UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 10-QSB
QUARTERLY REPORT UNDER SECTION 13 OR 15 (D) OF
THE SECURITIES EXCHANGE ACT OF 1934
Quarter: March 31, 1999 Commission File Number:33-22264-FW
TIME FINANCIAL SERVICES, INC.
_________________________________________________________________
(Exact name of registrant as specified in its charter)
NEVADA 33-0840184
_________________________________________________________________
(State or other jurisdiction (I.R.S. Employer incorporation
of organization) or Identification No.)
1182 N. Tustin Street, Orange, CA 92806
_________________________________________________________________
(Address of principal executive offices)
(714) 288-5901
_________________________________________________________________
(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, 1998, are as follows:
Class of Securities: Shares Outstanding:
Common Stock, $.001 par value 1,235,744
INDEX
TIME FINANCIAL SERVICES, INC.
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
Balance Sheets (Unaudited): 3
As of March 31, 1999
Statements of Operation (Unaudited): 5
For the Three Months and Nine months
ended March 31, 1999
Statement of Cash Flows (Unaudited): 6
For the Three Months and Nine Months Ended
March 31, 1999
Note to Financial Statements: 8
As of March 31, 1999 (Unaudited)
Item 2. Management's Discussion and Analysis of 9
Financial Condition and Results of Operations
PART II. OTHER INFORMATION
Item 1. Legal Proceedings 10
Item 2. Change in Securities 10
Item 3. Defaults Upon Senior Securities 10
Item 4. Submission of Matters to a Vote of Security 10
Holders
Item 5. Other Information 10
Signatures 11
TIME FINANCIAL SERVICES, INC.
BALANCE SHEET
CONSOLIDATED
(Unaudited)
<TABLE>
<S> <C> <C>
March 31, March 31,
1999 1998
_____________ _____________
ASSETS:
Current Assets:
Cash and cash equivalents $ 99,040 $ 39,851
Accounts receivable 0 0
Inventory 0 0
Prepaid expenses 800 3,335
_____________ _____________
Total Current Assets 99,840 43,186
Property and Equipment, net of
accumulated depreciation 7,489 10,102
Other Assets:
Investment in equity securities 0 150
Employee Advances 5,000 0
Real Property at Acquisition Cost 491,699 786,849
_____________ _____________
Total Other Assets 496,699 786,849
_____________ _____________
TOTAL ASSETS $ 604,028 $ 840,137
_____________ _____________
LIABILITIES AND STOCKHOLDERS' EQUITY:
Current Liabilities:
Notes Payable to a bank $ 0 0
Accounts payable 11,611 8,185
Accrued expenses 8,355 0
Current Portion of Long Term Debt 5,255 0
_____________ _____________
Total Current Liabilities $ 25,221 $ 8,185
Long Term Liabilities
Long Term Mortgage Debt 442,063 639,321
_____________ _____________
Total Liabilities $ 467,284 $ 647,506
Stockholders' Equity:
Common stock, .001 par value;
5,000,000 shares authorized,
1,205,744 shares issued
and outstanding at
Sept 30, 1998 (see Note 1) 83,000 16,756
Additional paid-in capital 459,703 298,642
Stock for Real Estate 156,000 156,000
Retained earnings (deficit) (561,959) (278,767)
_____________ _____________
Total Stockholders' Equity 136,744 192,631
_____________ _____________
TOTAL LIABILITIES
AND STOCKHOLDERS' EQUITY $ 604,028 $ 840,137
============= =============
</TABLE>
Note 1: Changes in Stockholders Equity was due to issuance of
shares for real estate and payment of debt as discussed in the
December 1997, 10Q and the June 1998 10KSB.
TIME FINANCIAL SERVICES, INC.
STATEMENT OF OPERATIONS
FOR THE QUARTER ENDED MARCH 31, 1999
(Unaudited)
<TABLE>
<S> <C> <C> <C> <C>
3 Months 3 Months 9 Months 9 Months
Ended Ended Ended Ended
Mar. 31 Mar. 31 Mar. 31 Mar. 31
1999 1998 1999 1998
___________ ___________ ___________ __________
REVENUES:
Loan origination
fees $ 59,244 $ 38,037 $ 225,639 $ 123,089
Rental income 11,531 11,363 30,886 24,975
Marketing Income 134,769 76,606 216,561 202,483
Product and
Software sales 33,563 47,017 100,599 176,249
Other fees and
income 0 0 30,000 3,910
___________ ___________ ___________ ___________
Total Revenue 239,108 173,023 684,895 530,706
___________ ___________ ___________ ___________
OPERATING EXPENSES:
Loan officer
commissions 52,036 57,590 205,830 160,057
Loan Processing
costs 8,221 20,570 40,569 14,685
Other general and
administrative 150,476 44,902 313,909 213,180
Operating costs 35,276 49,855 110,940 101,995
__________ ___________ ___________ ___________
Total Operating
Expenses 246,009 172,916 671,248 489,917
___________ ___________ __________ ___________
OPERATING (LOSS)
Profit (6,901) 107 13,647 40,789
NET (LOSS)
PER COMMON SHARE
Before
extraordinary loss (0.0056) 0.0001 0.0110 0.0406
=========== =========== =========== ==========
Net Total Other
Income
(Expense) 0 40 0 78
NET INCOME
(LOSS) (6,901) 147 13,647 40,868
NET (LOSS)
PER COMMON
SHARE (0.0056) 0.00015 0.0110 0.0406
Weighted Average
Shares
Outstanding 1,235,744 1,005,744 1,235,744 1,005,744
=========== =========== =========== ===========
</TABLE>
TIME FINANCIAL SERVICES
STATEMENT OF CASH FLOWS
FOR THE QUARTER ENDED MARCH 31, 1999 AND 1998
(Unaudited)
<TABLE>
<S> <C> <C>
For the three months ending
1999 1998
OPERATING ACTIVITIES
Net (loss) (6,901) 147
Adjustments to reconcile net (loss)
to net cash (used in) operating
activities:
Depreciation and amortization 0 0
Change in assets and liabilities:
Accounts receivable 0 0
Inventory 0 0
Prepaid expenses 2,923 0
Other assets 0 0
Accounts payable and
accrued expenses 366 (33,363)
__________ __________
Net Cash (used in) operating
activities (3,612) (36,831)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of Property 0 0
Purchases of Goodwill 0 0
Investment Securities 0 0
Proceeds from issuance of stock 0 0
__________ __________
Net cash used in Investing Activities 0 0
NET CASH PROVIDED BY FINANCING ACTIVITIES 0 0
Proceeds form issuance os stock 0 0
Mortgage payable (278) 0
__________ __________
Net decrease in cash and cash equivalents (3,890) (36,831)
Beginning of period 102,929 76,682
__________ __________
End of period $ 99,040 $39,851
========== ==========
</TABLE>
TIME FINANCIAL SERVICES, INC.
