Securities and Exchange Commission
Washington D.C. 20549
Form 10-KSB
Annual Report under Section 13 or 15(d) of the Securities Exchange Act of 1934
For the fiscal year ended December 31, 1995 Commission file number 0-7320
FARM FISH, INC. (Name of small business issuer in its charter)
MISSISSIPPI 64-0474591
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification Number)
Post Office Box 23109 39225-3109
Jackson, MS Zip-Code
(Address of principal executive offices)
Registrant's telephone number, including area code (601) 354-3801
Securities Registered under Section 12(g) of the Exchange Act:
No-Par Common Stock (Title of Class)
Check whether issuer (1) 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 [ ]
Check if there is no disclosure of delinquent filers in response to Item 405
of Regulation S-B contained in this form, and no disclosure will be
contained, to the best of registrant's knowledge, in definitive proxy or
information statements incorporated by reference in Part III of this Form
10-KSB or any amendment to this Form 10-KSB. [ X ]
Revenues for the year ended December 31, 1995 were $3,847,173.
Aggregate market value of voting stock held by non-affiliates of the
Registrant as of March 15, 1996 Indeterminate. *
(2,688,605 shares issued and outstanding as of March 15, 1996)
DOCUMENTS INCORPORATED BY REFERENCE
Portions of the definitive Proxy Statement to be mailed to the shareholders
of Registrant in connection with the Annual Meeting of Shareholders to be
held on May 22, 1996 are incorporated by reference into Part III of this
Form 10-KSB.
__________________________
* For purposes of the response to this item only, Delta Industries, Inc.
and all directors of the Registrant have been deemed affiliates of the
Registrant.
* The Registrant has been advised by two broker sources who have heretofore
traded in the stock of the Registrant that there is insufficient basis for
establishing a market value.
FARM FISH, INC.
FORM 10-KSB
Table of Contents
Item Page(s)
Part I
1. Description of Business 5-6
2. Description of Property 7
3. Legal Proceedings 7
4. Submission of Matters to 7
a Vote of Security Holders
Part II
5. Market for Registrant's 8
Common Stock and Related
Stockholder Matters
6. Management's Discussion and 9-10
Analysis of Financial Condition
and Results of Operations
7. Financial Statements 11-21
8. Changes In and Disagreements with 7
Accountants on Accounting and
Financial Disclosure
Part III
9. Directors, Executive Officers, Incorporated by Reference
Promoters and Control Persons; Compliance Pursuant to General
With Section 16(a) of the Exchange Act Instruction E
10. Executive Compensation Incorporated by Reference
Pursuant to General
Instruction E
11. Security Ownership of Incorporated by Reference
Certain Beneficial Pursuant to General
Owners and Management Instruction E
12. Certain Relationships Incorporated by Reference
and Related Transactions Pursuant to General
Instruction E
13. Exhibits and Reports on Form 8-K 22
The Officers of Farm Fish, Inc.
Name Office
Leland R. Speed Chairman of the Board of Directors
Thomas R. Slough, Jr. President
David Robison Vice-President
Charles E. Horne Secretary-Treasurer
All officers are elected by the Board of Directors. The term of office is
not fixed.
Members of the Board of Directors
Name Principal Occupation
W. D. Mounger President of Delta Royalty Company, Inc.,
(engaged generally in the oil and gas business)
T. L. Reed, III Owner of Silver Creek Plantation (engaged
in agri-business operations)
Thomas R. Slough, Jr. Vice-Chairman of Delta Industries, Inc.
(engaged in marketing ready-mix concrete)
Leland R. Speed Engaged as an officer and/or director in
various corporations, including EastGroup
Properties and The Parkway Company, which
are engaged in various commercial activities
including general financial matters and
real estate development
The term of office for all directors will expire at the Annual Meeting
scheduled for May 22, 1996.
Description of Business
General
Farm Fish, Inc. engages in the hatching and growing of catfish (generally
referred to as "producing" catfish). The principal executive offices of
Farm Fish are located at 100 W. Woodrow Wilson Drive, Jackson, Mississippi
39213, and its telephone number is (601) 354-3801.
