<PAGE> 1
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
--------------------
FORM 10-Q
[X] Quarterly Report pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934 for the quarterly period ended June 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 No.: 0-16372
KIMMINS ENVIRONMENTAL SERVICE CORP.
--------------------------------------------------------------------------------
(Exact name of registrant as specified in its charter)
Delaware 59-2763096
---------------------------------------- ------------------------------------
(State or other jurisdiction of (IRS Employer Identification Number)
incorporation or organization)
1501 Second Avenue - Tampa, Florida 33605
---------------------------------------- ------------------------------------
(Address of Principal Executive Offices) (Zip Code)
Registrant's telephone number, including area code: (813) 248-3878
----------------------------
None
--------------------------------------------------------------------------------
Former name, former address, and former fiscal year,
if changed since last report
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 ( )
--- --
APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY
PROCEEDINGS DURING THE PRECEDING FIVE YEARS:
Indicate by a check mark whether the registrant has filed all documents and
reports required to be filed by Sections 12, 13, or 15(d) of the Securities
Exchange Act of 1934 subsequent to the distribution of securities under a plan
confirmed by a court.
YES ( ) NO ( )
--- --
APPLICABLE ONLY TO CORPORATE ISSUERS
The number of shares of Common Stock outstanding on August 8, 1995, was
13,328,992 shares. The number of shares of Class B Common Stock outstanding on
August 8, 1995, was 6,874,706 shares.
<PAGE> 2
KIMMINS ENVIRONMENTAL SERVICE CORP.
FORM 10-Q
INDEX
<TABLE>
<CAPTION>
PAGE
<S> <C> <C>
PART I. FINANCIAL INFORMATION
Item 1. Consolidated balance sheets at December 31, 1994
and June 30, 1995 (unaudited) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 - 2
Consolidated statements of operations for the three and
six months ended June 30, 1994 and 1995 (unaudited) . . . . . . . . . . . . . . . . . . 3 - 4
Consolidated statements of cash flows for the six months
ended June 30, 1994 and 1995 (unaudited) . . . . . . . . . . . . . . . . . . . . . . . 5
Notes to consolidated financial statements . . . . . . . . . . . . . . . . . . . . . . 6 - 7
Item 2. Management's discussion and analysis of financial condition
and results of operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 - 10
PART II. OTHER INFORMATION
Item 1. Legal proceedings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
Item 2. Changes in securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
Item 3. Defaults upon senior securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
Item 4. Submission of matters to a vote of security holders . . . . . . . . . . . . . . . . . . 11
Item 5. Other information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
Item 6. Exhibits and reports on Form 8-K . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
Signatures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
</TABLE>
<PAGE> 3
SECURITIES AND EXCHANGE COMMISSION FORM 10-Q
PART I - FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
KIMMINS ENVIRONMENTAL SERVICE CORP.
CONSOLIDATED BALANCE SHEETS
<TABLE>
<CAPTION>
December 31, June 30,
1994 1995
--------------- ----------------
ASSETS (unaudited)
------
<S> <C> <C>
Current assets:
Cash $ 479,106 $ 433,839
Accounts receivable:
Contract and trade 22,081,973 21,832,993
Other receivables - affiliates 1,464,369 1,677,372
Note receivable - affiliate 54,167 56,667
Costs and estimated earnings in excess of billings on
uncompleted contracts 10,166,227 10,405,682
Income tax refund receivable 679,538 178,207
Other current assets 1,274,469 2,208,082
----------- -----------
Total current assets 36,199,849 36,792,842
----------- -----------
Property and equipment, net 26,815,429 28,204,933
Intangible assets - 829,725
Accounts receivable - affiliates 1,349,058 1,534,945
Note receivable - affiliate 3,533,696 3,510,362
Term note from affiliate (including accrued interest of
$51,983 and $274,176 as of December 31, 1994, and June
30, 1995, respectively) 4,343,032 4,565,225
Other assets 447,716 677,873
----------- -----------
$72,688,780 $76,115,905
=========== ===========
</TABLE>
SEE ACCOMPANYING NOTES.
1
<PAGE> 4
KIMMINS ENVIRONMENTAL SERVICE CORP.
