UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 10-Q
QUARTERLY REPORT UNDER SECTION 13 OR 15 (D) OF
THE SECURITIES EXCHANGE ACT OF 1934
Quarter: September 30, 1996 Commission File Number:33-22264-FW
MARKET DATA CORP.
_________________________________________________________________
(Exact name of registrant as specified in its charter)
TEXAS 76-0252235
_________________________________________________________________
(State or other jurisdiction (I.R.S. Employer incorporation
of organization) or Identification No.)
14505 Torrey Chase Blvd., Suite 410,
Houston, Texas 77014
_________________________________________________________________
(Address of principal executive offices) (Zip Code)
(713) 586-8686
_________________________________________________________________
(Registrant's telephone number, including area code)
Indicate by check mark whether the registrant (1) has filed
all reports required to be filed by Section 13 or 15(d) of the
Securities Exchange Act of 1934 during the preceding 12 months
(or for such shorter period that the registrant was required to
file such reports), and (2) has been subject to such filing
Requirements for the past 90 days.
X Yes No
_____ _____
The number of shares outstanding of each of the issuer's
classes of stock, as of September 30, 1996, are as follows:
Class of Securities: Shares Outstanding:
Common Stock, $.001 par value 16,756,000
INDEX
MARKET DATA CORP.
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
Balance Sheets (Unaudited): 3
As of September 30, 1996
Statements of Operation (Unaudited): 5
For the Three Months ended September 30, 1996
Statement of Cash Flows (Unaudited): 6
For the Three Months Ended September 30, 1996
Note to Financial Statements: 7
As of September 30, 1996 (Unaudited)
Item 2. Management's Discussion and Analysis of 8
Financial Condition and Results of Operations
PART II. OTHER INFORMATION
Item 1. Legal Proceedings 9
Item 2. Change in Securities 11
Item 3. Defaults Upon Senior Securities 11
Item 4. Submission of Matters to a Vote of Security 11
Holders
Item 5. Other Information 11
Signatures 11
<TABLE>
MARKET DATA CORP.
BALANCE SHEET
(Unaudited)
<S> <C>
Three months ending
September 30,
1996
_____________
ASSETS:
Current Assets:
Cash and cash equivalents $ 76,498
Accounts receivable 306,443
Inventory 5,058
Prepaid expenses 9,088
Mortgage loans held for sale 0
_____________
Total Current Assets 397,087
Property and Equipment, net of accumulated
depreciation of $451,790 117,281
Other Assets:
Other assets 3,678
Investment in equity securities 24,000
Note receivable from InfoPlan 168,826
Goodwill, net 101,807
_____________
Total Other Assets 298,311
_____________
TOTAL ASSETS $ 812,679
_____________
LIABILITIES AND STOCKHOLDERS' EQUITY:
Current Liabilities:
Mortgage warehouse credit $ 0
Notes payable to a bank 247,000
Current maturities of capital
lease obligations 43,808
Current maturities of long-term debt 9,537
Accounts payable 436,161
Accrued expenses 379,088
Trust liability 108,235
_____________
Total Current Liabilities $ 1,223,829
Long-Term Liabilities:
Capital lease obligations,
less current maturities 3,378
Long-term debt, less current
maturities 20,693
_____________
Total long-term Liabilities 24,071
Commitments and Contingencies:
Reserve for buy-back of mortgages 450,000
Stockholders' Equity:
Common stock, .001 par value; 50,000 shares
authorized, 16,756,255 shares issued
and outstanding at June 30, 1996 16,756
Additional paid-in capital 1,575,464
Retained earnings (deficit) (2,477,441)
_____________
Total Stockholders' Equity (885,221)
_____________
TOTAL LIABILITIES
AND STOCKHOLDERS' EQUITY $ 812,679
=============
</TABLE>
MARKET DATA CORPORATION
STATEMENT OF OPERATIONS
FOR THE QUARTER ENDED SEPTEMBER 30, 1996
(Unaudited)
<TABLE>
<S> <C>
September 30,
1996
_____________
REVENUE:
Loan origination fees $ 125,542
Gains on sales of mortgage loans 4,888
Initial franchise sales 0
Product and software sales 86,983
Other fees and income 5,952
_____________
Total Revenue 223,355
OPERATING EXPENSES:
Franchise commissions 69,639
Salaries and related benefits 67,771
Loan officer commissions 8,558
Marketing 6,543
Loan processing costs 13,223
