UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 10-QA
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 9
Item 3. Defaults Upon Senior Securities 9
Item 4. Submission of Matters to a Vote of Security 9
Holders
Item 5. Other Information 9
Signatures 9
MARKET DATA CORP.
BALANCE SHEET
Consolidated
(Unaudited)
<TABLE>
<S> <C> <C>
September 30, September 30,
1996 1995
_____________ _____________
ASSETS:
Current Assets:
Cash and cash equivalents $ 76,498 $ 111,021
Accounts receivable 306,443 229,056
Inventory 5,058 6,631
Prepaid expenses 9,088 4,825
Federal Income Tax Receivable 0 18,385
_____________ _____________
Total Current Assets 397,087 369,918
Property and Equipment, net of
accumulated depreciation of
$451,790 117,281 15,589
Other Assets:
Other assets 3,678 56,863
Investment in equity securities 24,000 24,000
Note receivable from InfoPlan 168,826 168,826
Goodwill, net 101,807 0
_____________ _____________
Total Other Assets 298,311 249,689
_____________ _____________
TOTAL ASSETS $ 812,679 $ 635,196
_____________ _____________
LIABILITIES AND STOCKHOLDERS' EQUITY:
Current Liabilities:
Mortgage warehouse credit $ 0 $ 0
Notes payable to a bank 247,000 0
Current maturities of capital
lease obligations 43,808 0
Current maturities of long-term debt 9,537
Accounts payable 436,161 28,506
Accrued expenses 379,088 0
Trust liability 108,235 900
_____________ _____________
Total Current Liabilities $ 1,223,829 $ 29,542
Long-Term Liabilities:
Capital lease obligations,
less current maturities 3,378 0
Long-term debt, less current
maturities 20,693 0
_____________ _____________
Total long-term Liabilities 24,071 0
Commitments and Contingencies:
Reserve for buy-back of mortgages 450,000 0
Stockholders' Equity:
Common stock, .001 par value;
50,000 shares authorized,
16,756,255 shares issued
and outstanding at
June 30, 1996 16,756 5,589
Additional paid-in capital 1,575,464 309,809
Retained earnings (deficit) (2,477,441) 290,256
_____________ _____________
Total Stockholders' Equity (885,221) 605,654
_____________ _____________
TOTAL LIABILITIES
AND STOCKHOLDERS' EQUITY $ 812,679 $ 635,196
============= =============
</TABLE>
MARKET DATA CORPORATION STATEMENT OF OPERATIONS
FOR THE QUARTER ENDED SEPTEMBER 30, 1996
(Unaudited)
<TABLE>
<S> <C> <C>
September 30, September 30,
1996 1995
_____________ _____________
REVENUE:
Loan origination fees $ 125,542 $ 0
Gains on sales of mortgage loans 4,888 0
Initial franchise sales 0 0
Product and software sales 86,983 127,756
Other fees and income 5,952 0
_____________ _____________
Total Revenue 223,355 127,756
OPERATING EXPENSES:
Franchise commissions 69,639 0
Salaries and related benefits 67,771 0
Loan officer commissions 8,558 0
Marketing 6,543 0
Loan processing costs 13,223 0
Other general and administrative 122,984 79,900
Market Data operating costs 8,339 49,027
_____________ _____________
Total Operating Expenses 297,057 128,927
OPERATING (LOSS) (73,702) (1,171)
OTHER INCOME (EXPENSE):
Interest income 713 0
Interest expense (2,048) 0
Loss on buy-back of mortgages 0 0
_____________ _____________
Net Total Other Income (Expense) (1,335) 0
_____________ _____________
NET (LOSS) $ (75,037) (1,171)
_____________ _____________
NET (LOSS) PER COMMON SHARE (.0044) 0
============= =============
</TABLE>
MARKET DATA CORPORATION
STATEMENT OF CASH FLOWS
FOR THE QUARTER ENDED SEPTEMBER 30, 1996 and 1995
(Unaudited)
<TABLE>
<S> <C> <C>
For the six months ending
1996 1995
CASH FLOWS FROM OPERATING ACTIVITIES:
Net (loss) $ (75,037) (903)
Adjustments to reconcile net (loss) to
net cash (used in) operating
activities:
Depreciation and amortization 6,218 11,560
Change in assets and liabilities:
Accounts receivable (9,285) 4,725
Inventory 0 0
Prepaid expense (14,994) (1,916)
Mortgage loans held for sale (2,398,837) (1,062)
Other assets 0 0
Accounts payable and accrued expenses 22,509 16,540
_____________ ____________
Net cash (used in) operating
activities $(2,469,426) (4,136)
CASH FLOWS FROM INVESTING ACTIVITIES:
Reserve for mortgage buy back 0 0
Purchase of goodwill 0 0
_____________ ____________
Net cash (used in) investing
activities 0 0
CASH FLOWS FROM INVESTING ACTIVITIES:
Principal payments on long-term
debt obligations (7,000) 0
Borrowings on mortgage warehouse credit
facility 2,398,837 0
Note payable to an individual 0 0
_____________ ____________
Net cash provided by financing
activities 2,391,837 0
Proceeds from issuance of stock 0 8,158
_____________ ____________
Net decrease in cash and cash
equivalents $ (77,589) 4,022
CASH AND CASH EQUIVALENTS:
Beginning of period 81,207 106,999
_____________ ____________
End of period $ 3,618 $ 111,021
</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 $6,000.
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
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.
2/12/97 Michael F. Pope
(Date) (Signature)
2/12/97 Philip C. LaPuma
(Date) (Signature)
