FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.20549
(X) QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES AND EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 1996
OR
( ) TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES AND EXCHANGE ACT OF 1934
For the transition period from
____________________to__________________
For the Quarter ended Commission File No.
June 30, 1996 0-24282
MONMOUTH CAPITAL CORPORATION
(Exact Name of Registrant as Specified in its Charter)
New Jersey 21-0740878
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
125 Wyckoff Road, Eatontown, New Jersey 07724
(Address of Principal Executive Office) (Zip Code)
Registrant's telephone number, including area code:(908)542-4927
____________________________________________________________
(Former name, former address and former fiscal year, if
changed since last report)
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 and 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 by check mark whether the financial statements
required by instruction H have been reviewed by an
independent public accountant. Yes ___ No X
The number of shares or other units outstanding of each of
the issuer's classes of securities as of June 30, 1996 was
1,151,112 shares.
<PAGE>
MONMOUTH CAPITAL CORPORATION
FOR THE THREE MONTHS ENDED JUNE 30, 1996
CONTENTS
PART I - FINANCIAL INFORMATION PAGE NO.
Item 1 - Financial Statements (Unaudited):
Consolidated Balance Sheets 3-4
Consolidated Statements of Income 5
Consolidated Statements of Cash Flows 6
Notes to Consolidated Financial Statements 7
Item 2 - Management's Discussion and Analysis of
Financial Condition and Results of Operations 8-9
PART II - OTHER INFORMATION 10
SIGNATURES 11
-2-
<PAGE>
<TABLE>
<CAPTION>
MONMOUTH CAPITAL CORPORATION
CONSOLIDATED BALANCE SHEETS
AS OF JUNE 30, 1996 AND MARCH 31, 1996
ASSETS
6/30/96 3/31/96
<S> <C> <C>
Current Assets:
Cash $ 260,783 $ 94,625
Accounts Receivable 17,561 75,752
Interest Receivable 43,057 32,842
Securities Available for Sale at
Fair Value (cost $975,800 and
$983,788 at June 30, 1996 and
March 31, 1996, respectively) 949,515 966,614
Inventory 1,610,867 1,168,216
Prepaid Expenses and Other
Current Assets 51,095 56,290
Current Portion of Loans
Receivable 566,913 523,021
_________ _________
Total Current Assets 3,499,791 2,917,360
_________ _________
Long Term Assets:
Real Estate Investments:
Land 172,000 172,000
Building and Improvements
net of accumulated
depreciation of $43,733 and
$37,487, respectively 930,967 937,213
_________ _________
Total Real Estate Investments 1,102,967 1,109,213
_________ _________
Loans Receivable:
Performing 1,493,550 1,436,625
Non-Performing (less
allowance for losses of
$119,753 at June 30, 1996
and March 31, 1995) 288,849 288,849
_________ _________
Total Loans Receivable 1,782,399 1,725,474
_________ _________
Total Long-Term Assets 2,885,366 2,834,687
_________ _________
TOTAL ASSETS $6,385,157 $5,752,047
========== ==========
-UNAUDITED-
See Notes to the Consolidated Financial Statements
-3-
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
MONMOUTH CAPITAL CORPORATION
CONSOLIDATED BALANCE SHEETS (Cont.)
AS OF JUNE 30, 1996 AND MARCH 31, 1996
6/30/96 3/31/96
<S> <C> <C>
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Accounts Payable and Accrued
Expenses $ 111,862 $ 240,801
Loans Payable 1,446,508 726,587
__________ __________
Total Current Liabilities 1,558,370 967,388
Other Liabilities 82,268 77,904
__________ __________
Total Liabilities 1,640,638 1,045,292
__________ __________
Shareholders' Equity:
Capital Stock (Authorized
10,000,000 shares par value
$1.00; Issued and outstanding
1,151,112 shares at June 30,
1996 and 1,139,184 shares at
March 31, 1996) 1,151,112 1,139,184
Additional Paid-in Capital 2,692,329 2,662,555
Unrealized Investment Loss (26,291) (17,174)
Retained Earnings 927,369 922,190
__________ __________
Total Shareholders' Equity 4,744,519 4,706,755
__________ __________
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY $6,385,157 $5,752,047
========== ==========
-UNAUDITED-
See Notes to the Consolidated Financial Statements
-4-
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
MONMOUTH CAPITAL CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
FOR THE THREE MONTHS ENDED JUNE 30, 1996 AND 1995
<S> <C> <C>
1996 1995
INCOME:
Sales of Manufactured Homes $ 577,485 $ 311,937
Interest Income 79,593 82,600
Rental Income 35,108 40,472
Other Income 20,528 29,825
_________ _________
Total Income 712,714 464,834
_________ _________
EXPENSES:
Cost of Sales of
Manufactured Homes 457,449 250,531
