UNITED STATES
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 April 30, 1997
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: 33-9218
Air Brook Airport Express, Inc.
- - --------------------------------------------------------------------------------
(Exact name of registrant as specified in its charter)
Delaware 22-2742564
- - ------------------------------- ----------------------------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
115 West Passaic Street, Rochelle Park, New Jersey 07662
- - --------------------------------------------------------------------------------
(Address of principal executive offices) (Zip Code)
(201) 843-6100
- - --------------------------------------------------------------------------------
(Registrant's telephone number, including area code)
- - --------------------------------------------------------------------------------
(Former name, former address and former fiscal year,
if changed since last report)
Check whether the issuer (1) has filed all reports required to be filed by
section 13 or 15 (d) of the Exchange Act during the past 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 INVOLVED IN BANKRUPTCY
PROCEEDINGS DURING THE PRECEDING FIVE YEARS
Check whether the registrant filed all documents and reports required to be
filed by Section 12, 13 or 15(d) of the Exchange Act after the distribution of
securities under a plan confirmed by a court. Yes |_| No |_|
APPLICABLE ONLY TO CORPORATE ISSUERS
State the number of shares outstanding of each of the issuer's classes of common
equity as of the latest practicable date: 2,014,500 Shares as of April 30, 1997.
<PAGE>
AIR BROOK AIRPORT EXPRESS, INC. AND SUBSIDIARY
INDEX
PART I - FINANCIAL INFORMATION:
ITEM 1 - FINANCIAL STATEMENTS
Consolidated Balance Sheets (Unaudited) April 30, 1997
and October 31, 1996 1
Consolidated Statements of Income (Unaudited) for the
Three Months Ended April 30, 1997 and 1996 2
Consolidated Statements of Income (Unaudited) for the 3
Six Months ended April 30, 1997 and 1996
Consolidated Statement of Changes In Stockholders' Deficit
(Unaudited) for the Six Months Ended April 30, 1997 4
Consolidated Statements of Cash Flows (Unaudited) for the
Six Months Ended April 30, 1997 and 1996 5
Notes to Consolidated Financial Statements (Unaudited) 6-7
ITEM 2 - MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS 8
PART II - OTHER INFORMATION 9
<PAGE>
AIR BROOK AIRPORT EXPRESS, INC. AND SUBSIDIARY
CONSOLIDATED BALANCE SHEETS
(Unaudited)
April 30, October 31,
1997 1996
----------- -----------
ASSETS
Current assets:
Cash $ 600 $ 313
----------- -----------
Total current assets 600 313
Deposits 650 650
----------- -----------
Total assets $ 1,250 $ 913
=========== ===========
LIABILITIES AND STOCKHOLDERS' DEFICIT
Current liabilities:
Accounts payable $ 314,913 $ 314,913
Accrued expenses 4,951 4,951
Due to affiliate 881,131 913,577
----------- -----------
Total current liabilities 1,200,995 1,233,441
----------- -----------
Stockholders' deficit:
Common stock, $.0001 par value: 98,800,000 shares
authorized; 2,014,500 issued and outstanding 201 201
Preferred stock, $.0001 par value:
1,200,000 shares authorized; none issued -- --
Additional paid-in capital 202,936 202,936
Accumulated deficit (1,402,882) (1,435,615)
----------- -----------
Total stockholders' deficit (1,199,745) (1,232,478)
----------- -----------
Total liabilities and stockholders' deficit $ 1,250 $ 963
=========== ===========
See accompanying notes to consolidated financial statements (unaudited).
-1-
<PAGE>
AIR BROOK AIRPORT EXPRESS, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENT OF INCOME
FOR THE THREE MONTHS ENDED APRIL 30,
(UNAUDITED)
1997 1996
----------- -----------
Revenue $ 17,559 $ 21,576
General, administrative and operating expenses 1,041 1,133
Gain on settlement of litigation -- (5,084)
----------- -----------
Net income $ 16,518 $ 25,527
=========== ===========
Income per common equivalent share:
Net income $ .01 $ .01
=========== ===========
Weighted average number of common shares outstanding:
Primary 2,014,500 2,014,500
=========== ===========
See accompanying notes to consolidated financial statements (unaudited).
