February 13, 1996
Securities and Exchange Commission
450 Fifth Street , N.W.
Washington, D. C. 20549
RE: EXCAL ENTERPRISES, INC.
File No. 0-17069
Dear Sir or Madam:
Enclosed for filing is the Company's Form 10-QSB/A1 for the period ended
December 31, 1994. During 1994, the Company realized sales proceeds from
salvage of personal property removed from commercial real estate in
Jacksonville, Florida. During the year-end audit for the fiscal year ended
June 30, 1995, it was determined that the proceeds realized from the salvage
value of the personal property should be offset against the cost of preparing
the property for rent. Therefore, this Form 10-QSB is being amended to reflect
this change. Gain on sales of property has been reduced by $3,495 and $164,856
for the three months and six months ended December 31, 1994, respectively.
The gain was offset against the $452,897 of costs incurred to prepare the
property for rental. The balance of $288,041 is included in the balance sheet
under the caption "Capitalized rental clearing costs". Amortization expense
was reduced by $33,384 for both the three-month and six-month periods ended
December 31, 1994.
The footnotes and management's discussion and analysis have been updated to
reflect these changes.
Sincerely,
/s/TIMOTHY R. BARNES
Timothy R. Barnes
Vice President/CFO
Enclosures
TRB/cas
SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
FORM 10-QSB/A1
[X] Quarterly Report Pursuant to Section 13 or 15 (d)
of the Securities Exchange Act of 1934
[ ] Transition Report Pursuant to Section 13 or 15 (d)
of the Securities Exchange Act of 1934
For the quarterly period ended December 31, 1994
Commission File No. 0-17069
Excal Enterprises, Inc.
(Exact name of registrant as specified in its charter)
Delaware 59-2855398
(State or other jurisdiction o (I.R.S. Employer Identification No.)
incorporation or organization)
100 North Tampa Street, Suite 3575 Tampa, Florida 33602
(Address of principal executive offices)
(813) 224-0228
Registrant's telephone number, including area code
Assix International, Inc.
(Former Name, former address and former fiscal year,
if changed since last year)
Check whether the issuer (1) filed all reports required to be filed
by Section 12, 13 or 15 (d) of the Securities Exchange Act of 1934 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.
Common Stock $0.001 par value 4,666,866
Class Outstanding at February 13, 1995
ASSIX INTERNATIONAL, INC.
INDEX
Page No.
PART I. Financial Information
Item 1. Financial Statements
Consolidated Balance Sheet--December 31, 1994 3-4
Consolidated Statement of Income--Three Months and Six Months Ended
December 31, 1994 and 1993 5
Consolidated Statement of Cash Flows--Six Months Ended
December 31, 1994 and 1993 6
Notes to Consolidated Financial Statements 7-8
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations 9-12
PART II. Other Information
Item 1. Legal Proceedings 13
Item 2. Changes in Securities 13
Item 3. Defaults upon Senior Securities 13
Item 4. Submission of Matters to a Vote of Security Holders 13
Item 5. Other Information 13
Item 6. Exhibits and Reports on Form 8-K 13
Signatures 14
Exhibits 15
ASSIX INTERNATIONAL, INC.
CONSOLIDATED BALANCE SHEET
DECEMBER 31, 1994
(Unaudited)
Current assets
Cash and cash equivalents $ 79,738
Marketable equity securities 3,785,031
Notes and accounts receivables
Accounts receivable - trade $ 197,156
Accounts receivable - related parties 2,119
Notes/Advances receivable - former officer 135,599
Officer & employee advances 91,078
Less allowance for doubtful accounts (140,599) 285,353
Prepaid expenses & deposits 59,162
Inventories - at the lower of cost (determined
by the first-in, first-out method) or market 519,454
Total current assets $ 4,728,738
Property & Equipment
Land - at cost 1,740,000
Licensed Dealer Programs - at cost 2,617,005
Building - at cost 4,710,000
Other Property and equipment, net 692,842
8,019,847
Less accumulated depreciation
and amortization 1,395,850 6,623,997
Licensed dealer demonstration programs 65,000
Construction in process of Licensed dealer programs 67,850
Total property and equipment 8,496,847
Other Assets
Intangible Assets
Manufacturing technology, less
accumulated amortization of $54,247 173,710
Capitalized rental clearing costs,
less accumulated amortization of $1,455 286,586
Patents, less no accumulated amortization 67,267
Deferred charges, less accumulated
amortization of $57,792 22,825
Organization costs, less accumulated
amortization of $65,296 634
Other, less accumulated amortization of $139,743 211,454
Total other assets 762,476
Total Assets $13,988,061
See accompanying notes to the consolidated financial statements
ASSIX INTERNATIONAL, INC.
