SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 10-QSB
[ X ] Quarterly Report Pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934
For the quarterly period ended March 31, 1996
[ ] TRANSITION REPORT UNDER SECTION 10 OR 15(d) OF THE
EXCHANGE ACT
Commission File Number 0-3926
ANTARES RESOURCES CORPORATION
(Exact name of small business issuer as specified in its charter)
New York 13-1950459
(State or other jurisdiction (I.R.S.
Identification number)
of incorporation or organization)
2345 Friendly Road, Fernandina Beach, Florida 32034
(address of principal executive offices)
(904)261-8607
(Issuer's Telephone Number, Including Area Code)
(Former name, former address and former fiscal year,
if changed since last report)
Check whether the issuer(1) filed all reports required to be filed by
Section 13 or 15(d) of the Exchange Act during the past 12
months (or for 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
State the number of shares outstanding of each of the issuer's
classes of common equity, as of the latest
practicable date.
Outstanding Equity Securities at May 9, 1996
Class of Securities Outstanding Shares
Common Stock,
.001 par value, 23,315,398 shares
Preferred Stock,
.01 par value
Series B ($ 2.50 Liquidation Preference) 90,000 shares
Transitional Small Business Disclosure Format
Yes X No
ANTARES RESOURCES CORPORATION
Index to Quarterly Report on Form 10-QSB
For the Quarter Ended March 31, 1996
Part 1. FINANCIAL INFORMATION
Page Number
Item 1. Financial Statements
Consolidated Balance Sheets as of March 31, 1996
and September 30, 1995. 3-4
Consolidated Statements of Operations for the three
and six month periods ended March 31, 1996 and
1995. 5-6
Consolidated Statements of Cash Flows
for the six month periods ended March 31, 1996 and 1995. 7
Notes to Consolidated Financial Statements. 8-9
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations. 9-13
Signature Page 14
Part II. Other information
Item 1. Legal Proceedings
Reference is made to Note 5 on Page 9 of the Consolidated
Financial Statements.
Item 2. Changes in Securities
(Non Applicable)
Item 3. Defaults upon Senior Securities
(Non Applicable)
Item 4. Submission of Matters to a Vote of Security Holders
(Non Applicable)
Item 5. Other Information
(Non Applicable)
Item 6. Exhibits and Reports on Form 8-K
(None)
Item 6a. EX-27 Financial Data Schedule
<TABLE>
ANTARES RESOURCES CORPORATION AND SUBSIDIARIES
<CAPTION>
CONSOLIDATED BALANCE SHEETS
ASSETS
March 31, September 30,
1996 1995
(Unaudited)
<S> <C> <C>
Current assets:
Cash and equivalents $ 1,880,758 $ 6,120,164
Accounts receivable, net of allowance
for doubtful accounts of $ 43,000
in March and $23,000 in September 652,512 16,753
Current portion of notes receivable 2,586 24,019
Current portion of stockholder loans
receivable 5,101 0
Inventories 1,499,746 397,191
Prepaid expenses 91,221 76,871
Total current assets 4,131,924 6,634,998
Property and equipment:
Real estate held for development 1,757,751 1,754,245
Leasehold improvements 33,893 0
Machinery and equipment 362,063 64,788
Displays and racks 116,133 111,133
Vehicles 163,721 48,871
Office equipment 47,054 23,196
2,480,615 2,002,233
Less accumulated depreciation (111,401) (47,613)
2,369,214 1,954,620
Other assets:
Investments 1,002,500 2,500
Notes receivable, net of current portion 33,426 34,477
Stockholder loans receivable,
net of current portion 54,899 0
Contract rights 2,900,000 2,900,000
Intangibles 474,158 285,000
Deferred financing costs 30,000 30,000
Deferred acquisition costs 0 44,167
4,494,983 3,296,144
$10,996,121 $11,885,762
</TABLE>
<TABLE>
ANTARES RESOURCES CORPORATION AND SUBSIDIARIES
<CAPTION>
CONSOLIDATED BALANCE SHEETS
LIABILITIES AND STOCKHOLDERS' EQUITY
March 31, September 30,
1996 1995
(Unaudited)
<S> <C> <C>
Current liabilities:
Current maturities of long-term debt $ 36,473 $ 9,122
Current portion of capital lease
