FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
(X) QUARTERLY REPORT UNDER SECTION 13 OR 15 (d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For Quarterly Period Ended March 31, 1996
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. 0-17757
W-W CAPITAL CORPORATION
(exact name of Registrant as specified in its charter)
Nevada 93-0967457
(State or other jurisdiction of (IRS Employer Identi-
incorporation or organization) fication Number)
11990 Grant Street, Suite 400, Northglenn, CO 80233
(Address of principal executive offices, including zip code)
(303) 452-5000
(Registrant's telephone number, including area code)
Not Applicable
(Former name, 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 the 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 check mark whether 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 NOT APPLICABLE x
APPLICABLE ONLY TO CORPORATE ISSUERS:
Indicate the number of shares outstanding of each of the issuer's
classes of common stock, as of the latest practicable date.
Title of Each Class Number of Shares
Outstanding
Common stock at May 16, 1996
$0.01 Par Value 5,530,661 <PAGE>
W-W CAPITAL CORPORATION
Index
PART I FINANCIAL INFORMATION PAGE NO.
Item 1 Balance Sheets
March 31, 1996 and June 30, 1995 1
Statements of Operations
Three and Nine Months Ended
March 31, 1996 and 1995 3
Statements of Cash Flows
Nine Months Ended
March 31, 1996 and 1995 4
Notes to Financial Statements 6
Item 2 Management's Discussion and Analysis
of Financial Condition and Results
of Operations 7
PART II OTHER INFORMATION
Item 1 LEGAL PROCEEDINGS 12
Item 2 CHANGES IN SECURITIES 12
Item 3 DEFAULTS UPON SENIOR SECURITIES 12
Item 4 SUBMISSION OF MATTERS TO VOTE OF
SECURITY HOLDERS 12
Item 5 OTHER INFORMATION 12
Item 6 EXHIBITS AND REPORT ON FORM 8-K 12
SIGNATURES 13
EXHIBIT 27 14<PAGE>
Part 1-FINANCIAL INFORMATION
ITEM 1 - FINANCIAL STATEMENTS
W-W CAPITAL CORPORATION
Balance Sheet
<TABLE>
<CAPTION>
March 31, June 30,
1996 1995
(Unaudited)
<S> <C> <C>
Assets
Current assets:
Cash $ 73,087 $ 124,458
Trade accounts receivable 2,035,200 1,913,949
Less allowance for doubtful
accounts ( 142,008) ( 197,008)
Net accounts receivable 1,893,192 1,716,941
Accounts receivable, other 12,215 18,574
Accounts receivable, employee 6,050 6,946
Accounts receivable, related party 130,295 100,114
Inventories:
Raw materials 388,151 417,094
Work-in-process 158,706 206,817
Finished goods 2,777,776 2,827,991
Total inventories 3,324,633 3,451,902
Deferred taxes 119,303 118,350
Prepaid expenses 35,962 72,961
Current portion of notes
receivable 166,767 48,310
Total current assets 5,761,504 5,658,556
Property and equipment, at cost 4,459,230 4,327,267
Less accumulated depreciation
and amortization ( 1,832,257) ( 1,525,737)
Net property and equipment 2,626,973 2,801,530
Other Assets:
Long-term notes receivable
from stockholders, net of
current portion 18,126 34,869
Long-term notes receivable from
affiliated entities,
net of current portion 23,374 23,027
Real Estate held for resale 379,094 373,960
Accounts and notes receivable,
other 19,642 539,151
Covenant not to compete, net of
accumulated amortization 14,790 35,268
Other assets 85,980 81,156
Total other assets 541,006 1,087,431
TOTAL ASSETS $ 8,929,483 $ 9,547,517
</TABLE>
Continued on following page
See accompanying notes to financial statements.