CONSOLIDATED BALANCE SHEETS
<TABLE>
<CAPTION>
December 31, June 30,
1994 1995
--------------- ----------------
LIABILITIES AND STOCKHOLDERS' EQUITY (unaudited)
------------------------------------
<S> <C> <C>
Current liabilities:
Accounts payable - trade $13,303,408 $13,743,340
Deferred income taxes 73,708 73,708
Accrued expenses 3,473,775 3,960,707
Billings in excess of costs and estimated earnings on
uncompleted contracts 1,375,548 1,347,635
Current portion of long-term debt 6,168,006 5,510,467
Current portion of Employee Stock Ownership Plan
Trust debt 600,000 600,000
----------- -----------
Total current liabilities 24,994,445 25,235,857
----------- -----------
Long-term debt 14,632,115 16,708,235
Employee Stock Ownership Plan Trust debt 2,400,000 2,100,000
Deferred income taxes 2,914,597 2,914,597
Minority interest in subsidiary 3,233,421 3,458,518
Commitments and contingencies - -
Stockholders' equity:
Preferred stock, $.001 par value; 1,000,000 shares
authorized, none issued and outstanding - -
Common stock, $.001 par value; 32,500,000 shares
authorized; 13,328,992 shares issued and outstanding 13,329 13,329
Class B common stock, $.001 par value; 10,000,000
shares authorized; 6,874,706 shares issued and
outstanding 6,875 6,875
Capital in excess of par value 18,696,909 18,696,909
Retained earnings 8,569,023 9,455,667
Unearned employee compensation from Employee
Stock Ownership Plan Trust (2,771,934) (2,474,082)
----------- -----------
Total stockholders' equity 24,514,202 25,698,698
----------- -----------
$72,688,780 $76,115,905
=========== ===========
</TABLE>
SEE ACCOMPANYING NOTES.
2
<PAGE> 5
KIMMINS ENVIRONMENTAL SERVICE CORP.
CONSOLIDATED STATEMENTS OF OPERATIONS
<TABLE>
<CAPTION>
Three months ended June 30,
------------------------------
1994 1995
----------- -----------
(unaudited) (unaudited)
<S> <C> <C>
Revenue:
Gross revenue $26,801,127 $25,468,296
Outside services, at cost (3,334,151) (2,575,507)
----------- -----------
Net revenue 23,466,976 22,892,789
Costs and expenses:
Cost of revenue earned 19,479,578 18,856,400
Selling, general and administrative
expenses 2,839,813 3,154,260
----------- -----------
Operating income 1,147,585 882,129
Minority interest in net income of subsidiary (35,275) (123,740)
Interest expense, net (255,564) (331,364)
----------- -----------
Income before provision for income taxes 856,746 427,025
Provision for income taxes 337,473 203,425
----------- -----------
Net income $ 519,273 $ 223,600
=========== ===========
Income per share $ .04 $ .02
=========== ===========
Weighted average number of shares
outstanding used in computation 13,328,992 13,328,992
=========== ===========
</TABLE>
SEE ACCOMPANYING NOTES.
3
<PAGE> 6
KIMMINS ENVIRONMENTAL SERVICE CORP.
CONSOLIDATED STATEMENTS OF OPERATIONS
<TABLE>
<CAPTION>
Six months ended June 30,
------------------------------
1994 1995
----------- -----------
(unaudited) (unaudited)
<S> <C> <C>
Revenue:
Gross revenue $47,610,911 $51,218,046
Outside services, at cost (5,307,013) (7,280,613)
----------- -----------
Net revenue 42,303,898 43,937,433
Costs and expenses:
Cost of revenue earned 35,203,276 35,565,788
Selling, general and administrative
expenses 5,197,944 5,874,802
----------- -----------
Operating income 1,902,678 2,496,843
Minority interest in net income of subsidiary (29,885) (225,097)
Interest expense, net (406,642) (674,900)
----------- -----------
Income before provision for income taxes 1,466,151 1,596,846
Provision for income taxes 570,054 710,202
----------- -----------
Net income $ 896,097 $ 886,644
=========== ===========
Income per share $ .07 $ .07
=========== ===========
Weighted average number of shares
outstanding used in computation 13,328,992 13,328,992
=========== ===========
</TABLE>
SEE ACCOMPANYING NOTES.
4
<PAGE> 7
KIMMINS ENVIRONMENTAL SERVICE CORP.
