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 ended December 31, 1999
[ ] TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE ACT
For the transition period from _______________ to _______________
Commission File No. 0-17069
Excal Enterprises, Inc.
---------------------------------------------------------------
(Exact name of small business issuer as specified in its charter)
Delaware 59-2855398
- ------------------------------ ----------------------------------
(State or other jurisdiction of (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
-------------------------
Issuer's telephone number
---------------------------------------------------
(Former Name, former address and former fiscal year,
if changed since last report)
Check whether the issuer (1) filed all reports required 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] or No [ ]
As of January 31, 2000, there were 3,919,195 shares of the issuer's common
stock, par value $0.001, outstanding.
Transitional Small Business Disclosure Format (Check One): Yes [ ] or No [X]
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements.
EXCAL ENTERPRISES, INC.
CONSOLIDATED BALANCE SHEET
DECEMBER 31, 1999
ASSETS (unaudited)
------------
Current Assets
Cash and cash equivalents $ 7,855,251
Accounts receivable, less allowance of $103,255 977,513
Income tax receivable 324,000
Notes receivable 306,736
Inventory 573,969
Prepaid expenses and deposits 262,466
Deferred tax asset 225,000
----------
Total current assets 10,524,935
----------
Property, plant and equipment
Land 1,600,000
Buildings and improvements 6,933,101
Furniture, fixtures, vehicles and equipment 2,114,969
----------
10,648,070
Less accumulated depreciation and amortization 2,072,440
----------
Net property, plant and equipment 8,575,630
----------
Note receivable - related party 261,394
Restricted cash reserves 594,972
Commission costs, less accumulated amortization of $429,264 395,883
Loan costs, less accumulated amortization of $374,843 458,141
----------
Total Assets $ 20,810,955
==========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable $ 804,412
Accrued liabilities 275,317
Reserve for litigation 434,246
Notes payable 373,087
Current portion of long-term debt 532,712
----------
Total current liabilities 2,419,774
Long-term debt 13,128,673
Deferred tax liability 1,343,000
----------
Total Liabilities 16,891,447
----------
Minority interest equity 1,041
Stockholders' equity
Preferred stock, $.01 par value, 7,500,000 shares authorized,
5,000,000 shares issued, no shares outstanding --
Common stock, $.001 par value, 20,000,000 shares authorized,
4,738,866 shares issued, 3,940,995 shares outstanding 4,738
Additional paid-in capital 3,985,842
Retained earnings 3,641,079
Less 797,871 shares of common stock held in treasury at cost ( 2,595,562)
----------
5,036,097
Less notes receivable from stockholders ( 1,117,630)
----------
Total stockholders' equity 3,918,467
----------
Total Liabilities and Stockholders' Equity $ 20,810,955
==========
The accompanying notes are an integral part of the consolidated financial
statements.
EXCAL ENTERPRISES, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
Three Months Ended Nine Months Ended
December 31 December 31
------------------------ ------------------------
1999 1998 1999 1998
--------- --------- --------- ---------
Rental revenue $ 1,228,313 $ 1,160,824 $ 3,791,632 $ 3,480,529
Sports licensing sales 1,091,482 188,548 2,189,899 188,548
--------- --------- --------- ---------
Total net revenue 2,319,795 1,349,372 5,981,531 3,669,077
Cost of sports
licensing sales 691,875 105,672 1,432,461 105,672
--------- --------- --------- ---------
Gross margin 1,627,920 1,243,700 4,549,070 3,563,405
--------- --------- --------- ---------
Rental operating costs 454,330 539,788 1,702,414 1,978,527
Sports licensing
operating costs 458,323 138,124 1,266,649 138,124
Depreciation and
amortization 179,540 172,471 572,184 490,819
--------- --------- --------- ---------
Total operating
costs 1,092,193 850,383 3,541,247 2,607,470
--------- --------- --------- ---------
Net operating
profit 535,727 393,317 1,007,823 955,935
--------- --------- --------- ---------
Other expense (income)
Interest expense 317,559 305,306 960,345 918,091
Professional fees re-
lated to litigation 95,787 297,721 212,958 557,658
Litigation settlement -- -- 2,000 217,273
Loss (gain) on
disposals of assets -- 170 -- ( 3,637)
Interest income ( 140,890) ( 174,904) ( 423,813) ( 535,045)
Miscellaneous income ( 31,761) ( 15,015) ( 64,304) ( 98,743)
--------- --------- --------- ---------
Net other expense 240,695 413,278 687,186 1,055,597
--------- --------- --------- ---------
Income (loss) before
income taxes 295,032 ( 19,961) 320,637 ( 99,662)
Income tax
provision (benefit) 312,000 ( 1,000) 467,000 ( 27,000)
--------- --------- --------- ---------
Net loss $( 16,968) $( 18,961) $( 146,363) $( 72,662)
========= ========= ========= =========
Loss per share
Basic $ -- $ -- $( .04) $( .02)
========= ========= ========= =========
Diluted $ -- $ -- $( .04) $( .02)
========= ========= ========= =========
Weighted average
shares outstanding
Common 3,951,725 4,336,071 4,171,904 4,073,619
Common and equivalent 3,951,725 4,336,071 4,171,904 4,073,619
The accompanying notes are an integral part of the consolidated financial
statements.