W-W CAPITAL CORPORATION
Balance Sheet, Continued
<TABLE>
<CAPTION>
March 31, June 30,
1996 1995
(Unaudited)
<S> <C> <C>
Liabilities
Current Liabilities:
Accounts Payable $ 2,218,918 $ 2,143,658
Revolving credit note
payable to Bank 1,680,000 1,662,613
Accrued property taxes 31,337 31,892
Accrued payroll and related taxes 129,792 128,317
Accrued interest payable 25,579 30,656
Accrued commissions 166,240 165,327
Current portion of long-term
payables 292,567 354,710
Current portion of notes payable
to related parties 33,732 35,125
Other current liabilities 17,906 22,450
Total current liabilities 4,596,071 4,574,748
Other Liabilities:
Long-term note payable to
financial institutions net
of current portion 1,564,634 1,692,624
Deferred taxes 76,007 102,585
Other Long-term liabilities 14,896 35,521
Total other Liabilities 1,655,537 1,830,730
TOTAL LIABILITIES 6,251,608 6,405,478
Stockholders' Equity
Common stock: $.01 par value
15,000,000 shares authorized
5,530,661 shares issued and
outstanding at March 31,
1996, and June 30, 1995,
respectively 55,306 55,306
Capital in excess of par value 3,304,099 3,304,099
Accumulated Deficit ( 662,624) ( 198,460)
2,696,781 3,160,945
Less 20,264 shares of treasury
stock at cost ( 18,906) ( 18,906)
TOTAL STOCKHOLDERS' EQUITY 2,677,875 3,142,039
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $ 8,929,483 $ 9,547,517
</TABLE>
See accompanying notes to financial statements.
W-W CAPITAL CORPORATION
Statements of Operations
(Unaudited)
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
March 31, March 31,
1996 1995 1996 1995
<S> <C> <C> <C> <C>
Net Sales $ 3,362,289 $ 3,770,827 $ 10,956,015 $ 12,036,624
Cost of goods sold 2,938,830 3,120,335 9,123,620 9,755,006
Gross profit 423,459 650,492 1,832,395 2,281,618
Operating expenses:
Selling expenses 326,062 330,547 1,021,299 937,069
General and adminis-
trative expenses 322,855 397,749 1,097,415 1,170,239
Total operating
expenses 648,947 728,296 2,118,714 2,107,308
Operating earnings (loss) ( 225,488) ( 77,804) ( 286,319) 174,310
Other income (expense):
Interest income 15,119 41,357 83,552 97,015
Interest expense ( 95,871) (91,090) (301,675) (279,922)
Gain on sale of assets - (1,213) 1,000 1,787
(Loss) on sale of real
estate held for sale - - - ( 195,598)
Other income (expense),
net 5,172 49,390 14,350 81,443
Total other income
(expense) ( 75,580) ( 1,556) ( 202,773) ( 295,275)
Earnings (Loss) before
income taxes ( 301,068) ( 79,360) ( 489,092) ( 120,965)
Provision for deferred
income taxes - 8,155 ( 24,928) ( 14,473)
Net earnings (loss) ( 301,068) ( 71,205) ( 464,164) ( 135,438)
Earnings (Loss) per
common share: ( .05) ( .01) ( .08) ( .02)
Weighted average number of
common shares outstanding 5,530,661 5,446,224 5,530,661 5,432,596
</TABLE>
See accompanying notes to financial statements.<PAGE>
W-W CAPITAL CORPORATION
Statement of Cash Flows
(Unaudited)
<TABLE>
<CAPTION>
Nine Months Ended
March 31,
________________________________________________
1996 1995
<S> <C> <C>
Cash flows from operating activities:
Net (loss) earnings $ ( 464,164 ) $ ( 135,438 )
Adjustments to reconcile net
earnings to net cash provided
by (used in) operating activities:
Depreciation and amortization 322,132 313,804
Loss (Gain) on property
and equipment 1,000 193,811
Provisions for loss on accounts
and notes receivable ( 55,000 ) 35,350
Interest income added to notes
receivable - affiliates ( 347 ) -
Deferred income taxes ( 24,626 ) 22,628
Changes in assets and liabilities:
Accounts receivable ( 223,031 ) ( 243,531 )
Inventories 127,269 ( 149,699 )
Other current and non-current assets 11,699 ( 10,088 )
Accounts payable 75,260 ( 84,262 )
Accrued expenses
and other current liabilities ( 7,789 ) ( 141,052 )
Net cash (used in) provided
by operating activities ( 237,597 ) ( 29,953 )
Cash flows from investing activities:
Proceeds from sale of property
and equipment 1,000 -
Increase in real estate held for sale ( 5,134 ) 374,606
Purchase of property and equipment ( 130,935 ) ( 685,625 )
Increase in other notes receivable - ( 35,497 )
Proceeds from other notes receivable 479,704 4,660
Proceeds from stockholders'
notes receivable 15,790 14,227
Net cash (used in) provided by
investing activities 360,425 ( 327,629 )
</TABLE>
(Continued on following page)
W-W CAPITAL CORPORATION
Statement of Cash Flows, Continued
(Unaudited)
<TABLE>
<CAPTION>
Nine Months Ended
March 31,
1996 1995
<S> <C> <C>
Cash flows from financing activities:
Proceeds from lines of credit $ 349,000 $ 30,000
Payments on notes payable to financial
institutions and government entities ( 621,170 ) ( 231,632 )
Payments on notes payable to affiliates ( 1,393 ) ( 7,266 )
Proceeds from notes payable 99,364 638,544
Net cash provided by (used in)
financing activities ( 174,199 ) 429,646
Net (decrease) increase in cash ( 51,371 ) 72,064
Cash at beginning of period 124,458 52,944
Cash at end of period $ 73,087 $ 125,008
Supplement schedule of non cash
investing and financing activities
Converted accounts receivable
and related note receivable into
new secured note $ 150,000 $ -
Sold investment in real estate
held for sale:
Pay-off of Bank Debt $ - $ 241,170
Mortgage receivable $ - $ 440,219
Supplemental disclosures of cash flow
information:
Cash paid during the period
for interest $ 306,752 $ 279,922
</TABLE>
See accompanying notes to financial statements.