NOTE TO FINANCIAL STATEMENTS
MARCH 31, 1999
(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.
Part I.
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations.
Liquidity and Capital Resources
During the quarter ending March 31, 1999, the company maintained
its healthy cash position. The Company's cash and liquidity was
reduce only slightly, ($3,890) or 3.8% for the quarter ended March
31, 1999 to an ending balance of $99,040. This is a 148% increase
over the same period last year.
For the nine months ending March 31, 1999, the Company remains
profitable $13,647 compared to $40,789 for the nine months ended
March 31, 1998. Revenues increased $154,189 or 29% for the nine
months ended March 31, 1999 compared to the nine months ended March
31, 1998. Operating expenses increased $181,331 or 37% for the
nine months ended March 31, 1999 compared to the nine months ended
March 31, 1998. The increase in expenses was primarily in loan
commission paid and the JV Marketing operating costs. The
maintenance of the public company cost ($6,477) for the quarter
ending March 31, 1999.
Results of Operations
Text Services Division:
Management found a buyer for the publication, "Wall Street
Whispers." The buyer is Lela Elliot of Houston, Texas. Its
revenue was $33,563 for the quarter. This is down (13,454) or
28.6% from the same period last year. The text division lost
($1,713) for the quarter ending March 31, 1999. See "Subsequent
events" below.
Time Lending Mortgage Division
The lending revenue was $59,244 for the quarter ended March 31,
1999, compared to $38,037 for the quarter ended March 31, 1998, an
increase of $21,207 or 55%. Revenues were up 3.5% from the quarter
ended December 31, 1998. The mortgage lending division contributed
$1,805 in profits for the period ending March 31, 1999.
Real Estate Division
There were no real estate sales or purchases for the quarter ended
March 31, 1999. Management's goal is to sell a property
periodically and invest the cash in hard money mortgages or new
properties.
The California and Nevada real estate markets continue to be strong
and should continue to be strong through the last half of 1999.
For the quarter ending March 31, 1999 expenses exceeded revenue in
this division by ($4,194).
Direct Mail Division
The Company's revenue from the joint venture with Signature
Marketing Inc., increased 35% for the quarter ended March 31, 1999
compared to the quarter ended December 31, 1998, and up 76% over
the quarter ended March 31, 1998. The mortgage market moved to
streamline FHA/VA loans, which should begin in early summer.
Fortunately, the mortgage industry will move to another type of
loan and direct mail will be used. There is usually a 30 to 60 day
period when sales decline as mortgage companies adjust.
The direct mail division contributed $3,678 to the profit for the
quarter ended March 31, 1999.
Subsequent Events:
"Wall Street Whispers" was purchases by Lela Elliot of Houston,
Texas effective June 1, 1999. The Company was given a note for
$120,000 repayable at an average $5,000 per month over 24 months.
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
None
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.
Time Financial Services, Inc.
(Registered)
07/07/99 Michael F. Pope
(Date) (Signature)
Philip C. LaPuma
(Signature)
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> JUN-30-1999
<PERIOD-END> MAR-31-1999
<CASH> 99,040
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 99,840
<PP&E> 499,188
<DEPRECIATION> 0
<TOTAL-ASSETS> 604,028
<CURRENT-LIABILITIES> 25,221
<BONDS> 0
0
0
<COMMON> 83,000
<OTHER-SE> 37,018
<TOTAL-LIABILITY-AND-EQUITY> 587,301
<SALES> 239,108
<TOTAL-REVENUES> 239,108
<CGS> 0
<TOTAL-COSTS> 24,609
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> (6,901)
<INCOME-TAX> 0
<INCOME-CONTINUING> (6,901)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (6,901)
<EPS-BASIC> (0.01)
<EPS-DILUTED> (0.01)
</TABLE>
