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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 AND EXCHANGE ACT OF 1934
FOR QUARTER ENDED MARCH 31, 1998 COMMISSION FILE NUMBER 07320
FARM FISH, INC.
A MISSISSIPPI CORPORATION E. I. NUMBER 64-0532896
Post Office Box 23109
Jackson, Mississippi 39225-3109
Telephone Number (601) 354-3801
Check whether in 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 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 purchase date.
CLASS OUTSTANDING AS OF MARCH 31, 1998 2,688,605 SHARES
Common Stock, No Par Value Number of Shares
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FARM FISH, INC.
INDEX
PAGE
PART I FINANCIAL INFORMATION ----
Consolidated Condensed Balance Sheets
March 31, 1998 and December 31, 1997 1
Consolidated Condensed Statements of Operations
Three Months Ended March 31, 1998 and 1997 2
Consolidated Condensed Statements of Cash Flows
Three Months Ended March 31, 1998 and 1997 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
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PART I FINANCIAL INFORMATION
FARM FISH, INC.
CONSOLIDATED CONDENSED BALANCE SHEETS
MARCH 31, 1998 (UNAUDITED) AND DECEMBER 31, 1997
MARCH 31, DEC. 31,
1998 1997
----------- -----------
(UNAUDITED) (*NOTE)
ASSETS
CURRENT ASSETS
Cash $ 60,884 $ 50,144
Accounts Receivable 186,146 207,264
Inventories - Note 2 4,771,748 5,067,783
Prepaid Expenses 11,319 11,480
---------- ----------
Total Current Assets 5,030,057 5,336,671
PROPERTY, PONDS, AND EQUIPMENT - NET 2,075,667 2,169,535
OTHER ASSETS 332,131 336,330
---------- ----------
TOTAL ASSETS $7,437,855 $7,842,536
========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts Payable $ 3,325 $ 11,428
Advances Payable to Shareholder &
Current Maturities 2,742,939 3,309,853
Other Accrued Expenses and Payables 209,962 159,011
---------- ----------
TOTAL CURRENT LIABILITIES 2,956,226 3,480,292
DEFERRED INCOME TAXES 126,000 126,000
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, 1998 and
2,688,605 shares at December 31, 1997 4,424,336 4,424,336
Additional Paid-In Capital 475,776 475,776
Retained Earnings (Deficit) (544,483) (663,868)
---------- ----------
TOTAL STOCKHOLDERS' EQUITY 4,355,629 4,236,344
---------- ----------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $7,437,855 $7,842,536
========== ==========
See accompanying notes to consolidated condensed financial statements.
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FARM FISH, INC.
CONSOLIDATED CONDENSED STATEMENT OF OPERATIONS
(UNAUDITED)
FOR THREE MONTHS ENDED MARCH 31, 1998 AND 1997
THREE MONTHS ENDED
MARCH 31
-----------------------
1998 1997
NET SALES $ 909,747 $ 960,638
OTHER INCOME 88,880 87,693
---------- ----------
998,627 1,048,331
COST AND EXPENSES
Cost of Sales 733,110 783,253
Selling, General, and
Administrative Expenses 55,950 51,701
Interest 17,814 19,782
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Total Cost and Expense 806,873 854,736
INCOME BEFORE INCOME TAXES 191,754 193,595
INCOME TAX EXPENSE 72,359 73,566
---------- ----------
NET INCOME $ 119,385 $ 120,029
========== ==========
NET INCOME PER BASIC AND DILUTED SHARE $0.07 $0.07
========== ==========
WEIGHTED AVERAGE BASIC AND DILUTED
COMMON SHARES OUTSTANDING $2,638,605 $2,638,605
========== ==========
See accompanying notes to consolidated condensed financial statements
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FARM FISH, INC.
