SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
QUARTERLY REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
For the Quarter Ended Commission File No.
January 31, 1999 0-10146
- --------------------- -------------------
ABRAMS INDUSTRIES, INC.
------------------------------------------------------
(Exact name of Registrant as specified in its charter)
Georgia 58-0522129
- ------------------------------- ------------------------------------
(State or other jurisdiction of (I.R.S. Employer Identification No.)
incorporation or organization)
1945 The Exchange, Suite 300, Atlanta, Georgia 30339
---------------------------------------------------------
(Address of principal executive offices) (Zip Code)
(770) 953-0304
---------------------------------------------------
(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 /x/ No / /
The number of shares of $1.00 par value Common Stock of the Registrant
outstanding as of February 26, 1999 was 2,936,356.<PAGE>
<PAGE>
PART 1. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
--------------------
<TABLE>
<CAPTION>
ABRAMS INDUSTRIES, INC.
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
January 31, 1999 April 30, 1998
---------------- --------------
<S> <C> <C>
ASSETS
- ------
CURRENT ASSETS
Cash and cash equivalents $ 4,504,820 $ 13,240,471
Receivables (note 2) 18,851,810 21,275,284
Less: Allowance for doubtful accounts (153,331) (130,040)
Inventories, net (note 3) 2,192,951 1,495,063
Costs and earnings in excess of billings 3,944,042 5,637,599
Property held for sale 5,268,478 1,691,764
Deferred income taxes 848,939 848,939
Other 1,076,133 614,244
------------ ------------
Total current assets 36,533,842 44,673,324
------------ ------------
INCOME-PRODUCING PROPERTIES, net 52,444,762 57,262,540
PROPERTY, PLANT AND EQUIPMENT, net 12,425,867 9,856,619
LAND HELD FOR FUTURE DEVELOPMENT OR SALE 4,237,845 4,237,845
OTHER ASSETS
Notes receivable 326,365 415,538
Cash surrender value of life insurance on officers, net 1,426,057 1,282,790
Deferred loan costs, net 832,503 814,405
Other 2,844,621 2,766,383
------------ ------------
$111,071,862 $121,309,444
============ ============
LIABILITIES AND SHAREHOLDERS' EQUITY
- ------------------------------------
CURRENT LIABILITIES
Trade and subcontractors payables $ 12,273,178 $ 19,445,101
Billings in excess of costs and earnings 2,822,564 1,369,148
Accrued expenses 3,789,544 6,989,911
Short-term borrowings 1,262,075 -
Current maturities of long-term debt 6,721,557 1,586,133
------------ ------------
Total current liabilities 26,868,918 29,390,293
------------ ------------
DEFERRED INCOME TAXES 3,018,429 3,018,429
OTHER LIABILITIES 1,496,399 1,426,052
MORTGAGE NOTES PAYABLE, less current maturities 27,694,387 33,433,945
OTHER LONG-TERM DEBT, less current maturities 29,377,127 29,504,862
------------ ------------
Total liabilities 88,455,260 96,773,581
------------ ------------
<PAGE>
SHAREHOLDERS' EQUITY
Common stock, $1 par value; authorized 5,000,000 shares;
3,014,039 issued and 2,936,356 outstanding 3,014,039 3,014,039
Additional paid-in capital 2,019,690 2,019,690
Retained earnings 17,995,424 19,914,685
------------ ------------
23,029,153 24,948,414
Less cost of treasury stock 412,551 412,551
------------ ------------
Total shareholders' equity 22,616,602 24,535,863
------------ ------------
$111,071,862 $121,309,444
============ ============
</TABLE>
See accompanying notes to consolidated financial statements.<PAGE>
<PAGE>
<TABLE>
<CAPTION>
ABRAMS INDUSTRIES, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
THIRD QUARTER ENDED NINE MONTHS ENDED
JANUARY 31, JANUARY 31,
------------------------------ --------------------------------
1999 1998 1999 1998
----------- ----------- ----------- -------------
<S> <C> <C> <C> <C>
REVENUES
Construction $24,693,465 $28,006,599 $121,079,265 $105,203,090
Manufacturing 4,423,681 3,854,120 11,562,598 11,922,062
Real estate 3,725,037 3,184,163 10,504,977 18,350,249
----------- ----------- ------------ ------------
32,842,183 35,044,882 143,146,840 135,475,401
Less: Intersegment eliminations (612,094) (1,328,622) (2,583,815) (1,463,485)
----------- ----------- ------------ ------------
32,230,089 33,716,260 140,563,025 134,011,916
Interest 94,485 210,253 365,318 475,500
Other (5,406) 11,857 46,003 32,914
----------- ----------- ------------ ------------
32,319,168 33,938,370 140,974,346 134,520,330
----------- ----------- ------------ ------------
COSTS AND EXPENSES
Applicable to REVENUES--
