<PAGE>
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
(Mark One)
X QUARTERLY REPORT PURSUANT TO SECTION 13 OR
------- 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended: September 30, 1995
------------------
OR
__________ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from _________________ to ________________
Commission file number 0-18571 _____________________________________
RYAN-MURPHY INCORPORATED
(Exact name of registrant as specified in its charter)
COLORADO 84-0998860
(State or other jurisdiction (I.R.S. Employer
of incorporation or organization) Identification No.)
8774 YATES DRIVE SUITE 100 DENVER, COLORADO 80030
(Address of principal executive offices)
(303) 427-4567
(Registrant's telephone number, including area code)
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Sections 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
---- ----
APPLICABLE ONLY TO CORPORATE ISSUERS:
Indicate the number of shares outstanding of each of the issuer's classes
of common stock, as of the latest practicable date.
SHARES OF COMMON STOCK OUTSTANDING WERE 17,728,526 AT SEPTEMBER 30, 1995.
This document is comprised of 17 pages.
<PAGE>
RYAN-MURPHY INCORPORATED
INDEX
<TABLE>
<CAPTION>
PART I FINANCIAL INFORMATION PAGE
- - - ------------------------------ ----
<S> <C> <C>
Item 1. Condensed balance sheets,
September 30, 1995 and December 31, 1994 3
Condensed statements of operations, the
three months and the nine months periods
ended September 30, 1995 and September 30, 1994 4
Condensed statements of cash flows,
September 30, 1995 and September 30, 1994 5
Notes to financial statements 6
Item 2. Management's discussion and analysis of
financial condition and results of operations 9
PART II OTHER INFORMATION 11
Signatures 13
</TABLE>
<PAGE>
RYAN - MURPHY INCORPORATED
CONDENSED BALANCE SHEETS
ASSETS
<TABLE>
<CAPTION>
SEPTEMBER 30, DECEMBER 31,
------------- ------------
1995 1994
---------- ----------
<S> <C> <C>
Cash 565,183 158,363
Contracts and notes receivable 949,166 1,517,359
Less: Allowance for bad debts (115,196) (155,588)
---------- ----------
833,970 1,361,771
---------- ----------
Inventories 159,097 948,650
Prepaid expenses 46,371 210,957
---------- ----------
Total current assets 1,604,621 2,679,741
---------- ----------
Indebtedness of related parties, not current 35,748 35,748
---------- ----------
Property and equipment 733,352 1,263,806
Less: Accumulated depreciation (396,470) (570,217)
---------- ----------
336,881 693,589
---------- ----------
Intangible Assets 1,478,170 1,478,170
Less: Accumulated Amortization (363,924) (289,037)
---------- ----------
1,114,246 1,189,133
---------- ----------
Long term lease receivable, net of current portion 0 64,261
Other assets 73,432 77,235
---------- ----------
3,164,928 4,739,707
========== ==========
LIABILITIES AND SHAREHOLDERS' EQUITY
Accounts and notes payable 1,629,146 2,015,043
Indebtedness to related parties 22,105 240,500
Other current liabilities 824,078 840,898
---------- ----------
Total current liabilities 2,475,330 3,096,441
Long-term debt, net of current portion 23,757 55,416
Commitments & Contingencies 151,115 191,115
Common Stock 1,188 1,147
Other shareholders' equity 513,539 1,395,588
---------- ----------
3,164,928 4,739,707
========== ==========
</TABLE>
See accompanying notes to condensed financial statements.
3
<PAGE>
RYAN - MURPHY INCORPORATED
CONDENSED STATEMENTS OF OPERATIONS
<TABLE>
<CAPTION>
THREE MONTHS ENDED NINE MONTHS ENDED
SEPTEMBER 30, SEPTEMBER 30, SEPTEMBER 30, SEPTEMBER 30,
------------- ------------- ------------- -------------
1995 1994 1994 1994
------------- ------------- ------------- ------------
<S> <C> <C> <C> <C>
Contract and other revenue 1,153,641 2,135,146 4,765,900 6,234,301
Costs of revenue earned 1,120,482 1,696,276 4,241,973 4,962,422
----------- ----------- ---------- -----------
Gross profit 33,159 438,870 523,927 1,271,879
Costs and expenses:
General and administrative expense 472,358 574,260 1,390,889 1,521,724
Provision for bad debts 6,750 24,000 21,500 72,000
----------- ----------- ---------- -----------
Income (loss) from operations (445,948) (159,390) (888,462) (321,845)
Non-operating income (expense) 14,988 8,329 14,634 10,477
Interest expense 9,075 (29,563) (38,319) (100,570)
----------- ----------- ---------- -----------
Income before income taxes (421,886) (180,624) (912,147) (411,938)
Income taxes (2,899) (4,214) (4,484) (5,853)
----------- ----------- ---------- -----------
Net income (loss) (424,785) (184,838) (916,631) (417,791)
=========== =========== =========== ===========
Net income (loss) per common share (0.024) (0.012) (0.052) (0.027)
=========== =========== =========== ===========
Weighted average common shares
outstanding 17,526,823 15,506,957 17,526,823 15,506,957
=========== =========== =========== ===========
</TABLE>
See accompanying notes to condensed financial statements.
