TAURUS ENTERTAINMENT COMPANIES INC
10QSB, 1999-05-17
CRUDE PETROLEUM & NATURAL GAS
Previous: ROBOTIC VISION SYSTEMS INC, 10-Q, 1999-05-17
Next: POGO PRODUCING CO, 424B5, 1999-05-17



- --------------------------------------------------------------------------------

                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549
                                _________________

                                   FORM 10-QSB
                                _________________

[X]     QUARTERLY  REPORT  PURSUANT  TO  SECTION  13  OR 15(d) OF THE SECURITIES
EXCHANGE  ACT  OF  1934;  For  the  Quarterly  Period  Ended:  March  31,  1999

[  ]     TRANSITION  REPORT  PURSUANT  TO  SECTION 13 or 15(d) OF THE SECURITIES
EXCHANGE  ACT  OF  1934

Commission  File  Number:  000-08835

                      TAURUS ENTERTAINMENT COMPANIES, INC.
             (Exact name of registrant as specified in its charter)
                         formerly TAURUS PETROLEUM, INC.

                  Colorado                              84-0736215
        (State or other jurisdiction                  (IRS Employer
      of incorporation or organization)             Identification  No.)


                            505 North Belt, Suite 630
                              Houston, Texas 77060
          (Address of principal executive offices, including zip code)

                                 (281) 820-1181
              (Registrant'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 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.  Yes [x] No [
]

                       APPLICABLE ONLY TO CORPORATE ISSUERS

     At  May  4, 1999, approximately 4,305,012 shares of common stock, $.001 par
value,  were  outstanding.

     Transitional Small Business Disclosure Format (check one);  Yes [ ]  No [x]

<PAGE>
                       Taurus Entertainment Companies, Inc.

                                    CONTENTS
                                    --------

PART  I  -  FINANCIAL  INFORMATION
- ----------------------------------

Item  1.     Financial  Statements

     Consolidated  Balance  Sheets  as  of  March  31,  1999  (unaudited)
     and  September  30,  1998  (audited)

     Consolidated  Statements  of  Operations  for  the  three  and  six  months
     ended  March  31,  1999  and  1998  (  unaudited)

     Consolidated  Statements  of  Cash  Flows  for  the  six  months
     ended  March  31,  1999  and  1998  (  unaudited)

     Notes  to  Consolidated  Financial  Statements

Item  2.     Management's  Discussion  and  Analysis  of Financial Condition and

     Results  of  Operations

PART  II  -  OTHER  INFORMATION
- -------------------------------


Item  6.     Exhibits  and  Reports  on  Form  8-K


<PAGE>
PART  I  -  FINANCIAL  INFORMATION
- ----------------------------------


Item  1.     Financial  Statements

     ______________________     _____________


<TABLE>
<CAPTION>

              TAURUS ENTERTAINMENT COMPANIES, INC. AND SUBSIDIARIES
                          CONSOLIDATED BALANCE  SHEETS

                                     ASSETS
                                     ------

                                                  3/31/99      9/30/98
                                                (UNAUDITED)   (AUDITED)
                                                -----------  -----------
CURRENT ASSETS
<S>                                             <C>          <C>
  Cash                                          $    8,027   $  243,346 
  Accounts receivable                              152,191        2,343 
  Accounts receivable - related party              131,441        9,755 
  Prepaid expenses                                   1,578        1,600 
  Inventories                                            0          765 
  Land held for sale                               569,069      569,069 
                                                -----------  -----------

    Total current assets                           862,306      826,878 
                                                -----------  -----------

PROPERTY AND EQUIPMENT
  Buildings, lands and leasehold improvements    1,466,997    1,769,572 
  Furniture & equipment                            179,289      169,671 
                                                -----------  -----------

                                                 1,646,286    1,939,243 

  Accumulated depreciation                         (96,403)     (69,751)
                                                -----------  -----------