EXCAL ENTERPRISES, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)
Nine Months Ended
December 31
--------------------------
1999 1998
--------- ----------
Cash provided by operating activities
Net loss $( 146,363) $( 72,662)
Adjustments to reconcile net loss to net cash
provided (used) by operating activities:
Depreciation and amortization 572,184 490,819
Other adjustments 409,739 ( 200,421)
Increase in net operating assets ( 499,176) ( 273,980)
--------- ----------
Net cash provided (used) by
operating activities 336,384 ( 56,244)
--------- ----------
Cash flows from investing activities
Proceeds from sale of assets -- 62,940
Property and equipment additions ( 40,033) ( 235,677)
Loans to unrelated privately held company -- ( 300,000)
--------- ----------
Net cash used by investing activities ( 40,033) ( 472,737)
--------- ----------
Cash flows from financing activities
Loan to related party ( 261,394) --
Principal repayments of notes payable -- ( 430,000)
Principal repayments of long-term debt ( 122,311) ( 118,829)
Purchase of treasury stock (1,713,368) ( 1,091,950)
--------- ----------
Net cash used by financing activities (2,097,073) ( 1,640,779)
--------- ----------
Decrease in cash (1,800,722) ( 2,169,760)
Cash and cash equivalents at beginning of period 9,655,973 12,622,679
--------- ----------
Cash and cash equivalents at end of period $ 7,855,251 $ 10,452,919
========= ==========
See Note 4 for discussion of non-cash transactions.
The accompanying notes are an integral part of the consolidated financial
statements.
EXCAL ENTERPRISES, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
NOTE 1 - FINANCIAL STATEMENTS
In the opinion of management, all adjustments, consisting only of normal
recurring adjustments necessary for a fair statement of (a) the results of
operations for the three-month and nine-month periods ended December 31, 1999
and 1998, (b) the financial position at December 31, 1999, and (c) cash flows
for the nine-month periods ended December 31, 1999 and 1998, have been made.
The unaudited consolidated financial statements and notes are presented
as permitted by Form 10-QSB. Accordingly, certain information and footnote
disclosures normally included in financial statements prepared in accordance
with generally accepted accounting principles have been omitted. The
accompanying consolidated financial statements and notes should be read in
conjunction with the audited financial statements and notes of the Company
for the fiscal year ended March 31, 1999. The results of operations for the
three-month and nine-month periods ended December 31, 1999 are not
necessarily indicative of those to be expected for the entire year.
NOTE 2 - NOTES RECEIVABLE
During fiscal 1999, the Company loaned $300,000 to an unrelated privately
held company. The notes are unsecured but are guaranteed by the principals
of the privately held company. As of December 31, 1999, the balance owed
included $278,460 in principal and $28,276 in accrued interest. Principal
and interest was due July 20, 1999. Negotiations to restructure the note
receivable were unsuccessful. In October, the Company commenced legal
proceedings for collection of the notes. The Company believes the notes are
fully collectible.
NOTE 3 - NOTES PAYABLE AND LONG-TERM DEBT
The Company renewed its $725,000 line of credit with European American Bank
in July 1999. The loan was renewed with $375,000 as a revolving line of
credit and $350,000 as a term loan. The notes are secured by the assets of
Roxbury Industries, Corp. and are personally guaranteed by certain officers
of Roxbury Industries, Corp. The term loan bears interest at the rate of
9.42% and is payable interest only through December 1999. Monthly principal
payments of $6,500 plus interest are payable beginning in January 2000 and
continuing through June 2004. The revolving line of credit bears interest at
1.5% over the bank's prime rate, matures on June 30, 2000 and must be paid
off for 30 days during the term. Roxbury was in violation of the financial
loan covenants regarding the level of equity and debt-to-equity ratio at
December 31, 1999. Therefore, the entire amount of the term loan is included
in the current portion of long-term debt.