4
<PAGE>
RYAN - MURPHY INCORPORATED
CONDENSED STATEMENTS OF CASH FLOWS
<TABLE>
<CAPTION>
NINE MONTHS ENDED SEPTEMBER 30,
-------------------------------
1995 1994
---------- ---------
<S> <C> <C>
Net cash provided by (used in) operating activities 399,025 194,525
---------- ----------
Cash flows from investing activities
Capital expenditures 0 (416,246)
Retirement of property and equipment 214,739 156,955
Cash proceeds from long term lease receivable 239,261 (279,287)
---------- ----------
454,000 (538,578)
---------- ----------
Cash flows from financing activities:
Cash proceeds from issuance common stock 34,623 421,063
Cash proceeds from debt issuance 1,183,890 1,917,125
Debt service payments (1,446,323) (2,106,114)
Cash proceeds from debt issuance, related parties 0 290,000
Debt service payments to related parties (218,395) (250,000)
---------- ----------
(446,205) 272,074
---------- ----------
Net increase in cash and cash equivalents 406,820 (71,979)
Cash and cash equivalents, beginning 158,363 227,107
---------- ----------
Cash and cash equivalents, ending 565,183 155,128
========== ==========
</TABLE>
See accompanying notes to condensed financial statements.
5
<PAGE>
RYAN-MURPHY INCORPORATED
Notes to Condensed Financial Statements
September 30, 1995
Note A: CONDENSED FINANCIAL STATEMENTS
The condensed balance sheets as of September 30, 1995 and December 31,
1994, the condensed statements of operations for the three months and
the nine months periods ended September 30, 1995 and September 30,
1994, and the condensed cash flows for the nine month periods ended
September 30, 1995 and September 30, 1994 have been prepared by the
Company without audit. In the opinion of management, all adjustments
(which include only normal recurring adjustments) necessary to present
fairly the financial position as of September 30, 1995 and for all
periods presented, have been made.
Note B: RELATED PARTY TRANSACTIONS
As of September 30, 1995 the indebtedness to the related parties
totalled $22,105. No payments were made during the third quarter.
Note C: RESTRICTED CASH
The Company had restricted cash certificates of deposits totalling
$76,410 as of September 30, 1995. These certificates were collateral
for letters of credit and payment and performance bonds.
Note D: INVENTORIES
Inventories consisted of the following at September 30, 1995:
<TABLE>
<S> <C>
Costs in excess of billings on uncompleted contracts $ 7,742
Equipment held for sale - thermal desorption equipment 70,008
Supplies 81,347
--------
Total $159,197
--------
</TABLE>
Note E: BILLINGS IN EXCESS OF COSTS ON UNCOMPLETED CONTRACTS
Included in other current liabilities in the accompanying financial
statements at September 30, 1995 are billings in excess of costs on
uncompleted contracts totalling $253,563.
6
<PAGE>
Note F: COMMON STOCK
There were 500,000,000 shares of $0.000067 par value common stock
authorized and 17,728,526 shares issued and outstanding at
September 30, 1995.
Note G: WARRANTS
The Company had 3,200,000 warrants issued in connection with the
public stock offering which closed February, 27, 1992. These
warrants are exercisable at $0.85 per share. The exercise date has
been extended from August 31, 1995 to February 1, 1996.
