FORM 10-QSB
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D. C. 20001
QUARTERLY REPORT UNDER SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
FOR QUARTER ENDED SEPTEMBER 30, 1995 COMMISSION FILE NUMBER 07320
FARM FISH, INC.
A MISSISSIPPI CORPORATION E. I. NUMBER 64-0474591
Post Office Box 23109
Jackson, Mississippi 39225-3109
Telephone Number (601) 354-3801
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 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
State the number of shares outstanding of each of the issuers classes of
common equity, as of the latest purchased date.
CLASS OUTSTANDING AS SEPTEMBER 30, 1995
Common Stock, No Par Value 2,688,605 Shares
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FARM FISH, INC.
INDEX
PAGE
PART I FINANCIAL INFORMATION
Consolidated Condensed Balance Sheets
September 30, 1995 and December 31, 1994 1
Consolidated Condensed Statements of Operations
Three Months and Nine Months Ended
September 30, 1995 and 1994 2
Consolidated Condensed Statements of Cash Flows
Nine Months Ended September 30, 1995 and 1994 3
Notes to Consolidated Condensed
Financial Statements 4
Management's Discussion and Analysis of Financial
Condition and Results of Operations 5,6
PART II OTHER INFORMATION 7
EXHIBIT 27 8
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PART I FINANCIAL INFORMATION
FARM FISH, INC.
CONSOLIDATED CONDENSED BALANCE SHEETS
SEPTEMBER 30, 1995 (UNAUDITED) AND DECEMBER 31, 1994
SEPTEMBER 30, DEC. 31
1995 1994
----------- -----------
(UNAUDITED) (*NOTE)
ASSETS
CURRENT ASSETS
Cash $ 96,980 $ 96,864
Accounts Receivable - Net 211,959 165,830
Inventories - Note 2 3,748,726 3,688,944
Prepaid Expenses 6,917 12,034
---------- ----------
Total Current Assets 4,064,582 3,963,672
PROPERTY, PONDS, AND EQUIPMENT - NET 2,183,283 2,269,459
OTHER ASSETS 718,436 589,865
---------- ----------
TOTAL ASSETS $6,966,301 $6,822,996
========== ==========
LIABILITIES AND STOCKHOLDER'S EQUITY
CURRENT LIABILITIES
Accounts Payable $ 9,992 $ 25,248
Advances Payable to Shareholder &
Current Maturities 2,315,587 2,901,034
Other Accrued Expenses and Payable 433,669 117,581
---------- ----------
Total Current Liabilities 2,759,248 3,043,863
LONG TERM DEBT, Less Current Maturities 570,000 670,000
DEFERRED INCOME TAXES 4,672 114,000
STOCKHOLDERS' EQUITY
Common Stock - without par value, authorized
5,000,000 shares, subscribed and issued 2,688,605
shares at stated value at September 30, 1995 and
2,688,605 shares at December 31, 1994 4,424,336 4,424,336
Additional Paid-In Capital 475,776 475,776
Retained Earnings (Deficit) (1,267,731) (1,904,979)
---------- ----------
Total Stockholders' Equity 3,632,381 2,995,133
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $6,966,301 $6,822,996
========== ==========
*See accompanying notes to consolidated condensed financial statements.
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FARM FISH, INC.