                                                 1,549,883    1,869,492 
                                                -----------  -----------

OTHER ASSETS
  Other                                             81,312      108,705 
                                                -----------  -----------

                                                $2,493,501   $2,805,075 
                                                ===========  ===========
</TABLE>

<PAGE>
<TABLE>
<CAPTION>

                   LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT  LIABILITIES
<S>                                        <C>           <C>
  Notes Payable                            $         0   $    25,000 
  Current portion of long term debt            165,267       220,527 
  Payable to Parent                                  0        79,851 
  Accounts payable - trade                     197,205       185,644 
  Accrued expenses                             173,971       203,677 
  Income tax payable                                 0        38,445 
                                           ------------  ------------

    Total current liabilities                  536,444       753,144 

LONG TERM DEBT, LESS CURRENT PORTION

  Long-term debt less current portion        1,770,063     1,932,967 
                                           ------------  ------------

  Total Liabilities                          2,306,507     2,686,111 
                                           ------------  ------------

COMMITMENTS AND CONTINGENCIES                      ---           --- 

STOCKHOLDERS' EQUITY
  Preferred stock - $.10 par, authorized
    1,000,000shares; none outstanding              ---           --- 
  Common stock - $.01 par, authorized
    15,000,000 shares
    issued 4,305,012 and 4,305,012               4,305         4,305 
  Additional paid in capital                 4,026,383     4,026,383 
  Retained earnings (deficit)               (3,843,694)   (3,911,724)
                                           ------------  ------------

      Total stockholders' equity               186,994       118,964 
                                           ------------  ------------

                                           $ 2,493,501   $ 2,805,075 
                                           ============  ============
</TABLE>

<PAGE>
<TABLE>
<CAPTION>
                  TAURUS ENTERTAINMENT COMPANIES, INC. AND SUBSIDIARIES
                          CONSOLIDATED STATEMENTS OF OPERATIONS
                                       (UNAUDITED)

                                          FOR THE THREE MONTHS ENDED  FOR THE SIX MONTHS ENDED
                                                   MARCH 31,                  MARCH 31,
                                               1999         1998         1999         1998
                                           -----------  -----------  -----------  -----------
<S>                                        <C>          <C>          <C>          <C>
REVENUES
  Sales of alcoholic beverages             $      ---   $  543,374   $      ---   $  543,374 
  Sales of food                                   ---      404,423          ---      404,423 
  Service revenues                             73,276      178,422      135,799      178,422 
  Other                                       397,923      131,242      765,511      131,242 
                                           -----------  -----------  -----------  -----------

                                              471,199    1,257,461      901,310    1,257,461 
                                           -----------  -----------  -----------  -----------

OPERATING EXPENSES
  Cost of goods sold                           23,873      136,016       53,751      136,016 
  Salaries and wages                           78,904      376,688      254,087      376,688 
  Other general and administrative
      Taxes and permits                        40,057      103,877       76,136      103,877 
      Charge card fees                          1,879       17,866        4,412       17,866 
      Rent                                     72,005       85,018      121,678       85,018 
      Legal and accounting                     29,643       88,957       49,321      139,337 
      Advertising                              11,782       67,839       34,070       67,839 
      Other                                    83,529      214,629      195,938      214,629 
                                           -----------  -----------  -----------  -----------

                                              341,673    1,090,890      789,393    1,141,270 
                                           -----------  -----------  -----------  -----------

INCOME FROM OPERATIONS                        129,526      166,571      111,917      116,191 

  Interest Expense                            (46,748)     (39,653)     (80,698)     (39,653)
  Loss on Termination of Lease               (219,780)                 (219,780)
                                           -----------  -----------  -----------  -----------

NET INCOME/(LOSS) BEFORE INCOME TAX          (137,002)     126,918     (188,561)      76,538 
  AND EXTRAORDINARY ITEM

INCOME TAX EXPENSES                                0      (24,956)           0      (24,956)
                                          -----------  -----------  -----------  -----------

