<PAGE>
SECURITIES & EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-QSB
(X) Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange
Act of 1934
For the quarterly period ended September 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
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Commission File No.0-18222
COSTA RICA INTERNATIONAL, INC.
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(Exact name of Registrant as specified in its charter)
Nevada 87-0432572
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(Dtate or other jurisdiction (T.R.S. Employer
of incorporation or organization) Identification No.)
Suite 301, 2525 S.W. 3rd Ave.
Miami, Florida 33129
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(Address of principal executive offices) (Zip Code)
(305) 365-5820
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(Registrant's telephone number including area code)
Indicate by check mark whether the Registrant (1) had filed all reports required
to be filled by Section 13 or 15(d) of the Securities Exchange Act of of 1934
during the preceding 12 onths (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
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The number of shares outstanding of Registrant's common stock, par value $.001
per share, as of September 30, 1996 was 26,147,508 shares.
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PART 1 - FINANCIAL INFORMATION
ITEM 1. Financial Statements
See attached financial statements
ITEM 2. Managements Discussion and Analysis of Financial Condition and
Results of Operations
Results of Operations
Revenues of the Company for the quarter ended September 30, increased from
$ 13.971.392 in fiscal year 1995 to $15.603.322 in fiscal year 1996, an increase
of approximately 11.7% over the previous year. The Company experienced
increased revenues in the last fiscal year over the previous year as a result of
sale of more products. Also the company marketed new products during this
period. In addition, the sales resulting from exporting goods experienced an
increment, in comparison to the comparable quarter in 1995.
Management expects continued growth of revenues from its core business
activities. Management is continuing to expand its market operations and to cut
costs to maximize future profit potential.
The Company generated an operating profit of $ 1.106.909 for the quarter in
fiscal year 1996, when compared to a profit of $ 856.485 for the comparable
quarter in fiscal year 1995. The Company recorded a net profit of $ 734.071 for
quarter in fiscal year 1996, when compared to a net profit in the comparable
fiscal year 1995 of $ 371.462. The Company's selling, general and administrative
expenses decreased slightly as a result of more efficient management of
resources. Operating expenses decreased to $ 2.786.356 for the quarter in fiscal
year 1996, as compared to $ 2.812.818 for the comparable quarter in fiscal year
1995.
Liquidity and Capital Resources
At September 30, 1996, cash and cash equivalent was $ 5.542.782, as
compared to $ 2.352.683 at September 30, 1995.
As of September 30, 1996, the working capital ratio was 1.27 as compared to
1.06 at September 30, 1995.
Historically, the Company has generally relied upon internally generated
funds to satisfy working capital requirements. Management believes that it can
continue to fund its obligations and implement the development of its business
segments with available cash and internally generated cash flow. However, the
company may partially rely upon external financing or stockholder's
contributions for capital investment purposes. The Company does not foresee a
major requirement for capital in the next fiscal year. The Company does not
plan to distribute common stock dividends in the near future.
PART II - OTHER INFORMATION
ITEM 1. Legal Proceedings
No legal proceedings of a material nature to which the Company is a party
were pending during the reporting period, and the Company knows of no legal
proceedings of a material nature pending or threatened or judgments entered
against any director or office of the Company i his capacity as such.
ITEM 2. Changes in Securities.
During 1996, the company issued a total of 2.050.000 number of shares, of
which, 500 were the result of a fussion with a subsidiary company "Rincon de los
Toros" and 2.049.500 were
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the result of capitalization of Retained Earnings and Titulos de Capital.
ITEM 3. Defaults upon Senior Securities. None.
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.
No exhibits as set forth in Regulation S-K are considered necessary in this 10-
QSB filing.
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CORPORACION PIPASA S.A.
