<PAGE> 1
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-QSB
(Mark One)
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarterly period ended April 30, 1996
- - --------------------------------------------------------------------------------
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the transition period from to
================================================================================
Commission file number: 0-188
- - --------------------------------------------------------------------------------
CEC Properties, Inc.
- - --------------------------------------------------------------------------------
(EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)
California 13-1919940
- - --------------------------------------------------------------------------------
STATE OR OTHER JURISDICTION OF INCORPORATI IRS EMPLOYER IDENTIFICATION NUMBER
1500 W. Balboa Blvd., Suite 201, Newport Beach, CA 92663
- - --------------------------------------------------------------------------------
ADDRESS OF PRINCIPAL EXECUTIVE OFFICES(ZIP CODE)
- - --------------------------------------------------------------------------------
(714) 673-2282
- - --------------------------------------------------------------------------------
REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE
N/A
- - --------------------------------------------------------------------------------
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 Exchange Act of 1934
during the preceding 12 months (or for such shorter period that the registrant
was required to file reports), and (2) has been subject to such filing
requirements for the past 90 days.
YES X NO_______
APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY
PROCEEDINGS DURING THE PRECEDING FIVE YEARS:
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
subsequent to the distribution of securities under a plan confirmed by a court.
N/A
YES NO_______
APPLICABLE ONLY TO CORPORATE ISSUERS:
Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the latest practicable date: 12,566,698
<PAGE> 2
CEC PROPERTIES, INC. AND SUBSIDIARY
INDEX TO FORM 10-QSB
APRIL 30, 1996
Part I - Financial Information
Item 1 - Financial Statements
Item 2 - Management's Discussion and Analysis or Plan of Operation
Part II - Other Information
Item 1 - Legal Proceedings
Item 2 - Changes in Securities
Item 3 - Defaults Upon Senior Securities
Item 4 - Submission of Matters to a Vote of Security Holders
Item 5 - Other Information
Item 6 - Exhibits and Reports on Form 8-K
Signatures
<PAGE> 3
CEC PROPERTIES, INC. AND SUBSIDIARY
Part I - Financial Information
ITEM 1 - FINANCIAL STATEMENTS
- Consolidated Balance Sheet
- Consolidated Income Statements
- Consolidated Statements of Cash Flow
- Notes to Consolidated Financial Statements
<PAGE> 4
CEC PROPERTIES, INC. AND SUBSIDIARY
CONSOLIDATED BALANCE SHEET
(Unaudited)
April 30, 1996
--------------
<TABLE>
<CAPTION>
<S> <C>
ASSETS
Investment properties $ 1,055,446
Cash 19,162
Other 36,560
===============
$ 1,111,168
===============
LIABILITIES AND SHAREHOLDERS' EQUITY
Trust deeds payable $ 1,043,719
Due to shareholders 32,855
Other 7,638
--------------
Total Liabilities 1,084,212
Common stock 125,667
Additional paid-in capital 23,297,402
Accumulated deficit (23,396,113)
Net stockholders' equity 26,956
===============
$ 1,111,168
===============
</TABLE>
See accompanying notes.
<PAGE> 5
CEC PROPERTIES, INC. AND SUBSIDIARY
CONSOLIDATED INCOME STATEMENTS
(Unaudited)
For the periods ended
<TABLE>
<CAPTION>
April 30, 1995 April 30, 1996 April 30, 1995 April 30, 1996
REVENUES: Three Months Three Months Six Months Six Months
Rental income
<S> <C> <C> <C> <C>
$ -- $ 18,542 $ -- $ 39,675
Other
-- 48,475 -- 49,080
-----------------------------------------------------------
Total income
-- 67,017 -- 88,755
EXPENSES:
Interest -- 23,010 -- 40,534
General & administrative expenses
-- 32,147 -- 45,956
-----------------------------------------------------------
Total expenses 55,157 86,490
===========================================================
NET INCOME
$ -- $ 11,860 $ -- $ 2,265
===========================================================
NET INCOME PER COMMON SHARE
$ -- $ .001 $ -- $ --
===========================================================
WEIGHTED AVERAGE SHARES 12,566,698 12,566,698
</TABLE>
See accompanying notes.
