SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-QSB
QUARTERLY REPORT UNDER SECTION 13 OR 15(d)
OF THE SECURTIES EXCHANGE ACT OF 1934
For the Quarter Ended June 30, 1996 Commission File No.
0-4289
MINUTE MAN OF AMERICA, INC.
(Exact name of registrant as specified in its charter)
Arkansas 71-0390957
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
4406 Airport Freeway, Fort Worth, TX 76117
(Address of principal executive offices) (Zip code)
Registrant's telephone number, including area code: 817-831-8410
Indicate by check mark 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 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__________
Indicate the number of shares outstanding of each of the issurer's classes
of common stock, as of the latest practicable date.
Class Outstanding at June 30, 1996
Common stock, par
value $0.10 per share 3,093,750 shares
<PAGE>
MINUTE MAN OF AMERICA, INC.
INDEX
Page
Number
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
Balance Sheets
June 30, 1996 (unaudited) and
September 30, 1995...................... 3
Statement of Operations
for the quarters ended June 30, 1996
and June 30, 1995 (unaudited)........... 4
Statement of Cash Flows
for the Quarters ended June 30, 1996
and June 30, 1995 (unaudited)........... 5
Notes to Financial Statements............. 6
Item 2. Management's discussion and Analysis of
Financial Condition and Operating Results. 7
PART II. OTHER INFORMATION........................ 7
SIGNATURES........................................ 8
<PAGE>
PART 1. FINANCIAL INFORMATION
Item 1. Financial Statements
MINUTE MAN OF AMERICA, INC.
BALANCE SHEETS
June 30, September 30,
1996 1995
(unaudited)
ASSETS $ $
- ------
Current Assets:
Cash 3,260 24,687
Accounts and notes receivable 211,097 286,056
Receivable from investment sale 190,000
Inventories 228,554 226,448
Prepaid expenses 393 393
----------- ---------
Total current assets 633,304 537,584
Property, Plant and Equipment:
Machinery and equipment 231,889 221,357
Furniture and fixtures 10,426 10,426
----------- ---------
Less accumulated depreciation (38,622) (22,085)
----------- ---------
Total Property, Plant & Equip. 203,693 209,698
Other Assets 282 12,964
Excess cost over net assets acquired 94,069 99,393
TOTAL ASSETS 931,348 859,639
=========== =========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable, trade 52,385 69,124
Accrued expenses 7,216 36,271
----------- ---------
Total current liabilities 59,601 105,395
Indebtedness to Related Parties 47,212 20,000
Stockholders' Equity:
Convertible Series A preferred
stock; $10 par value: authorized
500,000 shares, 75,000 issued 750,000 750,000
Common stock $.10 par value;
issued and outstanding 3,093,750
and 1,093,750 respectively 309,375 309,375
Capital in excess of par value 908,044 908,044
Accumulated (deficit) (1,142,884) (1,058,175)
----------- ------------
Unsecured note receivable due from
related party - (175,000)
Total Stockholders' Equity 824,535 734,244
TOTAL LIABILITIES & STOCKHOLDER EQUITY 931,348 859,639
=========== ============
<PAGE>
MINUTE MAN OF AMERICA, INC.
STATEMENT OF OPERATIONS
(unaudited)
Three Months Nine Months
Ended June 30, Ended June 30,
--------------- ---------------
1996 1995 1996 1995
---- ---- ---- ----
$ $ $ $
Revenues:
Gross sales 253,500 305,010 678,491 978,487
Royalties 3,426
Bad debts ( 750) (1,682) (3,000) (2,932)
Other income 1,347 1,649
Gain on disposition of
properties 55,000 - 55,000 20,000
------- -------- ------ -------
Total Revenues 307,750 304,675 730,491 1,000,630
Cost of Sales:
Labor costs 108,508 115,635 317,394 390,961
Other expense 132,911 168,510 358,775 426,057
Depreciation 5,512 5,512 16,537 16,537
-------- ------- ------- -------
Total Cost of Sales 246,931 289,657 692,706 833,555
-------- -------- ------- --------
Gross Profit 60,819 15,018 37,785 167,075
Expenses:
Selling, general &
administration 19,781 20,357 59,813 71,055
Interest 9,633 (8,763) 30,046 14,523
Relocation expense - - 26,900 -
Amortization 1,775 (1,550) 5,735 4,650
-------- -------- ------- --------
Total Expenses 31,189 10,044 122,494 90,228
--------- ------ ------- --------
Operating Income before FIT
and Extraordinary Credit 29,630 4,974 (84,709) 76,847
Federal Income Tax - 895 - 13,832
-------- ------ ------- ------
Net Income before
Extraordinary Credit 29,630 4,079 (84,709) 63,015
Credit for utilization of
Tax loss carryforward 895 - 13,832
-------- ------- ------- ------
Net Income 29,630 4,974 (84,709) 76,847
======= ====== ======= ======
Net Income per Share $.01 NIL $(.03) $.03
Weighted Average Shares 3,093,750 2,427,083
Outstanding 3,093,750 3,093,750
<PAGE>
MINUTE MAN OF AMERICA, INC.
