----------
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 96,000 361,000
CASH AND CASH EQUIVALENTS, beginning of period 1,090,000 451,000
----------- -----------
CASH AND CASH EQUIVALENTS, end of period $ 1,186,000 $ 812,000
=========== ===========
NON-CASH INVESTING AND FINANCING ACTIVITIES
Business acquisitions
Assets acquired $ 3,714,000 $ 1,412,000
Liabilities assumed (3,424,000) (271,000)
Common stock issued (290,000) (167,000)
----------- -----------
Cash paid for acquisition $ -- $ 974,000
=========== ===========
SUPPLEMENTAL INFORMATION, CASH PAID FOR:
Interest $ 100,000 $ --
=========== ===========
Income taxes $ -- $ --
=========== ===========
</TABLE>
6
<PAGE>
THE NATIONAL CAPITAL COMPANIES, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
September 30, 1999 AND 2000
NOTE 1 - ORGANIZATION
On February 4, 2000, the Company conducted a reorganization with The
National Capital Companies, Inc., an Oklahoma Corporation ("NCC"). Pursuant to
the terms of a Securities Purchase and Plan or Reorganization between the
Company and the stockholders of NCC, the Company acquired all of the outstanding
capital stock of NCC in exchange for the issuance of 4,000,000 shares of common
stock to the former stockholders of NCC. Because the stockholders of NCC owned
approximately 61.5% of the outstanding shares of the common stock of the Company
after giving effect to the Reorganization, the acquisition of NCC was considered
a reverse merger, and the Company has been deemed the acquirer for accounting
purposes. As such, the equity of NCC has been carried forward as the equity of
the Company.
On March 9, 2000, the Company acquired AISCO Holdings, LTD., an Illinois
corporation ("AISCO"). AISCO is a full-service financial services company
including brokerage, trading, investment advisory and insurance. Pursuant to the
Securities Purchase agreement, the Company acquired approximately eighty percent
(80%) of AISCO in exchange for approximately 818,000 shares of the Company. The
acquisition has been accounted for under the purchase method of accounting and
is intended to qualify as a tax-free reorganization under IRC ss.368(a)(1)(B).
The fair value of purchase consideration of approximately $5,725,000 has been
allocated to tangible and identifiable intangible assets acquired and
liabilities assumed based on their relative fair values. The excess of the fair
value of purchase consideration over assets acquired and liabilities assumed has
been allocated to goodwill and is being amortized on a straight-line basis over
ten (10) years.
The following pro forma results of operations give effect to these
acquisitions as if the transactions had occurred January 1, 2000:
Nine Months
Ended
September 30, 2000
------------------
Revenues $ 26,600,000
============
Net loss $ (811,000)
============
Loss per share $ (.10)
============
The unaudited pro forma condensed consolidated statements of operations are
not necessarily indicative of the operating results that would have occurred as
if these acquisitions had occurred as of the beginning of the periods presented
and should not be construed as being representative of future operating results.
7
<PAGE>
NOTE 2 - BASIS OF PRESENTATION
The accompanying unaudited financial statements include the accounts of the
Company and all of its wholly owned and majority owned subsidiaries. All
significant intercompany transactions have been eliminated. The unaudited
financial statements included herein have been prepared in accordance with
generally accepted accounting principles for interim financial information and
with the instructions to Form 10-QSB and Item 301(b) of Regulation S-B.
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 and nine month periods ended September 30, 1999
and 2000 are not necessarily indicative of the results that may be expected for
the years ended December 31, 1999 and 2000. Operating results for the three and
nine month periods ended September 30, 1999 were not reviewed by the Company's
independent certified public accountants. For further information, the
statements should be read in conjunction with the consolidated financial
statements and notes thereto included in the Company's annual report on Form
10-KSB for the year ended December 31, 1999, Form 8-K dated March 24, 2000, Form
8-K/A dated April 25, 2000 the and the Company's current report on Form 8-K/A
dated November 6, 2000.
The Company may receive, as additional consideration for the performance of
investment banking services, warrants to acquire an equity interest in firms or
may lend to or make direct equity investments in companies through its merchant
banking activities. Non-marketable investments are recorded at fair value and
may result in the recognition of future realized or unrealized gains or losses
due to changes in their fair value.
Four subsidiaries of the Company are subject to net capital requirements
for broker-dealers. At September 30, 2000, each subsidiary was in compliance
with its net capital requirement.