obligation 36,134 35,068
Current portion of subordinated debt 150,000 350,000
Accounts payable and accrued expenses 347,886 212,916
Due to stockholders 0 8,505
Payroll taxes payable 44,829 28,485
Total current liabilities 615,322 644,096
Long-term debt, net of current maturities 63,876 24,473
Capital lease obligation, net of current
portion 378,020 396,357
Subordinated debt, net of current portion 150,000 250,000
1,207,218 1,314,926
Stockholders' equity:
Preferred stock, $.01 par value
5,000,000 shares authorized
Series A - 100,000 shares issued 1,000
Series B - 135,000 shares issued 1,350 1,350
Common stock, $.001 par value
200,000,000 shares authorized
22,715,372 shares issued and
outstanding in March 22,716
12,209,988 shares issued and
outstanding in September 12,210
Additional paid-in capital 13,672,841 13,455,772
Accumulated deficit (3,908,004) (2,899,496)
9,788,903 10,570,836
$10,996,121 $11,885,762
</TABLE>
<TABLE>
ANTARES RESOURCES CORPORATION AND SUBSIDIARIES
<CAPTION>
CONSOLIDATED STATEMENTS OF OPERATIONS
Six months ended March 31,
1996 1995*
(Unaudited)
<S> <C> <C>
Revenues:
Alternative fuel $ 552,840 $ 383,027
Sun and skin-care products 666,973 275,635
Trailer sales 372,952 0
Waste disposal 0 168,634
1,592,765 827,296
Cost of revenues:
Alternative fuel 342,909 250,058
Sun and skin-care products 317,813 175,997
Trailer sales 430,898 0
Waste disposal 0 118,082
Acquired gross profit 0 55,846
1,091,620 599,983
Gross profit 501,145 227,313
Selling expenses 254,812 64,611
General and administrative expenses 1,254,497 305,656
Project development expenses 77,303 0
1,586,612 370,267
Loss from operations (1,085,467) (142,954)
Other expenses (income):
Finance charges 0 93,500
Interest expense 40,477 24,967
Interest income (105,001) 0
Gain on sale of equipment (12,435) 0
(76,959) 118,467
Loss before cumulative effect of
change in marketable
securities accounting principle (1,008,508) (261,421)
Cumulative effect on prior years of
change in marketable
securities accounting principle 0 2,500
Net loss $(1,008,508) $ (258,921)
Net loss per common share $ (0.07) $ (0.06)
Weighted average number of common
shares outstanding 13,814,204 4,127,378
</table?
* Activities of operating subsidiaries are for the three-month period from
January 1, 1995 (date of acquisition) through March 31, 1995.
</TABLE>
<TABLE>
ANTARES RESOURCES CORPORATION AND SUBSIDIARIES
<CAPTION>
CONSOLIDATED STATEMENTS OF OPERATIONS
Three months ended March 31,
1996 1995
(Unaudited)
<S> <C> <C>
Revenues:
Alternative fuel $ 218,631 $ 383,027
Sun and skin-care products 687,016 275,635
Trailer sales 336,449 0
Waste disposal 0 168,634
1,242,096 827,296
Cost of revenues:
Alternative fuel 148,422 250,058
Sun and skin-care products 312,837 175,997
Trailer sales 397,091 0
Waste disposal 0 118,082
Acquired gross profit 0 55,846
858,350 599,983
Gross profit 383,746 227,313
Selling expenses 153,523 64,611
General and administrative expenses 711,745 290,757
Project development expenses 20,463 0
885,731 355,368
Loss from operations (501,985) (128,055)
Other expenses (income):
Finance charges 0 93,500
Interest expense 13,861 24,967
Interest income (47,528) 0
Gain on sale of equipment (12,435) 0
(46,102) 118,467
Net loss $ (455,883) $ (246,522)
Net loss per common share $ (0.03) $ (0.04)
Weighted average number of common
shares outstanding 14,809,877 5,639,686
</TABLE>
<TABLE>
ANTARES RESOURCES CORPORATION
<CAPTION>
CONSOLIDATED STATEMENT OF CASH FLOWS
Six months ended March 31,
1996 1995
(Unaudited)
<S> <C> <C>
Cash flows from operating activities:
Net loss $(1,008,508) $(258,921)
Adjustments to reconcile net loss
to net cash used in
operating activities:
Cumulative effect on prior
years of change in marketable
securities accounting principle 0 (2,500)
Depreciation and amortization 93,257 20,650
Bad debts 0 7,000
Gain on sale of equipment (12,435) 0
Operating expenses and
liabilities paid by and
