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 April 30, 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:
0 of the (no-par) nonvoting common and 3986 of the (no-par) voting common
stock.
LINCOLN INTERNATIONAL CORPORATION
CONSOLIDATED BALANCE SHEETS
ASSETS 4-30-98 7-31-97
Current assets:
Cash 83186 156141
Other receivables 51491 9732
Total current assets 134677 165873
Net property, plant and equipment 1051864 1070929
Total assets 1186541 1236802
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable 6951 28594
Accrued expenses 21329 42968
Current maturities of long-term debt 5443 5443
Total current liabilities 33723 77005
Long-term debt, less current maturities 444505 385511
Stockholders equity
Common stock:
Nonvoting 0 shares O/S 0 1300019
Voting 3986 shares O/S 1300019 0
Treasury stock -17558 0
Retained earnings -574148 -525733
Total stockholders' equity 708313 774286
Total liabilities and stockholders' equity 1186541 1236802
LINCOLN INTERNATIONAL CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDING APRIL 30
4-30-98 4-30-97
Revenues:
Net service and operating revenues 60631 75443
60631 75443
Cost and expenses:
Cost of service and operating revenues 5681 21566
Operating, general and administrative expenses 47830 65951
53511 87517
Income - Loss from operations 7120 -12074
Other income - expense:
Interest expense -8684 -8492
Miscellaneous 1300 340
-7384 -8152
Income - Loss before income taxes -264 -20226
Provision for income taxes 0 0
Net income - loss -264 -20226
Net income - loss per common share -0.07 -0.01
LINCOLN INTERNATIONAL CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE NINE MONTHS ENDING APRIL 30
4-30-98 4-30-97
Revenues:
Net service and operating revenues 206456 224972
206456 224972
Cost and expenses:
Cost of service and operating revenues 47734 67826
Operating, general and administrative expenses 182063 219820
229797 287646
Income - Loss from operations -23341 -62674
Other income - expense:
Interest expense -27106 -27338
Gain on sale of assets 0 24999
Miscellaneous 2032 2520
-25074 181
Income - Loss before income taxes -48415 -62493
Provision for income taxes 0 0
Net income - loss -48415 -62493
Net income - loss per common share -12.15 -0.04
LINCOLN INTERNATIONAL CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOW
FOR THE YEAR TO DATE TO APRIL 30
1998 1997
Cash flows from operating activities:
Net income (loss) -48415 -62493
Adjustments to reconcile net income
to net cash provided by (used in)
operating activities:
Depreciation and amortization 31851 34989
Gain on sale of fixed assets 0 -24999
Other receivables -41759 8729
Accounts payable -21643 23212
Accrued expenses -21639 -24573
Total adjustments -53190 17358
Net cash provided by (used in) operating activities -101605 -45135
Cash flows from investing activities:
Proceeds from sale of fixed assets 0 36500
Purchases of property and equipment -12786 -23197
Net cash provided by (used in) investing activities -12786 13303
Cash flows from financing activities:
Purchase of treasury stock -17558 0
Net borrowings (repayments) on long-term debt 58994 -4082
Net cash provided by (used in) financing activities 41436 -4082
Net increase (-decrease) in cash -72955 -35914
Cash, beginning of year 156141 224743
Cash, end of period 83186 188829
Supplemental disclosure of cash flow information:
Cash paid during the year for interest 27106 27330
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
APRIL 30, 1998
Agri-Business
Bourbon Stockyard
Net revenue from stockyard operations decreased by approximately
$14,800 or 19.6% during the quarter ended April 30, 1998 as compared to the
quarter ended April 30, 1997. For the nine months ending April 30, 1998,
net revenue decreased by approximately $18,500 or 8.2% as compared to 1997.
This decrease is a result of the occupancy rate of leased property.
Operating costs for the quarter ended April 30, 1998 decreased
approximately $34,000 or 38.9% as compared to the same quarter ended
April 30, 1997. For the nine months ending April 30, 1998, operating costs
decreased approximately $57,800 or 20% as compared to 1997. This decrease
was the result of decreases in the cost of utilities and building expenses
associated with space leased to tenants.
Bourbon Stock Yard did not have any capital commitments at
April 30, 1998.
Bourbon Stock Yard had approximately $9,600 in accounts payable
and accrued liabilities at April 30, 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.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
APRIL 30, 1998
Consolidated Operations
The following resolution was passed by the Board of Directors at
the October 18, 1997 meeting: Be It Hereby Resolved, that the voting
common stock of Lincoln International Corporation (the only class of common
stock presently outstanding) is reverse split such that for every 400
shares outstanding prior to the reverse split, 1 (one) new share shall be
issued. There shall be no change in the total number of shares authorized,
which shall remain at 3,000,000. However, the existing stock certificates
shall be canceled and new ones issued evidencing a new ownership position
based on the 400 for 1 ratio. For holdings or partial holdings of common
stock numbering less than the required 400 shares, scrip shall be issued
evidencing the number of shares so held. Holders of said scrip shall have
a period of 120 days of issuance to either (1) accumulate sufficient scrip
from other holders thereof to acquire new shares at the prescribed ratio of
400 for 1 or (2) present the scrip to the Company to be redeemed at a price
of $.30 per share represented by the scrip. These options must be
exercised within the 120 day period. If neither option is exercised during
the 120 day life of the scrip, the holder of said scrip shall have no
further claim against the Company, all rights having been expunged by the
expiration of the life of the scrip.
As of April 5, 1998, the reverse split was completed resulting in
Lincoln International having 3,986 shares issued and outstanding with a
total of 3,000,000 shares authorized and a total number of 412
shareholders.
Net revenues decreased by approximately $14,800 or 19.6% for the
quarter ended April 30, 1998 as compared to the quarter ended April 30,
1997. Net revenues for the nine months ending April 30, 1998 decreased by
approximately $18,500 or 8.2% as compared to 1997.
Operating costs for the quarter ended April 30, 1998 were down
approximately $34,000 or 38.9% as compared to 1997. For the nine months
ending April 30, 1998, operating costs were down approximately $57,800 or
20% as compared to 1997. This decrease is due primarily to the decreased
costs associated with the Bourbon Stock Yards.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
APRIL 30, 1998
There were no capital commitments at April 30, 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 April 30, 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 A. Dolin, Treasurer
Dated this 8th day of June 1998
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