The Catfish Industry
The catfish farming industry has grown rapidly since its inception in the
late 1960's. In 1969, approximately 3.2 million pounds of catfish were sold
to processing plants at an average price of approximately $0.37 per pound.
In 1995, the number of pounds sold to catfish processors had increased to
approximately 447 million pounds, at average prices of approximately $0.78
per pound to $0.79 per pound during the year.
Catfish farming is conducted primarily in Alabama, Arkansas, Louisiana and
Mississippi, with Mississippi dominating the industry.
Farm Fish's Operations
Farm Fish's primary production assets are brood ponds, a hatchery, fingerling
ponds and production ponds. The life cycle of a farm-raised catfish begins
in a brood pond, where the eggs ("spawn") are laid and fertilized. The spawn
is then retrieved and taken to the hatchery, where it is placed in water-
filled troughs which are continuously monitored to ensure the water is
aerated and kept at the proper temperature. The hatchery operates for
approximately two months each year, usually from mid-May to mid-July.
The newly hatched catfish, called "fry", are kept in the hatchery briefly and
are then transported to a fingerling pond where they remain until they are
one to two inches in length, at this stage the catfish are referred to as
"fingerlings". Some of the fingerlings may be sold to other catfish farmers,
but typically most are kept and used to stock the farm's production ponds.
The catfish are fed until they reach marketable size (usually one to one-and-
a-half pounds) and harvested with seines.
The catfish are fed a commercially prepared feed consisting of soybeans,
corn, wheat and fishmeal. The catfish are fed from approximately mid-March
through the end of October each year. Little food is supplied to the catfish
during the winter months.
Farm Fish conducts its business at its catfish farm in Humphreys County,
Mississippi. The farm consists of approximately 1,750 acres of land, of
which approximately 1,375 acres are devoted to mostly 20 acre ponds. The
farm is a complete facility for producing "farm-raised" catfish, with brood
ponds, a hatchery, fingerling ponds and production ponds.
Processing and Marketing
Farm Fish sold its processing operations in March 1986 and no longer engages
in processing live fish or marketing processed products.
Significant Customers
During 1995, approximately 56% of Farm Fish's live fish production was sold
to one catfish processor Delta Pride Catfish, Inc. ("Delta Pride"). Delta
Pride is a cooperative. Farm Fish had the option through June 30, 1993, but
not the obligation, to purchase 1,100 shares of stock in Delta Pride at a
price of $600 per share. Pursuant to an agreement entered into in 1993
between the Company and Delta Pride, the option period was extended through
January 1, 1995. During 1994, the Company applied retained patronage
dividends of $86,400 to the purchase of 144 shares of Delta Pride stock.
Options on the remaining 956 shares expired unused.
Competition
There are a substantial number of independent catfish producers in the
general market area. Of these, Farm Fish is one of the larger producers of
live fish. Competition among catfish farmers who produce live fish for sale
to catfish processors is based primarily on price. Production techniques are
becoming more sophisticated as the industry matures, and farmers who take
advantage of the emerging technology in areas such as the maintenance of
high water quality may develop a competitive advantage in terms of cost
efficiency.
Farm Fish Personnel
On December 31, 1995, Farm Fish employed approximately 22 employees, all of
whom were engaged in duties related to its catfish farming operations.
Industry Segments
Since the sale of its processing operations in 1986, Farm Fish has operated
in only one industry segment, ("catfish production").
Description of Property
Farm Fish owns nearly 1,750 acres of farmland in Humphreys County,
Mississippi, near the town of Louise. Most of this land is devoted to the
ponds, to the banks and levees, which surround and separate the ponds, and to
various service and storage areas. Farm Fish, Inc. has long-term borrowing
financed with a bank totaling $670,000 at December 31, 1995, secured by
substantially all of Farm Fish's assets and the guaranty of Delta Industries,
Inc. ("Delta Industries"). See Note 4 to the Consolidated Financial
Statements.
Inventory
Farm Fish owns a substantial inventory of harvestable and growing
fingerlings, and during the spring of the year owns a substantial inventory
of spawn and fry. These catfish are located at the hatchery and in the
fingerling and production ponds on the catfish farm in Humphreys County,
Mississippi. The book value of the live fish inventory as of December 31,
1995 was $3,694,843.