accrued to
stockholders 0 138,381
Changes in assets and liabilities:
(Increase) decrease in accounts
receivable (635,759) (221,516)
(Increase) decrease in
inventories (990,674) 103,235
(Increase) decrease in
prepaid expenses (14,350) (59,979)
Increase (decrease) in
accounts payable & accrued
expenses 126,465 116,477
Increase (decrease) in
payroll taxes payable 17,319 93,500
Total adjustments (1,416,177) 195,248
Net cash used in
operating activities (2,424,685) (63,673)
Cash flows from investing activities:
Acquisition costs (195,443) (55,670)
Capital expenditures (267,207) (9,894)
Proceeds from sale of equipment 12,435 0
Loans to stockholders (60,000) 0
Principal payments from note
receivable 22,484 0
Investment (1,000,000) 0
Net cash used in investing
activities (1,487,731) (65,564)
Cash flows from financing activities:
Principal payments under loan
agreements (309,719) (8,478)
Proceeds from financing agreements 0 139,000
Principal payments under
capital lease obligations (17,271) (8,277)
Proceeds from stockholder loan 0 15,500
Proceeds from issuance of capital stock 0 53,000
Net cash provided by (used in)
financing activities (326,990) 190,745
Net (decrease) increase in cash (4,239,406) 61,508
Cash at beginning of period 6,120,164 0
Cash at end of period $ 1,880,758 $ 61,508
</TABLE>
<TABLE>
ANTARES RESOURCES CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
December 31, 1995
(unaudited)
Note 1. Unaudited Interim Financial Statements
The accompanying unaudited financial statements have been
prepared in accordance with the instructions
for Form 10-QSB and do not include all of the information and footnotes
required by generally accepted
accounting principles for complete financial statements. In the opinion of
management, all adjustments, consisting
only of normal recurring adjustments considered necessary for a fair
presentation, have been included. Operating
results for any quarter are not necessarily indicative of the results for any
other quarter or for the full year. These
statements should be read in connection with the financial statements of
Antares Resources Corporation and notes
thereto included in the Antares Resources Corporation Company's (the
Company) Annual Report on Form 10KSB
for the year ended September 30, 1995 and the Company's Proxy Statement
dated January 26, 1996.
Note 2. History and business activity
The Company was incorporated in the State of New York on
November 19, 1958, and had several name
changes reflecting its prior business operations until December 20, 1983, at
which time the Company changed its
name to Antares Resources Corporation. Prior to the business combination
which took place January 1, 1995, the
Company had not conducted any material business operations since 1984.
Antares Resources Corporation is a
publicly held company whose stock is listed on the NASDAQ Small Cap
Market.
The Company has three operating subsidiaries. Empire Energy, Inc.
is engaged in the buying and selling of
pine wood by-products used as fuel in the firing boilers of paper mills.
Caribbean Breeze International, Inc. is
engaged in the design, production and sale of sun and skin care products.
Southern Trailers Manufacturing, Inc.
manufactures and sells utility, cargo and horse trailers. A fourth subsidiary,
Cherokee Sun Corp. (a development
stage company) has made arrangements to enter the kitty litter production
business as a supplier of the raw
material, montmorillionite clay (fuller's earth) in bulk form or as finished
product which has been processed and
packaged with private labels. A fifth subsidiary, Multi-Source Labs, Inc.
acquired the rights to produce and
distribute a drink-holding adapter, "The Beverage Brat", and assigned those
rights to Caribbean Breeze
International, Inc. During the quarter, molds were created and initial
production began. Sales are expected to
begin in the second quarter.
