August 10, 1995
FEDERAL EXPRESS
Securities and Exchange Commission
Judiciary Plaza
450 Fifth Street, N. W.
Washington, D. C. 20001
RE: Farm Fish, Inc.
Commission File #07320
Form 10-QSB for Period Ended June 30, 1995
Gentlemen:
Pursuant to requirements of Securities Exchange Act of 1934, we are
transmitting herewith the attached Form 10-QSB for the quarter ended
June 30, 1995.
Sincerely,
C. E. Horne,
Secretary and
Chief Financial Officer
CEH/rr
Enclosure
P. S. Please return a copy of this letter stamped with your receipt date.
I have enclosed a stamped, self-addressed envelope for this purpose.
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 JUNE 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 JUNE 30, 1995
Common Stock, No Par Value 2,688,605 Shares
FARM FISH, INC.
INDEX
PAGE
PART I FINANCIAL INFORMATION
Consolidated Condensed Balance Sheets
June 30, 1995 and December 1
Consolidated Condensed Statements of Operations
Three Months and Six Months Ended
June 30, 1995 and 1994 2
Consolidated Condensed Statements of Cash Flows
Six Months Ended June 30, 1995 and 1994 3
Notes to Consolidated Condensensed
Financial Statements 4
Management's Discussion and Analysis of Financial
Condition and Results of Operations 5,6
PART II OTHER INFORMATION 7,8
- 1 -
PART 1 FINANCIAL INFORMATION
FARM FISH, INC.
CONSOLIDATED CONDENSED BALANCE SHEETS
JUNE 30, 1995 (UNAUDITED) AND DECEMBER 31, 1994
JUNE 30 DEC. 31
1995 1994
----------- -------
(UNAUDITED) (*NOTE)
ASSETS
CURRENT ASSETS
Cash $ 113,729 $ 96,864
Accounts Receivable - Net 365,948 165,830
Inventories - Note 2 3,637,543 3,688,944
Prepaid Expenses 9,860 12,034
--------- ---------
Total Current Assets 4,127,080 3,963,672
PROPERTY, PONDS, AND EQUIPMENT - NET 2,201,044 2,269,459
OTHER ASSETS 764,069 589,865
--------- ---------
TOTAL ASSETS $7,092,193 $6,822,996
LIABILITIES AND STOCKHOLDER'S EQUITY
CURRENT LIABILITIES
Accounts Payable $ 52,677 $ 25,248
Advances Payable to Shareholder
& Current Maturities 2,439,481 2,901,034
Other Accrued Expenses and Payable 609,428 117,581
--------- ---------
Total Current Liabilities 3,101,586 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 June 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) (1,484,177) (1,904,979)
--------- ---------
Total Stockholder's Equity 3,415,935 2,995,133
--------- ---------
TOTAL LIABILITIES AND STOCKHOLDERS'
EQUITY $7,092,193 $6,822,996
========== ==========
*See accompanying notes to consolidated condensed financial statements
- 2 -
FARM FISH, INC.
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
(UNAUDITED)
FOR THREE MONTHS AND SIX MONTHS ENDED JUNE 30, 1995 AND 1994
THREE MONTHS ENDED SIX MONTHS ENDED
JUNE 30 JUNE 30
------------------ ----------------
1995 1994 1995 1994
NET SALES $ 932,601 $753,959 $1,742,112 $1,606,261
OTHER INCOME 248,542 137,468 394,821 228,346
-------- -------- --------- ---------
1,181,143 891,427 2,136,933 1,834,607
COST AND EXPENSES
Cost of Sales 743,219 646,913 1,333,485 1,242,088
Selling, General, and
Administrative Expense
Other Than Interest 38,632 43,004 78,929 89,463
Interest 23,558 25,898 45,853 54,695
------- ------- -------- -------
Total Cost and Expenses 805,409 715,815 1,458,267 1,386,246
------- ------- --------- ---------
INCOME BEFORE INCOME TAXES 375,734 175,612 678,666 448,361
INCOME TAX EXPENSE 141,367 65,168 257,864 166,085
NET INCOME 234,367 110,444 420,802 282,276
======== ======== ======== ========
WEIGHTED AVERAGE NUMBER OF
COMMON SHARES OUTSTANDING
(Primary and assuming
full Dilution) 2,688,605 2,688,605 2,688,605 2,688,605
--------- --------- --------- ---------
NET INCOME PER SHARE $0.09 $0.04 $0.16 $0.10
========= ========= ========= =========
See accompanying notes to consolidated condensed financial statements
- 3 -
FARM FISH, INC.
