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: December 31, 1997 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)
(281) 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 989,230
INDEX
MARKET DATA CORP.
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
Balance Sheets (Unaudited): 3
As of December 31, 1997
Statements of Operation (Unaudited): 5
For the Three Months and Six months ended
December 31, 1997
Statement of Cash Flows (Unaudited): 6
For the Three Months Ended December 31, 1997
Article 5 of Regulation S-X, Financial Data Schedule 7
Note to Financial Statements: 8
As of December 31, 1997 (Unaudited)
Item 2. Management's Discussion and Analysis of 9
Financial Condition and Results of Operations
PART II. OTHER INFORMATION
Item 1. Legal Proceedings 11
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 12
MARKET DATA CORP.
BALANCE SHEET
Consolidated
(Unaudited)
<TABLE>
<S> <C> <C>
December 31, December 31,
1997 1996
_____________ _____________
ASSETS:
Current Assets:
Cash and cash equivalents $ 76,682 $ 25,293
Accounts receivable 0 115,790
Inventory 0 5,058
Prepaid expenses 6,950 3,776
_____________ _____________
Total Current Assets 83,632 149,917
Property and Equipment, net of
accumulated depreciation 10,102 150,340
Other Assets:
Other assets 0 3,526
Investment in equity securities 150 24,000
Note receivable from InfoPlan 0 168,826
Goodwill, net 0 85,753
Real Property at acquisition cost 786,699 0
_____________ _____________
Total Other Assets 786,849 282,105
_____________ _____________
TOTAL ASSETS $ 880,583 $ 582,362
_____________ _____________
LIABILITIES AND STOCKHOLDERS' EQUITY:
Current Liabilities:
Accounts payable 41,548 56,701
Accrued expenses 4,416 900
Unearned revenue 13,750
_____________ _____________
Total Current Liabilities $ 45,964 $ 71,351
Long Term Mortgage Debt $ 639,321 0
_____________ _____________
Total Liabilities $ 685,285 $ 71,351
Stockholders' Equity:
Common stock, .001 par value;
50,000 shares authorized,
989,230 shares issued
and outstanding at
December 31, 1997 16,756 21,589
Additional paid-in capital 298,642 504,333
Stock for real estate 156,000 0
Retained earnings (deficit) (276,100) (14,911)
_____________ _____________
Total Stockholders' Equity 195,298 511,011
_____________ _____________
TOTAL LIABILITIES
AND STOCKHOLDERS' EQUITY $ 880,583 $ 582,362
============= =============
</TABLE>
MARKET DATA CORPORATION STATEMENT OF OPERATIONS
FOR THE QUARTER ENDED DECEMBER 31, 1997
(Unaudited)
<TABLE>
<S> <C> <C> <C> <C>
3 Months 3 Months 6 Months 9 Months
Ended Ended Ended Ended
Dec. 31 Dec. 31 Dec. 31 Dec. 31
1997 1996 1997 1996
___________ ___________ ___________ ___________
REVENUES:
Loan origination
fees $ 54,962 $ 51,152 $ 84,752 $ 51,152
Rental income 13,612 0 13,612 0
Marketing Income 144,325 0 144,325 0
Product and
Software sales 60,370 71,407 110,470 178,425
Other fees and
income 38 638 5,163 4,100
___________ ___________ ___________ ___________
Total Revenue 273,307 123,197 358,322 233,677
___________ ___________ ___________ ___________
OPERATING EXPENSES:
Loan officer
commissions 76,050 32,061 103,468 32,061
Loan Processing
costs 4,925 2,582 9,343 2,582
Other general and
administrative 31,888 51,292 42,581 150,051
Operating costs 75,666 52,173 116,221 55,512
___________ ___________ ___________ ___________
Total Operating
Expenses 188,529 138,108 271,612 240,206
___________ ___________ ___________ ___________
OPERATING (LOSS)
Profit 84,778 (14,911) 86,710 (6,529)
NET (LOSS)
PER COMMON SHARE
Before
extraordinary loss 0.086 (0.001) 0.088 0.000
=========== =========== =========== ===========
Weighted Average
Shares
Outstanding 989,230 16,756,000 989,230 16,756,000
=========== =========== =========== ===========
</TABLE>
MARKET DATA CORPORATION
STATEMENT OF CASH FLOWS
FOR THE QUARTER ENDED DECEMBER 31, 1997 and 1996
(Unaudited)
<TABLE>
<S> <C> <C>
For the three months ending
December 31, December 31,
1997 1996
______________ ____________
CASH FLOWS FROM OPERATING ACTIVITIES:
Net (loss) $ 86,711 $ (14,911)
Adjustments to reconcile net (loss) to
net cash (used in) operating
activities:
Depreciation and amortization 0 2,268
(Increase) Decrease in:
Accounts receivable 0 8,158
Officer receivable 0 0
Federal Income tax receivables 0 0
Inventory 0 0
Prepaid expense (6,950) 5,312
Other Assets 0 152
Accounts payable and accrued expenses (15,153) 6,000
Net cash provided (used in)
operating activities (22,103) 6,979
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property and equipment 0 (33,059)
Purchase of Goodwill 0 (45,753)
Organizational Costs 0 0
Advances on note receivable 0 20,628
Net Cash (used in) investing activities 0 (202,184)
Net cash provided by Financing Activities
Proceeds from issuance of stock 0 0
Note payable to bank 0 0
Net increase (decrease) in cash or
cash equivalents 64,608 (51,205)
Beginning of the period 12,074 76,498
Cash and Cash Equivalents -
End of Period $ 76,682 $ 25,293
</TABLE>
MARKET DATA CORP.