NOTE 3 - EARNINGS PER SHARE
The following table sets forth the computation of basic and diluted
earnings per share:
Nine Months Ended September 30,
-------------------------------
2000 1999
----------- -----------
Net income (loss) $ (976,000) $ 811,000
=========== ===========
Weighted average shares outstanding:
Basic 7,561,550 1,585,000
=========== ===========
Diluted 7,561,550 1,585,000
=========== ===========
Basic earnings per share $ (.13) $ .51
Diluted earnings per share $ (.13) $ .51
8
<PAGE>
NOTE 4 - CONTINGENCIES
The Company, from time to time, is subject to legal proceedings and claims
which arise in the ordinary course of its business. Management believes that
resolution of these matters will not have a material adverse effect on the
Company's results of operations or financial condition.
A subsidiary of the Company is also a defendant in four (4) lawsuits
alleging various claims. The suits ask for total damages approximating
$1,230,000 in actual damages plus punitive damages, interest, costs, and
attorney fees. Outside counsel for the Company has advised that at this stage in
the proceedings, they cannot offer an opinion as to the probable outcomes.
NOTE 5 - SUBSEQUENT EVENT
On October 12, 2000 the Company entered into a definitive agreement with
MHK Investment Corporation, a Nevada corportion ("MHK"), to purchase all of the
outstanding stock of InterFirst Capital Corporation, a California corporation
("InterFirst"). To consummate the purchase the Company will issue 400,000 shares
of its common stock; assume certain financial liabilities of MHK, tender cash of
$2,250,000 and issue a promissory note to MHK in the principal amount of
$2,500,000. It is the Company's intent to close this transaction before the end
of the current fiscal year and to include the operations of InterFirst in the
Company's consolidated financial statements thereafter. The InterFirst
transaction is conditioned upon Regulatory approval and our obtaining
acquisition funding.
9
<PAGE>
Item 2. Management's Discussion and Analysis
Business of the Registrant.
The National Capital Companies, Inc. is the holding company for seven
operating subsidiaries. The Company, through its subsidiaries, operates
primarily in four niches of the securities industry including brokerage
services, investment banking and corporate finance, trading and market making,
and money management. In addition, we have operations involved in securities
research, commodities brokerage, mortgage banking, insurance brokerage, merchant
banking, venture capital, and consulting.
Through our subsidiaries, Travis Morgan Securities, Inc. and American
Investment Services, Inc., we provide brokerage services to individuals and
institutions. Trading and market making activity is conducted through our
subsidiary, National Capital, LLC. We provide professional money management
through our subsidiaries Cornerstone Capital Management, Inc., and Dunhill Money
Management and Consulting. Merchant banking services are provided through our
wholly owned subsidiary, National Capital Merchant Group, Ltd where we make
proprietary investments for our own account. AISCO Agencies, Inc. is our
insurance agency that offers variable annuities, fixed annuities, variable
universal life, term life, group life, individual health, long-term care,
disability income and supplemental group benefits. AISCO Futures Ltd. is our
introducing broker registered with the National Futures Association.
The Company maintains offices in Dallas, Texas, Oklahoma City, Oklahoma,
Colorado Springs, Colorado and Peoria, Illinois. Our executive offices are
located at 18952 MacArthur Boulevard, Suite 300, Irvine, California 92612;
telephone (949) 261-2101.
Results of Operations.
On March 9, 2000, the Company acquired all of the outstanding Class A stock
of AISCO Holdings, Ltd. ("AISCO") which represented approximately 82% of the
outstanding common stock of AISCO. Pursuant to the Stock Purchase Agreement and
plan of Reorganization dated March 9, 2000 by and among the Company and the
Class A stockholders of AISCO, the Company issued 818,090 shares of its common
stock to the former Class A stockholders of AISCO in exchange for all of the
outstanding Class A stock of AISCO. The operations of AISCO since the date of
its acquisition by the Company are included in the Company's condensed
consolidated financial statements contained in this report.
We have experienced and expect to continue to experience, fluctuations in
quarterly operating results due to a variety of factors, including the recent
AISCO acquisition, the value of our market-making securities positions, the
volume of our market-making activities, volatility in the securities markets,
overhead and other expenses, the addition or loss of sales and trading
professionals, regulatory changes, the amount and timing of capital and general
economic conditions. If demand for our services declines and we are unable to
adjust our cost structure on a timely basis, our operating results could be
materially and adversely affected. We have experienced and expect to continue to
experience, some seasonality in our business.
It is also expected that the change to decimalization in the NASDAQ trading
market will further narrow the spread between "bid" and "ask" prices on the
stocks in which the Company's broker-dealer subsidiaries make markets and may
adversely affect profitability per ticket. Management believes, however that we
will be able to capitalize on the increased volatility and liquidity in the
markets that decimalization may bring about. In addition, with the increase in
the number of brokers and traders, the Company anticipates being able to further
capitalize on its other financial services such as investment banking and money
management
Due to the foregoing factors, period-to-period comparisons of our revenues
and operating results are not necessarily meaningful and such comparisons cannot
be relied upon as indicators of future performance.
