FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
----------------------------------
Quarterly Report Under Section 13 or 15(d)
of the Securities Exchange Act of 1934
For Quarter Ended: Commission File Number:
February 29, 1996 0-15588
CANTERBURY CORPORATE SERVICES, INC.
-----------------------------------
(Exact name of registrant as specified in its charter)
Pennsylvania 23-2170505
(State of Incorporation) (I.R.S. Employer Identification No.)
1600 Medford Plaza
Route 70 & Hartford Road
Medford, New Jersey 08055
(Address of principal executive office)
Telephone Number: (609) 953-0044
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.
X Yes No
--------- ---------
The number of shares outstanding of the registrant's common stock as
of the date of the filing of this report: 14,144,009 shares.
<PAGE>
FORM 10-Q
PART 1 - FINANCIAL INFORMATION
Item 1. Financial Statements
- -----------------------------
CANTERBURY CORPORATE SERVICES, INC.
CONSOLIDATED BALANCE SHEET
--------------------------
ASSETS
- ------
<TABLE>
<CAPTION>
February 29,
1996 November 30,
(Unaudited) 1995
----------- ------------
<S> <C> <C>
Current Assets:
Cash $ 1,125,116 $ 1,471,702
Accounts receivable net of
allowance for doubtful accounts
of $2,364,000 and $2,276,000 5,516,011 5,281,731
Notes receivable 134,435 531,072
Prepaid expenses and
other assets 957,302 782,136
Refundable income taxes 326,000 326,000
Deferred income tax benefit 794,676 794,676
----------- -----------
Total Current Assets 8,853,540 9,187,317
Property and equipment
at cost, net of accumulated
depreciation and amortization
of $7,268,000 and $7,015,000 3,647,847 3,756,242
Goodwill net of accumulated amortization
of $874,000 and $886,000 9,226,862 9,440,645
Note receivable 3,994,328 4,028,921
Other assets 498,274 414,484
----------- -----------
Total Assets $26,220,851 $26,827,609
=========== ===========
</TABLE>
See Accompanying Notes
2
<PAGE>
FORM 10-Q
CANTERBURY CORPORATE SERVICES, INC.
CONSOLIDATED BALANCE SHEET
LIABILITIES AND SHAREHOLDERS' EQUITY
- ------------------------------------
<TABLE>
<CAPTION>
February 29,
1996 November 30,
(Unaudited) 1995
------------ ------------
<S> <C> <C>
Current Liabilities:
Accounts payable - Trade $ 779,109 $ 697,768
Accrued expenses 895,573 1,369,169
Income taxes payable 581,000 132,000
Unearned tuition income 1,119,562 1,186,886
Current portion, long-term
debt 2,385,933 2,837,279
------------ ------------
Total Current Liabilities 5,761,177 6,223,102
Long-term debt 5,921,735 6,572,701
Deferred income tax liability 719,000 919,000
Shareholders' Equity:
Convertible preferred stock, no par
value, authorized 1,600,000 shares,
at aggregate liquidation preference
Class A, 12.5%, 100,000 shares
issued and outstanding - 93,482
Class B, 8%, 37,000 shares
issued and outstanding - 35,000
Class C, 10%, 180,000,
shares issued and outstanding - 130,006
Common stock, $.001 par value,
50,000,000 shares authorized;
13,642,000 and 13,060,000
issued outstanding 13,642 13,060
Additional paid in capital 13,167,035 12,915,730
Retained earnings 794,697 68,963
Treasury stock (156,435) (143,435)
------------ ------------
Total Shareholders' Equity 13,818,939 13,112,806
------------- ------------
Total Liabilities and
Shareholders' Equity $ 26,220,851 $ 26,827,609
============= ============
</TABLE>
See Accompanying Notes
3
<PAGE>
FORM 10-Q
CANTERBURY CORPORATE SERVICES, INC.
CONSOLIDATED STATEMENTS OF INCOME
The following Consolidated Statements of Income for the three-month periods
ended February 29, 1996, and February 28, 1995, are unaudited, but the Company
believes that all adjustments (which consist only of normal recurring accruals)
necessary for a fair presentation of the results of operations for the
respective periods have been included. Quarterly results of operations are not
necessarily indicative of results for the full year.
