SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
X Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange
Act of 1934
For the quarterly period ended September 30, 1995
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 0-8628
FOUR CORNERS FINANCIAL CORPORATION (as of April 12, 1988)
(Exact Name of Registrant as Specified in its Charter)
Delaware 22-2044086
(State or other Jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
370 East Avenue, Rochester, New York 14604
(Address of principal executive offices - Zip Code)
(716) 454-2263
(Registrant's Telephone Number, including Area Code)
(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 _____ No X
APPLICABLE ONLY TO CORPORATE ISSUERS
Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the latest practicable date:
At November 10, 1995 there were 3,338,733 of the registrant's $.04 par value
common stock outstanding.
FOUR CORNERS FINANCIAL CORPORATION
INDEX
Page
Number
------
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements (Unaudited)
Consolidated Balance Sheets as of 1-2
September 30, 1995 (Unaudited) and
December 31, 1994
Consolidated Statements of Operations for the 3-4
Three Months and Nine Months Ended
September 30, 1995 and 1994 (Unaudited)
Consolidated Statements of Changes in 5
Stockholders' Investment for the Nine Months
Ended September 30, 1995 and 1994 (Unaudited)
Consolidated Statements of Cash Flows for the 6
Nine Months Ended September 30, 1995 and 1994
(Unaudited)
Notes to Condensed Consolidated Financial 7-13
Statements (Unaudited)
Item 2. Management's Discussion and Analysis of 14-15
Financial Condition and Results of Operations
PART II. OTHER INFORMATION
Item 1. Legal Proceedings 16
Item 2. Changes in Securities 16
Item 3. Default Upon Senior Securities 16
Item 4. Submission of Matters to a Vote of 16
Security Holders
Item 5. Other Information 16
Item 6. Exhibits and Reports on Form 8-K 16
SIGNATURE 17
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements (Unaudited)
FOUR CORNERS FINANCIAL CORPORATION
CONSOLIDATED BALANCE SHEETS
SEPTEMBER 30, 1995 AND DECEMBER 31, 1994
ASSETS
September 30, December 31,
1995 1994
------------- ------------
(Unaudited)
CURRENT ASSETS:
Cash and equivalents $ 52,898 $ 28,932
Cash - escrow deposits 54,846 70,633
Accounts receivable - trade, net of
allowance for doubtful accounts of $94,000
$100,000 in 1995 and 1994, respectively 529,778 478,094
Prepaid expenses 4,187 9,090
Other receivables 6,091 1,085
Income tax receivable -- 6,725
---------- ----------
Total current assets 647,800 594,559
---------- ----------
TITLE PLANT 367,283 367,283
---------- ----------
PROPERTY AND EQUIPMENT, net of accumulated
depreciation 225,262 305,358
---------- ----------
OTHER ASSETS:
Deposit 9,257 7,246
Cash value of life insurance 23,061 20,070
Intangible assets, net of accumulated
amortization 15,159 20,655
---------- ----------
47,477 47,971
---------- ----------
$1,287,822 $1,315,171
========== ==========
The accompanying notes are an integral part of these statements.
- 1 -
FOUR CORNERS FINANCIAL CORPORATION
CONSOLIDATED BALANCE SHEETS
SEPTEMBER 30, 1995 AND DECEMBER 31, 1994
LIABILITIES AND STOCKHOLDERS' INVESTMENT
September 30, December 31,
1995 1994
------------- ------------
(Unaudited)
CURRENT LIABILITIES:
Line-of-credit $ 235,000 $ 235,000
Current portion of notes payable 172,002 240,078
Current portion of obligations under
capital leases 40,006 45,805
Accounts payable 512,937 455,866
Accounts payable - related parties 20,000 --
Escrow deposits 54,846 70,633
Other accrued expenses 34,424 63,639
----------- -----------
Total current liabilities 1,069,215 1,111,021
----------- -----------
LONG-TERM LIABILITIES:
Notes payable, net of current portion 3,827 12,604
Obligations under capital leases, net
of current portion 5,050 33,325
Due to officer/principal stockholder 229,000 200,000
----------- -----------
Total long-term liabilities 237,877 245,929
----------- -----------
Total liabilities 1,307,092 1,356,950
----------- -----------
STOCKHOLDERS' INVESTMENT:
Common stock, $.04 par value, 15,000,000
shares authorized, 3,338,802 issued and
outstanding in 1995 and 1994 133,752 133,752
Additional paid-in-capital 835,402 835,402
Accumulated deficit ( 982,799) (1,005,308)
----------- -----------
(13,645) (36,154)
Less: Treasury stock at cost (5,625) (5,625)
----------- -----------
Total stockholders' investment (19,270) (41,779)
----------- -----------
$ 1,287,822 $ 1,315,171
=========== ===========
The accompanying notes are an integral part of these statements.
