UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-QSB
(Mark One)
[X} QUARTERLY REPORT UNDER SECTION 13 OR 15(d)OF THE SECURITIES EXCHANGE
ACT OF 1934
For the quarterly period ended December 31, 1999
OR
[ ] 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)
(612) 686-5495
(Issuer's telephone number)
(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 [ ]
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: 1,388,003
Transitional Small Business Disclosure Format (Check One):
YES [X] NO[ ]
OAKRIDGE HOLDINGS, INC.
FORM 10-QSB
For the quarter ended December 31, 1999
TABLE OF CONTENTS
PART I. FINANCIAL INFORMATION
ITEM 1. Condensed Consolidated Financial Statements:
(a) Condensed Consolidated Balance Sheets as of December 31, 1999
(unaudited) and June 30, 1999
(b) Condensed Consolidated Statements of Operations for the
three months ended December 31, 1999 and 1998 (unaudited)and
six months ended December 31, 1999 and 1998 (unaudited)
(c) Condensed Consolidated Statements of Cash Flows for the
six months ended December 31, 1999 and 1998 (unaudited)
(d) Notes to Condensed Consolidated Financial Statements
ITEM 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations
PART II. OTHER INFORMATION
ITEM 1. Legal Proceedings
ITEMS 2-5. Not Applicable
ITEM 6. Exhibits and Reports on Form 8
SIGNATURES
PART I - FINANCIAL INFORMATION FORM 10-QSB
OAKRIDGE HOLDINGS, INC.
CONDENSED CONSOLIDATED BALANCE SHEET
(UNAUDITED)
ITEM 1 - FINANCIAL STATEMENTS
<TABLE>
ASSETS: December 31, 1999 June 30, 1999
(Unaudited)
_________________ _____________
<S> <C> <C>
Cash & cash equivalents $679,931 $950,907
Receivables 2,404,820 1,720,747
Inventories:
Production 2,061,965 1,854,221
Cemetery and mausoleum space 630,152 634,887
Markers, urns & flowers 19,478 20,367
Deferred income taxes 3,097 102,000
Other current assets 145,451 36,514
---------- ----------
Total current assets 5,944,894 5,319,643
---------- ----------
Property, plant and equipment, at cost 4,620,717 4,387,570
Allowance for depreciation 1,644,170 1,539,730
---------- ----------
2,976,547 2,847,840
---------- ----------
Other assets 49,458 64,537
---------- ----------
$8,970,899 $8,232,020
========== ==========
</TABLE>
<TABLE>
LIABILITIES: December 31, 1999 June 30, 1999
(Unaudited)
_________________ _____________
<S> <C> <C>
Notes payable & current maturities $1,340,000 $1,452,743
Accounts payable 640,146 601,186
Accrued customer deposits 47,032 25,248
Accrued compensation 118,877 375,657
Accrued perpetual care fund 222,501 212,781
Deferred revenue 536,922 507,711
Accrued marker and inscription costs 78,535 79,876
Other current liabilities 169,151 161,490
---------- ----------
Total current liabilities 3,153,164 3,416,692
---------- ----------
Long-term debt 3,779,068 3,044,075
---------- ----------
Total liabilities 6,932,232 6,460,767
---------- ----------
STOCK HOLDERS' EQUITY
Common stock & additional paid-in-capital 2,156,051 2,156,051
Accumulated deficit (117,384) (384,798)
---------- ----------
2,038,667 1,771,253
---------- ----------
$8,970,899 $8,232,020
========== ==========
</TABLE>
See accompanying notes to the condensed consolidated financial statements
PART I - FINANCIAL INFORMATION FORM 10-QSB
OAKRIDGE HOLDINGS, INC.