Brood Fish
Farm Fish also owns "brood" fish which are located in the brood fish ponds on
the catfish farm in Humphreys County, Mississippi. The book value of the
brood fish as of December 31, 1995 was $44,987.
Legal Proceedings
As of March 15, 1996, there were no material legal proceedings pending or
threatened against Farm Fish, Inc.
Submission of Matters to a Vote of Security Holders
None.
Changes In and Disagreements with Accountants
on Accounting and Financial Disclosure
None.
Market for Registrant's Common Stock and
Related Stockholder Matters
The authorized capital stock of Farm Fish consists of 5,000,000 shares of
common stock. The 2,688,605 issued and outstanding shares of Farm Fish's
stock are held of record by approximately 1,866 stockholders. Although Farm
Fish common stock is registered under the Securities Exchange Act of 1934,
there is no readily ascertainable market value for the stock, since the stock
is not traded on any exchange, is traded infrequently over the counter, and
is not quoted in any newspaper. The stock is listed in the "pink sheets"
under the symbol "FFIH". Farm Fish has been advised by broker sources who
have heretofore traded in the stock of Farm Fish that there is insufficient
basis for establishing a market value.
Holders of Farm Fish common stock have one vote for each share held and are
entitled to accumulate their votes for the election of directors. Shares of
common stock are not subject to redemption and the holders of such shares do
not have preemptive rights. Holders of shares of common stock are entitled
to share ratably in the assets of Farm Fish legally available for
distribution to holders of common stock in the event of the liquidation,
dissolution or winding up of Farm Fish. The holders of common stock are
equally entitled to dividends when, as and if declared by the Board of
Directors.
Dividends
No cash dividend has been paid to Farm Fish since May 1, 1982. Any payment
of dividends in the future will depend upon Farm Fish's growth,
profitability, available cash, financial condition and other factors that the
Board of Directors deems relevant.
Management's Discussion and Analysis of Financial
Condition and Results of Operations
Comparison of 1995 to 1994 Results of Operations
Net sales increased by $380,618 or 11% over 1994. The increase resulted from
a 3.7% increase in the average selling price of catfish, and a 298,880 or 7%
increase in pounds of catfish sold.
Cost of product sold increased $499,807 or 22% as the result of an increase
in the average cost per pound of product sold from $.55 in 1994 to $.61 in
1995, and the 298,880 increase in pounds of catfish sold. The increase in
the average cost per pound sold is due to increased fingerling sales as a
percentage of total sales in 1995 which are at a higher cost per pound and
due to an increase in mortality in 1995.
Selling, general, and administrative expenses decreased $13,653 or 10% from
1994. The decrease was principally due to a decrease in certain professional
fees.
Interest expense decreased $40,880 or 35.7% due to a decrease in average
borrowings.
The effective income tax rate was 36.7% in 1995 compared to 37.7% in 1994.
As the result of the above, net income decreased by $79,309 to $483,124 in
1995.
Seasonality of Operating Results
In prior years, the revenues of Farm Fish have been seasonal and cyclical.
Prices for live fish have tended to rise during the first part of the year
and drift downward during the summer, only to rise again in September and
October and fall in November and December before beginning the annual price
cycle again. However, in 1994 prices continued to rise during the year, and
in 1995 prices were consistent throughout the year.
Liquidity and Capital Resources
In June 1993, Farm Fish refinanced its outstanding debt with long-term
borrowings and a line of credit from a bank. The principal balance with
respect to the long-term debt was $670,000 at December 31, 1995. The Company
had $600,000 available under the line of credit at December 31, 1995 . The
long-term borrowings and borrowings under the line of credit bear interest at
prime plus 1.5% and prime plus 1%, respectively, and are collateralized by
substantially all the assets of Farm Fish and the guaranty of Delta
Industries, Inc. ("Delta Industries").
Notwithstanding Farm Fish's improved financial position, additional
borrowings may be necessary to meet cash flow needs during the 1996 feeding
season. Although there is no binding commitment from Delta Industries, Farm
Fish expects Delta Industries to continue its prior policy with respect to
assisting Farm Fish in financing its operations, in light of Delta
Industries' ownership of eighty percent (80%) of Farm Fish stock. Delta
Industries also has represented that it plans to seek repayment of the
$2,115,389 owed to it by Farm Fish as of December 31, 1995 only as cash
becomes available from operations.