- 2 -
FOUR CORNERS FINANCIAL CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 1995 AND 1994
1995 1994
------------- -------------
(Unaudited) (Unaudited)
REVENUE:
Title insurance premiums $ 399,379 $ 451,078
Abstract and appraisal fees 599,672 654,942
----------- -----------
999,051 1,106,020
----------- -----------
DIRECT COSTS OF REVENUE:
Title insurance (116,046) (128,527)
Abstract and appraisal services (73,818) (106,752)
----------- -----------
(189,864) (235,279)
----------- -----------
Gross profit 809,187 870,741
OPERATING EXPENSES: (742,760) ( 928,630)
----------- -----------
Income/(loss) from operations 66,427 (57,889)
----------- -----------
INTEREST, NET: (18,502) (16,121)
----------- -----------
NET INCOME/(LOSS) $ 47,925 $ ( 74,010)
=========== ===========
NET INCOME/(LOSS) PER SHARE $ .01 $ (.02)
=========== ===========
The accompanying notes are an integral part of these statements.
- 3-
FOUR CORNERS FINANCIAL CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1995 AND 1994
1995 1994
------------- -------------
(Unaudited) (Unaudited)
REVENUE:
Title insurance premiums $1,095,945 $1,598,771
Abstract and appraisal fees 1,695,853 2,350,062
---------- ----------
2,791,798 3,948,833
---------- ----------
DIRECT COSTS OF REVENUE:
Title insurance (208,108) (430,015)
Abstract and appraisal services (339,437) (438,054)
---------- ----------
(547,545) (868,069)
---------- ----------
Gross profit 2,244,253 3,080,764
OPERATING EXPENSES: (2,165,635) (3,357,627)
---------- ----------
Income/(loss) from operations 78,618 (276,863)
---------- ----------
INTEREST, NET: (56,109) (49,780)
---------- ----------
NET INCOME/(LOSS) $ 22,509 $ (326,643)
========== ==========
NET INCOME/(LOSS) PER SHARE $ .01 $ (.10)
========== ==========
The accompanying notes are an integral part of these statements.
- 4-
FOUR CORNERS FINANCIAL CORPORATION
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' INVESTMENT
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1995 AND 1994
<TABLE>
<CAPTION>
--- Common Stock --- Additional Total
Paid-in- Accumulated Treasury Stockholders'
Shares Amount Capital Deficit Stock Investment
------ ------ ---------- ----------- -------- -------------
<S> <C> <C> <C> <C> <C> <C>
BALANCE, December 31, 1993 3,343,802 $ 133,752 $ 835,402 $ (536,278) $ (5,625) $ 427,251
Net loss for the nine months
ended September 30, 1994
(Unaudited) -- -- -- (362,643) -- (326,643)
--------- --------- --------- ----------- ---------- ----------
BALANCE, September 30, 1994
(Unaudited) 3,343,802 $ 133,752 $ 835,402 $ (862,921) $ (5,625) $ 100,608
========= ========= ========= =========== ========== ==========
BALANCE, December 31, 1994 3,343,802 $ 133,752 $ 835,402 $(1,005,308) $ (5,625) $ (41,779)
Net profit for the nine months
ended September 30, 1995
(Unaudited) -- -- -- 22,509 -- 22,509
--------- --------- --------- ----------- ---------- ----------
BALANCE, September 30, 1995
(Unaudited) 3,343,802 $ 133,752 $ 835,402 $ (982,799) $ (5,625) $ (19,270)
========= ========= ========= =========== ========== ==========
</TABLE>
The accompanying notes are an integral part of these statements.