Note 3. Business Combinations
On January 1, 1995, the Company acquired the assets of Empire
Energy, Inc. ("Old Empire"), and its
affiliates Caribbean Breeze International, Inc. ("Old Caribbean") and
Cherokee Sun Corp. ("Old Cherokee"), in
exchange for 1,000,000 shares of its .001 par value common stock, 100,000
shares of $10 convertible preferred
stock and $600,000 of 12% subordinated notes. In addition, Antares
Resources Corporation assumed certain
liabilities of Old Empire, Old Caribbean and Old Cherokee. The acquisition
was accounted for as a purchase.
The acquisition included the ongoing business, all tangible assets and
intangible assets including contract
rights, customer lists, product formulas and the agreement of certain
shareholders not to compete with the
business.
Note 4. Stock Split
The Board of Directors declared a two-for-one forward split of the
Company's common stock, effective
for stockholders of record on January 5, 1996. The share distribution date
was January 31, 1996.
Note 5. Legal Proceedings
On March 26, 1996, the Corporation settled its prior dispute with
Avon Products, Inc. wherein it was
alleged by Avon that the Company's packaging of its "Ultra 3-N-One
Outdoor Protection" is confusingly similar to
the packaging of Avon's own products. In anticipation of the settlement and
in accordance with its terms, the
Company has changed its packaging of its "Ultra 3-N-One Outdoor
Protection". The settlement did not involve
the payment of any money by the Corporation to Avon.
On April 15, 1996 the judgment against David Capps by a third party was
satisfied thereby releasing any lien on
certain shares of Caribbean Breeze, Inc. a predecessor to the Company's
subsidiary Caribbean Breeze
International, Inc.
Note 6. Subsequent Event
During April 1996 the Company entered into a contract to purchase
approximately 1300 acres of property located
near Charleston, South Carolina from the Dunes West Joint Venture
subsidiary of Georgia Pacific Corp.
The Company paid a $250,000 refundable deposit against the $5,000,000
purchase price. A joint venture partner
is currently being sought to either develop the property or purchase it from
the Company.
In the event the balance of $4,750,000 is not paid by June 28, 1996 the
contact will terminate and the deposit with
accrued interest will be refunded.
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
MANAGEMENT DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND
RESULTS OF OPERATIONS
The following discussion should be read in conjunction with the Company's
Financial Statements and
related notes
Overview
Antares Resources is a holding company that conducts its operations
through its three operating
subsidiaries, Caribbean Breeze International, Inc. (CBI), Empire Energy, Inc.
(EEI) and Southern Trailers
Manufacturing, Inc., (STM). Cherokee Sun Corporation (CSC) is a
development stage subsidiary that is
in the process of trying to enter the kitty litter processing business, and
Multi-Source Labs is a non-
operating subsidiary which holds the rights to all non-suncare products.
The following financial information and discussion will cover the
consolidated results of the Company's
second quarter ending March 31, 1996, and the six months ended March 31,
1996. The results will be
compared with the operating results for the second quarter and six months
ended March 31, 1995. The
six months ended March 31, 1995 contains operating results for only three
months of operations, because
the parent company was inactive until January 1, 1995. There are no second
quarter comparative figures
for Southern Trailers, because it began operations as a manufacturer of
trailers in November of 1995.
Results of Operations
The following table sets forth, for periods indicated, the percentage of total
revenues represented by
certain items included in the Company's Consolidated Statement of
Operations.
EMPIRE ENERGY, INC.
Empire Energy, Inc. engages in the buying and selling of wood waste
products used as fuel primarily by
paper mills in Southeastern Georgia and Northeast Florida.
