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 October 31, 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: 1461145
of the (no-par) nonvoting common and 100000 of the (no-par) voting common
stock.
LINCOLN INTERNATIONAL CORPORATION
CONSOLIDATED BALANCE SHEETS
ASSETS 10-31-96 7-31-96
Current assets:
Cash 229042 224743
Account receivable 22064 12409
Total current assets 251106 237152
Net property, plant and equipment 1115228 1121633
Total assets 1366334 1358785
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable 31406 11085
Accrued expenses 78703 72331
Current maturities of long-term debt 9256 9256
Total current liabilities 119365 92672
Long-term debt, less current maturities 385244 387250
Stockholders equity
Common stock:
Voting 100000 shares O/S 50000 50000
Nonvoting 1461145 shares O/S 730573 730573
Additional paid in capital 469447 469446
Retained earnings -388295 -371156
Total stockholders' equity 861725 878863
Total liabilities and stockholders' equity 1366334 1358785
LINCOLN INTERNATIONAL CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDING OCTOBER 31
10-31-96 10-31-95
Revenues:
Net service and operating revenues 73814 74931
73814 74931
Cost and expenses:
Cost of service and operating revenues 23193 18600
Operating, general and administrative expenses 59833 80728
Interest expense related to finance subsidiary 0 4537
83026 103865
Income - Loss from operations -9212 -28934
Other income - expense:
Interest expense -10099 -23000
Miscellaneous 2171 5432
-7928 -17568
Income - Loss before income taxes -17140 -46502
Provision for income taxes 0 0
Net income - loss -17140 -46502
Net income - loss per common share -0.01 -0.03
LINCOLN INTERNATIONAL CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOW
FOR THE YEAR TO DATE TO OCTOBER 31
1996 1995
Cash flows from operating activities:
Net income (loss) -17140 -46502
Adjustments to reconcile net income
to net cash provided by (used in)
operating activities:
Depreciation and amortization 12147 14882
Other receivables -9655 12409
Prepaid expenses 0 -2609
Accounts payable 20321 -24625
Accrued expenses 6372 -2130
Total adjustments 29185 -2073
Net cash provided by (used in) operating activities 12045 -48575
Cash flows from investing activities:
Purchases of property and equipment -5740 0
Net cash provided by (used in) investing activities -5740 0
Cash flows from financing activities:
Net borrowings (repayments) under
short term notes payable 0 0
Net borrowings (repayments) under
long term notes payable -2006 -4018
Net cash provided by (used in) financing activities -2006 -4018
Net increase (-decrease) in cash 4299 -52593
Cash, beginning of year 224743 332682
Cash, end of period 229042 280089
Supplemental disclosure of cash flow information:
Cash paid during the year for interest 9993 18681
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
OCTOBER 31, 1996
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
$3,000 or 4% during the quarter ended October 31, 1996 as compared to the
quarter ended October 31, 1995. Operating costs for the quarter ended
October 31, 1996 were down approximately $8,000 or 14% as compared to the
quarter ended October 31, 1995.
Net revenue from stockyard operations decreased by approximately
$236,000 or 76% during the quarter ended October 31, 1995 as compared to
the quarter ended October 31, 1994. Operating costs for the quarter ended
October 31, 1995 were down approximately $201,000 or 92% as compared to the
quarter ended October 31, 1994.
Bourbon Stock Yard did not have any capital commitments at
October 31, 1996.
Bourbon Stock Yard had approximately $34,000 in accounts payable
and accrued liabilities at October 31, 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 $1,000 or 1% for the
quarter ended October 31, 1996 as compared to the quarter ended October 31,
1995. Costs for the same period were down approximately $21,000 or 20% as
compared to 1995. This reduction in revenues and expenses is due to the
leasing of the Bourbon Stock Yard property.
Net revenues decreased by approximately $280,000 or 78% for the
quarter ended October 31, 1995 as compared to the quarter ended October 31,
1994. Costs for the same period were down approximately $233,000 or 65% as
compared to 1994. This reduction in revenues and expenses is due to the
leasing of the Bourbon Stock Yard property and to the sale of the small
loan office of Lincoln Finance Co. in November of 1994.
Working capital at July 31, 1996 was approximately $144,480. At
October 31, 1996 working capital was approximately $131,700. The Company
expects a positive cash flow during the current fiscal year.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
OCTOBER 31, 1996
There were no capital commitments at October 31, 1996.
NO DIVIDENDS WERE PAID BY THE COMPANY DURING THE INTERIM PERIOD.
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 October 31, 1996 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
Ronald Osborn, Treasurer
Dated this 15th day of December 1996
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