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, 2000 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, 2000 2,688,605 SHARES
Common Stock, No Par Value Number of Shares
FARM FISH, INC.
INDEX
PAGE
PART I FINANCIAL INFORMATION
Item 1 Financial Statements (Unaudited)
Condensed Consolidated Balance Sheets
September 30, 2000 and December 31, 1999 1
Condensed Consolidated Statements of Operations
Three Months and Nine Months Ended Sept. 30, 2000
and 1999 2
Condensed Consolidated Statements of Cash Flows
Nine Months Ended Sept. 30, 2000 and 1999 3
Notes to Condensed Consolidated Financial
Statements 4
Management's Discussion and Analysis of Financial
Condition and Results of Operations 5,6
PART II OTHER INFORMATION
Item 1 7
Item 4 7
Item 6 7
- 1 -
PART I FINANCIAL INFORMATION
FARM FISH, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
SEPTEMBER 30, 2000 (UNAUDITED) AND DECEMBER 31, 1999
SEPT. 30, DEC. 31,
2000 1999
____________________________
(UNAUDITED) (NOTE 1)
ASSETS
CURRENT ASSETS
Cash $ 22,357 $ 147,393
Accounts Receivable 140,586 236,568
Inventories - Note 2 5,933,399 5,341,273
Prepaid Expenses 4,342
---------- ---------
Total Current Assets 6,096,342 5,729,576
PROPERTY, PONDS, AND EQUIPMENT - NET 1,768,620 2,060,799
OTHER ASSETS 309,518 398,455
---------- ---------
TOTAL ASSETS $8,174,480 $8,188,830
========== ==========
LIABILITIES AND STOCKHOLDERS EQUITY
CURRENT LIABILITIES
Notes Payable $1,287,492 $1,515,000
Accounts Payable 141,595 142,200
Advances Payable to Shareholder 2,169,635 2,077,222
Accrued Expenses 73,276 40,610
---------- ---------
TOTAL CURRENT LIABILITIES 3,671,998 3,775,032
DEFERRED INCOME TAXES 108,000 108,000
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, 2000 and
2,688,605 shares at December 31, 1999 4,424,336 4,424,336
Additional Paid-In Capital 475,776 475,776
Retained Earnings (Deficit) (505,630) (594,314)
----------- ----------
TOTAL STOCKHOLDERS' EQUITY 4,394,482 4,305,798
----------- ----------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $8,174,480 $8,188,830
=========== =========
See accompanying notes to condensed consolidated financial statements.
- 2 -
FARM FISH, INC.
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
(UNAUDITED)
FOR THREE MONTHS AND NINE MONTHS ENDED SEPTEMBER 30, 2000 AND 1999
THREE MONTHS ENDED NINE MONTHS ENDED
SEPT. 30 SEPT. 30
_____________________ __________________
2000 1999 2000 1999
NET SALES $ 620,313 $ 420,136 $1,579,735 $1,030,936
OTHER INCOME 13,122 884 120,331 76,200
--------- --------- --------- ---------
633,435 421,020 1,700,066 1,107,136
COST AND EXPENSES
Cost of Sales 533,423 356,568 1,322,442 887,502
Selling, General, and
Administrative Expenses 76,805 49,979 152,759 143,140
Interest 31,232 17,576 76,907 32,725
--------- --------- --------- ---------
Total Cost and Expense 641,460 424,123 1,552,108 1,063,367
INCOME (LOSS) BEFORE INCOME TAXES (8,025) (3,103) 147,958 43,769
INCOME TAX EXPENSE 0 21,133 (59,273) (13,711)
--------- --------- --------- ---------
NET INCOME (LOSS) $ (8,025) $ 18,030 $ 88,685 $ 30,058
========= ========= ========= ========
NET INCOME PER BASIC AND
DILUTED SHARE $0.00 $0.007 $.03 $.01
========= ========= ========= ========
WEIGHTED AVERAGE BASIC AND DILUTED
COMMON SHARES OUTSTANDING 2,688,605 2,688,605 2,688,605 2,688,605
========= ========= ========= ==========
See accompanying notes to condensed consolidated financial statements
- 3 -
FARM FISH, INC.
