SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
QUARTER REPORT UNDER SECTION 13 0R 15(d)
March 31, 1997 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 March 31,1997
______________________________ _______________________________
Common stock, $.01 par value 5,229,907
Page 1 of 8
Form 10-Q
1st Quarter
INDEX
PART I- FINANCIAL INFORMATION*
Consolidated Balance Sheet - March 31, 1997
and March 31, 1996 3
Consolidated Statements of Operation - Three
months ended March 31, 1997 and 1996 4
Consolidated Statements of Cash Flows - Three
months ended March 31, 1997 and 1996 5
Notes to Consolidated Financial Statements 6
Management's Discussion and Analysis 7
PART II - OTHER INFORMATION
Signatures 8
Financial Data Schedule
* The accompanying financial statements are not covered by
an Independent Certified Public Accountants' Report.
-2-
WORLD SERVICES, INC.
BALANCE SHEET
ASSETS
March 31, March 31,
1997 1996
CURRENT ASSETS
Cash and cash equivalents $ 14,045 $ 6,412
Certificate of Deposit 290,000 180,000
Accounts Receivable - other 17,000 -
------------ ------------
TOTAL CURRENT ASSETS 321,045 186,412
PROPERTY AND EQUIPMENT
Office Equipment 2,882 -
Accum Depr-Office Equipment (2,882) -
------------ ------------
TOTAL PROPERTY AND EQUIPMENT 0 0
INVESTMENTS AND OTHER ASSETS
Investment in First Savings
& Loan 335,000 307,000
Investment in Super 8 Motel
Developers 568,000 568,000
Other 4,000 4,000
------------ ------------
TOTAL OTHER ASSETS 907,000 879,000
------------ ------------
TOTAL ASSETS $ 1,228,044 $ 1,065,412
============ ============
LIABILITIES AND STOCKHOLDERS EQUITY
CURRENT LIABILITIES
Accounts payable and accrued
expenses $ - $ -
----------- ------------
STOCKHOLDERS EQUITY
Common stock, par value $.01 per
share; (50,000,000 shares
authorized 5,292,000 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 (5,318,956) (5,481,588)
------------ ------------
TOTAL STOCKHOLDERS' EQUITY 1,228,044 1,065,412
------------ ------------
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $ 1,228,044 $ 1,065,412
============ ============
See accompanying notes to these financial statements.
-3-
WORLD SERVICES, INC.
STATEMENTS OF OPERATIONS
Three Months Ended
March 31,
------------------
- ---- 1997 1996
REVENUE
Interest Income $ - $ 6,635
Dividend Income - -
Miscellaneous Income 20 75
----------- -----------
Total Revenue 20 6,710
----------- -----------
EXPENSES
Legal and accounting 11,287 9,987
Other general and administrative expenses 2,340 9,311
----------- -----------
Total Expenses 13,627
19,298
----------- -----------
NET INCOME (LOSS) $ (13,607) $ (12,588)
=========== ===========
INCOME (LOSS) PER SHARE OF COMMON STOCK * *
=========== ===========
AVERAGE NUMBER OF SHARES OUTSTANDING 5,229,907 5,229,907
===========
===========
____________________________________________
*Less than $.01 per share.
See accompanying notes to these financial statements.
-4-
WORLD SERVICES, INC.
STATEMENTS OF CASH FLOWS
Three Months Ended
March 31,
------------------
- ----
1997 1996
CASH FLOWS FROM OPERATING ACTIVITIES
Net Income (Loss) $ (13,607) $(12,588)
Adjustment to reconcile net income
(loss) to cash from operating activities:
(Decrease) in accounts payable and
accrued expenses - (10,000)
---------- --------
NET CASH PROVIDED BY (USED IN)
OPERATING ACTIVITIES (13,607) (22,588)
CASH FLOWS FROM INVESTING ACTIVITIES:
Maturity of certificate of deposit - 100,000
Purchase of certificate of deposit - (80,000)
---------- --------
NET CASH PROVIDED BY INVESTING ACTIVITIES 0 20,000
INCREASE (DECREASE) IN CASH
AND CASH EQUIVALENTS (13,607) (2,588)
CASH AND CASH EQUIVALENTS,
AT BEGINNING OF PERIOD 27,652 9,000
---------- --------
CASH AT END OF PERIOD $ 14,045 $ 6,412
========== ========
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
MARCH 31, 1997
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, 1996.
2. UNAUDITED IMFORMATION:
The information furnished herein was taken form 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.
-6-
WORLD SERVICES, INC. AND SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
FINANCIAL CONDITION
The Corporation expects to receive dividend income from Super
8 Motel Developers in the second quarter of over $239,000.
The good performance of this investment is a major contributing
factor to the overall improved financial condition of the
Company.
The annual stockholders meeting is scheduled for mid June of
1997.
RESULTS OF OPERATIONS
The Corporation showed an operating loss of ($13,607) for the
three months ended March 31, 1997 as compared with ($12,588)
loss for the same period a year earlier.
- 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.
APRIL________________ 24___, 1997
WORLD SERVICES, INC.
/S/ RONNE TARRELL
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.
/S/ RONNE TARRELL
APRIL________________ 24____, 1997
_______________________________
Ronne Tarrell, President,
Principal Executive
Officer, and Director
/S/ DAVID JORGENSON
APRIL________________ 24____, 1997
_______________________________
David Jorgenson,
Secretary, Treasurer,
Principal Accounting
Officer, Principal
Financial Officer, and
Director
/S/ DELORES BOWER
APRIL________________ 24____, 1997
_______________________________
Delores Bower, Director
/S/ DELBERT HARTY
APRIL________________ 24____, 1997
_______________________________
Delbert Harty, Director
/S/ TERRY HEINZ
APRIL________________ 24____, 1997
_______________________________
Terry Heinz, Director
- 8 -
