<PAGE> 1
U. S. SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-QSB
[X] QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the Quarterly Period Ended June 30, 1997
OR
[ ] TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the Transition Period From __________ to __________
Commission File Number 0-18974
Jordan American Holdings, Inc.
(Exact name of registrant as specified in its charter)
Florida 65-0142815
(State or other jurisdiction (I.R.S. Employer
of incorporation or organization) Identification Number)
1875 Ski Time Square, Suite One, Steamboat Springs, CO 80487
(Address of principal executive offices)
(800) 879-1189
SECURITIES REGISTERED PURSUANT TO SECTION 12(b) OF THE ACT:
Title of Each Class Name of Each Exchange on Which Registered
None None
Securities Registered Pursuant to Section 12(g) of the Act:
Common Stock, $.001 Par Value
(Title of Class)
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
filing requirements for the past 90 days. Yes X No
As of June 30, 1997, 10,540,376 shares of the registrant's common stock were
issued and outstanding.
<PAGE> 2
JORDAN AMERICAN HOLDINGS, INC.
AND SUBSIDIARIES
(NASDAQ: JAHI)
Table Of Contents
PART I
<TABLE>
<CAPTION>
Page
<S> <C>
ITEM 1 Financial Information
Consolidated Balance Sheets 3
Consolidated Statements of Operations 4
Consolidated Statements of Cash Flows 5
Notes to Consolidated Financial Statements 6
ITEM 2 Management's Discussion and Analysis
Results of Operations 11
Liquidity and Capital Resources 12
</TABLE>
2
<PAGE> 3
PART I.
ITEM 1.
FINANCIAL INFORMATION
JORDAN AMERICAN HOLDINGS, INC.
AND SUBSIDIARIES
Consolidated Balance Sheets
<TABLE>
<CAPTION>
(unaudited)
June 30, December 31,
1997 1996
ASSETS
<S> <C> <C>
Cash and cash equivalents $1,178,224 $1,725,056
Marketable securities 391,637 495,625
Investment advisory fees receivable, net 60,302 92,796
Receivable from clearing broker 100,905 102,999
Deposit with clearing broker 25,000 25,000
Prepaid expenses and other current assets 37,721 42,954
Receivable from affiliates and officer 175,175 139,250
Notes receivable 941,000 946,175
Property and equipment, net 179,497 189,901
Total Assets $3,089,461 $3,759,756
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable and accrued expenses $145,768 $290,030
Deferred investment advisory fees 124,635 213,942
Preferred stock dividend payable 120,000 0
Total Liabilities $390,403 $503,972
Stockholders' equity:
8% cumulative, convertible, non-voting
preferred stock, $0.01 par value; authorized
5,000,000 shares; 3,000,000 shares issued
and outstanding 30,000 30,000
Common stock, $0.001 par value; authorized
20,000,000 shares; 10,540,376 shares issued
and outstanding June 30, 1997; 10,678,376
shares issued and outstanding at
December 31, 1996 10,540 10,678
Additional paid-in capital 4,747,648 4,930,202
Accumulated deficit (2,089,130) (1,715,096)
Total stockholders' equity $2,699,058 $3,255,784
Total liabilities
and stockholders' equity $3,089,461 $3,759,756
</TABLE>
See accompanying notes to consolidated financial statements.
3
<PAGE> 4
JORDAN AMERICAN HOLDINGS, INC.
AND SUBSIDIARIES
Consolidated Statements of Operations
(Unaudited)
<TABLE>
<CAPTION>
Three Months Six Months
Ended June 30, Ended June 30,
1997 1996 1997 1996
<S> <C> <C> <C> <C>
REVENUES
Investment advisory fees $149,741 $460,867 $343,462 $1,234,580
Commission income 61,084 100,512 180,537 231,468
Total revenues $210,825 $561,379 $523,999 $1,466,048
Selling, general and
administrative expenses 507,141 582,535 915,928 1,204,002
Operating income (loss) ($296,316) ($21,156) ($391,929) 262,046
OTHER INCOME (EXPENSES)
Interest and dividend
income (expense) 35,930 41,893 77,656 71,791
Realized gain (loss) from
investing and trading (90,323) (33,682) (34,311) 36,807
Unrealized gain (loss) from
investing and trading (19,517) (24,858) 19,608 (45,636)
Loss on disposal of land
and building -- -- -- (8,341)
Total other income, net ($73,910) ($16,647) $62,953 54,621
Net income (loss) ($370,226) ($37,803) ($328,976) $316,667
Dividends on
preferred stock 60,000 60,000 120,000 120,000
Net income (loss)
attributable to
common stock ($430,226) ($97,803) ($448,976) $196,667
Net income (loss)
per common share
and share equivalent
attributable to
common stock ($0.04) ($0.01) ($0.04) $0.02
Weighted average number of
share and share equivalents
outstanding 10,600,903 10,779,902 10,637,105 10,811,025
</TABLE>
See accompanying notes to consolidated financial statements.