CONSOLIDATED BALANCE SHEET (continued)
DECEMBER 31, 1994
(Unaudited)
Liabilities and Stockholders' Equity
Current liabilities
Accounts payable - trade $ 345,070
Sales and payroll taxes payable 4,401
Other accrued liabilities 953,641
Current maturities on long-term debt 61,599
Deferred revenue 35,633
Income tax payable 344,524
Total current liabilities $ 1,744,868
Long-term debt 61,960
Deferred income taxes 2,327,000
Stockholders' equity
Preferred stock - authorized, 7,500,000 of shares
of $.01 par value, non-cumulative; no shares
issued and outstanding -
Common stock - authorized, 7,500,000 shares
of $.001 par value; shares issued, 4,713,866,
shares outstanding 4,666,866 4,713
Common stock warrants -
Additional paid-in capital 5,820,533
Retained earnings 4,235,111
Less common stock held in treasury,
47,000 shares at cost (206,124)
Total stockholders' equity 9,854,233
Total Liabilities and Stockholders' Equity $13,988,061
See accompanying notes to the consolidated financial statements
ASSIX INTERNATIONAL, INC.
CONSOLIDATED STATEMENT OF OPERATIONS
(Unaudited)
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
December 31, December 31,
1994 1993 1994 1993
<S> <C> <C> <C> <C>
Licensed dealer program revenues $ 275,532 $ 1,716,911 $ 557,234 $ 3,419,102
Real property revenues 219,055 - 219,055 -
Dividend & interest income 18,072 - 73,248 -
Realized gain on holding securities 19,914 - 19,914 -
Realized gain on trading securities - - 250,597 -
Other income 1,036 6,532 1,832 13,682
533,609 1,723,443 1,121,880 3,432,784
Costs and expenses:
Service 93,825 428,380 188,561 844,581
General and administrative 957,279 890,592 2,030,950 1,546,958
Depreciation and amortization 192,246 633,165 376,103 1,339,167
Interest 5,887 158,213 6,614 457,377
Loss/(gain) on asset write-down 3,827 8,062 ( 23) -
(Gain)/Loss on sale of assets 1,598 3,782 5,630 7,814
Total Expenses 1,254,662 2,114,132 2,615,920 4,195,874
Income before income taxes & extra-
ordinary item (721,053) (390,689) (1,494,040) (763,090)
Provision for income taxes
Current - - - -
Deferred - - -
Income (loss) before extraordinary item (721,053) (390,689) (1,494,040) (763,090)
Extraordinary item, net of taxes - - - 6,312,500
Net income (loss) $ (721,053) $ (390,689) $ (1,494,040) $ 5,549,410
Earnings (loss) per common and
common equivalent share
Income from continuing operations
(after related taxes) $ (.15) $ (.08) $ (.32) $ (.16)
Extraordinary item - - - 1.35
Net income (loss) $ (.15) $ (.08) $ (.32) $ 1.19
Weighted average common and common
equivalent shares used in calculation: 4,666,866 4,666,866 4,666,866 4,666,866
</TABLE>
See accompanying notes to the consolidated financial statements
ASSIX INTERNATIONAL, INC.