W-W CAPITAL CORPORATION
NOTES TO FINANCIAL STATEMENTS
NOTE 1 - BASIS OF PRESENTATION
The accompanying unaudited financial statements include the
accounts of W W Capital Corporation (the Company) and its three
wholly-owned subsidiaries W-W Manufacturing Co., Inc., Titan
Industries, Inc., and Eagle Enterprises, Inc. All significant
intercompany accounts and transactions have been eliminated.
The accompanying unaudited financial statements have been
prepared in accordance with generally accepted accounting
principles for interim financial information and with the
instructions to Form 10-Q and Rule 10-01 of Regulation S-X. They
do not include all information and footnotes necessary for a fair
presentation of financial position, results of operations and
changes in cash flows in conformity with generally accepted
accounting principles for full-year financial statements.
However, except as disclosed herein, there has been no material
change in the information disclosed in the notes to W W Capital
Corporation's financial statements included in its Annual Report
on Form 10-K for the year ended June 30, 1995. In the opinion of
management, all adjustments (consisting of normal recurring
accrual basis adjustments) considered necessary for a fair
presentation have been reflected in the accompanying financial
statements. Operating results for the three and nine month
period ended March 31, 1996, are not necessarily indicative of
the result that may be expected for the year ended June 30, 1996.
NOTE 2 - NET EARNINGS PER SHARE
The net earnings (loss) per share amount included in the
accompanying statement of operations have been computed using the
weighted average number of shares of common stock outstanding and
the dilutive effect, if any, of common stock equivalents existing
during the applicable three and nine month periods.
NOTE 3 - RELATED PARTY TRANSACTION
The Company has a number of related party transactions. See
the footnotes to W W Capital Corporation financial statements for
the year ended June 30, 1995, included in its Annual Report on
Form 10-K for the nature and type of related party transactions.
The related party transactions include sales commission paid
to Agri-Sales Associates which had entered into a sales and
marketing agreement with the Company. The former owner of Eagle
Enterprises is also the principal owner of Agri-Sales and holder
of the Company's restricted common stock, as more fully
discussed in the Annual Report on Form 10-K for the year ended
June 30, 1995.
A summary of the related party transactions that effect the
Company's statement of operations for the three and nine months
ended March 31, 1996, and 1995, respectively, is as follows:
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
March 31, March 31,
Transactions with
Related Parties 1996 1995 1996 1995
<S> <C> <C> <C> <C>
Rent expense 15,000 15,000 45,000 45,000
Interest income 1,009 2,073 3,948 6,476
Interest expense 707 1,855 2,466 5,474
Commission expense - - 234,886 234,886
</TABLE>
ITEM 2.Management's Discussion and Analysis of Financial Condition
and Results of Operations.
The business of the Company is carried on within two
segments by a number of operating units. The livestock handling
equipment segment is composed of W-W Manufacturing (W-W
Manufacturing) and Eagle Enterprises (Eagle), and the water and
environmental product segment is represented by Titan Industries
(Titan).
(A) Analysis of Results of Operations
The Company incurred net losses of $301,068 and $464,164,
for the three and nine month period ended March 31, 1996, as
compared to net losses of $71,205 and $135,438 in 1995.
Net sales decreased to $10,956,015 for the nine months ended
March 31, 1996, compared to $12,036,624 for 1995. The following
table represents actual sales by segment group.