3 Mos End 3/31/96 3 Mos End 3/31/95 6 Mos End 3/31/96 6 mos ended 3/31/95*
1996 % 1995 % 1996 % 1995 %
Sales
Alternative
Fuel 218,631 100.00% 383,027 69.43% 552,840 100.00% 383,027 63.43%
Waste
Disposal -0- 168,634 30.57% -0- 100.00% 168,634 30.57%
Total
Sales 218,631 551,661 100.00% 552,840 100.00% 551,661 100.00%
Cost of
Sales 148,422 67.89% 368,140 66.73% 342,909 58.19% 368,140 66.73%
Gross
Profit 70,209 32.11% 183,521 33.27% 209,931 36.83% 183,521 33.27%
Selling
Expenses -0- -0- -0- -0- -0- -0- -0- -0-
General &
Admin 59,466 27.20% 92,263 16.72% 158,997 28.76% 92,263 16.72%
Income
from
Operation 10,743 4.91% 91,258 16.55% 50,934 8.07% 91,258 16.55%
CARIBBEAN BREEZE INTERNATIONAL INC.
The principal business of Caribbean Breeze International is the productions,
marketing and distribution of
sun, skin care and sun block products which it sells through a national
network of independent
distributors and brokers.
3 Mos End 3/31/96 3 Mos End 3/31/95 6 Mos End 3/31/96 6 mos end 3/31/95*
1996 % 1995 % 1996 % 1995 %
Revenue 888,96 129.39% 350,522 127.17% 965,772 144.80% 350,522 127.17%
Returns/
Resrv (117,850)(17.15%)(74,886)(27,17%) (204,850) (44.80%) 74,886 27.17%
Discnts/
Dam (84,086) (12.24%) - - (93,949) - - -
Net
Sales 687,016 100.00% 275,636 100.00% 666,973 100.00% 275,636 100.00%
Cost of
Sales 312,837 45.54% 175,997 63.85% 317,813 47.65% 175,997 63.85%
Gross
Profit 374,179 54.46% 99,639 36.15% 349,160 53.35% 99,639 36.15%
Acquired
Gross
Proft - - 55,846 20.26% - - 55,846 20.26%
Selling
Expns 139,696 20.33% 64,611 23.44% 239,479 35.91% 64,611 23.44%
Gen/
Admn
Exp 202,562 29.48% 65,977 23.94% 403,873 60.55% 65,977 23.94%
Profit
(Loss) (31,921) 4.65% (86,435) (31.36%) (294,192) 44.11% (86,435) (31.36%)
*Represents three months operations
SOUTHERN TRAILERS MANUFACTURING, INC.
Southern Trailers manufactures and sells horse trailers, utility trailers and
cargo trailers from its
manufacturing facility in Unadilla, Georgia.
3 Mos End 3/31/96 3 Mos End 3/31/95* 6 Mons End 3/31/96**
1996 % 1995 % 1996 %
Sales 336,449 100.00% 36,503 100.00% 372,952 100.00%
Cost of
Sales 397,091 118.02% (33,807) 92.61% 430,898 115.54%
Gross
Profit (60,642) (18.02%) 2,969 7.39% 57,846 15.54%
Selling
Expns 13,827 4.11% 1,506 4.13% 15,333 4.11%
Gen/Admn
Exp 158,328 47.06% 85,025 232.93% 243,351 65.25%
Profit
(Loss) (232,795) (69.19%) (83,835) N/A (316,630) (84.9%)
*Represents one and one-half months of operations
**Represents four and one-half months operations
Revenues
Revenues for the three months ended March 31, 1996 were $1,242,096, an
increase of $414,800 from the
revenues for the quarter ended March 31, 1995 of $827,296. Revenues
were up substantially because of
seasonal orders for Caribbean Breeze International increasing, and Southern
Trailers Manufacturing
began turning out trailers to meet demand. Caribbean Breeze International's
sales for the three months
ending March 31, 1996 were $687,016 versus $275,635 for the same period
in 1995. This increase was
partially offset by the temporary annual shut-down of the major supplier for
Empire Energy, Inc. in the
month of March. Revenues for Empire Energy, Inc. in the three months
ending March 31, 1996 were
$218,631 versus $551,661 for the quarter ended March 31, 1995. In
October of 1995 Empire Energy,
Inc. discontinued the waste disposal of cardboard products which was
included in the March 31, 1995
numbers in the amount of $168,634; also the shut down in the previous year
was for a much shorter time
period, so it did not have as much of an effect on the March 31, 1995
numbers. As usual, the plant began
shipping bark to Empire Energy, Inc. at the beginning of April. Southern
Trailers Manufacturing
revenues of $336,449 were generated mostly from the month of March, the
first full month operations at
the new manufacturing plant.
