U.S. 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: December 31, 1996
[ ] 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: 33-16820-D
TRAVIS INDUSTRIES, INC.
(Exact name of registrant as specified in its charter)
Colorado 84-1063149
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization Identification No.)
3415 W. Broadway, Council Bluffs, IA 51501
(Address of principal executive offices) (Zip Code)
(712) 328-3040
(Registrant's telephone number, including area code)
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject
to such filing requirements for the past 90 days.
[ X ] Yes [ ] No
APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY PROCEEDINGS DURING THE
PRECEDING FIVE YEARS:
Indicate by 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.
[ X ] Yes [ ] No
APPLICABLE ONLY TO CORPORATE ISSUERS:
As of December 31, 1996 Registrant had 121,308,864 shares of common stock,
$0.0001 par value,outstanding.
Transitional Small Business Disclosure Format (check one):
[ ] Yes [ X ] No
<PAGE>
<TABLE>
<CAPTION>
INDEX
Page
Number
<S> <C>
Part I. Financial Information
Item I. Financial Statements
Balance Sheet as of December 31, 1996 2
Statements of Operations, Three Months
Ended December 31, 1996 and 1995 3
Statements of Operations, Nine Months
Ended December 31, 1996 and 1995 4
Statements of Cash Flows, Three Months
Ended December 31, 1996 and 1995 5
Statements of Cash Flows, Nine Months
Ended December 31, 1996 and 1995 6
Notes to Financial Statements 7
Item 2. Management's Discussion and Analysis of
Financial Conditions and Results of Operations 8
Part II. Other Information 9
</TABLE>
1.
<PAGE>
<TABLE> <CAPTION>
TRAVIS INDUSTRIES, INC.
BALANCE SHEET
December 31, 1996
(Unaudited)
<S> <C>
Current Assets
Accounts receivable, net of allowance
for doubtful accounts of $71,706 $ 85,603
___________
Total Current Assets 85,603
Furniture and equipment, net of accumulated
depreciation of $243,175 167,299
Allowance for idle equipment (124,149)
Other assets 12,711
___________
Total Assets $ 141,464
Current Liabilities
Outstanding checks in excess of amounts
reported by banks $ 14,757
Note payable, current portion 10,000
Accounts payable and accrued expenses 127,317
____________
Total Current Liabilities 152,074
Note payable, net of current portion 73,298
Other long-term debt 128,950
------------
Total Liabilities 354,322
Commitments and contingencies (Notes 2) -
Stockholders' Equity:
Redeemable preferred stock - $.0001 par
value 100,000,000 shares authorized:
Series A, none issued and outstanding -
Series B, 28,400,000 shares issued and
outstanding,liquidation amount of $710,000) 710,000
Common stock - $.0001 par value
500,000,000 shares authorized;
121,308,864 shares issued and outstanding 12,131
Additional paid-in capital 5,228,335
Accumulated deficit (6,163,324)
-------------
Total Stockholders' (Deficit) (212,858)
-------------_
Total Liabilities and Stockholders' (Deficit) $ 141,464
The accompanying notes are an integral part of the financial statements.
</TABLE>
2.
<PAGE>
<TABLE>
<CAPTION>
TRAVIS INDUSTRIES, INC.
STATEMENT OF OPERATIONS
For the Three Months Ended December 31,
(Unaudited)
1996 1995
<S> <C> <C>
Sales $ 421,036 $ 591,392
Cost of goods sold (exclusive of
depreciation shown separately
below) 295,649 477,503
--------- --------
Gross Profit 125,387 113,889
Operating Expenses
Depreciation 7,222 13,869
Bad debts - 17,926
Rent 29,215 34,603
Salaries 50,747 63,695
Consulting fees, related
party (2,291) 8,025
Other operating expenses 61,000 56,771
-------- -------
Total Operating Expenses 145,893 194,889
Net Operating (Loss) (20,506) (81,000)
-------- --------
Other Income (Expenses)
Interest and miscellaneous
income (655) 1,186
Interest (expense) (172) (3,542)
Total Other (827) (2,356)
--------- --------
Net (Loss) $ (21,333) $ (83,356)
Net (Loss) per Share $ nil $ nil
----------- -----------
Weighted Average Shares Outstanding 121,308,864 115,973,364
The accompanying notes are an integral part of the financial statements.
