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, 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 insurer (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 insurers classes of common
equity, as of the latest purchased date.
CLASS OUTSTANDING AS OF MARCH 31, 1997 2,688,605 SHARES
Common Stock, No Par Value Number of Shares
FARM FISH, INC.
INDEX
PAGE
PART I FINANCIAL INFORMATION
Consolidated Condensed Balance Sheets
March 31, 1997 and December 31, 1996 1
Consolidated Condensed Statements of Operations
Three Months Ended March 31, 1997 and 1996 2
Consolidated Condensed Statements of Cash Flows
Three Months Ended March 31, 1997 and 1996 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
- 1 -
PART I FINANCIAL INFORMATION
FARM FISH, INC.
CONSOLIDATED CONDENSED BALANCE SHEETS
MARCH 31, 1997 (UNAUDITED) AND DECEMBER 31, 1997
MARCH 31, DEC. 31,
1997 1996
_____________________________
(UNAUDITED) (*NOTE)
ASSETS
CURRENT ASSETS
Cash $ 37,403 $ 87,687
Accounts Receivable 301,752 174,230
Inventories - Note 2 4,254,924 4,656,796
Prepaid Expenses 7,523 0
---------- ----------
Total Current Assets 4,601,242 4,918,713
PROPERTY, PONDS, AND EQUIPMENT - NET 2,215,484 2,276,003
OTHER ASSETS 327,387 308,662
----------- ----------
TOTAL ASSETS $7,144,113 $7,503,378
========== ==========
LIABILITIES AND STOCKHOLDER'S EQUITY
CURRENT LIABILITIES
Accounts Payable $ 2,205 $ 2,179
Advances Payable to Shareholder &
Current Maturities 2,122,062 2,175,171
Other Accrued Expenses and Payable 481,912 902,123
---------- ---------
TOTAL CURRENT LIABILITIES 2,606,179 3,079,473
LONG TERM DEBT, Less Current Maturities 270,000 270,000
DEFERRED INCOME TAXES 123,000 129,000
STOCKHOLDER'S EQUITY
Common Stock - without par value, authorized
5,000,000 shares, subscribed and issued 2,688,605
shares at stated value at September 30, 1997 and
2,688,605 shares at December 31, 1996 4,424,336 4,424,336
Additional Paid-In Capital 475,776 475,776
Retained Earnings (Deficit) (755,178) (875,207)
--------- ---------
TOTAL STOCKHOLDER'S EQUITY 4,144,934 4,024,905
TOTAL LIABILITIES AND STOCKHOLDER'S EQUITY $7,144,113 $7,503,378
========== ==========
*See accompanying notes to consolidated condensed financial statements.
- 2 -
FARM FISH, INC.
CONSOLIDATED CONDENSED STATEMENT OF OPERATIONS
(UNAUDITED)
FOR THREE MONTHS ENDED MARCH 31, 1997 AND 1996.
THREE MONTHS ENDED
MARCH 31
________________________
1997 1996
NET SALES $ 960,638 $ 952,936
OTHER INCOME 87,693 94,104
--------- --------
1,048,331 1,047,040
COST AND EXPENSES
Cost of Sales 783,253 595,450
Selling, General, and
Administrative Expenses 51,701 45,775
Interest 19,782 14,565
--------- ---------
Total Cost and Expense 854,736 655,790
INCOME BEFORE INCOME TAXES 193,595 391,250
INCOME TAX EXPENSE 73,566 147,232
--------- ---------
NET INCOME $ 120,029 $ 244,018
========= =========
WEIGHTED AVERAGE NUMBER OF
COMMON SHARES OUTSTANDING
(Primary & assuming
full Dilution) 2,638,605 2,638,605
========= =========
NET INCOME PER SHARE $ 0.05 $ 0.09
========= =========
See accompanying notes to consolidated condensed financial statements
- 3 -
FARM FISH, INC.