CONSOLIDATED STATEMENT OF CASH FLOWS
(Unaudited)
Six Months Ended December 31,
1994 1993
Cash flows provided by operating activities:
Net income $(1,494,040) $5,549,410
Adjustments to reconcile net income to net cash provided
by operating activities
Depreciation and amortization 384,167 1,339,167
Provision for uncollectable accounts receivable ( 23,980) -
Loss on sale of property and equipment 14,730 7,814
Deferred revenue ( 549) 401,132
Loss on asset write-downs - ( 23)
Realized gain on holding securities ( 19,914) -
Realized gain on trading securities ( 250,597) -
Proceeds from sale of trading securities 8,130,437 -
Purchase of trading securities (1,146,824) -
Gain on debt restructuring - (6,312,500)
Changes in operating assets and liabilities:
Accounts and notes receivable, (increase) ( 29,372) 40,403
Prepaid expenses and advances, decrease 150,351 115,331
Other assets, (increase) ( 452,439) ( 5,914)
Accounts payable, accrued interest and
accrued liabilities, (decrease)/increase ( 802,763) 52,795
Accrued interest, increase - 448,326
Assets removed and placed in WIP, (increase) 68,888 147,753
Sales and payroll taxes payable, (decrease) ( 25,499) ( 45,293)
Net cash provided by operating activities 4,502,596 1,738,401
Cash flows used in investing activities:
Purchase of held to maturity
securities, net of maturities (3,917,996) -
Capital expenditures ( 997,010) ( 378,208)
Net cash used in investing activities (4,915,006) ( 378,208)
Cash flows provided by (used in) financing activities:
Proceeds from debt 84,836 -
Principal payments on debt ( 17,596) ( 920,480)
Accounts receivable - related parties - ( 166,187)
Net cash provided (used) by financing activities 67,240 (1,086,667)
Increase in cash and cash equivalents ( 345,170) 273,526
Cash and cash equivalents, beginning of period 424,908 582,009
Cash and cash equivalents, end of period $ 79,738 $ 855,535
See accompanying notes to the consolidated financial statements
ASSIX INTERNATIONAL, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
December 31, 1994
(Unaudited)
<TABLE>
NOTE 1 - BASIS OF PRESENTATION
The Company's interim financial statements are unaudited and should be read in conjunction with
the consolidated financial statements and notes thereto for the year ended June 30, 1994. The results
of operations for the interim periods shown in this report are not necessarily indicative of results to
be expected for the fiscal year. The balance sheet has been reclassified from an unclassified balance
sheet to a classified balance sheet.
In the opinion of management, the accompanying consolidated financial statements contain all
adjustments necessary to make the results of operations for the interim periods a fair statement of
such operations. All such adjustments are of a normal, recurring nature. Due to the small dollar
amount associated with marketing expenses, these amounts have been reported in the general and
administrative category for the periods ended December 31, 1994 and 1993.
NOTE 2 - MARKETABLE EQUITY SECURITIES.
During the year ended June 30, 1994, the Company adopted Statement 115 of the Financial
Accounting Standards Board "Accounting for Certain Investments in Debt and Equity Securities." Under
this new pronouncement, securities that have readily determinable fair value should be classified into
trading, held to maturity, and available for sale. Equity securities are recorded at their fair value, and
gross unrealized holding gains and losses are disclosed. For the purpose of determining the gain or loss
on a sale, the cost of securities sold is based on the average cost of all shares of each such security held
at the date of sale. During the three month period ended September 30,1994, the Company sold all of
its trading securities and invested the proceeds into Treasury Bills and notes that are to be held to
maturity. Those sales of marketable equity securities resulted in a net realized gain of $250,597
during the three month period ending September 30, 1994.
At December 31, 1994, the aggregate cost of the current marketable equity securities and
certificate of deposits held for maturity was $3,785,031, while their market value was $3,770,947.
As of December 31, 1994, the Company had $3,740,439 invested in Treasury bills and notes and
$44,592 invested in certificates of deposits. The Treasury Bills and Treasury Notes have maturity
periods ranging from 30 days to one year with rates of return of 4.345% to 5.78%.
NOTE 3 - PROPERTY AND EQUIPMENT
Under Financial Accounting Standards Board 67, the Company capitalized certain costs incurred to
rent real estate. These capitalized costs net of salvage proceeds, totalled $288,041 and are being
amortized over 10 years.
NOTE 4 - OTHER ASSETS
The Company capitalized $111,221 of costs associated with the improvement of the T7000 Combi-
Matcher under Financial Accounting Standards Board 2 and 86.
NOTE 5 - EXTRA-ORDINARY GAIN
As of December 31, 1993, the Company generated a $6,312,500 extraordinary gain from settling
its debt with its subordinated lenders. The gain was determined by taking the outstanding debt and
accrued interest at the time of the settlements ($5,000,000 principal and $1,562,500 of accrued
interest for Mass Mutual reduced by the $250,000 aggregate payments that were made to the
subordinated lenders). Accordingly, the extra-ordinary gain is $6,312,500. The $2,438,000 of
deferred taxes for the Mass Mutual settlement were not recorded until the third quarter of the year
ended June 30, 1994.
