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FORM 10-QSB
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For Quarter Ended September 30, 2000
OR
[ ]TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from to
Commission file number: 0-10893
CROWN JEWEL RESOURCES CORP. AND SUBSIDIARY
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(FORMERLY ABF ENERGY CORP.)
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(Exact Name of Registrant as Specified in its Charter)
Delaware 13-3007167
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State or other jurisdiction of I.R.S. Employer
incorporation or organization Identification No.
805 Third Avene, New York, New York 10022
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(Address of Principal Executive Office) (Zip Code)
212-593-3100
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(Registrant's telephone number including area code)
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such 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
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The number of shares of registrant's Common Stock, $.00005 par value,
outstanding as of September 30, 2000 was 23,355,796 shares.
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CROWN JEWEL RESOURCES CORP. AND SUBSIDIARY
(FORMERLY ABF ENERGY CORP.)
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INDEX
Page
Number
PART I - FINANCIAL INFORMATION:
Item 1. Financial Statements
Consolidated Balance Sheet - September 30, 2000 ................. 1
Consolidated Statements of Operations - For the Nine Months Ended
September 30, 2000 .............................................. 2
Consolidated Statements of Cash Flows - For the Nine Months Ended
September 30, 2000 .............................................. 3
Notes to Consolidated Financial Statements ...................... 4
Item 2. Management's Discussion and Analysis ............................ 5
PART II - OTHER INFORMATION ................................................ 6
SIGNATURES ................................................................. 7
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PART 1. FINANCIAL INFORMATION
Item 1. Financial Statements
CROWN JEWEL RESOURCES CORP. AND SUBSIDIARY
(FORMERLY "ABF ENERGY CORP.")
CONSOLIDATED BALANCE SHEET
(Unaudited)
September 30,
2000
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ASSETS
CURRENT ASSETS:
Cash ....................................................... $ 114,766
Marketable securities ...................................... 29,979
Loan receivable ............................................ 15,354
Inventory .................................................. 13,954
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TOTAL CURRENT ASSETS ................................... 174,053
MACHINERY AND EQUIPMENT, net .................................... 1,967,988
BUILDING - OPTION TO ACQUIRE .................................... 1,100,100
INTANGIBLE ASSETS, net .......................................... 2,208,875
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$ 5,450,916
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LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable and accrued expenses ...................... $ 15,273
Current portion of loan payable ............................ 5,375
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TOTAL CURRENT LIABILITIES .............................. 20,648
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LOAN PAYABLE .................................................... 17,264
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STOCKHOLDERS' EQUITY
Common stock, $.00005 par value,
authorized 200,000,000 shares: 23,355,796 issued and outstanding 1,168
Paid-in capital ............................................ 7,509,285
Accumulated deficit ........................................ (2,069,631)
Other comprehensive income ................................. (27,818)
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TOTAL STOCKHOLDERS' EQUITY ............................. 5,413,004
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$ 5,450,916
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See notes to financial statements.
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CROWN JEWEL RESOURCES CORP. AND SUBSIDIARY
(FORMERLY "ABF ENERGY CORP.")
CONSOLIDATED STATEMENT OF OPERATIONS
(Unaudited)
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
September 30, September 30,
2000 1999 2000 1999
--------------- --------------- -------------- ---------------
<S> <C> <C> <C> <C>
REVENUES:
Sales $ 60,581 $ - $ 60,581 $ -
Royalties - 57,455 38,441 150,988
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60,581 57,455 98,725 150,988
COST OF GOODS SOLD 32,778 - 32,778 -
--------------- --------------- -------------- ---------------
GROSS PROFIT 27,803 57,455 65,947 150,988
EXPENSES:
General and administrative 31,187 16,003 76,781 74,629
Depreciation and amortization 168,596 - 173,288 -
Non-cash compensation - - 208,000 -
--------------- --------------- -------------- ---------------
199,783 16,003 458,069 74,629
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INCOME (LOSS) BEFORE OTHER INCOME (EXPENSE) (171,980) 41,452 (392,122) 76,359
OTHER INCOME (EXPENSE)
Dividend income - - 810 -
Interest expense (603) - (1,310) -
--------------- --------------- -------------- ---------------
(603) - (500) -
--------------- --------------- -------------- ---------------
NET INCOME (LOSS) (172,583) 41,452 (392,622) 76,359
COMPREHENSIVE LOSS-unrealized loss on investments - - 27,818 -
--------------- --------------- -------------- ---------------
NET INCOME (LOSS) APPLICABLE TO COMMON
SHAREHOLDERS $ (172,583) $ 41,452 $ (420,444) $ 76,359
=============== =============== =============== ===============
NET EARNINGS (LOSS) PER SHARE-basic and diluted $ (0.01) $ 0.04 $ (0.04) $ 0.07
=============== =============== =============== ===============
WEIGHTED AVERAGE SHARES OUTSTANDING 22,955,796 $ 1,061,838 $ 10,801,355 $ 1,061,838
=============== =============== =============== ===============
</TABLE>
See notes to financial statements.
