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, 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 188829 224743
Other receivables 21138 12409
Total current assets 209967 237152
Net property, plant and equipment 1080884 1121633
Total assets 1290851 1358785
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable 34299 11085
Accrued expenses 47758 72331
Current maturities of long-term debt 5155 9256
Total current liabilities 87212 92672
Long-term debt, less current maturities 387269 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 -433649 -371156
Total stockholders' equity 816370 878863
Total liabilities and stockholders' equity 1290851 1358785
LINCOLN INTERNATIONAL CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDING APRIL 30
4-30-97 4-30-96
Revenues:
Net service and operating revenues 75443 87493
75443 87493
Cost and expenses:
Cost of service and operating revenues 21566 27839
Operating, general and administrative expenses 65951 64701
Interest expense related to finance subsidiary 0 1911
87517 94451
Income - Loss from operations -12074 -6958
Other income - expense:
Interest expense -8492 -16516
Gain on sale of assets 0 712794
Miscellaneous 340 4294
-8152 700572
Income - Loss before income taxes -20226 693614
Provision for income taxes 0 0
Net income - loss -20226 693614
Net income - loss per common share -0.01 .42
LINCOLN INTERNATIONAL CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE NINE MONTHS ENDING APRIL 30
4-30-97 4-30-96
Revenues:
Net service and operating revenues 224972 234358
224972 234358
Cost and expenses:
Cost of service and operating revenues 67826 85413
Operating, general and administrative expenses 219820 234916
Interest expense related to finance subsidiary 0 9473
287646 329802
Income - Loss from operations -62674 -95444
Other income - expense:
Interest expense -27338 -60516
Gain on sale of assets 24999 714733
Miscellaneous 2520 578912
181 1233129
Income - Loss before income taxes -62493 1137685
Provision for income taxes 0 0
Net income - loss -62493 1137685
Net income - loss per common share -0.04 0.70
LINCOLN INTERNATIONAL CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOW
FOR THE YEAR TO DATE TO APRIL 30
1997 1996
Cash flows from operating activities:
Net income (loss) -62493 1137685
Adjustments to reconcile net income
to net cash provided by (used in)
operating activities:
Depreciation and amortization 34989 43063
Gain on sale of fixed assets -24999 -714733
Other receivables 8729 20757
Non-cash dividend from subsidiary 0 -563800
Prepaid expenses 0 -7091
Accounts payable 23212 -50481
Accrued expenses -24573 -37307
Total adjustments 17358 -1309592
Net cash provided by (used in) operating activities -45135 -171907
Cash flows from investing activities:
Proceeds from sale of fixed assets 36500 780470
Purchases of property and equipment -23197 -5000
Net cash provided by (used in) investing activities 13303 775470
Cash flows from financing activities:
Principal payments on long-term debt -4082 -653872
Net cash provided by (used in) financing activities -4082 -653872
Net increase (-decrease) in cash -35914 -50309
Cash, beginning of year 224743 332682
Cash, end of period 188829 282373
Supplemental disclosure of cash flow information:
Cash paid during the year for interest 27330 72846
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
APRIL 30, 1997
Agri-Business
Bourbon Stockyard
During the last month of fiscal year 1995 the Bourbon Stock Yard
operations were leased to Michigan Livestock Exchange. This lease and
other property leased to tenants make up the income of the Bourbon Stock
Yard property.
Net revenue from stockyard operations decreased by approximately
$13,000 or 15% during the quarter ended April 30, 1997 as compared to the
quarter ended April 30, 1996. For the nine months ending April 30, 1997,
net revenue decreased by approximately $12,300 or 5% as compared to 1996.
This decrease is a result of the occupancy rate of leased property.
Operating costs for the quarter ended April 30, 1997 decreased
approximately $8,800 or 22% as compared to the same quarter ended April 30,
1996. For the nine months ending April 30, 1997, operating costs decreased
approximately $25,500 or 20% as compared to 1996. This decrease was the
result of decreases in the cost of utilities and building expenses
associated with space leased to tenants.
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 nine 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 quarter ended April 30,
1995. For the nine 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.
Operating costs, which include depreciation and amortization,
account for 46% and 55% of operating revenues for the years 1997 and 1996
respectively.
Bourbon Stock Yard did not have any capital commitments at
April 30, 1997.
Bourbon Stock Yard had approximately $19,000 in accounts payable
and accrued liabilities at April 30, 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
APRIL 30, 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 $16,000 or 17% for the
quarter ended April 30, 1997 as compared to the quarter ended April 30,
1996. Net revenues for the nine months ending April 30, 1997 decreased by
approximately $586,000 or 72% as compared to 1996. This decrease is due
primarily to a non-cash dividend received from Lincoln Finance Co., a
wholly owned subsidiary.
Operating costs for the quarter ended April 30, 1997 were down
approximately $5,000 or 5% as compared to 1996. For the nine months ending
April 30, 1997, operating costs were down approximately $32,700 or 10% as
compared to 1996. This decrease is due primarily to the decreased costs
associated with the Bourbon Stock Yards.
Net revenues decreased by approximately $250,000 or 73% for the
quarter ended April 30, 1996 as compared to the quarter ended April 30,
1995. Net revenues for the nine 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 Yards and the receipt
of a non-cash dividend from Lincoln Finance Co.
Operating costs for the quarter ended April 30, 1996 were down
approximately $259,000 or 74% as compared to 1995. For the nine months
ending April 30, 1996, operating costs were down approximately $710,000 or
69% as compared to 1995. This decrease is due primarily to the decrease in
costs associated with the Bourbon Stock Yards.
Working capital at July 31, 1996 was approximately $144,480. At
April 30, 1997 working capital was approximately $122,800.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
APRIL 30, 1997
There were no capital commitments at April 30, 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 April 30, 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 A. Dolin, Treasurer
Dated this 1st day of June 1997
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