Hosoi Garden Mortuary, Inc.
30 North Kukui Street
Honolulu, Hawaii 96817
January 14, 2000
Securities and Exchange Commission
Washington, D.C. 20549
Gentlemen:
Pursuant to the requirements of the Securities and Exchange Act of 1934, we
are transmitting herewith the attached Form 10-QSB for the quarter ended
November 30, 1999.
Yours truly,
HOSOI GARDEN MORTUARY, INC.
Clifford S. Hosoi
____________________
CLIFFORD S. HOSOI,
President
<PAGE> 1
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-QSB
(Mark One)
[X]QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934
For the quarterly period ended November 30, 1999
[ ]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 0-2288
(Unaudited)
HOSOI GARDEN MORTUARY, INC.
(Exact name of small business issuer as specified in its charter)
State of Hawaii No. 99-0088064
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
30 North Kukui Street
(Corner of Nuuanu Avenue
and Kukui Street)
Honolulu, Hawaii 96817
(Address of principal executive offices) (Zip Code)
(Issuer's telephone number) (808) 538 - 3877
N/A
(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, and (2) has been subject to such filing
requirements for the past 90 days.
Yes XX No
1,670,566 shares of Common Stock
Outstanding at November 30, 1999
<PAGE> 2
HOSOI GARDEN MORTUARY, INC.
_ _ _ _ _ _ _ _ _ _ _ _ _ _
CONTENTS
_ _ _ _
[CAPTION]
Pages
[S] [C]
DISCLAIMER OF OPINION 1
PART I - Financial Information
Item 1.Financial Statements
Balance Sheet 2
Statements of Income and Comprehensive Income 3
Statements of Cash Flows 4
Notes to Financial Statements 5 - 11
Item 2.Management's Discussions and Analysis of Financial
Condition and Results of Operations 12
PART II - Other Information 13
SIGNATURES 14
<PAGE> 3
DISCLAIMER OF OPINION
_ _ _ _ _ _ _ _ _ _ _
To the Board of Directors
Hosoi Garden Mortuary, Inc.
The accompanying balance sheet of
HOSOI GARDEN MORTUARY, INC.
as of November 30, 1999, and the related statements of income and
comprehensive income for the three-months and six-months ended November
30, 1999 and 1998 and cash flows for the six-months ended November 30,
1999 and 1998 were not audited by us and accordingly, we do not express
an opinion on them.
January 11, 2000
Endo & Company
Honolulu, Hawaii
1
<PAGE> 4
HOSOI GARDEN MORTUARY, INC.
BALANCE SHEET
_ _ _ _ _ _
November 30, 1999
[CAPTION]
A S S E T S
[S] [C]
CURRENT ASSETS
Cash and cash equivalents (Note 2) $ 1,796,210
Securities available-for-sale, at market (Note 3) 874,659
Accounts receivable, less allowance for doubtful accounts
of $78,780 270,954
Income taxes receivable 14,847
Inventories 336,468
Prepaid expenses and others 61,809
Deferred income taxes (Note 6) 40,048
-----------
TOTAL CURRENT ASSETS 3,394,995
-----------
INVESTMENTS
Garden Life Plan, Ltd. (Note 4) 2,099,572
Woolsey-Hosoi Mortuary Service, LLC (Note 5) 14,845
Cemetery plots 1,350
Securities held-to-maturity, at cost (Note 3) 125,922
-----------
2,241,689
-----------
PROPERTY AND EQUIPMENT, at cost, less accumulated depreciation 1,493,239
-----------
OTHER ASSETS 105,111
-----------
TOTAL ASSETS $ 7,235,034
===========
[CAPTION]
L I A B I L I T I E S
[S] [C]
CURRENT LIABILITIES
Accounts payable $ 454,723
Accrued liabilities 186,028
------------
TOTAL CURRENT LIABILITIES 640,751
------------
DEFERRED INCOME TAXES (Note 6) 168,544
------------
[CAPTION]
S T O C K H O L D E R S ' E Q U I T Y
[S] [C]
CAPITAL CONTRIBUTED (Note 10)
Common stock, par value $.20 per share; authorized
3,625,000 shares, issued 2,187,140 shares 437,428
Less 292,789 reacquired shares (58,778)
------------
TOTAL CAPITAL CONTRIBUTED 378,650
------------
RETAINED EARNINGS (Note 10) 6,046,639
------------
ACCUMULATED OTHER COMPREHENSIVE INCOME, net of
deferred taxes (Notes 3 and 9) 81,732
------------
TREASURY STOCK, 223,785 shares, at cost (Note 10) (81,282)
------------
TOTAL STOCKHOLDERS' EQUITY 6,425,739
------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 7,235,034
============
[FN]
See the accompanying Notes to Financial Statements
(Unaudited)
2
<PAGE> 5
HOSOI GARDEN MORTUARY, INC.
STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
[CAPTION]
Three-Months Ended Six-Months Ended
November 30, November 30,
--------------------- -------------------------
1999 1998 1999 1998
---------- --------- ----------- -----------
[S] [C] [C] [C] [C]
NET SALES AND SERVICES $ 618,006 $ 645,231 $ 1,304,519 $ 1,272,884
COST OF SALES AND SERVICES 465,008 476,793 956,181 955,014
---------- --------- ----------- -----------
GROSS PROFIT 152,998 168,438 348,338 317,870
SELLING, GENERAL AND
ADMINISTRATIVE EXPENSES 192,055 166,224 378,385 321,630
---------- --------- ---------- -----------
OPERATING INCOME (LOSS) (39,057) 2,214 (30,047) (3,760)
OTHER INCOME (EXPENSE)
Parking, dividends, interest
and miscellaneous income 49,545 35,180 93,041 71,802
Interest expense (268) - (268) (1,643)
----------- --------- ---------- -----------
INCOME BEFORE INCOME
TAXES AND EQUITY IN
EARNINGS OF GARDEN
LIFE PLAN, LTD. 10,220 37,394 62,726 66,399
INCOME TAXES (Note 7) 160 7,694 17,890 19,310
------------ --------- ---------- -----------
INCOME BEFORE EQUITY
IN EARNINGS OF GARDEN
LIFE PLAN, LTD. 10,060 29,700 44,836 47,089
EQUITY IN EARNINGS OF GARDEN
LIFE PLAN, LTD., net of
deferred income taxes
(Note 4) - 25,915 8,664 80,630
------------ --------- ---------- -----------
NET INCOME 10,060 55,615 53,500 127,719
OTHER COMPREHENSIVE INCOME-
Net unrealized gains(loss)
on available-for-sale
securities, net of income
taxes 18,580 80,348 (4,347) 13,115
------------ --------- ----------- ----------
COMPREHENSIVE INCOME 28,640 135,963 49,153 140,834
AVERAGE NUMBER OF COMMON
SHARES OUTSTANDING
(Note 8) $1,670,649 $1,729,583 $1,671,908 $1,734,697
========== ========== ========== ==========
EARNINGS PER COMMON SHARE
(Note 8) $.01 $.03 $.03 $.07
==== ==== ==== ====
[FN]
See the accompanying Notes to Financial Statements
(Unaudited)
3
<PAGE> 6
HOSOI GARDEN MORTUARY, INC.
STATEMENTS OF CASH FLOWS
_ _ _ _ _ _ _ _ _ _ _ _
Six-Months Ended November 30, 1999 and 1998
[CAPTION]
1999 1998
----------- -----------
[S] [C] [C]
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 53,500 $ 127,719
Adjustments to reconcile net income to
net cash provided by operations
Depreciation 33,669 33,007
Gain on sale of securities (7,139) (9,061)
Undistributed earnings of affiliate (9,416) (87,634)
Increase in allowance for doubtful accounts (16,050) (15,422)
Cash value of life insurance policies (415) 1,219
Deferred income taxes (5,342) (42,982)
(Increase) decrease in certain assets
Accounts receivable 66,549 1,166
Income taxes receivable (6,773) 34,840
Dividend receivable - 750,000
Inventories (192,493) 9,999
Prepaid expenses and others (2,944) 640
(Decrease) increase in certain liabilities
Accounts payable 194,752 (11,721)
Accrued liabilities 54,312 (58,913)
------------ ----------
NET CASH PROVIDED BY OPERATING
ACTIVITIES 162,210 732,857
------------ -----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property and equipment (20,817) (14,553)
Increase in securities (138,412) (838,886)
Investment in Woolsey-Hosoi Mortuary
Service, LLC - (15,000)
Distribution from investment in LLC 7,500 -
Redemption of life insurance policy - 11,485
Proceeds from sale of securities 877,272 805,523
Purchase of certificate of deposit - (600,000)
Premiums payments on life insurance policies (2,811) (3,811)
------------ ----------
NET CASH (USED IN) PROVIDED BY
INVESTING ACTIVITIES 722,732 (655,242)
------------ ----------
CASH FLOWS FROM FINANCING ACTIVITIES - Purchase
of reacquired shares (16,894) (78,115)
------------ ----------
NET CASH USED IN FINANCING ACTIVITIES (16,894) (78,115)
------------ ----------
NET INCREASE (DECREASE) 868,048 (500)
------------ -----------
CASH AND CASH EQUIVALENTS, beginning of period 928,162 498,871
CASH AND CASH EQUIVALENTS, end of period $ 1,796,210 $ 498,371
=========== ===========
[FN]
See the accompanying Notes to Financial Statements
(Unaudited)
4
<PAGE> 7
HOSOI GARDEN MORTUARY, INC.
