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, 1996 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: 1532320
of the (no-par) nonvoting common and 100000 of the (no-par) voting common
stock.
LINCOLN INTERNATIONAL CORPORATION
CONSOLIDATED BALANCE SHEETS
ASSETS 4-30-96 7-31-95
Current assets:
Cash 282373 332682
Other receivables 43465 22708
Prepaid expenses 0 7091
Total current assets 325838 362481
Net property, plant and equipment 1134605 1260885
Total assets 1460443 1623366
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable 16129 66610
Accrued expenses 56302 93609
Current maturities of long-term debt 9043 318809
Total current liabilities 81474 479028
Long-term debt, less current maturities 389534 733640
Stockholders equity
Common stock:
Voting 100000 shares O/S 50000 50000
Nonvoting 1532320 shares O/S 766160 766160
Additional paid in capital 471300 471300
Retained earnings -287154 -865891
Less: Treasury stock -10871 -10871
Total stockholders' equity 989435 410698
Total liabilities and stockholders' equity 1460443 1623366
LINCOLN INTERNATIONAL CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDING APRIL 30
4-30-96 4-30-95
Revenues:
Net service and operating revenues 87493 309209
Net product sales 0 34488
Finance charges and other finance income 0 -1675
87493 342022
Cost and expenses:
Cost of service and operating revenues 27839 241026
Cost of products sold 0 30048
Operating, general and administrative expenses 64701 77107
Interest expense related to finance subsidiary 1911 3350
94451 351531
Income - Loss from operations -6958 -9509
Other income - expense:
Interest expense -16516 -22822
Gain on sale of assets 712794 0
Miscellaneous 4294 5464
700572 -17358
Income - Loss before income taxes 693614 -26867
Provision for income taxes 0 0
Net income - loss 693614 -26867
Net income - loss per common share 0.42 -0.02
LINCOLN INTERNATIONAL CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE NINE MONTHS ENDING APRIL 30
4-30-96 4-30-95
Revenues:
Net service and operating revenues 234358 955342
Net product sales 0 98479
Finance charges and other finance income 0 76348
234358 1130169
Cost and expenses:
Cost of service and operating revenues 85413 754108
Cost of products sold 0 85581
Operating, general and administrative expenses 234916 269360
Provision for credit losses on finance receivables 0 7436
Interest expense related to finance subsidiary 9473 11725
329802 1128210
Income - Loss from operations -95444 1959
Other income - expense:
Interest expense -60516 -64912
Gain on sale of assets 714733 121008
Miscellaneous 578912 16695
1233129 72791
Income - Loss before income taxes 1137685 74750
Provision for income taxes 0 1618
Net income - loss 1137685 73132
Net income - loss per common share 0.70 0.04
LINCOLN INTERNATIONAL CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOW
FOR THE YEAR TO DATE TO APRIL 30
1996 1995
Cash flows from operating activities:
Net income (loss) 1137685 73132
Adjustments to reconcile net income
to net cash provided by (used in)
operating activities:
Depreciation and amortization 43063 53554
Provision for credit losses on
finance receivables 0 -12848
Gain on sale of fixed assets -714733 3867
Other receivables 20757 1933
Inventories 0 -185
Non-cash dividend from subsidiary -563800 0
Prepaid expenses -7091 9034
Accounts payable -50481 -26085
Income taxes payable 0 1618
Accrued expenses -37307 -22074
Deferred insurance commissions 0 -2435
Total adjustments -1309592 6379
Net Cash provided by (used in) operating activities -171907 79511
Cash flows from investing activities:
Loans repaid or sold 0 533995
Proceeds from sale of fixed assets 780470 3200
Purchases of property and equipment -5000 -17173
Net cash provided by (used in) investing activities 775470 520022
Cash flows from financing activities:
Net borrowings (repayments) under
short term notes payable 0 -90379
Principal payments on long-term debt -653872 -129075
Net cash provided by (used in) financing activities -653872 -219454
Net increase (-decrease) in cash -50309 380079
Cash, beginning of year 332682 21238
Cash, end of period 282373 401317
Supplemental disclosure of cash flow information:
Cash paid during the year for interest 72846 66459
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
APRIL 30, 1996
Agri-Business
Bourbon Stockyard
During the last month of fiscal year 1995 the Bourbon Stock Yard
operations were leased to Michigan Livestock Exchange. Under this lease
Bourbon is to receive a minimum monthly rental of $18,000 per month. If
seventy five percent (75%) of the net profits exceed $18,000 then Bourbon
would receive that amount as the lease payment.
