UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
(Mark One) Form 10-QSB
[X]QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 1997
[ ]TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE
ACT
For the transition period from to .
Commission file number 0-1937
OAKRIDGE HOLDINGS, INC.
(Exact name of Registrant as specified in its charter)
MINNESOTA 41-0843268
(State or other jurisdiction of (I.R.S. Employer
Incorporation or organization) Identification Number)
4810 120TH STREET WEST, APPLE VALLEY, MINNESOTA 55124
(Address of principal executive offices) (Zip Code)
(Issuer's telephone number) (612) 686-5495
_________________________________________________________________
(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. {X}Yes { }No
APPLICABLE ONLY TO CORPORATE ISSUERS
State the number of shares outstanding of each of the issuer's
classes of common equity, as of the latest practicable date:
1,309,670
Transitional Small Business Disclosure Format (Check One):
{ )Yes {X}No
<TABLE>
PART I - FINANCIAL INFORMATION FORM 10-QSB
ITEM 1 - FINANCIAL STATEMENTS
OAKRIDGE HOLDINGS, INC.
CONSOLIDATED BALANCE SHEET
(UNAUDITED)
<CAPTION>
ASSETS September 30,1997 June 30,1997
_________________ ____________
<S> <C> <C>
Cash $443,249 $382,287
---------- ----------
Trade receivable, net of allowance 633,561 583,298
---------- ----------
Inventories:
Cemetery and mausoleum space 677,004 682,108
Markers, urns & flowers 13,752 15,924
---------- ----------
690,756 698,032
---------- ----------
Property and equipment 1,810,515 1,760,528
Less: accumulated depreciation 1,304,183 1,286,611
---------- ----------
506,332 473,917
---------- ----------
Prepaid expenses and other assets 89,009 39,384
---------- ----------
Other assets:
Deferred income taxes 211,000 256,000
---------- ----------
Investments:
Land 250,000 250,000
---------- ----------
$2,823,907 $2,682,918
========== ==========
</TABLE>
<TABLE>
PART I - FINANCIAL INFORMATION FORM 10-QSB
ITEM 1 - FINANCIAL STATEMENTS
OAKRIDGE HOLDINGS, INC.
CONSOLIDATED BALANCE SHEET
(UNAUDITED)
<CAPTION>
LIABILITIES September 30,1997 June 30,1997
_________________ ____________
<S> <C> <C>
Note payable - bank $75,000 $75,000
---------- ----------
Accounts payable - trade 73,637 42,418
---------- ----------
Accrued liabilities:
Salaries & payroll taxes 107,767 124,971
Perpetual care trust fund 214,067 227,087
Deferred revenue 399,872 389,609
Marker and inscription costs 101,662 77,976
Other 32,704 35,667
---------- ----------
856,072 855,310
---------- ----------
Notes payable 703,870 706,603
---------- ----------
STOCKHOLDERS' EQUITY
Preferred stock, par value $.10 per
share; authorized 1,000,000 shares,
none issued and outstanding - -
Common stock, par value $.10 per share;
authorized 5,000,000 shares, issued
and outstanding 1,309,670 at
September 30, 1996 and June 30, 1996 130,968 130,968
Additional paid-in-capital 1,875,500 1,875,500
Accumulated deficit (891,140) (1,002,881)
---------- ----------
1,115,328 1,003,587
---------- ----------
$2,823,907 $2,682,918
========== ==========
</TABLE>
<TABLE>
PART I - FINANCIAL INFORMATION FORM 10-QSB
ITEM 1 - FINANCIAL STATEMENTS
OAKRIDGE HOLDINGS, INC.
CONSOLIDATED STATEMENT OF OPERATIONS AND ACCUMULATED DEFICIT
(UNAUDITED)
<CAPTION>
Three Months Ended September 30,
1997 1996
_______________________________
<S> <C> <C>
Revenue, net:
Cemetery $681,454 $595,130
Interest - Care Funds 49,593 59,291
---------- ----------
Total revenue 731,047 654,421
---------- ----------
Operating expenses:
Cemetery 318,921 300,121
Selling 73,843 64,535
General and administrative 179,241 196,959
---------- ----------
Total operating expenses 572,005 561,615
---------- ----------
Income from operations 159,042 92,806
Interest expense 2,301 22,879
---------- ----------
Income from continuing operations 156,741 69,927
Income taxes 45,000 17,482
---------- ----------
Net income 111,741 52,445
Accumulated deficit:
Beginning of period (1,002,881) (1,217,313)
---------- ----------
End of period $(891,140) $(1,164,868)
========== ==========
Earnings per share $.085 $.040
========== ==========
Weighted average shares outstanding 1,309,670 1,309,670
========== ==========
</TABLE>
<TABLE>
PART I - FINANCIAL INFORMATION FORM 10-QSB
ITEM 1 - FINANCIAL STATEMENTS
OAKRIDGE HOLDINGS, INC.
