Form 10Q Amendment
The Securities and Exchange Commission reviewed the filing of the Form 10Q
for the quarter ended May 1, 1999. The review was completed after an
amendment to the Form 10 Q to disclose a covenant violation. The amendment
to disclose the covenant violation was filed on June 23, 1999.
As a result of that review, the Securities and Exchange Commission
requested that the Company reclassify the amount outstanding on the loan
agreement from long term liabilities to short term liabilities. As a
result of a review of the Form 10K undertaken at the same time, the SEC
requested the Company not to file the enclosed amendment to its financial
report until their review was complete.
The review was completed on September 13th and verbal agreement was given
to the Company to make this amendment to the Form 10Q for the quarter ended
May 1, 1999.
Form 10-Q
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ZIONS COOPERATIVE MERCANTILE INSTITUTION
CONDENSED BALANCE SHEET - MAY 1, 1999 & JANUARY 30, 1999
In Thousands (000 omitted)
LIABILITIES, RESERVES AND STOCKHOLDERS EQUITY
APRIL JANUARY
1999 1999
Current Liabilities:
<S> <C> <C>
Accounts payable - trade $ 4,371 $ 7,407
Short term borrowings - banks 52,649 0
Current portion of long-term debt 417 408
Current portion of obligations under capital
leases 1,441 1,506
Accrued liabilities
Outstanding gift certificates 1,923 1,965
Other accrued liabilities 12,220 14,489
Deferred gain on sale and leaseback 1,748 1,757
Total Current Liabilities $ 74,769 $ 27,532
Long-Term Debt:
Bonds, mortgages and similar debt 1,361 48,512
Capital Lease - Long Term Portion (Note 1) 14,461 14,780
Other Liabilities and Deferred Credits:
Deferred Fed Income Taxes 0 0
Deferred Gross Profit 1,635 2,081
Stockholders Equity:
Capital shares $ 14,960 $ 14,867
Pension Liability Adjustment (3,399) (3,399)
Other stockholders equity 24,470 28,041
Total Stockholders Equity $ 36,031 $ 39,509
TOTAL LIABILITIES AND STOCKHOLDERS EQUITY $128,257 $132,414
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Form 10-Q
ZIONS COOPERATIVE MERCANTILE INSTITUTION
CONDENSED STATEMENT OF CASH FLOWS May 1, 1999 & MAY 2, 1998
In Thousands (000 omitted)
April April
1999 1998
CASH FLOWS FROM OPERATING ACTIVITIES
<S> <C> <C>
Net Income (loss) $(3,571) $(1,984)
Adjustments to reconcile net income to net cash
provided by (used in) operating activities:
Depreciation and amortization 1,115 1,080
Deferred gross profit (2,202) (2,306)
Deferred income taxes 0 0
Provision for losses on accounts receivable 252 257
Decrease (increase) in assets:
Accounts receivable 8,053 7,109
Inventories (1,513) (1,919)
Prepaid expenses (205) (237)
Other Assets 0 0
Increase (decrease) in liabilities
Accounts payable -- trade ( 624) (2,372)
Accrued liabilities (565) (890)
Net cash provided by operating activities 740 (1,262)
CASH FLOWS USED IN INVESTING ACTIVITIES:
Purchase of property, plant and equipment (4,163) (3,151)
Proceeds from sale of property, plant and equipment 0 3,156
Net cash used in investing activities (4,163) 5
CASH FLOWS FROM FINANCING ACTIVITIES:
Net increase (decrease) in short-term borrowings 50,237 0
Additions (Reductions) to long-term debt (47,151) 1,256
Principal payments on long-term debt obligations
under capital leases (374) (412)
Stock options exercised and sales of capital stock 0 0
(Purchase) Sale of treasury stock 93 31
Cash dividends 0 (352)
Long Term Investments 0 300
Long Term Note Receivable 0 (550)
Net cash provided by (used in) financing activities 2,805 272
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (618) (985)
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR 1,193 1,619
CASH AND CASH EQUIVALENTS AT END OF PERIOD 575 634
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