CONSOLIDATED STATEMENTS OF CASH FLOWS
INCREASE (DECREASE) IN CASH
<TABLE>
<CAPTION>
Six months ended June 30,
-----------------------------
1994 1995
----------- -----------
(unaudited) (unaudited)
<S> <C> <C>
Cash flows from operating activities:
Net income $ 896,097 $ 886,644
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation and amortization 1,923,412 1,874,427
Gain (loss) on disposal of property and equipment 116,035 (143,814)
Accrued interest on term note (206,252) (222,193)
Minority interest in net (income) loss of
subsidiary 29,885 225,097
Unearned employee compensation from
Employee Stock Ownership Plan Trust 313,969 297,852
Changes in operating assets and liabilities:
Accounts receivable (3,610,253) (129,076)
Costs and estimated earnings in excess of
billings on uncompleted contracts 1,415,723 (239,455)
Income tax refund receivable 335,490 501,331
Other assets (182,090) (1,163,770)
Accounts payable (754,555) 439,932
Accrued expenses 1,111,316 486,932
Billings in excess of costs and estimated
earnings on uncompleted contracts 580,736 (27,913)
----------- -----------
Total adjustments 1,073,416 1,899,350
----------- -----------
Net cash provided by operating activities 1,969,513 2,785,994
----------- -----------
Cash flows from investing activities:
Capital expenditures (3,234,905) (4,571,202)
Proceeds from sale of property and equipment 783,367 621,360
----------- -----------
Net cash used by investing activities (2,451,538) (3,949,842)
----------- -----------
Cash flows from financing activities:
Proceeds from long-term debt 3,585,334 4,509,748
Repayments of long-term debt (2,767,467) (3,091,167)
Repayments of Employee Stock Ownership Plan
Trust debt (300,000) (300,000)
----------- -----------
Net cash provided by financing activities 517,867 1,118,581
----------- -----------
Net increase (decrease) in cash 35,842 (45,267)
Cash, beginning of period 2,530,428 479,106
----------- -----------
Cash, end of period $ 2,566,270 $ 433,839
=========== ===========
</TABLE>
SEE ACCOMPANYING NOTES.
5
<PAGE> 8
KIMMINS ENVIRONMENTAL SERVICE CORP.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
1. ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of presentation - These financial statements of Kimmins
Environmental Service Corp. (the "Company") omit or condense certain
footnotes and other information normally included in financial
statements prepared in accordance with generally accepted accounting
principles. In the opinion of management, all adjustments (consisting
only of normal recurring accruals) necessary for fair presentation of
the financial information for the interim periods reported have been
made.
Intangible assets - Intangible assets consist principally of the
excess of costs over fair market value of the net assets of the
acquired solid waste management business, which are being amortized on
a straight-line basis over twenty years, and customer contracts, which
are being amortized on a straight-line basis over five years.
Accumulated amortization was $22,275 at June 30, 1995 (none during
1994).
2. COSTS AND ESTIMATED EARNINGS ON UNCOMPLETED CONTRACTS
<TABLE>
<CAPTION>
December 31, June 30,
1994 1995
------------ -----------
(unaudited)
<S> <C> <C>
Expenditures on uncompleted contracts $ 92,911,600 $74,998,580
Estimated earnings on uncompleted contracts 17,028,013 13,599,457
------------ -----------
109,939,613 88,598,037
Less actual and allowable billings on uncompleted
contracts 101,148,934 79,539,990
------------ -----------
$ 8,790,679 $ 9,058,047
============ ===========
Costs and estimated earnings in excess of billings
on uncompleted contracts $ 10,166,227 $10,405,682
Billings in excess of costs and estimated earnings
on uncompleted contracts (1,375,548) (1,347,635)
------------ -----------
$ 8,790,679 $ 9,058,047
============ ===========
</TABLE>
3. PROPERTY AND EQUIPMENT, NET
<TABLE>
<CAPTION>
December 31, June 30,
1994 1995
------------ -----------
(unaudited)
<S> <C> <C>
Land $ 4,699,480 $ 4,699,480
Buildings and improvements 6,275,216 6,898,392
Construction and recycling equipment 31,170,987 32,233,126
Furniture and fixtures 1,258,249 1,482,727
Construction in progress 486,128 143,010
------------ ------------
43,890,060 45,456,735
(17,074,631) (17,251,802)
------------ ------------
Less accumulated depreciation $ 26,815,429 $ 28,204,933
============ ============
</TABLE>
6
<PAGE> 9
KIMMINS ENVIRONMENTAL SERVICE CORP.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
3. PROPERTY AND EQUIPMENT, NET (CONTINUED)
Property and equipment are recorded at cost. Depreciation is provided
using the straight-line method over estimated useful lives ranging
from three to thirty years. Construction in progress will be
depreciated over the estimated useful lives when placed into service.
