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, 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) 836-5188
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, 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 1
March 31, 1999 and December 31, 1998
Consolidated Condensed Statements of Operations 2
Three Months Ended March 31, 1999 and 1998
Consolidated Condensed Statements of Cash Flows 3
Three Months Ended March 31, 1999 and 1998
Notes to Consolidated Condensed Financial 4
Statements
Management's Discussion and Analysis of Financial 5,6
Condition and Results of Operations
PART 11 OTHER INFORMATION
EXHIBIT 27 8
-1-
PART I FINANCIAL INFORMATION
FARM FISH, INC.
CONSOLIDATED CONDENSED BALANCE SHEETS
MARCH 31, 1999 (UNAUDITED) AND DECEMBER 31, 1998
MARCH 31, DEC 31,
1999 1998
--------- ----------
(UNAUDITED) (*NOTE)
ASSETS
CURRENT ASSETS
Cash $ 218,582 $ 24,965
Accounts Receivable 81,534 204,239
Inventories - Note 2 4,593,621 4,620,540
Prepaid Expenses 10,712 3,359
--------- ---------
Total Current Assets 4,904,449 4,853,103
PROPERTY, PONDS, AND EQUIPMENT - NET 2,050,284 2,108,299
OTHER ASSETS 252,415 288,913
--------- ---------
TOTAL ASSETS 7,207,148 7,250,315
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts Payable 2,750 120,714
Advance Payable to Shareholder &
Current Maturities 2,595,188 2,633,821
Other Accrued Expenses and Payables 133,872 80,425
--------- ---------
TOTAL CURRENT LIABILITIES 2,731,810 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 March 31, 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) (540,774) (600,757)
--------- ---------
TOTAL STOCKHOLDERS' EQUITY 4,359,338 4,299,355
--------- ---------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $7,207,148 $7,250,315
See accompanying notes to consolidated condensed financial statements
-2-
FARM FISH, INC.
CONSOLIDATED CONDENSED STATEMENT OF OPERATIONS
(UNAUDITED)
FOR THREE MONTHS ENDED MARCH 31, 1999 AND 1998
THREE MONTHS ENDED
MARCH 31
__________________
1999 1998
NET SALES $ 473,583 $ 909,747
OTHER INCOME 74,328 88,880
--------- ---------
547,911 998,627
COST AND EXPENSES
Cost of Sales 396,813 733,110
Selling, General, and
Administrative 48,545 55,950
Interest 7,727 17,814
-------- --------
Total Cost and Expense 453,084 806,873
INCOME BEFORE INCOME TAX 94,827 191,754
INCOME TAX EXPENSE 34,844 72,359
-------- --------
NET INCOME 59,983 119,385
======== ========
NET INCOME PER BASIC AND DILUTED SHARE $.02 $.07
======== ========
WEIGHTED AVERAGE BASIC AND DILUTED
COMMON SHARES OUTSTANDING 2,688,605 2,688,605
See accompanying notes to consolidated condensed financial statements
-3-
FARM FISH, INC.
CONSOLIDATED CONDENSED STATEMENT OF OPERATIONS
(UNAUDITED)
FOR THREE MONTHS ENDED MARCH 31, 1999 AND 1998
THREE MONTHS ENDED
MARCH 31
__________________
1999 1998
NET CASH PROVIDED BY OPERATING ACTIVITIES $ 243,334 $ 594,098
INVESTING ACTIVITIES
Purchase of Equipment (42,000) (16,444)
FINANCING ACTIVITIES
Proceeds from Borrowing 0 0
Principal Payments on Borrowing (50,000) (576,997)
Advances from Shareholders 11,367 10,083
Payments on Shareholders Advancers 0 0
-------- ---------
NET CASH USED IN FINANCING ACTIVITIES 80,633 (566,914)
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 162,701 10,740
CASH AND CASH EQUIVALENTS AT BEGINNING 24,965 50,144
-------- ---------
CASH AND CASH EQUIVALENTS AT END OF PERIOD $187,666 $ 60,884
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 three-month period ended March 31,
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' Annual
Report on Form 10-KSB for the year ended December 31, 1998.
NOTE 2: INVENTORIES
The components of inventory consist of the following:
MARCH 31, DEC. 31,
1999 1998
-------- --------
Live Fish $4,556,879 $4,587,245
Feed and Supplies 36,742 33,295
---------- ----------
TOTAL INVENTORY $4,593,621 $4,620,540
========== ==========
-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:
Sales for the period ending March 31, 1999 were $473,583 ($.689 per
pound live weight) compared to $961,246 ($.748 per pound live weight)
for the same period in 1998. Farm Fish, Inc. elected to suppress sales for
the current quarter of 1999 expecting a higher price for fish in succeeding
quarters of 1999. During the first quarter of 1999, 686,701 pounds of fish
were sold compared to 1,285,823 pounds for the same period in 1998.
During the three month period ended March 31, 1999, Farm Fish, Inc.
made a profit before taxes of $94,827 compared to $191,754 profit
for the same period in 1998.
The price of live fish sold averaged $.75 per pound for the first
quarters of 1998 and 1999. No fingerling sales were made for the
first quarter of 1998 or 1999.
Cost of Sales was 83.8% of sales for the current quarter compared to
80.6% of sales for the first quarter of 1998. The average production
Cost of fish for the quarter of this year was $.586 per pound compared
to $.564 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 $68,922 for the current quarter while other income for the first
quarter of last year was $88,8881.
-6-
FARM FISH, INC.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATION
LIQUIDITY
As of March 31, 1999, current assets exceeded current liabilities by
$2,172,639 compared to $2,073,831 for the same period ended March 31, 1998.
Farm Fish, Inc. has an unused line of credit with a local bank as of March
31, 1999 of $1,565,000 compared to $1,400,000 unused as of March 31, 1998.
The total line of credit was $2,000,000 for 1998 and 1999. 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 MATTER TO A VOTE OF SECURITY HOLDERS
There are no stockholder's meeting held during this quarter ended
March 31, 1999.
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, 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, INC.
___________________
(Registrant)
May 13, 1999 ___________________
Date Jayne Dew
Secretary/Treasurer
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<PERIOD-END> MAR-31-1999
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