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
(UNAUDITED)
ITEM 1 - FINANCIAL STATEMENTS
<TABLE>
Three Months Ended December 31, Six Months Ended December 31,
1999 1998 1999 1998
_______________________________ _____________________________
<S> <C> <C> <C> <C>
Revenue, net:
Cemetery 619,991 612,363 1,231,765 1,213,576
Aviation 2,834,966 2,622,697 5,197,747 5,541,875
Interest - Care Funds 49,980 54,120 109,512 97,497
Other 25,040 133,229 27,781 136,554
--------- --------- --------- ---------
Total revenue 3,529,977 3,422,409 6,566,805 6,989,502
--------- --------- --------- ---------
Operating Expenses:
Cost of aviation sales 2,541,356 2,181,823 4,545,465 4,530,105
Cost of cemetery sales 337,309 326,820 673,152 648,181
Sales and marketing 201,584 136,416 364,919 272,586
General and administrative 196,530 316,006 445,010 489,299
--------- --------- --------- ---------
Total operating expenses 3,276,779 2,961,065 6,028,546 5,940,171
--------- --------- --------- ---------
Income from operations 253,198 461,344 538,259 1,049,331
Interest expense 87,521 102,011 171,942 203,101
--------- --------- --------- ---------
Income from continuing operations
before income taxes 165,677 359,333 366,317 846,230
Provision for income taxes 44,903 102,115 98,903 248,184
--------- --------- --------- ---------
Net income $120,774 $257,218 $267,414 $598,046
========= ========= ========= =========
Net income per common share - basic $.087 $.190 $.193 $.443
========= ========= ========= =========
Weighted average number of common
shares - basic 1,388,003 1,349,670 1,388,003 1,349,670
========= ========= ========= =========
Net income per common share - diluted $.066 $.131 $.145 $.302
========= ========= ========= =========
Weighted average number of common shares
outstanding - diluted 2,090,355 2,098,128 2,090,031 2,097,635
========= ========= ========= =========
</TABLE
See accompanying notes to the condensed consolidated financial statements
PART I - FINANCIAL INFORMATION FORM 10-QSB
OAKRIDGE HOLDINGS, INC.
CONSOLIDATED STATEMENT OF CASH FLOWS
(UNAUDITED)
ITEM 1 - FINANCIAL STATEMENTS
</TABLE>
<TABLE>
Six Months Ended December 31,
1999 1998
______________ _____________
<S> <C> <C>
Cash flows from operating activities:
Net income $267,414 $598,046
Adjustments to reconcile net income to
cash flows from operating activities:
Depreciation & Amortization 107,493 96,896
Change in accounts receivable (684,073) 83,439
Change in inventories (202,120) 614,658
Change in deferred income taxes 98,903 83,325
Change in other assets (96,911) (32,173)
Change in accounts payable 38,960 (158,511)
Change in accrued liabilities (189,745) (95,175)
---------- ----------
Net cash from operating activities (660,079) 1,190,505
---------- ----------
Cash flows from investing activities:
Purchase of property and equipment (233,147) (494,321)
---------- ----------
Net cash from investing activities (233,147) (494,321)
---------- ----------
Cash flows from financing activities:
Proceeds from long-term borrowings 700,000 -
Repayment on long-term debt (40,139) (40,993)
Repayment on short-term borrowing (37,611) (894,347)
Proceeds from issuance of common stock - 80,000
---------- ----------
Net cash from financing activities 622,250 (855,340)
---------- ----------
Net increase (decrease) in cash: (270,976) (159,156)
Cash at beginning of period 950,907 823,458
---------- ----------
Cash at end of period $679,931 $644,302
========== ==========
</TABLE>
See accompanying notes to the condensed consolidated financial statements
PART I - FINANCIAL INFORMATION FORM 10-QSB
ITEM 1 - FINANCIAL STATEMENTS
OAKRIDGE HOLDINGS, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
1. BASIS OF PRESENTATION
The accompanying Condensed Consolidated Financial Statements include the
accounts of Oakridge Holdings, Inc. (the "Company")and its wholly-owned
subsidiaries. All significant intercompany transactions and balances have
been eliminated. In the opinion of management, the accompanying unaudited
condensed consolidated financial statements include all adjustments,
consisting only of normal recurring adjustments, necessary to present such
information fairly. Certain information and footnote disclosures normally
included in financial statements prepared in accordance with generally
accepted accounting principles have been condensed or omitted pursuant to
Securities and Exchange Commission rules and regulations. These condensed
consolidated financial statements should be read in conjunction with the
consolidated financial statements and related notes included in the
Company's Annual Report on Form 10-KSB for the fiscal year ended June 30,
1999. Operating results for the six month period ended December 31, 1999
may not necessarily be indicative of the results to be expected for any
other interim period or for the full year.
The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the
financial statements, and the reported amounts of revenues and expenses
during the reporting period. The most significant estimates in the
financial statements include but are not limited to accounts receivable,
sales, and accruals. Actual results could differ from those estimates.