- 5 -
FOUR CORNERS FINANCIAL CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1995 AND 1994
1995 1994
(Unaudited) (Unaudited)
------------- -------------
CASH FLOW OPERATING ACTIVITIES:
Net income/(loss) $ 22,509 $ (326,643)
Adjustments to reconcile net loss to
net cash flow from operating activities:
Depreciation and amortization 79,541 93,507
Decrease/(increase) in accounts receivable (51,684) 174,049
Decrease in other current assets 6,622 6,379
Increase in accounts payable 77,071 136,857
Decrease in other current liabilities (29,215) (55,244)
---------- ----------
Net cash flow from operating activities 104,844 28,905
---------- ----------
CASH FLOW FROM INVESTING ACTIVITIES:
Purchases of property and equipment,
net of disposals 6,051 (51,283)
Investment in cash value of life insurance (2,991) (18,465)
Increase in title plant --- (28,784)
Decrease/(increase) in deposit (2,011) 926
---------- ----------
Net cash flow from investing activities 1,049 (97,606)
---------- ----------
CASH FLOW FROM FINANCING ACTIVITIES:
Decrease in notes payable, net (47,853) (79,827)
Decrease in obligations under
capital leases, net (34,074) (12,623)
Increase in line-of-credit --- 95,000
---------- ----------
Net cash flow from financing activities (81,927) 2,550
---------- ----------
NET (DECREASE)INCREASE IN CASH AND EQUIVALENTS: 23,966 (66,151)
CASH AND EQUIVALENTS - beginning of period 28,932 99,652
---------- ----------
CASH AND EQUIVALENTS - end of period $ 52,898 $ 33,501
========== ==========
The accompanying notes are an integral part of these statements.
- 6 -
FOUR CORNERS FINANCIAL CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
SEPTEMBER 30, 1995 AND 1994
(Unaudited)
(1) General
The financial statements included herein have been prepared by the
Company, without audit, pursuant to the rules and regulations of the
Securities and Exchange Commission. Certain information and footnote
disclosures normally included in financial statements prepared in
accordance with generally accepted accounting principles have been
condensed or omitted pursuant to such rules and regulations, although the
Company believes that the disclosures are adequate in order that the
information presented is not misleading. All adjustments for a fair
presentation of financial information contained herein have been made.
(2) Organization
The Company -
Four Corners Financial Corporation (FCFC) and its Subsidiaries, Four
Corners Abstract Corporation (FCAC) and Proper Appraisal Specialists,
Inc. provide services and products including real estate title
searching, preparation of abstracts of title, issuance of title insurance
as an agent for certain national underwriting companies and real estate
appraisals, primarily in western and central New York State. All of these
services and products are required in connection with the mortgaging,
sale or purchase of real property.
Unless otherwise indicated, the term "Company" refers to Four Corners
Financial Corp. and its Subsidiaries. The Company operates in one business
segment.
(3) Summary of Significant Accounting Policies
Principles of Consolidation -
The consolidated financial statements include the accounts of FCFC and all
of its subsidiaries. All significant intercompany transactions and
balances have been eliminated.
Cash and Equivalents -
Cash and equivalents include time deposits and other instruments with
a maturity of three months or less at the time of purchase. The Company
maintains cash balances at several banks. Accounts at each institution are
insured by The Federal Deposit Insurance Corporation up to $100,000.
- 7 -
(3) Summary of Significant Accounting Policies (Continued)
Property and Equipment -
Property and equipment is stated at cost and is depreciated using
accelerated and straight-line methods over the following useful lives:
Buildings 15 - 31.5 years
Furniture and Equipment 3 - 10 years
Vehicles 5 years
Leasehold Improvements Life of lease
At the time of retirement or other disposition of property, the cost
and accumulated depreciation are removed from the accounts and any gain or
loss is reflected in the statements of operations. Repairs and
maintenance costs are charged to expense when incurred.
Intangible Assets -
Intangible assets consist of goodwill and covenants not-to-compete resulting
from the 1987 acquisition of the Albany branch, the 1989 acquisition of
Livingston Abstract Corporation, the 1990 acquisition of Picciano Abstract
Company, Inc. and the 1991 acquisition of Proper Appraisal Specialists,
Inc. The goodwill and covenants not-to-compete are being amortized on a
straight-line basis over a five-year period.
Title Plant -
Title plant consists of copies of public records, maps and other relevant
historical documents which facilitate the preparation of title abstract
reports without the necessity of manually searching official public records.