Note H: STOCK OPTIONS
The Company currently has outstanding incentive stock options to
employees and officers for 1,850,000 shares of stock at various
exercise prices from $0.34 - $0.63 per share. 716,666 are
exercisable on or before December 31, 1995, 566,666 are exercisable
on or before December 31, 1996 and 566,668 are exercisable on or
before December 31, 1997. Of the 375,000 stock options that were
outstanding at December 31, 1995, 225,000 have expired due to the
termination of employees, officers and directors. 1,700,000 stock
options were issued on May 1, 1995 to Mr. Patrick V. Ryan and
Mr. Dennis C. Murphy pursuant to employment agreements. These
employment agreements and associated stock options were cancelled
on October 5, 1995. New employment agreements and stock options for
the same number of shares were issued on October 5, 1995.
Note I: CONTINGENCY
During July 1991, a customer filed for protection from creditors
under Chapter 11 of the U.S. Bankruptcy Code. During the first
quarter of 1993, a claim was filed alleging that the Company received
preferential treatment from the customer prior to the bankruptcy for
payments in the amount of $96,000. The Company reached a settlement
of $40,000 payable over a year starting in the second quarter of
1995. The Company's legal counsel recommended that the Company
accept this settlement offer. The Company provided for this legal
claim at December 31, 1994, and the $40,000 is being recognized as
a current Note Payable.
The Company signed a letter of intent on August 9, 1993 to acquire
90% interest in an oil recovery business in exchange of $750,000 and
1,000,000 shares of its common stock. While conducting its due
diligence, the Company determined that the original letter of intent
should be re-negotiated. The Company was not successful in
re-negotiating the original
7
<PAGE>
letter of intent and abandoned the business acquisition during the
fourth quarter of 1994. While conducting its due diligence, the
Company entered into a rental agreement from a supplier who
represented themselves as experts in the oil processing business.
The Company believes that the rental equipment did not work as
represented and could not reach a settlement with the equipment
rental company. The equipment rental company filed suit for the
proposed rentals in the amount of $151,115. The Company is
vigorously defending this suit, however, it has accrued the full
amount of the suit as a potential liability, $151,115. The Company
has subsequently agreed to a settlement of $75,000. Because the
payment terms have not been finalized, the full amount of $151,115
is still being recognized in this Form 10Q.
Note J: CHANGE IN CONTROL
The Company entered into an agreement on September 6, 1995 with
Bruce T. Hissom. The Company will acquire 51% of a privately held
Venezuelan company known as Ambiente Americas, C.A. Ambiente
Americas will own land and buildings which comprise an existing
manufacturing facility. This facility is located near heavy
industries which will provide hazardous remediation business to
Ambiente Americas. Ambiente Americas, through Mr. Bruce T. Hissom,
was recently awarded the first permit from the municipality of
Caroni for the installation and operation of a rotary kiln unit
designed for the incineration of toxic waste with a capacity of 140
tons per day. To facilitate this agreement, the Company will reverse-
split its common shares on the basis of one share for every thirty
currently outstanding.
Under the September 6, 1995 agreement, the Company will issue
approximately 70,800,000 shares, prior to the reverse split, to
Bruce T. Hissom and his associates for this acquisition. 13,536,330
shares, prior to the reverse split, will be issued on a prorata basis
depending on the amount of cash infused by Mr. Bruce T. Hissom, and
his associates. 35,435,430 shares, prior to the reverse split, will
be placed into escrow, and released over a three year basis provided
certain performance criteria is reached. 11,811,810 shares, prior to
the reverse split, will be released each year from escrow provided
the average thirty day bid price of the common shares at June 30,
1996, 1997, and 1998 exceeds $2.00, $4.00, and $6.00, respectively.
If all of the shares are earned by Mr. Bruce T. Hissom, through
performance, he and his associates will own approximately 80% of
the Company. As of the date hereof, the parties have been unable to
finalize the documentation of the transaction. The parties,
nevertheless, have agreed to continue to work toward the finalization
of the September 6, 1995 agreement. The cash infusion is to be
completed by December 15, 1995.
8
<PAGE>
Note K: DELISTING OF THE COMPANY
The Company was delisted from NASDAQ on September 7, 1995 for failure
to meet minimum listing requirements. The Company continues to trade
on the NASD Bulletin Board under the symbol RMII.U.
Note L: SUBSEQUENT EVENTS
The financial statements have been prepared on the assumption that
the Company will continue as a going concern. The Company has not
been profitable since the year ended January 31, 1992. Its current
liabilities exceed its current assets by $870,709 at September 30,
1995 and $380,951 at December 31, 1994. Management has addressed
the viability of the Company very aggressively.