NOTE 6 - LONG-TERM DEBT
Long-term debt consists of the following:
December 31, 1994
(Unaudited)
Automobile notes $ 45,423
Equipment notes 35,195
Capitalized equipment leases 42,941
123,559
Current maturities on long-term debt 61,599
Total long-term debt $ 61,960
The following are the aggregate maturities of the Company's existing long-term debt for years
subsequent to June 30, 1995:
1996 33,679
1997 9,890
1998 8,103
1999 8,264
Thereafter 2,024
$ 61,960
NOTE 7 - EARNINGS (LOSS) PER COMMON SHARE
Earnings (loss) per common share for the three months and six months ended December 31, 1994
and 1993 has been computed based upon the weighted average number of common shares outstanding
during the period. Common stock warrants and options are not considered in the computation because
they are anti-dilutive in the aggregate.
NOTE 8 - INCOME TAXES
During the year ended June 30, 1994, the Company adopted Statement No. 109 of the Financial
Accounting Standards Board, "Accounting for Income Taxes." This new pronouncement requires that
deferred tax assets and liabilities be recognized for the estimated future consequences attributable to
differences between the financial statements carrying amounts of existing assets and liabilities and
their respective income tax bases. Deferred tax assets and liabilities are measured using enacted tax
rates expected to apply to taxable income in the years in which those temporary differences are
expected to be recovered or settled. Under Statement No. 109, the effect on deferred tax assets and
liabilities of a change in tax rates is recognized during the period that includes the enactment date.
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF RESULTS OF OPERATIONS AND
FINANCIAL CONDITION
Management of the Company intends to increase the automotive operation's network of licensed
agents by marketing the AccuBalance/Corvi service program, which utilizes the Company's
Corvi/Combi technology, to local and regional tire dealer retail service outlets. This expansion effort
will concentrate in the geographic areas within which the Company currently operates (California,
Texas, Ohio, Indiana, Kentucky, Tennessee, Florida, Georgia and Alabama).
Management believes that normal growth of the tire dealers, comprising the Company's current
licensed agent network, will increase the number of licensed agent locations utilizing the Corvi/Combi
technology. If the number of licensed agents utilizing the Corvi/Combi technology at their retail
locations does in fact increase or if expenses are lowered, management believes the automotive
operation will reduce it's operational loss. Net profit from automotive operations will be realized only
if sufficient economies of scale are achieved through the expansion of the Company's licensed agent
network.
Any additional expansion of the Company's network of regional tire retail dealers is anticipated to
be financed through operating cash flows provided by the Company's automotive services operations
(which includes the money received from the Sears settlement). To assist the automotive operation in
reaching sufficient size, the Company has spent approximately $150,000 during the six month period
ended December 31, 1994 to build and expand its current automotive operations. Management also has
spent approximately $111,221 (during the six month period ended December 31, 1994) for the
redesign of the Combi System TM7000, which should increase the effectiveness and decrease the total
cost of the machine.
The Company entered into two leases on December 1, 1994 to lease a portion of the Property's
warehouse space. The first lease is for approximately 600,000 square feet of the first floor space.
The second lease is for approximately 200,000 square feet of the second floor. Both leases contemplate
terms for 13 months commencing December 1, 1994, with an option to extend the lease period for 3
months. These leases could generate in the form of base rent pre-tax revenues of approximately $1.46
million over the 13 month lease term. The tenant will pay its pro-rated share of agreed upon operating
expenses (which includes taxes, insurance and maintenance). The tenant will reimburse the Company
for any utility expenses. Pursuant to the second lease, the tenant will be granted the option to lease an
additional 300,000 square feet of second floor space as overflow space in consideration of its payment
of all operating expenses attributable to that space. The tenant will not pay any additional base rent on
the overflow space. The Company paid its local leasing agent a 4% fee on base rent generated by the
Property.
D. RESULTS OF OPERATIONS:
For the Three Months Ended December 31, 1994
Revenues and other income for the three months ended December 31, 1994 ("Oct. - Dec. 1994")
decreased $1,189,834 (69%) to $533,609 from $1,723,443 for the three months ended December
31, 1993 ("Oct. - Dec. 1993"). The primary reason for this decrease is due to the fact that the
Company and Sears (who generated approximately $1.4 million in revenue for the Company in the Oct.