The Company has incurred identifiable costs related to the activities
necessary to construct a title plant which are reflected as assets. A title
plant is regarded as a tangible asset having an indefinite economic life;
accordingly, title plant costs are not depreciated. Costs incurred to
perform full title search additions to the title plant are capitalized in
the year incurred. Costs incurred to maintain or update existing title
files in the title plant are expensed as incurred.
Revenue Recognition -
Title insurance is provided to purchasers or financiers of real property
purchases. The related revenue is recognized when policies become
effective, generally at the property or mortgage loan closing. Under terms
of the Company's agreements with its title insurance underwriters, a
commission of 15% to 20% is paid to its underwriter on all title insurance
policies written. Pricing is based on a rate schedule established by the
Insurance Department of the State of New York which provides for varying
rates for services rendered. Commission expense is reflected as a direct
cost of title insurance revenue in the statement of operations.
- 8 -
(3) Summary of Significant Accounting Policies (Continued)
Revenue Recognition - (Continued)
The Company also performs title abstract research and prepares appraisals on
real properties. Abstract and appraisal revenue is recognized as earned.
Direct costs of abstract and appraisal revenue reflects the cost of work
performed by subcontractors in geographical areas where the Company does not
maintain an office, among other direct costs.
(4) Acquisitions
The Company acquired Proper Appraisal Specialists, Inc. (1991), Picciano
Abstract Company, Inc. (1990), Livingston Abstract Corporation (1989) and
Mid-State (1988) for cash, notes and common stock totalling approximately
$185,000. These acquisitions were accounted for as purchases. Goodwill,
representing the excess of purchase price over the fair value of tangible
assets acquired related to these acquisitions, totalled approximately
$66,000 and is being amortized over five years. These companies were
subsequently merged into FCAC.
(5) Income Taxes
During 1993, the Company adopted Statement of Financial Accounting
Standards No. 109 (SFAS 109), "Accounting for Income Taxes". SFAS 109
requires an asset and a liability approach to measuring deferred income
taxes. Previous standards required an income statement approach.
There were no material temporary differences at December 31, 1994 or
at September 30, 1995. Therefore, no deferred taxes have been provided.
At December 31, 1994, the Company has available a net operating loss
carry-forward of approximately $388,000, which begins to expire in 2002. The
Company has recorded a valuation allowance equal to the deferred tax asset
related to the carryforward.
(6) Escrow Deposits
As a service to its customers, FCAC administers escrow deposits representing
undisbursed amounts received for settlements of mortgage loans or property
sales and indemnities against specific title risks. These funds, totalling
$54,846 and $70,633 at September 30, 1995 and December 31, 1994,
respectively, are recorded as both a current asset and a current liability
in the accompanying consolidated balance sheets.
- 9 -
(7) Notes Payable and Obligations Under Capital Leases
Notes Payable -
Notes payable consisted of the following:
September 30, December 31,
1995 1994
------------- ------------
Note payable to Marine Midland Bank,
due in monthly installments of
$8,333 plus interest at the prime
rate plus 3/4%, maturing in April,
1997. This noteis guaranteed by
the officers/stock-holders of the
Company, and is collateralized by
substantially all of the Company's
assets. $ 150,000 $ 225,000
Various notes payable in aggregate
monthly installments of $1,391
including interest at rates ranging
from 8% to 9%. These notes mature
through June, 1997 and are
collateralized by the related
equipment. 25,829 27,682
---------- ----------
175,829 252,682
Less: Current Portion (172,002) (240,078)
---------- ----------
$ 3,827 $ 12,604
========== ==========
Obligations Under Capital Leases:
The Company has entered into several capital lease agreements for equipment.
These obligations consist of the following:
September 30, December 31,
1995 1994
------------- ------------
Various leases payable in aggregate
monthly installments of $4,257
including interest at rates
ranging from 8.4% to 13.2%. These
leases mature through January,
1997 and are collateralized by the
equipment. $ 45,056 $ 79,130
Less: Current Portion (40,006) (45,805)
---------- ----------
$ 5,050 $ 33,325
========== ==========
- 10 -
(8) Lines-of-Credit
The Company may borrow up to $250,000 under the terms of a line-of-credit
agreement with a bank. This line-of-credit is renewable annually. Amounts
borrowed bear interest at the bank's prime rate plus 1/2% and are
collateralized by substantially all assets of the Company. At September 30,
1995 and December 31, 1994, there was $235,000 outstanding on this line.