2. EARNINGS PER COMMON SHARE
Earnings per Common Share (EPS) is presented on both a basic and diluted
basis in accordance with the provisions of Statement of Financial
Accounting Standards No. 128, "Earnings per Share." Basic EPS is computed
by dividing net income by the weighted average number of shares of common
stock outstanding during the period. Diluted EPS reflects the maximum
dilution that would results after giving effect to dilutive stock options
and convertible debentures. The following table presents the computation
of basic and diluted EPS.
<TABLE>
Six Months Ended December 31,
1999 1998
---------- ----------
<S> <C> <C>
Income from continuing operations $ 267,414 $ 598,046
Average shares of common stock outstanding
used to compute basic earnings per common share 1,388,003 1,349,670
Additional common shares to be issued assuming
exercise of stock options, and conversion of
convertible debentures 702,028 747,965
Additional income from continuing operations,
assuming conversion of convertible debentures
at the beginning of the period 36,234 36,234
Shares used to compute dilutive effect
of stock options and convertible debentures 2,090,031 2,097,635
Basic earnings per common share from
continuing operations $.193 $.443
Diluted earnings per common share
from continuing operations $.145 $.302
</TABLE>
3. OPERATING SEGMENTS AND RELATED DISCLOSURES
The Company operations are classified into two principal industry segments:
cemeteries and aviation ground support equipment.
The Company evaluates the performance of its segments and allocates
resources to them based primarily on operating income. The table below
summarizes information about reported segments for the three months and six
months ended December 31:
<TABLE>
Six Months Ended
December 31, 1999:
Aviation
Ground
Support
Equipment Cemeteries Corporate Consolidated
<S> <C> <C> <C> <C>
Revenues $5,197,747 1,365,477 3,581 6,566,805
Cost of Sales 4,545,465 673,152 - 5,218,617
Gross Profit 652,282 692,325 3,581 1,348,188
Selling, General &
Administrative Expenses 429,860 289,136 90,933 809,929
Operating Income 222,422 403,189 (87,352) 538,259
Depreciation
And Amortization 67,761 38,115 1,617 107,493
Assets 6,012,134 2,665,178 293,587 8,970,899
Capital Expenditures 67,880 165,224 43 233,147
</TABLE>
See accompanying notes to the condensed consolidated financial statements
<TABLE>
Three Months Ended
December 31, 1999:
Aviation
Ground
Support
Equipment Cemeteries Corporate Consolidated
<S> <C> <C> <C> <C>
Revenues $2,834,966 $694,171 $840 3,529,977
Cost of Sales 2,541,356 337,309 - 2,878,665
Gross Profit 293,610 356,862 840 651,312
Selling, General &
Administrative Expenses 220,174 143,167 34,773 398,114
Operating Income 73,436 213,695 (33,933) 253,198
Depreciation
And Amortization 25,764 18,607 867 45,238
Assets 6,012,134 2,665,178 293,587 8,970,899
Capital Expenditures 49,859 24,385 43 74,287
</TABLE>
See accompanying notes to the condensed consolidated financial statements
<TABLE>
Six Months Ended
December 31, 1998:
Aviation
Ground
Support
Equipment Cemeteries Corporate Consolidated
<S> <C> <C> <C> <C>
Revenues $5,541,875 1,441,833 5,794 6,989,502
Cost of Sales 4,530,105 648,181 - 5,178,286
Gross Profit 1,011,770 793,652 5,794 1,811,216
Selling, General &
Administrative Expenses 327,884 303,921 130,080 761,885
Operating Income 683,886 489,731 (124,286) 1,049,331
Depreciation
And Amortization 58,753 36,147 1,996 96,896
Assets 6,421,178 2,372,874 184,271 8,978,323
Capital Expenditures 269,459 224,862 - 494,321
</TABLE>
See accompanying notes to the condensed consolidated financial statements
<TABLE>
Three Months Ended
December 31,1998:
Aviation
Ground
Support
Equipment Cemeteries Corporate Consolidated
<S> <C> <C> <C> <C>
Revenues $2,622,697 797,243 2,469 3,422,409
Cost of Sales 2,181,823 236,820 - 2,508,643
Gross Profit 440,874 470,423 2,469 913,766
Selling, General &
Administrative Expenses 226,280 161,863 64,279 452,422
Operating Income 214,594 308,560 (61,810) 461,344
Depreciation
And Amortization 30,366 18,074 998 49,438
Assets 6,421,178 2,372,874 204,271 8,998,323
Capital Expenditures 117,394 99,819 - 217,213
</TABLE>
See accompanying notes to the condensed consolidated financial statements
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
The following is management's discussion and analysis of certain
significant factors which have affected the Company's financial position
and operating results during the periods included in the accompanying
condensed consolidated financial statement.