Construction 22,788,433 26,237,871 115,673,400 100,179,195
Manufacturing 4,293,948 2,572,810 10,622,221 8,621,140
Real estate, exclusive of interest 1,905,950 1,779,539 5,322,668 10,168,708
----------- ----------- ------------ ------------
28,988,331 30,590,220 131,618,289 118,969,043
Less: Intersegment eliminations (289,383) (1,271,640) (1,862,209) (1,872,656)
----------- ----------- ------------ ------------
28,698,948 29,318,580 129,756,080 117,096,387
----------- ----------- ------------ ------------
Selling, shipping, general and administrative
Construction 1,322,806 1,131,303 3,068,937 2,613,341
Manufacturing 1,216,463 1,065,812 3,228,687 3,029,296
Real estate 551,954 502,174 1,763,986 1,738,424
Parent 831,464 621,612 2,235,073 1,762,017
----------- ----------- ------------ ------------
3,922,687 3,320,901 10,296,683 9,143,078
Less: Intersegment eliminations (312,690) (72,306) (737,373) (140,109)
----------- ----------- ------------ ------------
3,609,997 3,248,595 9,559,310 9,002,969
----------- ----------- ------------ ------------
Interest costs incurred, less interest 1,363,845 1,303,778 3,982,764 3,436,621
capitalized ----------- ----------- ------------ ------------
33,672,790 33,870,953 143,298,154 129,535,977
----------- ----------- ------------ ------------
EARNINGS (LOSS) BEFORE INCOME TAXES (1,353,622) 67,417 (2,323,808) 4,984,353
INCOME TAX EXPENSE (BENEFIT) (501,000) 25,000 (845,000) 1,887,000
----------- ----------- ------------ ------------
NET EARNINGS (LOSS) $ (852,622) $ 42,417 $ (1,478,808) $ 3,097,353
=========== =========== ============ ============
NET EARNINGS (LOSS) PER SHARE--
BASIC AND DILUTED $ (.29) $ .01 $ (0.50) $ 1.05
=========== =========== ============ ============
DIVIDENDS PER SHARE $ .05 $ .04 $ .15 $ .15
=========== =========== ============ ============
WEIGHTED AVERAGE SHARES OUTSTANDING 2,936,356 2,936,356 2,936,356 2,938,167
=========== =========== ============ ============
</TABLE>
See accompanying notes to consolidated financial statements.
<PAGE>
<PAGE>
<TABLE>
<CAPTION>
ABRAMS INDUSTRIES, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
NINE MONTHS ENDED JANUARY 31,
-----------------------------------
1999 1998
------------- ------------
<S> <C> <C>
Cash flows from operating activities
Net earnings (loss) $ (1,478,808) $ 3,097,353
Adjustments to reconcile net earnings (loss) to net cash
provided by (used in) operating activities
Depreciation and amortization 2,311,110 2,151,288
Deferred tax expense - 1,518,100
Gain on sales of real estate - (4,867,189)
Decrease (increase) in assets
Receivables, net 2,446,765 (393,604)
Inventories, net (697,888) 68,027
Costs and earnings in excess of billings 1,693,557 (588,701)
Other current assets (461,889) (605,767)
Other assets (224,330) (548,507)
Increase (decrease) in liabilities
Accounts payable (7,171,923) 1,319,872
Billings in excess of costs and earnings 1,453,416 1,207,103
Accrued expenses (3,200,367) (1,325,209)
Deferred income - (599,476)
Other liabilities 70,347 248,644
------------ ------------
Net cash provided by (used in) operating activities (5,260,010) 681,934
------------ ------------
Cash flows from investing activities
Proceeds from sales of real estate - 10,024,651
Increase in short-term investments - (3,564,766)
Additions to income-producing properties, property, plant and equipment (3,448,134) (18,062,786)
------------ ------------
Net cash used in investing activities (3,448,134) (11,602,901)
------------ ------------
Cash flows from financing activities
Net short-term borrowings 1,262,075 -
Debt proceeds 234,570 31,856,942
Debt repayments (966,440) (15,834,173)
Additions to deferred loan costs (117,259) (320,643)
Cash dividends (440,453) (440,873)
Repurchase of common stock - (42,000)
Proceeds from exercise of stock options - 11,500
------------ ------------
Net cash provided by (used in) financing activities (27,507) 15,230,753
------------ ------------
Net increase (decrease) in cash and cash equivalents (8,735,651) 4,309,786
Cash and cash equivalents at beginning of period 13,240,471 7,611,051
------------ ------------
Cash and cash equivalents at end of period $ 4,504,820 $ 11,920,837
============ ============
Supplemental schedule of cash flow information
Interest paid, net of amounts capitalized $ 3,925,383 $ 3,445,829
============ ============
Income taxes paid, net of refunds $ 162,809 $ 869,229
============ ============
</TABLE>
See accompanying notes to consolidated financial statements.
