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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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FORM 10-Q
(Mark One)
[ X ] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 1998
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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 O-10695
REGENCY EQUITIES CORP.
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(Exact name of registrant as specified in its charter)
Delaware 23-2298894
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(State or other jurisdiction (I.R.S. employer
of incorporation or organization) identification no.)
11845 W. Olympic Boulevard, Suite 900 Los Angeles, CA 90064-5023
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(Address of principal executive offices) (Zip code)
Registrant's telephone number, including area code (310) 827-9604
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Former name, former address and former fiscal year,
if changed since last report.
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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Indicate the number of shares outstanding of each of the issuer's
classes of common stock, as of the latest practicable date. Number of Shares
of Common Stock outstanding as of May 4, 1998 is 87,283,661.
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REGENCY EQUITIES CORP.
INDEX
<TABLE>
<CAPTION>
PAGE
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<S> <C> <C>
Part I Financial information
Item 1. Financial statements
Balance sheets as of March 31, 1998
(Unaudited) and December 31, 1997 . . . . . . . . . . . . . . . 1
Statements of operations for the three
months ended March 31, 1998 and 1997
(Unaudited) . . . . . . . . . . . . . . . . . . . . . . . . . . 2
Statement of changes in shareholders' equity
for the three months ended March 31, 1998
(Unaudited) . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Statements of cash flows for the three months
ended March 31, 1998 and 1997 (Unaudited) . . . . . . . . . . . 4
Notes to financial statements (Unaudited). . . . . . . . . . . . 5
Item 2. Management's discussion and analysis
of financial condition and results
of operations. . . . . . . . . . . . . . . . . . . . . . . . . . 6
Part II Other information
Item 6. Exhibits and reports on Form 8-K . . . . . . . . . . . . . . . . 7
Signature Page . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
</TABLE>
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PART I - FINANCIAL INFORMATION
Item 1. Financial Statements
REGENCY EQUITIES CORP.
BALANCE SHEETS
<TABLE>
<CAPTION>
March 31,
1998 December 31,
(Unaudited) 1997
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<S> <C> <C>
ASSETS
Cash $ 3,135,191 $ 3,137,924
Rent receivable 1,240 3,752
Rental property owned, net of write
down for possible loss of $215,000
and accumulated depreciation of
$355,743 in 1998 and $343,476 in
1997 900,698 912,965
Deferred income taxes, net of
valuation reserve 0 0
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$ 4,037,129 $ 4,054,641
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LIABILITIES AND SHAREHOLDERS' EQUITY
LIABILITIES
Accounts payable and accrued
expenses $ 40,149 $ 22,366
Income taxes payable 1,510 1,420
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41,659 23,786
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SHAREHOLDERS' EQUITY
Preferred stock, par value $.01
per share, authorized 5,000,000
shares; none issued
Common stock, par value $.01
per share, authorized
</TABLE>
See accompanying notes to financial statements
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REGENCY EQUITIES CORP.
<TABLE>
<S> <C> <C>
125,000,000 shares; issued and
outstanding 87,283,661 shares 872,836 872,836
Additional paid-in capital 47,660,331 47,660,331
Accumulated deficit ( 44,537,697) ( 44,502,312)
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3,995,470 4,030,855
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$ 4,037,129 $ 4,054,641
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</TABLE>
STATEMENTS OF OPERATIONS
(Unaudited)
<TABLE>
<CAPTION>
THREE MONTHS ENDED
MARCH 31,
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1 9 9 8 1 9 9 7
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<S> <C> <C>
REVENUES:
Interest income $ 37,601 $ 34,932
Rental income 11,739 69,483
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TOTAL REVENUES 49,340 104,415
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EXPENSES:
Administrative expense 27,670 26,610
Professional fees 27,131 31,657
Rental expense 28,414 29,775
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TOTAL EXPENSES 83,215 88,042
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INCOME (LOSS) BEFORE INCOME TAXES ( 33,875) 16,373
PROVISION FOR INCOME TAXES 1,510 1,210
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NET INCOME (LOSS) ($ 35,385) $ 15,163
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</TABLE>
See accompanying notes to financial statements
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<PAGE>
REGENCY EQUITIES CORP.
<TABLE>
<S> <C> <C>
WEIGHTED AVERAGE NUMBER OF SHARES
OUTSTANDING 87,283,661 87,283,661
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INCOME (LOSS) PER SHARE $ .000 $ .000
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</TABLE>
See accompanying notes to financial statements
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REGENCY EQUITIES CORP.
STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY
(UNAUDITED)
<TABLE>
<CAPTION>
COMMON STOCK
----------------------- Additional
Number of Paid-In Accumulated
Shares Amount Capital deficit
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<S> <C> <C> <C> <C>
Balance at
December 31, 1997 87,283,661 $ 872,836 $47,660,331 ($44,502,312)
Net loss for the
three months ended
March 31, 1998 ( 35,385)
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Balance at
March 31, 1998 87,283,661 $ 872,836 $47,660,331 ($44,537,697)
---------- ---------- ----------- -----------
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</TABLE>
See accompanying notes to financial statements
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<PAGE>
REGENCY EQUITIES CORP.