NET INCOME/(LOSS) BEFORE                     (137,002)     101,962     (188,561)      51,582 
  EXTRAORDINARY ITEM

EXTRAORDINARY ITEM
  Gain on Fire Damage                         256,592                   256,592 
                                           -----------  -----------  -----------  -----------


NET INCOME/(LOSS)                          $  119,589   $  101,962   $   68,031   $   51,582 
                                           ===========  ===========  ===========  ===========

BASIC NET INCOME (LOSS) PER COMMON SHARE:
  INCOME (LOSS) BEFORE EXTRAORDINARY ITEM  $    (0.03)  $     0.05   $    (0.04)  $     0.03 
  EXTRAORDINARY ITEM                             0.06         0.00         0.06         0.00 
                                           -----------  -----------  -----------  -----------
  NET INCOME                               $     0.03   $     0.05   $     0.02   $     0.03 
                                           ===========  ===========  ===========  ===========

WEIGHTED AVERAGE SHARES OUTSTANDING         4,305,012    1,980,694    4,305,012    1,980,694 
                                           ===========  ===========  ===========  ===========
</TABLE>

<PAGE>
<TABLE>
<CAPTION>

              TAURUS ENTERTAINMENT COMPANIES, INC. AND SUBSIDIARIES
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                    SIX MONTHS ENDED MARCH 31, 1999 AND 1998


                                                       1999         1998
                                                    (UNAUDITED)  (UNAUDITED)
                                                   ------------  ----------
<S>                                                <C>           <C>
NET INCOME                                         $    68,031   $  51,582 

ADJUSTMENTS TO RECONCILE NET
  LOSS TO NET CASH PROVIDED (USED)
  BY OPERATING ACTIVITIES:
    Depreciation                                        26,652      22,865 
    Gain on fire damage and disposal of assets        (247,865)          0 
    Loss on termination of lease                       219,780           0 
    Changes in assets and liabilities:
        Accounts receivable                           (271,534)    (15,805)
        Prepaid expenses                                    22       4,500 
        Inventories                                        765           0 
        Accounts payable and accrued expenses         (161,440)     54,850 
                                                   ------------  ----------

    Cash provided (used) by operating expenses        (365,589)    117,992 
                                                   ------------  ----------

CASH FLOWS FROM INVESTING ACTIVITIES:
    Payments for notes receivable                          ---     (47,880)
    Proceeds from insurance on fire damage             504,457           0 
    Additions to property equipment                    318,174    (581,838)
                                                   ------------  ----------

    Cash provided (used) by investing activities       822,631    (629,718)
                                                   ------------  ----------

CASH FLOWS FROM FINANCING ACTIVITIES:
    Common stock issued, less offering costs               ---     565,842 
    Increase in long term debt                             ---     167,325 
    Payments on long term debt                        (187,904)   (179,586)
                                                   ------------  ----------

    Cash provided (used) by financing activities      (187,904)    553,581 
                                                   ------------  ----------

NET INCREASE/(DECREASE) IN CASH                       (235,319)     41,855 

CASH AT BEGINNING OF PERIOD                            243,346         797 
                                                   ------------  ----------

CASH AT END OF PERIOD                              $     8,027   $  42,652 
                                                   ============  ==========

CASH PAID DURING PERIOD FOR:
    Interest                                       $    80,698   $  39,653 
                                                   ============  ==========
</TABLE>

                                     PART I
                              FINANCIAL INFORMATION

Item  1.     Financial  Statements


              TAURUS ENTERTAINMENT COMPANIES, INC. AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                 MARCH 31, 1999