<PAGE>
<PAGE>
ABRAMS INDUSTRIES, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
JANUARY 31, 1999 AND APRIL 30, 1998
(UNAUDITED)
NOTE 1. UNAUDITED STATEMENTS
- -----------------------------
The accompanying unaudited consolidated financial statements have
been prepared by the Company in accordance with generally accepted
accounting principles, pursuant to the rules and regulations of the
Securities and Exchange Commission. Certain information and footnote
disclosures normally included in financial statements have been
condensed or omitted pursuant to such rules and regulations, although
management believes that the disclosures are adequate to make the
information presented not misleading. In the opinion of management,
the accompanying financial statements contain all adjustments, which
consist solely of normal recurring accruals, necessary for a fair
statement of the results for the interim periods presented. These
financial statements should be read in conjunction with the
consolidated financial statements and the notes thereto included in
the Company's Annual Report to Shareholders for the year ended April
30, 1998. Results of operations for interim periods are not
necessarily indicative of annual results.
NOTE 2. RECEIVABLES
- --------------------
All contract and trade receivables are expected to be collected
within one year.
NOTE 3. INVENTORIES
- --------------------
The classes of inventory are as follows:
January 31, 1999 April 30, 1998
---------------- --------------
Finished goods $ 803,329 $ 787,520
Work in process 381,895 219,802
Raw materials 1,007,727 487,741
--------------- -------------
$ 2,192,951 $ 1,495,063
=============== =============
NOTE 4. STATEMENT OF FINANCIAL ACCOUNTING STANDARDS NO. 130,
- -------------------------------------------------------------
REPORTING COMPREHENSIVE INCOME
- ------------------------------
On May 1, 1998, the Company adopted the provisions of Statement of
Financial Accounting Standards ("SFAS") No. 130, REPORTING
COMPREHENSIVE INCOME. This Statement establishes standards for
reporting and display of comprehensive income and its components in a
full set of general purpose financial statements. The term
"comprehensive income" is used in SFAS 130 to describe the total of
all components of comprehensive income including net income. "Other
comprehensive income" refers to revenues, expenses, gains, and losses
that are included in comprehensive income but excluded from earnings
under accounting standards. The Company has no "other comprehensive
income" to report for the first nine months ended January 31, 1999,
and the first nine months ended January 31,1998.
<PAGE>
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
- --------------------------------------------------------------------
AND RESULTS OF OPERATIONS.
- -------------------------
Changes in CONSOLIDATED BALANCE SHEETS between April 30, 1998, and
- ------------------------------------------------------------------
January 31, 1999.
- ----------------
Accounts receivable decreased by $2,446,765 primarily as a result
of decreased activity in the construction segment due to unexpected
delays, beyond the control of the Company, in construction job starts.
Costs and earnings in excess of billings decreased by $1,693,557 and
Billings in excess of costs and earnings increased by $1,453,416 because
of the timing of the submission and payment of invoices for construction
work performed.
Property held for sale increased $3,576,714 as a result of the
reclassification of the net book value of a shopping center in Newnan,
Georgia. This property was classified as Income-producing property at
April 30, 1998, and was reclassified in July 1998, as the property is
currently being marketed for sale. It is expected to be sold at a
gain. Income-producing properties decreased by $4,817,778 primarily as
a result of the reclassification of the aforementioned property and
depreciation expense.
Property, plant and equipment increased by $2,569,248, primarily
through additional expenditures related to the completion of
constructing and equipping the Company's new manufacturing facility.
Accrued expenses decreased by $3,200,367 because of the payment of
April 30, 1998 accruals.