STATEMENTS OF CASH FLOWS
(Unaudited)
<TABLE>
Caption
THREE MONTHS ENDED
MARCH 31,
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1 9 9 8 1 9 9 7
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<S> <C> <C>
CASH FLOWS FROM
OPERATING ACTIVITIES:
Net income (loss) ($ 35,385) $ 15,163
Adjustments to reconcile net
income (loss) to net cash provided
by operating activities:
Depreciation 12,267 12,267
Changes in operating assets and
liabilities:
Rent receivable 2,512 20,202
Accounts payable and accrued expenses 17,783 8,126
Income taxes payable 90 ( 210)
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NET CASH PROVIDED BY OPERATING ACTIVITIES 2,733 55,548
CASH BEGINNING OF PERIOD 3,137,924 2,974,146
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CASH END OF PERIOD $ 3,135,191 $ 3,029,694
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</TABLE>
See accompanying notes to financial statements
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<PAGE>
Regency Equities Corp.
Notes to Financial Statements
March 31, 1998
(Unaudited)
1. Significant accounting policies
Significant accounting policies of Regency Equities Corp. are set forth in
its Annual Report on Form 10-K as filed by the Company for the year ended
December 31, 1997 together with certain procedural disclosures.
2. Basis of reporting
The balance sheet as of March 31, 1998, the statements of operations for
the three month periods ended March 31, 1998 and 1997, the statement of
changes in shareholders' equity for the three months ended March 31, 1998,
and the statements of cash flows for the three month periods ended March
31, 1998 and 1997, have been prepared by the Company without audit. The
accompanying unaudited financial statements have been prepared in
accordance with generally accepted accounting principles for interim
financial information and pursuant to the instructions to Form 10-Q and
Rule 10-01 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, such statements include all adjustments (consisting only of
normal recurring items) which are considered necessary for a fair
presentation of the financial position of the Company at March 31, 1998 and
the results of its operations and cash flow for the three month period then
ended. It is suggested that these financial statements be read in
conjunction with the financial statements and the notes thereto included in
the Company's Annual Report on Form 10-K for the year ended December 31,
1997.
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3. Rental property
Real estate owned consists of a shopping center (the "Center") located in
Grand Rapids, Michigan. Approximately 12.5% of the Center is leased to a
tenant on a month-to-month basis. Mimimum rent in connection with this
tenant is $3,500 per month. The remaining 87.5% of the Center is vacant.
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<PAGE>
Item 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations
Results of operations
During the first quarter of 1998, the Company recorded a loss of $33,875, before
income taxes, compared to income of $16,373 before income taxes for the same
period in 1997. The decrease resulted principally from the decrease in rental
income of $57,744 attributable to the termination of the Witmark, Inc. lease in
September 1997.
Item 3. Quantitative and Qualitative Disclosures About Market Risk
Not Applicable.
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PART II - OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K
(a) EXHIBITS:
EXHIBIT 27.1 Financial Data Schedule (included only in the
electronic filing).
(b) Reports on Form 8-K:
None.
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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.
REGENCY EQUITIES CORP.
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(Registrant)
DATE: May 13, 1998 By /s/ ALLAN L. CHAPMAN
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Allan L. Chapman
Chairman of the Board, Chief
Executive Officer and President
(Principal Executive Officer)
DATE: May 13, 1998 By /s/ MORRIS ENGEL
------------------------------------
Morris Engel
Chief Financial Officer and Treasurer
(Principal Financial and Accounting Officer)
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<PAGE>
REGENCY EQUITIES CORP.
QUARTERLY REPORT ON FORM 10-Q
INDEX TO EXHIBITS
Exhibit
Number
27.1 Financial Data Schedule (included only in the electronic filing)
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<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
FINANCIAL STATEMENTS OF REGENCY EQUITIES CORP. FOR THE PERIOD ENDED MARCH
31, 1998 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL
STATEMENTS.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-END> MAR-31-1998
<CASH> 3,135,191
<SECURITIES> 0
<RECEIVABLES> 1,240
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 3,136,431
<PP&E> 1,256,411
<DEPRECIATION> 355,743
<TOTAL-ASSETS> 4,037,129
<CURRENT-LIABILITIES> 41,659
<BONDS> 0
0
0
<COMMON> 872,636
<OTHER-SE> 3,122,634
<TOTAL-LIABILITY-AND-EQUITY> 4,037,129
<SALES> 0
<TOTAL-REVENUES> 49,340
<CGS> 0
<TOTAL-COSTS> 28,414
<OTHER-EXPENSES> 54,801
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> (33,875)
<INCOME-TAX> 1,510
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (35,385)
<EPS-PRIMARY> .000
<EPS-DILUTED> .000
</TABLE>
