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, 1999 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 Co(502) 245-8814
Indicate by check whether the registrant (1) has filed a 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: 7972 of
the (no-par) voting common stock.
LINCOLN INTERNATIONAL CORPORATION
CONSOLIDATED BALANCE SHEETS
1/31/99 7/31/98
ASSETS
Current assets:
Cash 645801 90994
Other receivables 10881 10911
Prepaid expenses 7828 3141
Total current assets 664510 105046
Net property, plant and equipment 1037785 1042265
Total assets 1702295 1147311
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable 45570 12311
Accrued expenses 10534 21559
Current maturities of long-term debt 4407 5849
Deferred rent 13500 18810
Deposits 25000 25000
Total current liabilities 99011 83529
Long-term debt, less current maturities 378776 380205
Stockholders' equity
Common Stock
Voting 7972 shares O/S 1904898 1281998
Retained earnings -680390 -598421
Total stockholders' equity 1224508 683577
Total liabilities and stockholders' equity 1702295 1147311
LINCOLN INTERNATIONAL CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDING JANUARY 31
1/31/99 1/31/98
Revenues:
Net service and operating revenues 62548 76758
62548 76758
Cost and expenses:
Cost of service and operating revenues 33894 22304
Operating, general and administrative expense 69804 73785
103698 96089
Income - Loss from operations -41150 -19331
Other income - expense:
Interest expense -7482 -9695
Gain on sale of assets 0 0
Miscellaneous -215 8
-7697 -9687
Income - Loss before income taxes -48847 -29018
Provision for income taxes 0 0
Net income - loss -48847 -29018
Net income - loss per common share -6.13 -0.01
LINCOLN INTERNATIONAL CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDING JANUARY 31
1/31/99 1/31/98
Revenues:
Net service and operating revenues 127727 145825
127727 145825
Cost and expenses:
Cost of service and operating revenues 56051 42053
Operating, general and administrative expense 135263 134233
191314 176286
Income - Loss from operations -63587 -30461
Other income - expense:
Interest expense -19006 -18422
Gain on sale of assets 0 0
Miscellaneous 624 732
-18382 -17690
Income - Loss before income taxes -81969 -48151
Provision for income taxes 0 0
Net income - loss -81969 -48151
Net income - loss per common share -10.28 -0.02
LINCOLN INTERNATIONAL CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOW
FOR THE YEAR TO DATE TO JANUARY 31
1999 1998
Cash flows from operating activities:
Net income (loss) -81969 -48151
Adjustments to reconcile net income
to net cash provided by (used in)
operating activities:
Depreciation and amortization 20326 21687
Other receivables 30 -1243
Prepaid expenses -4687 -341
Accounts payable 33259 5578
Accrued expenses -16335 -19166
Total adjustments 32593 6515
Net cash provided by (used in) operating activit -49376 -41636
Cash flows from investing activities:
Proceeds from sale of fixed assets 0 0
Purchases of property and equipment -15846 -10904
Net cash provided by (used in) investing activit -15846 -10904
Cash flows from financing activities:
Net borrowings (repayments) under
short term notes payable 0 0
Proceeds from the issuance of common stock 622900 0
Principal payments on long-term debt -2871 -2606
Net cash provided by (used in) financing activit 620029 -2606
Net increase (-decrease) in cash 554807 -55146
Cash, beginning of year 90994 156141
Cash, end of period 645801 100995
Supplemental disclosure of cash flow information:
Cash paid during the year for interest 19006 18422
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
JANUARY 31, 1999
Agri-Business
Bourbon Stockyard
Net revenue from the stockyard operation decreased by approximately
$14,200, or 18.5% during the quarter ended January 31, 1999 as compared to
the quarter ended January 31, 1998.
Operating costs for the quarter ended January 31, 1999 increased by
approximately $11,600, or 52% as compared to the quarter ended January 31,
1998. Increased cost relative property taxes is cited as the primary cause
of this increase.
Bourbon Stock Yard did not have any capital commitments at January
31, 1999.
Consolidated Operations
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.
On May 29, 1998, the Company entered into an agreement to sell the
real estate on which the stockyard is located for approximately $3,400,000.
On March 5, 1999, the Company actually closed this real estate sale with the
Home of the Innocents, Inc. This transaction will result in a gain of
approximately $2,400,000 before income taxes which will be included in
operations during 1999.
The Company has an offering open to Individuals or entities who own
common stock in Lincoln International Corporation and are bona fide residents
of Kentucky at the time of purchase of these units. The units consist of one
(1) share of common stock an(1) warrant to acquire an additional share of
Lincoln common stock at any time over a three year period following the
purchase of the unit at graduated prices. The price of each unit is one
hunred fifty ($150) and the option price of the warrant for the additional
share is $150 for the first year following purchase of the unit; $160 for
the second year; and $170 for the third year. All owners of Lincoln
International Corporation common stock as of November 30, 1998 who have a
Kentucky mailing address will receive this offering document, but only who
are bona fide residents of Kentucky for tax purposes on the date of the
purchase is made will be eligible to participate . This offering is being
conducted under exemptions from the registration requirements of both the
Securities Act of 1933 and the Kentucky Securities Act in the interests of
keeping offering expenses as low as possible while raising operating capital
for the corporation. Total capital of $622900 had been raised in this
offering through January 31, 1999.
Operating cost for the quarter ending January 31, 1999 were down
approximately $4,000, or 5.4% as compared to the quarter ended January 31,
1998.
There were no capital commitments at January 31, 1999.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
JANUARY 31, 1999
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, 1999 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
under-signed thereunto duly authorized.
LINCOLN INTERNATIONAL CORPORATION
Lee Sisney, President
Richard Dolin, Treasurer
Dated this 17th day of March, 1999
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
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