BALANCE SHEET
SEPTEMBER 30, 1996 AND 1995
1996 1995
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ASSETS
Current Assets:
Cash and Banks 3,128,026 1,028,330
Marketable Securities 2,414,756 1,324,353
Notes Receivables 218,352 1,963,312
Accounts Receivables, net 6,045,878 4,433,540
Inventories, net 7,288,279 5,984,909
Prepaid Expenses 158,200 152,289
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Total Current Assets 19,253,491 14,886,733
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Long Term Notes Receivables 52,855 -
Long term investment 1,099,615 1,702,336
Property, Plant and Equipment, net 28,790,967 28,338,082
Forestry Rights 748,303 657,961
Copyrights, trademarks and Goodwill 115,385 151,410
Other Assets 117,522 154,678
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Total Assets 50,178,138 45,891,200
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Liabilities and Stockholder's Equity
Current Liabilities
Bank Overdrafts 545,118 -
Notes Payables 10,225,254 9,159,313
Account Payables 2,759,609 3,680,361
Allowances for Christmas Bonus 467,407 371,800
Allowances for Severance Pay 95,638 63,858
Accumulated Expenses 1,040,241 653,022
Estimated Income Tax 57,694 87,005
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Total Current Liabilities 15,190,961 14,015,359
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Long term Notes Payable 3,695,688 2,383,500
Long term Account Payable - 14,480
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Total Liabilities 18,886,648 16,413,339
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Stockholder's Equity:
Common Stock 25,174,801 17,769,881
Titulos de Capital - 505,511
Preferred nominal Shares 2,005,439 1,151,491
Additional Paid-In Capital 2,428 853,948
Legal Reserve 667,998 518,884
Foreign Currency Trans. Adjustmnet (143,100) 437,498
Retained Earnings 3,583,924 8,240,648
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Total Stockholder's Equity 31,291,490 29,477,861
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Total Liabilities and Stockholder's Equity 50,178,138 45,891,200
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<PAGE>
CORPORACION PIPASA S.A.
STATEMENT OF EARNINGS
FOR THE QUARTER ENDED SEPTEMBER 30, 1995 AND 1996
1996 1995
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Net Sales 15,603,322 13,971,392
Cost of Sales 11,710,057 10,302,090
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Gross Profit 3,893,265 3,669,303
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Operating Expenses
Selling 1,636,494 1,644,646
Export 53,764 36,548
General and Adminsitrative 1,096,097 1,131,623
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Total Operating Expense 2,786,356 2,812,818
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Operating Profit 1,106,909 856,485
Other Income 391,978 398,682
Other Expenses 764,817 883,705
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Net Earnings before Income Tax 734,071 371,462
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SIGNATURES
In accordance with Section 13 or 15 (d) of the Securities Exchange Act of
1934, the Registrant that duly caused this report to be signed on its behalf by
the undersigned, thereunto duly authorized.
COSTA RICA INTERNATIONAL, INC.
By: /s/ Calixto Chaves Zamora
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Calixto Chaves Zamora
Chairman
Dated: November 19, 1996
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.
CHIEF FINANCIAL AND ACCOUNTING OFFICER
Dated: November 19, 1996 By: /s/ Calixto Chaves Zamora
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Calixto Chaves Zamora
Treasurer
SECRETARY
Dated: November 19, 1996 By: /s/ Monica Chaves Zamora
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Monica Chaves Zamora
Secretary
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> SEP-30-1996
<PERIOD-START> JUL-01-1996
<PERIOD-END> SEP-30-1996
<CASH> 3,128,026
<SECURITIES> 2,414,756
<RECEIVABLES> 6,264,028
<ALLOWANCES> 156,200
<INVENTORY> 7,288,279
<CURRENT-ASSETS> 19,253,491
<PP&E> 28,790,967
<DEPRECIATION> 0
<TOTAL-ASSETS> 50,178,138
<CURRENT-LIABILITIES> 15,190,961
<BONDS> 0
0
0
<COMMON> 25,174,801
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 50,178,138
<SALES> 15,603,322
<TOTAL-REVENUES> 15,603,322
<CGS> 11,710,057
<TOTAL-COSTS> 11,710,057
<OTHER-EXPENSES> 2,786,356
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 734,071
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 734,071
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