Selling Expense 34,600 20,589
Salaries & Employee Benefits 53,345 33,985
Professional Fees 28,670 31,290
Interest Expense 25,482 9,318
Other Expenses 104,589 60,521
_________ _________
Total Expenses 704,135 406,234
_________ _________
Income Before Income
Taxes 8,579 58,600
Income Taxes 3,400 23,900
_________ _________
NET INCOME $ 5,179 $ 34,700
========= =========
NET INCOME PER SHARE $ -- $ 0.03
========= =========
WEIGHTED AVERAGE
SHARES OUTSTANDING 1,148,084 1,100,071
========= =========
-UNAUDITED-
See Notes to Consolidated Financial Statements
-5-
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
MONMOUTH CAPITAL CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOW
FOR THE THREE MONTHS ENDED JUNE 30, 1996 and 1995
1996 1995
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES
Net Income $ 5,179 $ 34,700
Depreciation and Amortization 6,246 3,123
Changes In:
Accounts Receivable 58,191 10,445
Interest Receivable (10,215) (24,692)
Inventory (442,651) (44,676)
Prepaid Expenses and Other
Current Assets 5,195 5,001
Accounts Payable and
Accrued Expenses (128,939) (107,504)
Other 4,364 327,994
________ ________
Net Cash Provided (Used) by
Operating Activities (502,630) 204,391
________ ________
CASH FLOWS FROM INVESTING ACTIVITIES
Loans Made (174,692) (540,833)
Collections and Other Decreases
in Loans 73,875 42,074
Decrease in Securities 7,982 3,700
________ ________
Net Cash Used by Investing Activities (92,835) (495,059)
________ ________
CASH FLOWS FROM FINANCING ACTIVITIES
Net Increase in Loans Payable 719,921 293,203
Proceeds from the Issuance of
Class A Common Stock 41,702 -0-
Costs Associated with the Issuance
of Class A Common Stock -0- (19,246)
________ ________
Net Cash Provided by Financing
Activities 761,623 273,957
________ ________
Net Increase (Decrease) in Cash 166,158 (16,711)
Cash at Beginning of Period 94,625 205,804
________ ________
Cash at End of Period $ 260,783 $ 189,093
======== ========
CASH PAID DURING THE PERIOD
FOR INTEREST $ 25,482 $ 9,318
======== ========
FOR TAXES $ 139,000 $ 63,877
======== ========
-UNAUDITED-
See Notes to the Consolidated Financial Statements
-6-
</TABLE>
<PAGE>
MONMOUTH CAPITAL CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
JUNE 30, 1996
NOTE 1 - ACCOUNTING POLICY
The interim consolidated financial statements furnished
herein reflect all adjustments which were, in the opinion of
management, necessary to present fairly the financial
position, results of operations, and cash flows at June 30,
1996 and for all periods presented. All adjustments made in
the interim period were of a normal recurring nature.
Certain footnotes disclosures which would substantially
duplicate the disclosures contained in the audited financial
statements and notes thereto included in the annual report
of Monmouth Capital Corporation (the Company) for the year
ended March 31, 1996 have been omitted.
NOTE 2 - LOANS RECEIVABLE
In conjunction with the sale of manufactured homes, loans
totaling $174,692 were made for the three months ended June
30, 1996. Loans are primarily at 10%-15% for fifteen years
and secured by the property.
Collections and other decreases of loans receivable totalled
$73,875 for the three months ended June 30, 1996.
NOTE 3 - DIVIDEND REINVESTMENT AND STOCK PURCHASE PLAN
For the three months ended June 30, 1996, the Company
received $41,702 from the Dividend Reinvestment and Stock
Purchase Plan (DRIP). There were 11,928 new shares
issued, resulting in 1,151,112 shares outstanding.
NOTE 4 - SUBSEQUENT EVENT
On July 2, 1996, the Company purchased $200,000 of
marketable securities. These securities are classified as
Securities Available for Sale.
Page 7
<PAGE>
MONMOUTH CAPITAL CORPORATION
MANAGEMENT'S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITIONS AND RESULTS OF OPERATIONS
MATERIAL CHANGES IN FINANCIAL CONDITION
Net cash used by operations for the three months ended June
30, 1996 amounted to $502,630 as compared to net cash
provided by operations of $204,391 for the three months
ended June 30, 1995. This decrease is primarily due to the
purchase of manufactured home inventory by The Mobile Home
Store, Inc. (MHS), the Company's wholly-owned subsidiary.
MHS is in the process of opening a new Sales Center.
Loans Receivable increased by $100,817 during the three
months ended June 30, 1996. This was the result of new
loans made of $174,692 offset by $73,875 in collections.
Inventory increased by $442,651 during the three months
ended June 30, 1996 as a result of increased purchases of
manufactured homes for sale to be used as models for the new
sales center.