NOTES TO FINANCIAL STATEMENTS
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _
November 30, 1999 and 1998
(1) Basis of presentation
Use of estimates - 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,
the disclosure of contingent assets and liabilities at the date of the
financial statements and the reported amounts of revenues and expenses during
the reporting periods. Actual results could differ from those estimates.
Reclassification - Certain amounts in 1998 have been reclassified to conform
with the 1999 presentation.
(2) Cash and cash equivalents
The Company considers all highly liquid investments with a maturity of three
months or less when purchased to be cash equivalents.
(3) Investment securities
The Company held investments in the following types of securities:
[CAPTION]
Gross Gross
Amortized Unrealized Unrealized Fair
Cost Gain Loss Market
----------- ---------- ---------- -----------
[S] [C] [C] [C] [C]
November 30, 1999
-------------------
Available-for-sale
Equity securities $ 106,911 $ 21,402 $ 8,758 $ 119,555
Mutual Funds 635,980 127,084 7,960 755,104
----------- ----------- --------- ----------
742,891 148,486 16,718 874,659
Held-to-Maturity
U. S. Treasury Notes 125,922 125 3,582 122,465
----------- ---------- --------- ----------
Totals $ 868,813 $ 148,611 $ 20,300 $ 997,124
=========== ========== ========= ==========
November 30, 1998
-------------------
Available-for-sale
Equity securities $ 106,133 $ 36,909 $ 8,125 $ 134,917
Mutual Funds 601,144 90,878 150 691,872
----------- ---------- --------- ----------
707,277 127,787 8,275 826,789
Held-to-Maturity
U. S. Treasury Notes 844,871 3,290 426 847,735
----------- ---------- ---------- ----------
Totals $ 1,552,148 $ 131,077 $ 8,701 $1,674,524
=========== ========== ========= ==========
[FN]
(Unaudited)
5
<PAGE> 8
HOSOI GARDEN MORTUARY, INC.
NOTES TO FINANCIAL STATEMENTS
_ _ _ _ _ _ _ _ _ _ _ _ _ _
November 30, 1999 and 1998
(3) Investment securities (continued)
The maturities for all debt securities held at November 30, 1999 were:
[CAPTION]
Available-for-Sale Held-to-Maturity
--------------------- ----------------------
Amortized Market Amortized Market
Cost Value Cost Value
---------- ------- --------- ---------
[S] [C] [C] [C] [C]
Within 1 year $ - $ - $ - $ -
After 1 year
through 5 years - - 92,041 89,252
After 5 years - - 33,881 33,213
---------- ------- --------- ---------
$ - $ - $ 125,922 $ 122,465
========== ======= ========= =========
[FN]
The Company sold available-for-sale and held-to-maturity securities for
$877,272 and $805,523 in 1999 and 1998, respectively. The net realized gains
of $7,139 and $9,061 in 1999 and 1998, respectively, is reflected in
earnings. The cost of the securities sold was based on the cost of all the
shares of each such security held at the time of sale.
The unrealized holding gains on investment securities available-for-sale as of
November 30, 1999, and reported as a separate component of Stockholders'
Equity are as follows:
[CAPTION]
1999
---------
[S] [C]
Unrealized holding gains, net of losses $ 131,768
Deferred income tax on net unrealized holding gains (50,036)
---------
$ 81,732
=========
(4) Garden Life Plan, Ltd.
Investment in Garden Life Plan, Ltd. (GLP) represents the Company's 50% share,
in the underlying equity in the net assets, accounted for under the equity
method of accounting for investments in common stock, of Garden Life Plan,
Ltd., a Hawaii corporation engaged in the sales of pre-need funeral plans
which are serviced solely by the Company.