Three-Months Ended
February 29, and February 28
----------------------------
(Unaudited)
1996 1995
---- ----
Net revenues $6,352,611 $5,740,662
Costs and expenses 3,248,689 2,908,178
---------- ----------
Gross profit 3,103,922 2,832,484
Selling 445,137 400,037
General and administrative 1,278,390 1,488,080
Provision for doubtful accounts 88,286 49,399
---------- ----------
Total operating expenses 1,811,813 1,937,516
Other (income)/expenses
Interest Income (74,044) (2,633)
Interest Expense 196,225 242,687
Other (12,182) (19,238)
----------- ----------
Income before provision for
income taxes and
discontinued operation 1,182,110 674,152
Provision for income taxes 449,000 248,662
---------- ----------
Income from continuing operations 733,110 425,490
Discontinued operation
Income from discontinued operation
net of income taxes of $110,430 - 111,250
---------- ----------
Net income $ 733,110 $ 536,740
========== ==========
Net income per common share and
common share equivalents:
Primary:
Income from continuing
operations .06 $ .04
Discontinued operation - .01
---------- ----------
Net income per share $ .06 $ .05
========== ==========
Fully diluted:
Income from continuing
operations - $ .03
Discontinued operation - .01
---------- ----------
Net income per share $ - $ .04
========== ==========
Common and common share
equivalents (weighted
average):
Primary 13,221,200 11,897,000
---------- ==========
Fully diluted - 12,584,400
========== ==========
See Accompanying Notes
4
<PAGE>
FORM 10-Q
CANTERBURY CORPORATE SERVICES, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE THREE-MONTHS ENDED FEBRUARY 29, 1996 AND FEBRUARY 28, 1995
February 29, February 28,
1996 1995
------------ ------------
Cash flows from operating activities:
Cash received from
customers $ 5,962,721 $ 5,778,200
Cash paid to suppliers and
employees (5,459,553) (4,998,124)
Interest received 74,044 2,660
Interest paid (196,226) (242,889)
----------- -----------
Net cash provided by
operating activities $ 380,986 $ 539,847
Cash flows from investing activities:
Capital expenditures (144,834) (169,805)
Collection on notes receivable 431,230 -
----------- ----------
Net cash provided by/(used in)
investing activities 286,396 (169,805)
Cash flows from financing activities:
Principal payments on long-term debt (103,242) (40,923)
Repayment of revolving
credit facility (375,000) (500,000)
Proceeds from exercise of stock
options and warrants 3,400 -
Repayment on term loan (518,750) -
Payment of dividends on
preferred stock (7,376) (11,104)
Purchase of treasury stock (13,000) (61,905)
----------- ----------
Net cash used in
financing activities (1,013,968) (613,932)
Net cash provided by
discontinued operation - 146,154
Net decrease in cash (346,586) (97,736)
Cash at beginning of period 1,471,702 1,384,030
------------ ----------
Cash at end of period $ 1,125,116 $ 1,286,294
============ ===========
See Accompanying Notes
5
<PAGE>
FORM 10-Q
CANTERBURY CORPORATE SERVICES, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE THREE-MONTHS ENDED FEBRUARY 29, 1996 AND FEBRUARY 28, 1995
February 29, February 28,
1996 1995
------------ ------------
Reconciliation of net income to net
cash provided by operating activities:
Net income $ 733,110 $ 536,740
Adjustments to reconcile
to net cash provided by operating
activities:
Depreciation and amortization 351,691 $335,441
Provision for doubtful accounts 88,286 57,199
Change in operating assets and liabilities:
Increase in accounts receivable (322,566) (4,377)
Increase in prepaid expenses (175,166) (63,152)
Increase in other assets (83,790) (34,327)
Increase/(decrease) in
accounts payable 81,341 (180,177)
Decrease in accrued expenses (473,596) (559,258)
Increase/(decrease) in unearned
tuition income (67,324) 41,915
Increase in income
taxes payable 449,000 95,843
Increase/(decrease) in
deferred income taxes (200,000) 314,000
----------- ----------
Total adjustments (352,124) 3,107
----------- ----------
Net cash provided by
operating activities $ 380,986 $ 539,847
=========== ==========
See Accompanying Notes
6
<PAGE>
FORM 10-Q
CANTERBURY CORPORATE SERVICES, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
------------------------------------------
1. Summary of Significant Accounting Policies
------------------------------------------
Principles of Consolidation
---------------------------
The consolidated financial statements include the accounts of the Company
and all of its subsidiaries. All material intercompany transactions have been
eliminated.