4
<PAGE> 5
JORDAN AMERICAN HOLDINGS, INC.
AND SUBSIDIARIES
Consolidated Statements of Cash Flows
(Unaudited)
<TABLE>
<CAPTION>
Six Months Ended July 31,
1997 1996
<S> <C> <C>
Cash flows--operating activities:
Net income from continuing operations ($328,976) $316,667
Adjustments to reconcile net income to cash
provided by (used in) operating activities:
Depreciation 11,922 11,268
Unrealized (gain) loss from
investing and trading (19,608) 45,636
Realized (gain) loss from
investing and trading 34,311 (36,807)
Loss on disposal of land,
building and equipment -- 10,288
Stock option compensation -- --
Changes in operating assets and liabilities:
Investment advisory fees receivable 32,495 128,514
Trading marketable securities 89,285 (82,231)
Prepaid expenses and other current assets (12,673) (63,055)
Accounts payable and accrued expenses (144,263) 171,746
Deferred investment advisory fees (89,306) (36,530)
Notes receivable 5,176 --
Other receivables from affiliates (15,925) --
Net cash provided by (used in)
operating activities ($437,562) $465,496
Cash flows--investing activities:
Capital expenditures (1,519) (10,182)
Net cash provided by (used in)
investing activities ($1,519) ($10,182)
Cash flows--financing activities:
Repurchase of common stock (107,751) (206,065)
Net proceeds from issuance of common stock -- 12,300
Proceeds from sale of land and building -- 99,708
Repayment of note payable -- (373,121)
Net cash provided by (used in)
financing activities ($107,751) ($467,178)
Net increase (decrease) in cash
and cash equivalents ($546,832) ($11,864)
Cash and cash equivalents, beginning of period 1,725,056 2,424,806
Cash and cash equivalents, end of period $1,178,224 $2,412,942
Supplemental disclosure:
Interest paid $362 $163
</TABLE>
See accompanying notes to consolidated financial statements.
5
<PAGE> 6
Notes to Consolidated Financial Statements (Unaudited)
In the opinion of management, the accompanying consolidated financial
statements contain all adjustments, consisting only of normal recurring
adjustments, necessary to present fairly the consolidated balance sheets of
Jordan American Holdings, Inc. (the "Company" or "JAHI") and its
broker/dealer subsidiary (Management Securities, Inc. or "MSI") as of
June 30, 1997, and December 31, 1996, and the results of its operations for
the three months and six months ended June 30, 1997 and 1996, and the results
of its cash flows for the six months ended June 30, 1997 and 1996, in
accordance with generally accepted accounting principles. The results for
interim periods are not necessarily indicative of results for a full year.
(Please see further discussion below in "Management's Discussion and
Analysis.")
Percentage of assets investment advisory fees, for which refunds may be
due to clients, are billed in advance and are deferred and amortized into
income over the period in which services are performed. Investment advisory
fees based on a percentage of the annual increase (performance billings) in
the market value of a client's portfolio, including interest and dividends,
are fully recognized at the contract anniversary date after the period of
management. Management fee compensation which is due to sales representatives
is accrued when such fees are billed and is paid to sales representatives
quarterly.
Asset management contracts are terminable upon written notice from the
client(s) or the Company, and percentage of assets management fees are
refundable on a pro-rata basis. For additional information regarding the
Company's business operations and policies, a copy of disclosure document
Form ADV, Part II is available without charge upon written request to the
Company.