[FN]
(Unaudited)
6
<PAGE> 9
HOSOI GARDEN MORTUARY, INC.
NOTES TO FINANCIAL STATEMENTS
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _
November 30, 1999 and 1998
(4) Garden Life Plan, Ltd. (continued)
All payments received from the sale of pre-need funeral plans up to an amount
equal to 30% of the total price plus any sales tax or other charges are
retained by GLP as its compensation. The balance is deposited in trust funds
at Pacific Century Trust. GLP is entitled to all earnings from funds held in
trust which amounted to $1,508,657 and $2,136,577 for the years ended May 31,
1999 and 1998, respectively, and is reflected in Other Income. Trust assets
are not included in the financial statements of the Company nor GLP.
Audited financial statements of this subsidiary as of May 31, 1999 and 1998
reflected the following summarized financial position and results of
operations:
[CAPTION]
1998(As
1999 Restated)
----------- -----------
[S] [C] [C]
Total assets $ 6,129,660 $ 6,981,992
Total liabilities 1,179,107 2,959,262
----------- -----------
Total stockholders' equity $ 4,950,553 $ 4,022,730
=========== ===========
Total revenues $ 439,573 $ 617,214
=========== ===========
Operating loss $ (131,566) $ (84,329)
=========== ===========
Other income - trust fund income $ 1,508,657 $ 2,136,577
=========== ===========
Net income $ 880,869 $ 1,283,447
=========== ===========
Equity in earnings of Garden Life Plan, Ltd. represents the Company's share of
the earnings of Garden Life Plan, Ltd. for its three-months ended August 31,
1999.
(5) Woolsey-Hosoi Services, LLC
On July 7, 1998, the Company in partnership with Woolsey Funeral & Cemetery
Services, Inc. formed Woolsey-Hosoi Mortuary Services, LLC (Woolsey-Hosoi), a
limited liability company, to provide funeral services to market sectors not
previously serviced by the Company. The Company's initial capital
contribution to Woolsey-Hosoi was $15,000.
The Company provides Woolsey-Hosoi with embalming services, assistance with
funeral arrangements and facilities use and related charges. The revenues
from these services provided to Woolsey-Hosoi is reflected in Net sales and
services which amounted to $6,663 or .5% and $6,925 or .5% of Net sales and
services in 1999 and 1998, respectively.
[FN]
(Unaudited)
7
<PAGE> 10
HOSOI GARDEN MORTUARY, INC.
NOTES TO FINANCIAL STATEMENTS
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _
November 30, 1999 and 1998
(6) Deferred income taxes
Deferred taxes are recognized for differences between the basis of assets and
liabilities for financial statements and income tax purposes. The deferred
assets and liabilities represent the future tax consequences of those
differences, which will be either taxable or deductible when the assets and
liabilities are recovered or settled. The deferred tax liability results from
the recognition of unrealized gains, net of losses, on investment securities
for financial statement purposes and recognition of gains or losses when
securities are sold for income tax purposes, and the equity method of
accounting for the investment in subsidiary as explained under Garden Life
Plan, Ltd. above. Under the equity method the Company's share of earnings of
the subsidiary is reported for tax purposes only when distributions of
earnings are received as dividends.
The deferred tax asset results from the use of the reserve method in
accounting for uncollectible accounts receivable in the financial statements
and the use of the direct write-off method for income tax purpose and the
accrual of vacation and sick leave when earned for the financial statements
and the recognition for income tax purposes when paid.
At November 30, 1999, the Company's retained earnings included approximately
$2,099,572 of undistributed earnings of Garden Life Plan, Ltd.
(7) Income taxes
The provision for income taxes consists of the following:
[CAPTION]
1999 1998
-------- ---------
[S] [C] [C]
Current:
Federal $ 20,518 $ 16,860
State 3,466 3,147
-------- ---------
Total Current 23,984 20,007
-------- ---------
Deferred:
Federal (5,128) (586)
State (966) (111)
-------- ----------
Total Deferred (6,094) (697)
-------- ----------
Total Federal and State $ 17,890 $ 19,310
======== =========
[FN]
(Unaudited)
8
<PAGE> 11
HOSOI GARDEN MORTUARY, INC.
