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, 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) 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, 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 1
March 31, 2000 and December 31, 1999
Condensed Consolidated Statements of Operations 2
Three Months Ended March 31, 2000 and 1999
Condensed Consolidated Statements of Cash Flows 3
Three Months Ended March 31, 2000 and 1999
Notes to Condensed Consolidated Financial 4,5
Statements
Item 2 Management's Discussion and Analysis of Financial 6
Condition and Results of Operations
PART 11 OTHER INFORMATION
Item 1. Legal Proceedings 7
Item 4. Submission of Matters to a Vote of
Security Holders 7
Item 6. Exhibits and Reports on Form 8-K 7
-1-
PART I FINANCIAL INFORMATION
FARM FISH, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
MARCH 31, 2000 (UNAUDITED) AND DECEMBER 31, 1999
MARCH 31, DEC 31,
2000 1999
--------- ----------
(UNAUDITED) (NOTE 1)
ASSETS
CURRENT ASSETS
Cash $ 67,179 $ 147,393
Accounts Receivable 113,824 236,568
Inventories - Note 2 5,329,389 5,341,273
Advances to Employees 853 4,342
--------- ---------
Total Current Assets 5,511,245 5,729,576
PROPERTY, BUILDINGS, AND EQUIPMENT - NET 1,953,321 2,060,799
OTHER ASSETS 303,860 398,455
--------- ---------
TOTAL ASSETS 7,768,426 8,188,830
======== =========
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Notes payable to bank $1,040,000 $1,515,000
Accounts Payable 31,333 142,200
Advance Payable to Shareholder 2,140,073 2,077,222
Accrued Expenses 65,249 40,610
--------- ---------
TOTAL CURRENT LIABILITIES 3,276,655 3,775,032
DEFERRED INCOME TAXES 108,000 108,000
STOCKHOLDERS' EQUITY
Common Stock - no par value, authorized
5,000,000 shares, subscribed and issued 2,688,605
shares at stated value at March 31, 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) (516,341) (594,314)
--------- ---------
TOTAL STOCKHOLDERS' EQUITY 4,383,771 4,305,798
--------- ---------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $7,768,426 $8,188,830
========= =========
See accompanying notes to condensed consolidated financial statements
-2-
FARM FISH, INC.
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
(UNAUDITED)
FOR THREE MONTHS ENDED MARCH 31, 2000 AND 1999
THREE MONTHS ENDED
MARCH 31
2000 1999
________________________
NET SALES $ 450,825 $ 473,583
OTHER INCOME 83,978 74,328
--------- ---------
534,803 547,911
COST AND EXPENSES
Cost of Sales 341,025 396,813
Selling, General, and
Administrative 37,717 48,545
Interest 30,298 7,727
-------- --------
Total Cost and Expense 409,040 453,084
-------- --------
INCOME BEFORE INCOME TAX 125,763 94,827
INCOME TAX EXPENSE 47,790 34,844
-------- --------
NET INCOME $77,973 $59,983
======== ========
NET INCOME PER BASIC AND DILUTED SHARE $.03 $.02
======== ========
WEIGHTED AVERAGE BASIC AND DILUTED
COMMON SHARES OUTSTANDING 2,688,605 2,688,605
========= =========
See accompanying notes to condensed consolidated financial statements
-3-
FARM FISH, INC.
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
(UNAUDITED)
FOR THREE MONTHS ENDED MARCH 31, 2000 AND 1999
THREE MONTHS ENDED
MARCH 31
2000 1999
_______________________
NET CASH PROVIDED BY OPERATING ACTIVITIES $ 313,775 $ 243,334
INVESTING ACTIVITIES
Purchase or Sale of Equipment 18,160 (42,000)
FINANCING ACTIVITIES
Net decrease in note payable to bank (475,000) (50,000)
Net change in advances payable to Shareholder 62,851 11,367
-------- ---------
NET CASH USED IN FINANCING ACTIVITIES (412,149) (38,633)
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (80,214) 162,701
CASH AND CASH EQUIVALENTS AT BEGINNING 147,393 24,965
-------- ---------
CASH AND CASH EQUIVALENTS AT END OF PERIOD $ 67,179 $187,666
======== ========
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 three-month period ended March 31, 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
Inventories consist of the following:
MARCH 31, DEC. 31,
2000 1999
-------- --------
Live Fish $5,291,517 $5,310,120
Feed and Supplies 37,772 31,153
---------- ----------
TOTAL INVENTORY $5,329,389 $5,341,273
========== ==========
-5-
FARM FISH, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
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,
buildings and certain equipment. Any agreement reached for the sale of such
assets would be subject to the approval of the Board of Directors and stock-
holders of the Company. The Company anticipates that any sale would be for an
amount which approximates the book value of the assets being sold. If an
agreement is reached, it is the Company's intention to grow-out and sell the
existing live fish inventory. While negotiations have been authorized, there
can be no assurance that any definitive agreement will be reached regarding
the sale of these assets.
NOTE 4: Investments in Cooperative
During the first quarter of fiscal 2000, the Company surrendered certain shares
of its stock in Delta Pride Catfish, Inc. ("Delta Pride") as payment in kind
for Delta Pride's losses allocated to the Company for the fiscal year ended
June 30, 1999. The carrying amount of the Company's investment in Delta Pride,
for the shares surrendered, was approximately $110,000 which approximated the
liability to Delta Pride at the time of the exchange. The liability to Delta
Pride was included in accounts payable at December 31, 1999.
-6-
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:
Net sales for the three month period ending March 31, 2000 were $450,825
($.80 per pound live weight) compared to $473,583 ($.689 per pound live
weight) for the same period in 1999. During the first quarter of fiscal
2000, 563,781 pounds of fish were sold compared to 686,701 pounds for
the same period in 1999.
During the three month period ended March 31, 2000, Farm Fish, Inc.
made a profit before taxes of $125,763 compared to $94,827 profit
for the same period in 1999.
Cost of Sales was 75.6% of net sales for the current quarter compared to
83.8% of sales for the first quarter of 1999. The decreased cost of sales
as a percentage of net sales is due primarily to the increased selling
price for live fish in the first quarter of 2000 compared to the first
quarter of 1999.
The Company had other income including dividends from a feed cooperative
Of $76,231 for the current quarter compared to $68,922 for the first
quarter of last year.
LIQUIDITY
As of March 31, 2000, current assets exceeded current liabilities by
$2,234,590 compared to $1,954,544 at December 31, 1999.
Farm Fish, Inc. has an unused line of credit with a local bank as of March
31, 2000 of $960,000 compared to $485,000 unused as of December 31, 1999.
The total line of credit was $2,000,000 for 1999 and 2000. 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, 2000.
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, 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, INC.
___________________
(Registrant)
May 13, 2000 ___________________
Date Jayne Dew
Secretary/Treasurer
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<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-2000
<PERIOD-END> MAR-31-2000
<CASH> 67,179
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<RECEIVABLES> 113,824
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<CGS> 341,025
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<NET-INCOME> 77,973
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