Basis of Financial Statement Presentation and Material Uncertainty
------------------------------------------------------------------
On November 30, 1993 the Company issued 1,029,000 of its common shares to
the shareholders of Landscape Maintenance Services, Inc. in a business
combination accounted for as a pooling of interests. During 1994, the Company
instituted suit against the former Landscape Maintenance shareholders, alleging
misrepresentations and the omission of material facts (e.g. undisclosed
liabilities) thereby breaching the agreement to merge the Company and Landscape
Maintenance (the Acquisition Agreement). The Company seeks, among other
remedies, an adjustment to the number of shares issued, payment of certain
previously undisclosed liabilities and unspecified damages or the rescission of
the Acquisition Agreement.
The accompanying consolidated financial statements include Landscape
Maintenance for all periods presented under the pooling of interests method of
accounting for business combinations. Because the outcome of this litigation is
uncertain, the number of shares issued in the business combination or adjustment
of the accounting for the business combination and its effects on the
consolidated financial statements cannot be determined at this time.
The rescission of the Acquisition Agreement would result in a change in
reporting entity which would require restatement of the consolidated financial
statements for all periods presented, to eliminate the results of operations,
cash flows and financial position of Landscape Maintenance, currently included
under the pooling of interests method of accounting.
Landscape Maintenance represents the business maintenance services segment
of the Company. See Note 3 for selected financial information regarding this
segment.
Use of Estimates
----------------
The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities at
February 29, 1996, and revenues and expenses for the three months ended February
29, 1996. The ultimate outcome and actual results could differ from the
estimates and assumptions used.
Revenue Recognition
-------------------
The Company's computer software training segment records revenue at the time
an individual attends the training class.
7
<PAGE>
FORM 10-Q
CANTERBURY CORPORATE SERVICES, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
------------------------------------------
(continued)
The Company's management training segment records revenue based on
performance of seminars to its clients.
The Company's vocational training segment records tuition revenues ratably
over the term of the courses which run for approximately two to eight weeks.
Receivables for students' tuition are recorded as of the students' first day of
class attendance. Unearned tuition income represents revenue to be recognized
over the term of the courses.
The Company's business maintenance services segment records revenues on a
pro rata basis over the contract term (typically three to nine months).
Statement of Cash Flows
-----------------------
For purposes of the Statement of Cash Flows, cash refers solely to demand
deposits with banks and cash on hand.
Depreciation and Amortization
-----------------------------
The Company depreciates and amortizes its property and equipment for
financial statement purposes using the straight-line method over the estimated
useful lives of the property and equipment (useful lives of leases or lives of
leasehold improvements and leased property under capital leases, whichever is
shorter). For income tax purposes, the Company uses accelerated methods of
depreciation.
Amortization of Intangible Assets
---------------------------------
Goodwill is being amortized over twenty-five years using the straight-line
method.
Deferred Income Taxes
---------------------
Deferred income taxes are determined utilizing the liability method
prescribed by FAS 109. This method gives consideration to the future tax
consequences associated with the differences between financial accounting and
tax bases of assets and liabilities.
Earnings Per Share
------------------
Earnings per share is computed using the weighted average common shares
outstanding during the year and includes the dilutive effect of common stock
equivalents (options). Fully diluted earnings per share for 1995 is based on the
assumed conversion of preferred stock.
Accounting Changes
------------------
In October 1995, the Financial Accounting Standards Board ("FASB") issued
Statement of Financial Accounting Standards ("SFAS") 123, "Accounting for Stock-
Based Compensation." SFAS 123, which is required to be adopted by January 1,
1996, establishes financial accounting and reporting standards for stock-based
employee compensation plans, and establishes accounting standards for issuance
of equity instruments to acquire goods and services from non-employees.
8
<PAGE>
FORM 10-Q
CANTERBURY CORPORATE SERVICES, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
------------------------------------------
(continued)
In March 1995, the FASB issued SFAS 121, "Accounting for the Impairment of
Long-Lived Assets and for Long-Lived Assets to Be Disposed Of." SFAS 121, which
is required to be adopted by January 1, 1996, establishes accounting standards
for the impairment of long-lived assets and certain intangible assets to be held
and used and for long-lived assets and certain identifiable intangibles to be
disposed of.
The Company does not expect that adoption of SFAS 121 and 123 will have a
material effect on its consolidated financial position, consolidated statement
of income, or liquidity.
2. Segment Reporting
-----------------
The Company is organized into four operating segments: computer software
training, management training, vocational training and business maintenance
services.