As part of the plan to improve the Company's stability, Management
entered into an agreement to sell the Fixed Site which is located in
Fontana, CA. The buyer backed out of the deal. The Company closed
the Fixed Site, but may keep the California office open. The final
determination on the California office has not been made.
The Company has previously reported a letter of intent with Havon
Funding, LP and Zapit Technologies, Inc. This letter of intent has
been abrogated by the parties and is of no further force of effect.
Mr. Hans Morkner, who became a Director of the Company under the
terms of this abrogated letter of intent, has resigned.
On July 31, 1995, the Company entered into a letter of intent to
acquire all of the issued and outstanding shares of two private
companies. Among other terms, the letter of intent was contingent
upon due diligence and upon the private companies providing a total
of $450,000 in capital for the Company. On August 17, 1995, these
two companies informed the Company that they were terminating the
letter of intent. However, one of the principal financing sources,
Mr. Bruce T. Hissom, which had been involved with these two companies
entered into an agreement with the Company on September 6, 1995. As
of the date hereof, the parties have been unable to finalize the
documentation of the transaction. The parties, nevertheless, have
agreed to continue to work toward the finalization of the
September 6, 1995 agreement.
The annual shareholders meeting was held on October 5, 1995. The
shareholders elected Messrs. Bruce T. Hissom, Patrick V. Ryan,
Dennis C. Murphy and Terry Schreier as the Board of Directors. The
shareholders approved the one for thirty reverse split of the
Company's common shares and ratified all prior actions of the
Board of Directors. The Board of Directors then elected Mr. Bruce
T. Hissom as President, Chief Executive
9
<PAGE>
Officer, Chief Financial Officer, and Treasurer, Mr. Dennis C.
Murphy as Executive Vice President and Secretary, Patrick V. Ryan
as Executive Vice President.
10
<PAGE>
RYAN-MURPHY INCORPORATED
Part I. Item II.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
The revenue from the Environmental Construction Management division was
$2,600,388 and gross profit from operations was $617,944 for the nine months
ended September 30, 1995 compared to revenue of $4,063,809 and gross profit
from operations of $1,227,575 for the nine months ended September 30, 1994.
The decrease in revenues was due to a material decrease in work received from
our major client's program which has not been replaced by other work. Also
the Company terminated its two salesmen in the California office in
anticipation of closing this office. As part of the plan to improve the
Company's stability, Management entered into an agreement to sell the Fixed
Site which is located in Fontana, CA. The buyer backed out of the deal. The
Company closed the Fixed Site, but may keep the California office open. The
final determination on the California office has not been made.
The Good Earth Machine division, exclusive of the Fixed Site, had revenue of
$1,951,532 and gross profits from operations of $162,699 for the nine months
ended September 30, 1995 compared to revenue of $2,127,086 and gross profit
from operations of $94,787 for the nine months ended September 30, 1994. The
gross profit from operations is down because the gross profit from the sale
of used machines is less than the sale of new machines. The Company
delivered one new Good Earth Machine in January, 1995 and sold three used
machines during the first nine months of 1995.
The Company changed its emphasis in the Good Earth Machine division from
service to sales of thermal desorption equipment during the second quarter of
1994. The Company has sold two new machines and four used machines since
this change took place. Two of the used machines were sold to German
companies, Management expects these two sales will create sales of new
machines in the future. The Company currently has a number of prospects for
machine sales in the U.S. and Internationally.
Management has also reduced the ongoing costs of operating the Good Earth
Machine Division.
The Fixed Site had revenue of $213,981 and gross profit (loss) from
operations of ($256,717) for the nine months ended September 30, 1995
compared to revenue of $43,406 and gross profit (loss) from operations of
$(50,484) for the nine months ended September 30, 1994. There will be
material additional losses and write-offs during the final wind down of the
Fixed Site. The extent of these losses and write-offs cannot be determined
at this time. The Fixed Site did not start operations until the third
quarter of 1994.
