FORM 10-QSB - Quarterly Report Under Section 13 or 15(d)
of the Securities Exchange Act of 1934
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 period ended September 30, 1996
------------------
or
[ ] Transition Report Pursuance 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
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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)
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:
Indicated 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.
[ ] Yes [ X ] No
APPLICABLE ONLY TO CORPORATE ISSUERS:
As of September 30, 1996, Registrant had 121,308,864 shares of common stock,
no par value, outstanding.
INDEX
Page
Number
- ------
Part I. Financial Information
Item I. Financial Statements
Balance Sheet as of September 30, 1996 2
Statement of Operations, Three Months
Ended September 30, 1996 and 1995 3
Statement of Operations, Six Months
Ended September 30, 1996 and 1995 4
Statement of Cash Flows, Three Months
Ended September 30, 1996 and 1995 5
Statement of Cash Flows, Six Months
Ended September 30, 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
TRAVIS INDUSTRIES, INC.
------------------------
BALANCE SHEET
September 30, 1996
(Unaudited)
Current Assets
Accounts receivable, net of allowance for
doubtful accounts of $71,706 $ 110,778
-------------
Total Current Assets 110,778
Furniture and equipment, net of accumulated
depreciation of $235,953 177,521
Allowance for idle equipment (124,149)
Other assets 15,406
-------------
Total Assets $ 179,556
=============
Current Liabilities
Outstanding checks in excess of amounts
reported by banks $ 32,627
Note payable, current portion 10,000
Accounts payable and accrued expenses 132,067
Total Current Liabilities 174,694
Note payable, net of current portion 75,341
Other long-term debt 111,047
Total Liabilities 361,082
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 5,238,335
Accumulated deficit (6,141,992)
Total Stockholders' (Deficit) (181,526)
Total Liabilities and Stockholders' (Deficit) $ 179,556
The accompanying notes are an integral part of the financial statements.
TRAVIS INDUSTRIES, INC.
------------------------
STATEMENT OF OPERATIONS
For the Three Months Ended September 30
(Unaudited)
1996 1995
-------------- --------------
Sales $ 425,968 $ 401,167
Cost of goods sold (exclusive
of depreciation shown
separately below) 271,204 323,911
-------------- --------------
Gross Profit 154,764 77,256
-------------- --------------
Operating Expenses
Depreciation 7,222 13,869
Bad debts - 17,926
Rent 29,217 34,603
Salaries 58,331 63,695
Consulting fees, related
party 3,691 8,025
Other operating expenses 61,519 56,771
-------------- --------------
Total Operating Expenses 159,980 194,889
-------------- --------------
Net Operating (Loss) (5,216) (117,633)
-------------- --------------
Other Income (Expenses)
Interest and miscellaneous
income 18,227 1,186
Interest (expense) (2,907) (3,542)
Total Other 15,320 (2,356)
-------------- ---------------
Net Income $ 10,104 (119,989)
============== ===============
Net Income per Share $ nil $ nil
============== ===============
Weighted Average Shares
Outstanding 121,308,864 111,507,864
============== ==============
The accompanying notes are an integral part of the financial statements.
TRAVIS INDUSTRIES, INC.
-----------------------
STATEMENT OF OPERATIONS
For the Six Months Ended September 30
(Unaudited)
1996 1995
-------------- --------------
Sales $ 868,852 $ 847,537
Cost of goods sold (exclusive
of depreciation shown
separately below) 594,094 684,320
-------------- ---------------
Gross Profit 274,758 163,217
Operating Expenses
Depreciation 14,444 27,738
Bad debts - 35,854
Rent 58,433 69,206
Salaries 123,586 127,390
Consulting fees, related
party 4,691 16,050
Other operating expenses 107,306 113,540
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Total Operating Expenses 308,460 389,778
------------- ------------
Net Operating (Loss) (33,702) (226,561)
------------- ------------
Other Income (Expenses)
Interest and miscellaneous
income 27,385 2,372
Interest (expense) (2,907) (7,084)
------------- ------------
Total Other 24,478 (4,712)
------------- ------------
Net (Loss) $ (9,224) (231,273)
============= ============
Net (Loss) per Share $ nil $ nil
============= ============
Weighted Average Shares
Outstanding 121,308,864 111,507,864
The accompanying notes are an integral part of the financial statements.