Total assets under management and corporate earnings may substantially
increase or decrease due to stock market conditions including the onset of a
long-term declining, or bear market, performance returns as influenced by the
Company's investment advisory decisions, legal and other professional fees,
effectiveness of marketing efforts, competition from other investment
advisory companies and mutual funds, interest rate changes by the Federal
Reserve Board, economic conditions such as high inflation and/or recession,
and other factors.
The Company develops prospective clients and investors through seminars,
attending money shows, television and radio appearances, direct contact, its
web site (www.jahi.com), sales representatives, and referrals from clients,
securities broker-dealers and other sources. Prospective clients receive
Form ADV, Part II, as the Company's disclosure document and also provide
information about themselves, their investment experience, and their net
worth through new account forms and other methods.
During 1996, the Company formed a joint venture with Impact Financial
Network ("Impact"), a financial services firm which markets the investment
advisory services of the Company. During the second quarter of fiscal 1997,
the Company began pursuing the acquisition of Impact's 50% ownership of the
joint venture and as well as all other future revenues from its president and
founder, Ronald A. Stiller, in order to increase the potential benefit to the
6
<PAGE> 7
Company which a financial services firm may be able to achieve from its
operations and revenues in areas such as insurance, estate planning, mortgage
services and charitable gifting, as well as asset management. While the
acquisition of Impact would involve little or no hard assets, the Company
believes the intellectual property it would receive, particularly in the area
of marketing expertise and a marketing team, would benefit the Company both
in terms of asset gathering capabilities and providing the Company revenue
streams in addition to its investment advisory products. Acquiring Impact
and hiring the services of Mr. Stiller, a current member of the Company's
Board of Directors, would expand the product mix of the Company to a broader
array of financial services.
On July 1, 1997, the registration statement of Impact Management Growth
Portfolio (the "Fund") became effective with the Securities and Exchange
Commission (the "SEC"). The Fund, to be managed by the Company, is a no-load
mutual fund with an annual management fee of 2.25%. While there can be no
guarantee that the Fund will be profitable, the Company believes that Impact
will be able to raise substantial assets for the Fund over the next one to
two years, which may significantly increase the Company's revenues.
Additionally, the Company is also pursuing the acquisition of Impact
Management Services, Inc. ("IMSI"), the administrator and transfer agent for
the Fund. If the acquisition is completed, the Company will receive annual
administrative revenues of $165 per account from IMSI. The Company is also
investigating the possible acquisition of Synergy, Inc. ("Synergy"), a small
insurance firm based in the Pittsburgh, Pennsylvania area. Management of
JAHI believes the acquisition of Synergy would be beneficial to the Company
because it would further broaden JAHI's product offerings and thus revenue
streams. There can be no guarantee, however, that the acquisition of Impact
and/or ISMI and/or Synergy or the asset-gathering efforts of Impact, will
necessarily result in improved revenues or improved net income to the
Company.
The Company plans to continue increased expenditures for marketing and
is pursuing business plans for asset gathering and creating exposure of the
Company's common stock and warrants through seminars, national investment
shows, advertising, improved marketing materials, joint ventures with other
professionals, and other factors. Operationally, but not considering the
impending acquisition of Impact, the Company is positioned with personnel
and systems to manage as much as $500 million in total assets without a
significant, or corresponding, increase in operating costs. Thus, the
Company's profit margins may increase substantially with additional assets
under management and/or strong performance in clients' managed accounts, and
increased commission revenues from clients' accounts through MSI.
With the Company's current mix of management fee accounts
(approximately 60% of accounts pay performance based fees; approximately 40%
of accounts pay percentage of assets based fees), in a period of normal
trading activity with assets under management of approximately $140 million,
the Company may be able to cover the costs of its operations (not including
selling expenses) solely from commission revenues and percentage of assets
investment advisory fees. Additional assets under management or strong
performance and billings in percentage of profits accounts or increased
trading activity through the Company's subsidiary broker/dealer or successful
investing of Company assets or revenues from the Jordan Index Fund, L.P. or
other sources, may significantly improve the Company's net earnings, although
there can be no guarantee of this occurring.
7
<PAGE> 8
The Company is also currently involved with the formation of a new
limited partnership in order to increase assets under management and thereby
seek to improve corporate earnings. Currently, the Company has advanced
approximately $43,000 in the formation of the partnership, which amount is
anticipated to be repaid by the partnership upon commencement of operations.