Sales by segment group:Three Months Ended Nine Months Ended
<TABLE>
<CAPTION>
March 31 March 31
1996 1995 1996 1995
<S> <C> <C> <C> <C>
Livestock Handling
Equipment 1,854,485 2,311,705 6,073,437 6,940,480
Water and Environmental
Products 1,507,804 1,459,122 4,882,578 5,096,144
Total Sales 3,362,289 3,770,827 10,956,015 12,036,624
</TABLE>
The sales in the water and environmental product segment
increased $48,682 or 3.3% during the quarter ended March 31,
1996 as compared to corresponding quarter in 1995, while showing
a decrease of $213,566 for the entire nine month period in 1996
as compared to the nine month period in 1995. This decrease can
be attributed to the Governmental Agencies cutting back funds for
ground water monitoring and remediation. This has impacted the
sale of various environmental products produced by the Company.
While the unit sales in PVC pipe remain at similar levels to
1994, a decrease in plastic commodity prices of 8% to 10% during
the first six months of the current year has contributed to the
lower sales levels. In March, plastic commodity prices increased
approximately 5%. In addition, weather conditions in some market
areas, specifically Oklahoma, had an adverse effect on the sales
of water well supplies. While these factors contributed to a
decline in sales the Company has taken steps to gain market share
and increase sales. The Company has and will continue to
introduce new products to the market place. The most recent
introduction is high density polyethylene slotted screen (HDPE).
This product has gained strong acceptance in applications such as
land fills, mines, environmental remediation, industrial
screening and leachate collection systems. This product has many
advantages over more traditional piping. The most notable being
its ability to withstand soil loading and resistance to cracking
under high pressure The Company is anticipating strong sales
with this product as it continues to grow in acceptance and other
applications are found for it. The Company continues its efforts
to establish new distributors and manufacturer's representatives
on both the east and west coasts to expand its market area so
that weather and economics in a certain area will not have a
major impact on sales. Based upon April 1996 sales of
approximately $725,000 as compared to $456,000 in April 1995, it
is anticipated that sales during the fourth quarter will be
strong and sales for the entire year in this segment will equal
last years sales or show a slight increase.
During the nine months ended March 31, 1996, sales in the
livestock handling equipment segment declined $867,043 or 12.5%.
The decline in sales are due to a concern in the cattle industry
about beef prices, and the extreme hot weather experienced all
across the United States in the late summer and fall, thereby,
creating a weaker demand for the traditional W-W Manufacturing
equipment. A decline in sales was felt most strongly in July and
August of 1995, but improved slightly as the Company moved into
its fall and winter selling season, with a normal drop during the
holiday season. The Company has experienced a significant
decline in sales in the southeast part of the United States.
Product for this area is primarily produced by Eagle. Eagle's
sales declined during the quarter ended March 31, 1996 from
$671,500 in 1995 to $374,000 in 1996, a decrease of $297,500,
while experiencing overall decline of $689,200 during the nine
month period ended March 31, 1996, as compared to 1995. While
traditional lines of cattle livestock systems remains sluggish,
the special horse stall, versa stall and rodeo sales division
remain strong. During the quarter ended September 30, 1995, W-W
Manufacturing had a special order which accounted for
approximately $533,000 of the total sales in this segment and had
additional specials through the balance of the nine month period.
While these special sales helped offset the lower demand for the
standard line of product, the production cost on these sales are
higher therefore, reducing gross profit and net profit margins.
The Company expects sales in the livestock handling equipment to
remain soft as long as beef prices remain low and some experts in
the cattle industry predict beef prices to remain low for the
next twelve to eighteen months. However, during this period the
Company is taking steps to maintain and gain market share by
expanding its sales and marketing efforts to the upper midwest
and western United States areas that have not been traditionally
strong markets for the Company in the past.
Historically, W-W Manufacturing has sold its equipment to the
larger ranchers and not to smaller operators because along with
higher quality and durability comes higher prices. Therefore,
smaller operators opted for lower priced equipment because the
size of their herd, they could not justify the price for W-W
Manufacturing equipment. In order to meet the needs of the
smaller price conscious operator, the Company has designed a new
line of quality equipment which will be priced lower than the
traditional equipment. Additionally, the Company reintroduced a
line of feed equipment and gates in January 1996. This line of
equipment will enable the Company to enter the high volume aspect
of the gate and panel market. These products will not only
increase sales levels, but will give the Company a lead-in-
product to open markets to new customers, who have not handled W-
W Manufacturing livestock systems. The Company used the late
winter and spring months to introduce these new products not only
to its traditional market but to distributors and dealers being
in new market areas discussed previously. The Company does not
expect significant sales from these new products until the fall
market after customers have had a chance to test the products and
see acceptance by the end users. Early indications from trade
shows and dealers is that the Company can anticipate increases in
sales levels and market share from these new and reintroduced
products.