Short-term borrowings increased by $1,262,075 reflecting amounts
drawn on the Company's bank lines of credit primarily for working
capital for the manufacturing segment.
Current maturities of long-term debt increased by $5,135,424, and
Mortgage notes payable decreased by $5,739,558, primarily as a result
of the reclassification of the Newnan, Georgia shopping center
mortgage to Current maturities of long-term debt.
Results of operations of third quarter and first nine months of fiscal
- ----------------------------------------------------------------------
1999 compared to third quarter and first nine months of fiscal 1998.
- -------------------------------------------------------------------
REVENUES
For the third quarter 1999, Consolidated REVENUES were
$32,319,168, compared to $33,938,370 for the third quarter 1998. For
the first nine months of fiscal 1999, Consolidated REVENUES were
$140,974,346, compared to $134,520,330 for the first nine months of
fiscal 1998.
The figures in Chart A are Segment revenues before Intersegment
eliminations and do not include Interest income or Other income.
<PAGE>
<PAGE>
<TABLE>
<CAPTION>
CHART A
REVENUE SUMMARY BY SEGMENT
(Dollar Amounts in Thousands)
Third Quarter Ended Nine Months Ended
January 31, Amount Percentage January 31, Amount Percentage
------------------- Increase Increase ------------------- Increase Increase
1999 1998 (Decrease) (Decrease) 1999 1998 (Decrease) (Decrease)
-------- -------- --------- ---------- -------- -------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Construction <F1> $24,693 $28,007 $(3,314) (12) $121,079 $105,203 $15,876 15
Manufacturing <F2> 4,424 3,854 570 15 11,563 11,922 (359) (3)
Real Estate <F3> 3,725 3,184 541 17 10,505 18,350 (7,845) (43)
------- ------- ------- --- -------- -------- ------- ---
$32,842 $35,045 $(2,203) (6) $143,147 $135,475 $ 7,672 6
======= ======= ======= === ======== ======== ======= ===
NOTES TO CHART A
----------------
<FN>
<F1> REVENUES for the third quarter 1999 decreased as compared to the third
quarter 1998 primarily because of unexpected delays, beyond the control
of the Company, in construction job starts. REVENUES for the first
nine months 1999 were higher than those of the first nine months
1998 because of an increase in sales to existing customers and
sales to eleven new customers.
<F2> REVENUES for the third quarter 1999 increased as compared to the third
quarter 1998 primarily because of increased sales to customers in
the floorcovering industry.
<F3> REVENUES for the third quarter 1999 increased as compared to the
third quarter 1998 as a result of an increase in rental revenues
of $540,875. REVENUES for the first nine months 1999 were lower
than those of the first nine months 1998 because there have been
no property sales in fiscal 1999, compared to $10,024,650 of
property sales in the first nine months 1998. This was partially
offset in the first nine months 1999 by an increase in rental
revenues of $2,179,379.
</FN>
</TABLE>
The following table indicates the backlog of contracts, orders and
expected rentals for the next twelve months by industry segment:
January 31,
-----------------------------------
1999 1998
------------- -------------
Construction $ 57,842,000 $ 64,159,000
Manufacturing 12,617,000 4,675,000
Real Estate 12,131,000 10,403,000
------------- -------------
82,590,000 79,237,000
Less: Intercompany Eliminations (1,792,000) (5,280,000)
------------- -------------
Total Backlog $ 80,798,000 $ 73,957,000
============= =============
<PAGE>
<PAGE>
COSTS AND EXPENSES: Applicable to REVENUES
As a percentage of Segment REVENUES (See Chart A) for the third
quarter 1999 and 1998, the applicable COSTS AND EXPENSES (See Chart B)
were 88% and 87%, respectively. As a percentage of Segment REVENUES
for the first nine months 1999 and 1998, the applicable COSTS AND
EXPENSES were 92% and 88%, respectively.
The figures in Chart B are prior to Intersegment eliminations.