Net revenue from stockyard operations decreased by approximately
$227,300 or 72% during the quarter ended April 30, 1996 as compared to the
quarter ended April 30, 1995. For the 9 months ending April 30, 1996 net
revenue decreased by approximately $751,100 or 76% as compared to 1995.
This decrease is a result of leasing the property to Michigan Livestock
Exchange.
Operating costs for the quarter ended April 30, 1996 decreased
approximately $227,500 or 89% as compared to the same quarter ended
April 30, 1995. For the 9 months ending April 30, 1996 operating costs
decreased approximately $646,200 or 88% as compared to 1995. This decrease
was the result of leasing the property to Michigan Livestock Exchange.
Net revenue from stockyard operations was down approximately
$45,000 or 13% during the quarter ended April 30, 1995 as compared to the
quarter ended April 30, 1994. For the 9 months ending April 30, 1995 net
revenue decreased by approximately $8,000 or 1% as compared to 1994.
Operating costs for the quarter ended April 30, 1995 were down
approximately $27,000 or 9% as compared to the same quarter ended April 30,
1994. For the 9 months ending April 30, 1995 operating costs decreased
approximately $1,000 as compared to 1994.
Operating costs, which include amortization and depreciation,
account for 55% and 79% of operating revenues for the years 1996 and 1995
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.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
APRIL 30, 1996
Bourbon Stock Yard did not have any capital commitments at
April 30, 1996.
Bourbon Stock Yard had approximately $18,000 in accounts payable
and accrued liabilities at April 30, 1996. 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 $250,000 or 73% for the
quarter ending April 30, 1996 as compared to the quarter ending April 30,
1995. Net revenues for the 9 months ending April 30, 1996 decreased by
approximately $248,000 or 23% as compared to 1995. This decrease is due
primarily to the decreased revenue at Bourbon Stock Yard and the receipt
of a non-cash dividend of $563,800 from Lincoln Finance Co., a wholly owned
subsidiary.
Operating costs for the quarter ending April 30, 1996 were down
approximately $259,000 or 74% as compared to 1995. For the 9 months
operating costs were down approximately $710,000 or 69% as compared to
1995. This decrease is due primarily to the decrease costs associated with
the Bourbon Stock Yards.
Net revenues decreased by approximately $93,000 or 23% for the
quarter ending April 30, 1995 as compared to the quarter ending April 30,
1994 due to decreased income at Lincoln Finance Co . Net revenues for the
9 months ending April 30, 1995 decreased by approximately $78,000 or 7% as
compared to 1994. This decrease is attributed to Lincoln Finance Co.
Operating costs for the quarter ending April 30, 1995 were down
approximately $39,000 or 10% as compared to 1994. For the 9 months
operating costs were up approximately $15,000 or 1% as compared to 1994.
There were no capital commitments at April 30, 1996.
Working capital at July 31, 1995 was approximately -$117,000. At
April 30, 1996 working capital was approximately $244,000.
NO DIVIDENDS WERE PAID BY THE COMPANY DURING THE INTERIM PERIOD.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
APRIL 30, 1996
Lincoln International Corporation was not required to file a Form 8K during
the last quarter.
The unaudited consolidated financial statements include the
accounts of the Company and all of it's 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, 1996 and the
result of it's 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 it's
behalf by the undersigned thereunto duly authorized.
LINCOLN INTERNATIONAL CORPORATION
Lee Sisney, President
Ronald Osborn, Treasurer
Dated this 1st day of June 1996
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