</TABLE>
3.
<PAGE>
<TABLE>
<CAPTION>
TRAVIS INDUSTRIES, INC.
STATEMENT OF OPERATIONS
For the Nine Months Ended December 31,
(Unaudited)
1996 1995
<S> <C> <C>
Sales $ 1,289,888 $ 1,438,929
Cost of goods sold (exclusive of
depreciation shown separately
below) 889,743 1,161,823
--------- ---------
Gross Profit 400,145 277,106
Operating Expenses
Depreciation 21,666 41,607
Bad debts - 53,781
Rent 87,648 103,809
Salaries 174,333 191,085
Consulting fees, related
party 2,400 24,075
Other operating expenses 168,306 170,310
--------- --------
Total Operating Expenses 454,353 584,667
Net Operating (Loss) (54,208) (307,561)
_________ ________
Other Income (Expenses)
Interest and miscellaneous
income 26,730 3,558
Interest (expense) (3,079) (10,626)
Total Other 23,651 (7,068)
________ _________
Net (Loss) $ (30,557) $ (314,629)
Net (Loss) per Share $ nil $ nil
-------- -----------
Weighted Average Shares Outstanding 121,308,864 115,743,364
The accompanying notes are an integral part of the financial statements.
</TABLE>
4.
<PAGE>
<TABLE>
<CAPTION>
TRAVIS INDUSTRIES, INC.
STATEMENT OF CASH FLOWS
For the three Months Ended
(Unaudited)
December 31 December 31
1996 1995
<S> <C> <C>
Cash Flows from Operating Activities:
Net income (loss) $ (21,333) $ (83,356)
Adjustments to reconcile net
income (loss) to net cash used
in operating activities
Depreciation 7,222 13,869
Increase in accounts payable,
accrued expenses and other (11,604) (119,285)
(Increase) in accounts
receivable 25,175 (19,045)
-------- ---------
Net Cash Provided by Operating
Activities - (207,817)
-------- ---------
Cash Flows from Investing Activities - -
-------- ---------
Cash Flows from Financing Activities:
Proceeds from the issuance of
common stock - 211,775
Net Cash Provided by Financing
Activities - 211,775
--------- --------
Increase (decrease) in cash - 3,958
Cash, beginning of period - 7,631
--------- ---------
Cash, end of period $ - $ 11,589
--------- ---------
Interest paid $ 172 $ 3,542
--------- ---------
Income taxes paid $ - $ -
--------- ---------
The accompanying notes are an integral part of the financial statements.
</TABLE>
5.
<PAGE>
<TABLE>
<CAPTION>
TRAVIS INDUSTRIES, INC.
STATEMENT OF CASH FLOWS
For the Nine Months Ended
(Unaudited)
December 31 December 31
1996 1995
<S> <C> <C>
Cash Flows from Operating Activities:
Net income (loss) $ (30,557) $ (314,629)
Adjustments to reconcile net
income (loss) to net cash used
in operating activities
Depreciation 21,666 41,607
Increase in accounts payable,
accrued expenses and other (9,578) 101,968
(Increase) in accounts
receivable 18,469 (57,136)
---------- --------
Net Cash Provided by Operating
Activities - (228,190)
---------- --------
Cash Flows from Investing Activities - -
---------- --------
Cash Flows from Financing Activities:
Proceeds from the issuance of
common stock - 223,275
---------- --------
Net Cash Provided by Financing
Activities - 223,275
---------- --------
Increase (decrease) in cash - (4,915)
Cash, beginning of period - 16,504
---------- --------
Cash, end of period $ - $ 11,589
---------- --------
Interest paid $ 3,079 $ 10,626
---------- --------
Income taxes paid $ - $ -
---------- --------
The accompanying notes are an integral part of the financial statements.