4. LONG-TERM DEBT
<TABLE>
<CAPTION>
December 31, June 30,
1994 1995
----------- -----------
(unaudited)
<S> <C> <C>
Notes payable, principal and interest payable in
monthly installments through December 1, 1999,
interest at varying rates up to 13 percent,
collateralized by equipment $10,220,373 $12,280,897
Revolving term bank line of credit, $1,290,000
maximum due August 31, 1996, interest at prime plus 1
3/4 percent - -
Bank note payable, varying principal and interest
payments through July 1, 2003, interest at prime plus
1 3/4 percent, collateralized by equipment 5,500,000 4,500,000
Mortgage notes, principal and interest payable in
monthly installments through January 1, 1999, interest
at varying rates up to prime plus 1 3/4 percent,
collateralized by land and buildings 3,679,748 4,037,805
Mortgage notes - $500,000 with related parties
interest payable in quarterly installments at 10
percent, plus a performance based return not to exceed
6 percent, principal due January 9, 1997, collateral-
ized by land and buildings 1,400,000 1,400,000
----------- -----------
20,800,121 22,218,702
Less current portion 6,168,006 5,510,467
----------- -----------
$14,632,115 $16,708,235
=========== ===========
</TABLE>
7
<PAGE> 10
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
RESULTS OF OPERATIONS
COMPARISON OF THREE MONTHS ENDED JUNE 30, 1995 AND 1994
Net revenue for the three months ended June 30, 1995, decreased by 2
percent to $22,893,000 from $23,467,000 for the three months ended June 30,
1994. The decrease is due primarily to a reduction in the Company's industrial
demolition services ($3,485,000 decrease in net revenue) and remediation
services ($1,165,000 decrease in net revenue). The overall decrease offsets
the growth of the Company's solid waste management segment as it expands its
operations in the Florida market ($2,778,000 increase in net revenue) and to
growth of the Company's utility contracting services ($1,777,000) increase in
net revenue).
Outside services, which largely represent subcontractor costs,
decreased, as a percentage of net revenue, to 11 percent for the three months
ended June 30, 1995, from 14 percent for the three months ended June 30, 1994.
The Company will utilize the services of a subcontractor when it determines
that an economic opportunity exists with regards to providing the services
internally.
Cost of revenue earned, as a percentage of net revenue, for the three
months ended June 30, 1995, decreased to 82 percent from 83 percent for the
three months ended June 30, 1994. As a result, the gross margin percentage
increased to 18 percent of net revenue for the three months ended June 30,
1995, from 17 percent for the three months ended June 30, 1994. The gross
profit for the three months ended June 30, 1995, was $4,036,000 compared to
$3,987,000 for the three months ended June 30, 1994. The increase in the
dollar amount and percentage of gross margin is associated primarily with the
Company's solid waste management subsidiary.
During the three months ended June 30, 1995, selling, general and
administrative expenses increased to $3,154,000 (14 percent of net revenue)
from $2,840,000 (12 percent of net revenue) for the three months ended June 30,
1994. The dollar and percentage increases in selling, general, and
administrative expenses are primarily a result of increased overhead costs such
as office salaries and marketing costs incurred to support future growth.
Minority interest in net income of subsidiary was $124,000 for the
three months ended June 30, 1995, compared to $35,000 for the three months
ended June 30, 1994. The minority interest in net income of subsidiary
reflects approximately 26 percent of TransCor's earnings as a result of the
March 25, 1993, initial public offering of TransCor's common stock. The
increase in TransCor's earnings between years is attributable to the higher
profit margins earned on certain solid waste management services.
Net interest expense increased to $331,000 from $256,000 primarily due
to the increase in the amount of interest-bearing debt.
