SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
QUARTER REPORT UNDER SECTION 13 0R 15(d)
September 30, 1996 0-13499
For Quarter Ended___________________Commission File Number____________
World Services, Inc.
_________________________________________________________________
(Exact name of registrant as specified in its charter)
South Dakota 46-0355586
_________________________________________________________________
(State of other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
404 South Lincoln Aberdeen, South Dakota 57401
_________________________________________________________________
(Address if principal executive offices) (Zip Code)
(605) 225-4131
Registrant's telephone number, including area code_______________
Not Applicable
_________________________________________________________________
(Former name, former address and former fiscal year, if changed since
last report.)
Indicate by check whether the registrant (1) has
filed all reports required to be filed by Section X
13 or 15 (d) of the Securities Exchange Act of 1934 Yes_____
during the preceding 12 months (or for such shorter
period that the registrant was required to file such No______
reports), and (2) has been subject to such filing
requirements for the past 90 days.
Indicate the number of shares outstanding of each of the issuer's
classes of common stock as of the close of the period covered by this
report.
Class Outstanding at September 30,1996
______________________________ _________________________________
Common stock, $.01 par value 5,358,627
Page 1 of 8
Form 10-Q
3rd Quarter
INDEX
PART I- FINANCIAL INFORMATION*
Consolidated Balance Sheet - September 30, 1996
and December 31, 1995 3
Consolidated Statements of Operation - Nine
months ended September 30, 1996 and 1995 4
Consolidated Statements of Cash Flows - Nine
months ended September 30, 1996 and 1995 5
Notes to Consolidated Financial Statements 6
Management's Discussion and Analysis 7
PART II - OTHER INFORMATION
Signatures 8
* The accompanying financial statements are not covered by
an Independent Certified Public Accountants' Report.
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WORLD SERVICES, INC.
BALANCE SHEET
ASSETS
September 30, December 31,
1996 1995
CURRENT ASSETS
Cash and cash equivalents $ 12,713 $ 9,000
Certificate of Deposit 240,000 200,000
------------ ------------
TOTAL CURRENT ASSETS 252,713 209,000
PROPERTY AND EQUIPMENT
Office Equipment 2,882 -
------------ ------------
INVESTMENTS AND OTHER ASSETS
Investment in First Savings
& Loan 307,000 307,000
Investment in Super 8 Motel
Developers 568,000 568,000
Other 4,000 4,000
------------ ------------
TOTAL OTHER ASSETS 879,000 879,000
------------ ------------
TOTAL ASSETS $ 1,134,595 $ 1,088,000
============ ============
LIABILITIES AND STOCKHOLDERS EQUITY
CURRENT LIABILITIES
Accounts payable and accrued
expenses $ 3,186 $ 10,000
----------- ------------
STOCKHOLDERS EQUITY
Preferred stock, par value $.01,
10,000 shares authorized, no
shares issued - -
Common stock, par value $.01 per
share; (50,000,000 shares
authorized 5,358,627 shares
issued) 53,000 53,000
Additional paid in capital 6,497,000 6,497,000
Treasury Stock at cost, 128,350
shares (3,000) (3,000)
Accumulated Deficit (5,415,591) (5,469,000)
------------ ------------
TOTAL STOCKHOLDERS' EQUITY 1,131,409 1,078,000
------------ ------------
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $ 1,134,595 $ 1,088,000
============ ============
See accompanying notes to these financial statements.
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WORLD SERVICES, INC.
STATEMENTS OF OPERATIONS
Nine Months Twelve Months
Ended Ended
September 30 December 31
------------- -------------
1996 1995
REVENUE
Interest Income $ 15,248 $ 7,000
Dividend Income 79,701 34,000
Miscellaneous Income 272 0
---------- ----------
Total Revenue 95,221 41,000
---------- ----------
EXPENSES
Legal and accounting 26,122 38,000
Other general and administrative
expenses 15,690 2,000
---------- ----------
Total Expenses 41,812 40,000
---------- ----------
Net Income before Undistributed Income 1,000
Undistributed Income - Equity Method 40,000
NET INCOME (LOSS) $ 53,409 $ 41,000
========== ==========
INCOME (LOSS) PER SHARE OF COMMON STOCK .01 *
========== ==========
AVERAGE NUMBER OF SHARES OUTSTANDING 5,358,627 5,358,627
========== ==========
____________________________________________
*Less than $.01 per share.
