FORM 10-Q/A
SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
for the quarterly period ended: September 30, 1997
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period from.................to..................
Commission file number: 33-31639
Finca Consulting, Inc.
(Exact name of registrant as specified in its Charter)
Colorado 84-1101572
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
Koenigsallee 106, 40215 Duesseldorf, Germany
(Address of principal executive offices) (Zip Code)
(011-49-211) 384860
(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 filed such reports), and (2) has been subject to such
filing requirements for the past 90 days.
Yes.X.. No....
APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY
PROCEEDINGS DURING THE PRECEDING FIVE YEARS:
Indicate by check mark whether the registrant has filed all documents
and reports required to be filed by Section 12, 13 or 15(d) of the Securities
Exchange Act of 1934 subsequent to the distribution of securities under a plan
confirmed by a court.
Not applicable.
APPLICABLE ONLY TO CORPORATE ISSUERS:
As of September 30, 1997, 10,558,531 shares of Registrant's Common
Stock, $.01 par value, were issued and outstanding.
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Finca Consulting, Inc. and Subsidiaries
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
The following discussion should be read in conjunction with
the Financial Statements and notes thereto included in Item 1 above.
Fiscal Year 1997 vs. Fiscal Year 1996
Results of Operations
Substantially all of the Company's revenues during the quarter were
generated by its subsidiary, Prime Core AG through its retail securities
brokerage activities.
Revenues increased from $20,869,512 in the prior quarter and
$20,785,667 in the third quarter of 1996, to $22,464,020 in the third quarter
this year, for a nine months' total of $65,403,468 compared to $67,052,415 for
the first nine months in 1996. Gross margins in the quarter recovered somewhat
from the low level in the second quarter, to 10.2% of revenues which, however,
is still well below the margins achieved in 1996. Selling, general and
administrative expenses during the quarter amounted to $4,277,191, higher than
in the preceding quarter but significantly less than in the corresponding
quarter last year, reflecting efforts by management to control costs. The
Company sustained a net loss for the quarter in the amount of $1,977,398 for a
year-to-date total of minus $3,023,380, compared to losses of $3,185,725 and
$2,534,873 for the same quarter and nine months period last year.
Liquidity and Capital Resources
The Company had total assets as of September 30, 1997 of $4,505,582, of
which $1,382,293 were current assets. Working capital at the end of the quarter
showed a deficit of $614,939. Management is reviewing its cost structure,
especially with regard to its network of independent brokers, in an effort to
streamline operations and thereby improve profitability and cash flow.
Fiscal Year 1996 vs.Fiscal Year 1995
Results of Operations
Substantially all of the Company's revenues during the quarter were
generated by its subsidiary, Opti-Wert-Interest AG ("OWI-AG") through its retail
securities brokerage activities.
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Revenues decreased from $27,905,151 in the prior quarter but increased
from $11,974,528 in the third quarter of 1995, to $20,785,667 in the third
quarter this year. Significant growth in selling, general and administrative
expenses which amounted to $6,754,214 caused the Company to incur a loss for the
quarter of 3,185,725, for a net loss for the year to-date period of $2,534,873,
compared to a loss of $2,589,295 for the same period last year.
Liquidity and Capital Resources
The Company had total assets as of September 30, 1996 of $10,169,209,
of which $7,175,295 were current assets. Working capital at the end of the
quarter had decreased to $1,668,906 , as a result of the losses incurred during
the quarter. To bolster its liquid resources, the Company during the quarter
sold a total of 127,325 shares of its common stock through private placements
with European investors pursuant to Regulation S promulgated under the
Securities Act of 1933, as amended, for an aggregate $559,854.
Other Information
During the quarter, the Company changed the name of its Swiss
subsidiary from Opti-Wert-Interest AG to Prime Core AG.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, as
amended, the Registrant has duly caused this Amendment No. 1 to its Form 10-Q to
be signed on its behalf by the undersigned, thereunto duly authorized.
FINCA CONSULTING, INC.
(Registrant)
Date: January 8, 1997 By: sVolker Montag
Volker Montag, President
Principal Financial Officer
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