FORM 10-QSB/A
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, 1996 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 OF MARCH 31, 1996 2,688,605 SHARES
Common Stock, No Par Value Number of Shares
<PAGE>
FARM FISH, INC.
INDEX
PAGE
PART I FINANCIAL INFORMATION
Consolidated Condensed Balance Sheets
March 31, 1996 and December 31, 1995 1
Consolidated Condensed Statements of Operations
Three Months Ended March 31, 1996 and 1995 2
Consolidated Condensed Statements of Cash Flows
Three Months Ended March 31, 1996 and 1995 3
Notes to the 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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- 1 -
PART I FINANCIAL INFORMATION
FARM FISH, INC.
CONSOLIDATED CONDENSED BALANCE SHEETS
MARCH 31, 1996 (UNAUDITED) AND DECEMBER 31, 1995
MARCH 31, DEC. 31,
1996 1995
--------- -------
(UNAUDITED) (*NOTE)
ASSETS
CURRENT ASSETS
Cash $ 97,760 $ 22,231
Accounts Receivable - Net 445,848 202,873
Inventories - Note 2 3,560,842 3,721,339
Prepaid Expenses 3,584 7,626
---------- ----------
Total Current Assets 4,108,034 3,954,069
PROPERTY, PONDS, AND EQUIPMENT - NET 2,070,175 2,178,391
OTHER ASSETS 735,735 377,355
---------- ----------
TOTAL ASSETS $6,913,944 $6,509,815
========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts Payable $ 3,793 $ 10,801
Advances Payable to Shareholder &
Current Maturities 2,128,637 2,215,389
Other Accrued Expenses and Payable 688,366 112,368
---------- ----------
Total Current Liabilities 2,820,796 2,338,558
LONG TERM DEBT, Less Current Maturities 370,000 570,000
DEFERRED INCOME TAXES 4,672 123,000
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, 1996 and 2,688,605
shares at December 31, 1995. 4,424,336 4,424,336
Additional Paid-In Capital 475,776 475,776
Retained Earnings (Deficit) (1,181,636) (1,421,855)
---------- ----------
Total Stockholders' Equity 3,718,476 3,478,257
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $6,913,944 $6,509,815
========== ==========
*See accompanying notes to consolidated condensed financial statements.
- 2 -
FARM FISH, INC.
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
(UNAUDITED)
FOR THREE MONTHS ENDED MARCH 31, 1996 AND 1995
THREE MONTHS ENDED
MARCH 31
------------------
1996 1995
NET SALES $ 952,936 $ 809,511
OTHER INCOME 94,104 146,279
---------- ----------
1,047,040 955,790
COST AND EXPENSES
Cost of Sales 595,450 590,266
Selling, General, and
Administrative Other Interest 45,775 40,297
Interest 14,565 22,295
---------- ----------
Total Cost and Expense 655,790 652,858
INCOME BEFORE INCOME TAXES 391,250 302,932
INCOME TAX EXPENSE 151,031 116,497
---------- ----------
NET INCOME $ 240,219 $ 186,435
========== ==========
WEIGHTED AVERAGE NUMBER OF COMMON SHARES
OUTSTANDING
(Primary and assuming full Dilution) 2,638,605 2,638,605
NET INCOME PER SHARE $ 0.09 $ 0.07
========== ==========
See accompanying notes to consolidated financial statements.
- 3 -
FARM FISH, INC.