NOTE 4 - STOCKHOLDERS' EQUITY
During the nine months ended December 31, 1999, the Company purchased
533,160 shares of its common stock at an aggregate cost of $1,713,368. On
August 4, 1999, a director of the Company exercised options to purchase
183,355 shares of common stock for an aggregate exercise price of $538,606.
The 183,355 shares were issued from treasury stock with a cost basis of
$603,238. The Company loaned the director $800,000 under a recourse note
collateralized by shares of the Company's stock primarily to cover the
exercise price and payroll taxes due upon the exercise. The note requires
annual interest payments at a rate of 6.56% per annum with the principal due
on July 31, 2004. The portion of the note that related to the exercise price
is included as an offset to stockholders' equity. The balance of $261,394 is
included as an asset on the balance sheet. The Company recorded a tax
benefit of $14,000 as a result of the exercise of options.
NOTE 5 - SEGMENT INFORMATION
The Company has two reportable business segments. These segments have
been determined by product line and consist of the rental of commercial real
estate and the manufacture and distribution of sports licensing products.
The revenue shown on the face of the financial statements was from external
sources. The segment information disclosures not included on the face of the
financial statements are detailed in the tables below. The "Other" category
includes corporate related items and income and expense items not allocated
to reportable segments.
Three Months Ended Nine Months Ended
December 31 December 31
--------------------- ---------------------
1999 1998 1999 1998
------- ------- ------- -------
Segment income (loss)
before income taxes
Real estate operations $ 425,031 $ 222,566 $ 967,746 $ 310,328
Sports licensing operations (107,018) ( 75,234) (684,125) ( 75,234)
Other ( 22,981) (167,293) 37,016 (334,756)
------- ------- ------- -------
Total income (loss)
before income taxes $ 295,032 $( 19,961) $ 320,637 $( 99,662)
======= ======= ======= =======
As of December 31
---------------------------
1999 1998
---------- ----------
Identifiable assets
Real estate operations $ 13,837,568 $ 12,766,277
Sports licensing operations 2,232,836 3,165,904
Other 4,740,551 7,600,966
---------- ----------
Total identifiable assets $ 20,810,955 $ 23,533,147
========== ==========
Item 2. Management's Discussion and Analysis.
Except for historical matters, the matters discussed in this Form 10-QSB
are forward-looking statements based on current expectations. Forward-
looking statements, including without limitation, statements relating to the
Company's plans, strategies, objectives, expectations, intentions and
adequacy of resources, are made pursuant to the Safe Harbor Provisions of the
Private Securities Litigation Reform Act of 1995. Investors are cautioned
that such forward-looking statements involve risks and uncertainties
including without limitation the following: (i) the Company's plans,
strategies, objectives, expectations and intentions are subject to change at
any time at the discretion of the Company, (ii) the Company's plans and
results of operations will be affected by economic, competitive, governmental
and technological factors affecting the Company's operations, markets,
products, services, and prices; and (iii) other risks and uncertainties as
indicated from time to time in the Company's filings with the Securities and
Exchange Commission.
The Company conducted a review of its computer systems to identify the
systems that could be affected by the "year 2000 issue". The "year 2000
issue" is the result of computer programs being written using two digits
rather than four to define the applicable year. Programs with this problem
may recognize a date using "00" as the year 1900 rather than the year 2000,
resulting in system failures or miscalculations. The Company experienced no
significant operational problems with its computer systems or with those of
its major vendors and customers due to the "year 2000 issue".
The following discussion should be read in conjunction with the
information contained in the financial statements of the Company and the
notes thereto appearing elsewhere herein and in conjunction with Management's
Discussion and Analysis set forth in the Company's Form 10-KSB for the fiscal
year ended March 31, 1999.
The following discussion compares the results of operations for the three-
month period ended December 31, 1999 (Third Quarter 2000) with the three-
month period ended December 31, 1998 (Third Quarter 1999) and the nine-month
period ended December 31, 1999 (2000 YTD) with the nine-month period ended
December 31, 1998 (1999 YTD).