See accompanying notes to these financial statements.
-4-
WORLD SERVICES, INC.
STATEMENTS OF CASH FLOWS
Nine Twelve
Months Months
Ended Ended
September 30 December 31
------------ -------------
1996 1995
CASH FLOWS FROM OPERATING ACTIVITIES
Net Income (Loss) $ 53,409 $ 41,000
Adjustment to reconcile net income
(loss) to cash from operating activities:
Decrease in accounts payable and
accrued expenses (6,814) -
---------- ----------
NET CASH PROVIDED BY (USED IN)
OPERATING ACTIVITIES 46,595 41,000
CASH FLOWS FROM INVESTING ACTIVITIES:
Sale of certificate of deposit 100,000 -
Purchase of certificate of deposit (140,000) -
Purchase of Office Equipment (2,882) -
Additional Investment in First
Savings & Loan (40,000)
---------- ---------
NET CASH PROVIDED BY INVESTING ACTIVITIES (42,882) (40,000)
INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS 3,713 1,000
CASH AND CASH EQUIVALENTS,
AT BEGINNING OF PERIOD 9,000 8,000
---------- ---------
CASH AT END OF PERIOD $ 12,713 $ 9,000
========== =========
SUPPLEMENTAL DISCLOSURES OF
CASH FLOW INFORMATION:
Cash payments to:
Income taxes $ - $ -
========== =========
Interest $ 50 $ -
========== =========
See accompanying notes to these financial statements.
-5-
WORLD SERVICES, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
SEPTEMBER 30, 1996
1. GENERAL:
The Company has elected to omit substantially all other notes to the
financial statements. These interim financial statements should be read
in conjunction with the Company's annual report and report on Form 10-K
for the year ended December 31, 1995.
2. UNAUDITED INFORMATION:
The information furnished herein was taken from the books and records
of the Company without audit. However, such information reflects all
adjustments (consisting only of normal recurring adjustments) which are,
in the opinion of management, necessary to reflect results for the
interim periods presented. The results of operation for the periods
presented are not necessarily indicative of the results to be expected
for the year.
3. STOCK OWNERSHIP OF FIRST SAVINGS & LOAN ASSOCIATION:
The Office of Thrift Supervision has notified World Services, Inc. and,
individually, some of the board directors that they may be in violation
of OTS Regulation No.574.4(b). This regulation refers to a requirement
to either submit a change of control notice or to submit rebuttals of
concerted action or control. The group is meeting with OTS to submit a
plan to correct this alleged change of control violation.
-6-
WORLD SERVICES, INC. AND SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
FINANCIAL CONDITION
As expected, the Corporation received dividend income from Super 8 Motel
Developers in the second quarter of over $79,000.
The good performance of this investment is a major contributing factor to
the overall improved financial condition of the Company.
RESULTS OF OPERATIONS
The Corporation showed an operating profit of $53,409 for the nine months
ended September 30, 1996 as compared with $24,869 profit for the twelve
month period ending December 31, 1995.
This improvement was mainly due to the increased dividend paid by Super 8
Motel Developers.
- 7 -
SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) 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.
_____________________ _____, 1996
WORLD SERVICES, INC.
By__________________________________
Ronne Tarrell, President
Pursuant to the requirements of the Securities Exchange Act of 1934, this
report has been signed below by the following persons on behalf of the
Registrant and in the capacities and on the dates indicated.
Oct 24 Ronne Tarrell
_____________________ ______, 1996 _______________________________
Ronne Tarrell, President,
Principal Executive
Officer, and Director
Oct 24 David Jorgenson
_____________________ ______, 1996 _______________________________
David Jorgenson,
Secretary, Treasurer,
Principal Accounting
Officer, Principal
Financial Officer, and
Director
Oct 24 Delores Bower
_____________________ ______, 1996 _______________________________
Delores Bower, Director
Oct 24 Delbert Harty
_____________________ ______, 1996 _______________________________
Delbert Harty, Director
Oct 24 Terry Heinz
_____________________ ______, 1996 _______________________________
Terry Heinz, Director
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