-2-
<PAGE>
AIR BROOK AIRPORT EXPRESS, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENT OF INCOME
FOR THE SIX MONTHS ENDED APRIL 30,
(UNAUDITED)
1997 1996
---------- ----------
Revenue $ 34,946 $ 41,308
General, administrative and operating expenses 2,213 1,279
---------- ----------
Operating income before other income (expenses) 32,733 40,029
Other income (expenses):
Gain on settlement of litigation -- 5,084
---------- ----------
Net income $ 32,733 $ 45,113
========== ==========
Income per common equivalent share:
Net income $ .02 $ .02
========== ==========
Weighted average number of common shares outstanding:
Primary 2,014,500 2,014,500
========== ==========
See accompanying notes to consolidated financial statements (unaudited).
-3-
<PAGE>
AIR BROOK AIRPORT EXPRESS, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENT OF STOCKHOLDERS' DEFICIT
FOR THE SIX MONTHS ENDED APRIL 30, 1997
(UNAUDITED)
<TABLE>
<CAPTION>
Common Stock Additional Total
------------------------- Paid-in Accumulated Stockholders'
Shares Amount Capital Deficit Deficit
----------- ----------- ----------- ----------- ------------
<S> <C> <C> <C> <C> <C>
Balances at November 1, 1996 2,014,500 $ 201 $ 202,936 $(1,435,615) $(1,232,478)
Net income for the six months
ended April 30, 1997 33,733 32,733
----------- ----------- ----------- ----------- -----------
Balance at April 30, 1997 2,014,500 $ 201 $ 202,936 $(1,402,882) $(1,199,745)
=========== =========== =========== =========== ===========
</TABLE>
See accompanying notes to consolidated financial statements (unaudited).
-4-
<PAGE>
AIR BROOK AIRPORT EXPRESS, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE SIX MONTHS ENDED APRIL 30,
(UNAUDITED)
1997 1996
-------- --------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 32,733 $ 45,113
Adjustments to reconcile net income to net cash
provided (consumed) by operating activities:
Earnings from settlement at less than
recorded liability (5,084)
Changes in assets and liabilities:
Decrease in accounts payable and accrued expenses -- (88,506)
(Decrease) Increase in amount due to affiliate (32,446) 48,448
-------- --------
Net cash flows used for operating activities 287 (29)
CASH FLOWS FROM INVESTING ACTIVITIES -- --
CASH FLOWS FROM FINANCING ACTIVITIES -- --
-------- --------
Increase (Decrease) in cash 287 (29)
Cash, beginning of period 313 232
-------- --------
Cash, end of period $ 600 $ 203
======== ========
See accompanying notes to consolidated financial statements (unaudited).
-5-
<PAGE>
AIR BROOK AIRPORT EXPRESS, INC. AND SUBSIDIARY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
APRIL 30, 1997
NOTE 1 - GENERAL
The accompanying unaudited financial statements have been prepared
in accordance with generally accepted accounting principles for
interim financial information and with instructions to Form 10-QSB.
Accordingly, they do not include all of the information and
footnotes required by generally accepted accounting principles for
complete financial statements. In the opinion of management, the
interim financial statements include all adjustments necessary in
order to make the financial statements not misleading. The results
of operations for the three and six months ended April 30, 1997 are
not necessarily indicative of the results to be expected for the
full year. These statements should be read in conjunction with the
financial statements and notes that are included in the company's
annual report Form 10-KSB.
NOTE 2 - GOING CONCERN UNCERTAINTY
The accompanying consolidated financial statements have been
prepared assuming that the Company will continue as a going concern.
As shown in the consolidated financial statements, the Company had
material working capital deficiencies and accumulated deficits at
April 30, 1997. Additionally, the Company receives significant
financial support from an affiliated entity, Air Brook Limousine
Inc. ("Air Limo"). Such support is essential to the Company's
continuance.
These factors raise substantial doubt about the ability of the
Company to continue as a going concern. The financial statements do
not include adjustments relating to the recoverability of assets and
classification of liabilities that might be necessary should the
Company be unable to continue in operation.
The Company's present plans, the realization of which cannot be
assured, to overcome these difficulties include but are not limited
to the continuing effort to investigate business acquisition and
merger opportunities.
