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 January 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: 1461145
of the (no-par) nonvoting common and 100000 of the (no-par) voting common
stock.
LINCOLN INTERNATIONAL CORPORATION
CONSOLIDATED BALANCE SHEETS
ASSETS 1-31-97 7-31-96
Current assets:
Cash 210356 224743
Other receivables 12474 12409
Total current assets 222830 237152
Net property, plant and equipment 1091580 1121633
Total assets 1314410 1358785
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable 39586 11085
Accrued expenses 44551 72331
Current maturities of long-term debt 5155 9256
Total current liabilities 89292 92672
Long-term debt, less current maturities 388521 387250
Stockholders equity
Common stock:
Voting 100000 shares O/S 50000 50000
Nonvoting 1461145 shares O/S 730573 730573
Additional paid in capital 469446 469446
Retained earnings -413422 -371156
Total stockholders' equity 836597 878863
Total liabilities and stockholders' equity 1314410 1358785
LINCOLN INTERNATIONAL CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDING JANUARY 31
1-31-97 1-31-96
Revenues:
Net service and operating revenues 75715 71934
75715 71934
Cost and expenses:
Cost of service and operating revenues 23067 38974
Operating, general and administrative expenses 94036 89487
Interest expense related to finance subsidiary 0 3025
117103 131486
Income - Loss from operations -41388 -59552
Other income - expense:
Interest expense -8747 -21000
Gain on sale of assets 24999 1939
Miscellaneous 9 569186
16261 550125
Income - Loss before income taxes -25127 490573
Provision for income taxes 0 0
Net income - loss -25127 490573
Net income - loss per common share -0.02 .30
LINCOLN INTERNATIONAL CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDING JANUARY 31
1-31-97 1-31-96
Revenues:
Net service and operating revenues 149529 146865
149529 146865
Cost and expenses:
Cost of service and operating revenues 46260 57574
Operating, general and administrative expenses 153869 170215
Interest expense related to finance subsidiary 0 7562
200129 235351
Income - Loss from operations -50600 -88486
Other income - expense:
Interest expense -18846 -44000
Gain on sale of assets 24999 1939
Miscellaneous 2180 574618
8333 532557
Income - Loss before income taxes -42267 444071
Provision for income taxes 0 0
Net income - loss -42267 444071
Net income - loss per common share -0.03 0.27
LINCOLN INTERNATIONAL CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOW
FOR THE YEAR TO DATE TO JANUARY 31
1997 1996
Cash flows from operating activities:
Net income (loss) -42267 444071
Adjustments to reconcile net income
to net cash provided by (used in)
operating activities:
Depreciation and amortization 24294 29763
Other receivables -65 8219
Non-cash dividend from subsidiary 0 -563800
Other 0 7234
Prepaid expenses 0 -3617
Accounts payable 28501 -18132
Accrued expenses -27780 -48251
Total adjustments 24950 -588584
Net cash provided by (used in) operating activities -17317 -144513
Cash flows from investing activities:
Proceeds from sale of fixed assets 36500 2500
Purchases of property and equipment -30740 -3438
Net cash provided by (used in) investing activities 5760 -938
Cash flows from financing activities:
Net borrowings (repayments) under
short term notes payable -4101 1632
Principal payments on long-term debt 1271 -9015
Net cash provided by (used in) financing activities -2830 -7383
Net increase (-decrease) in cash -14387 -152834
Cash, beginning of year 224743 332682
Cash, end of period 210356 179848
Supplemental disclosure of cash flow information:
Cash paid during the year for interest 18733 55827
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
JANUARY 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 increased by approximately
$4,000 or 6% during the quarter ended January 31, 1997 as compared to the
quarter ended January 31, 1996. For the six months ending January 31,
1997, net revenue increased by approximately $500 or .3% as compared to
1996. This increase is a result of changes in the amount of space leased
to tenants.
Operating costs for the quarter ended January 31, 1997 were
approximately the same as compared to the same quarter ended January 31,
1996. For the six months ending January 31, 1997, operating costs
decreased approximately $17,000 or 19% as compared to 1996. This decrease
was the result of decreases in the cost of insurance and in depreciation.
Net revenue from stockyard operations decreased by approximately
$287,700 or 81% during the quarter ended January 31, 1996 as compared to
the quarter ended January 31, 1995. For the six months ending January 31,
1996, net revenue decreased by approximately $523,800 or 78% as compared to
1995. This decrease is a result of leasing the property to Michigan
Livestock Exchange.
Operating costs for the quarter ended January 31, 1996 decreased
approximately $239,600 or 86% as compared to the quarter ended January 31,
1995. For the six months ending January 31, 1996 operating costs decreased
approximately $440,500 or 88% as compared to 1995. This decrease was the
result of leasing the property to Michigan Livestock Exchange.
Operating costs, which include depreciation and amortization,
account for 48% and 59% of operating revenues for the years 1997 and 1996
respectively.
Inventories of cattle and hogs on the farm in the local area
continues to increase a small percentage each year. However, each year a
larger percentage of animals are moving directly from the farm to feedlots
and packing houses.
Bourbon Stock Yard did not have any capital commitments at
January 31, 1997.
Bourbon Stock Yard had approximately $10,700 in accounts payable
and accrued liabilities at January 31, 1997. This is a normal amount at
this time of the year and is well within its cash flow ability to handle
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
JANUARY 31, 1997
these obligations as they become due. All funds in excess of expenses are
available to the parent.
Consolidated Operations
Net revenues decreased by approximately $7,800 or 9% for the
quarter ended January 31, 1997 as compared to the quarter ended January 31,
1996. Net revenues for the six months ending January 31, 1997 decreased by
approximately $12,000 or 7% as compared to 1996. This decrease is due
primarily to the decreased interest income of the parent.
Operating costs for the same period were down approximately
$26,600 or 17% as compared to 1996. For the six months ending January 31,
1997, operating costs were down approximately $60,000 or 22% as compared to
1996. This decrease is due primarily to the decreased costs of interest,
taxes, and depreciation.
Net revenues decreased by approximately $300,000 or 78% for the
quarter ended January 31, 1996 as compared to the quarter ended January 31,
1995. Net revenues for the six months ending January 31, 1996 decreased by
approximately $580,000 or 78% as compared to 1995. This decrease is due
primarily to the decreased revenue at Bourbon Stock Yards.
Operating costs for the same period were down approximately
$252,000 or 62% as compared to 1995. For the six months ending January 31,
1996, operating costs were down approximately $479,000 or 71% as compared
to 1995. This decrease is due primarily to the decrease in costs
associated with the Bourbon Stock Yards.
Operating costs, which include depreciation and amortization,
account for 144% and 170% of net sales and operating revenues for the years
1997 and 1996 respectively.
Working capital at July 31, 1996 was approximately $144,480. At
January 31, 1997 working capital was approximately $133,540.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
JANUARY 31, 1997
There were no capital commitments at January 31, 1997.
NO DIVIDENDS WERE PAID BY THE COMPANY DURING THE INTERIM PERIOD.
Lincoln International Corporation was not required to file a Form 8K during
the current quarter.
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 January 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
Ronald Osborn, Treasurer
Dated this 28th day of February 1997
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