As a result of the foregoing, income before provision for income taxes
for the three months ended June 30, 1995, was $427,000 (2 percent of net
revenue) compared to $856,000 (4 percent of net revenue) during the same period
in 1994.
The Company's effective tax rate was 47.6 percent for the three months
ended June 30, 1995, compared to a tax rate of 39.4 percent for 1994. The
increase in the effective tax rate was due primarily to higher state income
taxes.
As a result of the foregoing, net income for the three months ended
June 30, 1995, was $224,000 (1 percent of net revenue) as compared with
$519,000 (2 percent of net revenue) for the three months ended June 30, 1994.
8
<PAGE> 11
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
RESULTS OF OPERATIONS
COMPARISON OF SIX MONTHS ENDED JUNE 30, 1995 AND 1994
Net revenue for the six months ended June 30, 1995, increased by 4
percent to $43,937,000 from $42,304,000 for the six months ended June 30, 1994.
The increase is due to growth of the Company's utility contracting services
($6,120,000 increase in net revenue) and to the continued growth of the
Company's solid waste management segment as it expands its operations in the
Florida market ($4,921,000 increase in net revenue). This increase offsets a
decrease in the Company's industrial demolition services ($7,181,000 decrease
in net revenue).
Outside services, which largely represent subcontractor costs,
increased, as a percentage of net revenue, to 17 percent for the six months
ended June 30, 1995, from 13 percent for the six months ended June 30, 1994.
The Company will utilize the services of a subcontractor when it determines
that an economic opportunity exists with regards to providing the services
internally.
Cost of revenue earned, as a percentage of net revenue, for the six
months ended June 30, 1995, decreased to 81 percent from 83 percent for the six
months ended June 30, 1994. As a result, the gross margin percentage increased
to 19 percent of net revenue for the first half of 1994 from 17 percent for the
same period in 1993. The gross profit for the six months ended June 30, 1995,
was $8,372,000 compared to $7,101,000 for the six months ended June 30, 1994.
The increase in the dollar amount of gross margin is associated with the
increased revenue volume from the Company's solid waste management segment.
During the six months ended June 30, 1995, selling, general, and
administrative expenses increased to $5,875,000 (13 percent of net revenue)
from $5,198,000 (12 percent of net revenue for the six months ended June 30,
1994. The dollar increase in selling, general, and administrative expenses is
primarily attributable to increased overhead costs, such as office salaries and
marketing costs that are associated with higher levels of operations.
Minority interest in net income of subsidiary was $225,000 for the six
months ended June 30, 1995 compared to $30,000 for the six months ended June
30, 1994. The minority interest in net income of subsidiary reflects
approximately 26 percent of TransCor's earnings as a result of the March 25,
1993, initial public offering of TransCor's common stock.
Net interest expense increased to $674,000 from $407,000 primarily due
to additional borrowings under the Company's revolving term bank line
associated with working capital requirements from increased operating volume.
The Company's income before provision for income taxes for the six
months ended June 30, 1995, was $1,597,000 (4 percent of net revenue) compared
to $1,466,000 (3 percent of net revenue) during the six months ended June 30,
1994.
The Company's effective tax rate was 44.5 percent for the six months
ended June 30, 1995, compared to a tax rate of 38.9 percent for 1994. The
increase in the effective tax rate was due primarily to higher state income
taxes.
As a result of the foregoing, net income for the six months ended June
30, 1995, was $887,000 (2 percent of net revenue) as compared with net income
for the six months ended June 30, 1994, of $896,000 (2 percent of net revenue).
9
<PAGE> 12
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
LIQUIDITY AND CAPITAL RESOURCES
Cash provided by operating activities was $2,786,000 and $1,970,000
during the six months ended June 30, 1995 and 1994, respectively. For the
first six months of 1995, the cash provided by operating activities of
$2,786,000 was due primarily to cash provided by net income plus the effect of
depreciation, net of changes in certain operating assets and liabilities
(primarily other assets and accrued liabilities). For the first six months of
1994, cash provided by operating activities of $1,970,000 was due primarily to
cash provided by net income, plus the effect of depreciation, net of changes in
certain operating assets and liabilities (primarily accounts receivable, costs
and estimated earnings in excess of billings on uncompleted contracts, and
accrued expenses). The Company had cash requirements related to capital
expenditures during the six months ended June 30, 1995 and 1994, of $4,571,000
and $3,235,000, respectively. These expenditures were primarily related to the
acquisition of equipment associated with the Company's solid waste management
segment. At June 30, 1995, the Company has not borrowed any portion of its
term bank line of credit, with $1,290,000 available for future borrowings.