NOTE 3 - RELATED PARTY TRANSACTIONS
a. Pursuant to two 1991 agreements, the Company's subsidiary,
A.B. Park and Fly, Inc. ("Abex"), transferred all of its
transportation equipment and operating activities of a ground
transportation facility in Ridgewood, New Jersey to its
affiliate, Air Limo. Air Limo in return has agreed to pay Abex
a fee equal to ten percent (10%) of gross collections for such
facility.
b. On May 1, 1993, Abex entered into an agreement with Air Limo
whereas Air Limo opened and operates a second satellite
terminal in the Borough of Montvale. Pursuant to the
agreement, Air Limo bears all costs of operating the facility
and pays Abex three percent (3%) of the gross receipts
generated by the facility..
c. On August 10, 1993, the Company entered into an agreement with
Air Limo under which Air Limo will continue to advance funds
on behalf of the Company and its subsidiary as long as Air
Limo deems necessary and as long as Air Limo is financially
able. Such advances are due on demand and Air Limo may
terminate the agreement at any time.
d. The Company's principal offices are in a building owned by its
president. The Company occupies these offices on a month to
month basis, free of charge.
-6-
<PAGE>
AIR BROOK AIRPORT EXPRESS, INC. AND SUBSIDIARY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
APRIL 30, 1997
NOTE 4 - DUE TO AFFILIATE
Air Limo has advanced a net total of $881,131 and $913,577, as of
April 30, 1997 and October 31, 1996, respectively, directly to or on
behalf of Abex to fund operations and liquidate liabilities. Such
advances bear no interest and are payable on demand.
NOTE 5 - COMMITMENT AND CONTINGENCIES
a. Litigation
None
b. Dependence on Affiliate
Air Limo advances funds on behalf of the Company and its subsidiary
to finance day to day operations. This agreement could be terminated
at any time by Air Limo, and these advances are due on demand. In
addition, all Company revenue comes from commissions on revenue of
the two facilities operated by Air Limo.
c. Dependence on Lease Terms
The Ridgewood terminal which is operated by Air Limo is leased by
Abex on a month to month basis from the village of Ridgewood, New
Jersey. This facility produced 90% of company revenue during the
year ended October 31, 1996. Termination of this lease would
eliminate this revenue stream. The lease term of Montvale facility
ended January 1996. Since then it has been leased by Air Limo on a
month to month basis.
-7-
<PAGE>
ITEM 2 - MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITIONS AND
RESULTS OF OPERATIONS
Three and six months ended April 30, 1997 compared to three and six
months ended April 30, 1996
Pursuant to an agreement signed on February 4, 1991, the Company
transferred all of its operating activities for its satellite
terminal located in Ridgewood, New Jersey and, on July 1, 1991 its
transportation equipment, to Air Brook Limousine, Inc. ("Air Limo").
Air Limo in return pays the Company a fee equal to ten percent (10%)
of gross collections from such terminal.
On May 1, 1993, the Company entered into an agreement with Air Limo
in which Air Limo agreed to open and operate a second satellite
terminal located in the borough of Montvale, New Jersey. Pursuant to
the agreement, Air Limo bears all costs of opening and operating
such terminal and pays the Company three percent (3%) of Air Limo's
gross receipts from such terminal.
On August 10, 1993, Air Limo stated its intention to fund the
Company's operations for as long as Air Limo deems necessary and as
long as Air Limo is financially able. Such advances are due on
demand. Air Limo may terminate such agreement at any time at its own
discretion.
In conjunction with such agreements, the Registrant has generated
revenue of $17,559 and $21,576 for the three months ended April 30,
1997 and 1996, respectively, and $34,946 and $41,308 for the six
months ended April 30, 1997 and 1996, respectively.
For the three and six months ended April 30, 1997, the Company has
generated net income in the amounts of $16,518 and $32,733,
respectively, whereas for the three and six months ended April 30,
1996 the Company generated net income in the amounts of $25,527 and
$45,113, resepectively.
-8-
<PAGE>
AIR BROOK AIRPORT EXPRESS, INC. AND SUBSIDIARY
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:
None
-9-
<PAGE>
FORM 10-QSB
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.
Air Brook Airport Express, Inc.
-------------------------------
(Registrant)
July 22, 1999 Donald M. Petroski
- - ------------- ------------------
Date Donald M. Petroski,
President, Director and Chief Financial Officer
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> OCT-31-1997
<PERIOD-START> FEB-01-1997
<PERIOD-END> APR-30-1997
<CASH> 600
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 600
<PP&E> 650
<DEPRECIATION> 0
<TOTAL-ASSETS> 1,250
<CURRENT-LIABILITIES> 1,200,995
<BONDS> 0
0
0
<COMMON> (1,199,745)
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 1,250
<SALES> 17,559
<TOTAL-REVENUES> 17,559
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 1,041
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 16,518
<INCOME-TAX> 0
<INCOME-CONTINUING> 16,518
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 16,518
<EPS-BASIC> 0.01
<EPS-DILUTED> 0.01
</TABLE>