CONSOLIDATED STATEMENT OF CASH FLOWS
(UNAUDITED)
<CAPTION>
Three Months Ended September 30,
1997 1996
_______________________________
<S> <C> <C>
Cash flows from operating activities:
Net income $111,741 $52,445
Adjustments to reconcile net income to
cash flows from operating activities:
Depreciation & Amortization 18,117 20,438
Change in receivables (50,263) (37,787)
Change in inventories 7,279 (470)
Change in prepaid and other assets (49,625) 849
Change in deferred income taxes 45,000 17,483
Change in accounts payable 31,219 36,404
Change in accrued liabilities 762 (19,346)
---------- ----------
Net cash from operating activities 113,960 70,016
---------- ----------
Cash flows from investing activities:
Purchase of property and equipment (50,265) (25,512)
---------- ----------
Net cash from investing activities (50,265) (25,512)
---------- ----------
Cash flows from financing activities:
Payments on long-term debt (2,733) (4,555)
---------- ----------
Net cash from financing activities (2,733) (4,555)
---------- ----------
Net increase (decrease) in cash: 60,962 39,949
Cash at beginning of period 382,287 264,691
---------- ----------
Cash at end of period $443,249 $304,640
========== ==========
</TABLE>
PART I - FINANCIAL INFORMATION FORM 10-QSB
ITEM 1 - FINANCIAL STATEMENTS
OAKRIDGE HOLDINGS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
A. The accompanying unaudited condensed consolidated financial
statements have been prepared in accordance with
instructions to Form 10-QSB and, accordingly, do not include
all 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 accruals, considered necessary for a
fair presentation have been included.
B. These statements should be read in conjunction with the
financial statements and footnotes included in the
Registrant's Annual Report on Form 10-KSB for the year ended
June 30, 1997, previously filed with the Commission.
C. The results of operations for the three months ended
September 30, 1997, are not necessarily indicative of
operating results to be expected for the full year.
D. Income tax provisions for interim periods are based on the
current best estimate of the effective federal and state
income tax rates spread evenly throughout the year.
E. Earnings per common share are based on the weighted average
number of common shares outstanding during each period.
PART 1 - FINANCIAL INFORMATION FORM 10-QSB
ITEM 2 - MANAGEMENT'S DISCUSSION AND
ANALYSIS OR PLAN OF OPERATION
OAKRIDGE HOLDINGS, INC.
FINANCIAL & LIQUIDITY AND CAPITAL RESOURCES
Since June 30, 1997 "operating working capital" (defined as
receivables and prepaids less accounts payable and accrued
liabilities) increased $67,907. The increase was primarily due to
higher receivables and increased prepaids, with the increase
being offset by accounts payable. The company showed the largest
increase in receivables due to its increase in pre-need sales and
at-need sales,and prepaids increased due to timing of payments.
The increase in accounts payable is primarily due to legal fees
and timing of payments.
Inventory and other assets remained constant with June 30,
1997, with the reduction of deferred taxes due to net income
earned during the first quarter. Investments remained constant
during the three month period.
Accounts payable increased $31,219 from June 30, 1997
primarily due to timing of payments and legal fees to collect
judgments against former board of directors and officers.
Accrued liabilities increased $767 from June 30, 1997
primarily due to deferred revenue associated with pre-need sales.
Notes payable decreased $2,733 from June 30, 1997 due to
payments of debt.
Stockholders' equity increased $111,741 from June 30, 1997
due to net income.
The Registrant's present working capital has continued to
improve and is sufficient to meet current operating needs.
The Registrant's capital expenditures for equipment was
$50,265 for the three months ended September 30, 1997. Consistent
with its ongoing goal to increase net sales and operating
efficiencies, the Registrant is investing substantial amounts to
increase its sales and operating efficiencies. The Registrant's
planned capital expenditures will require an additional $100,000
during the fiscal year 1998. The Registrant will be able to
finance these capital expenditures primarily from cash flow from
operations.