1.     BASIS  OF  PRESENTATION

The accompanying unaudited financial statements have been prepared in accordance
with  generally accepted accounting principles for interim financial information
and with the instructions to Form 10-QSB of Regulation S-B.  They do not include
all  information  and  footnotes  required  by  generally  accepted  accounting
principles  for  complete  financial  statements.  However,  except as disclosed
herein,  there  has  been no material change in the information disclosed in the
notes to the financial statements for the year ended September 30, 1998 included
in  the  Company's  Annual  Report  on Form 10-KSB filed with the Securities and
Exchange  Commission.  The interim unaudited financial statements should be read
in  conjunction with those financial statements included in the Form 10-KSB.  In
the  opinion  of  Management,  all  adjustments  considered necessary for a fair
presentation, consisting solely of normal recurring adjustments, have been made.
Operating  results  for  the six months ended March 31, 1999 are not necessarily
indicative of the results that may be expected for the year ending September 30,
1999.

2.     FIRE  DAMAGE

On  December  15, 1998, a fire damaged the adult entertainment facility known as
XTC  Cabaret  at Gulf Freeway located in Houston, Texas.  The Company incurred a
material  decline  in  revenues subsequent to the closure of XTC - Houston.  The
insurance  settlement  resulted  in  an  extraordinary  gain  of  $256,592.

3.     TERMINATION  OF  LEASE

On  February 28, 1999, the Company and the Landlord have agreed to terminate the
lease  of  one  of  the  Company's  subsidiaries known as Lucky's located in New
Orleans,  Louisiana.  The  transaction  resulted  in  a  loss  of  $219,780.

<PAGE>
Item  2.     Management's  Discussion  and  Analysis  of Financial Condition and
     Results  of  Operations

     The  following  discussion should be read in conjunction with the Company's
unaudited  consolidated  financial statements and related notes thereto included
in  this  quarterly  report and in the audited consolidated Financial Statements
and  Management's  Discussion and Analysis of Financial Condition and Results of
Operations  ("MD&A")  contained  in  the  Company's  10-KSB  for  the year ended
September  30,  1998.  Certain  statements  in  the  following  MD&A  are
forward-looking  statements.  Words  such  as  "expects",  "anticipates",
"estimates",  and  similar  expressions are intended to identify forward looking
statements.  Such  statements  are subject to risks and uncertainties that could
cause  actual results to differ materially from those projected.  Such risks and
uncertainties  are  set  forth  below  and under "Special Note Regarding Forward
Looking  Information".

GENERAL

     The  Company  entered  into  the  adult entertainment business in 1997.  In
1998,  another  public company, Rick's Cabaret International, Inc., acquired 93%
of the outstanding shares of the Company.  The  Company's  fiscal  year  end  is
September  30.  Revenues  are  derived  from  the sale of liquor, beer, wine and
food,  as  well  as  from  dancer  performances, cover charges and other income.

RESULTS  OF  OPERATIONS  FOR  THE  THREE  AND SIX MONTHS ENDED MARCH 31, 1999 AS
COMPARED  TO  THE  THREE  AND  SIX  MONTHS  ENDED  MARCH  31,  1998

     For  the  quarter  ended March 31, 1999, the Company had consolidated total
revenues  of  $471,199 compared to consolidated total revenues of $1,257,461 for
the  fiscal  quarter  ended  March  31,  1998,  or  a decrease of $786,262.  The
decrease  in  revenues was due to the closures of Broadstreets and XTC - Houston
due  to  fire  and  Lucky's  due  to  termination  of  lease.

     The  cost  of  goods sold for the quarter ended March 31, 1999 was 5.07% of
total  revenues  compared  to  10.82% for the quarter ended March 31, 1998.  The
decrease  was  due  primarily to the savings in having to purchase non-alcoholic
beverages  only.

     Payroll and related costs for the quarter ended March 31, 1999 were $78,904
compared  to
$376,688  for  the  quarter  ended  March 31, 1998.  The decrease was due to the
transfer  of  the  costs  of  corporate personnel to the parent company - Rick's
Cabaret  International,  Inc.  and  to  the  closures  of  some of the Company's
facilities.

