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, 1998
OR
[ ]TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period from ____________to ____________
Commission File Number: 0-8149
SOUTHWEST CAPITAL CORPORATION
____________________________________________________
(Exact name of small business issuer in its charter)
New Mexico 85-0169650
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
1650 University NE, Suite 100, Albuquerque, NM 87102
(Address of principal executive offices) (Zip Code)
505-884-7161
Registrant's telephone number, including area code
Not Applicable
_____________________________________________________________
(Former names, 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 outstanding of the Registrant's
common stock, par value $1.00 per share, at November 15,
1998 was 1,568,791 shares.
PART I
Item 1. FINANCIAL STATEMENTS
SOUTHWEST CAPITAL CORPORATION
CONSOLIDATED BALANCE SHEET
UNAUDITED
<TABLE>
<CAPTION>
<S> <C>
Sept. 30,
1998
ASSETS
CURRENT ASSET $ 131
__________
131
==========
LIABILITIES AND SHAREHOLDERS EQUITY
CURRENT LIABILITIES
Accrued Expenses $ 5,620
Accounts Payable 1,759
__________
Total current liabilities 7,379
NOTES PAYABLE TO RELATED PARTIES 26,500
SHAREHOLDERS EQUITY
Common Stock, no par value; authorized,
10,000,000 shares;issued and outstanding,
1,568,791 shares 1,568,791
Preferred stock - no par value; authorized,
3,000,000 shares;issued and outstanding,
none 1,659,054
Additional paid-in capital (3,255,198)
___________
Accumulated Deficit (6,395)
___________
$ 131
===========
</TABLE>
See accompanying notes to consolidated financial statements.
SOUTHWEST CAPITAL CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
UNAUDITED
<TABLE>
<CAPTION>
Nine Nine
Months Ended Months Ended
Sept. 30 Sept. 30
1998 1997
<S> <C>
EXPENSES
General and Administrative 5,206 5,992
Interest 1,190 1,197
__________ __________
NET LOSS $ (6,396) $ (7,189)
=========== ==========
Net loss per common share $ (0000) $ (0000)
Weighted average common shares outstanding 1,568,791 1,568,791
See accompanying notes to consolidated financial statements
SOUTHWEST CAPITAL CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
UNAUDITED
Three Three
Months Ended Months Ended
Sept. 30, Sept. 30,
1998 1997
<S> <C> <C>
EXPENSES
General and Administrative 3,198 1,710
Interest 0 404
__________ __________
NET LOSS $ (3,198) $ (2,114)
=========== ==========
Net loss per common share $ (0000) $ (0000)
Weighted average common shares outstanding 1,568,791 1,568,791
See accompanying notes to consolidated financial statements
SOUTHWEST CAPITAL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
UNAUDITED
</TABLE>
<TABLE>
<CAPTION>
Nine Months Nine Months
Ended Ended
Sept. 30, Sept. 30,
1998 1997
<S> <C> <C>
OPERATING ACTIVITIES
Net Income (Loss) from
Operations $ (6,396) $ (7,189)
Change in Operating Assets and Liabilities 3,690 6,382
NET CASH PROVIDED (USED)
BY OPERATING ACTIVITIES (2,706) (807)
DECREASE IN CASH
AND INTEREST-BEARING DEPOSITS (2,706) (807)
CASH AT THE BEGINNING OF PERIOD 2,837 922
_________ _________
CASH AT END OF PERIOD $ 131 $ 115
========= =========
</TABLE>
See accompanying notes to consolidated financial statements
SOUTHWEST CAPITAL CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
September 30, 1998
UNAUDITED
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The consolidated balance sheet as of Sept. 30, 1998 the
consolidated statements of operations for the three and nine
month periods ended Sept. 30, 1998 and 1997 and consolidated
statements of cash flows for the three and nine month period
then ended have been prepared by the Company without audit.