During 1995, Farm Fish used net cash provided by operating activities of
$853,373 and available cash principally to purchase $149,592 of property,
buildings and equipment, to reduce borrowings under the line of credit and
long-term borrowing by $350,729, and to reduce the payable to shareholder by
$434,916.
At year-end 1994, Farm Fish's ratio of current assets to current liabilities
was 1.30 to 1 and its ratio of stockholders' equity to total liabilities was
.78 to 1. At year-end 1995, Farm Fish's ratio of current assets to current
liabilities was 1.69 to 1 and its ratio of stockholders' equity to total
liabilities was 1.15 to 1.
Inflation
Farm Fish's operations are sensitive to changes in the cost of feed and the
market price of live fish. As with other agricultural enterprises, these
prices are responsive to the wide range of conditions generally affecting
crop prices and food prices, and are not within Farm Fish's control.
FARM FISH, INC.
CONSOLIDATED FINANICAL STATEMENTS
YEARS ENDED DECEMBER 31, 1995 AND 1994
Contents
Report of Independent Auditors 12
Audited Consolidated Financial Statements
Consolidated Balance Sheets 13
Consolidated Statements of Income 14
Consolidated Statements of Shareholders' Equity 15
Consolidated Statements of Cash Flows 16
Notes to Consolidated Financial Statements 17
Report of Independent Auditors
The Board of Directors and Shareholders
Farm Fish, Inc.
We have audited the accompanying consolidated balance sheets of Farm Fish,
Inc. and subsidiary as of December 31, 1995 and 1994, and the related
consolidated statements of income, shareholders' equity, and cash flows for
the years then ended. These financial statements are the responsibility of
the Company's management. Our responsibility is to express an opinion on
these financial statements based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free
of material misstatement. An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial statements.
An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the consolidated financial position of Farm Fish, Inc.
and subsidiary at December 31, 1995 and 1994, and the consolidated results of
their operations and their cash flows for the years then ended, in conformity
with generally accepted accounting principles.
Ernst & Young LLP
Jackson, MS
February 9, 1996
FARM FISH, INC.
CONSOLIDATED BALANCE SHEETS
December 31
1995 1994
Assets
Current Assets:
Cash $ 22,231 $ 96,864
Accounts receivable 202,873 165,830
Advances to employees 7,626 12,034
Inventories, principally live fish (Note 4) 3,721,339 3,688,944
Total current assets 3,954,069 3,963,672
Property, buildings and equipment (Note 4):
Land 716,839 716,839
Ponds and improvements 1,982,895 1,963,621
Brood fish 44,987 44,987
Buildings 316,040 298,738
Machinery and equipment 1,897,539 1,793,536
4,958,300 4,817,721
Accumulated depreciation 2,779,909 2,548,262
2,178,391 2,269,459
Other assets:
Investments in cooperatives (Notes 3 and 4) 375,723 586,424
Other noncurrent assets 1,632 3,441
377,355 589,865
Total assets $6,509,815 $6,822,996
Liabilities and shareholders' equity
Current liabilities:
Note payable (Note 4) $ 0 $ 250,729
Accounts payable 10,801 25,248
Accrued expenses 112,368 117,581
Payable to shareholder (Note 2) 2,115,389 2,550,305
Current maturities of long-term debt 100,000 100,000
Total current liabilities 2,338,558 3,043,863
Long-term debt, less current maturities (Note 4) 570,000 670,000
Deferred income taxes (Note 5) 123,000 114,000
Shareholders' equity (Note 2):
Common stock, no par value:
Authorized shares 5,000,000
Issued and outstanding shares 2,688,605 4,424,336 4,424,336
Additional paid-in capital 475,776 475,776
Retained earnings (deficit) (1,421,855) (1,904,979)
Total shareholders' equity 3,478,257 2,995,133
Total liabilities and shareholders' equity $6,509,815 $6,822,996
See accompanying notes.
FARM FISH, INC.