<TABLE>
<CAPTION>
CHART B
COSTS AND EXPENSES APPLICABLE TO REVENUES SUMMARY BY SEGMENT
(Dollar Amounts in Thousands)
Percent of Segment Percent of Segment
Revenues For Revenues For
Third Quarter Ended Third Quarter Ended Nine Months Ended Nine Months Ended
January 31, January 31, January 31, January 31,
------------------- ------------------- ------------------- --------------------
1999 1998 1999 1998 1999 1998 1999 1998
-------- -------- ------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Construction $22,788 $26,238 92 94 $115,673 $100,179 96 95
Manufacturing<F1> 4,294 2,573 97 67 10,622 8,621 92 72
Real Estate<F2> 1,906 1,779 51 56 5,323 10,169 51 55
------- ------- -- -- -------- -------- -- --
$28,988 $30,590 88 87 $131,618 $118,969 92 88
======= ======= == == ======== ======== == ==
NOTES TO CHART B
----------------
<FN>
<F1> The increase in the percentage of COSTS AND EXPENSES: Applicable to
REVENUES for the third quarter and the first nine months 1999 as
compared to the same periods 1998 was a result of a loss in
production efficiencies and increased labor costs incurred during
the move and while adapting to the new manufacturing facility.
<F2> The decrease in the dollar amount and percentage of COSTS AND
EXPENSES: Applicable to REVENUES for the first nine months 1999
compared to the same period 1998 was attributable to the cost of
real estate sold in 1998. There have been no sales of real estate
in the first nine months 1999.
</FN>
</TABLE>
<PAGE>
<PAGE>
SELLING, SHIPPING, GENERAL AND ADMINISTRATIVE EXPENSES
For the third quarter 1999 and the third quarter 1998, Selling,
shipping, general and administrative expenses, prior to intersegment
eliminations, were $3,922,687 and $3,320,901, respectively. As a
percentage of Consolidated REVENUES, these expenses were 12% for the
third quarter 1999 and 10% for the third quarter 1998. For the first
nine months 1999 and the first nine months 1998, Selling, shipping,
general and administrative expenses were $10,296,683 and $9,143,078,
respectively. As a percentage of Consolidated REVENUES, these
expenses were 7% for both nine month periods. In reviewing Chart C,
the reader should recognize that the volume of revenues generally will
affect the amounts and percentages. The percentages in Chart C are
based upon expenses as they relate to Segment REVENUES (Chart A) prior
to Intersegment eliminations, except that Parent and Total expenses
relate to Consolidated REVENUES.
<TABLE>
<CAPTION>
CHART C
SELLING, SHIPPING, GENERAL AND ADMINISTRATIVE EXPENSES BY SEGMENT
(Dollar Amounts in Thousands)
Percent of Segment Percent of Segment
Revenues For Revenues For
Third Quarter Ended Third Quarter Ended Nine Months Ended Nine Months Ended
January 31, January 31, January 31, January 31,
------------------- ------------------- ------------------ -------------------
1999 1998 1999 1998 1999 1998 1999 1998
-------- -------- -------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Construction $1,323 $1,131 5 4 $ 3,069 $2,613 3 2
Manufacturing 1,216 1,066 27 28 3,229 3,029 28 25
Real Estate 552 502 15 16 1,764 1,739 17 9
Parent<F1> 832 622 3 2 2,235 1,762 2 1
------ ------ -- -- ------- ------ -- --
$3,923 $3,321 12 10 $10,297 $9,143 7 7
====== ====== == == ======= ====== == ==
NOTES TO CHART C
----------------
<FN>
<F1> On a dollar basis, Selling, shipping, general and administrative
expenses were higher for the third quarter and first nine months
1999 compared to the third quarter and first nine months 1998
primarily because of increased rent expenses. The increase was
primarily a result of rent reimbursements paid by the Parent to
the manufacturing segment. The manufacturing segment is paying
rent on its new facility to the real estate segment, the owner of
the facility. The Parent is reimbursing part of the manufacturing
segment's rental payment. The reimbursement is equal to the
difference between the rental expense and the debt service on the
facility paid by the real estate segment.
</FN>
</TABLE>
<PAGE>
<PAGE>
Liquidity and capital resources.
- -------------------------------
Between April 30, 1998, and January 31, 1999, working capital
decreased by $5,618,107. Operating activities used cash of
$5,260,010. Investing activities used cash of $3,448,134 primarily to
complete the construction and equipping of the new manufacturing
facility. Financing activities used cash of $27,507.
The Company obtained an increase in its lines of credit during
fiscal year 1999. At January 31, 1999, the Company and its
subsidiaries had available unsecured committed lines of credit
totaling $13,000,000, of which $150,000 was outstanding, $12,350,000
was available and $500,000 was reserved for a letter of credit issued
as security for a mortgage loan on an Income-producing property. In
addition, the Company had a committed line of credit totaling
$2,500,000, secured by the manufacturing segment's inventory and
receivables, of which $1,112,075 was outstanding at January 31, 1999.
Year 2000.
