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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549-1004
FORM 10-Q - AMENDED
Quarterly Report Pursuant to Section 13 or 15 (d) of the Securities Exchange
Act of 1934
For the Quarterly Period Ended September 30, 1998
Commission File Number 0-7205
HOLIDAY-GULF HOMES, INC.
(Exact name of registrant as specified in its charter)
Minnesota 41-0916277
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
4804 Mile Stretch Drive, Holiday, Florida 34690
(Address of principal executive office) (Zip Code)
Registrant's telephone number, including area code (813) 937-3293
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
Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of September 30, 1998.
Common Stock, $.01 Par Value - 1,903,853 shares as of September 30, 1998.
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HOLIDAY-GULF HOMES, INC. AND SUBSIDIARIES
Item 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations:
RESULTS OF OPERATIONS:
Utility operating revenues increased 2.83% in the third quarter of 1998
to $72,104 up $1,990 over the third quarter of 1997. For the first nine
months utility operating revenues of $211,447 were $617 or .29% higher than
the same period in 1997. The increase in revenues for the third quarter and
year to date, are due primarily to a increase in water, garbage and
streetlight usage.
The gross profit percentage for the third quarter of 1998 compared to
the same period of the prior year is due to the stability in the number of
customers. However, the year to date gross profit percentage increased by
1.84% to 53.92% compared to 52.08% for the three quarters ended September 30,
1997. This increase was a result of Management's renegotiation of the
Company's garbage collection contract.
General and administrative expenses have remained stable, due to
management controlling costs, as a percentage of utility revenues. General and
administrative expenses as a percentage of utility revenues were approximately
26.72% and 31.25% for the three and nine month periods ended September 30,
1998 as compared to 27.38% and 31.62% for the comparable periods of 1997.
Income from other operations decreased 8.58% in the third quarter of
1998 to $10,412, down $978 over the third quarter of 1997. For the first nine
months income from other operations of $31,983 was $11,390, or 3.15% higher
than the same period in 1997. The increase in revenues is due primarily to
an increase in rental income.
General and administrative expenses from other operations have
increased as a percentage of income from other operations due to office
complex warehouse expenses for repairs and maintenance and electric. General
and administrative expenses from other operations as a percentage of income
from other operations were approximately 81.03% and 82.80% for the three and
nine month periods ended September 30, 1998 as compared to 68.58% and 75.36%
for the comparable periods of 1997.
Net income decreased 5.75% in the third quarter of 1998 to $13,809
down $843, over the third quarter of 1997. For the first nine months, net
income of $36,168 was $2,289 or 6.76% higher than the same period in 1997. The
decrease in net income in the third quarter was due primarily to the increase
in general and administrative expenses of the non-utility operations. The
increase in net income for the nine months is primarily attributable to the
increase in gross profit resulting from the renegotiated garbage contract
described above.
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HOLIDAY-GULF HOMES, INC. AND SUBSIDIARIES
Item 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations: (Continued)
LIQUIDITY AND SOURCES OF CAPITAL:
The Company does not anticipate any material capital expenditures in
the near future for the utility companies, therefore, there should not be any
liquidity problem.
OTHER MATTERS:
The Y2K Issue
The Company is currently reviewing the risk of potential interruptions
that may occur from the year 2000 (Y2K) issue. The Company does not anticipate
any major implications. The vendors the Company deals with have indicated to
management they will be ready for the year 2000. The Company is still
reviewing their compliance with the year 2000, and anticipates everything to
be in place by September, 1999.
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SIGNATURES
HOLIDAY-GULF HOMES, INC. AND SUBSIDIARIES
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.
HOLIDAY-GULF HOMES, INC.
(Registrant)
DATE: March 19, 1999 _________________________________
LINDA EMERICK, PRESIDENT -
PRINCIPAL FINANCIAL OFFICER