<PAGE> 6
CEC PROPERTIES, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF CASH FLOW
(Unaudited)
For the six months ended
<TABLE>
<CAPTION>
CASH FLOWS FROM OPERATING ACTIVITIES: April 30, 1995 April 30, 1996
-------------- --------------
<S> <C> <C>
Net income $ - $ 2,265
Adjustments to reconcile net income to net cash provided by operating
activities:
Depreciation - 10,760
Decrease in other liabilities - (5,781)
Increase in other assets - (13,995)
--------
NET CASH (USED) PROVIDED BY OPERATING ACTIVITIES (6,751)
CASH FLOWS FROM INVESTING ACTIVITIES:
Increase in investmen properties - (6,682)
NET CASH (USED) PROVIDED BY INVESTING ACTIVITIES - --------
(6,682)
CASH FLOWS FROM FINANCING ACTIVITIES:
Increase in trust deeds payable - 321
Decrease in due to shareholder (4,745)
--------
NET CASH (USED) PROVIDED BY FINANCING ACTIVITIES (4,424)
Net change in cash (17,857)
CASH, beginning of period 37,019
========
CASH, end of period $ 19,162
</TABLE>
See accompanying notes.
<PAGE> 7
CEC PROPERTIES, INC. AND SUBSIDIARY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
The accompanying consolidated financial statements include the accounts of the
company and its wholly owned subsidiary, CEC Properties, Corp. All significant
intercompany transactions and balances have been eliminated in consolidation.
These interim financial statements include all adjustments which in the opinion
of management are necessary to make the financial statements not misleading.
<PAGE> 8
CEC PROPERTIES, INC. AND SUBSIDIARY
ITEM 2 - MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION
Plan of Operation
The corporation continues in its plan of seeking real estate properties for
acquisition as well as opportunities in the oil and gas industry. Although
management did not close any significant transactions during the quarter ended
April 30, 1996, management has identified properties it intends to make offers
of purchase on once the due diligence process has been completed. These
properties include office, retail and multi-family sites in and outside of the
state of California. The company intends to complete purchases of these
projects, if approved by the Board of Directors, through a combination of debt,
equity and issuance of common stock of the Corporation.
Management is of the opinion capital, liquidity and income derived from rental
properties now owned are sufficient to meet the day to day operations of the
company for the near future. The company is reporting a year to date profit of
$2,265 for the quarterly period ended April 30, 1996. Management has no
intentions of increasing over-head or the number of full-time employees until
sufficient income and asset growth warrant such increases.
<PAGE> 9
CEC PROPERTIES, INC. AND SUBSIDIARY
Part II - Other Information
ITEM 1 - LEGAL PROCEEDINGS
None.
ITEM 2 - CHANGES IN SECURITIES
None.
ITEM 3 - DEFAULTS UPON SENIOR SECURITIES
N/A
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
Exhibit 27 - Financial Data Schedule
<PAGE> 10
CEC PROPERTIES, INC. AND SUBSIDIARY
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.
CEC PROPERTIES, INC.
Registrant
/s/ PAUL BALALIS JUNE 14, 1996
- - -------------------------------- -------------------------
Paul Balalis, President Date
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE 10-QSB
FOR THE PERIOD ENDED APRIL 30, 1996
</LEGEND>
<MULTIPLIER> 1
<CURRENCY> U.S. DOLLARS
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> OCT-31-1995
<PERIOD-START> FEB-01-1996
<PERIOD-END> APR-30-1996
<EXCHANGE-RATE> 1
<CASH> 19,162
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 1,111,168
<CURRENT-LIABILITIES> 0
<BONDS> 1,043,719
0
0
<COMMON> 125,667
<OTHER-SE> (98,711)
<TOTAL-LIABILITY-AND-EQUITY> 1,111,168
<SALES> 0
<TOTAL-REVENUES> 88,755
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 45,956
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 40,534
<INCOME-PRETAX> 2,265
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 2,265
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
