UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-QSB
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934
FOR THE QUARTERLY PERIOD ENDED SEPTEMBER 30, 1996
COMMISSION FILE NUMBER 0-12666
AMERICAN FINANCIAL HOLDING, INC.
(Exact name of registrant as specified in charter)
DELAWARE 87-0458888
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
225 SOUTH 200 WEST, SUITE 302, FARMINGTON, UTAH 84025
(Address of principal executive offices)
(801) 451-9580
(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 [ ] No [X]
APPLICABLE ONLY TO CORPORATE ISSUERS:
The Company had 4,279,000 shares of common stock, par value $.01 per
share, issued and outstanding as of November 15, 1996.
<PAGE>
ITEM 1. FINANCIAL STATEMENTS
SPECIAL NOTE
THIS REPORT ON FORM 10-QSB FOR THE INTERIM PERIOD ENDED SEPTEMBER 30, 1995,
OF AMERICAN FINANCIAL HOLDING, INC. (THE "COMPANY"), IS BEING FILED IN DECEMBER
1996, SUBSTANTIALLY AFTER ITS DUE DATE. THIS REPORT SHOULD BE READ IN
CONJUNCTION WITH OTHER PERIODIC REPORTS REPORTING EVENTS OCCURRING AFTER
DECEMBER 31, 1995. SUCH OTHER PERIODIC REPORTS AND THE INFORMATION SET FORTH
THEREIN SHOULD BE READ IN CONJUNCTION WITH THE COMPANY'S ANNUAL REPORT ON FORM
10-KSB, WHICH CONTAINS INFORMATION AS OF DECEMBER 31, 1995, AND THIS QUARTERLY
REPORT ON FORM 10-QSB UNLESS OTHERWISE INDICATED.
The consolidated condensed financial statements included herein have been
prepared by the Company without audit, pursuant to the rules and regulations of
the Securities and Exchange Commission. Certain information and footnote
disclosures normally included in financial statements prepared in accordance
with generally accepted accounting principles have been condensed or omitted.
However, in the opinion of management, all adjustments (which include only
normal recurring accruals) necessary to present fairly the financial position
and results of operations for the periods presented have been made. These
consolidated condensed financial statements should be read in conjunction with
the financial statements and notes thereto included in the Company's annual
report on Form 10-KSB for the year ended December 31, 1995.
AMERICAN FINANCIAL HOLDING, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
ASSETS
SEPTEMBER 30, DECEMBER 31,
1996 1995
CURRENT ASSETS
Cash $677,857 $988,904
Marketable securities 57,517 88,100
Commissions receivable 91,055 170,014
Interest receivable 5,112 1,414
Other receivable 21,000 -
Real estate contract receivable 161,151 -
--------- ---------
TOTAL CURRENT ASSETS 1,013,692 1,248,432
--------- ---------
PROPERTY AND EQUIPMENT
Automobiles 128,142 97,852
Equipment 48,875 48,238
Furniture and fixtures 22,133 22,133
199,150 168,223
Less: accumulated depreciation (88,549) (65,622)
--------- --------
NET PROPERTY AND EQUIPMENT 110,601 102,601
--------- --------
OTHER ASSETS
Investment in real estate - 102,955
Net deferred tax asset 195,560 195,560
Deposits 31,856 26,804
TOTAL OTHER ASSETS 227,416 325,319
--------- ---------
TOTAL ASSETS $1,351,709 $1,676,352
========= =========
See the accompanying notes to condensed consolidated financial statements.
AMERICAN FINANCIAL HOLDING, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS (CONTINUED)
(UNAUDITED)
LIABILITIES AND STOCKHOLDERS' DEFICIT
SEPTEMBER 30, DECEMBER 31,
1996 1995
CURRENT LIABILITIES
Accounts payable $412,587 $317,277
Commissions payable 69,447 170,014
Short-term borrowings 20,471 53,478
Accrued liabilities 308,822 281,528
Income taxes payable 268,241 256,241
Preferred dividends payable 22,471 24,064
Current portion of long-term debt 21,449 57,738
Obligation to redeem preferred
stock of subsidiary 224,000 -
--------- ---------
TOTAL CURRENT LIABILITIES 1,347,488 1,160,340
--------- ---------
LONG-TERM DEBT, net of current portion 587,198 522,403
--------- ---------
MINORITY INTEREST (preferred stock in
consolidated subsidiary) 231,986 437,938
--------- ---------
STOCKHOLDERS' DEFICIT
Common stock - $.01 par value,
20,000,000 shares authorized,
4,279,449 and 4,232,399 shares issued
and outstanding at September 30, 1996
and December 31, 1995, respectively 42,794 42,324
Additional paid-in capital 7,431,370 7,378,424
Stockholders' notes receivable,
net of reserve of $1,171,609
and $869,255 at 1996 and
December 31, 1995, respectively (383,966) (383,966)
Unrealized loss on marketable securities (27,291) (53,412)
Accumulated deficit (7,877,870) (7,427,699)
--------- ---------
TOTAL STOCKHOLDERS' DEFICIT (814,963) (444,329)
--------- ---------
TOTAL LIABILITIES AND
STOCKHOLDERS' DEFICIT $1,351,709 $1,676,352
See the accompanying notes to condensed consolidated financial statements.
AMERICAN FINANCIAL HOLDING, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
Certifying Accountants
SIGNATURES
Pursuant to the requirements 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.
AMERICAN FINANCIAL HOLDING, INC.
(Registrant)
Dated: December 3, 1996 By /s/ Kenton L. Stanger, President
(Chief Financial and Accounting Officer)
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE BALANCE
SHEET AS OF SEPTEMBER 30, 1996, AND STATEMENTS OF OPERATIONS FOR THE NINE MONTHS
ENDED SEPTEMBER 30, 1996, AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH
FINANCIAL STATEMENTS.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-START> JAN-01-1996
<PERIOD-END> SEP-30-1996
<CASH> 677,857
<SECURITIES> 57,517
<RECEIVABLES> 278,318
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 1,013,692
<PP&E> 199,150
<DEPRECIATION> 88,549
<TOTAL-ASSETS> 1,351,709
<CURRENT-LIABILITIES> 1,347,488
<BONDS> 587,198
<COMMON> 42,794
0
0
<OTHER-SE> (857,757)
<TOTAL-LIABILITY-AND-EQUITY> 1,351,422
<SALES> 3,242,422
<TOTAL-REVENUES> 3,242,422
<CGS> 2,694,404
<TOTAL-COSTS> 2,694,404
<OTHER-EXPENSES> 1,074,039
<LOSS-PROVISION> 3,083
<INTEREST-EXPENSE> 44,667
<INCOME-PRETAX> (401,127)
<INCOME-TAX> 12,022
<INCOME-CONTINUING> (449,605)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (449,605)
<EPS-PRIMARY> (0.11)
<EPS-DILUTED> (0.11)
</TABLE>
