UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
QUARTERLY REPORT UNDER SECTION 13 OR 15 (d) OF
THE SECURITIES EXCHANGE ACT OF 1934
For the quarter ended September 30, 1995 Commission File Number 000-18389
WORLD WIDE STONE CORPORATION
(Exact Name of Registrant as Specified in its Charter)
NEVADA 33-0297934
(State or Other Jurisdiction of I.R.S. Employer Identification
Incorporation or Organization) Number)
2150 W. University Drive, Tempe, AZ 85281
(Address of Principal Executive Offices) (Zip Code)
602-966-0047
(Registrant's Telephone Number, Including Area Code)
Not Applicable
(Former name, former address and former fiscal year)
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 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_____ No_X___
As of September 30, 1995, there were 32,225,868 shares of common stock
outstanding.
Documents Incorporated by Reference
None
(Page 1 of 8 Pages)
<PAGE>
World Wide Stone Corporation
Index
Part I. Financial Information
Item 1. Financial Statements
Interim Consolidated Balance Sheet...................... 3
Interim Consolidated Statement of Income................ 5
Notes to Financial Statements........................... 6
Item 2. Management's Discussion and Analysis of
Financial Condition and Operating Results............... 6
Part II. Other Information....................................... 6
(Page 2 of 8 Pages)
<PAGE>
Murray Peck, P.C.
Certified Public Accountants
5110 North Central, Suite 320
Phoenix, Arizona 85012
Phone (602) 274-1960 - Fax (602) 274-1986
To the Board of Directors
World Wide Stone Corporation, Inc.
We have compiled the accompanying balance sheet of World Wide Stone Corporation,
Inc. as of September 30, 1995, and the related statement of income for the three
months and nine months then ended, in accordance with Statements on Standards
for Accounting and Review Services issued by the American Institute of Certified
Public Accountants.
A compilation is limited to presenting in the form of financial statements
information that is the representation of management. We have not audited or
reviewed the accompanying financial statements and, accordingly, do not express
and opinion or any other form of assurance on them.
Management has elected to omit substantially all of the disclosures and the
statement of cash flows required by generally accepted accounting principles. If
the omitted disclosures and the statement of cash flows were included in the
financial statements, they might influence the user's conclusions about the
Company's financial position, results of operations, and cash flows.
Accordingly, these financial statements are not designed for those who are not
informed about such matters.
Date: November 12, 1995 Murray Peck, P.C.
Certified Public Accountants
BY: /s/Murray Peck
---------------------------
Murray Peck, CPA, President
(Page 3 of 8 Pages)
<PAGE>
WORLD WIDE STONE CORPORATION
BALANCE SHEET
September 30, 1995
ASSETS
Current assets
Cash $ 150,958
Accounts receivable 95,804
Investments - Mexico 75,501
Due from Mexican subsidiary 42,947
Intercompany receivable - due from Mexico 32,967
Inventory 187,352
Prepaid expenses - IVA/other 7,183
Prepaid expenses 206,870
Loans to employees 20,043
Shareholder loans 70,052
----------
Total current assets 889,677
Property and equipment
Mexican land and building 1,750,000
Sierra Piedra 1,294,560
Mex Marmoles Muguiro 273,589
Furniture and equipment 56,403
Accumulated depreciation (443,942)
----------
Net property and equipment 2,930,610
Other assets
Organization costs 104
Prepaid rent 1,563
Rental deposit 1,563
----------
Total other assets 3,230
----------
Total assets $3,823,517
==========
(See Accountant's Report)
(Page 4 of 8 Pages)
<PAGE>
WORLD WIDE STONE CORPORATION
BALANCE SHEET
September 30, 1995
LIABILITIES AND EQUITY
Liabilities
Current liabilities
Accounts payable - USA $ 51,748
Accounts payable - Mexico - due to USA 32,967
Accounts payable - vendors 12,103
Accrued payroll taxes 19,555
Accrued interest 7,956
Loan payable - various creditors 91,991
Assessments payable 1,870
Due to Felipe 11,480
Loan payable - G&C Partners 35,000
Due to M. Cunningham 14,949
Loan payable - truck 15,915
Loan payable - vehicle 10,741
Bank loan - current 718,744
---------------
Total current liabilities 1,025,019
---------------
Equity
Translation adjustment 268,248
Common stock 27,826
Additional paid in capital 6,624,609
Retained earnings (4,087,912)
Current period earnings (34,273)
---------------
Total equity 2,798,498
Total liabilities and equity $ 3,823,517
===============
(See Accountant's Report)
(Page 5 of 8 Pages)
<PAGE>
WORLD WIDE STONE CORPORATION
STATEMENT OF INCOME
