|
|
|
|
|
|
|
|
|
|
Previous: CHINA RESOURCES DEVELOPMENT INC, 4, 1996-06-11 |
Next: J2 COMMUNICATIONS /CA/, 10-Q, 1996-06-11 |
<PAGE> 1
SECURITIES AND 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 March 31, 1996
Commission file number 01 15109
----------
MAGNOLIA FOODS, INC.
(Exact name of registrant as specified in its charter)
Oklahoma 73-1251800
-------- ----------
(State of other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
P.O. Box 54714 Oklahoma City, OK 73154
---------------------------------------------------------------------------
(Address of principal executive offices)
(405) 840-9655
--------------
(Registrant's telephone number, including area code)
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 such reports), and (2) has been subject to such
filing requirements for the past 90 days. Yes X No
--- ---
Indicate the number of shares outstanding of each of the issuer's
classes of common stock, as of the latest practicable date.
Common Stock 24,922,588
Par Value $0.01 Shares outstanding as of
per share March 31, 1996
Transitional Small Business Disclosure Format Yes X No
--- ---
<PAGE> 2
MAGNOLIA FOODS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
<TABLE>
<CAPTION>
March 31, December 31,
1996 1995
------------ ------------
(unaudited)
<S> <C> <C>
ASSETS
- ------
CURRENT ASSETS
Cash and Temporary Cash Investments $ 24,664 78,926
Accounts Receivable 11,149 16,903
Inventories 39,747 47,248
Prepaid Expense 11,611 9,187
--------- --------
Total current assets 87,171 152,264
PROPERTY AND EQUIPMENT
Leasehold Improvements 335,305 335,305
Furniture and Equipment 270,927 270,927
Equipment Not in Use 5,000 5,000
--------- --------
611,232 611,232
Less Accumulated Depreciation (207,896) (180,326)
--------- --------
403,336 430,906
OTHER ASSETS
Franchise Rights (Net) 44,688 50,000
Other Investments 97,146 29,881
Organization Costs (Net) 13,504 14,543
Deposits 30,575 30,624
Receivable from Related Parties 53,954 53,954
--------- -------
239,867 179,002
--------- -------
TOTAL ASSETS 730,374 762,172
--------- -------
--------- -------
</TABLE>
See Accompanying Notes
-2-
<PAGE> 3
MAGNOLIA FOODS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
<TABLE>
<CAPTION>
March 31, December 31,
1996 1995
------------ ------------
(unaudited)
<S> <C> <C>
LIABILITIES AND STOCKHOLDER'S EQUITY
CURRENT LIABILITES
Accounts Payable $ 413,302 367,262
Accounts Receivable 78,721 111,210
Reserve for Closed Stores 205,333 210,864
Notes Payable 463,424 341,758
---------- ----------
TOTAL CURRENT LIABILITIES 1,160,780 1,031,094
---------- ----------
STOCKHOLDER'S EQUITY
Series B 10% cumulative convertible
Preferred Stock, par value $.10
per share - 25,000 shares authorized,
issued and outstanding 2,500 2,500
Common stock, par value $.01 per
share; 25,000,000 shares authorized,
24,927,118 shares issued, and
24,922,588 shares outstanding 249,271 249,271
Additional paid-in capital 4,586,774 4,601,831
Retained Earnings (Deficit) (5,267,749) (5,121,322)
---------- ----------
429,204 267,720
Less Treasury stock - 4,530
Shares at Cost 1,202 1,202
---------- ----------
430,406 286,922
---------- ----------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 730,374 762,172
---------- ----------
---------- ----------
</TABLE>
See Accompanying Notes
-3-
<PAGE> 4
MAGNOLIA FOODS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
<TABLE>
<CAPTION>
THREE MONTHS ENDED
March 31,
-------------------------
1996 1995
-------- --------
<S> <C> <C>
REVENUES
Food and beverage sales $ 435,259 $ 817,670
Interest and Other 78 914
---------- ----------
Total Operating Revenues 435,337 818,611
COSTS AND EXPENSES
Cost of sales 150,764 306,223
Restaurant operating 322,418 469,214
General and administrative 65,742 124,072
Interest 8,919 3,500
Depreciation and amortization 33,921 48,454
---------- ----------
581,764 951,463
Net Income (Loss) (146,427) (132,852)
Income (Loss) per Common Share (0.01) (0.01)
Average number of common 24,992,588 16,370,926
shares outstanding
</TABLE>
See Accompanying Notes
-4-
<PAGE> 5
MAGNOLIA FOODD, INC. AND SUBSIDARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
<TABLE>
<CAPTION>
THREE MONTHS ENDED
March 31,
-------------------------
1996 1995
-------- --------
<S> <C> <C>
Operating Activities
Net Income (Loss) $ (146,427) $ 132,852
Items not Affecting Cash from
Operating Activities:
Depreciation and amortization 33,921 48,454
Changes in Operating Assets &
Liabilities:
Receivables (5,754) (16,843)
Inventories 7,501 24,549
Other Assets (2,375) (8,481)
Payables & Accruals (8,020) (88,717)
---------- ----------
Net cash provided (used) in
Operating Activites $ (93,606) $ 173,890
Investing Activities:
Acquisition of Other Investments $ (67,265) $ 3,500
Return of Investment -- 50,000
Sale of Equipment -- 6,212
---------- ----------
Net cash provided (used) by
investing activities $ 67,265 $ (52,712)
Financing Activities:
Proceeds from Notes $ 131,666 $ 15,000
Payments of Notes (10,000) (2,063)
Offering Costs (15,507) (1,191)
---------- ----------
Net cash provided (used) by
financing activities $ 106,609 $ 11,746
Increase (Decrease) in Cash $ (54,262) $ (109,432)
Cash - Beginning of Period 78,926 127,243
---------- ----------
Cash - End of Period 24,664 17,811
---------- ----------
</TABLE>
See Accompanying Notes
-5-
<PAGE> 6
MAGNOLIA FOODS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENT OF SHAREHOLDERS' EQUITY
THREE MONTHS ENDED March 31, 1996
(unaudited)
<TABLE>
<CAPTION>
Series Additional
Preferred Common Paid-in Accumulated Treasury
Stock Stock Capital (Deficit) Stock Total
<S> <C> <C> <C> <C> <C> <C>
Balance January 1, 1996 $ 2,500 $ 249,271 $ 4,601,831 $ (5,121,322) $ (1,202) $ 268,922
Offering Costs (15,057) (15,057)
Net Loss (146,427) (146,427)
------------ ------------ ------------ ------------ ------------ ------------
Balance March 31, 1996 $ 2,500 $ 249,271 $ 4,586,774 $ (5,267,749) $ (1,202) $ 430,406
------------ ------------ ------------ ------------ ------------ ------------
------------ ------------ ------------ ------------ ------------ ------------
</TABLE>
See accompanying notes
-6-
<PAGE> 7
MAGNOLIA FOODS, INC. AND SUBSIDIARIES
NOTES TO CONDENSED FINANCIAL STATEMENTS
1. Basis of Presentation
In the opinion of the Company, the accompanying unaudited condensed
consolidated financial statements contain all adjustments (consisting only of
normal recurring accruals) necessary to present consolidated financial position
as of March 31, 1996 and the consolidated results of operations and the
consolidated statements of cash flows for the three-month period ended March
31, 1996 and it is not necessarily indicative of the results to be expected for
the full year.
2. Accounting Policies
During interim periods the Company follows the accounting policies set
forth in its consolidated financial statements included in its annual report on
Form 10-KSB. Reference should be made to such financial statements for
information on such accounting policies and further financial details.
-7-
<PAGE> 8
ITEM 2 - MANAGEMENT'S DISCUSSION AND ANALYSIS OF PLAN OF OPERATION
Revenues and Operations
Revenues for the current period reflect operations of four Skolniks
Bagel Bakery Restaurants versus last years operation of seven units. Cost of
sales this year was 34.6% versus 37.5% last year for this period.
At present, the company is seeking to sell the four remaining
locations.
Liquidity
Working capital at March 31, 1996 was a deficit of $1,073,609 compared
to a deficit of $878,830 at December 31, 1995. The decrease is due to
operating losses for the period.
-8-
<PAGE> 9
PART II OTHER INFORMATION
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
The following exhibits are included herein:
(11) Statement re: Computation of earnings per share.
(27) Financial Data Schedule
(b) The Company did not file any reports on Form 8-K during the quarter.
-9-
<PAGE> 10
Signatures
Pursuant to the requirements of the Securities and Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
MAGNOLIA FOODS, INC.
Dated: 5/24/96 By: /s/JOSEPH J. JOHNSTON
----------- ----------------------------------
Joseph J. Johnston
President and
Chief Financial Officer
-10-
<PAGE> 11
EXHIBIT INDEX
The following exhibits are included herein:
(11) Statement re: computation of earnings per share.
(27) Financial Data Schedule
(b) The Company did not file any reports on Form 8-K during the quarter.
<PAGE> 1
(11) STATEMENT RE: COMPUTATION OF EARNINGS PER SHARE
<TABLE>
<CAPTION>
FOR THREE MONTHS
MARCH 31,
--------------------------
1996 1995
-------- --------
<S> <C> <C>
Net income (loss) for computing
earnings per common share $ (146,427) $ 132,852
Weighted average number of
common shares outstanding
during each period without
dilution 24,922,588 16,370,926
Addition from assumed exercise
of Common Stock warrants 1,245,000 1,120,000
Addition from assumed conversion
of Preferred Stock 300,000 300,000
----------- -----------
26,467,588 17,790,926
----------- -----------
----------- -----------
Net income per common share
Without Dilution $ (0.01) $ (0.01)
Fully diluted $ (0.01) $ (0.01)
</TABLE>
-11-
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-START> JAN-01-1996
<PERIOD-END> MAR-31-1996
<CASH> 24,664
<SECURITIES> 0
<RECEIVABLES> 11,149
<ALLOWANCES> 0
<INVENTORY> 39,747
<CURRENT-ASSETS> 87,171
<PP&E> 611,232
<DEPRECIATION> 207,896
<TOTAL-ASSETS> 730,374
<CURRENT-LIABILITIES> 1,160,780
<BONDS> 0
<COMMON> 249,271
0
2,500
<OTHER-SE> (682,177)
<TOTAL-LIABILITY-AND-EQUITY> 730,374
<SALES> 435,259
<TOTAL-REVENUES> 435,337
<CGS> 150,764
<TOTAL-COSTS> 572,845
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 8,919
<INCOME-PRETAX> (146,427)
<INCOME-TAX> 0
<INCOME-CONTINUING> (146,427)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (146,427)
<EPS-PRIMARY> (0.01)
<EPS-DILUTED> (0.01)
</TABLE>
|
|