STATEMENT OF CASH FLOWS
(unaudited)
FOR THE NINE MONTHS
ENDED June 30,
1996 1995
$ $
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income (Loss) (84,709) 76,847
Adjustments to reconcile net income
to net cash provided by operating
activities:
Depreciation and amortization 21,861 21,187
(Increase) decrease in accounts
receivable (115,041) (26,299)
(Increase) decrease in inventories (2,106) (49,029)
Increase (decrease) in accounts
payable and accrued expenses (45,794) (25,809)
(Increase) decrease in other assets 12,682 245
Increase (decrease) in indebtedness
to related parties 27,212 (4,351)
--------- --------
NET CASH PROVIDED (USED) BY
OPERATING ACTIVITIES (185,895) (7,209)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase (decrease) of investments (175,000) 175,000
Purchases of equipment 10,532 850
CASH PROVIDED FROM(USED IN)
INVESTING ACTIVITIES 164,468 (175,850)
CASH FLOWS FROM FINANCING ACTIVITIES:
Sale of common stock - 200,000
Preferred stock dividends - (19,688)
--------- --------
CASH PROVIDED BY FINANCING ACTIVITIES - 180,312
--------- -------
NET INCREASE (DECREASE) IN CASH (21,427) (2,747)
CASH AT BEGINNING OF PERIOD 24,687 8,126
--------- ------
CASH AT END OF PERIOD 3,260 5,379
======== ========
<PAGE>
MINUTE MAN OF AMERICA, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(unaudited)
1. The June 30, 1996 balance sheet, the statements of operations and the
statements of cash flows have been prepared by Minute Man of America, Inc.
("Company") without audit. In the opinion of management, all adjustments (which
include only normal recurring adjustments) necessary to present fairly the
financial position, results of operations and changes in cash flows for all
periods presented have been made.
Certain information and footnote disclosures normally included in financial
statements prepared in accordance with generally accepted accounting principles
have been omitted. It is suggested that these financial statements be read in
conjunction with the financial statements and notes thereto included in the
Company's 1995 annual report on Form 10-KSB. The results of operations for the
quarter ended June 30, 1996 are not necessarily indicative of the operating
results for a full year.
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND OPERATING RESULTS
RESULTS OF OPERATIONS:
Revenues for the quarter and for the nine months ended June 30, 1996 from the
wholly-owned subsidiary, Gibson Specialty Corp., were down from the previous
year by $51,510 and $299,996 respectively. This was due primarily to the loss in
sales caused by the relocation of plant facilities from downtown Chicago to its
current location in DesPlaines, Illinois. The operating loss for six months was
$84,709, while a profit was reported for the quarter arising from a
non-recurring profit recognized on the sale of the Company's investment in a
Canadian company. The operating loss arose primarily from the move,
extraordinary relocation costs and loss of revenue from the downtime
necessitated by the move. The Company also experienced extraordinary expenses
from the conversion of some plant equipment to manufacture of a new product
line, break-open pull tabs.
During the quarter the Company disposed of its investment in a Canadian
company, which it had been holding for possible expansion of its operations into
Canada. This transaction resulted in an non-recurring gain of $55,000. This sale
created a receivable in the amount of $190,000 at June 30, 1996, of which
$177,500 was collected in the first week of July 1986.
LIQUIDITY AND CAPITAL RESOURCES:
At June 30, 1996 current assets were $633,304 against current liabilities of
$59,601, resulting in working capital of $573,703 and a current ratio of ten to
one. At September 30, 1995 the working capital was $432,189 with a current ratio
of five to one.
PART II. OTHER INFORMATION
Items 1 through 3.
None
Item 4. Submission of matters to Vote of Security Holders.
None
Item 5. Other Information.
None
Item 6. Exhibits and Reports on Form 8-K.
None
<PAGE>
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 by the
undersigned thereunto duly authorized.
MINUTE MAN OF AMERICA, INC.
(Registrant)
Date_______________________ ___________________________
Richard D. Collins
President and Principal
Financial Officer
<PAGE>
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<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> SEP-30-1996
<PERIOD-START> OCT-01-1996
<PERIOD-END> JUN-30-1996
<CASH> 3,260
<SECURITIES> 0
<RECEIVABLES> 461,097
<ALLOWANCES> 0
<INVENTORY> 228,554
<CURRENT-ASSETS> 633,304
<PP&E> 242,315
<DEPRECIATION> 38,622
<TOTAL-ASSETS> 931,348
<CURRENT-LIABILITIES> 59,601
<BONDS> 0
<COMMON> 309,375
0
750,000
<OTHER-SE> (234,840)
<TOTAL-LIABILITY-AND-EQUITY> 931,348
<SALES> 675,491
<TOTAL-REVENUES> 730,491
<CGS> 692,706
<TOTAL-COSTS> 758,254
<OTHER-EXPENSES> 26,900
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 30,046
<INCOME-PRETAX> (84,709)
<INCOME-TAX> 0
<INCOME-CONTINUING> (84,709)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (84,709)
<EPS-PRIMARY> (.03)
<EPS-DILUTED> (.03)
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