10
<PAGE>
Total Net Revenues. Revenues from continuing operations of the Company
increased by $5,416,000, or 282%, for the three months ended September 30, 2000,
as compared with the quarter ended September 30, 1999, and increased
$15,017,000, or 247%, for the nine months ended September 30, 2000 as compared
with the nine months ended September 30, 1999. The increase in revenues is
directly attributable to the Company's acquisition of AISCO in March 2000 and
Cornerstone Capital Management in June 1999. Without giving effect to the AISCO
acquisition and the net revenue on principal transactions, the Company's
revenues would have been approximately $1,723,000 for the three months ended
September 30, 2000 as compared to $1,923,000 for the three months ended
September 30, 1999, representing a decrease of approximately 11%. This decrease
primarily results from the decrease in the Company's investment banking
revenues. During 1999 and through the first quarter of 2000, the Company's
investment banking revenues were at all-time highs due to favorable economic
conditions and surging venture capital infusions into U.S. businesses,
particularly within the internet and high technology industries. The Company
expects investment banking activities to increase moderately going forward, but
may not reach the record levels achieved during 1999. Principal transactions are
comprised of trading gains and losses and include both realized and unrealized
gains and losses incurred by the Company on its securities owned and are
generally presented net. For the three months ended September 30, 2000, the net
revenue from principal transactions was $391,000 as compared to $718,000 in net
revenue for the equivalent period a year ago. This decrease was directly
attributable to the volatility in the U.S. equity markets and the corresponding
reduction in stock prices of many U.S. equities during the second quarter of
2000. While the Company still holds many of the same securities it owned at the
close of the second and third quarters of 2000, the decline in stock prices has
resulted in a lower portfolio valuation leading to unrealized losses which has
adversely impacted the Company's overall net revenues. Total revenue for AISCO
for the three months ended September 30, 2000 was approximately $5,225,000.
Total Expenses. Expenses of the Company increased by $5,613,000, or 244%,
for the three months ended September 30, 2000, as compared with the quarter
ended September 30, 1999, and increased $17,641,000 or 365%, for the nine months
ended September 30, 2000, as compared with the nine months ended September 30,
1999. Overall, this increase is due primarily to the Company's acquisition of
AISCO in March 2000. Operational changes in expenses are set forth below.
Commissions, compensation and benefits increased by $4,414,000, or 330%,
and $14,345,000, or 471% for the three and nine months ended September 30, 2000,
respectively, as compared to the equivalent periods in the prior year. The
increases in this expense were primarily attributable to the rise in
compensation to the Company's traders and brokers as a result of the increase in
net trading revenue in terms of overall ticket and share volume. With the AISCO
acquisition, the Company added over 200 brokers and established branch managers
and traders in various states including Arizona, Colorado, Michigan, and Texas.
As a result, not only did the Company's commissions increase, but also its base
compensation structure as well. Without giving effect to the AISCO acquisition,
the Company's commissions, compensation and benefits would have been
approximately $932,000 for the three months ended September 30, 2000 as compared
to $1,338,000 for the three months ended September 30, 1999, representing a
decrease of approximately 30%. This decrease is primarily attributable to the
corresponding decrease in commission and investment banking revenues offset by
an increase in the total number of employees. Total commissions, compensation
and benefits for AISCO for the three months ended September 30, 2000 was
approximately $4,820,000. Overall, the total number of employees and
commissioned brokers increased to approximately 310 as of September 30, 2000
from approximately 55 as of September 30, 1999. The Company's acquisitions have
necessitated the need to retain and attract qualified personnel to handle the
significant increase in trade volume and technological requirements that the
Company has experienced over the last year.
11
<PAGE>
General and administrative expenses increased by $1,044,000, or 112%, and
$2,835,000, or 163% for the three and nine months ended September 30, 2000,
respectively, as compared with the same periods in the previous year. As a
percentage of revenue, general and administrative expenses were 27% and 22% for
the three and nine months ended September 30, 2000, respectively, as compared to
48% and 29% for the same periods in the prior year. The increases in these
expenses were primarily due to the Company's acquisition of AISCO. As compared
to the previous year with offices in two (2) states, the Company now operates
offices within thirty five (35) states throughout the country. In addition, the
Company began taking a charge for goodwill related to its acquisitions in the
amount of approximately $190,000 per quarter. Goodwill represents the excess of
cost over the net assets acquired and is being amortized over ten (10) years.
Other general and administrative expenses, including clearing and related
brokerage charges, increased as a result of the overall ticket volume and rates
with the Company's various clearing brokers. With its acquisitions, the Company
expects to negotiate more favorable ticket rates with its contracted clearing
brokers during the third and fourth quarters. The remainder of the increases is
due to the significant growth in the volume of business and the increase in
staff size.