Loans payable increased by $719,921 during the three months
ended June 30, 1996. Proceeds from these loans were used to
finance inventory purchases as well as manufactured home
sales to customers.
Effective August 28, 1995, the Company implemented a
Dividend Reinvestment and Stock Purchase Plan (DRIP). Under
the terms of the DRIP, shareholders who participate may
invest all or part of their dividends in additional shares
of the Company at approximately 95% of the market price.
Shareholders may also purchase additional shares at
approximately 95% of their market price by making optional
cash payments. For the three months ended June 30, 1996,
the Company raised $41,702 from the DRIP, resulting in
11,928 new shares issued.
MATERIAL CHANGES IN RESULTS OF OPERATIONS
Income is comprised primarily of sales of manufactured
homes, interest income and rental income. Sales of
manufactured homes amounted to $577,485 for the three months
ended June 30, 1996 as compared to $311,937 for the three
months ended June 30, 1995. MHS has been experiencing
increased sales since its inception in fiscal 1994.
-8-
<PAGE>
MONMOUTH CAPITAL CORPORATION
MANAGEMENT'S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITIONS AND RESULTS OF OPERATIONS (Cont.)
Rental Income amounted to $35,108 for the three months ended
June 30, 1996 as compared to $40,472 for the three months
ended June 30, 1995. Rental income is attributable to the
Company's purchase of a net-leased industrial building on
March 31, 1994.
Interest income remained relatively stable for the three
months ended June 30, 1996 as compared to the three months
ended June 30, 1995.
The increase in Cost of Sales of Manufactured Homes and
Selling Expense is directly attributable to the increase in
sales of manufactured homes made by MHS. Interest expense
increased to $25,482 for the three months ended June 30,
1996 as compared to $9,318 for the three months ended June
30, 1995. The increase in interest expense is due to an
increase in loans payable.
Salaries and Employee Benefits increased to $53,345 for the
three months ended June 30, 1996 as compared to $33,985 for
the three months ended June 30, 1995. This increase is
primarily due to increased personnel.
Other Expenses increased to $104,589 for the three months
ended June 30, 1996 as compared to $60,521 for the three
months ended June 30, 1995 primarily due to the expansion of
the operations of MHS.
LIQUIDITY AND CAPITAL RESOURCES
The Company is currently engaged in real estate activities,
including the sale and financing of manufactured homes.
The Company has a $750,000 line of credit with Deutsche
Financial Services to finance its inventory purchases. As
of June 30, 1996, this line was fully utilized
The Company's ability to generate adequate cash to meet its
needs is dependent primarily on its real estate investment,
leveraging of its real estate investment, the success of the
sale of financing of manufactured homes, collections
receivable, availability of bank borrowings, the Dividend
Reinvestment and Stock Purchase Plan and access to the
capital markets.
-9-
<PAGE>
MONMOUTH CAPITAL CORPORATION
PART II - OTHER INFORMATION
FOR THE THREE MONTHS ENDED JUNE 30, 1996
Item 1 - Legal Proceedings - None
Item 2 - Changes in Securities - None
Item 3 - Defaults Upon Senior Securities - None
Item 4 - Submission of Matters to a Vote of Security Holders - None
Item 5 - Other Information - None
Item 6 - Exhibits and Reports on Form 8-K - None
-10-
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities and Exchange
Act of 1934, the Registrant has duly caused this report to
be signed on its behalf by the undersigned thereunto duly
authorized.
MONMOUTH CAPITAL CORPORATION
Date: August 6, 1996 By: /s/Eugene W. Landy
EUGENE W. LANDY
President
Date: August 6, 1996 By: /s/Anna T. Chew
ANNA T. CHEW
Controller
-11-
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
FINANCIAL STATEMENTS OF MONMOUTH CAPITAL CORPORATION AS OF AND FOR THE PERIOD
ENDED JUNE 30, 1996 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH
FINANCIAL STATEMENTS.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> MAR-31-1997
<PERIOD-END> JUN-30-1996
<CASH> 260,783
<SECURITIES> 949,515
<RECEIVABLES> 2,529,683
<ALLOWANCES> 119,753
<INVENTORY> 1,610,867
<CURRENT-ASSETS> 3,499,791
<PP&E> 1,146,700
<DEPRECIATION> 43,733
<TOTAL-ASSETS> 6,385,157
<CURRENT-LIABILITIES> 1,558,370
<BONDS> 0
0
0
<COMMON> 1,151,112
<OTHER-SE> 3,593,407
<TOTAL-LIABILITY-AND-EQUITY> 6,385,157
<SALES> 577,485
<TOTAL-REVENUES> 712,714
<CGS> 457,449
<TOTAL-COSTS> 116,615
<OTHER-EXPENSES> 104,589
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 25,482
<INCOME-PRETAX> 8,579
<INCOME-TAX> 3,400
<INCOME-CONTINUING> 5,179
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 5,179
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
