FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D. C.
_________
QUARTERLY REPORT UNDER SECTION 13 OR 15 (D) OF
THE SECURITIES EXCHANGE ACT OF 1934
_________
For the Quarter ended October 31, 1997 Commission file No. 0-0767
_________
LINCOLN INTERNATIONAL CORPORATION
(Exact Name of Registrant as specified in its charter)
Kentucky 61-0575092
(State of other Jurisdiction (I.R.S. Employer
incorporation or organization) Identification Number)
P.O. Box 43129
120 Village Square
Louisville, Kentucky 40243
(Address or principal executive offices) (Zip Code)
(Registrants Telephone Number, Including Area Code) (502) 245-8814
Indicate by check 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 of 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
Indicate the numbers of shares outstanding of each of the issuer' classes of
common stock, as of the close of the period covered by this report: 1761145
of the (no-par) voting common stock.
LINCOLN INTERNATIONAL CORPORATION
CONSOLIDATED BALANCE SHEETS
ASSETS 10-31-97 7-31-97
Current assets:
Cash 140814 156141
Account receivable 11472 9732
Prepaid expenses 2212 0
Total current assets 154498 165873
Net property, plant and equipment 1070970 1070929
Total assets 1225468 1236802
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable 38946 28594
Accrued expenses 44833 42968
Current maturities of long-term debt 5443 5443
Total current liabilities 89222 77005
Long-term debt, less current maturities 381793 385511
Stockholders equity
Common stock:
Voting 1761145 shares O/S 1300019 1300019
Retained earnings -545566 -525733
Total stockholders' equity 754453 774286
Total liabilities and stockholders' equity 1225468 1236802
LINCOLN INTERNATIONAL CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDING OCTOBER 31
10-31-97 10-31-96
Revenues:
Net service and operating revenues 69067 73814
69067 73814
Cost and expenses:
Cost of service and operating revenues 19749 23193
Operating, general and administrative expenses 60448 59833
80197 83026
Income - Loss from operations -11130 -9212
Other income - expense:
Interest expense -8727 -10099
Miscellaneous 724 2171
-8003 -7928
Income - Loss before income taxes -19133 -17140
Provision for income taxes 0 0
Net income - loss -19133 -17140
Net income - loss per common share -0.01 -0.01
LINCOLN INTERNATIONAL CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOW
FOR THE YEAR TO DATE TO OCTOBER 31
1997 1996
Cash flows from operating activities:
Net income (loss) -19133 -17140
Adjustments to reconcile net income
to net cash provided by (used in)
operating activities:
Depreciation and amortization 10163 12147
Other receivables -1740 -9655
Prepaid expenses -2212 0
Accounts payable 10352 20321
Accrued expenses 1865 6372
Total adjustments 18428 29185
Net cash provided by (used in) operating activities -705 12045
Cash flows from investing activities:
Purchases of property and equipment -10904 -5740
Net cash provided by (used in) investing activities -10904 -5740
Cash flows from financing activities:
Net borrowings (repayments) under
short term notes payable 0 0
Net borrowings (repayments) under
long term notes payable -3718 -2006
Net cash provided by (used in) financing activities -3718 -2006
Net increase (-decrease) in cash -15327 4299
Cash, beginning of year 156141 224743
Cash, end of period 140814 229042
Supplemental disclosure of cash flow information:
Cash paid during the year for interest 8736 9993
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
OCTOBER 31, 1997
Agri-Business
Bourbon Stockyard
During July, 1995, Lincoln International Corporation entered into
an agreement with Michigan Livestock Exchange whereby Michigan Livestock
Exchange leased the Bourbon Stock Yard operations. Bourbon's revenue now
consists of rental income.
Net revenue from stockyard operations decreased by approximately
$4,000 or 6% during the quarter ended October 31, 1997 as compared to the
quarter ended October 31, 1996. Operating costs for the quarter ended
October 31, 1997 were down approximately $5,000 or 16% as compared to the
quarter ended October 31, 1996.
Net revenue from stockyard operations decreased by approximately
$3,000 or 4% during the quarter ended October 31, 1996 as compared to the
quarter ended October 31, 1995. Operating costs for the quarter ended
October 31, 1996 were down approximately $8,000 or 14% as compared to the
quarter ended October 31, 1995.
Bourbon Stock Yard did not have any capital commitments at
October 31, 1997.
Bourbon Stock Yard had approximately $33,000 in accounts payable
and accrued liabilities at October 31, 1997. This is a normal amount at
this time of the year and is well within its cash flow ability to handle
these obligations as they become due. All funds in excess of expenses are
available to the parent.
Consolidated Operations
Net revenues decreased by approximately $6,000 or 8% for the
quarter ended October 31, 1997 as compared to the quarter ended October 31,
1996. Costs for the same period were down approximately $4,000 or 5% as
compared to 1996. This reduction in revenues and expenses is due to the
leasing of the Bourbon Stock Yard property.
Net revenues decreased by approximately $1,000 or 1% for the
quarter ended October 31, 1996 as compared to the quarter ended October 31,
1995. Costs for the same period were down approximately $21,000 or 20% as
compared to 1995. This reduction in revenues and expenses is due to the
leasing of the Bourbon Stock Yard property.
Working capital at July 31, 1997 was approximately $88,900. At
October 31, 1997 working capital was approximately $65,300. The Company
expects a positive cash flow during the current fiscal year.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
OCTOBER 31, 1997
There were no capital commitments at October 31, 1997.
NO DIVIDENDS WERE PAID BY THE COMPANY DURING THE INTERIM PERIOD.
The unaudited consolidated financial statements include the
accounts of the Company and all of its subsidiaries after eliminating all
material inter-company accounts and transactions. They reflect all
adjustments which are necessary in the opinion of management to fairly
state the financial position of the Company at October 31, 1997 and the
result of its operations and cash flow for the period then ended.
-SIGNATURES-
Pursuant to the requirement 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.
LINCOLN INTERNATIONAL CORPORATION
Lee Sisney, President
Richard Dolin, Treasurer
Dated this 15th day of December 1997
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