The Company may also borrow up to $100,000 under the terms of an unsecured
line-of-credit with another bank. Amounts borrowed bear interest at the
bank's prime rate plus 1%. Borrowings under this line-of-credit are
personally guaranteed by the Company's principal officer/stockholder. At
September 30, 1995 and December 31, 1994, there were no borrowings on this
line-of-credit.
(9) Stockholders' Investment
Stock Options -
In July, 1992, the Company's Board of Directors adopted and the stockholders
approved the 1992 Stock Option Plan (1992 Plan) which replaced the 1988
Stock Incentive Plan (1988 Plan).
Under the 1992 Plan, the Company may issue incentive stock options,
non-statutory options, non-employee director options and reload options.
The exercise price of incentive, non-statutory and reload options will not
be less than fair market value at date of grant. Incentive and
non-statutory options will generally expire ten years from date of grant.
Reload options will have a term equal to the remaining option term of the
underlying option.
The 1992 Plan also provides for annual grants of stock options to purchase
500 shares of the Company's common stock to non-employee directors of the
Company with an exercise price not less than fair market value at date of
grant. These options will expire ten years from date of grant.
Options issued under the 1988 Plan expire in 1995. No further options will
be granted under the 1988 Plan.
The Company has reserved 520,000 common shares for issuance under both
plans.
At September 30, 1995 and December 31, 1994, there were 271,000 options
outstanding under the 1992 and 1988 Plans.
- 11 -
(10) Related Party Transactions
Due to Officers/Principal Stockholders -
During 1994, 1993, and 1992, one of the Company's principal
officers/stock-holders made advances to the Company. These advances bear
interest at the prime rate plus 3% and repayment is subordinated to the
amounts outstanding under all other bank debt agreements. The principal
officer/stockholder has agreed not to require payment of this amount
through January 1, 1997.
At September 30, 1995 and December 31, 1994, the amounts outstanding on
this debt was $229,000 and $200,000, respectively.
Office Lease Commitment -
The Company leases its Rochester facility from a party related through
common management. The Company has a five year lease agreement through June
30, 2000 at an annual rental of $68,000. Rent and common area charges
were approximately $58,372, $213,000 and $263,000 in 1994, 1993 and
1992, respectively. During 1994, total unpaid rent of $109,000 was
forgiven by the related party. This amount has been reflected as an
extraordinary item, net of income taxes, of $44,000. The Company owed
approximately $20,000 for unpaid rent at September 30, 1995.
Significant Customer -
In 1994, 1993 and 1992, 4%, 4% and 3%, respectively, of revenue was derived
from a related party.
(11) Lease Commitments
FCAC leases other office facilities under lease agreements expiring
through March, 1998.
Minimum lease payments under non-cancelable lease agreements are as follows
at December 31, 1994:
1995. . . . . . . . . . . . . . . . . . . . . 119,501
1996. . . . . . . . . . . . . . . . . . . . . 107,668
1997. . . . . . . . . . . . . . . . . . . . . 54,668
1998. . . . . . . . . . . . . . . . . . . . . 40,062
--------
$321,899
========
Rent expenses related to these operating leases was approximately
$135,000, $127,000 and $174,000 for the years ended December 31, 1994,
1993 and 1992, respectively.
- 12 -
(12) Reverse Stock Split
In July, 1992, the Company's stockholders approved a one-for-four
reverse stock split. In conjunction with this reverse stock split, the
authorized number of shares was reduced to 15,000,000 and par value was
increased to $.04 per share. These actions have been retroactively
reflected in the financial statements.
- 13 -
Item 2. Management's Discussion and Analysis of Financial Condition and Results
of Operations
Liquidity and Capital Resources
The Company's cash flow results from operations, bank loans, advances made by
principal stockholders and from sales of common stock.
During the first nine months of 1995, cash reserves of $28,932 and cash flow
from operating activities of $104,844 were sufficient to fund the Company's net
asset investments of $1,049 and a negative cash flow from debt financing
activities of $81,927.
Cash Flow from Operations: The Company had positive cash flow from operating
activities through the first three quarters of 1995 of $104,844 compared to
$28,905 for the same period in 1994. Despite the decrease in operating cash flow
arising from a redction in accounts receivable of $51,684, total positive
operating cash flows were primarily attributable to the net profit of $22,509
and an increase in accounts payable of $77,071.