Management's discussion and analysis of financial condition and results of
operations, as well as other portions of this document, include certain
forward-looking statements about the Company's business and products,
revenues, expenditures and operating and capital requirements. The Private
Securities Litigation Reform Act of 1995 contains certain safe harbors
regarding forward-looking statements. From time to time, information
provided by the Company or statements made by its directors, officers or
employees may contain "forward-looking" information subject to numerous
risks and uncertainties. Any statements made herein that are not
statements of historical fact are forward-looking statements including, but
not limited to, statements concerning the characteristics and growth of the
Company's markets and customers, the Company's objectives and plans for the
future operations and products and the Company's expected liquidity and
capital resources. Such forward-looking statements are based on a number
of assumptions and involve a number of risks and uncertainties, and,
accordingly, actual results could differ materially.
OAKRIDGE HOLDINGS, INC. AND SUBSIDIARIES
PART I - FINANCIAL STATEMENTS
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
FINANCIAL CONDITION AND LIQUIDITY
The Company's liquidity needs arise from its debt service, working capital
and capital expenditures. The Company has historically funded its
liquidity needs with proceeds from equity contributions, bank borrowing,
cash flow from operations and the offering of its' subordinated debentures.
The Company for the first six months of fiscal year 2000 had a decrease in
cash of $270,976 compared to a cash decrease in the same period in fiscal
year 1999 of $159,156. As of December 31, 1999, the Company had no cash
equivalents. During the six month period ended December 31, 1999, the
Company recorded net income of $267,414. The Company's net cash used by
operating activities was $660,079 in the first six months of fiscal year
2000 compared to net cash from operating activities of $1,190,505 in the
same comparable period in fiscal year 1999. The decrease in net cash from
operating activities was primarily due to increased accounts receivables
and inventories. The increase in accounts receivable was due to increased
sales in the month of December 1999. The increase in inventories was due to
the anticipated Y-2K and sales backlog. Cash flow used in investing
activities was $233,147 due to capital expenditures, and net cash from
financing activities was $622,250 due to financing of accounts receivable
and inventories. The remaining increases and decreases in the components
of the Company's financial position reflects normal operating activity.
The Company continues to maintain a good financial position, with working
capital of $2,791,730, an increase of $888,779 since June 30, 1999. The
increase was primarily due to refinancing of debt from short term to long
term and net income. Current assets amounted to $5,944,894 and current
liabilities were $3,153,164, resulting in a current ratio of 1.9 to 1,
which resulted in a change of .4 since June 30, 1999. With debt of
$6,932,232 and equity of $2,038,667 at December 31, 1999, the debt as a
percentage of total capital was 77.3%, compared with 78.5% at June 30,
1999.
The Company's present working capital continued to improve and is
sufficient to meet current operating needs.
Capital expenditures for the six months of fiscal year 2000 were $233,417
compared with $494,321 the same period in fiscal year 1999. The
investments reflect the Company's continuing program to achieve business
growth and to improve productivity and product quality in the aviation
ground support equipment business and the repaving of roads in the cemetery
business. The Company anticipates that it will spend approximately $125,000
on capital expenditures during the next two quarters of fiscal year 2000.
The Company will be able to finance these capital expenditures primarily
from cash flow from operations.
The stock price ranged from $1.75 to $7.00 per share during the six months
of the Company's fiscal year 2000. The Company's book value per share at
December 31, 1999 was $1.47 compared with $1.28 at June 30, 1999. The
Company's annualized return from continuing operations on average equity
for the six months of fiscal year 2000 was 13% compared with 29% for the
six months of fiscal year 1999. The annualized return from continuing
operations on average assets was 3.1% compared with 7% for the six months
of fiscal year 1999. The Company has available through two banks, a
$3,200,00 revolving credit facility. As of December 31, 1999 there was
$1,166,841 in aggregate borrowing outstanding under these facilities.
As indicated by the above, the Company's financial position and debt
capacity should enable I to meet its current and future requirements. As
additional resources are needed, the Company should be able to obtain funds
readily and at competitive costs.
