May 12, 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 March 31, 1995
Gentlemen:
Pursuant to the requirements of Securities Exchange Act of 1934, we are
transmitting herewith the attached Form 10-QSB for the quarter ended
March 31, 1995.
Sincerely,
C. E. Horne,
Secretary and
Chief Financial Officer
CEH/rr
Enclosure
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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 MARCH 31, 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 AT MARCH 31, 1995
Common Stock, No Par Value 2,688,605 Shares
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FARM FISH, INC.
INDEX
PART I FINANCIAL INFORMATION PAGE
Consolidated Condensed Balance Sheets
March 31, 1995 and December 31, 1994 1
Consolidated Condensed Statement of Operations
Three Months Ended March 31, 1995 and 1994 2
Consolidated Condensed Statement of Cash Flows
Three Months Ended March 31, 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
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PART I FINANCIAL INFORMATION
FARM FISH, INC.
CONSOLIDATED CONDENSED BALANCE SHEETS
MARCH 31, 1995 (UNAUDITED) AND DECEMBER 31, 1994
MARCH 31, DEC. 31,
1995 1994
ASSETS (Unaudited) (*Note)
CURRENT ASSETS
Cash $ 133,039 $ 96,864
Accounts Receivable - Net 138,968 165,830
Inventories - Note 2 3,460,412 3,688,944
Prepaid Expenses 13,186 12,034
Total Current Assets 3,745,605 3,963,672
PROPERTY, PONDS, AND EQUIPMENT - NET 2,214,019 2,269,459
OTHER ASSETS 764,069 589,865
TOTAL ASSETS $6,723,693 $6,822,996
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts Payable $ 13,953 $ 25,248
Advances Payable to Shareholder &
Current Maturities 2,328 810 2,901,034
Other Accrued Expenses and Payable 524,690 117,581
Total Current Liabilities 2,867,453 3,043,863
LONG TERM DEBT, Less Current Maturities 670,000 670,000
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 March 31,
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) (1,718,544) (1,904,979)
Total Stockholders' Equity 3,181,568 2,995,133
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $6,723,693 $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 THE MONTHS ENDED MARCH 31, 1995
THREE MONTHS ENDED
MARCH 31
1995 1994
NET SALES $ 809,511 $ 852,302
OTHER INCOME 146,279 90,878
955,790 943,180
COST AND EXPENSES
Cost of Sales 590,266 595,175
Selling, General, and Administrative Expense
Other Than Interest 40,297 46,459
Interest 22,295 28,797
Total Cost and Expenses 652,858 670,431
INCOME BEFORE INCOME TAXES 302,932 272,749
INCOME TAX EXPENSE 116,497 100,917
NET INCOME $ 186,435 $ 171,832
WEIGHTED AVERAGE NUMBER OF COMMON SHARES
OUTSTANDING
(Primary and assuming full Dilution) 2,638,605 2,638,605
NET INCOME PER SHARE $ 0.07 $ 0.07
See accompanying notes to consolidated condensed financial statements
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FARM FISH, INC.
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOW
(UNAUDITED)
FOR THE THREE MONTHS ENDED MARCH 31, 1995 AND 1994
THREE MONTHS ENDED
MARCH 31
1995 1994
NET CASH PROVIDED BY OPERATING ACTIVITIES $ 609,433 $ 481,930
INVESTING ACTIVITIES
Purchase of Equipment (1,034) (67,749)
Decrease (Increase) in Other Assets 0 (982)
NET CASH PROVIDED (USED) IN INVESTING ACTIVITIES (1,034) (68,731)
FINANCING ACTIVITIES
Proceeds from Borrowing 0 0
Principal Payments on Borrowing 120,000 (500,000)
Advances from Shareholders (350,730) 16,669
Payments on Shareholders Advances (341,494) 0
NET CASH PROVIDED (USED) IN FINANCING ACTIVITIES (572,224) (483,331)
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 36,175 (70,132)
Cash and Cash Equivalents at Beginning of Period 96,864 82,673
CASH AND CASH EQUIVALENTS AT END OF PERIOD $ 133,039 $ 12,541
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
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 three-
month period ended March 31, 1995 are not necessary 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:
March 31 Dec. 31
1995 1994
Live Fish $3,438,788 $3,661,061
Feed and Supplies 21,624 27,883
TOTAL INVENTORY $3,460,412 $3,688,944
NOTE 3: INCOME TAXES
The effective income tax rate for the quarter ended March 31, 1995 and March
31, 1994 differ from the statutory federal income tax rate due to state
incomes taxes.
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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
During the three month period ended March 31, 1995, Farm Fish, Inc.
made a profit before taxes of $302,932 compared to $272,749 profit
for the same period in 1994. Increase in profit of $30,183 was due
mainly to a 13% increase in the unit price of food fish sold for
the current three months compared to the same period in 1994.
Cost of sales was 73% of sales for the current quarter compared to
the 70% of sales for the first quarter in 1994. The price of live
fish sold for the current quarter averaged $.80 per pound compared
to $.70 per pound for the same quarter in 1994. Fingerling sales
were $88,000 for the current quarter compared to no sales for same
quarter last year.
The average production cost of fish for the first quarter this year
was $.51 per pound compared to $.50 average production cost per pound
for the same quarter last year.
The company had other income (dividends from feed cooperative) of
$59,000 for the current quarter while other income for the first
quarter of last year was $91,000.
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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 March 31, 1995 current assets exceeded current liabilities by
$878,000 compared to $747,000 working capital for the same period
ended March 31, 1994. Most of this change was a net decrease in
advances payable to shareholders and current maturities of $572,000.
Delta Industries, Inc. made no payments for the company during the
current three months period compared to $16,700 paid (mostly legal,
audit, and insurance expense) for the same period in 1994.
Farm Fish, Inc. had an available line of credit of $480,000 with a
local bank as of March 31, 1995, compared to $600,000 available as
of March 31, 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 in 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 I 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 were no stockholders meeting held during the quarter ended March 31,
1995.
ITEM 6 - EXHIBIT AND REPORT ON FORM 8-K
There were no reports on Form 8-K for the quarter ended March 31, 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)
May 10, 1995 ___________________________
Date C. E. Horne, Secretary
and Chief Financial Officer