Results of Continuing Operations
The Company's operations fall into two distinct businesses: the
manufacture and distribution of sports licensing products and the rental of
commercial real estate. In December 1998, the Company acquired Roxbury
Industries Corp ("Roxbury"), which produces and distributes knit products
licensed by most professional and major college teams. The Company owns,
leases, and manages a two story warehouse and office facility containing
approximately 1,666,000 square feet of rentable space located on
approximately 74 acres in an industrial park in Duval County, Florida.
Sports Licensing Products
Since Roxbury was acquired in December 1998, the revenue and expenses of
the sports licensing division are only included for the one month of Third
Quarter 1999 and YTD 1999 as compared to the entire Third Quarter 2000 and
YTD 2000. Roxbury's revenue has been very seasonal. The majority of its
sales have been in the months of July through November. Roxbury's sales are
slightly higher than the prior year. The Company expects revenue for the
fiscal year to surpass the same period of the prior year based on marketing
efforts and a predicted colder winter than last year. In addition, the
Company has expanded its product line and the number of licensed products.
Roxbury received approval from the NFL to market NFL logo headwear beginning
April 1, 2000. This should bolster sales in the next fiscal year. While the
Company is starting to see results from its marketing efforts, sales have not
increased as quickly as originally anticipated. Therefore, the Company does
not expect Roxbury to be profitable for fiscal 2000.
The cost of goods sold, as a percentage of revenue, is lower for Third
Quarter 2000 (63.4%) and for 2000 YTD (65.4%) than reported in previous
quarters. This is because the manufacturing overhead was allocated over
fewer goods sold during the prior months of the fiscal year. The operating
costs of Roxbury for Third Quarter 2000 were comparable to the second quarter
of the fiscal year and about 30% higher than the first quarter of fiscal
2000. In June 1999, Roxbury hired an additional sales person. Roxbury
intends to expand and replace some of its existing sales staff. The result
will be increased operating costs in future quarters. In addition, several
new marketing programs geared toward increasing future sales have been
implemented. Of the total depreciation and amortization expenses, the sports
licensing division accounted for $27,321 in the Third Quarter 2000 and
$108,943 in 2000 YTD. The net operating loss of the sports licensing
division was $86,037 for Third Quarter 2000 and $618,154 in 2000 YTD.
Commercial Real Estate
The commercial real estate operations consist of the lease and management
of property located in Jacksonville, Florida (Imeson Center). The property
consists of approximately 1,392,000 square feet of warehouse space and
274,000 square feet of office space. The Company's lease agreements are
structured to include a base minimum rental fee, a contingent rental fee to
reimburse the Company for operating expenses, common area maintenance costs,
insurance and property taxes, and a requirement that the tenant pay for its
own utilities.
The Company is currently in negotiations to renew of the lease of
1,392,000 square feet of warehouse space that expires on December 31, 2000.
The lease of office space to America Online does not expire until June 15,
2002 and America Online has an option to extend for a three-year period.
However, on November 10, 1999, America Online announced their intention to
construct their own building on the southside of Jacksonville, Florida. The
Company is planning to market the space currently leased by America Online.
The Company believes that this space is much more valuable now than it was
when the lease with America Online was originally negotiated in 1995.
Net revenue increased by 6% to $1,228,313 in Third Quarter 2000 from
$1,160,824 in Third Quarter 1999 and by 9% to $3,791,632 in 2000 YTD from
$3,480,529 in 1999 YTD. The base minimum rental fee increased by $37,605
(4%) in the Third Quarter 2000 and by $105,117 (4%) in 2000 YTD as a result
of increases in the base minimum rent per square foot. The contingent rental
fee increased by $29,884 (15%) in the Third Quarter 2000 and by $205,986
(34%) in 2000 YTD as a result of an increase in reimbursable operating costs,
specifically property taxes. In September 1999, the Duval County property
appraiser notified the Company of its intention to increase the assessed
valuation of the property by over 175%. The Company filed for a hearing on
the valuation. The Company and the Duval County property appraiser settled
the valuation issue on the eve of the hearing. The result of the settlement
is that the 1999 property tax bill was $488,099, as compared to the $234,305
property tax bill for 1998.
Operating costs decreased $85,458 (16%) to $454,330 in Third Quarter 2000
from $539,788 in Third Quarter 1999 as the increase in property taxes was
offset by reductions in the allocation of corporate costs. Operating costs
decreased $276,113 (14%) to $1,702,414 in 2000 YTD from $1,978,527 in 1999
YTD. In addition to the reductions in allocable costs, the decrease in 2000
YTD was attributable to a reduction in salary expense and professional fees.
Annual bonuses were recorded in the fourth quarter of fiscal 1998, prior to
the Company changing its year-end from June 30 to March 31.