If the partnership does not gather enough assets to begin operations during
the second six months of 1997, the Company may have to recognize this $43,000
receivable as an expense.
Approximately 80% of JAHI's clients maintain their brokerage accounts
with MSI., a member of the National Association of Securities Dealers, Inc.
("NASD") and the Securities Investor Protection Corporation ("SIPC"). MSI is
compensated for securities transactions on behalf of the Company's managed
accounts by receipt of commissions. MSI does not hold funds or securities
for clients and does not have custody of accounts for any clients of the
Company. MSI currently executes orders through Pershing & Co., a division of
Donaldson, Lufkin, & Jenrette, a securities corporation. Pershing, a member
of the Securities Investor Protection Corporation (SIPC), acts as clearing
house and custodian for the majority of Company accounts and processes all
confirmations and monthly statements for JAHI clients who choose to maintain
their accounts with MSI.
Commission income is recognized on a settlement date basis, which does
not differ materially from the trade date basis of accounting. Marketable
securities consist primarily of corporate stocks and other securities held in
Company investment accounts. Realized and unrealized gains or losses result
from the trading of securities and stock index futures contracts in Company
investment accounts.
Net income (loss) per share and share equivalent is based upon the
weighted average number of share and share equivalents outstanding during the
period. The calculations ignore common stock equivalent shares when their
inclusion in such calculations would have been anti-dilutive.
Preferred stock dividends are normally paid semi-annually as of June 30
and December 31 of each year. At the request of the holder of the preferred
stock, the Company agreed to pay the first semi-annual dividend of $120,000
on July 31 of each year and the second semi-annual dividend of $120,000 on
November 30. This arrangement was agreed to by both parties to assist the
holder of the preferred stock in its cash flow needs related to its
charitable giving as a private foundation. This arrangement has no material
impact on the annual operations and/or earnings of the Company.
In the third quarter of 1994, Wallace Neal Jordan established Jordan
Assets, Ltd. For providing administrative services, the Company receives 100%
of the management fee revenue, if any, from Jordan Assets, Ltd., a privately
held affiliate which manages the Jordan Index Fund, L.P., (the "Fund"), a
limited partnership with assets of approximately $11.5 million. The Fund
invests in stock index futures contracts and other securities and receives as
its fee 20% of the Fund's trading profits. Fees for this Fund are accounted
for as deferred revenue until the annual billing date of the Fund, which is
July 31 of each year. Revenues to JAHI from the Fund were approximately
$90,000 in 1995 as compared to no revenues from the Fund in 1996. Third
8
<PAGE> 9
quarter 1997 revenues may or may not be materially impacted by revenues from
the Fund as dependent upon investment decisions made by Fund manager Wallace
Neal Jordan and other factors. (All trading decisions for the Fund are made
by Mr. Jordan.) Additionally, potential investors in the Company's common
stock or warrants should understand that there is no guarantee that the Fund
will continue to exist as a potential revenue source for the Company.
During 1996, the Nasdaq Stock Market proposed new listing standards for
continued listing of securities on the Nasdaq Small-Cap Market which may
adversely effect the Company should these listing standards be approved by
the SEC and implemented by Nasdaq. There can be no guarantee that the
Company will be able to meet or maintain these listing standards, which
include but are not limited to a minimum share price of $1.00 for
small-capitalization companies such as Jordan American Holdings, Inc. Should
the Company not be able to meet or maintain the new listing standards if they
become effective, the Company may be de-listed from its current listing and
be traded on the Electronic Bulletin Board. Such an event, if it occurs, may
adversely effect the trading and liquidity of the Company's common stock and
warrants. Additionally, if the Company's securities are de-listed, proposed
re-entry standards may be much more difficult for the Company to achieve in
order to gain re-listing in the Nasdaq Small-Cap Market.
As of April 1997, the Company is no longer charging management fees on
holdings of JAHI common stock and warrants. While this policy will eliminate
management fee revenues from holdings in JAHI securities, management believes
it is in the best interest of our clients and our shareholders to implement
this policy.