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
(UNAUDITED)
FOR THREE MONTHS AND NINE MONTHS ENDED SEPTEMBER 30, 1995 AND 1994
THREE MONTHS ENDED NINE MONTHS ENDED
SEPTEMBER 30 SEPTEMBER 30
----------------------- ----------------------
1995 1994 1995 1994
NET SALES $1,284,580 $ 813,546 $3,026,692 $2,419,807
OTHER INCOME 18,444 12,757 413,265 241,103
---------- ---------- ---------- ----------
1,303,024 826,303 3,439,957 2,660,910
COST AND EXPENSES
Cost of Sales 900,002 527,586 2,233,487 1,769,674
Selling, General,
& Administrative Expense
Other Than Interest 43,772 42,675 122,701 132,138
Interest 20,016 20,117 65,869 74,812
---------- ---------- ---------- ----------
Total Cost and Expenses 963,790 590,378 2,422,057 1,976,624
INCOME BEFORE INCOME TAXES 339,234 235,925 1,017,900 684,286
INCOME TAX EXPENSE 122,787 87,292 380,651 253,377
---------- ---------- ---------- ----------
NET INCOME $ 216,447 $ 148,633 $ 637,249 $ 430,909
========== ========== ========== ==========
WEIGHTED AVERAGE NUMBER OF
COMMON SHARES OUTSTANDING
(Primary & assuming
full Dilution) 2,688,605 2,688,605 2,688,605 2,688,605
---------- ---------- ---------- ----------
NET INCOME PER SHARE $ 0.08 $ 0.06 $ 0.24 $ 0.16
---------- ---------- ---------- ----------
See accompanying notes to consolidated condensed financial statements
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FARM FISH, INC.
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
(UNAUDITED)
FOR NINE MONTHS ENDED SEPTEMBER 30, 1995 AND 1994
NINE MONTHS ENDED
SEPTEMBER 30
-----------------------
1995 1994
NET CASH PROVIDED BY OPERATING ACTIVITIES $ 915,842 $ 407,614
INVESTING ACTIVITIES
Purchase of Equipment (98,266) (147,517)
Decrease (Increase) in Other Assets (132,012) (2,255)
---------- ----------
NET CASH PROVIDED (USED) IN INVESTING ACTIVITIES (230,278) (149,772)
FINANCING ACTIVITIES
Proceeds from Borrowing 190,000 150,000
Principal Payments on Borrowing (540,730) (500,000)
Advances from Shareholders (334,718) 46,780
Payments on Shareholders Advances 0 0
---------- ----------
NET CASH PROVIDED (USED) IN FINANCING ACTIVITIES (685,448) (303,220)
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 116 (45,378)
Cash and Cash Equivalents at Beginning of Period 96,864 82,673
--------- ----------
CASH AND CASH EQUIVALENTS AT END OF PERIOD $ 96,980 $ 37,295
========== ==========
See accompanying notes to consolidated condensed financial statements
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FARM FISH, INC.
NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
NOTE 1: BASIS OF PRESENTATION
The accompanying unaudited consolidated condensed financial statements have
been prepared in accordance with generally accepted accounting principles
for interium financial information and with the instructions to Form 10-QSB
and Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the
information and footnotes required by generally accepted accounting
principals for complete financial statements. In the opinion of management,
all adjustments (consisting of normal recurring accruals) considered
necessary for a fair presentation have been included. Operating results for
the nine-month period ended September 30, 1995 are not necessarily indicative
of the results that may be expected for the year ended December 31, 1995.
For further information refer to consolidated financial statements and
footnotes thereto included in the Company's Annual Report on Form 10-K for
year ended December 31, 1994.
NOTE 2: INVENTORIES
The components of inventory consist of the following:
SEPTEMBER 30, DEC. 31.
1995 1994
---------- -----------
Live Fish $3,714,867 $3,661,061
Feed and Supplies 33,859 27,883
---------- ----------
TOTAL INVENTORY $3,748,726 $3,688,944
NOTE 3: INCOME TAXES
The effective income tax rate for the quarter September 30, 1995 and
September 30, 1994 differ from the statutory federal income tax rate due to
state income tax.
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FARM FISH, INC.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
The following is Management's Discussion and Analysis of certain significant
factors which have affected the Company's earnings during the periods
included in the accompanying statement of income.
OPERATING INCOME
NINE MONTHS ENDED SEPTEMBER 30, 1995 COMPARED TO NINE MONTHS ENDED
SEPTEMBER 30, 1994
During the nine month period ended September 30, 1995, Farm Fish,
Inc. made a profit (before tax) of $1,018,000 compared to $684,000
profit for the same period in 1994. Net sales were up $607,000 or
25% compared to the nine month period ended September 30, 1994.
Other income was up $172,000 compared to the same period last year.