The computer software training segment trains corporate workers and managers
as an authorized training center for Microsoft, Lotus, Borland, WordPerfect,
Aldus and Apple on DOS, Windows and Macintosh platforms.
The management training segment conducts corporate seminars in management
and team development, selling and negotiating, interpersonal communication,
executive development and organizational problem solving.
The Company's vocational training segment develops, markets and teaches
courses that focus upon job-related skills in vocations such as word processing
specialist, computer operator, tractor trailer driver, bartender, phlebotomy
technician and electrocardiography technician. Its clients are individuals who
wish to seek employment, corporations who need to hire these individuals, as
well as other corporations that hire Canterbury on a direct basis to train its
existing employees.
The business maintenance services segment specializes in corporate landscape
maintenance and design.
Selected financial information for each segment, which includes an
allocation of corporate expenses, is as follows:
Selected financial information for each segment is as follows:
<TABLE>
<CAPTION>
Income Depreciation
Before Capital &
Three Months Ended 2/29/96 Revenues Taxes Assets Expenditures Amortization
- --------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Computer Software Training $2,359,404 $ 295,792 $ 2,858,056 $ 121,363 $ 98,921
Management Training 466,384 225,921 225,112 - 289
Vocational Training/Corporate 403,348 99,942 20,032,383 - 122,667
Business Maintenance Services 3,123,475 560,455 3,105,300 23,471 129,814
---------- ---------- ----------- ---------- -----------
$6,352,611 $1,182,110 $26,220,851 $ 144,834 $ 351,691
========== ========== =========== ========== ===========
</TABLE>
9
<PAGE>
FORM 10-Q
CANTERBURY CORPORATE SERVICES, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
------------------------------------------
(continued)
<TABLE>
<CAPTION>
Income Depreciation
Before Capital &
Three Months Ended 2/28/95 Revenues Taxes Assets Expenditures Amortization
- --------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Computer Software Training $2,593,341 $ 235,631 $ 3,424,312 $ 149,214 $ 92,568
Management Training 244,085 (28,416) 302,333 - 145
Vocational Training/Corporate 1,403,943 772,345 19,219,081 10,248 123,733
Business Maintenance Services 1,499,293 (305,408) 3,881,883 10,343 118,995
---------- ----------- ----------- ---------- -----------
$5,740,662 $ 674,152 $26,827,609 $ 169,805 $ 335,441
========== =========== =========== ========== ===========
</TABLE>
3. Discontinued Operation
----------------------
On November 30, 1995 the Company sold Star Label Products, Inc. and its
wholly owned subsidiary, Smartwork Graphics, which comprised the specialty
printing segment. Star Label was sold to its former owner. The proceeds of the
sale consisted of both cash and notes receivable amounting to $4,000,000. Also
the Company issued to the buyer an aggregate of 350,000 options to purchase the
common stock of Canterbury Corporate Services, Inc. at an exercise price of
$2.00 per share (bid price at date of grant). The said options expire on
November 9, 2000. In the opinion of management, the value assigned to these
options, if any, is not significant.
The results of operations and the gain on the sale of this segment has been
reported as a discontinued operation and the financial statements for the
quarter ended February 28, 1995 have been restated to reflect the
discontinuation of the specialty printing segment.
The gain on sale of the discontinued operation for the year ended November
30, 1995 was $1,493,545 net of taxes of $1,309,922.
The following is a summary of the results of operations of the Company's
specialty printing segment:
Three Months ended
February 28, 1995
------------------
Revenue $ 704,756
Income from operations
(net of taxes of $65,338) 111,250
Cost and expenses for this discontinued segment include approximately $122,000
representing allocated costs from corporate for the three-months ended February
28, 1995.