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
(UNAUDITED)
FOR SIX MONTHS ENDED JUNE 30, 1995 AND 1994
SIX MONTHS ENDED
JUNE 30
----------------
1995 1994
NET CASH PROVIDED BY OPERATING ACTIVITIES $627,862 $521,984
INVESTING ACTIVITIES
Purchase of Equipment (49,443) (94,047)
Decrease (Increase) in Other Assets 0 (4,284)
NET CASH PROVIDED (USED) IN INVESTING ACTIVITIES (49,443) (98,331)
FINANCING ACTIVITIES
Proceeds from Borrowing 190,000 0
Principal Payments on Borrowing (350,730) (500,000)
Advances from Shareholders 0 34,822
Payments on Shareholders Advances (400,824) 0
NET CASH PROVIDED (USED) IN FINANCING ACTIVITIES (561,554) (465,178)
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 16,865 (41,525)
Cash and Cash Equivalents at Beginning of Period 96,864 82,673
CASH AND CASH EQUIVALENTS AT END OF PERIOD $113,729 $41,148
See accompanying notes to consolidated condensed financial statements
- 4 -
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 interim 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
principles 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 six-month period ended June 30, 1995 are not necessarly indicative of the
results that may be expected for the year ended December 31, 1995. For
further information refer to the consolidated financial statements and
footnotes thereto included in the Company's Annual Report on Form 10-K for
the year ended December 31, 1994.
NOTE 2: INVENTORIES
The components of inventory consist of the following:
JUNE 30 DEC. 31
1995 1994
---------- ----------
Live Fish $3,608,418 $3,661,061
Feed and Supplies 29,124 27,883
---------- ----------
TOTAL INVENTORY $3,637,542 $3,688,944
NOTE 3: INCOME TAXES
The effective income tax rate for the quarter ended June 30, 1995 and
June 30, 1994 differ from the statutory federal income tax rate due to
state income taxes.
- 5 -
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
SIX MONTHS ENDED JUNE 30, 1995 COMPARED TO SIX MONTHS ENDED JUNE 30, 1994
During the six months period ended June 30, 1995, Farm Fish, Inc.
made a profit (before tax) of $678,666 compared to $448,361 for the
same period in 1994. Net sales were up $136,000 or 8% for the
current six months compared to the first six months of last year.
The increase in profit is directly attributable to a 13% increase
in the sales unit price of food fish per pound from $.71 last year
to $.80 for the current six months.
Cost of sales was 77% of food fish sales for the current six months
compared to 72% of sales for the same period last year. Included in
cost of sales this period was $201,000 for fingerlings sold. These
sales of $327,200 were included in "Other Income".
Selling, general administrative, and interest expenses were 6.4% of
sales this period compared to 9.0% of sales for the same six months
of 1994. Other income was up $166,000 this period over last year,
thus off-setting most of the increase in cost of sales.
THREE MONTHS ENDED JUNE 30, 1995 COMPARED TO SIX MONTHS ENDED JUNE 30, 1994
Net profit (before tax) for the current quarter was $375,734
compared to $175,612 for the second quarter of 1994. An increase in
current quarter sales of $179,000 and $.09 increase in net selling
price per pound of food fish over the same quarter in 1994 accounted
for most of the increase in current quarter profit.
Cost of sales was 80% of net food fish sales for the second quarter
of 1995 compared to 75% for the same quarter of last year. Selling,
general, administrative, and interest expenses were 7% of net sales
this period compared to 9% for the same three months of 1994.
-6-
FARM FISH, INC.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Continued
LIQUIDITY AND CAPITAL RESOURCES
As of June 30, 1995 current assets exceeded current liabilities by
$1,025,494 compared to $680,057 for the same period ended June
30, 1994. Most of this change was a net increase in inventories
of $540,000.
Delta Industries, Inc. made no payments for the company during the
current six months period compared to $34,800 paid (mostly legal,
audit, and insurance expense) for the same period in 1994.
Farm Fish, Inc. had an available line of credit of $410,000 with a
local bank as of June 30, 1995, compared to $600,000 available as of
June 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.
- 7 -
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
The Annual Meeting of the Stockholders for Farm Fish, Inc., was
held May 25, 1995, with the election of T. L. Reed III, Thomas R.
Slough, Jr., Leland R. Speed, and W. D. Mounger as directors. The
annual report for 1994 and all actions of the officer and directors
of the corporation were adopted and approved.
ITEM 6 - EXHIBIT AND REPORT ON FORM 8-K
Exhibit 27 - Financial Data Schedule - (Page 8 Attached)
There were no report on Form 8-K for the quarter ended June 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)
August 10, 1995
--------------- -----------------------
Date C. E. Horne, Secretary
and Chief Financial Officer
- 8 -
FARM FISH, INC.
ARTICLE Financial Data Schedule
Exhibit 27
Fiscal Year End 12/31/95
Period End 06/30/95
Period Type 10-QSB
Cash $ 113,729
Securities 764,069
Receivables 365,948
Allowances 0
Inventory 3,637,543
---------
Current Assets 4,127,080
P P & E 2,201,044
Depreciation 117,858
---------
Total Assets $7,092,193
Current Liabilities $3,101,586
Multiplier 1
Currency U S Dollars