An increase in fingerling sales of $189,000 and a decrease of $18,000
in patronage dividend accounted for the net increase in other income.
The average selling price of food fish was $.80 per pound for the
nine-month period ended September 30, 1995 compared to $.74 per pound
for the first nine months of 1994. This increase of $.06 per pound in
selling price contributed more than $226,000 of income of Farm Fish,
Inc. for the current period.
Cost of sales was 73.8% of net food fish sales for the current nine
month period compared to 73.1% cost of sales of the same "product"
for the comparative period in 1994. Production cost have been
steady for both periods. The current interest expense was down $8,900
or 12.0% because of a lower rate of interest on Farm Fish, Inc. notes
payable with creditors.
THREE MONTHS ENDED SEPTEMBER 30, 1995 COMPARED TO THREE MONTHS ENDED
SEPTEMBER 30, 1994
Farm Fish, Inc. had a net profit (before tax) of $339,000 for the
third quarter of 1995, compared to a net profit of $236,000 for the
third quarter of 1994. Net food fish sales for the three months
ended September 30, 1995 was $1,285,000 compared to $814,000 for the
same three months of 1994. Current quarter sales were up $471,000 or
57.9% over the same period last year.
The average selling price of food fish for the current period was $.80
per pound compared to same selling price for third quarter of third
quarter of 1994. Other income was up $5,700 for the current quarter
compared to the same quarter of last year.
Cost of sales was 70.1% of net food fish for the current period
ended September 30, 1995, compared to 64.9% cost of sales for the
same three month period of 1994. About half of this increase in
cost sales for the current period was due to $39,000 "reserve for
pond closing" established during this period.
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FARM FISH, INC.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Continued
LIQUIDITY AND CAPITAL RESOURCES
As of September 30, 1995 current assets exceeded current
liabilities by $1,305,000 compared to $813,000 for the same
period ended September 30, 1994. Most of this change was a net
decrease in current liabilities of $396,000.
Delta Industries, Inc. made no payments for the company during
the nine month period compared to $47,000 paid (mostly legal,
audit, and insurance expense) for the same period in 1994.
Farm Fish, Inc. had an available line of credit of $600,000 with
a local bank of September 30, 1995, compared to $450,000 available
as of September 30, 1994. In addition to this line of credit and
internally generated funds, the company would rely on Delta
Industries, Inc. to supply additional working capital if needed.
The company re-financed its long-term debt in June 1993. Interest
on this note is payable quarterly beginning September 30, 1993 with
the annual principal payments of $100,000 due April 30 of each year
and final payment due April 30, 1999.
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PART II OTHER INFORMATION
FARM FISH, INC.
ITEM 1 - LEGAL PROCEEDINGS
The Registrant is not aware of any pending legal proceedings, other
than ordinary routine litigation incidental to the business, involving
the Registrant or its subsidiary of any property or assets of the
Registrant of its subsidiary.
ITEM 4 - SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
There was no stockholders' meeting held during quarter ended September
30, 1995.
ITEM 6 - EXHIBIT AND REPORT ON FORM 8-K
Exhibit 27 - Financial Data Schedule
There was no report on Form 8-K for the quarter ended
September 30, 1995.
SIGNATURES
In accordance with the requirement of the Exchange Act, the Registrant caused
this report to be signed on its behalf by the undersigned thereunto duly
authorized.
FARM FISH, INC.
---------------
(Registrant)
November 9, 1995
- ---------------- -----------------------
Date C. E. Horne, Secretary
and Chief Financial Officer
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> SEP-30-1995
<CASH> 96,980
<SECURITIES> 718,436
<RECEIVABLES> 211,959
<ALLOWANCES> 0
<INVENTORY> 3,748,726
<CURRENT-ASSETS> 4,064,582
<PP&E> 2,183,283
<DEPRECIATION> 184,442
<TOTAL-ASSETS> 6,966,301
<CURRENT-LIABILITIES> 2,759,248
<BONDS> 0
<COMMON> 0
0
0
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 0
<SALES> 0
<TOTAL-REVENUES> 0
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 0
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 0
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
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