Cost of Sales
Cost of sales for Empire Energy, Inc. were up slightly as a percentage of
sales as a result of the (a) annual
temporary shut-down of the major supplier of bark and (b) alternate supplies
of bark were used, which
produced a lower gross margin. Cost of sales for Caribbean Breeze
International were 45.54% of sales
for the three months ending March 31, 1996 versus 63.85% for the quarter
ending March 31, 1995. This
improvement was due to the sale of a more profitable product mix and
because the 1995 quarter included
costs for repackaging expenses. Cost of sales for Southern Trailer
Manufacturing were $397,091 or
118.02% as a percent of sales. Management believes that the gross profit
percentage is still abnormally
low due to the fact that the plant was only at full capacity for one month
during the quarter, and the start-
up process in manufacturing caused the plant to be less efficient in material
handling and labor costs.
Sales prices were raised on the product line at the end of March.
Selling, General and Administrative Expenses
Selling, General and Administrative expenses for the three months ending
March 31, 1996 were $885,731
as compared to $355,368 for the three months ended March 31, 1995. A
majority of the increase related
to the costs associated with the sales increase of 60.06% and the fact that
Southern Trailer
Manufacturing was not a part of Antares Resources Corporation in 1995, so
there were no Selling
General and Administrative Expenses in the March 31, 1995 quarter for this
subsidiary. Selling, General
and Administrative expenses for Caribbean Breeze International were
$342,258 for the quarter ended
March 31, 1996, versus $130,588 for the quarter ended March 31, 1995.
Although the dollar amount
was higher, as a percentage of sales, these expenses were relatively stable at
47.38% at March 31, 1995
and 49.81% at March 31, 1996. Selling, General and Administrative
expenses for Empire Energy, Inc. as
a percent of sales for the quarter ended March 31, 1996, were 27.20%
versus 16.72% for the quarter
ended March 31, 1995. Sales decreased due to the temporary shutdown of a
major supplier and the loss
of waste disposal revenue, but expenses remained relatively constant, so the
percentage increased.
Selling, General and Administrative expenses for Southern Trailer
Manufacturing was $172,153 for the
quarter ended March 31, 1996, versus $86,531 for the quarter ended
December 31, 1995. The increase
was due to a full quarter of operations versus a month and one-half in the
previous quarter. Included in
the quarter ended March 31, 1996 are expenses for training of $28,858
which is a non-recurring item.
Interest income was from investing excess funds in overnight deposits and
interest expense was mainly on
subordinated debt.
Net Loss
Quarter Ending 3/31/96 Quarter Ending 3/31/95 Variance +/-
Parent Company (251,008) (159,947) -91,061
Empire Energy, Inc. 17,475 84,535 +67,060
Caribbean Breeze
Intn'l 31,139 (180,295) +211,434
Cherokee Sun Corp. (20,694) (470) -20,224
Southern Trailers Man. (232,795) 0 -232,795
Net Loss (455,883) (256,177) (199,706)
The basic difference between the quarter ended March 31, 1995 and the
current quarter ended March 31,
1996 was that Southern Trailers Manufacturing started up and had a
$232,795 loss for the quarter. Also,
the effort to bring the kitty litter company to completion, caused expenses to
be up by approximately
$20,000.
Empire Energy, Inc. was down $67,060 in earnings due to the annual
temporary shut down of the major
supplier of pine bark and the loss of the waste disposal business, but
Caribbean Breeze International was
able to decrease its loss from the second quarter of 1995 by $211,434 from a
loss of $180,295 to a profit
of $31,139. The parent company had increased expenses in the quarter
ended March 31, 1996, mainly
due to annual stockholders meeting and related expenses (i.e. printing, legal
and accounting).