CONSOLIDATED CONDENSED STATEMENT OF OPERATIONS
(UNAUDITED)
FOR THREE MONTHS ENDED MARCH 31, 1998 AND 1997
THREE MONTHS ENDED
MARCH 31
----------------------
1998 1997
NET CASH PROVIDED BY OPERATING ACTIVITIES $594,098 $524,431
INVESTING ACTIVITIES
Purchase of Equipment (16,444) (10,094)
FINANCING ACTIVITIES
Proceeds from Borrowing 0 0
Principal Payments on Borrowing (576,997) (505,000)
Advances from Shareholders 10,083 0
Payments on Shareholders Advances 0 (53,109)
--------- ---------
NET CASH USED IN FINANCING ACTIVITIES (566,914) (558,109)
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 10,740 (43,772)
CASH AND CASH EQUIVALENTS AT BEGINNING 50,144 80,815
--------- ---------
CASH AND CASH EQUIVALENTS AT END OF PERIOD $ 60,884 $ 37,043
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 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 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,
1998 are not necessarily indicative of the results that may be expected for the
year ended December 31, 1998. For further information refer to consolidated
financial statements and footnotes thereto included in the Company's Annual
Report on Form 10-KSB for the year ended December 31, 1997.
NOTE 2: INVENTORIES
The components of inventory consist of the following:
MARCH 31, DEC. 31,
1998 1997
---------- ----------
Live Fish $4,747,426 $5,046,367
Feed and Supplies 24,322 21,416
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TOTAL INVENTORY $4,771,748 $5,067,783
========== ==========
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FARM FISH, INC.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATION
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:
Sales for the period ending March 31, 1998 were $961,246 compared to
$982,086 for the same period in 1997. A seasonal decrease of 2%.
During the three month period ended March 31, 1998, Farm Fish, Inc.
made a profit before taxes of $191,755 compared to $193,595 profit
for the same period in 1997.
The price of live fish sold for the quarter averaged $.75 per pound
compared to $.73 per pound for the same quarter in 1997. No fingerling
sales were made for the first quarters of 1997 or 1998.
Cost of Sales was 81.9% of sales for the current quarter compared to
83% of sales for the first quarter of 1997. The average production
cost of fish for the quarter of this year was $.564 per pound compared
to $.55 average production cost per pound for the same quarter last year.
Increased production costs were due to higher feed costs for the past
24 months.
The company had other income including dividends from a feed cooperative
Of $88,881 for the current quarter while other income for the first
quarter of last year was $87,693.
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FARM FISH, INC.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
LIQUIDITY
As of March 31, 1998, current assets exceeded current liabilities by
$2,073,831 compared to $1,995,063 for the same period ended March 31, 1997.
Delta Industries, Inc. made no payments for the company during the three
month period this year or for the same period in 1997.
Farm Fish, Inc. had an unused line of credit with a local bank as of March
31, 1998 of $1,400,000 compared to $500,000 unused as of March 31, 1997.
The total line of credit as of March 31, 1998 was $2,000,000 compared to
$600,000 as of March 31, 1997. 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.
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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.
ITEM 4 - SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
There were no stockholder's meetings held during the quarter ended
March 31, 1998.
ITEM 6 - EXHIBIT AND REPORT ON FORM 8-K
Exhibit 27 - Financial Data Schedule (attached)
There was no report on Form 8-K for the quarter ended March 31, 1998.
SIGNATURES
In accordance with the requirements of the Exchange Act, the Registrant caused
this report to be signed on its behalf by the undersigned thereunto duly
authorized.
FARM FISH
_____________________________
(Registrant)
May 13, 1998 /s/ Thomas R. Slough, Jr.
_____________ _____________________________
Date Thomas R. Slough, Jr. President
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-END> MAR-31-1998
<CASH> 60,844
<SECURITIES> 332,131
<RECEIVABLES> 186,146
<ALLOWANCES> 0
<INVENTORY> 4,771,748
<CURRENT-ASSETS> 5,030,057
<PP&E> 2,075,667
<DEPRECIATION> 65,325
<TOTAL-ASSETS> 7,437,855
<CURRENT-LIABILITIES> 2,993,226
<BONDS> 0
0
0
<COMMON> 2,638,605
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 7,437,855
<SALES> 909,747
<TOTAL-REVENUES> 998,627
<CGS> 733,110
<TOTAL-COSTS> 806,873
<OTHER-EXPENSES> 55,950
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 17,814
<INCOME-PRETAX> 191,754
<INCOME-TAX> 72,369
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 119,385
<EPS-PRIMARY> .07
<EPS-DILUTED> .07
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