Gross profit margins decreased from 18.96% in 1995 to 16.73%
in 1996 on an overall Company basis. The gross profit margin in
the livestock handling equipment decreased from 20.45% in 1995 to
17.15% in 1996. As discussed earlier this decline is principally
a result of lower gross profit margin on "specials" which
accounted for approximately more than 10% of total sales in the
livestock handling equipment segment during the period. Eagle
had showed improvement in its operating results. Eagle had a
operating loss of $140,047 during the six months ended December
31, 1995, as compared to an operating loss of $252,287 in
corresponding period. Eagle incurred an operating loss of
$110,598 during the third quarter of 1996 as compared to
operating profit of $9,944 in 1995. Product sales shipped out of
the Eagle manufacturing facility totaled $1,430,956 in 1996 or an
average of $160,606 per month. Management has estimated Eagle's
breakeven point to be approximately $200,000 in shipments per
month. It is anticipated that Eagle's shipments will increase as
orders for the reintroduced feed equipment, gates and new lower
priced cattle handling equipment start. The Company believes as
these new products gain an acceptance in the market place, that
by the 1996 fall season, Eagle product sales will increase. The
Company expects the livestock handling equipment segment
operating results to remain down until beef prices improve.
Gross profit margins in the water and environmental product
segment decreased from 17.49% in 1995 to 16.21% in 1996. This
decline corresponds to higher depreciation and other costs
associated with the new manufacturing facility which was
completed in December 1994 and competition which has depressed
margins. Presently, this facility is not being utilized to its
fullest capacity due to sluggish sales.
Selling expenses as a percent of sales increased to 9.33% in
1996 as compared to 7.79% in 1995. This increase is a function
of the cost of the establishing sales force in the livestock
handling equipment segment, while sales have declined. During
December and January, the Company restructured its salesmen
responsibility and eliminated two salesmen. The cost saving
resulting from the restructuring has been offset by additional
costs incurred in developing a new sales catalog and the costs
associated with inducing the new product line to new and existing
dealers. The Company has been successful in new establishing
new dealers and distributors in areas where the Company has not
had a strong presence. It is anticipated that as cattle prices
improve and the new dealers and distributors reduce their present
inventories, that they will start ordering W-W livestock handling
equipment. The results of the marketing efforts during the last
several months will not be known until the Company receives its
fall booking during June and July of 1996. On April 29, 1996,
the Company hired a new national sales manager. The new sales
manager has extensive experience in the livestock handling
business, serving as sales manager for other livestock handling
equipment manufacturers.
General and administrative expenses declined $72,824 during
the nine months in 1996 as compared to 1995. This decrease
primarily relates to the drop in legal expenses and reduction in
administrative staff during the quarter ended March 31, 1996, as
compared to the corresponding 1995 quarter and reversal of
$55,000 of bad debt reserve which is included in general and
administrative expenses. By centralizing accounting and other
administrative functions at the corporate headquarters enabled
the Company to eliminate the former controller in Dodge City.
There are depositions scheduled in the Agri-Sales/Bellar lawsuit
in May and June 1996, therefore it is anticipated that legal
expense will increase during that quarter.
Interest expense increased $21,753 during the nine months
ended March 31, 1996, as compared to the corresponding quarter in
the prior year. This increase can be attributed to increase in
borrowing on the lines of credit, equipment lines during the
period and on funds borrowed to finance Titan's new facility,
even though the Company applied approximately $287,000 of note
receivable proceeds collected to reduce Eagle's and W W Capital's
debt which was paid in December 1995, and February 1996. With
the net reduction of debt in the amount of $180,571, along with
reduction in interest rates should reduce the Company's interest
expense during the fourth quarter. Inflation has not had a
significant effect on operations in the recent years because of
the relatively modest rate of price increases in the United
States.
(B) Liquidity and Capital Resources
The Company used $237,597 cash in operating activities in 1996
as compared to using $29,953 in operations in 1995. The Company
has reduced inventory levels by $127,269 since June 30, 1995, and
used these funds to fund increase accounts receivable.
Management
anticipates that overall inventory levels to remain constant,
while reductions in its current inventory will be offset by
increases in inventory of the new feed equipment and gates.