CONSOLIDATED CONDENSED STATEMENT OF OPERATIONS
(UNAUDITED)
FOR THREE MONTHS ENDED MARCH 31, 1997 AND 1996
THREE MONTHS ENDED
MARCH 31
__________________________
1997 1996
NET CASH PROVIDED BY OPERATING ACTIVITIES $ 524,431 $ 276,620
INVESTING ACTIVITIES
Purchase of Equipment (10,094) (9,754)
Decrease (Increase) in Other Assets 0 (4,585)
-------- --------
NET CASH PROVIDED (USED) IN INVESTING ACTIVITIES (10,094) (14,339)
FINANCING ACTIVITIES
Proceeds from Borrowing 0 0
Principal Payments on Borrowing (505,000) (200,000)
Advances from Shareholders 0 13,248
Payments on Shareholders Advances (53,109) 0
-------- --------
NET CASH PROVIDED (USED) IN FINANCING ACTIVITIES 175,000 (186,752)
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (43,772) 75,529
Cash and Cash Equivalents at Beginning of Period 80,815 22,231
-------- --------
CASH AND CASH EQUIVALENTS AT END OF PERIOD $ 37,043 $ 97,760
======== =========
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 for Form 10-QSB and Rule 10-01
of Regulations 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,
1997 are not necessarily indicative of the results that may be expected for the
year ended December 31, 1997. For further information refer to consolidated
financial statements and footnotes thereto included in the Company's Annual
Report on Form 10-KSB for year ended December 31, 1996.
NOTE 2: INVENTORIES
The components of inventory consist of the following:
MARCH 31, DEC. 31,
1997 1996
_____________________________
Live Fish $4,232,094 $4,635,380
Feed and Supplies 22,830 21,416
--------- ----------
TOTAL INVENTORY $4,254,924 $4,656,796
========== ==========
NOTE 3: INCOME TAXES
The effective income tax rate for the quarter ended March 31, 1997 and March 31,
1996 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 earnings during the periods included
in the accompanying statements of income.
OPERATING INCOME
During the three month period ended March 31, 1997, Farm Fish, Inc.
made a profit before taxes of $193,595 compared to $391,250 profit
for the same period in 1996. This decrease in profit for the current
quarter of $198,000 was due to lower margin on sales with increased
production costs.
The price of live fish sold for the quarter averaged $.73 per pound
compared to $.70 per pound for the same quarter in 1996. No finger-
lings sales were made for the first quarters of 1996 or 1997.
Cost of sales was 83.0% of sales for the current quarter compared to
62.0% of sales for the first quarter of 1996. The average production
cost of fish for the first quarter this year was $.55 per pound
compared to $.49 average production cost per pound for the same
quarter last year. Increase production costs were due to higher
feed costs for the past 12
The company had other income (dividends from feed cooperative) of
$81,000 for the current quarter while other income for the first
quarter of last year was $79,000.
- 6 -
FARM FISH, INC.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Continued
LIQUIDITY
As of March 31, 1997 current assets exceeded current liabilities by
$1,995,063 compared to $1,287,238 for the same period ended March 31,
1996. Most of the change was a net increase in inventories of
$694000.
Delta Industries, Inc. made no payments for the company during the
three month period this year or for the same period in 1996.
Farm Fish, Inc. had an unused line of credit of $500,000 with a
local bank as of March 31, 1997 compared to $600,000 unused as of
March 31, 1996. The local bank has agreed to increase current
line of credit if needed. 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 secured its long-term debt in June 1993, in the amount
of $870,000 with a different bank at a lower rate. 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. Balance of long-term debt was
$270,000 as of March 31, 1997.
GENERAL
FAS 121 was adopted as of 1/1/96 with no impact on financials
anticipated.
- 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
There were no stockholder's meeting held during the quarter ended March 31,
1997.
ITEM 6 - EXHIBIT AND REPORT ON FORM 8-k
Exhibit 27 - Financial Data Schedule - (Page 8 Attached)
There was no report on Form 8-K for the quarter ended March 31, 1997.
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 13, 1997
- -------------------- -----------------------------
Date C. E. Horne, Secretary
and Chief Financial Officer
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<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> MAR-31-1997
<CASH> $ 37,043
<SECURITIES> 327,387
<RECEIVABLES> 301,752
<ALLOWANCES> 0
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<CURRENT-ASSETS> $ 4,601,242
<PP&E> 2,215,484
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