- - Dec. 1993 period) terminated their relationship in February 1994. Additional revenue from the
Jacksonville rental property and the installation of new programs partially offset the decrease in Sears
revenues. A program is an installed machine capable of performing the Company's proprietary
AccuBalance/Corvi wheel-balancing service. As of December 31, 1994, the Company had 166 revenue
producing programs utilizing the Combi-Matcher, compared with 1281 programs utilizing the Tire-
Matcher (all of which were with Sears) and 128 programs utilizing the Combi-Matcher at December
31, 1993.
Service expenses for Oct. - Dec. 1994 decreased $334,555 (78%) to $93,825 from $428,380
for Oct. - Dec. 1993. Service expenses for July - Sept. 1994, as a percentage of revenue, decreased to
18% from 25% during the Oct. - Dec. 1993 period due to the increase in revenues described in the
preceding paragraph with a corresponding decrease in service expenses. The Company has implemented
two layoffs since December 31, 1993 which, when combined with natural attrition, has reduced the
number of personnel to 28 employees (of which 8 were employed by the real estate subsidiary) as of
December 31, 1994 compared to 44 employees as of December 31, 1993.
General and administrative expenses for Oct. - Dec. 1994 increased $66,687 (7%) to $957,279
from $890,592 for Oct. - Dec. 1993. General and administrative expenses as a percentage of revenue
increased to 179% from 52%. The reason for the increase in general and administrative expenses is
generally due to the underutilization of the manufacturing facilities during the Oct. - Dec. 1994 period.
Depreciation and amortization expense for Oct. - Dec. 1994 decreased $440,919 (70 %) to
$192,246 from $633,165 for Oct. - Dec. 1993. This decrease is a result of the discontinuance of
depreciation for Dealer Licensed machines previously installed at Sears (such machines were sold to
Sears on February 24, 1994) and the discontinuance of amortization of deferred borrowing costs
(which were written off in December 1993), which decrease has been partially offset by depreciation
expense for the warehouse facility located at the Jacksonville property and the amortization of clearing
costs of the warehouse facility.
Interest expense for Oct. - Dec. 1994 decreased $152,326 (96%) to $5,887 from $158,213 for
Oct. - Dec. 1993, reflecting the Company's payment of the remaining amount of its debt to PNC Bank of
Kentucky, Inc. ("PNC") in February 1994 and all of its Mass Mutual Life Insurance Company ("Mass
Mutual") debt in December 1993.
For the three months ended December 31, 1994 the Company reported a loss before income taxes
and extra-ordinary gain of $(721,053 ) versus a loss of $390,689 during the same period of the
prior fiscal year. The Company generated a net loss, after taxes, of $(721,053 ) for the Oct. - Dec.
1994 period as compared to a loss of $390,689 for the comparable Oct. - Dec. 1993 period. The
reason for the increased loss is due to the reduction in revenues and the underutilization of the
manufacturing facilities.
For the Six Months Ended December 31, 1994
Revenues and other income for the six months ended December 31, 1994 ("July - Dec. 1994")
decreased $2,310,904 (67%) to $1,121,880 from $3,432,784 for the six months ended December
31, 1993 ("July - Dec. 1993"). The primary reason for this decrease is due to the fact that the
Company and Sears (who generated approximately $2.9 million in revenue for the Company in the July
- - Dec. 1993 period) terminated their relationship in February 1994. Additional revenue from the
Jacksonville rental property, the installation of new programs and realized gain from trading
securities partially offset the decrease in Sears revenues. A program is an installed machine capable of
performing the Company's proprietary AccuBalance/Corvi wheel-balancing service.
Service expenses for July - Dec. 1994 decreased $656,020 (78%) to $188,561 from
$844,581 for July - Dec. 1993. Service expenses for July - Sept. 1994, as a percentage of revenue,
decreased to 17% from 25% during the July - Dec. 1993 period due to the change in revenues
described in the preceding paragraph and a drop in service expenses. The Company has implemented
two layoffs since December 31, 1993 which, when combined with natural attrition, has reduced the
number of personnel to 28 employees (of which 8 were employed by the real estate subsidiary) as of
December 31, 1994 compared to 44 employees as of December 31, 1993.