</TABLE>
6.
<PAGE>
TRAVIS INDUSTRIES, INC.
NOTES TO FINANCIAL STATEMENTS
December 31, 1996 (Unaudited)
(1) Condensed Financial Statements
The financial statements included herein have been prepared by Travis
Industries, Inc. without audit, pursuant to the rules and regulations of the
Securities and Exchange Commission. Certain information and footnote
disclosures normally included in the financial statements prepared in accordance
with generally accepted accounting principles have been condensed or omitted as
allowed by such rules and regulations, and management believes that the
disclosures are adequate to make the information presented not misleading.
The management of Travis Industries, Inc. believes that the accompanying
unaudited condensed financial statements contain all adjustments (including
normal recurring adjustments) necessary to present fairly the operations and
cash flows for the periods presented.
(2) Basis of Presentation - Going Concern
The accompanying financial statements have been prepared in conformity with
generally accepted accounting principles, which contemplates continuation of the
Company as a going concern. However, the Company has sustained recurring
operating losses, has a net capital deficiency, and is delinquent on payment
of payroll taxes and creditor liabilities pursuant to the plan of
reorganization. Management is attempting to raise additional capital and looking
for a business combination.
In view of theses matters, realization of certain of the assets in the
accompanying balance sheet is dependent upon continued operations of the
Company, which in turn is dependent upon the Company's ability to meet its
financing requirements, raise additional capital, and the success of its future
operations. Management believes that actions planned and presently being taken
to revise the Company's operating and financial requirements provide the
opportunity for the Company to continue as a going concern.
7.
<PAGE>
Item - 2 Management's Discussion and Analysis of Financial Condition and
Results of Operations.
Travis Industries, Inc. (the "Company") was organized as a Colorado corporation
on June 21, 1987. The Company is in the business of printing advertising
materials and coupons and mailing them to its customers. During 1995, the
Company filed a plan of reorganization which was approved by the United States
Bankruptcy Court.
The Company generated operating revenues of approximately $421,036 and $591,392
with cost of goods sold of approximately $295,649 and $477,503 during the
quarter ended December 31, 1996 and 1995, respectively, and incurred operating
expense of approximately $145,893 and $194,889, respectively.
The Company had liabilities in excess of assets at December 31, 1996 of
$212,858. At December 31, 1996, the Company had no material commitments for
capital expenditures.
8.
<PAGE>
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>
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.
Travis Industries, Inc.
/s/ Stephen E. Cayou
________________________________
Date: February 18, 1997 By: STEPHEN E. CAYOU
President, Chief Executive Officer, and Director
/s/ Jeffrey R. Skinner
________________________________
Date: February 18, 1997 By: JEFFREY R. SKINNER
Chief Financial Officer,Secretary, Treasurer and Director
10
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> MAR-31-1997
<PERIOD-END> DEC-31-1996
<CASH> 0
<SECURITIES> 0
<RECEIVABLES> 157,309
<ALLOWANCES> 71,706
<INVENTORY> 0
<CURRENT-ASSETS> 85,603
<PP&E> 410,474
<DEPRECIATION> 243,175
<TOTAL-ASSETS> 141,464
<CURRENT-LIABILITIES> 152,074
<BONDS> 0
0
710,000
<COMMON> 12,131
<OTHER-SE> 934,989
<TOTAL-LIABILITY-AND-EQUITY> 141,464
<SALES> 421,036
<TOTAL-REVENUES> 420,381
<CGS> 295,649
<TOTAL-COSTS> 441,542
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 172
<INCOME-PRETAX> (21,333)
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (21,333)
<EPS-PRIMARY> .00
<EPS-DILUTED> .00