CONSOLIDATED STATEMENT ON INCOME
Year ended December 31
1995 1994
Net sales (Note 3) $3,847,173 $3,466,555
Cost and expenses:
Cost of products sold 2,786,361 2,286,554
Selling, general and administrative 119,673 133,326
Interest 73,589 114,477
Other (Note 3) 103,803 28,720
3,083,426 2,563,077
Income before income taxes 763,747 903,478
Income taxes (Note 5) 280,623 341,045
Net income $ 483,124 $ 562,433
Net income per share $ .18 $ .21
Weight average shares outstanding 2,688,605 2,688,605
See accompanying notes.
FARM FISH, INC.
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY
Additional Retained Total
Common Paid-in Earnings Shareholders'
Stock Capital (Deficit) Equity
Balance at December 31, 1993
$4,424,336 $475,776 $(2,467,412) $2,432,700
Net income for 1994
0 0 562,433 562,433
Balance at December 31, 1994
4,424,336 475,776 (1,904,979) 2,995,133
Net income for 1995
0 0 483,124 483,124
Balance at December 31, 1995
$4,424,336 $475,776 $(1,421,855) $3,478,257
See accompanying notes.
FARM FISH, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
Year ended December 31
1995 1994
Operating activities
Net income $ 483,124 $ 562,433
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation 234,043 222,589
Gain on sale of equipment (614) (5,643)
Deferred income taxes 9,000 5,000
Changes in operating assets and liabilities:
Increase in accounts receivable and advances
to employees (32,635) (55,032)
Increase in inventories (32,395) (447,955)
Net decrease in investments in cooperatives 210,701 194,673
Decrease in other assets 1,809 624
Increase (decrease) in trade accounts payable and
accrued expenses (19,660) 3,118
Net cash provided by operating activities 853,373 479,807
Investing activities
Purchases of property, buildings and equipment (149,592) (192,519)
Proceeds from sale of equipment 7,231 7,000
Purchases of stock in cooperatives 0 (466,125)
Net cash used in investing activities (142,361) (651,644)
Financing activities
Proceeds from borrowings 0 450,000
Principal payments on borrowings (350,729) (699,271)
Net change in payable to shareholder (434,916) 435,299
Net cash provided by (used in) financing activities (785,645) 186,028
Increase (decrease) in cash (74,633) 14,191
Cash at beginning of year 96,864 82,673
Cash at end of year $ 22,231 $ 96,864
See accompanying notes.
FARM FISH, INC.
NOTES TO CONSOLIDATED FINANCIAL STATMENTS
DECEMBER 31, 1995
1. Accounting Policies
Business
Farm Fish, Inc. ("the Company") is engaged in catfish farming on
approximately 1,375 water acres within the State of Mississippi. Catfish
farming is conducted in a few southern states, principally Mississippi,
Louisiana, Alabama and Arkansas. The Company's sales are to a limited number
of processors. In 1995, three processors represented 56%, 22%, and 13% of
the Company's net sales. In 1994, three processors represented 40%, 24% and
16% of the Company's net sales. Delta Pride Catfish, Inc. ("Delta Pride") is
the Company's most significant customer. The Company's significant customers
are located within the state of Mississippi. Processed catfish are sold
principally to retail grocery stores, food brokers and restaurants.
Principles of Consolidation
The consolidated financial statements include the accounts of the Company and
its wholly-owned subsidiary, DAT, Inc. All significant intercompany accounts
and transactions have been eliminated in consolidation.
Inventories
Inventories are stated at the lower of average cost or market. Live fish
inventories generally require a growing period of one to one and one-half
years from the time the fingerlings are hatched until they reach a weight
that fish are typically harvested. Because the Company's production cycle
for fish generally exceeds one year, management anticipates certain live fish
inventories on hand at December 31, 1995 may not be sold in 1996. Live fish
inventories are classified as a current asset in the accompanying balance
sheets which is consistent with the industry practice.
The quantities of live fish inventories are determined based upon estimated
growth from feed fed to each pond and are reduced for the actual quantities
sold and estimated mortality. Each pond is closed periodically and the
estimated pounds are adjusted to the actual harvest. Live catfish are highly
susceptible to disease, oxygen depletion and extreme temperatures which could
result in high mortality. Management continually monitors each pond and
takes appropriate actions to minimize the risk of loss from mortality.