General and administrative expenses for July - Dec. 1994 increased $483,992 (31%) to
$2,030,950 from $1,546,958 for July - Dec. 1993. General and administrative expenses as a
percentage of revenue increased to 181% from 45%. The reasons for the increase from the prior year
in general and administrative expenses include, among other things, 1) an increase in professional fees
of approximately $126,000 arising from various litigation and accounting matters and 2) the
underutilization of the manufacturing facilities
Depreciation and amortization expense for July - Dec. 1994 decreased $963,064 (72 %) to
$376,103 from $1,339,167 for July - Dec. 1993. This decrease is a result of the discontinuance of
depreciation for Dealer Licensed machines previously installed at Sears (such machines were sold to
Sears on February 24, 1994) and the discontinuance of amortization of deferred borrowing costs
(which were written off in December 1993), which decrease has been partially offset by depreciation
expense for the warehouse facility located at the Jacksonville property and the amortization of clearing
costs of the warehouse facility.
Interest expense for July - Dec. 1994 decreased $450,763 (99%) to $6,614 from $457,377
for July - Dec. 1993, reflecting the Company's payment of the remaining amount of its debt to PNC
Bank of Kentucky, Inc. ("PNC") in February 1994 and all of its Mass Mutual Life Insurance Company
("Mass Mutual") debt in December 1993.
For the six months ended December 31, 1994 the Company reported a loss before income taxes and
extra-ordinary gain of $1,494,040 versus a loss of $763,090 during the same period of the prior
fiscal year. The Company generated a net loss, after taxes, of $1,362,568 for the July - Dec. 1994
period as compared to income of $5,549,410 for the comparable July - Dec. 1993 period. The reason
for the reduction in income is due to the non-recurrence of the extra-ordinary item, the reduction in
revenues and an increase in certain expenses.
E. Liquidity and Capital Resources:
The Company's consolidated balance sheet is presented on a classified basis. As of December 31,
1994, the Company's primary sources of liquidity were $79,738 in cash, $3,785,031 in marketable
securities and certificates of deposit, and $197,156 of trade accounts receivable. As of December 31,
1994, the aggregate amount of the Company's short term liabilities (accounts payable, accrued
liabilities, income taxes payable, accrued interest and sales and payroll taxes payable) was
$1,744,868. The net liquidity of the Company as of December 31, 1994 was $2,317,057.
Management believes these net sources of liquidity and cash flow will be adequate to meet present
obligations maturing in the fiscal year ending June 30, 1995.
Due to the classification of certain investments as trading securities, see footnote 2, the
$8,130,437 of proceeds from the sale of such securities (which had been purchased with the proceeds
from the Sears settlement) falls into cash provided by operating activities. Because of that
classification, the Company generated cash provided by operating activities during the July - Dec.
1994 period of $4,502,596 compared with net cash provided by operating activities of $1,738,401
for the July - Dec. 1993 period. Absent the sale of those securities, the Company would not have had a
positive cash flow from operating activities, rather it would have used $2,481,017 of cash in
operating activities for the July - Dec. 1994 period.
The Company purchased a 35,000 square foot office/warehouse facility for use by its automotive
division for a total purchase price of $450,000 on July 8, 1994 and spent an additional $40,000 for
improvements. The Company owns this property free and clear of liens and encumbrances. The
Company's principal executive offices will remain located in downtown Tampa.
Net cash used in investing activities in the July - Dec. 1994 period was $4,915,006, as compared
with $378,208 for the July - Dec. 1993 period. Of the $4,895,506 amount, $3,917,996 was used
to purchase securities held to maturity. Of the $997,010 used for capital expenditures, $167,576
was used by Jacksonville Center, Inc. to purchase equipment and $49,253 was used to renovate the
Jacksonville property. The remaining $780,181 used in investing activities represents the purchase
of the Company's 35,000 square foot office/warehouse building for $450,000, leasehold
improvements at the new building, the purchase of additional inventory, the capitalization of costs for
the improvement of the TM7000, and the purchase of other items that are used in the business. The
increased net cash used in investing activities was partially offset by a reduction in the number of
Combi-Matchers produced during the year as compared with the previous period.
Net cash provided by financing activities in the July - Dec. 1994 period was $67,240, as
compared to net cash used by financing activities of $1,086,667 for the July - Dec. 1993 period. This
change is primarily due to the settlement and payment of all of the Company's outstanding debt, except
for certain long-term lease obligations, and the financing of certain automobile and equipment loans.
Although the Company has not identified any other or different business opportunities of specific
interest, management does anticipate creating another distinct operation if and when a new business has
been identified as feasible and either acquired or created by the Company. Any new business operation
will likely involve a substantial commitment of Company resources.