11
<PAGE>
Net profit (loss) after taxes, for the Company, was ($916,631) for the nine
months ended September 30, 1995 compared to ($417,791) for the nine months
ended September 30, 1994. The increase in net (loss) is due to several
reasons, reduction of work and gross profit from operations in the
Environmental Construction Management division, losses at the Fixed Site and
substantial increases in Consulting and Legal & Professional. The Consulting
costs were incurred in the pursuit of financing and equity proposals. Legal
& Professional costs were incurred in the defense of the lawsuit outlined in
"Commitments & Contingencies" and costs incurred in the pursuit of financing
& equity proposals. The Company has continued to implement cost control
measures to reduce other overhead costs of the company.
Net cash flows from operations was $399,025 for the nine months ended
September 30, 1995 compared to $194,525 for the nine months ended September
30, 1994. Major sources of operating capital were decreases in accounts
receivable, inventory, prepaid expenses, depreciation and amortization, and
increases in accounts payable and net billings in excess of costs. Major
uses of operating capital were decreases in accounts payable-other, and
deposits. Investing activities provided (used) $454,000 for the first nine
months ended September 30, 1995 compared to ($538,578) during the first nine
months ended September 30, 1994. Major cash flows from investing activities
were the retirement of property and equipment and cash proceeds from long
term lease receivable. Financing activities provided (used) ($446,205) for
the nine months ended September 30, 1995 compared to $272,074 for the nine
months ended September 30, 1994. Debt issuance accounts for the primary
provision and debt service accounts for the primary usage in both periods.
$218,395 was repaid to a shareholder and two officers during the first nine
months of 1995.
The Company has not been profitable since the year ended January 31, 1992,
and has a net capital deficiency at September 30, 1995 that raises a
substantial doubt about its ability to continue as a going concern. Its
current liabilities exceed its current assets by $870,709 at September 30,
1995. Management has addressed the viability of the Company very
aggressively.
The Company materially downsized its work force at the end of September as
the result of the reduction of work in the Environmental Construction
Management division. 10 of 24 employees in the Denver office were terminated
during the third quarter as the result of the reduction of work. The Company
has restructured and is continuing to restructure its debt obligations,
including notes and accounts payable, as the result of reduced revenue and
reduced cash flow. The restructuring of its debt obligations is allowing the
Company to continue in business.
Since becoming President on October 5, 1995, Mr. Bruce T. Hissom has
aggressively pursued new business. No new contracts have been entered into
as of this date, however, some of the work currently being proposed and
reviewed should produce revenue prior to the end of the year.
12
<PAGE>
A key part of management's plan to secure the viability of the Company is the
agreement which the Company entered into on September 6, 1995 with Mr. Bruce
T. Hissom. The Company will acquire 51% of a privately held Venezuelan
company known as Ambiente Americas, C.A. Ambiente Americas will own land and
buildings which comprise an existing manufacturing facility. This facility
is located near heavy industries which will provide hazardous remediation
business to Ambiente Americas. Ambiente Americas, through Mr. Bruce T.
Hissom, was recently awarded the first permit from the municipality of Caroni
for the installation and operation of a rotary kiln unit designed for the
incineration of toxic waste with a capacity of 140 tons per day. To
facilitate this agreement, the Company will reverse-split its common shares
on the basis of one share for every thirty currently outstanding.
Under the September 6, 1995 agreement, the Company will issue approximately
70,800,000 shares, prior to the reverse split, to Bruce T. Hissom and his
associates for this acquisition. 13,536,330 shares, prior to the reverse
split, will be issued on a prorata basis depending on the amount of cash
infused by Mr. Bruce T. Hissom, and his associates. 35,435,430 shares, prior
to the reverse split, will be placed into escrow, and released over a three
year basis provided certain performance criteria is reached. 11,811,810
shares, prior to the reverse split, will be released each year from escrow
provided the average thirty day bid price of the common shares at June 30,
1996, 1997, and 1998 exceeds $2.00, $4.00, and $6.00, respectively.
If all of the shares are earned by Mr. Bruce T. Hissom, through performance,
he and his associates will own approximately 80% of the Company. As of the
date hereof, the parties have been unable to finalize the documentation of
the transaction. The parties, nevertheless, have agreed to continue to work
toward the finalization of the September 6, 1995 agreement. The cash
infusion is to be completed by December 15, 1995.
13
<PAGE>
RYAN-MURPHY INCORPORATED
PART II - OTHER INFORMATION
Item 1. LEGAL PROCEEDINGS
The Company is a defendant in several legal proceedings in the
ordinary course of business, none of which are material except for
the following suits.