On or about January 14, 1997, the Company received a Statement of Claim
with respect to an arbitration commenced before the NASD on behalf of Anthony
J. and Patricia J. Scalise alleging various claims grounded in the Florida
Securities and Investor Protection Act, including negligence, breach of
fiduciary duty and fraud. The claimants seek $270,000 in alleged
compensatory damages, interest, and attorney fees and costs, and also seek
punitive damages of three times any compensatory award.
This arbotration proceeding has been withdrawn. In withdrawing the
arbitration, the claimants expressly acknowledged that they had commenced the
arbitration based upon mistaken assumptions of fact, and that further review
revealed that their claims were without sufficient merit to warrant the
arbitration, and that had the claimants fully understood all of the relevant
facts, they would not have commenced the arbitration proceeding in the first
place.
JAHI did not and will not pay any damages related to this matter. Each
party was responsible for their respective legal fees and costs, except that
JAHI contributed $2,500 to help offset certain administrative fees and related
expenses of the claimants. There now exists no current material legal
proceedings against JAHI of any kind.
9
<PAGE> 10
In February 1993, JAHI completed a $3 million private placement of
750,000 units. Each unit is comprised of four shares of 8% cumulative
convertible non-voting preferred stock (the "Preferred Stock") and one share
of Common Stock. The Preferred Stock is convertible at the rate of one share
of Common stock for each $3.50 in face amount of Preferred Stock converted.
The face amount equals the initial offering price of $1.00 per share. If at
any time the closing bid price of JAHI Common Stock exceeds $5.25 per share
for a period of thirty consecutive trading days, the Company may, upon thirty
days' written notice, convert the Preferred Stock to Common Stock using the
above conversion rate. If the conversion of Preferred Stock to Common Stock
occurred, the Company would then be relieved of $240,000 in annual preferred
dividend payments to the holders of the Preferred Stock.
The Financial Accounting Standards Board issued Statement of Financial
Accounting Standards No. 123, "Accounting for Stock Based Compensation"
(SFAS 123), which is effective for fiscal years beginning after December 15,
1995. SFAS recommends, but does not require, measuring compensation cost of
stock options at the grant date and recognizing the expense over the service
period. If the Company does not change its accounting method, SFAS 123
requires, at a minimum, disclosure of the pro forma impact on net income and
net earnings per share. The Company has determined that it will not change
from its current method of accounting, but will make the disclosures required
by SFAS 123.
These interim period consolidated financial statements, including the
notes thereto, are condensed and do not include all disclosures required by
generally accepted accounting principles. Such interim period consolidated
financial statements should be read in conjunction with the Company's
consolidated financial statements which are included in the Company's 1996
Form 10-KSB which is contained in the Company's 1996 Annual Report to
shareholders and is available without charge upon request to JAHI Investor
Relations, 1875 Ski Time Square, Suite One, Steamboat Springs, Colorado,
80487, (800) 879-1189; Fax: (970) 879-1272.; E-mail: [email protected]
10
<PAGE> 11
PART I, ITEM 2
MANAGEMENT'S DISCUSSION AND ANALYSIS
JORDAN AMERICAN HOLDINGS, INC.
AND SUBSIDIARIES
To the extent that the information in this report contains forward-looking
implications, they may differ materially from actual results due to the
success, or lack thereof, of JAHI's management decisions and the management
of clients' stock portfolios and pooled investments as influenced by market
conditions and other factors. There can be no guarantee that they will have
any impact, positive or negative, upon the earnings and/or operations of the
company.
Results of Operations
The Company had a net loss for the three months ended June 30, 1997 of
($430,226) or ($0.04) per common share and share equivalent compared to a net
loss of ($97,803) or ($0.01) per common share and share equivalent for the
same period in 1996. This loss resulted from decreased investment advisory
fee revenue, decreased commission revenue, and realized and unrealized losses
from investing and trading in the Company's investment account.
For the three months ended June 30, 1997, revenues from investment
advisory fees totaled $149,741 compared to revenues from investment advisory
fees of $460,867 for the same period in 1996, a decrease of approximately 68%
due primarily to weak performance billings in managed accounts during the
second quarter of fiscal 1997.