Other general and administrative 122,984
Market Data operating costs 8,339
_____________
Total Operating Expenses 297,057
OPERATING (LOSS) (73,702)
OTHER INCOME (EXPENSE):
Interest income 713
Interest expense (2,048)
Loss on buy-back of mortgages 0
_______________
Net Total Other Income (Expense) (1,335)
_______________
NET (LOSS) $ (75,037)
_______________
NET (LOSS) PER COMMON SHARE (.0044)
===============
</TABLE>
MARKET DATA CORPORATION
STATEMENT OF CASH FLOWS
FOR THE QUARTER ENDED SEPTEMBER 30, 1996
(Unaudited)
<TABLE>
<S> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net (loss) $ (75,037)
Adjustments to reconcile net (loss) to
net cash (used in) operating activities:
Depreciation and amortization 6,218
Change in assets and liabilities:
Accounts receivable (9,285)
Inventory 0
Prepaid expense (14,994)
Mortgage loans held for sale (2,398,837)
Other assets 0
Accounts payable and accrued expenses 22,509
_____________
Net cash (used in) operating activities $(2,469,426)
CASH FLOWS FROM INVESTING ACTIVITIES:
Reserve for mortgage buy back 0
Purchase of goodwill 0
_____________
Net cash (used in) investing activities 0
CASH FLOWS FROM INVESTING ACTIVITIES:
Principal payments on long-term
debt obligations (7,000)
Borrowings on mortgage warehouse credit
facility 2,398,837
Note payable to an individual 0
______________
Net cash provided by financing activities 2,391,837
______________
Net decrease in cash and cash equivalents $ (77,589)
CASH AND CASH EQUIVALENTS:
Beginning of period 81,207
______________
End of period $ 3,618
</TABLE>
MARKET DATA CORP.
NOTE TO FINANCIAL STATEMENTS
SEPTEMBER 30, 1996
(Unaudited)
The financial information included herein is unaudited; however,
such information reflects all adjustments (consisting solely of
normal recurring adjustments) which are, in the opinion of
management, necessary for a fair statement of results for the
interim period. Such results are not necessarily indicative of a
full year's operation.
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations.
Liquidity and Capital Resources
During the three month period ending September 30, 1996, the
Company experienced a net decrease in cash of ($77,589). Text
services produced positive cash of $5,583 from operations, its
accounts receivable increased $14,185; $1,657 from officers
payable; resulting in net cash of ($4,677) from text services.
The Renet Division has a net loss of ($80,620) for the quarter.
There was an increase in accounts payable by $22,509 and the bank
debt was paid down by $7,000.
The Company initiated its recapitalization with the help of its
investment advisor, Robert Cashman. Mr. Cashman is the owner of
Pacific Envelop, a Commissioner of the Orange County Airport, and
has assisted many public companies in their recapitalization.
Results of Operations
Text service:
Text service revenue was $90,437 for the quarter, down 23% from
the previous quarter. This decline was due to a loss of
subscribers on the Prodigy contract and minimal software sales.
The software sales have been essentially phased out, due to the
change in software supplier commission structures that made sales
unprofitable. Text services expenses for the quarter were down
28%, this resulted in a product line profit of $5,583, or 6% of
sales, for the first time in many quarters.
Renet Division:
The Renet Division continued its down sizing. Revenues were
$132,882 for the quarter and operating expenses were $212,167,
resulting in an operating loss of ($79,285). The Renet
Division's total loss was ($80,620).
Combined, the Company lost ($75,037) for the quarter. This
represents a loss of ($.0044) per share.
The Renet Division sold all loans held in its warehouse line of
credit and closed its funding division.
Subsequent Events:
Have been described in the 8K dated November 26, 1996
PART II. OTHER INFORMATION
Item 1. Legal Proceedings
InfoPlan International, Inc.
InfoPlan International, Inc. failed to meet the terms of the
repayment schedule previously agreed to on November 4, 1994. On
June 16, 1995 demand was made for repayment, in full of all
monies owed the Company by InfoPlan. On September 25, 1995 the
Complaint was filed in Federal Court.