The net assets of discontinued operation were as follows:
February 28, 1995
-----------------
Current Assets $ 786,738
Current liabilities (501,727)
Property, plant and equipment, net 759,173
Other, net 41,353
----------
Total $1,085,537
==========
10
<PAGE>
FORM 10-Q
CANTERBURY CORPORATE SERVICES, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
------------------------------------------
(continued)
4. Property and equipment
----------------------
Property and equipment consists of the following:
February 29, November 30,
1996 1995
------------ ------------
Land $ 785,910 $ 785,910
Buildings and improvements 680,171 680,171
Equipment 7,426,924 7,351,103
Furniture and fixtures 1,164,050 1,134,866
Leased property under capital
leases and leasehold
improvements 859,060 819,230
----------- ----------
10,916,115 10,771,280
Less: accumulated depreciation
and amortization (6,677,610) (6,424,380)
Reserve on disposition of
assets (590,658) (590,658)
----------- -----------
Net property and equipment $ 3,647,847 $ 3,756,242
=========== ===========
5. Long-Term Debt
-------------
February 29, November 30,
1996 1995
------------ ------------
Long-term obligations consist of:
Mortgages payable $ 36,299 $ 36,299
Term loan 5,187,500 5,706,250
Revolving credit line 2,744,620 3,119,620
Unsecured notes payable, other - 144,000
Capital lease obligations 339,267 403,811
----------- ----------
8,307,686 9,409,980
Less: Current maturities (2,385,951) (2,837,279)
----------- ----------
$ 5,921,735 $6,572,701
=========== ==========
The mortgages payable bear interest at a rate equal to 1% above the
lending institution's prime rate. The prime rate at February 29, 1996 was 8.25%.
In April, 1995 the Company entered into a permanent restructuring of its
term-loan and revolving credit facilities with its bank. The term-loan
amortization and maturities remained identical to the original agreements. A
principal payment of this term loan was made in a lump sum payment of $2,075,000
in June, 1995. Twelve equal quarterly payments of $518,750 are due thereafter.
Quarterly payments of $518,750 were made in September, 1995, December, 1995 and
March, 1996. The interest rate is LIBOR plus 3% or the bank's prime rate plus
1/2%. The Company has the right to choose which rate is to be utilized on a
periodic basis. The interest rates can be reduced if certain financial ratios
are met in the future. The 90 day LIBOR rate at February 29, 1996 was 5.30%.
At February 29, 1996 the Company borrowed $2,744,620 under the revolving
credit facility; the unused portion of the line was $755,380. Based on borrowing
limitations as set forth in the borrowing base calculation, the Company repaid
$350,000 in December, 1995 and $25,000 in January, 1996.
11
<PAGE>
FORM 10-Q
CANTERBURY CORPORATE SERVICES, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
------------------------------------------
(continued)
The revolving credit line is secured by all accounts receivable,
equipment, furniture and fixtures.
Aggregate maturities on long-term debt for the next five years, exclusive
of obligations under capital leases, are approximately $2,111,299, $4,819,620,
$1,037,500, $0 and $0 respectively
6. Capital Leases
--------------
Capital lease obligations are certain equipment leases which expire in
May, 1997. Future payments under capitalized leases together with the present
value, calculated at the respective leases' implicit interest rate of
approximately 9.5% to 10.5% at their inception, as of February 29, 1996 are as
follows:
Year ending November 30, 1996 $295,982
Year ending November 30, 1997 65,620
--------
Total minimum lease payments 361,602
Less amount representing interest (22,335)
--------
Present value of long-term obligations
under capital leases $339,267
========
Item 2. Management's Discussion of Financial Condition and Results of
- ----------------------------------------------------------------------
Operations
----------
Liquidity and Capital Resources
- -------------------------------
Working capital at February 29, 1996 was $3,092,000. This level of
working capital is expected to be maintained through Fiscal 1996; however,
Landscape Maintenance causes some seasonality in consolidated cash flows. The
numerous snowfalls during the winter months required significant working capital
to meet the snow removal requirements of our customers. As the receivables from
snow removal are collected during the spring months these funds will be used to
prepare for the spring season. The spring season will require that Landscape
Maintenance expend funds for labor and materials in advance of billings as the
business gears up for the summer months. The cash shortfall will reverse itself
in the late fall/early winter as the collection of receivables exceeds the cost
of operations.
Two other factors will have a positive impact on consolidated liquidity.
CALC/Canterbury will have a significant positive influence on overall cash flow
for 1996. The strong margins, coupled with the fact that receivables turn, on
average, in approximately 30 days, will contribute to a strong working capital
ratio. Also, as the vocational training segment becomes less of a significant
portion of consolidated operations, the very slow receivable turn attributed to
self-paying individuals will have less of a negative impact on overall
liquidity.
Management believes available working capital lines of credit, as well as
positive cash flow contributions from the Company's operating segments, will be
sufficient to cover cash flow requirements for the Company for the next 12
months.
12
<PAGE>
FORM 10-Q
CANTERBURY CORPORATE SERVICES, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
------------------------------------------
(continued)
Cash flow from continuing operations for the three months ended February
29, 1996 was $381,000 a decrease of $159,000 over the same period last year.