Periods ended September 30, 1995
Three months Nine months
------------ -----------
Income
Sales $ 231,015 $687,784
Cost of sales 105,729 333,454
--------- ---------
Gross profit 125,286 354,330
Expenses
Depreciation 46,632 139,896
Wages 30,703 82,808
Advertising 8,022 15,069
Auto 2,310 6,045
Bank charges 189 634
Dues 103 1,260
Equipment rental 432 432
Freight 25,008 40,011
Education 0 975
Insurance 1,725 6,098
Legal and accounting 4,124 11,969
Licenses and permits 205 677
Merchant charges 494 494
Office 4,081 20,699
Office supplies 1,100 1,827
Outside services 5,268 5,268
Postage 1,462 3,093
Rent 4,679 12,993
Repairs 387 522
Supplies 9,752 10,580
Taxes - payroll 745 14,505
Taxes - sales 2,364 3,147
Telephone 2,808 8,050
Travel 7,249 17,483
Utilities 590 1,680
Miscellaneous 0 (13,941)
--------- ---------
Total expenses 160,432 392,274
Other income (expense)
Interest income 281 578
Other income 0 3,093
--------- ---------
Total other income (expense) 281 3,671
--------- ---------
Net income (loss) $ (34,865) $(34,273)
========= =========
(Page 6 of 8 Pages)
<PAGE>
Notes to Financial Statements (Unaudited)
Note 1. The accompanying financial statements have been compiled to the best of
Management's knowledge and belief, and reflect the Company's financial condition
for the reported period. The financial statements have not been audited or
reviewed. Auditing procedures could reveal material differences from the
compiled quarterly financial statements but the Registrant is not aware of any
material modifications that should be made to these compiled financial
statements.
The information presented within this report should be read in conjunction
with the Registrant's 1995 10-K filed jointly with this report.
No comparison of quarterly results with prior quarters or year to date
information has been offered. The Registrant believes that this information at
the date of this filing could be misleading to the reader. (See 1995 10-K.)
Item 2. Management's Discussion And Analysis of Financial Condition and Results
of Operations
Results of Operations
- ---------------------
The activities of the Company during the third quarter were focused on
improving both quality and quantity of production at the Mexican facilities,
improving training and work environment for all employees, penetration of the
local Arizona market, and quarry development and improvement.
Production volume continued to rise in the third quarter due to emphasis on
improvement in training of management and employees, better utilization of space
and equipment, continuous improvement in the manufacturing process, as well as
quarry development and exploration. The showroom and warehouse operation in
Tempe, Arizona, has contributed toward greater penetration of the Arizona
market, which allowed an increase in the margin of profit.
Management continued its commitment in the third quarter to developing
effective ways of fostering continuous improvement of quality. The training
program based on Control Systems Theory was continued. This approach was
developed by Dr. William Glasser and is consistent with the work of W. Edwards
Deming. As adopted by World Wide Stone, Control Theory Management involves
active interest by management in the needs of the workers, a participatory
environment, empowerment for decision-making, and emphasis on personal
responsibility. This approach is thought to be appropriate in multi-cultural
settings and was instituted both in the U.S. and Mexico.
Liquidity and Capital Resources
- -------------------------------
The Company cash flow is sufficient to maintain operations. Expansion of
operations may be financed by debt or equity investment and in part by retained
earnings. (See 1995 10-K.)
Part II - Other Information
Item 1. Legal Proceedings.
None
Item 2. Changes in Securities.
None
Item 3. Defaults Upon Senior Securities.
None
Item 4. Submission of Matters to a vote of Security Holders
None
(Page 7 of 8 Pages)
<PAGE>
Item 5. Other Information
None
Item 6. Exhibits and Reports on Form 8-K
None
Signature
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto authorized.
Date: March 26, 1996 World Wide Stone Corporation
(Registrant)
BY: /s/Franklin Cunningham/
--------------------------------
Franklin Cunningham, President
(Page 8 of 8 Pages)
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<ARTICLE> 5
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<CURRENCY> U.S. Dollars
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-START> JAN-01-1995
<PERIOD-END> SEP-30-1995
<EXCHANGE-RATE> 1
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0
0
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