Given the nature of the live fish inventories, it is reasonably possible that
the Company's actual live fish mortality will vary significantly from
estimates. The Company changed its estimate of fish grow-out in 1995
resulting in a $269,000 increase in cost of products sold and a $170,000
decrease in net income or $.06 per share during the year ended December 31,
1995.
Property, Buildings and Equipment
Property, buildings, and equipment are stated at cost. Depreciation is
provided by the straight-line method over the assets' estimated useful lives.
Income Taxes
Income taxes have been provided using the liability method in accordance with
FASB No. 109, "Accounting for Income Taxes".
Net Income Per Share
Net income per share is based on the average number of shares of common stock
outstanding during each year. There are no common stock equivalents.
Use of Estimates
The preparation of the financial statements in conformity with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the amounts reported in the financial statements and
accompanying notes. Actual results may differ from those estimates.
Impact of Recently Issued Accounting Standards
In March 1995, the FASB issued Statement No. 121, Accounting for the
Impairment of Long-Lived Assets and for Long-Lived Assets the Be Disposed Of,
which requires impairment losses to be recorded on long-lived assets used in
operations when indicators of impairment are present and the undiscounted
cash flows estimated to be generated by those assets are less than the
assets' carrying amount. Statement 121 also addresses the accounting for
long-lived assets that are expected to be disposed of. The Company will
adopt Statement 121 in the first quarter of 1996 and, based on current
circumstances, does not believe the effect of adoption will be material.
2. Shareholders' Equity and Related Party Transactions
In September 1984, the Company issued in a private offering 1,903,104 shares
of common stock to Delta Industries, Inc. ("Delta") at $1.25 per share. In
consideration for the stock issued, Delta canceled $2,378,880 of notes and
other amounts receivable from the Company. As a result of this transaction,
the Company became an 80% owned subsidiary of Delta.
At December 31, 1995 and 1994, the Company had non-interest bearing advances
payable to Delta totaling $2,115,389 and $2,550,305, respectively. Delta has
not charged the Company any allocation of Delta's corporate expenses.
3. Investment in Cooperatives
Delta Pride is a cooperative in which the Company had an option to purchase
1,100 shares of stock at a price of $600 per share through June 1993.
Pursuant to an agreement entered into in 1993 between the Company and Delta
Pride, the option period was extended through January 1, 1995. During 1994,
the Company applied retained patronage dividends of $86,400 to the purchases
of 144 shares of Delta Pride stock. Options on the remaining 956 shares
expired unused. The Company owned 1,424 shares of Delta Pride stock at
December 31, 1995 and 1994.
In 1995 and 1994, the Company recorded $188,009 and $139,051, respectively,
of operating losses from Delta Pride which are included in other cost and
expenses in the accompanying consolidated statements of income.
4. Notes Payable and Long-Term Debt
Long-term debt consists of a note payable to a bank, due in annual
installments of $100,000 plus quarterly payments of interest at prime plus
1.5% (8.42% at December 31, 1995), maturing in 1999.
Maturities of long-term debt are as follows:
1996 $100,000
1997 100,000
1998 100,000
1999 370,000
$670,000
Note payable at December 31, 1994 consisted of borrowings under a line of
credit with interest of prime plus 1% (9.5% at December 31, 1994). The
Company had $600,000 available to borrow under the line at December 31, 1995.
Substantially all property, buildings and equipment, inventories and
investments in cooperatives is pledged as collateral to the note payable and
long-term debt.
Interest paid by the Company totaled $74,167 and $103,518 in 1995 and 1994,
respectively.
5. Income Taxes
The Company and its subsidiary are included in Delta's consolidated federal
and state income tax returns. The Company's income tax expense for financial
reporting purposes is determined on a separate company basis. The Company's
income taxes paid to Delta totaled $607,668 in 1995. There were no payments
in 1994.