As referred to above, the Company received $323,412 on
February 12, 1996, which paid the entire outstanding balance of
its note receivable net of a prepaid discount of $11,000. The
funds will be used to reduce the Company's debt by $225,000 and
remaining funds will be used in operations.
The Company renewed its banking arrangements with its primary
lender on terms similar to which is presently in effect in
December 1995, except Eagle's line of credit was reduced from
$450,000 to $250,000. Currently, Eagle is in violation of
certain loan covenants with both First American National Bank and
Bank IV, Kansas due to prior net operating losses, even though
the reduction in the outstanding balance of the line of credit
cured certain other violations. Management has discussed these
violations with the Banks and neither Bank indicated that they
would accelerate payment of the respective loans.
During the nine months ended March 31, 1996, the Company made
capital additions of $130,935 down from $685,625 in 1995. W-W
Manufacturing is currently in discussions with the City of Dodge
City, Kansas regarding the issuance of $1,400,000 of Industrial
Revenue Bonds. Said proceeds would be used to acquire the Dodge
City Manufacturing facility and provide funds for additions,
improvements and remodeling. These facility improvements will
allow the Company to consolidate operations, and improve
production efficiencies and the paint quality with a new paint
system. Under the terms of the indenture, W-W Manufacturing
would lease the facility from the City of Dodge City for monthly
pro-rata amounts sufficient to pay all principal and interest due
on said bonds. W-W Manufacturing has an option to purchase
property at any time for an amount equal to full amount required
to pay-in-full or redeem all outstanding bonds plus $10.00.
W-W Manufacturing has applied for $175,000 in City Revolving
Loan funds from Dodge City. The loan requirements include
retention and creation of new jobs. The Company believes with
the production of the new gate and panel line, feeding equipment
and moving the hydraulic operations to Dodge City that this
requirement can be met. The ten year loan bears interest at
2.5% below the prime rate, and will be used for working capital
to launch the new panel and gate line, purchase equipment
necessary to manufacture the feeding equipment in Dodge City, and
provide funds to implement a new washing system for the paint
line.
The Company has listed its property located in Johnson County,
Texas for $400,000. The Company has received an offer of
$360,000 to sell the property, of which no decision has been made
at this time.
The net losses incurred and the costs associated with the new
cattle handling equipment and feed lines had placed demand on
cash, but management believes the unused $170,000 available on
the lines of credit, the possible funds available from the sale
of the Company's Texas property, and it's ability to obtain
additional long-term financing, the Company will have adequate
resources to meet its obligations.
PART II
OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
Not Applicable
ITEM 2. CHANGES IN SECURITIES
Not Applicable
ITEM 3. DEFAULTS UPON SENIOR SECURITIES
Not Applicable
ITEM 4. SUBMISSION OF MATTER TO A VOTE OF SECURITY HOLDERS
Not Applicable
ITEM 5. OTHER INFORMATION
Not Applicable
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
Exhibit 27 Financial Data Schedule<PAGE>
Pursuant to the requirements of the
Securities and ExchangeAct of 1934, the Registrant has duly caused this
report to be signed on its behalf by the undersigned thereunto duly
authorized.
W W CAPITAL CORPORATION
(Registrant)
Dated: May 16, 1996
By:________________________________
Robert W. Claar, Chief
Financial Officer
Dated: May 16, 1996
By:________________________________
Steve D. Zamzow, President &
CEO
<PAGE>
Pursuant to the requirements of the Securities and Exchange
Act of 1934, the Registrant has duly caused this report to be
signed on its behalf by the undersigned thereunto duly
authorized.
W W CAPITAL CORPORATION
(Registrant)
Dated: May 16, 1996 By: /s/ Robert W.
Claar
Robert W. Claar, Chief
Financial Officer
Dated: May 16, 1996 By: /s/ Steve D. Zamzow
Steve D. Zamzow, President &
CEO
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND> THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION
EXTRACTED FROM THE CONSOLIDATED BALANCE SHEETS AND
CONSOLIDATED STATEMENTS OF OPERATIONS FOUND ON PAGES 1,
2 AND 3 OF THE COMPANY'S FORM 10-Q FOR THE YEAR-TO-
DATE, AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO
SUCH FINANCIAL STATEMENTS.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> JUN-30-1996
<PERIOD-END> MAR-31-1996
<CASH> 73,087
<SECURITIES> 0
<RECEIVABLES> 2,035,200
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0
0
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<EPS-PRIMARY> ( .08 )
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</TABLE>