     Other  selling,  general  and administrative expenses for the quarter ended
March  31,  1999  were $238,896 compared to $578,186 for the quarter ended March
31, 1998.  The decrease in these expenses was due to the closures of some of the
Company's  facilities.

     Interest  expense for the quarter ended March 31, 1999 was $46,748 compared
to  $39,653 for the quarter ended March 31, 1998.  The increase was attributable
to  interest  expense  on  Company's  real  estates.

     Net  income  for  the quarter ended March 31, 1999 was $119,589 compared to
$101,962 for the quarter ended March 31, 1998.  The increase was due to positive
income  from  operations and extraordinary gain resulted from the fire damage to
XTC  -  Houston.

     For the six months ended March 31, 1999, the Company had consolidated total
revenues  of  $901,310 compared to consolidated total revenues of $1,257,461 for
the  fiscal  six  months  ended March 31, 1998, or a decrease of $ 356,151.  The
decrease in revenues was due to The decrease in revenues was due to the closures
of  Broadstreets and XTC - Houston due to fire and Lucky's due to termination of
lease.

The  cost  of  goods  sold  for the six months ended March 31, 1999 was 5.97% of
total  revenues  compared to 10.82% for the six months ended March 31, 1998. The
decrease  was  due  to the savings in having to purchase non-alcoholic beverages
only.

     Payroll  and  related  costs  for  the six months ended March 31, 1999 were
$254,087  compared  to  $376,688  for  the  six months ended March 31, 1998. The
decline  was  due  to  the  transfer  of the costs of corporate personnel to the
parent  company - Rick's Cabaret International, Inc. and to the closures of some
of  the  Company's  facilities.

     Other selling, general and administrative expenses for the six months ended
March 31, 1999 were $481,555 compared to $628,566 for the six months ended March
31,  1998. The decrease in these expenses was due to the closures of some of the
Company's  facilities.

     Interest  expense  for  the  six  months  ended  March 31, 1999 was $80,698
compared  to  $39,653  for the six months ended March 31, 1998. The increase was
attributable  to  interest  expense  arising  from  Company's  real  estates.

     Net  income for the six months ended March 31, 1999 was $68,031 compared to
$51,582  for  the  six  months  ended  March  31,  1998. The increase was due to
positive  income  from  operations and extraordinary gain resulted from the fire
damage  to  XTC  -  Houston.

LIQUIDITY  AND  CAPITAL  RESOURCES

     At  March 31, 1999, the Company had working capital of $325,862 compared to
a  working  capital  of  $73,734 at September 30, 1998.  The increase in working
capital  was  due  to the proceeds received from the insurance on fire damage to
XTC  -  Houston.

     Net  cash  used  by  operating activities in the six months ended March 31,
1999  was $365,589 compared to net cash provided of $ 117,992 for the six months
ended March 31, 1998.  The decrease in cash provided by operating activities was
due  to  increase  in  accounts  receivable  and  decrease  in accounts payable.

Depreciation  and  Amortization  for  the  six  months ended March 31, 1999 were
$26,652  compared  to  $22,865  for  the  six  months  ended  March  31,  1998.

     In  the  opinion  of management, working capital is not a true indicator of
the  financial  status.  Typically,  the  Company carries current liabilities in
excess  of  current assets because the business receives substantially immediate
payment  for sales, with nominal receivable, while inventories and other current
liabilities  normally  carry  longer payment terms.  Vendors and purveyors often
remain  flexible  with payment terms providing the Company with opportunities to
adjust  to  short  term  business down turns.  The Company considers the primary
indicators  of  financial  status  to  be  the  long term trend and mix of sales
revenues,  overall  cash flow and profitability from operations and the level of
long  term  debt.

SEASONALITY

     The  Company is significantly affected by seasonal factors.  Typically, the
Company  has  experienced reduced revenues from April through September with the
strongest  operating  results  occurring  during  October  through  March.

