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Previous: CROWN CRAFTS INC, 10-Q, 1996-02-14 |
Next: CUBIC CORP /DE/, 10-Q, 1996-02-14 |
<PAGE> 1
U.S. SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
------------------------
(Mark One) FORM 10-QSB
(X) QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES ECHANGE ACT OF 1934
( ) TRANSITION REPORT UNDER SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the Quarter Ended Commission File Number 0-2374
December 31, 1995
CRYSTAL MOUNTAIN, INC.
(Exact name of registrant as specified in its charter)
One Crystal Mountain Blvd.
Crystal Mountain, Washington 98022
(address of principal executive offices)
Washington 91-0683256
(State of Incorporation) (IRS Employer Identification Number)
(360) 825-3865
(Telephone number)
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 ( )
At December 31, 1995, 26,609 shares of $50 par value Class A common stock and
710 shares of $20 par value Class B common stock were outstanding.
<PAGE> 2
CRYTAL MOUNTAIN, INC.
TABLE OF CONTENTS
<TABLE>
<CAPTION>
PAGE NO.
<S> <C> <C>
PART I Financial Information
Item 1 Financial Statements
Balance Sheet 3
Statement of Income 4
Statement of Cash Flows 5
Notes to Financial Statements 6
Item 2 Management's Discussion and Analysis of Financial Condition
and Results of Operations 7
Signatures 8
</TABLE>
<PAGE> 3
PART I - FINANCIAL INFORMATION
ITEM 1 - FINANCIAL STATEMENTS
CRYSTAL MOUNTAN, INC.
BALANCE SHEET
(Unaudited)
ASSETS
<TABLE>
<CAPTION>
December 31, December 31,
1995 1994
------------ ------------
<S> <C> <C>
CURRENT ASSETS
Cash and cash equivalents $ 931,000 $ 800,000
Short-term investments 115,000 112,000
Accounts receivable 103,000 13,000
Inventories 221,000 183,000
Prepaid expenses 180,000 164,000
---------- ----------
Total current assets 1,550,000 1,272,000
LAND IMPROVEMENTS, BUILDINGS AND EQUIPMENT, net 8,006,000 8,118,000
OTHER ASSETS 101,000 93,000
---------- ----------
$9,657,000 $9,483,000
========== ==========
LIABILITIES AND STOCKHOLER'S EQUITY
CURRENT LIABILITIES
Line of credit $ 0 $ 0
Accounts payable 892,000 628,000
Accrued Liabilities 715,000 837,000
Interest payable 0 1,000
Deferred income 73,000 176,000
Current portion of term debt and leases 251,000 267,000
---------- ----------
Total current liabilities 1,931,000 1,909,000
LONG-TERM DEBT AND CAPITAL LEASE OBLIGATIONS,
net of current portion 5,392,000 3,938,000
DEFERRED INCOME TAX 0 55,000
---------- ----------
Total liabilities 7,323,000 5,902,000
STOCKHOLDERS' EQUITY
Common stock---
Class A, $50 par value per share,
90,000 shares authorized, 26,609 issued and outstanding 1,331,000 1,331,000
Class B, $20 par value per share,
25,000 shares authorized, 710 issued and outstanding 14,000 14,000
Additional paid-in capital 505,000 505,000
Retained earnings 484,000 1,731,000
========== ==========
Total stockholders' equity 2,334,000 3,581,000
========== ==========
$9,657,000 $9,483,000
========== ==========
</TABLE>
See accompanying notes to financial statements.
-3-
<PAGE> 4
CRYSTAL MOUNTAN, INC.
STATEMENT OF INCOME
(Unaudited)
<TABLE>
<CAPTION>
For the Three Months Ended
December 31,
--------------------------------
1995 1994
---------- ----------
<S> <C> <C>
REVENUES
Mountain operations $1,686,000 $2,966,000
Food services 284,000 776,000
---------- ----------
1,970,000 3,742,000
---------- ----------
EXPENSES
Mountain operations 896,000 1,305,000
Food services 319,000 714,000
General and administrative 727,000 898,000
Depreciation and amortization 274,000 286,000
Interest 121,000 96,000
---------- ----------
2,337,000 3,299,000
---------- ----------
Income (loss) before income taxes (367,000) 443,000
Income tax benefit (expense) 0 0
---------- ----------
NET INCOME (LOSS) $ (367,000) $ 443,000
========== ==========
NET EARNINGS PER COMMON SHARE $ (13.43) $ 16.22
========== ==========
WEIGHTED AVERAGE SHARES OUTSTANDING 27,319 27,319
========== ==========
</TABLE>
See accompanying notes to financial statements.
-4-
<PAGE> 5
CRYSTAL MOUNTAN, INC.