In the opinion of management, all adjustments (which include
only normal recurring adjustments) necessary to present
fairly the financial position, results of operations and
cash flows at Sept. 30, 1998 and 1997, and for the periods
presented have been made.
Certain information and footnote disclosures normally
included in financial statements prepared in accordance with
generally accepted accounting principles have been condensed
or omitted. It is suggested that these consolidated
financial statements be read in conjunction with the
consolidated financial statements and notes thereto
included in the Registrant's December 31, 1997 filing on
Securities & Exchange Commission Form 10-KSB. The results
of operations for the periods ended Sept. 30, 1998 and 1997
are not necessarily indicative of the operating results for
the full year.
EARNINGS (LOSS) PER SHARE
Earnings (loss) per share are computed using the
weighted number of common shares outstanding of
1,568,791 for the nine month periods ended Sept. 30, 1998
and 1997, respectively. Weighted average number of shares
is calculated as follows for the nine months ended Sept.
30, 1998.
<TABLE>
Outstanding Number Weighted Average
of Shares of Shares
Date (Unchanged) (Unchanged)
_____ __________________ ________________
<S> <C> <C>
Jan.1 - Sept.30, 1998 1,568,791 1,568,791
================== ================
</TABLE>
Item 2.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
The following is Management's discussions and analysis of
the financial condition and results of operations of the
Company during the quarter ended Sept. 30, 1998.
LIQUIDITY AND CAPITAL RESOURCES
Liquidity, as discussed herein, refers to the Company's
ability to generate adequate amounts of cash to meet its
needs. At Sept. 30, 1998, the Company had cash of $ 131.00
and liabilities of $33,879. The Company is presently without
significant income and its future is dependent upon the
Company's obtaining monies, through borrowings or through
the sale of equities, to acquire or develop new business
interests. On March 23, 1995, Messrs. George W. Rhodes,
Chairman of the Board and James T. McWilliams Vice
President sold approximately 87.5% of their stock holdings
to a group of investors from Minneapolis, Minnesota. On
that same day, both men and Sara V. Rhodes, company Secretary
resigned all positions held by them with the Company. The new
management will continues to seek out opportunities to improve
the Company's financial position. There is no assurance
that the Company, however, will be successful in raising
new capital or securing a new business.
RESULTS OF OPERATIONS
The Company's net loss of $ 6,101 for the period ended Sept.
30, 1998 represents the excess of expense over revenue
for the period. Operations for the quarter ended Sept.
30, 1998 generated no income Total operating expenses for
the quarter ended Sept. 30, 1997 were $ 7,189. As the
Company has incurred substantial operating losses in the
past and has significant net operating loss carrying forward,
no provision for income taxes was required for the quarter
ended Sept. 30, 1998. A valuation allowence has been
provided for all deferred tax assets since it is more likely
than not that the tax assets will not be realized.
PART II
Item 1. The Registrant has been subject to the
following judgements:
None
Item 2. Changes In Securities
None
Item 3. Defaults In 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
None
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.
SOUTHWEST CAPITAL CORPORATION
s/Laurence S. Zipkin
BY:__________________________
Laurence S. Zipkin, President
s/Alan Geiwitz
BY:__________________________
Alan Geiwitz, Secretary and
Cheif Accounting Officer
and Cheif Accounting Officer
DATE: NOVEMBER 15, 1998
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-END> SEP-30-1998
<CASH> 131
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 131
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 131
<CURRENT-LIABILITIES> 7379
<BONDS> 0
0
0
<COMMON> 1568791
<OTHER-SE> (1573439)
<TOTAL-LIABILITY-AND-EQUITY> 4085
<SALES> 0
<TOTAL-REVENUES> 0
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 5620
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 1759
<INCOME-PRETAX> (1514)
<INCOME-TAX> 0
<INCOME-CONTINUING> (1514)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (1514)
<EPS-PRIMARY> (0.09)
<EPS-DILUTED> (0.09)
</TABLE>