INFLATION
Because of the relatively low levels of inflation experienced this past
fiscal year, and as of December 31, 1999, inflation did not have a
significant effect on the Company's results in the first three months of
fiscal year 2000.
YEAR 2000
The Company utilizes management information systems and software technology
that may be affected by Year 2000 issues throughout its businesses. During
fiscal year 1999, the Company began to implement plans to ensure those
systems continue to meet its internal and external requirements. During
fiscal year 2000, the Company will continue to complete the modifications
and testing of it s information systems to ensure it is Year 2000
compliant. The Company has developed questionnaires and contacted key
suppliers and customers regarding their Year 2000 compliance to determine
any impact on its operations. In general, the suppliers and customers have
developed or are in the process of developing plans to address Year 2000
issues. The Company will continue to monitor and evaluate the progress of
its suppliers and customers on this critical matter.
The Year 2000 did not have a material impact on the Company's current
information systems as a result of the steps already completed to make the
Company's systems Year 2000 compliant. Based on the nature of the Company's
business, the Company anticipates it is not likely to experience material
business interruption due to the impact of Year 2000 compliance on its
customers and vendors. As a result, the Company does not anticipate that
incremental expenditures to address Year 2000 compliance will be material
to the Company's liquidity, financial position or results of operations.
RESULTS OF OPERATIONS
SIX MONTHS OF FISCAL YEAR 2000
COMPARED WITH SIX MONTHS OF FISCAL YEAR 1999
Cemetery Operations:
Revenues for the six months ended December 31, 1999 was $1,231,765, or an
increase of $18,189 or 1.5%, when compared to the six months ended December
31, 1998. The increase was primarily due to sales of markers and
foundations, and cemetery lots sales.
Cost of sales in relation to sales for the six months ended December 31,
1999 was $673,152, or an increase of $24,971 or 3.9%, when compared to the
six months ended December 31, 1998. The increase is contributed to cost of
goods purchased form outside vendors.
Selling expenses for the six months ended December 31, 1999, was $99,367,
or a decrease of $4,703 or 5%, when compared to the six month ended
December 31, 1998. The decrease was due to the different sales percentage
paid to sales counselors in relation to sales of goods.
Other income for the six months ended December 31, 1999, was $24,200 or a
decrease of $108,300. The decrease is contributed to the one time
settlement of $132,500 in fiscal year 1998 for land condemnation.
Holding Operations:
Revenues for the six months ended December 31, 1999 was $3,581 or a
decrease of $2,213, when compared to the six months ended December 31,
1998. The increase is due to having less funds in savings.
General and administrative expenses for the six months ended December 31,
1999 was $90,933, or a decrease of $39,147 when compared to the six month
ended December 31, 1998. The decrease can be contributed to lower
professional fees associated with legal representation.
Interest expense for the six months ended December 31, 1999 was $53,638, or
a decrease of $33,065 when compared to the six months ended December 31,
1998. The decrease can be contributed to lower bank debt and number or
periods interest on the subordinated debentures.
Stinar Operations:
Revenues for the six months ended December 31, 1999 was $5,197,747, or a
decrease of $344,128 or 6%, when compared to the six months ended December
31, 1998. The decrease was primarily due to sales revenue being less, due
to the customer supplying the vehicle for the equipment being mounted. The
sales makeup was 10% to United States Government entities, 41% to
international airlines and 49% to commercial airlines in the United States.
Cost of sales in relation to sales for the six months ended December 31,
1999, was 87.5% or increase of 5.8%, when compared to the six months ended
December 31, 1998. The increase was primarily due to 7.7% increase in the
cost of raw materials and 3% increase in direct labor costs which were
offset by 2.7% reduction in utilities, shop supplies, freight, insurance
and miscellaneous expenses.
Selling expenses in relation to sales for the fist six months ended
December 31, 1999, was $241,899 or 4.7%, which is a comparable percentage
to the six months ended December 31, 1998.
General and administrative expenses in relation to sales for the six months
ended December 31, 1999, was $164,309 or an increase of 12.4%, when
compared to the six months ended December 31, 1998. The increase was
primarily due to one additional office employee, training costs of
technical writer to convert manual to CD rom, and research and development
associated with the development of the Torero-Stinar equipment.
