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 SEPTEMBER, 1999 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 SEPT. 30, 1999 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
September 30, 1999 and December 31, 1998 1
Consolidated Condensed Statements of Operations
Three Months and Nine Months Ended Sept. 30, 1999
and 1998 2
Consolidated Condensed Statements of Cash Flows
Nine Months Ended Sept. 30, 1999 and 1998 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
SEPTEMBER 30, 1999 (UNAUDITED) AND DECEMBER 31, 1998
SEPT. 30, DEC. 31,
1999 1998
____________________________
(UNAUDITED) (*NOTE)
ASSETS
CURRENT ASSETS
Cash $ 3,712 $ 24,965
Accounts Receivable 234,758 204,239
Inventories - Note 2 5,806,385 4,620,540
Prepaid Expenses 6,785 3,359
---------- ---------
Total Current Assets 6,051,640 4,853,103
PROPERTY, PONDS, AND EQUIPMENT - NET 1,984,518 2,108,299
OTHER ASSETS 230,143 288,913
---------- ---------
TOTAL ASSETS $8,266,301 $7,250,315
========== ==========
LIABILITIES AND STOCKHOLDERS EQUITY
CURRENT LIABILITIES
Accounts Payable $ 128,604 $ 120,714
Advances Payable to Shareholder &
Current Maturities 3,630,442 2,633,821
Other Accrued Expenses and Payables 61,842 80,425
---------- ---------
TOTAL CURRENT LIABILITIES 3,820,888 2,834,960
DEFERRED INCOME TAXES 116,000 116,000
STOCKHOLDERS' EQUITY
Common Stock - without par value, authorized
5,000,000 shares, subscribed and issued 2,688,605
shares at stated value at Sept. 30, 1999 and
2,688,605 shares at December 31, 1998 4,424,336 4,424,336
Additional Paid-In Capital 475,776 475,776
Retained Earnings (Deficit) (570,699) (600,757)
----------- ----------
TOTAL STOCKHOLDERS' EQUITY 4,329,413 4,299,355
----------- ----------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $8,266,301 $7,250,315
=========== =========
See accompanying notes to consolidated condensed financial statements.
- 2 -
FARM FISH, INC.
CONSOLIDATED CONDENSED STATEMENT OF OPERATIONS
(UNAUDITED)
FOR THREE MONTHS AND NINE MONTHS ENDED SEPTEMBER 30, 1999 AND 1998
THREE MONTHS ENDED NINE MONTHS ENDED
SEPT. 30 SEPT. 30
_____________________ __________________
1999 1998 1999 1998
NET SALES $ 420,136 $1,048,290 $1,030,936 $2,822,167
OTHER INCOME 884 1,512 76,200 92,291
--------- --------- --------- ---------
421,020 1,049,802 1,107,136 2,914,458
COST AND EXPENSES
Cost of Sales 356,568 912,094 887,502 2,414,754
Selling, General, and
Administrative Expenses 49,979 69,000 143,140 199,779
Interest 17,576 10,844 32,725 39,777
--------- --------- --------- ---------
Total Cost and Expense 424,123 991,938 1,063,367 2,654,310
INCOME BEFORE INCOME TAXES (3,103) 57,864 43,769 260,148
INCOME TAX EXPENSE 21,133 (17,126) (13,711) (98,856)
--------- --------- --------- ---------
NET INCOME $ 18,030 $ 40,738 $ 30,058 $161,292
========= ========= ========= ========
NET INCOME PER BASIC AND
DILUTED SHARE $0.007 $0.015 $.01 $.06
========= ========= ========= ========
WEIGHTED AVERAGE BASIC AND DILUTED
COMMON SHARES OUTSTANDING 2,688,605 2,688,605 2,688,605 2,688,605
========= ========= ========= ==========
See accompanying notes to consolidated condensed financial statements
- 3 -
FARM FISH, INC.
CONSOLIDATED CONDENSED STATEMENT OF CASH FLOWS
(UNAUDITED)
FOR NINE MONTHS ENDED SEPTEMBER 30, 1999 AND 1998
NINE MONTHS ENDED
SEPT. 30
______________________
1999 1998
NET CASH PROVIDED BY OPERATING ACTIVITIES $(1,025,914) $666,080
INVESTING ACTIVITIES
Purchase of Equipment and Brood Fish (42,000) (167,944)
FINANCING ACTIVITIES
Proceeds from Borrowing 1,080,000 95,000
Principal Payments on Borrowing (50,000) (605,000)
Advances from Shareholders 66,591 58,758
--------- ---------
NET CASH USED IN FINANCING ACTIVITIES 1,096,591 (451,242)
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 28,677 46,894
CASH AND CASH EQUIVALENTS AT BEGINNING 24,965 50,144
-------- ---------
CASH AND CASH EQUIVALENTS AT END OF PERIOD $3,712 $97,038
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 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 nine-month
period ended September 30,1999 are not necessarily indicative of the results
that may be expected for the year ended December 31, 1999. 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, 1998.
NOTE 2: INVENTORIES
The components of inventory consist of the following:
SEPT. 30, DEC. 31,
1999 1998
_________________________
Live Fish $5,682,363 $4,928,585
Feed and Supplies 43,062 35,054
---------- ----------
TOTAL INVENTORY $5,725,425 $4,963,639
========== ===========
- 5 -
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:
NINE MONTHS ENDED SEPT. 30, 1999, COMPARED TO NINE MONTHS ENDED SEPT. 30, 1998
Sales for the period ending September 30, 1999 were $1,030,936 compared
to $2,822,167 for the same period in 1998.
During the nine month period ended September 30, 1999, Farm Fish, Inc.
made a profit before taxes of $43,769 compared to $260,148 profit
for the same period in 1998.
The price of live fish sold for the period averaged $.754 per pound
compared to $.768 per pound for the same period in 1998.
Cost of Sales was 86.0% of sales for the current period compared to
85.5% of sales for the same period of 1998. The average production
cost of fish for the period was $.5985 per pound compared to $.6088
average production cost per pound for the same period last year.
The company had other income including dividends from a feed cooperative
Of $76,200 for the current period while other income for the first
period of last year was $92,291.
THREE MONTHS ENDED SEPTEMBER 30,1999, COMPARED TO THREE MONTHS ENDED
SEPTEMBER 30, 1998
Net sales for the three months ended September 30, 1999 decreased by
$628,154 from 1998. The number of pounds of food fish sold during the
period decreased by 912,543 pounds. The average selling price of food fish
during this period decreased by $.01 per pound.
Cost of sales decreased from 1998 by $555,436 due to inventory adjustment
for lower sales. General and Administrative expenses decreased over 1998
by $19,021.
- 6 -
FARM FISH, INC.
MANAGEMENTS DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
LIQUIDITY
As of September 30, 1999, current assets exceeded current liabilities by
$2,230,752 compared to $2,018,143 for the same period ended December 31,
1998.
Farm Fish, Inc. had an unused line of credit with a local bank as of
September 30, 1999 of $585,000. The total line of credit as of
September 30, 1999 and 1998 was $2,000,000. 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.
- 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.
ITEM 4 - SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
The Annual Meeting of the Stockholders' for Farm Fish, Inc., was held May 26,
1999, with election of Thomas R. Slough, Jr., Leland R. Speed, Robert Reed
Doyle and W. D. Mounger as directors. The annual report for 1998 and all
actions of the officer and directors of the corporation were adopted and
approved.
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 September 30, 1999.
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)
November 4, 1999
_____________ _____________________________
Date Jayne Dew Secretary/Treasurer
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