U.S. Securities and Exchange Commission
Washington, D.C. 20549
Form 10-QSB
(Mark One)
(X) QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarterly period year ended May 31, 1996
( ) TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1943 (No Fee Required)
For the transition period from _________________ to
_________________
Commission File number 33-18174-D
CHARTWELL CABLE FUND, INC.
- -----------------------------------------------------------------------
(Name of small business issuer in its charter)
Colorado 84-1067172
- ------------------------------- -----------------------------------
(State or other jurisdiction of (I.R.S. Employer Identification No.)
incorporation or organization)
20 Chase Street, Lakewood, Colorado 80226
-----------------------------------------
(Address of principal executive offices)
303/592-7077
-------------------------
Issuer's telephone number
Check whether the issuer (1) filed all reports 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
----- -----
State the number of shares outstanding of each of the issuer's classes
of common equity as of the latest practicable date.
500,000 shares of common stock were outstanding as of May 31, 1997.
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<PAGE>
PART I
Item 1. Financial Statements
- ------- --------------------
See pages beginning F-1 attached hereto. These unaudited financial
statements include all adjustments which in the opinion of management are
necessary in order to make the financial statements not misleading.
Item 2. Management Discussion and Analysis of Financial Condition
- ------- ---------------------------------------------------------
and Results of Operation.
- -------------------------
As this report is being filed subsequent to the 10KSB for the year
ended August 31, 1996 of which this report covers the first quarter of such
year, please refer to such filing.
PART II
Item 1. Legal Proceedings: None
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Item 2. Charge in Securities: None
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Item 3. Defaults on Senior Securities: None
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Item 4. Submission of Matters to a Vote of Security Holders: None
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Item 5. Other Information: None
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<PAGE>
CHARTWELL CABLE FUND, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
31-MAY-96 31-AUG-95
--------- ---------
ASSETS
Current Assets
- --------------
Cash $ 331 $ 169,776
Accounts receivable other 6,317 25,023
Accounts receivable, related parties 182,000 5,000
---------- ----------
Total Current Assets 188,648 199,799
Property and equipment, net of
accumulated depreciation 109 434
---------- ----------
109 434
Total Assets $ 188,757 $ 200,233
========== ==========
LIABILITIES AND STOCKHOLDERS EQUITY
Current Liabilities
- -------------------
Accounts payable $ 2,599 $ 555
Accounts payable, related parties 30,000 30,000
---------- ----------
Total Current Liabilities 32,599 30,555
Minority interest in
consolidated subsidiary 35,824 36,721
Stockholders' Equity
- --------------------
Preferred stock, $.10 par value,
10,000 shares authorized,
none issued and outstanding - -
Common stock, $.10 par value,
2,000,000 shares
authorized, 865,664 shares
issued and outstanding 86,566 86,566
Additional paid-in capital 1,574,447 1,574,447
Accumulated (deficit) (1,540,680) (1,528,056)
---------- ----------
Total Stockholders' Equity 120,333 132,957
---------- ----------
$ 188,756 $ 200,233
========== ==========
SEE ACCOMPANYING NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
F1
<PAGE>
CHARTWELL CABLE FUND, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
<TABLE>
<CAPTION>
THREE MONTHS ENDED NINE MONTHS ENDED
---------------------- ----------------------
31-MAY-96 31-MAY-95 31-MAY-96 31-MAY-95
--------- --------- --------- ---------
<S> <C> <C> <C> <C>
Revenue
- -------
Interest income $ 3,192 $ - $ 8,410 $ -
Expenses
- --------
General and administrative 6,211 20,814 21,603 96,522
Operating expenses 109 4,652 327 11,547
---------- ---------- ---------- ----------
6,320 25,466 21,930 108,069
Operating Income (Loss) (3,128) (25,466) (13,520) (108,069)
Other Income (Expense)
- ----------------------
Minority interest in loss of
consolidated subsidiary 100 1,502 896 5,315
---------- ---------- ---------- ----------
Income (Loss) Continuing
Operations (3,028) (23,964) (12,624) (102,754)
Discontinued Operations
- -----------------------
Income (loss) cable and golf - (9,882) - (89,227)
Gain on sale of assets, net - - - 99,036
---------- ---------- ---------- ----------
Income (Loss) From
Discontinued Operations - (9,882) - 9,809
Net Income (Loss) $ (3,028) $ (33,846) $ (12,624) $ (92,945)
========== ========== ========== ==========
Net Income (Loss) Per Share Of
- ------------------------------
