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, 1998 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:
3,000,000 of (no-par) nonvoting common at January 31, 1998 and 1,761,145 of
(no-par) voting common stock at July 31, 1997.
LINCOLN INTERNATIONAL CORPORATION
CONSOLIDATED BALANCE SHEETS
ASSETS 1-31-98 7-31-97
Current assets:
Cash 100995 156141
Other receivables 10975 9732
Prepaid expenses 341 0
Total current assets 112311 165873
Net property, plant and equipment 1060146 1070929
Total assets 1172457 1236802
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable 34172 28594
Accrued expenses 23802 42968
Current maturities of long-term debt 5443 5443
Total current liabilities 63417 77005
Long-term debt, less current maturities 382905 385511
Stockholders equity
Common stock:
Voting 1761145 shares O/S 0 1300019
Nonvoting 3000000 shares O/S 1300019 0
Retained earnings -573884 -525733
Total stockholders' equity 726135 774286
Total liabilities and stockholders' equity 1172457 1236802
LINCOLN INTERNATIONAL CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDING JANUARY 31
1-31-98 1-31-97
Revenues:
Net service and operating revenues 76758 75715
76758 75715
Cost and expenses:
Cost of service and operating revenues 22304 23067
Operating, general and administrative expenses 73785 94036
96089 117103
Income - Loss from operations -19331 -41388
Other income - expense:
Interest expense -9695 -8747
Gain on sale of assets 0 24999
Miscellaneous 8 9
-9687 16261
Income - Loss before income taxes -29018 -25127
Provision for income taxes 0 0
Net income - loss -29018 -25127
Net income - loss per common share -0.01 -0.02
LINCOLN INTERNATIONAL CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDING JANUARY 31
1-31-98 1-31-97
Revenues:
Net service and operating revenues 145825 149529
145825 149529
Cost and expenses:
Cost of service and operating revenues 42053 46260
Operating, general and administrative expenses 134233 153869
176286 200129
Income - Loss from operations -30461 -50600
Other income - expense:
Interest expense -18422 -18846
Gain on sale of assets 0 24999
Miscellaneous 732 2180
-17690 8333
Income - Loss before income taxes -48151 -42267
Provision for income taxes 0 0
Net income - loss -48151 -42267
Net income - loss per common share -0.02 -0.03
LINCOLN INTERNATIONAL CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOW
FOR THE YEAR TO DATE TO JANUARY 31
1998 1997
Cash flows from operating activities:
Net income (loss) -48151 -42267
Adjustments to reconcile net income
to net cash provided by (used in)
operating activities:
Depreciation and amortization 21687 24294
Other receivables -1243 -65
Prepaid expenses -341 0
Accounts payable 5578 28501
Accrued expenses -19166 -27780
Total adjustments 6515 24950
Net cash provided by (used in) operating activities -41636 -17317
Cash flows from investing activities:
Proceeds from sale of fixed assets 0 36500
Purchases of property and equipment -10904 -30740
Net cash provided by (used in) investing activities -10904 5760
Cash flows from financing activities:
Net borrowings (repayments) under
short term notes payable 0 -4101
Principal payments on long-term debt -2606 1271
Net cash provided by (used in) financing activities -2606 -2830
Net increase (-decrease) in cash -55146 -14387
Cash, beginning of year 156141 224743
Cash, end of period 100995 210356
Supplemental disclosure of cash flow information:
Cash paid during the year for interest 18422 18733
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
JANUARY 31, 1998
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
$2,500 or 2% during the quarter ended January 31, 1998 as compared to the
quarter ended January 31, 1997. Operating costs for the quarter ended
January 31, 1998 were down approximately $4,900 or 12% as compared to the
same quarter ended January 31, 1997.
Net revenue from stockyard operations increased by approximately
$2,600 or 2% during the quarter ended January 31, 1997 as compared to the
quarter ended January 31, 1996. Operating costs for the quarter ended
January 31, 1997 decreased approximately $35,000 or 18% as compared to the
quarter ended January 31, 1996.
Bourbon Stock Yard did not have any capital commitments at
January 31, 1998.
Bourbon Stock Yard had approximately $5,600 in accounts payable
and accrued liabilities at January 31, 1998. 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 increased by approximately $1,000 or 1% for the
quarter ended January 31, 1998 as compared to the quarter ended January 31,
1997. Operating costs for the quarter ending January 31, 1998 were down
approximately $21,000 or 18% as compared to 1997. This reduction in
expenses is due to the leasing of the Bourbon Stock Yard property.
Net revenues increased by approximately $3,800 or 5% for the
quarter ended January 31, 1997 as compared to the quarter ended January 31,
1996. Operating costs for the same period were down approximately $14,400
or 11% as compared to 1996. This reduction in expenses is due to the
leasing of the Bourbon Stock Yard property.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
JANUARY 31, 1998
There were no capital commitments at January 31, 1998.
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, 1998 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 28th day of February 1998
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