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
(UNAUDITED)
FOR NINE MONTHS ENDED SEPTEMBER 30, 2000 AND 1999
NINE MONTHS ENDED
SEPT. 30
______________________
2000 1999
NET CASH PROVIDED BY (USED IN)
OPERATING ACTIVITIES $ (83,332) $(1,025,914)
INVESTING ACTIVITIES
Sale of Equipment 93,391 0
Purchase of Equipment 0 (42,000)
FINANCING ACTIVITIES
Proceeds from Borrowing 247,492 1,080,000
Principal Payments on Borrowing (475,000) (50,000)
Advances from Shareholders 92,413 66,591
--------- ---------
NET CASH PROVIDED BY(USED IN)
FINANCING ACTIVITIES (135,095) 1,096,591
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (125,036) 28,677
CASH AND CASH EQUIVALENTS AT BEGINNING 147,393 24,965
-------- ---------
CASH AND CASH EQUIVALENTS AT END OF PERIOD $22,357 $3,712
======== =======
See accompanying notes to condensed consolidated financial statements
- 4 -
FARM FISH, INC.
NOTES TO CONDENSED CONSOLIDATED 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. 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 30,2000 are not necessarily
indicative of the results that may be expected for the year ended December 31,
2000. The balance sheet at December 31, 1999 has been derived from the audited
consolidated financial statements at that date but does not include all of the
information and footnotes required by generally accepted accounting principles
for complete financial statements. 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, 1999.
NOTE 2: INVENTORIES
The components of inventory consist of the following:
SEPT. 30, DEC. 31,
2000 1999
_________________________
Live Fish $5,892,689 $5,310,120
Feed and Supplies 40,710 31,153
---------- ----------
TOTAL INVENTORY $5,933,399 $5,341,273
========== ==========
NOTE 3: SALE OF ASSETS
During the first quarter of fiscal 2000, the Board of Directors authorized
officers of the Company to initiate negotiations with certain interested third
parties regarding the sale of all of the Company's land, ponds and improvements,
building and certain equipment. An agreement was entered into in the third
quarter of fiscal 2000 for the sale of such assets, subject to the approval of
the and stockholders of the Company. The Company determined that the sale will
be for an amount which approximates the book value of the assets being sold.
It is the Company's intention to grow-out and sell the existing live fish
inventory.
- 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 RESULTS:
NINE MONTHS ENDED SEPT. 30, 2000, COMPARED TO NINE MONTHS ENDED SEPT. 30,
1999
Sales for the period ending September 30, 2000 were $1,579,735 compared to
$1,030,936 for the same period in 1999.
During the nine month period ended September 30, 2000, Farm Fish, Inc.
made a profit before taxes of $147,958 compared to $43,769 profit
for the same period in 1999.
The price of live fish sold for the period averaged $.777 per pound
compared to $.754 per pound for the same period in 1999. Fingerling
sales were $302,576 for 2000. There were no fingerling sales in 1999.
Cost of Sales was 83.7% of sales for the current nine month period
compared to 86.0% of sales for the same period of 1999. The average
production cost of fish for the period was $.6183 per pound compared to
$.5985 average production cost per pound for the same period last year.
The company had other income including dividends from a feed cooperative
of $120,331 for the current nine month period compared to $76,200 for the
first nine months of last year.
THREE MONTHS ENDED SEPTEMBER 30,2000, COMPARED TO THREE MONTHS ENDED
SEPTEMBER 30, 1999
Net sales for the three months ended September 30, 2000 increased by
$200,177 from 1999. Fingerling sales of $137,385 was the major factor
for the increase. The number of pounds of food fish sold during the
period increased by 51,043 pounds. The average selling price of
food fish during this period decreased by $.014 per pound.
Cost of sales increased from 1999 by $176,855.
- 6 -
FARM FISH, INC.
MANAGEMENTS DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
LIQUIDITY
As of September 30, 2000, current assets exceeded current liabilities by
$2,424,344 compared to $1,954,544 at December 31, 1999.
Farm Fish, Inc. had an unused line of credit with a local bank as of
September 30, 2000 of $712,508. The total line of credit as of
September 30, 2000 and 1999 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, 2000.
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, 2000
_____________ _____________________________
Date Jayne Dew Secretary/Treasurer