Depreciation and amortization decreased by $9,681 in Third Quarter 2000
to $152,219, as compared to Third Quarter 1999 and decreased $12,337 in 2000
YTD to $463,241 as compared to the same period of the prior year. The net
operating profit of the commercial real estate division increased from
$463,806 in Third Quarter 1999 to $621,764 in Third Quarter 2000. The net
operating profit for 2000 YTD was $1,625,977, compared to $1,026,424 for 1999
YTD.
Other Expense (Income)
The increase in interest expense for both the Third Quarter 2000 and 2000
YTD was related to the line of credit and New York Job Development Authority
loan assumed in the acquisition of Roxbury. Professional fees related to
litigation decreased significantly as a result of the settlement of several
lawsuits. The decrease in interest income is related to the decreased cash
balances from the purchase of treasury stock and the acquisition of Roxbury
Industries, Corp.
Income Taxes
For both the Third Quarter 2000 and 2000 YTD, the provision for income
taxes is greater than the income before income taxes. Roxbury files a
separate income tax return and incurred a loss before income taxes. The
income tax benefit from the loss is limited to the amount of the net deferred
tax liabilities. In the Third Quarter 2000 the Company changed its estimate
of deferred tax liabilities generated from the acquisition of Roxbury. As a
result, the Company increased its valuation allowance for loss carryforwards
by $200,000. The benefit from the losses will be recorded when Roxbury
generates pre-tax income.
Liquidity and Capital Resources
The cash provided by operating activities was $336,384 in 2000 YTD
compared to cash used of $56,244 in 1999 YTD. The Company's operations
provided $835,560 in working capital in 2000 YTD compared to $217,736 of
working capital in 1999 YTD. The increase in net operating assets in 2000
YTD was primarily from an increase in the accounts receivable of Roxbury, as
they moved into their busy season. This increase was partially offset by an
increase in accounts payable. The increase in net operating assets in 1999
YTD was primarily related to the increase in inventory and reduction of
accounts payable of Roxbury immediately after the acquisition.
Property and equipment additions were primarily for equipment used at
Roxbury in 2000 YTD and for equipment used at Imeson Center in 1999 YTD.
Cash of $2,097,073 was used by financing activities in 2000 YTD, as
compared to $1,640,779 in 1999 YTD. The primary use of cash by financing
activities in 2000 YTD was related to the Company purchasing 533,160 shares
of its common stock at an aggregate cost of $1,713,368 and the loan to the
director to exercise stock options. The primary use of cash by financing
activities in 1999 YTD was to acquire 279,318 shares of the Company's common
stock at an aggregate cost of $1,091,950 and the extinguishment of $430,000
in outstanding notes assumed in the Roxbury acquisition.
The Company renewed its $725,000 line of credit with European American
Bank in July. The loan was renewed with $375,000 as a revolving line of
credit and $350,000 as a term loan. The notes are secured by the assets of
Roxbury Industries, Corp. and are personally guaranteed by certain officers
of Roxbury Industries, Corp. The term loan bears interest at the rate of
9.42% and is payable interest only through December 1999. Monthly principal
payments of $6,500 plus interest are payable beginning January 2000 and
continuing through June 2004 when the remaining balance is due. The
revolving line of credit bears interest at 1.5% over the bank's prime rate,
matures on June 30, 2000 and must be paid off for 30 days during the term.
Roxbury was in violation of the financial loan covenants regarding the level
of equity and debt-to-equity ratio at December 31, 1999. Therefore, the
entire amount of the term loan is included in the current portion of long-
term debt.
The Company did not have any material commitments for capital
expenditures as of December 31, 1999 other than for ordinary expenses
incurred during the usual course of business. The Company is looking for
additional tenants for Imeson Center for the remaining 41,000 square feet of
office space. It is expected that any new tenant will require the Company to
incur significant costs related to renovation of the property to meet the
tenant's needs. Additionally, the Company is considering opportunities to
develop outparcels at the Imeson Center. Roxbury is incurring additional
marketing expenses and operating losses as it tries to expand its revenue
base and distribution channels. The Company is expending resources to
identify, evaluate, and negotiate with potential acquisition candidates in
order to expand the Company's business operations into other areas. Any new
business operation will likely involve a substantial commitment of Company
resources and a significant degree of risk. The Company also has potential
liability related to litigation. In addition, the Company has been and may
in the future continue repurchasing shares of its stock. The Company
believes its current liquidity position will be sufficient to meet its needs
for at least the next year. However, any of the above mentioned items could
require significant capital resources in excess of the Company's liquidity,
requiring it to raise additional capital through public or private debt or
equity financing. The availability of these capital sources will depend upon
prevailing market conditions, interest rates, and the then existing financial
position and results of operations of the Company. Therefore, no assurances
can be made by the Company that such additional capital will be available.
