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Previous: BIOCONTROL TECHNOLOGY INC, 8-K, 1998-05-08 |
Next: CORPORATE PROPERTY ASSOCIATES, 15-15D, 1998-05-08 |
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 10-Q
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF
THE SECURITIES EXCHANGE ACT OF 1934
For the Six Months Ended Commission File Number
September 30, 1997 0-4563
THE ENCORE GROUP, INC.
P.O. Box 69536
Portland, Oregon 97201
IRS Employer Identification Number: 93-0580867
Incorporated in the State of Oregon
Telephone Number: (503) 221-4255
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 Act of 1934 during the
preceding 12 months (or for such 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
-------- --------
Number of shares of common stock outstanding as of May 2, 1998: 9,820
<PAGE>
Part I, Item I
THE ENCORE GROUP, INC.
AND SUBSIDIARY
CONSOLIDATED BALANCE SHEETS
As of September 30, 1997 and December 31, 1996
(In thousands, except share data)
September 30, December 31,
1997 1996
------------ ------------
(Unaudited)
ASSETS
CURRENT ASSETS
Cash $ 2 $ 10
Accounts receivable - (1)
Inventory - -
Prepaid expenses 6 10
------------ ------------
Total current assets 8 19
------------ ------------
NON-CURRENT ASSETS
Land held for sale - 15
Fixed assets, net - -
Goodwill, net - -
------------ ------------
- 15
------------ ------------
Total assets $ 8 $ 34
============ ============
LIABILITIES AND STOCKHOLDERS' DEFICIT
CURRENT LIABILITIES
Accounts payable $ 270 $ 275
Accrued liabilities 38 19
Note payable - -
------------ ------------
Total current liabilities 308 294
PENSION LIABILITIES 248 267
Total liabilities 556 561
------------ ------------
STOCKHOLDERS' DEFICIT
Common stock without par value,
9,820 outstanding 6,113 6,113
Additional paid-in capital 20,975 20,975
Retained deficit (27,479) (27,458)
Pension liability adjustment (157) (157)
------------ ------------
Total stockholders' deficit (548) (527)
Total liabilities and stockholders' deficit $ 8 $ 34
============ ============
-2-
<PAGE>
THE ENCORE GROUP, INC.
AND SUBSIDIARY
CONSOLIDATED STATEMENT OF OPERATIONS
For the periods ended September 30, 1997 & 1996
(In thousands, except share and per share data)
THREE MONTHS ENDED NINE MONTHS ENDED
SEPTEMBER 30, SEPTEMBER 30,
------------------ ------------------
1997 1996 1997 1996
(unaudited) (unaudited)
-------- -------- -------- --------
SALES $ - $ 77 $ - $ 737
LESS COST OF SALES - 86 - 535
-------- -------- -------- --------
GROSS PROFIT - (9) - 202
SELLING, GENERAL &
ADMINISTRATIVE EXPENSES 13 116 23 496
-------- -------- -------- --------
Operating income (loss) (13) (125) (23) (294)
NON-OPERATING REVENUES &
EXPENSES
Other income 3 - 3 -
Other expense - (5) - (15)
Interest expense - (3) - (10)
Total non-operating
revenues & expenses - (8) - (25)
-------- -------- -------- --------
NET INCOME (LOSS) $ (10) $ (133) $ (20) $ (319)
======== ======== ======== ========
PER SHARE
Net income (loss) per share $ (1.10) $(13.54) $ (2.07) $(32.48)
======== ======== ======== ========
Average common
shares outstanding 9,820 9,820 9,820 9,820
======== ======== ======== ========
Note: Number of shares outstanding and (loss) per share are restated to show
effect of reverse stock split of April 23, 1996.
-3-
<PAGE>
THE ENCORE GROUP, INC.
AND SUBSIDIARY
CONSOLIDATED STATEMENT OF CASH FLOWS
For the nine months ended September 30, 1997 & 1996
(In thousands)
NINE MONTHS ENDED SEPTEMBER 30,
1997 1996
------------ ------------
(unaudited)
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss $ (20) $ (319)
Adjustments to reconcile net income to net cash
provided by (used in) operating activities
Depreciation - 10
Amortization of goodwill - 18
Loss on disposal of assets - -
Accounts receivable - 4
Inventory - 68
Prepaid expenses and other - 33
Accounts payable (4) 66
Accrued liabilities - (11)
------------ ------------
Net cash provided by operating activities (16) (8)
------------ ------------
CASH FLOWS RELATED TO INVESTING ACTIVITIES
Collections on notes and mortgage receivable - -
Proceeds from sale of fixed assets 14 -
Purchase of fixed assets - -
------------ ------------
Net cash provided by (used in) investing activities - -
------------ ------------
CASH FLOWS RELATED TO FINANCING ACTIVITIES
Net borrowings (payments) related to line of credit - -
Principal payments on notes payable - (3)
------------ ------------
Net cash used in financing activities - (3)
------------ ------------
NET INCREASE (DECREASE) IN CASH (2) 5
CASH, beginning of period 4 8
------------ ------------
CASH, end of period $ 2 $ 13
============ ============
INTEREST PAID $ - $ 10
============ ============
-4-
<PAGE>
Part I, Item 2
THE ENCORE GROUP, INC.
AND SUBSIDIARY
Management's Discussion and Analysis of Financial
Condition and Results of Operations
RESULTS OF OPERATIONS
Registrant is not operating.
LIQUIDITY AND CAPITAL RESOURCES
Registrant is insolvent and defunct.
Future efforts to revive the business.
- -------------------------------------
Registrant's controlling shareholder is seeking to revive the company
by settling the claims of the creditors. These creditors include trade vendors,
the Internal Revenue Service, and the Pension Benefit Guarantee Corporation.
Should these settlement arrangements be made, it will be necessary for
Registrant to secure working capital to fund the arrangements. There is no
assurance that this effort will succeed.
Part II, Other Information
THE ENCORE GROUP, INC.
AND SUBSIDIARIES
Item 1. Legal Proceedings
The Company was not involved in any litigation.
Item 5. Other Information
None
Item 6. Exhibits and Reports on From 8-K
None
-5-
<PAGE>
Signatures
THE ENCORE GROUP, INC.
AND SUBSIDIARIES
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.
The Encore Group, Inc.
Date: May 6, 1998
/s/Fred J. Kupel
-----------------
Fred J. Kupel
Vice President - Finance and
Chief Financial Officer
-6-
<PAGE>
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM
REGISTRANT'S REPORT ON FORM 10-Q FOR THE PERIOD ENDED JUNE 30, 1997
AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL
STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-END> SEP-30-1997
<CASH> 2
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 8
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 8
<CURRENT-LIABILITIES> 308
<BONDS> 0
0
0
<COMMON> 6,113
<OTHER-SE> (6,661)
<TOTAL-LIABILITY-AND-EQUITY> 8
<SALES> 0
<TOTAL-REVENUES> 0
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 23
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> (20)
<INCOME-TAX> 0
<INCOME-CONTINUING> (20)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (20)
<EPS-PRIMARY> (1.10)
<EPS-DILUTED> (1.10)
</TABLE>
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