This is attributable to the use of working capital to meet the demands of the
snow removal for the business maintenance customers due to the numerous snow
storms in the winter of 1996. The winter of 1995 was much less demanding on
working capital due to the lack of snow storms.
In March, 1996, the Company raised $524,750, net of applicable costs,
through a private placement of its common stock sold to accredited investors at
the price of $1.50 per share. This equity was used for general working capital
needs.
The Company believes that the combination of cash provided by operating
activities, as well as the ability to borrow from the unused portion of its
credit line, will enable the Company to meet its liquidity needs in respect to
its current operations for the next 12 months. There was no material commitment
for capital expenditures as of February 29, 1996. Inflation was not a
significant factor in the Company's financial statements.
In 1995, the Financial Accounting Standards Board ("FASB") issued
Statement of Financial Accounting Standards ("SFAS") No. 121, "Accounting for
the Impairment of Long-Lived Assets and for Long-Lived Assets to Be Disposed
Of," and SFAS 123, "Accounting for Stock-Based Compensation." Both of these
statements are required to be adopted by January 1, 1996. The Company does not
expect that adoption of SFAS 121 and 123 will have a material effect on its
consolidated financial position, consolidated statement of income, or liquidity.
For further discussion, see Note 1 of the Notes to Consolidated Financial
Statements.
Results of Operations
- ---------------------
Revenues
--------
Revenues for the three months ended February 29, 1996 increased by
$612,000 (11%) to $6,352,611 over the same period last year. This net increase
was due to the significant number of winter storms during the Winter of 1996.
Hence, snow and ice removal revenues increased in the business maintenance
services segment by approximately $1,624,000 over the same period last year.
Offsetting the increase in snow removal revenue was a decrease in
vocational training revenues of approximately $1,001,000. This decrease is the
result of the planned closings of many of the Company's vocational training
centers during 1995.
Costs and Expenses
------------------
Costs and expenses for the three months ended February 29, 1996 increased
$341,000 (12%) over the comparable three-month period in Fiscal 1995. The
increase was caused primarily by the increase in the cost of snow and ice
removal with corresponding decreases in vocational training costs.
13
<PAGE>
FORM 10-Q
CANTERBURY CORPORATE SERVICES, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
------------------------------------------
(continued)
General and administrative costs decreased by $210,000 (14%) in Fiscal
1996 versus Fiscal 1995. The decrease was due to reduction in size of the
vocational school division.
Interest income increased by $71,000 in Fiscal 1996 versus Fiscal 1995
due to note receivable interest income generated by the sale of the discontinued
operation.
Interest expense decreased by $46,000 in Fiscal 1996 over the same period
in Fiscal 1995 due to a reduction in principal balances of the Company's term
loan and revolving credit facility.
PART II - OTHER INFORMATION
---------------------------
Item 1 Legal Proceedings
- ------
None
Item 2 Changes in Securities
- ------
None
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
- ------
(a) Exhibits: None
(b) Reports on Form 8-K: None
14
<PAGE>
FORM 10-Q
CANTERBURY CORPORATE SERVICES, INC.
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.
CANTERBURY CORPORATE SERVICES, INC.
------------------------------------------
(Registrant)
By/s/ Stanton M. Pikus
----------------------------------------
Stanton M. Pikus
President
(Chief Executive Officer and
duly authorized signer)
By/s/ Kevin J. McAndrew
----------------------------------------
Kevin J. McAndrew, C.P.A.
Chief Operating Officer, Executive Vice
President
(Chief Financial Officer and
duly authorized signer)
By/s/ Marc A. Orsimarsi
----------------------------------------
Marc A. Orsimarsi. C.P.A.
(Chief Accounting Officer and
duly authorized signer)
April 12, 1996
15
<PAGE>
<TABLE> <S> <C>
<ARTICLE> 5
<CURRENCY> 0
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> NOV-30-1996
<PERIOD-START> DEC-01-1995
<PERIOD-END> FEB-29-1996
<EXCHANGE-RATE> 1
<CASH> 1,125,116
<SECURITIES> 0
<RECEIVABLES> 8,564,336
<ALLOWANCES> 3,048,325
<INVENTORY> 0
<CURRENT-ASSETS> 8,853,540
<PP&E> 10,916,115
<DEPRECIATION> 7,268,268
<TOTAL-ASSETS> 26,220,851
<CURRENT-LIABILITIES> 5,761,177
<BONDS> 0
0
0
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</TABLE>