Michael J. Wing, President of InfoPlan, signed an Agreed
Judgement for actual damages in the amount of $358,394.82,
attorney fees in the amount of $9,442.13, pre-judgment interest
in the amount of $6,598.39 and post-judgment interest at the rate
allowed by law. The Agreed Judgment, entered on November 27,
1995, was final as of December 27, 1995. Mr. Wing was notified
by legal counsel, Sheinfeld, Maley & Kay, Houston, Texas, on
January 10, 1996, that MDC was prepared to abstract judgment in
each county where Mr. Wing or InfoPlan owns property, and to file
a writ of execution and bill of sale.
On February 9, 1996, Mr. Steven C. Naremore, on behalf of MDC,
and Mr. Michael J. Wing, on behalf of InfoPlan, signed a Covenant
Not To Execute. On February 12, 1996, MDC received a payment
from InfoPlan in the amount of $147,000.00. The balance of
principal, $211,394.82, attorney fees, pre-judgment interest, and
post-judgment interest will be paid in installments on May 31,
1996, July 31, 1996, and Sept. 30, 1996. InfoPlan failed to meet
the installments and, the Agreed Judgment may be executed without
notice.
Market Data Corp. of New York
On July 17, 1995, the Company received a proposed Settlement
Agreement from Market Data Corporation (MDC) of New York, who
previously had contacted the Company regarding a potential "name"
conflict. MDC of New York asserted that their use of the name
preceded the Company's use by a matter of months and had
requested the Company consider a name change. On October 27,
1995, the settlement agreement was accepted and signed by Steven
C. Naremore, President. The agreement provides the Company
$27,500, in two installments of $13,750 each, to cover related
expenses. On December 8, 1995, the first installment was
received. To avoid legal action, by either party, the Company
has agreed to change its name, pending shareholder approval.
Current Legal Matters Concerning Renet Financial Division:
The following is a list of stipulated judgments incurred by the
Renet division due to their downsizing and closing of branch
offices:
1) WCB Thirteen Limited Partnership - For lease payments
remaining on the Anaheim office. Judgment is for $36,000, to be
paid in three payments beginning March 15, 1996. As of May 30,
1996, the balance due was $0.
2) Mission Airport, Inc. - For lease payments remaining on the
Ontario office. Judgment is for $39,960, with payments of $2,220
beginning June 1995.
3) Western Security Mortgage - For commission dispute. Judgment
is for $12,500, with payments of $750 beginning April 1, 1996.
4) Federal Express Corp. - For courier service. Judgment is for
$11,219.37, with payments of $1,000 per month beginning February
1996.
There has been no significant change in other legal matters at this time.
Item 2. Changes in Securities
None
Item 3. Submission of Matters to a Vote of Securities Holders
None
Item 4. Submission of Matters to a Vote of Securities Holders
None
Item 5. Other Information
Since the filing of the Company 10K and subsequent 8K, there have
been no material changes with respect to pending proceedings
other than that set forth above.
SIGNATURES
Pursuant to the requirements of the Securities and Exchange Act
of 1934, as amended, the Registrant has caused this report to be
signed on its behalf by the undersigned duly authorized persons.
Market Data Corp.
(Registrant)
12/23/96 Michael F. Pope
(Date) (Signature)
12/23/96 Philip C. LaPuma
(Signature)
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> JUN-30-1997
<PERIOD-END> SEP-30-1996
<CASH> 76,498
<SECURITIES> 0
<RECEIVABLES> 306,443
<ALLOWANCES> 0
<INVENTORY> 5,058
<CURRENT-ASSETS> 397,087
<PP&E> 481,790
<DEPRECIATION> 364,509
<TOTAL-ASSETS> 812,679
<CURRENT-LIABILITIES> 1223829
<BONDS> 0
0
0
<COMMON> 16,756
<OTHER-SE> 772,303
<TOTAL-LIABILITY-AND-EQUITY> 812,679
<SALES> 212,525
<TOTAL-REVENUES> 223,355
<CGS> 0
<TOTAL-COSTS> 297,057
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 2048
<INCOME-PRETAX> (75037)
<INCOME-TAX> 0
<INCOME-CONTINUING> (75,037)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (75,037)
<EPS-PRIMARY> (.004)
<EPS-DILUTED> (.004)
</TABLE>