PART II - OTHER INFORMATION
Item 1. - Legal Proceedings
No material events have occurred in the Company's ongoing litigation
matters other than those described below. For the history of such
litigation, please refer to the Company's Annual Report on Form 10-KSB for
the fiscal year ended March 31, 1999.
Eisenberg Group
On August 11, 1999, the Company filed suit in the United States District
Court for the Middle District of Florida, Tampa Division, Case No. 99-1776-
CIV-T-25F, against EP Opportunity Fund LLC, Eisenberg Partners LLC, Jeffrey
Eisenberg, Waveland Partners, David Richter, Michael Blechman, and John Doe
Defendant later determined to be GEM Value Fund LP ("the Eisenberg Group").
In the suit, the Company alleges that the Eisenberg Group violated the
Company's Shareholders Rights Plan and failed to file an accurate Schedule 13-
D stating that they were operating as a group under the Securities and
Exchange Act of 1934. The relief sought by the Company includes requiring
the members of the Eisenberg Group to file a Schedule 13-D that accurately
reflects that they are operating as a group and a declaratory judgment that
the Eisenberg Group has triggered the terms of the Shareholders' Rights
Agreement. In September 1999, a settlement was reached with Waveland
Partners, David Richter, and Gem Value Fund LP and these parties were
dismissed from the suit. As a part of the settlement, the Company purchased
the 374,804 shares of its stock owned by these parties for an aggregate cost
of $1,229,826. The suit is still pending against EP Opportunity Fund LLC,
Eisenberg Partners LLC, Jeffrey Eisenberg, and Michael Blechman. The
remaining defendants have filed motions for dismissal and change of venue.
On February 3, 2000, the Court denied Blechman's original and amended Motions
for Protective Order and ordered Blechman to respond to request for discovery
by February 23, 2000.
Securities and Exchange Commission
The oral hearing on the Company's motion for summary judgement was held
on July 16, 1999. No decision has been issued. The trial has not been
scheduled.
Harvey Moore
The Court awarded Harvey Moore fees and costs of $82,246 in October 1998.
The Company and Harvey Moore agreed to an additional $2,000 award for certain
costs that the Court had not ruled upon. Harvey Moore has appealed the
Court's decision.
ASX Investment Corporation
On August 11, 1999, the United States Court of Appeals for the Eleventh
Circuit reversed the District Court's granting of the Company's motion for
dismissal with prejudice under the two dismissal rule. The Company has filed
for dismissal on other grounds.
Item 6. Exhibits and Reports on Form 8-K.
(a) Exhibits
27 Financial Data Schedule
(b) Reports on Form 8-K.
None.
SIGNATURES
In accordance with the requirements of the Exchange Act, the Registrant
caused this report to be signed on its behalf by the undersigned, thereunto
duly authorized.
EXCAL ENTERPRISES, INC.
Registrant
Dated: February 14, 2000 /s/ W. CAREY WEBB
W. Carey Webb
President and Chief Executive Officer
Dated: February 14, 2000 /s/ TIMOTHY R. BARNES
Timothy R. Barnes
Vice President and
Chief Financial Officer
<TABLE> <S> <C>
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<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
CONSOLIDATED FINANCIAL STATEMENTS CONTAINED IN THE COMPANY'S QUARTERLY REPORT ON
FORM 10-QSB FOR THE QUARTER ENDED DECEMBER 31, 1999 AND IS QUALIFIED IN ITS
ENTIRETY BY REFERENCE TO SUCH CONSOLIDATED FINANCIAL STATEMENTS.
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<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> MAR-31-2000
<PERIOD-END> DEC-31-1999
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<RECEIVABLES> 1,711,504
<ALLOWANCES> 103,255
<INVENTORY> 573,969
<CURRENT-ASSETS> 10,524,935
<PP&E> 10,648,070
<DEPRECIATION> 2,072,440
<TOTAL-ASSETS> 20,810,955
<CURRENT-LIABILITIES> 2,419,774
<BONDS> 13,128,673
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<OTHER-SE> 3,913,729
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<CGS> 1,432,461
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