Cash and cash equivalents increased $60,962 during the first
three months of fiscal year 1998. Cash provided from operations
was $113,960, which provided for the purchase of equipment of
$50,265 and payments of debt of $2,733.
The remaining increases and decreases in the components of
the Company's financial position reflect normal operating
activity.
The Registrant's ratio of indebtedness for borrowed funds to
equity of 63% at September 30, 1997, was a decrease of 7% in
comparison with June 30, 1997.
During the first quarter of fiscal year 1998, the operating
cemeteries revenue increased 12% from the prior fiscal year 1997,
cost of sales decreased 4% of sales, selling expenses remained
relatively constant at 11% in relation to sales, with general and
administrative expenses decreasing 7%, and interest expense
decreasing $20,578. Cash flow from operations exceeded cash flow
used by operations by $60,962 in the first quarter of fiscal year
1998.
ENVIRONMENTAL LIABILITIES:
The Company has adopted a corporate environmental protection
policy. The implementation of this policy is a primary management
objective and the responsibility of each employee of the Company.
The Company is committed to the protection of human health and
the environment, and its operating within the complex laws and
the regulations of federal, state, and local environmental
agencies,and is taking action aimed at assuring compliance with
such laws and regulations. Environmental considerations are among
the criteria by which the Company evaluates operations, products,
and purchases and, accordingly, does not expect compliance with
these laws and regulations to have a material effect on the
Company's competitive position, financial condition, results of
operations or capital expenditures.
Subsequent to June 30, 1994, the Registrant commissioned an
engineering study of its operating cemeteries for the purpose of
determining the full extent of possible soil contamination. Five
underground tanks were found to require removal and the adjoining
soil to undergo remediation. The engineering estimate for this
project was $195,000. A total of approximately $292,000 has been
expensed by the Registrant as of September 30, 1997.
The Registrant has notified by the Illinois Environmental
Protection Agency that the clean-up plan may not be in full
compliance with EPA guidelines. The Company has responded to the
IEPA with a work plan that calls for additional costs of
approximately $28,500 with the possibility of additional costs.
The Company is awaiting a response on the work plan from the
IEPA. Additional costs beyond the $28,500 accrued at September
30, 1997 may be incurred, however, the Registrant cannot
reasonably estimate those costs. In addition, the Company may
not file for reimbursement from the Leaking Underground Storage
Tank Fund until the work plan has IEPA approval. Accordingly, the
Company has made no provision for reimbursements.
RESULTS OF OPERATIONS:
Cemetery - Cemetery sales increased 15% over the prior years as a
result of a increase in burials and cremations over the prior
period. The cost of sales decreased 4% from 51% over the prior
years as a result of increase sales and operating costs
associated with cost of sales remaining comparable to prior
period.
Interest - Care Funds - Income decreased 17% due to timing of
interest payments and recognition of trust revenue.
Other Income - Other Income is immaterial and comparable to the
prior period.
Selling Expenses - Selling expenses increased 14% in comparison
to prior period, primarily due to increase sales commisson
related to increased sales revenue.
General & Administration Expenses - General and administration
expenses decreased 9% in comparison to prior period. The decrease
was primarily due to decreased legal fees associated with
litigation.
SIGNATURES
In accordance with the requirements of the Exchange Act, the
Registrant has duly caused this report to be signed on its behalf
by the undersigned thereunto duly authorized.
Oakridge Holdings, Inc.
/s/ Robert C. Harvey
Robert C. Harvey
Chief Executive Officer
Date: November 4, 1997
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> JUN-30-1998
<PERIOD-END> SEP-30-1997
<CASH> 443,249
<SECURITIES> 0
<RECEIVABLES> 648,561
<ALLOWANCES> 15,000
<INVENTORY> 690,756
<CURRENT-ASSETS> 1,856,575
<PP&E> 1,810,515
<DEPRECIATION> 1,304,183
<TOTAL-ASSETS> 2,823,907
<CURRENT-LIABILITIES> 1,004,709
<BONDS> 0
0
0
<COMMON> 130,968
<OTHER-SE> 1,875,500
<TOTAL-LIABILITY-AND-EQUITY> 2,823,907
<SALES> 681,454
<TOTAL-REVENUES> 731,047
<CGS> 318,921
<TOTAL-COSTS> 253,084
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 2,301
<INCOME-PRETAX> 156,741
<INCOME-TAX> 45,000
<INCOME-CONTINUING> 111,741
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 111,741
<EPS-PRIMARY> .085
<EPS-DILUTED> .083
</TABLE>