The Company has incurred and expects to incur substantial legal expenses and settlement costs
associated with the SEC investigation. The Company is unable to predict the total legal and settlement
costs that will ultimately be incurred in this matter. The Company will also spend additional funds in
conjuntion with its two pending litigation matters with ASX Investment & Kerry F. Marler (a former
officer and director). The Company is attempting to recover from Mr. Marler the costs associated with
the ASX lawsuit, but there is no assurance such costs can be recovered from him.
<S><C>
</TABLE>
PART II - OTHER INFORMATION
Item 1. - Legal Proceedings - No material events have occurred in the Company's
ongoing litigation matters. For the prior history of such litigation, please
refer to the Company's Annual Report on Form 10-KSB for the year ended
June 30, 1994.
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.
(a) Exhibits
Reg. S-B Exhibit
Item No. Description Page No.
11(a) Computation of Earnings per Share attached
(b) Reports on Form 8-K
During its most recent quarter ended December 31, 1994,
no current Reports on Form 8-K were filed by the Company.
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.
Excal Enterprises, Inc.
Registrant
Dated February 13, 1996 /s/ W. CAREY WEBB
W. Carey Webb
Chief Executive Officer and President
Dated February 13, 1996 /s/ TIMOTHY R. BARNES
Timothy R. Barnes
Vice President/Chief Financial Officer
<TABLE>
<CAPTION>
ASSIX INTERNATIONAL, INC. Exhibit 11
CALCULATION OF EARNINGS PER SHARE
(Unaudited)
Three Months Ended Six Months Ended
December 31, December 31,
1994 1993 1994 1993
<S> <C> <C> <C> <C>
Primary earnings per common and
common equivalent share:
Net income (loss) $(721,053) $(390,689) $(1,494,040) $5,549,410
Add interest on long-term debt net of income taxes<F1> - - - -
Adjusted income (loss) applicable to common and
common equivalent shares $(721,053) $(390,689) $(1,494,040) $5,549,410
Weighted average number of common and common
equivalent shares outstanding:
Weighted average number of shares of
common stock outstanding 4,666,866 4,666,866 4,666,866 4,666,866
Common stock equivalents representing dilutive
options and warrants <F2> - - - -
Weighted average number of common and
common equivalent shares outstanding 4,666,866 4,666,866 4,666,866 4,666,866
Income (loss) from continuing operations (after taxes) $ (.15) $ (.08) $ (.32) $ (.16)
Extra-ordinary item - - - 1.35
Primary earnings (loss) per common
and common equivalent share $ (.15) $ (.08) $ (.32) $ 1.19
<FN>
<F1>
Adjustment to net income (loss) has been shown net of tax effects which were calculated at 39% of the gross amount
of the adjustment.
<F2>
Earnings (loss) per common and common equivalent share for the three months ended December 31, 1994, and 1993
have been computed based upon the weighted average number of common shares outstanding during the period.
Common stock warrants and options are not considered in the computations because they are anti-dilutive in the
aggregate.
</FN>
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
CONSOLIDATED FINANCIAL STATEMENTS INCLUDED IN THE COMPANY'S FORM 10-QSB
FOR THE PERIOD ENDED DECEMBER 31, 1994 AND IS QUALIFIED IN ITS ENTIRETY
BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<RESTATED>
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> JUN-30-1995
<PERIOD-END> DEC-31-1995
<CASH> 79,738
<SECURITIES> 3,785,031
<RECEIVABLES> 425,952
<ALLOWANCES> 140,599
<INVENTORY> 519,454
<CURRENT-ASSETS> 4,728,738
<PP&E> 9,892,697
<DEPRECIATION> (1,395,850)
<TOTAL-ASSETS> 13,988,061
<CURRENT-LIABILITIES> 1,744,868
<BONDS> 61,960
0
0
<COMMON> 4,713
<OTHER-SE> 9,929,258
<TOTAL-LIABILITY-AND-EQUITY> 13,988,061
<SALES> 0
<TOTAL-REVENUES> 776,289
<CGS> 0
<TOTAL-COSTS> 2,595,614
<OTHER-EXPENSES> ( 331,899)
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 6,614
<INCOME-PRETAX> 1,494,040
<INCOME-TAX> 0
<INCOME-CONTINUING> 1,494,040
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 1,494,040
<EPS-PRIMARY> ( .32)
<EPS-DILUTED> ( .32)
</TABLE>