SPECIAL  NOTE  REGARDING  FORWARD  LOOKING  INFORMATION


<PAGE>
     The  Company  is  including  the  following  cautionary  statement  in this
Quarterly  Report  on  Form  10-QSB to make applicable and take advantage of the
safe  harbor  provision  of the Private Securities Litigation Reform Act of 1995
for  any  forward  looking  statements  made  by,  or  on behalf of the Company.
Forward  looking  statements  include  statements  concerning plans, objectives,
goals,  strategies,  future events or performance and underlying assumptions and
other  statements  which are other than statements of historical facts.  Certain
statements  contained  herein  are  forward looking statements and, accordingly,
involve  risks and uncertainties which could cause actual results or outcomes to
differ  materially  from those expressed in the forward looking statements.  The
Company's  expectations, beliefs and projections are expressed in good faith and
are  believed  by  the  Company  to  have  a reasonable basis, including without
limitations,  management's  examination  of  historical  operating  trends, data
contained  in the Company's records and other data available from third parties,
but  there  can  be  no  assurance  that  management's  expectations, beliefs or
projections  will  result,  or  be achieved, or be accomplished.  In addition to
other  factors  and  matters  discussed  elsewhere  herein,  the  following  are
important factors that, in the view of the Company, could cause material adverse
affects  on  the  Company's  financial  condition  and  results  of  operations.
Important  factors  that  could  cause  actual results to differ materially from
those  indicated  include  risks  and  uncertainties  relating to the impact and
implementation  of  the  sexually  oriented  business  ordinances,  and  the
availability  of  acceptable  financing  to  fund  corporate  expansion efforts.

     __________________  _______________


Item  6.     Exhibits  and  Reports  on  Form  8-K

     (a)  Exhibits

     Financial  Data  Schedule  --  Exhibit  27.1

     (b)  Reports  on  Form  8-K

     None.

<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  hereunto  duly  authorized.

Taurus  Entertainment  Companies,  Inc.


Date:  May  ___,  1999              By:  /s/  Eric  Langan
                                         -----------------
                                         Eric  Langan
                                         President and Chief Accounting Officer

<PAGE>

<TABLE> <S> <C>

<ARTICLE> 5
<MULTIPLIER> 1
       
<S>                                     <C>
<PERIOD-TYPE>                           3-MOS
<FISCAL-YEAR-END>                       SEP-30-1999
<PERIOD-START>                          JAN-01-1999
<PERIOD-END>                            MAR-31-1999
<CASH>                                        8027 
<SECURITIES>                                     0
<RECEIVABLES>                               283632 
<ALLOWANCES>                                     0
<INVENTORY>                                      0
<CURRENT-ASSETS>                            862306 
<PP&E>                                     1646286 
<DEPRECIATION>                               96403 
<TOTAL-ASSETS>                             2493501 
<CURRENT-LIABILITIES>                       536444 
<BONDS>                                    1935350 
<COMMON>                                      4305 
                            0
                                      0
<OTHER-SE>                                  362689 
<TOTAL-LIABILITY-AND-EQUITY>               2493501 
<SALES>                                     471199 
<TOTAL-REVENUES>                            471199 
<CGS>                                        23873 
<TOTAL-COSTS>                               341673 
<OTHER-EXPENSES>                                 0
<LOSS-PROVISION>                                 0
<INTEREST-EXPENSE>                           46748 
<INCOME-PRETAX>                            (137002)
<INCOME-TAX>                                     0
<INCOME-CONTINUING>                         129526 
<DISCONTINUED>                             (219780)
<EXTRAORDINARY>                             256592 
<CHANGES>                                        0
<NET-INCOME>                                119589 
<EPS-PRIMARY>                                  .03 
<EPS-DILUTED>                                  .03 
        

</TABLE>


© 2022 IncJournal is not affiliated with or endorsed by the U.S. Securities and Exchange Commission