Deferred income taxes reflect the net tax effects of temporary differences
between the carrying amounts of assets and liabilities for financial
reporting purposes and the amounts used for income tax purposes. The
components of deferred tax assets and liabilities are as follows:
December 31
1995 1994
Deferred tax liabilities Property,
buildings and equipment $ 129,000 $ 119,000
Deferred tax assets Other (6,000) (5,000)
Net deferred tax liabilities $ 123,000 $ 114,000
Income tax expense consists of the following:
Year ended December 31
1995 1994
Current:
Federal $ 235,212 $ 291,075
State 36,411 44,970
271,623 336,045
Deferred:
Federal 8,000 4,600
State 1,000 400
9,000 5,000
$ 280,623 $ 341,045
The reconciliation of income tax computed at the federal statutory rate to
income tax expense is as follows:
Year ended December 31
1995 1994
Statutory federal income tax rate $ 259,674 $ 307,183
State income taxes, net 24,691 29,950
Other net (3,742) 3,912
$ 280,623 $ 341,045
6. Operating Leases
The Company leases five tractors under operating leases which expire in
August 1999. The leases require the Company to pay maintenance, insurance,
and a fee for usage in excess of specified limits in addition to the minimum
annual rentals. Annual rentals applicable to the leases are $18,259 through
August 1999. Rent expense applicable to operating leases totaled $31,080 in
1995 and $0 in 1994.
Exhibits and Reports on Form 8-K
(a) Exhibits Required by Item 601 of Regulation S-B:
3(a) Articles of Incorporation Incorporated by reference from
Form 10-K for year ending
April 30, 1981
3(b) Bylaws Incorporated by reference from
Form 10-K for year ending
April 30, 1981
3(c) Amendment to Bylaws Incorporated by reference from
Form 10-K for year ending
December 31, 1984
3(d) Amendment to Articles of Incorporated by reference from
Incorporation Form 10-K for year ending
December 31, 1984
(10) Material Contracts None
10(a) Asset Purchase Agreement, dated Incorporated by reference from
February 28, 1986 Form 10-K for year ending
December 31, 1985
10(b) Note Agreements Loans from Incorporated by reference from
Deposit Guaranty National Bank, Form 10-K for year ending
dated June 28, 1993 December 31, 1993
27 Financial Data Schedule 29
(b) Reports on Form 8-K None
SIGNATURES
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.
FARM FISH, INC., REGISTRANT
By: /s/ Thomas R. Slough, Jr
Thomas R. Slough, Jr.,
President
DATE: March 25, 1996
Pursuant to the requirements of the Securities Exchange Act of 1934, this
report has been signed below by the following person on behalf of the
Registrant and in the capacity and on the date indicated.
By: /s/ Thomas R. Slough, Jr.
Thomas R. Slough, Jr.,
Director
DATE: March 25, 1996
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, this
report has been signed below by the following person on behalf of the
Registrant and in the capacity and on the date indicated.
FARM FISH, INC., REGISTRANT
By: /s/ David Robison
David Robison,
Vice President
DATE: March 25, 1996
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, this
report has been signed below by the following person on behalf of the
Registrant and in the capacity and on the date indicated.
FARM FISH, INC., REGISTRANT
By: /s/ Charles E. Horne
Charles E. Horne,
Secretary,
Principal Financial Officer
and Principal Accounting
Officer
DATE: March 25, 1996
DIRECTOR'S SIGNATURE PAGE
Pursuant to the requirements of the Securities Exchange Act of 1934, this
report has been signed below by the following person on behalf of the
Registrant and in the capacity and on the date indicated.
By: /s/ W. D. Mounger
W. D. Mounger, Director
DATE: March 25, 1996
DIRECTOR'S SIGNATURE PAGE
Pursuant to the requirements of the Securities Exchange Act of 1934, this
report has been signed below by the following person on behalf of the
Registrant and in the capacity and on the date indicated.
By: /s/ Leland R. Speed
Leland R. Speed, Director
DATE: March 25, 1996
DIRECTOR'S SIGNATURE PAGE
Pursuant to the requirements of the Securities Exchange Act of 1934, this
report has been signed below by the following person on behalf of the
Registrant and in the capacity and on the date indicated.
By: /s/ T. L. Reed, III
T. L. Reed, III, Director
DATE: March 25, 1996
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