Net Income (Loss). Net income (loss) decreased by $77,000 for the three
months ended September 30, 2000 as compared with the three months ended
September 30, 1999 and decreased ($1,787,000) for nine months ended September
30, 2000 as compared with the nine months ended September 30, 1999. Without
giving effect to the AISCO acquisition, the Company's net loss would have been
approximately ($343,000) for the quarter ended September 30, 2000 as compared to
the net loss of ($254,000) for the same period a year ago. This decrease is due
primarily to the principal transaction portfolio loss as a result of the
significant volatility and downturn in the U.S. equity markets during the second
and third quarters of 2000.
Liquidity and Financial Condition.
The Company's operations have generally been financed by internally
generated funds. The Company's tangible assets are liquid, consisting of cash or
assets convertible into cash (principally, securities positions, receivables
from brokers, and cash). The Company historically has generated revenues from
its investment banking services, from commissions on trades in which it acts as
a broker and from profits on trades in which it acts as a principal. The
Company's revenues and financial condition are substantially dependent on
factors outside its control, including the level of activity in the national
securities markets, particularly the Nasdaq National Market and the OTC Bulletin
Board, as well as the strength of the overall economy
As of September 30, 2000, the Company had approximately $815,000 of working
capital, including $995,000 in cash, cash equivalents and securities, as
compared to approximately $285,000 of working capital as of December 31, 1999.
The Company believes that its existing working capital is sufficient to finance
its current level of operations. However, the Company believes that it requires
a minimum of $500,000 in additional working capital to finance the planned
growth of its existing operations. In August 2000, the Company commenced the
private placement sale of up to $5,000,000 of shares of its common stock. In
October 2000 the Company amended that private placement and reduced the dollar
limit to $2,500,000. The Company has no commitments from any outside sources to
purchase its securities, and there can be no assurance that additional financing
will be available when needed on terms favorable to the Company or at all.
During 2000, the Company has continued to make significant investments to
fund its future growth and increase stockholder value. These included the
acquisition of AISCO and expenditures of over $150,000 for computer and
technological upgrades and other property.
Cash flows from operations will vary on a daily basis as the Company's
portfolio of marketable securities changes. The Company's ability to convert
marketable securities owned into cash is determined by the depth of the market
and the size of the Company's securities positions in relation to the market as
a whole. The portfolio mix also affects the regulatory capital requirements
imposed on the Company's broker-dealer subsidiaries, which directly affects
12
<PAGE>
the amount of funds available for operating, investing and financing activities.
Forward Looking Statements.
This report contains forward-looking statements that are based on the
Company's beliefs as well as assumptions made by and information currently
available to the Company. When used in this report, the words "believe,"
"expect," "anticipate," "estimate," and similar expressions are intended to
identify forward-looking statements. Such statements are subject to certain
risks, uncertainties and assumptions, including without limitation, the overall
strength of the national securities markets, the difficulties faced by the
Company in assimilating its recently acquired businesses, the Company's present
financial condition and the risks and uncertainties concerning the availability
of additional capital as and when required, technological changes, increased
competition, and general economic conditions. Should one or more of these risks
or uncertainties materialize, or should underlying assumptions prove incorrect,
actual results may vary materially from those anticipated, estimated, or
projected. The Company cautions potential investors not to place undue reliance
on any such forward-looking statements, all of which speak only as of the date
made.
13
<PAGE>
PART II - OTHER INFORMATION
Item 1. Legal Proceedings
A subsidiary of the Company is a defendant in a total of four lawsuits
brought by different investors alleging various claims. These actions
collectively seek approximately $1,230,000 in actual damages plus punitive
damages, interest, costs, and attorney fees. The Company intends to vigorously
defend itself in connection with these actions.
Item 2. Changes in Securities
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
On February 20, 2000, the Company filed a Current Report on Form 8-K with
the Securities and Exchange Commission to report the NCC Reorganization. On
April 25, 2000, the Company filed an amendment to that Form 8-K to include the
financial statements of NCC as of December 31, 1999 and for the two years ended
December 31, 1999 and 1998.
On March 30, 2000, the Company filed a Current Report on Form 8-K with the
Securities and Exchange Commission to report the AISCO acquisition. On November
10, 2000, the Company filed an amendment to that Form 8-K to include the
financial statements of AISCO as of December 31, 1999 and for the two years
ended December 31, 1999 and 1998.
The following exhibits are contained in this 10-QSB:
Exhibit No: Description
----------- -----------
27 Financial Data Schedule
14
<PAGE>
SIGNATURES
Pursuant to the requirements 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.
Dated: November 13, 2000 THE NATIONAL CAPITAL COMPANIES, INC.
By: /s/ Tim A. Quintanilla
--------------------------
Tim A. Quintanilla
Its: Chief Financial Officer
15