NOTE TO FINANCIAL STATEMENTS
December 31, 1997
(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 six months ending December 31, 1997, the Company
outlook changed significantly due to the benefits of
reorganization and the concentration on four main business lines,
the text service division, the mortgage lending division, the
real estate division, and the direct mail marketing division.
During the three months period ending December 31, 1997, the
Company experienced a net increase in cash of $64,608.
The text service division a quarterly profit of $12,464 and a six
month profit of $15,805.
The mortgage lending division has a profit of $3,645 for the
quarter and $2,272 for six months ending December 31, 1997.
The real estate division has a profit of $2,982 for the quarter
and a ($1,367) loss for the six months ending December 31, 1997.
The direct mail marketing division has a profit of $65,688 for
the quarter and $70,001 for the six months ending December 31,
1997.
Result of Operations
Text Services Division:
Text Services revenue was $60,370 for the quarter down $11,573 or
16% from the same period last year. Text services had an uneven
quarter with continued decline in revenue from the Prodigy
contract, but slight increases in direct web site revenues.
Operating expenses declined slightly compared to last quarter and
the same period last year. The text division is testing a paper
printed version of the Wall Street Whispers newsletter. This
test will take place over the first six months of 1998.
Mortgage Lending Division:
The revenue for the quarter was $54,540 up 88% from the previous
quarter. This was a reflection of declining mortgage rates.
The mortgage lending is still small compared to prior years, but
with continued low interest rates a measured growth in revenues
is likely over the next year.
Real Estate Division:
The real estate division acquired seven single family rental
properties in August 1997. Three are located in Loughlin, Nevada
and four in Southern California. The real estate market has
turned around in California and property values appear to be
increasing again after a substantial decline. The properties
should appreciate, and at a minimum maintain their value over the
next year. It is managements intent to buy and sell properties
periodically in this division. This will build the asset base of
the company and establish asset growth opportunities.
Direct Mail Marketing Division:
The Company's joint venture with Signature Marketing Inc. began
in April 1997. The purpose of the Joint Venture is to provide
direct mail services to mortgage retailers. Time lending
provides accounting, technical support, and sales, while
Signature provides sales, production, and capital. The resultant
profits are split 50/50. All figures shown here are the
Company's share only.
For the quarter ending December 31, 1997, the division produced
$144,325 in revenue for the Company. This quarter reflects
seasonal highs for direct mail. The next quarter (January -
March) normally are the slow months and a significate decline is
anticipated. Overall, the direct mail division shows potential
for growth with low interest rates and increased mortgage
business driving the market place. There is no comparison to
last year as this is a new product line.
Subsequent Events:
None
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. Defaults upon Senior Securities
None
Item 5. Other Information
Subsequent Events:
The stock reverse was effective July 1, 1997 with the stock being
reversed 20:1. This was included with the name change to Time
Financial Services, Inc. Therefore, twenty shares of common for
Financial Services, Inc. common. The stock symbol has been
changed to "TIMF".
Other items:
84,000 shares of treasury common stock were issued to Ward
Enterprises for consulting services. 5000 shares of treasury
common were issued to McFarland, Grossman & Co. to settle a
$40,000 debt incurred with the Renet merger. McFarland also
exercised their option for an additional 5,000 shares.
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)
03/04/98 Michael F. Pope
(Date) (Signature)
03/04/98 Philip C. LaPuma
(Date) (Signature)
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> JUN-30-1997
<PERIOD-END> DEC-31-1997
<CASH> 76,682
<SECURITIES> 150
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 83,632
<PP&E> 10,102
<DEPRECIATION> 0
<TOTAL-ASSETS> 880,583
<CURRENT-LIABILITIES> 45,964
<BONDS> 0
16,756
0
<COMMON> 0
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 880,583
<SALES> 358,322
<TOTAL-REVENUES> 358,322
<CGS> 0
<TOTAL-COSTS> 271,612
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 86,710
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 86,710
<EPS-PRIMARY> 00.088
<EPS-DILUTED> 00.008
</TABLE>