Liquidity and Capital Resources
The Company continues to finance its operations primarily from the capital
infusion received in July of
1995. Funds needed to fund losses decreased from $552,625 for the quarter
ended December 31, 1995
to $455,883 for the quarter ended March 31, 1996. Inventory for Caribbean
Breeze International
increased to $1,062,000 at quarter ending March 31, 1996 from $357,524 at
March 31, 1995. Accounts
receivable (net of reserves) were $578,227 for Caribbean Breeze
International at March 31, 1996, versus
$382,899 at March 31, 1995.
Trends
Net sales for Caribbean Breeze International for the six months ended March
31, 1996, were within
$55,000 of matching last fiscal years sales, and Caribbean Breeze
International was profitable for the
quarter ended March 31, 1996. Management is confident that this sales
increase will continue for the rest
of the fiscal year.
Empire Energy, Inc. sales should rebound to previous levels as the major
supplier returns to normal
supply levels. Although the Company lost the waste disposal business, it has
increased efficiency in
loading operations to offset the loss of revenue.
Southern Trailer Manufacturing recorded sales of $209,000 in the month of
March, the first full month of
manufacturing operations. The Company anticipates that Southern Trailer
Manufacturing will continue,
or exceed, these sales levels for the remainder of the year. The company has
increased the sale price on
its trailers, but still remains below competitive pricing. Southern Trailer
Manufacturing Inc. sold ten (10)
trailers in February and twenty-three (23) in March. There are $744,000 in
orders in the pipeline. As the
factory continues to operate at or near capacity, efficiency should enable the
cost of goods sold to
decrease and overtime should be eliminated. Cherokee Sun Corporation is
actively pursuing several
positive contacts in the kitty litter industry, and intends to finalize a
material contact as soon as possible;
however, there can be no assurance of this.
Inflation
The Company does not believe that inflation had a material effect on the
results of operations for the
three months ended March 31, 1996.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the Registrant has duly caused
this report to be signed on its behalf of the undersigned thereunto duly
authorized.
ANTARES RESOURCES
CORPORATION
(Registrant)
By/s/William W. Perry III
William W. Perry III
President and Chief Executive Officer
(Duly Authorized Officer)
Dated: May 13, 1996
ANTARES RESOURCES CORPORATION
<CAPTION>
Financial Data Schedules
As of March 31, 1996 and for the six-month period then ended
Article 5 of Regulation S-X
This schedule contains summary financial information extracted from the
condensed consolidated
financial statements filed with Form 10QSB for the quarterly period ended
March 31, 1996 and is qualified in its entirety by reference to such
financial statements.
Item Description
<S> <C>
<DOCUMENTS>
[TYPE] EX-27
[DESCRIPTION] ART. 5 FDS FOR 1ST QUARTER 10-QSB
[TEST]
[ARTICLE]5
<PERIOD TYPE> 6-MOS
<FISCAL YEAR END> SEP-30-96
<PERIOD END> MAR-31-96
[CASH] 1,880,758
[SECURITIES] 0
[RECEIVABLES] 695,512
[ALLOWANCES] 43,000
[INVENTORY] 1,499,746
<Current Assets> 4,131,924
[PP&E] 2,480,615
[DEPRECIATION] 111,401
<Total Assets> 10,996,121
<Current Liabilities> 615,322
[BONDS] 591,896
0
[PREFERRED] 1,350
<Common stock> 22,716
<Other SE> 9,764,837
<Total-Liabilities-Equity> 10,996,121
[SALES] 1,592,765
<Total Revenues> 1,592,765
<CSG> 1,091,620
<Total Costs> 1,091,620
[OTHER-EXPENSES] 1,586,612
<Loss Provisions> 0
[INTEREST-EXPENSE] 40,477
[INCOME-PRETAX] (1,008,508)
[INCOME-TAX] 0
[INCOME-CONTINUING] (1,008,508)
[DISCONTINUED] 0
[EXTRAORDINARY] 0
<Cumulative> 0
<Net income or loss> (1,008,508)
<Earnings-Primary> (.07)
<Earnings-Diluted> 0
</TABLE>