Common Stock
- ------------
Continuing operations $ 0.00 $ (0.03) $ (0.01) $ (0.12)
Discontinued operations - (0.01) - 0.01
---------- ---------- ---------- ----------
Net Gain (Loss) Per
Common Share $ 0.00 $ (0.04) $ (0.01) $ (0.11)
========== ========== ========== ==========
Weighted average number of
common shares during the
period 865,664 865,664 865,664 864,664
========== ========== ========== ==========
</TABLE>
SEE ACCOMPANYING NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
F2
<PAGE>
CHARTWELL CABLE FUND, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF CASH FLOWS
NINE MONTHS ENDED
-------------------------
31-MAY-96 31-MAY-95
--------- ---------
Cash Flows From Operating Activities
- ------------------------------------
Net income (loss) $ (12,624) $ (92,945)
Items Not Requiring Cash
- ------------------------
Depreciation and amortization 327 956
Minority interest in loss (896) (5,315)
Discontinued Business
- ---------------------
Gain on sale of discontinued business - 94,746
Decrease (increase) in accounts
receivable, accrued interest
receivable and prepaids (158,296) (24,101)
Decrease (increase) in inventory - 64,282
Increase (decrease) in accounts
payable and accrued expenses 2,044 (79,467)
---------- ----------
Net Cash Used by Operating
Activities (169,445) (41,844)
---------- ----------
Cash Flows From Investing Activities
- ------------------------------------
Proceeds from sale of discontinued
business - 826,000
Cash used by discontinued businesses - (279,838)
---------- ----------
Net cash provided (used) by
investing activities - 546,162
Cash Flows From Financing Activities
- ------------------------------------
Debt repayment by discontinued
business - (337,132)
Advances from notes payable,
related parties - -
---------- ----------
Net Cash Provided (Used) By
Financing Activities - (337,132)
Net Increase In Cash At
End of Period $ (169,445) $ 167,186
========== ==========
Supplemental Disclosures Of Cash
- --------------------------------
Flow Information
- ----------------
Interest received $ 45 $ 4,000
Interest paid - 18,572
SEE ACCOMPANYING NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
F3
<PAGE>
CHARTWELL CABLE FUND, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
May 31, 1996
1. BASIS OF PRESENTATION AND ORGANIZATION
--------------------------------------
The consolidated balance sheet as of May 31, 1996, the consolidated
statements of operations and the consolidated statements of cash flows for
the three months ended May 31, 1996 and 1995, have been prepared by the
Company. In the opinion of management, all adjustments (which include
normal recurring adjustments) necessary to present fairly the financial
position, results of operations and changes in cash flows at May 31, 1996,
and for all periods presented have been made.
Certain information and footnote disclosures normally included in financial
statements prepared in accordance with generally accepted accounting
principles have been condensed or omitted. It is recommended that these
consolidated financial statements be read in conjunction with the financial
statements and notes thereto included in the Company's August 31, 1996 Form
10KSB annual report. The results of operations for the three months ending
May 31, 1996 and 1995 are not necessarily indicative of the operating
results for the full year.
2. PRINCIPLES OF CONSOLIDATION
---------------------------
The consolidated financial statements of the Company at May 31, 1996 and
1995, and for the three months then ended, include the Cable of Colorado,
Inc., which was incorporated on September 2, 1998, and its 100% owned
subsidiary Chartwell Products, Inc., which was incorporated on November 8,
1993. All material intercompany balances and transactions have been
eliminated.
<PAGE>
SIGNATURES
Pursuant to the requirement of the Securities Exchange Act of 1934, the
registratnt has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
CHARTWELL CABLE FUND, INC.
(Registrant)
By: /s/ A. CLINTON OBER
-------------------------------
A. Clinton Ober, President
and Chief Financial Officer
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM
FINANCIAL STATEMENTS FOR PERIOD ENDED MAY 31, 1996.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> AUG-31-1996
<PERIOD-START> SEP-01-1995
<PERIOD-END> MAY-31-1996
<CASH> 331
<SECURITIES> 0
<RECEIVABLES> 188,317
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 109
<DEPRECIATION> 0
<TOTAL-ASSETS> 188,757
<CURRENT-LIABILITIES> 32,599
<BONDS> 0
0
0
<COMMON> 86,566
<OTHER-SE> 33,767
<TOTAL-LIABILITY-AND-EQUITY> 188,757
<SALES> 0
<TOTAL-REVENUES> 8,410
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 21,034
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> (12,624)
<INCOME-TAX> 0
<INCOME-CONTINUING> (12,624)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (12,624)
<EPS-PRIMARY> (0.01)
<EPS-DILUTED> 0
</TABLE>