During both the six months ended June 30, 1995 and 1994, the Company's
average contract and trade receivables less retainage were outstanding for 67
days. Management believes that the number of days outstanding for its current
receivables approximates industry norms. A portion of the Company's
contracting operations are subcontracted, and any delay in collections of
receivables relating to primary contracts will usually result in the ability of
the Company to delay payment of offsetting subcontract payables.
On June 30, 1993, Sunshadow Apartments, Ltd., and Summerbreeze
Apartments, Ltd., two Florida real estate limited partnerships (collectively,
the "Apartments"), the Company, Citicorp Real Estate, Inc. ("Citicorp"), and
Francis M. Williams entered into a settlement and note renewal agreement
whereby the Apartments' Chapter 11 bankruptcy filings were voluntarily
dismissed. In accordance with the terms of the settlement agreement,
$3,638,696 of the accounts receivable - affiliates balance recorded by the
Company was converted into a note receivable. The note receivable bears
interest at prime plus 1 3/8 percent, increasing to prime plus 2 percent at
July 1, 1995, with principal and interest payable in monthly installments
through December 31, 1998, and is guaranteed by Mr. Williams. Citicorp also
renewed their mortgage notes with the Apartments through December 31, 1998.
Management of the Company believes that this note receivable balance is fully
collectible since an independent appraisal showed the appraised value of the
properties exceeded all recorded liabilities and all monthly obligations of the
Apartments, including debt, are being met. The Company will also receive
reimbursement for substantially all legal fees and costs incurred related to
this matter.
At December 31, 1994, and June 30, 1995, approximately $4,937,000 and
$4,958,000, respectively, of the combined accounts receivable - affiliates and
the note receivable - affiliate balances are due from affiliates of Mr.
Williams. Amounts due from the Apartments discussed above at December 31,
1994, and June 30, 1995, are approximately $3,588,000 and $3,567,000,
respectively. The accounts receivable - affiliates relate to contract services
performed and are guaranteed by Mr. Williams.
The Company's current bonding coverage for non-environmental projects
is $30,000,000 for an individual project ($100,000,000 aggregate). The Company
has been able to obtain bonding coverage in amounts up to $8,500,000 for
environmental projects. However, the Company has experienced difficulties in
obtaining bonding coverage for environmental projects in excess of this amount.
Although each project has its own distinct and separate bond requirements, the
Company may be unable to competitively bid on environmental projects which
require a bond in excess of $8,500,000.
Inflation has not had, and is not expected to have, a material effect
upon the Company's operations.
10
<PAGE> 13
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
On May 24, 1995, the Annual Meeting of Stockholders of Kimmins
Environmental Service Corp. was held. Stockholders present in
person or by proxy, representing 11,678,063 shares of Common Stock and
6,874,706 shares of Class B Common Stock, voted on the election of the
following three directors of the Company to hold office until the next
Annual Meeting of Stockholders or until their successors have been
duly elected:
Francis M. Williams
George A. Chandler
Michael A. Gold
Item 5. Other information
None
Item 6. Exhibits and reports on Form 8-K
(a) The following document is filed as an exhibit to this
Quarterly Report on Form 10-Q:
27 - Financial Data Schedule (for SEC use only)
(b) No reports on Form 8-K were filed during the quarter for which
this report is filed.
11
<PAGE> 14
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.
KIMMINS ENVIRONMENTAL SERVICE CORP.
Date: August 8, 1995 By: /s/ Francis M. Williams
----------------- -------------------------------------
Francis M. Williams
President and Chief Executive Officer
Date: August 8, 1995 By: /s/ Norman S. Dominiak
----------------- -------------------------------------
Norman S. Dominiak
Chief Financial Officer;
Chief Accounting Officer
12
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-START> JAN-01-1995
<PERIOD-END> JUN-30-1995
<CASH> 433,839
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0
0
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</TABLE>