The Company signed a letter of intent on August 9, 1993 to acquire
90% interest in an oil recovery business in exchange of $750,000 and
1,000,000 shares of its common stock. While conducting its due
diligence, the Company determined that the original letter of intent
should be re-negotiated. The Company was not successful in
re-negotiating the original letter of intent and abandoned the
business acquisition during the fourth quarter of 1994. While
conducting its due diligence, the Company entered into a rental
agreement from a supplier who represented themselves as experts in
the oil processing business. The Company believes that the rental
equipment did not work as represented and could not reach a
settlement with the equipment rental company. The equipment rental
company filed suit in the United States District Court of the District
of Colorado for the proposed rentals in the amount of $151,115. The
Company is vigorously defending this suit, however, it has accrued
the full amount of the suit as a potential liability, $151,115. The
Company has subsequently agreed to a settlement of $75,000. Because
the payment terms have not been finalized, the full amount of
$151,115 is still being recognized in this Form 10Q.
The Company leased two mobile structures on the Fixed Site in
Fontana, CA and did not make all of the rental payments as called
for in the original rental agreement. The rental company filed suit
in Superior Court of the State of California, County of Riverside in
the amount of $87,000. The suit was later amended and increased to
$133,680. The Company is attempting to negotiate a settlement, it
has accrued $107,171 of the suit as a potential liability.
The Company entered into a Purchase-Lease Agreement for a Good Earth
Machine on May 18, 1994 which required monthly payments of $6,800
with a balloon payment due on May 1, 1995. The lessor-seller filed
suit in District Court, Adams County, Colorado in the amount of
$294,722. The Company is attempting to negotiate a settlement,
however, it has recorded the full amount of the suit as a potential
liability.
14
<PAGE>
The Company had a line of credit with Key Bank of Colorado in the
amount of $450,000. This line of credit was called at its renewal
date because the bank alleged that the Company had not met certain
operating cash flow requirements. The bank has filed suit for the
remaining balance of approximately $190,000. The Company is alleging
certain violations of their lending agreement with the bank. The
Company is carrying the $190,000 note as a current note payable.
Item 2. CHANGES IN SECURITIES
Not applicable
Item 3. DEFAULTS UPON SENIOR SECURITIES
Not applicable
Item 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
No matter was submitted to a vote of security holders during the
reporting period.
Item 5. OTHER INFORMATION
Not applicable
Item 6. EXHIBITS AND REPORTS ON FORM 8-K
The Company filed 7 Form 8-K's during the reporting period, July 10,
1995, July 13, 1995, August 4, 1995, August 25, 1995, August 30, 1995,
September 6, 1995 and September 25, 1995.
15
<PAGE>
RYAN-MURPHY INCORPORATED
SIGNATURES
The financial information furnished herein has not been audited by an
independent accountant; however, in the opinion of management, all
adjustments (consisting of normal recurring adjustments) necessary, for a
fair presentation of the financial position at September 30, 1995 and the
results of operations for the three months periods and nine months periods
ended September 30, 1995 and September 30, 1994 have been included.
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Company has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
Ryan-Murphy Incorporated
--------------------------------------
(Registrant)
Bruce T. Hissom
Date: ---------------------------------------
Bruce T. Hissom,
President and Chief Financial Officer
16
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-START> JAN-01-1995
<PERIOD-END> SEP-30-1995
<CASH> 565,183
<SECURITIES> 0
<RECEIVABLES> 949,166
<ALLOWANCES> 115,196
<INVENTORY> 159,097
<CURRENT-ASSETS> 1,604,621
<PP&E> 733,352
<DEPRECIATION> 396,470
<TOTAL-ASSETS> 3,164,928
<CURRENT-LIABILITIES> 2,475,330
<BONDS> 0
<COMMON> 1,188
0
0
<OTHER-SE> 513,539
<TOTAL-LIABILITY-AND-EQUITY> 3,164,928
<SALES> 0
<TOTAL-REVENUES> 4,765,900
<CGS> 1,120,482
<TOTAL-COSTS> 472,358
<OTHER-EXPENSES> (14,988)
<LOSS-PROVISION> 6,750
<INTEREST-EXPENSE> 9,075
<INCOME-PRETAX> (421,886)
<INCOME-TAX> 2,899
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (424,785)
<EPS-PRIMARY> (0.024)
<EPS-DILUTED> (0.024)
</TABLE>