TRAVIS INDUSTRIES, INC.
------------------------
STATEMENT OF CASH FLOWS
For the Three Months Ended September 30
(Unaudited)
1996 1995
-------------- --------------
Cash Flows from Operating
Activities:
Net income (loss) $ 10,104 $ (119,989)
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 12,596 67,701
(Increase) in accounts
receivable (29,922) (10,954)
-------------- --------------
Net Cash (Used in) Operating
Activities - (49,373)
-------------- --------------
Cash Flows from Investing
Activities - -
-------------- --------------
Cash Flows from Financing
Activities:
Proceeds from the issuance of
common stock - 11,500
-------------- --------------
Net Cash Provided by Financing
Activities - 11,500
-------------- --------------
(Decrease) in cash - (37,873)
Cash, beginning of year - 45,504
-------------- --------------
Cash, end of year $ - $ 7,631
============== ==============
Interest paid $ - $ 3,542
============== ==============
Income taxes paid $ - $ -
============== ==============
The accompanying notes are an integral part of the financial statements.
TRAVIS INDUSTRIES, INC.
STATEMENT OF CASH FLOWS
For the Six Months Ended September 30
(Unaudited)
1996 1995
-------------- --------------
Cash Flows from Operating
Activities:
Net (loss) $ (9,224) $ (231,273)
Adjustments to reconcile net
income (loss) to net cash
used in operating activities
Depreciation 14,444 27,738
Increase in accounts payable,
accrued expenses and other 1,486 205,070
(Increase) in accounts
receivable (6,706) (21,908)
-------------- -------------
Net Cash (Used in) Operating
Activities - (20,373)
-------------- -------------
Cash Flows from Investing
Activities - -
-------------- -------------
Cash Flows from Financing
Activities:
Proceeds from the issuance
of common stock - 11,500
-------------- -------------
Net Cash Provided by Financing
Activities - 11,500
-------------- -------------
(Decrease) in cash - (8,873)
Cash, beginning of year - 16,504
-------------- -------------
Cash, end of year $ - $ 7,631
============== =============
Interest paid $ - $ 7,084
============== =============
Income taxes paid $ - $ -
============== =============
The accompanying notes are an integral part of the financial statements.
TRAVIS INDUSTRIES, INC.
NOTES TO FINANCIAL STATEMENTS
September 30, 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.
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 $425,968 and
$401,167 with cost of goods sold of approximately $271,204 and $323,911 during
the quarter ended September 30, 1996 and 1995 respectively, and incurred
operating expenses of approximately $159,980 and $194,889, respectively.
The Company had liabilities in excess of assets at September 30, 1996 and 1995
of $181,526 and $226,580, respectively.
At September 30, 1996, the Company had no material commitments for capital
expenditures.<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.
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.
Date JANUARY 14, 1997 By: STEPHEN E. CAYOU
------------------ --------------------------
Stephen E. Cayou, President,
Chief Executive Officer, and Director
Date JANUARY 14, 1997 By JEFFREY R. SKINNER
------------------ --------------------------
Jeffrey R. Skinner, Chief Financial Officer
Secretary, Treasurer and Director
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> MAR-31-1997
<PERIOD-END> SEP-30-1996
<CASH> 0
<SECURITIES> 0
<RECEIVABLES> 182,484
<ALLOWANCES> 71,706
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 289,325
<DEPRECIATION> 235,953
<TOTAL-ASSETS> 179,556
<CURRENT-LIABILITIES> 174,694
<BONDS> 0
0
710,000
<COMMON> 12,131
<OTHER-SE> (903,657)
<TOTAL-LIABILITY-AND-EQUITY> 179,556
<SALES> 425,968
<TOTAL-REVENUES> 444,195
<CGS> 271,204
<TOTAL-COSTS> 431,184
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 2,907
<INCOME-PRETAX> 10,104
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 10,104
<EPS-PRIMARY> .00
<EPS-DILUTED> .00
</TABLE>