Other expenses which consist of interest expense for the six month ended
December 1, 1999, was $118,160 or a decrease of 13%, when compared to the
six month ended December 31, 1998. The decrease was due to reduction of
debt due to prior owners.
RESULTS OF OPERATIONS
THREE MONTHS ENDED DECEMBER 31, 1999
COMPARED WITH THREE MONTHS ENDED DECEMBER 31, 1998
Cemetery Operations:
Revenues for the three months ended December 31, 1999 was $619,991, or an
increase of $7,628 or 1%, when compared to the three months ended December
31, 1998. The increase was primarily due to sales of markers and
foundations and cemetery lot sales.
Cost of sales in relation to sales for the three month period ended
December 31, 1999 was $337,309 or increase of 1%, when compared to the
three month period ended December 31, 1998. With the increase being
contributed to health insurance.
Gross profit for three months ended December 31,1999 was $282,682 or 45.6%,
a decrease 1%, when compared to the three month period ended December 31,
1998.
Selling expenses for the three months ended December 31, 1999 was $49,543
or a decrease of $6,686, when compared to the three month period ended
December 31, 1998. The decrease was due to the different sales percentage
paid to sales counselors in relation to sales of goods.
General and administrative for the three months ended December 31, 1999 was
$93,624 or a decrease of $12,000, when compared to the three month period
ended December 31, 1998. The decrease was due to lower professional fees.
Other income for the three months ended December 31, 1999, was $24,200 or a
decrease of $108,300, when compared to the three months ended December 31,
1998. The decrease is contributed to a one time settlement of $132,500
with the state of Illinois in regards to land condemnation.
Holdings Operations:
General and administrative for the three months ended December 31, 1999 was
$34,773 or a decrease of $29,506, when compared to the three month period
ended December 31, 1998. The decrease is primarily due to a decrease in
professional fees.
Stinar Operations:
Revenues for the three months ended December 31, 1999 increased $212,269 or
8%, when compared to the three months ended December 31, 1998. The
increase is due to increased sales in the stairs department from sales
order for Turkey.
Cost of sales in relation to sales for the three months ended December 31,
1999 was 90% or an increase of 7% when compared to the three months ended
December 31, 1998. The increase was due to 7.7% increase in the cost of
raw materials, and 3% increase in labor costs.
Selling Expenses in relation to sales for the three months ended December
31, 1999 was 4.5% or a decrease of .7% when compared to the three months
ended December 31, 1998. The decrease is primarily due to one less
salaried salesperson who is now a commission only salesman.
General and administrative expenses for the three months ended December 31,
1999 was $100,882, or an increase of $11,433, when compared to the three
months ended December 31, 1998. The increase is due to research and
development expenses associated with the Torero-Stinar equipment.
PART II OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
The Company is from time to time involved in ordinary litigation
incidental to the conduct of its businesses. The Company
believes that none of its pending litigation will have a material
adverse effect on the Company's businesses, financial condition
or results of operations.
ITEM 2. CHANGES IN SECURITIES AND USE OF PROCEEDS
Not applicable.
ITEM 3. DEFAULTS UPON SENIOR SECURITIES
Not applicable.
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
Not applicable.
ITEM 5. OTHER INFORMATION
Not applicable.
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) No exhibits are included herein
(b) No reports on Form 8 were filed during the quarter.
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: February 11, 2000
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> JUN-30-2000
<PERIOD-END> DEC-31-1999
<CASH> 679,931
<SECURITIES> 0
<RECEIVABLES> 2,437,820
<ALLOWANCES> 33,000
<INVENTORY> 2,711,595
<CURRENT-ASSETS> 5,944,894
<PP&E> 4,620,717
<DEPRECIATION> 1,644,170
<TOTAL-ASSETS> 8,970,899
<CURRENT-LIABILITIES> 3,153,164
<BONDS> 0
0
0
<COMMON> 138,801
<OTHER-SE> 1,899,866
<TOTAL-LIABILITY-AND-EQUITY> 8,970,899
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<TOTAL-REVENUES> 6,566,805
<CGS> 5,218,617
<TOTAL-COSTS> 6,028,546
<OTHER-EXPENSES> 0
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<INTEREST-EXPENSE> 171,942
<INCOME-PRETAX> 366,317
<INCOME-TAX> 98,903
<INCOME-CONTINUING> 267,414
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 267,414
<EPS-BASIC> .193
<EPS-DILUTED> .145
</TABLE>