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CROWN JEWEL RESOURCES CORP. AND SUBSIDIARY
(FORMERLY "ABF ENERGY CORP.")
CONSOLIDATED STATEMENT OF CASH FLOWS
(Unaudited)
Nine Months Ended
September 30,
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2000 1999
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CASH FLOWS FROM OPERATING ACTIVITIES:
Net earnings (loss) ...................... $ (392,622) $ 76,359
Adjustments to reconcile net earnings (loss)
to net cash provided by operating
activities:
Depreciation .................. 57,038 1,564
Amortization .................. 116,250 --
Common stock issued for services 208,000 --
Changes in assets/liabilites:
Increase in inventory ................ (13,954) --
Increase/(decrease)in accounts payable 5,101 (246)
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NET CASH FLOWS PROVIDED BY (USED IN) OPERATIONS (20,187) 77,677
CASH FLOWS FROM INVESTING ACTIVITIES:
Decrease in marketable securities ........ 34,190 --
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NET CASH FLOWS PROVIDED BY INVESTING ACTIVITIES 34,190 --
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CASH FLOWS FROM FINANCIAL ACTIVITIES:
Increase in loan receivable .............. (3,104) (7,250)
Principal payments of loan payable ....... (3,375) (1,420)
Proceeds from sale of stock .............. 100,000 --
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NET CASH FLOWS USED IN FINANCING ACTIVITIES 93,521 (8,670)
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NET INCREASE IN CASH .......................... 107,524 69,007
CASH - BEGINNING OF PERIOD .................... 7,242 55,395
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CASH - END OF PERIOD .......................... $ 114,766 $ 124,402
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SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
Cash paid during the period for:
Interest ..............................$ 1,310 $ --
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Non-cash investing and financing activities:
Acquisition of assets for common stock.....$ 5,100,000 $ --
========= =========
See notes to financial statements.
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CROWN JEWEL RESOURCES CORP. AND SUBSIDIARY
(FORMERLY "ABF ENERGY CORP.")
NOTES TO FINANCIAL STATEMENTS
(Unaudited)
1. BASIS OF PRESENTATION
The accompanying unaudited consolidated financial statements
of Crown Jewel Resources Corp., formerly ABF Energy Corp., (the
"Company") have been prepared in accordance with generally accepted
accounting principles for interim financial information and with the
instructions to Form 10-QSB and Article 10 of Regulation 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
considered necessary for a fair presentation (consisting of normal
recurring accruals) have been included. The preparation of financial
statements in conformity with generally accepted accounting principles
requires management to make estimates and assumptions that affect the
reported amounts of assets and liabilities and disclosure of contingent
assets and liabilities at the date of the financial statements and the
reported amounts of revenues and expenses during the reporting period.
Actual results could differ from those estimates. 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 ending
December 31, 2000. For further information, refer to the consolidated
financial statements and footnotes thereto included in the Company's
Annual Report on Form 10-KSB for the year ended December 31, 1999.
4
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ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS
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Results of Operations
During this quarter, the Company commenced operations in its new field. Sales
for the three months ended September 30, 2000 were $60,581. Royalty income for
the nine months ended September 30, 2000 were $38,144, compared to $150,988 for
the nine months ended September 30, 1999. Cost of the goods sold for the three
months ended September 30, 2000 was $32,788 or 55% of sales. General and
operating expenses of the Company totaled $250,069 for the nine months ended
September 30, 2000 and $74,626 for the nine months ended September 30, 1999.
This increase is due to the depreciation and amortization expenses associated
with the equipment and intangible assets necessary for the new operations.
During the nine months ended September 30, 2000, the Company recorded non-cash
compensation of $208,000 and an unrealized loss on investments of $27,818. As a
result, the Company reported a net loss of $420,440 for the nine months ended
September 30, 2000 compared to net income of $76,359 for the nine months ended
September 30, 1999. The net loss for the current year is due to the increase in
general and operating expenses which increased for the reasons stated above.
Liquidity and Capital Resources
At September 30, 2000, the Company had $5,451,000 in assets. Liabilities
consisting of certain accrued expenses totaled $38,000.On September 29, 2000,
the Company issued 400,000 shares of its common stock, in a private placement,
at an average price of $0.25 per share.
Inflation
Inflation has not been a major factor in the Company's business since inception.
5
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PART II - Other Information
Item 6. Exhibit and Reports on form 8-K
A. Exhibits
None.
B. Report on Form 8-K
None.
6
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SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the Securities
Exchange Act of 1934, the Registrant has duly caused this report to be signed on
its behalf by the undersigned, thereunto duly authorized.
CROWN JEWEL RESOURCES CORP.
By: /s/ Marc A. Palazzo Dated: 11/17/00
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Marc A. Palazzo
President
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