NOTES TO FINANCIAL STATEMENTS
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _
November 30, 1999 and 1998
(8) Earnings per share
Earnings per common share has been computed on the basis of a weighted average
shares outstanding of 1,671,908 for 1999 and 1,734,697 for 1998.
(9) Comprehensive income
In the year ended May 31, 1999, the Company adopted Statement of Financial
Accounting Standards No. 130, Reporting Comprehensive Income, which requires
that unrealized gains and losses on available-for-sale securities be included
in other comprehensive income.
(10)Reacquired shares
Capital contributed is reduced for shares of the Company reacquired after June
30, 1987. Payments for shares in excess of the par value of each share
acquired has been charged to additional paid-in capital. Purchase of
reacquired shares have exceeded the balance of additional paid-in capital and
therefore, Retained Earnings is charged for the cost in excess of par value.
The 223,785 shares reflected as Treasury Stock as of November 30, 1999
reflects the shares acquired before July 1, 1987.
(11) Prior period adjustment
Subsequent to the issuance of the Company's 1999 financial statements, it was
determined that the amount of income taxes provided in the financial
statements was understated. As a result additional income taxes of $20,943
has been charged to retained earnings in the current year.
(12)Year 2000 Issue
The Year 2000 Issue arises because most computer software programs allocate
only two digits to the data field for year on the assumption that the first
two digits will be 19. Such programs, absent reprogramming, will thus
interpret the year 2000 as the year 1900 and 2001 as 1901 and so on. The Year
2000 Issue affects both computer hardware (i.e. the embedded logic of computer
chips) and computer software and could impact both the ability to enter data
into computer programs and the ability of such programs to process data
correctly.
[FN]
(Unaudited)
9
<PAGE> 12
HOSOI GARDEN MORTUARY, INC.
NOTES TO FINANCIAL STATEMENTS
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _
November 30, 1999 and 1998
(12)Year 2000 Issue (continued)
The Company's operations, like those of many business entities, including
infrastructure providers, vendors and others whose performance can affect the
operations of the Company, may be impacted by the Year 2000 Issue with
microprocessors and programs. Unless such microprocessors or programs are
modified or replaced, they may not function properly after December 31, 1999,
causing system failure or miscalculations.
Based on recent assessments, the Company has determined that it will be
required to modify or replace significant portions of its software and
hardware so that these systems will properly utilize dates beyond December 31,
1999. The Company presently believes that with modifications or replacement
of existing software and certain hardware, the Year 2000 Issue can be
mitigated. However, if such modifications and replacements are not made, or
are not completed timely, the Year 2000 Issue could have a material impact on
the operations of the Company.
The Company has identified the system in the matrix below as mission-critical
which may be affected by the Year 2000 Issue. This system was subject to the
following four stages of work: awareness, assessment, remediation and
validation/testing.
The following matrix summarizes the Company's Year 2000 remediation work for
its mission-critical system. The remediation is either complete, in progress
or yet to be addressed.
[S] [C] [C] [C] [C]
Valiation/
System Description Awareness Asessement Remediation Testing
- ------------------ --------- ---------- ----------- -----------
General Office Complete Complete In Progress In Progress
Desktop Systems
(Windows based
spreadsheet and
word processing)
The Company has solicited information from vendors and others, whose Year 2000
compliance could affect the Company, regarding the status of assessment,
testing and remediation of their computer applications. The Company, is
continuing its efforts to determine the status of Year 2000 compliance of
entities whose systems could impact the operations of the Company. In
general, those who have responded to the Company have indicated they too
are working on the Year 2000 Issue. There can be no guarantee, however,
that all such persons or others who have not been identified or solicited or
who has responded, as the case may be, but on whose operations the Company
directly or indirectly depends, will be in the compliance in a timely
manner. Any failure by some or all of these persons to be in compliance
could adversely affect the operations of the Company.
[FN]
(Unaudited)
(10)
<PAGE> 13
HOSOI GARDEN MORTUARY, INC.
NOTES TO FINANCIAL STATEMENTS
-----------------------------
November 30, 1999 and 1998
(12) Year 2000 Issue (continued)
The Company will utilize both internal and external resources to reprogram,
replace, test and implement software and equipment for Year 2000 modifications.
The Company has spent approximately $3,500 to replace general office desktop
systems. At the present time, the Company believes that the amount of money
needed to complete the Year 2000 remediation will not be material and is
estimated not to exceed $25,000.