STATEMENT OF CASH FLOWS
(Unaudited)
<TABLE>
<CAPTION>
For the Three Months Ended
December 31,
---------------------------
1995 1994
---------- ---------
<S> <C> <C>
CASH FLOWS FROM OPERATING
ACTIVITIES
Net income (Loss) $(367,000) $ 443,000
Adjustments to reconcile net income (loss)
to net cash provided by operating activities
Depreciation and amortization 274,000 285,000
Change in:
Accounts receivable (65,000) 53,000
Inventories (61,000) (83,000)
Prepaid expenses (55,000) (52,000)
Other assets 44,000 104,000
Accounts payable 415,000 502,000
Accrued liabilities (44,000) 342,000
Deferred income (34,000) 106,000
--------- ----------
107,000 1,700,000
--------- ----------
CASH FLOWS FROM INVESTING
ACTIVITIES
Increase (decrease) in short-term investments $ 0 $ 0
Capital expenditures, net (190,000) (294,000)
--------- ----------
(190,000) (294,000)
--------- ----------
CASH FLOWS FROM FINANCING
ACTIVITIES
Net payments on line of credit 0 (400,000)
Principal borrowings (payments) on
long-term debt and leases 860,000 (354,000)
--------- ----------
860,000 (754,000)
--------- ----------
NET INCREASE (DECREASE) IN CASH
AND CASH EQUIVALENTS 777,000 652,000
CASH AND CASH EQUIVALENTS
Beginning of period 154,000 148,000
--------- ----------
End of period $ 931,000 $ 800,000
========= ==========
SUPPLEMENTAL DISCLOSURE OF
CASH FLOW INFORMATION
Cash paid during the period for interest $ 121,000 $ 96,000
========= ==========
</TABLE>
See accompanying notes to financial statements.
-5-
<PAGE> 6
CRYSTAL MOUNTAIN, INC.
NOTES TO FINANCIAL STATEMENTS
THREE MONTHS ENDED DECEMBER 31 1995 AND 1994
(Unaudited)
NOTE 1 - SUMMARY OF FINANCIAL STATEMENT PRESENTATION
In the opinion of management, the financial statements include all
adjustments necessary to present fairly the changes in financial position and
results of operations for the interim periods reported.
Revenues are subject to material seasonal variations with approximately
90% of the Company's revenue recognized during the winter months of each fiscal
year. Interim operating results may not be taken as fairly representative of the
estimated results for a full fiscal year.
The financial statements should be read with reference to "management's
Discussion and Analysis of Financial Condition and Results of Operations"
contained herein and the "Notes to financial Statements" set forth in the
Company's 10-K filing for the year ended September 30, 1994.
NOTE 2 - PROVISION FOR INCOME TAX
There is no income tax provision for the interim periods reported
because the Company has significant net operating loss carryforwards which are
fully reserved.
-6-
<PAGE> 7
PART I - FINANCIAL INFORMATION
ITEM 2 - MANAGEMENT'S DISCUSSION AND ANALYSIS OF PLAN OF OPERATIONS
FIRST QUARTER 1995 COMPARED TO FIRST QUARTER 1994
Crystal Mountain is a company whose fortunes rise and fall with the vagaries of
weather. Each year is unique as to how weather conditions direct our financial
results. Once again the 1995-96 winter season start is proving just how weather
dependent we are. We did not open until December 15, 1995, compared to our
earliest opening ever on November 6, 1994. Although skiing conditions were good
in spite of low snow, the entire region including Crystal Mountain, was not able
to attract skiers and snowboarders to mountains. Paid skier visits fell
dramatically compared to the first quarter of 1994: 34,800 in 1995 versus
104,860 in 1994.
The Company's ability to reduce variable costs is limited once the mountain is
open for the season. It is difficult to reduce operating costs as revenues
decline, without cutting the quality of services that skiers expect and are
required if the Company is to remain competitive during the ski season.
Comparisons between first quarter 1995 to first quarter 1994 result in large
variances because the resort operated 39 days less in 1995 than 1994. Mountain
operating expenses and food services expenses are down 31% and 55% respectively
from the previous year.
Depreciation expense decreased 4% for the three month period. Interest expense
is up 26%. Opening late resulted in a higher level of debt which generated more
interest expense.
The Company's total bank debt rose to $5,643,000 at December 31, 1995, from
$4,188,000 at December 31, 1994, an increase of $1,3455,000. The classification
of debt is based upon management's expected loan pay down for the year to meet
or exceed the minimum payment required under the loan agreement. The negative
working capital for the interim period ending December 31, 1995 is not unusual
since excess cash is used to paydown borrowings rather than invested in short
term instruments. As the winter season progresses, we expect to continue to
meet obligations as they come due and do not anticipate the need for the
additional credit facilities.
The weather has changed to be very favorable as of January 15, 1996. However,
even with the improved weather conditions because of our late opening it is
unlikely to have year end results better than break-even.
-7-
CRYSTAL MOUNTAIN, INC.
<PAGE> 8
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 on the 10th day of January,
1996.
CRYSTAL MOUNTAIN, INC.
Date: January 10, 1996
----------------
By: \s\ Tom Leonard, President
Date: January 10, 1996
----------------
By: \s\ George Schmidt, Director of Finance & Systems
-8-
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1
<CURRENCY> U.S.
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> SEP-30-1996
<PERIOD-START> OCT-01-1995
<PERIOD-END> DEC-31-1995
<EXCHANGE-RATE> 1
<CASH> 931,000
<SECURITIES> 115,000
<RECEIVABLES> 103,000
<ALLOWANCES> 0
<INVENTORY> 401,000
<CURRENT-ASSETS> 1,550,000
<PP&E> 10,245,000
<DEPRECIATION> 9,657,000
<TOTAL-ASSETS> 1,931,000
<CURRENT-LIABILITIES> 5,392,000
<BONDS> 1,345,000
0
0
<COMMON> 0
<OTHER-SE> 989,000
<TOTAL-LIABILITY-AND-EQUITY> 9,657,000
<SALES> 1,970,000
<TOTAL-REVENUES> 1,970,000
<CGS> 0
<TOTAL-COSTS> 2,216,000
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 121,000
<INCOME-PRETAX> (367,000)
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (367,000)
<EPS-PRIMARY> (13.43)
<EPS-DILUTED> 0
</TABLE>
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