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
(UNAUDITED)
FOR THREE MONTHS ENDED MARCH 31, 1996 AND 1995
THREE MONTHS ENDED
MARCH 31
------------------
1996 1995
NET CASH PROVIDED BY OPERATING ACTIVITIES $ 276,620 $ 609,433
INVESTING ACTIVITIES
Purchase of Equipment (9,754) (1,034)
Decrease (Increase) in Other Assets (4,585) 0
---------- ----------
NET CASH PROVIDED (USED) IN INVESTING
ACTIVITIES (14,339) (1,034)
FINANCING ACTIVITIES
Proceeds from Borrowing 0 0
Principal Payments on Borrowing 200,000 120,000
Advances from Shareholders (13,248) (350,730)
Payments on Shareholders Advances 0 (341,494)
----------- ----------
NET CASH PROVIDED (USED) IN FINANCING
ACTIVITIES (186,752) (572,224)
INCREASE (DECREASE) IN CASH AND CASH
EQUIVALENTS 75,529 36,175
Cash and Cash Equivalents at Beginning
of Period 22,231 96,864
---------- ----------
CASH AND CASH EQUIVALENTS AT END OF PERIOD $ 97,760 $ 133,039
========== ==========
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
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 three-month
period ended March 31, 1996 are not necessarily indicative of the results that
may be expected for the year ended December 31, 1996. 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, 1995.
NOTE 2: INVENTORIES
The components of inventory consist of the following:
MARCH 31, DEC. 31,
1996 1995
--------- ---------
Live Fish $3,531,981 $3,694,842
Feed and Supplies 28,861 26,497
---------- ----------
TOTAL INVENTORY $3,560,842 $3,721,339
NOTE 3: INCOME TAXES
The effective income tax rate for the quarter March 31, 1996 and March 31, 1995
differ from the statutory federal income tax rate due to state income tax.
- 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 earning during the periods included in
the accompanying statement of income:
OPERATING INCOME
During the three month period ended March 31, 1996, Farm Fish, Inc.
made a profit before taxes of $391,250 compared to $302,932 profit
for the same period in 1995. Increase in profit of $88,318 was due
mainly to a 18% increase in the volume of food fish sold for the
current three months compared to the same period in 1995.
Cost of sales was 62% of sales for the current quarter compared to
the 73% of sales for the first quarter of 1995. The price of live
fish sold for the current quarter averaged $.79 per pound compared
to $.80 per pound for the same quarter in 1995. Fingerlings sales,
were $88,000 for the first quarter last year compared to no sales
for current quarter this year.
The average production cost of fish for the first quarter this year
was $.50 per pound compared to $.51 average production cost per pound
for the same quarter last year.
The company had other income (dividends from feed cooperative) of
$79,000 for the current quarter while other income for the first
quarter of last year was $53,000.
- 6 -
FARM FISH, INC.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Continued
LIQUIDITY
As of March 31, 1996 current assets exceeded current liabilities by
$1,287,238 compared to $878,152 for the same period ended March 31,
1995. Most of the change was a net increase in current assets of
$362,000.
Delta Industries, Inc. made no payments for the company during
the three month period this year or for same period in 1995.
Farm Fish, Inc. had an available line of credit of $600,000 with a
local bank as of March 31, 1996, compared to $480,000 available as of
March 31, 1995. 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 or its subsidiary.
ITEM 4 - SUBMISSION OF MATTERS TO A VOTE OS SECURITY HOLDERS
There was no stockholders' meeting held during quarter ended March 31,
1996.
ITEM 6 - EXHIBIT AND REPORT ON FORM 8-K
Exhibit 27 - Financial Data Schedule - (Page 8 Attached)
There was not report on Form 8-K for the quarter ended March 31, 1996.
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 8, 1996 __________________________
- -----------
Date C. E. Horne, Secretary and
Chief Financial Officer
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<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> MAR-31-1996
<CASH> 97,760
<SECURITIES> 735,735
<RECEIVABLES> 445,848
<ALLOWANCES> 0
<INVENTORY> 3,560,842
<CURRENT-ASSETS> 4,108,034
<PP&E> 2,070,175
<DEPRECIATION> 71,584
<TOTAL-ASSETS> 6,913,944
<CURRENT-LIABILITIES> 2,820,796
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 0
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<CGS> 0
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<DISCONTINUED> 0
<EXTRAORDINARY> 0
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<EPS-PRIMARY> 0
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