- ---------
The Company has substantially completed its assessment and
remediation efforts for achieving Year 2000 compliance in its computer
and telecommunications information systems (IT), as well as those
computer systems impacted by Year 2000 that do not relate to
information technology, such as building and other ancillary systems
(non-IT). All hardware and software has been inventoried and tested.
The construction segment has purchased a new Year 2000 compliant
accounting software package. The cost of the software and the
installation thereof is not considered to be material. The Company
installed this software in the second quarter 1999 and began using
this software during the third quarter 1999. The manufacturing
segment, at a nominal cost, plans to upgrade its current accounting
software to be Year 2000 compliant by September 30, 1999, and the real
estate segment's accounting software is Year 2000 compliant. Other
non-compliant hardware and software review and remediation costs are
considered to be minimal.
The Company has conducted a written survey of its IT and non-IT
significant third party vendors and service providers to determine
their Year 2000 compliance status. The responses have indicated these
businesses will be compliant on a timely basis. No estimates can be
made as to any potential adverse impact resulting from the failure of
any third party vendor or service provider to be Year 2000 compliant.
Uncertainty exists concerning the scope and magnitude of the most
reasonably likely worst case scenario. Because of the wide geographic
area that the Company conducts business in, including the various
locations of construction job sites and real estate operations, the
Company does not expect a Year 2000 issue, such as an isolated
temporary loss of electrical service at a particular location, to
significantly impact the Company's financial position. The Company
currently does not anticipate the need for a contingency plan.
<PAGE>
There can be no assurance that the Company will be able to
identify and correct all aspects of the effect of the Year 2000 issue
on the Company. Management, however, does not believe that the Year
2000 issue will pose significant problems in its IT or non-IT systems,
or that resolution of any potential problems with respect to these
systems will have a material effect on the Company's financial
condition or results of operations. Readers are cautioned that
forward-looking statements regarding Year 2000 issues should be read
in conjunction with the Company's disclosures under the heading
"Cautionary statement regarding forward-looking statements."
<PAGE>
<PAGE>
Cautionary statement regarding forward-looking statements.
- ---------------------------------------------------------
Certain statements contained or incorporated by reference in this
Quarterly Report on Form 10-Q, including without limitation statements
containing the words "believes," "anticipates," "expects," and words
of similar import, are forward-looking statements within the meaning
of the federal securities laws. Such forward-looking statements
involve known and unknown risks, uncertainties and other matters which
may cause the actual results, performance or achievements of the
Company to be materially different from any future results,
performance or uncertainties expressed or implied by such forward-
looking statements. Such risks, uncertainties and other matters
include, but are not limited to, Year 2000 compliance issues.
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.
----------------------------------------------------------
Not Applicable.
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
- -----------------------------------------
(a) Exhibit 27 - Financial Data Schedule (For SEC Use Only).
(b) The Registrant has not filed any reports on form 8-K during the
quarter ended January 31, 1999.
<PAGE>
<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.
ABRAMS INDUSTRIES, INC.
-----------------------
(Registrant)
Date: March 11, 1999 /s/ Alan R. Abrams
-------------- -----------------------
Alan R. Abrams
President and
Chief Operating Officer
Date: March 11, 1999 /s/ Melinda S. Garrett
-------------- ----------------------
Melinda S. Garrett
Chief Financial Officer
<PAGE>
<TABLE> <S> <C>
<ARTICLE> 5
<CIK> 0000001923
<NAME> ABRAMS INDUSTRIES, INC.
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> APR-30-1999
<PERIOD-START> MAY-01-1998
<PERIOD-END> JAN-31-1999
<CASH> 4,504,820
<SECURITIES> 0
<RECEIVABLES> 18,851,810
<ALLOWANCES> (153,331)
<INVENTORY> 2,192,951
<CURRENT-ASSETS> 36,533,842
<PP&E> 83,988,923
<DEPRECIATION> 19,118,294
<TOTAL-ASSETS> 111,071,862
<CURRENT-LIABILITIES> 26,868,918
<BONDS> 57,071,514
0
0
<COMMON> 3,014,039
<OTHER-SE> 19,602,563
<TOTAL-LIABILITY-AND-EQUITY> 111,071,862
<SALES> 140,563,025
<TOTAL-REVENUES> 140,974,346
<CGS> 129,756,080
<TOTAL-COSTS> 129,756,080
<OTHER-EXPENSES> 9,536,019
<LOSS-PROVISION> 23,291
<INTEREST-EXPENSE> 3,982,764
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