Cash Flow from Investing Activities: The only capital expenditures incurred by
the Company during the first nine months of 1995 related to capital improvements
for the Rochester corporate office building. The Company made no title plant
investment for the third consecutive quarter in 1995, whereas a total of $28,784
was contributed to this cause for the previous calendar year through September,
1994. In addition, the Company continued to make an investment in a Keyman life
insurance policy with a cash surrender value of $23,061 as of the end of the
third quarter. At September, 30, 1995, the Company had no material purchase
commitments.
Cash Flow from Financing Activities: Primary cash flows from financing
activities relate to changes in financing under lines-of-credit, notes payable
and advances made by principal stockholders. To support operations during the
first three quarters of 1995, the Company increased borrowings from its
principal officer/stockholder by $29,000. This funding, along with the cash flow
generated from operating activities, was adequate to support the reduction of
notes payable and capital lease obligations of $47,853 and $34,074,
respectively.
The Company expects that the cash flow generated from operations and bank
lines-of-credit currently available will be adequate to meet its working capital
and capital expenditure needs for the remainder of 1995.
- 14 -
Results of Operations
Total revenues for the first nine months of 1995 were $2,791,798 as compared to
$3,948,833 for the same nine months of 1994. This decrease of $1,157,035 or 29%
resulted from decreased sales order volume especially in the home equity market.
The revenues generated from title insurance premiums decreased by 31% to
$1,095,945 as compared to $1,598,771 for the first three quarters of the 1994
calendar year. In addition to this significant decrease attributable to title
operations, revenues from abstract and appraisal fees during the first nine
months of 1995 decreased by $654,209 to $1,695,853 as compared to $2,350,062 for
the same period in 1994.
Due to the decreased sales order volume in areas where the Company does
business, the need for subcontractor services declined during the first nine
months of 1995. Correspondingly, direct costs of revenue decreased to 19.6% of
revenues for this time period of 1995 as compared to 22.0% for the same period
in 1994. Gross profit for the nine months ended September 30, 1995 was
$2,244,253 or 80.4%. Operating expenses for the months of January, 1995 through
September of 1995 were $2,165,635 or 77.6% of revenues as compared to
$3,357,627 or 85.0% of revenues for the same six months in 1994. The reduction
in operating expenses is primarily due to a sizeable decrease in personnel and
the related variable payroll costs. The Company anticipates a slight reduction
in revenues during the fourth quarter of 1995 and a corresponding percentage
reduction in operating costs. At the same time, the Company will make necessary
cuts in operating expenses to bring them in line with projected revenues in
order to increase the existing profit of $22,509 incurred through the first
three quarters of 1995. This compares to a net loss of $326,643 for the same
time period in 1994.
The Company's ratio of current assets to current liabilities at September 30,
1995 and December 31, 1994 was 61:1 and 54:1, respectively. Accordingly, the
Company had a working capital deficit of $421,415 as of September 30, 1995
compared to $516,462 as of December 31, 1994.
- 15 -
PART II - OTHER INFORMATION
Item 1. Legal Proceedings
None
Item 2. Changes in Securities
None
Item 3. Default 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
a. Exhibits
None
b. Reports on Form 8-K
None
- 16 -
SIGNATURE
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.
FOUR CORNERS FINANCIAL CORPORATION
Date November 13, 1995 By /s/ William S. Gagliano
--------------------------- ----------------------------------------
William S. Gagliano
Executive Vice President and
Chief Accounting Officer
- 17 -
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> SEP-30-1995
<CASH> 52,898
<SECURITIES> 0
<RECEIVABLES> 623,778
<ALLOWANCES> 94,000
<INVENTORY> 0
<CURRENT-ASSETS> 647,800
<PP&E> 1,092,779
<DEPRECIATION> 867,518
<TOTAL-ASSETS> 1,287,822
<CURRENT-LIABILITIES> 1,069,215
<BONDS> 0
<COMMON> 133,752
0
0
<OTHER-SE> 153,022
<TOTAL-LIABILITY-AND-EQUITY> 1,287,822
<SALES> 2,791,798
<TOTAL-REVENUES> 2,791,798
<CGS> 547,545
<TOTAL-COSTS> 2,713,180
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 56,109
<INCOME-PRETAX> 22,509
<INCOME-TAX> 0
<INCOME-CONTINUING> 22,509
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 22,509
<EPS-PRIMARY> .01
<EPS-DILUTED> .01
</TABLE>