The Company does not have any substantial contingency plans because it
believes that its remediation efforts will be successful. The Company has,
however, identified specific procedures required to keep its operations
functioning in the event of delays or machine failures.
Because of the unprecedented nature of the Year 2000 Issue, its effects and
the success of remediation efforts will not be fully determinable until the
Year 2000 and thereafter. There is no assurance that the Company will be
Year 2000 ready, that the Company's remediation efforts will be successful
in whole or in part, or that parties with whom the Company does business
will be Year 2000 compliant.
If the steps taken by the Company and its third parties are not successful,
the Company could experience operational difficulties. In addition, the
preceding information, inlcuding the nature, timing, extent and costs of
the Company's remediation efforts are subject to change, and such changes
could be material.
[FN]
(Unaudited)
11
<PAGE> 14
HOSOI GARDEN MORTUARY, INC.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
---------------------------------------------
November 30, 1999 and 1998
Changes in financial condition
There have been no material adverse changes in financial condition from the
end of the preceding fiscal year to the end of the current quarter ended
November 30, 1999.
The following capital and working capital ratio at November 30, 1999 is as
follows:
[S] [C]
Working capital $2,754,244
Working capital ratio 5.3:1
Changes in results of operations
Cost of Sales and Services - Cost of sales and services as a percent of net
sales decreased to 73.3% from 75.0% for the six-months ended November 30,
1999 and 1998. The decrease is due principally to an increase in sales,
as well as a decrease in rent and real property taxes.
Selling, General and Administrative Expenses - Selling, general and
administrative expenses as a percent of net sales increased to 29.0%
from 25.3% for the six-months ended November 30, 1999 over 1998. The
increase is due to increases in education expense, salaries and wages
and legal fees.
Income Taxes - The effective income tax rate has decreased to 28.5% for
1999 from 29.1% for 1998.
Other income (expense) - Other income as a percent of net sales increased
to 7.1% from 5.5% for the six-months ended November 30, 1999 over 1998.
The increase in other income resulted primarily from an increase in
interest income and non-recurring revenues from data processing for
Garden Life Plan, Ltd.
[FN]
<12>
<PAGE> 15
HOSOI GARDEN MORTUARY, INC.
PART II - OTHER INFORMATION
---------------------------
November 30, 1999 and 1998
Item 6. Exhibits and Reports on Form 8-K
(b) Reports on Form 8-K - There were no reports on Form 8-K filed for the
six-months ended November 30, 1999.
[FN]
13
<PAGE> 16
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 there unto duly authorized. The information furnished reflects
all adjustments which are, in the opinion of management, necessary to a
fair statement of the results for the interim periods.
HOSOI GARDEN MORTUARY, INC.
(Registrant)
Date 01/14/00 CLIFFORD HOSOI
----------------------------------
Clifford Hosoi, President
Date 01/14/00 KEITH NUMAZU
----------------------------------
Keith Numazu
Corporate Treasurer and Bookkeeper
[FN]
14
<PAGE> 16
EXHIBIT INDEX
-------------
EXHIBIT
NO. DESCRIPTION
- ------- -----------
27 Financial Date Schedule, which is submitted electroncially to
the Securities and Exchange Commission for information only
and not filed.
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
This schedule contains summary financial information extracted from the
balance sheet and the statements of income and comprehensive income filed as
part of the quarterly report on Form 10-QSB and is qualified in its entirety by
reference to such quarterly report on Form 10-QSB.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> MAY-31-2000
<PERIOD-END> NOV-30-1999
<CASH> 1796210
<SECURITIES> 874659
<RECEIVABLES> 349734
<ALLOWANCES> 78780
<INVENTORY> 336468
<CURRENT-ASSETS> 3394995
<PP&E> 1493239
<DEPRECIATION> 33669
<TOTAL-ASSETS> 7235034
<CURRENT-LIABILITIES> 640751
<BONDS> 0
0
0
<COMMON> 378650
<OTHER-SE> 6047089
<TOTAL-LIABILITY-AND-EQUITY> 7235034
<SALES> 1304519
<TOTAL-REVENUES> 1304519
<CGS> 956181
<TOTAL-COSTS> 956181
<OTHER-EXPENSES> 378385
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 268
<INCOME-PRETAX> 62726
<INCOME-TAX> 17890
<INCOME-CONTINUING> 44836
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 53500
<EPS-BASIC> .03
<EPS-DILUTED> .03
</TABLE>