Commission income decreased for the three months ended June 30, 1997, to
$61,084 as compared to $100,512 for the same period in 1996. This decrease
is due to fewer stock transactions resulting from a decrease in the amount of
securities being purchased and sold in client accounts as determined by the
management of the Company based on market conditions and other factors.
Both management fees and commission revenue for the second quarter were
relatively weak because of performance in clients' managed accounts, no
significant increase in total assets under management, and infrequent trading
in managed accounts. Unless account performance and/or asset gathering, or
trading activity improves or increases, the current earnings trend may
continue. Market conditions and other factors may materially impact this
trend either positively or negatively. Long-term trends in retention of
client assets since fiscal year-end 1995 show that for fiscal 1996, the
company had a net loss in assets under management, i.e., more assets in
client accounts have departed from the Company's management than have been
brought in as new managed assets. During the first and second quarters of
1997, however, this trend reversed and the Company has experienced a net
increase in assets under management of approximately $726,000. There can be
no guarantee, however, that the current trend will continue.
11
<PAGE> 12
Exceptional performance in percentage of profit accounts may result in
substantial revenues for the Company while poor performance in the same
accounts may yield no revenues for the Company from approximately 60% of the
Company's total assets under management. Additionally, because percentage of
profit accounts are billed on an annual basis for each respective client,
there may be a delay in billing revenue as long as eleven months from the
time when actual account performance was achieved. Thus, exceptional
performance in percentage of profit accounts may benefit the revenues of the
Company for nearly one year after such performance was achieved as dependent
on the billing cycle of respective clients and other investment results in
respective accounts.
Total other income (expense) was ($73,910) for the three months ended
June 30, 1997, compared to ($16,647) for the three months ended June 30,
1996, an increase of approximately 344%. This increase in expense was
primarily due to increased realized losses in Company investment accounts
from trading stock index futures contracts.
Selling, general, and administrative ("SG&A") expenses of $507,141 were
incurred during the three month period ended June 30, 1997, compared to SG&A
expenses of $582,535 for the same period in 1996, a decrease of approximately
13%. This decrease in SG&A expenses resulted primarily from decreased
selling expenses and decreased clearing costs associated with trading
commissions. Additionally, the Company has re-negotiated its clearing
arrangement with its current clearing house, Pershing. While there can be no
guarantee this change will result in substantial benefits to the Company,
improved clearing costs may improve profit margins in commission revenues
received by the Company's broker/dealer subsidiary, Management Securities,
Inc.
Liquidity and Capital Resources
At June 30, 1997, the Company had cash and cash equivalents of
$1,178,224 versus $1,725,056 at December 31, 1996. This decrease is
primarily due to use of cash for marketing purposes, professional fees, and
the repurchase of JAHI common stock by the Company since December 31, 1996.
(During the second quarter of 1997, the Company used $44,448 to repurchase
68,000 shares of JAHI common stock, which was subsequently retired.)
Accounts payable and accrued expenses were $145,768 at June 30, 1997, as
compared to $290,030 at December 31, 1996, a decrease of approximately 50%.
Large accruals at December 31, 1996 were necessary for expenses such as the
Company's new marketing brochure, and various professional fees. Accruals
are based upon expenses as determined by management's estimate.
During the second quarter of fiscal 1997, the Company elected to expense
"Receivable from affiliates and officer" by $100,000. This amount previously
was to have been reimbursed to the Company from revenues related to IMSI.
Given the impending acquisition of Impact, it is anticipated the Company
will also receive additional revenues from other Impact products. As of
June 30, 1997, Impact remains in debt to the Company in the amount of
approximately $98,000. The Company's association with Impact will continue to
result in an increased use of cash by the Company for marketing purposes.
12
<PAGE> 13
Cash flows used in operating activities for the six months ended
June 30, 1997, were ($437,562) compared to $465,496 for the same period in
1996. Cash flows used in financing activities were ($107,751) for the six
month period ended June 30, 1997, compared to ($467,178) for the same period
in 1996, during which time cash was used to repurchase JAHI common stock and
in conjunction with the payment of the debt of the Company's former corporate
headquarters in Sarasota, Florida. Management of the Company believes
current and long-term cash needs will be met despite increased marketing
expenses and the ongoing repurchase of the Company's common stock.
13
<PAGE> 14
SIGNATURES
In accordance with 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 duly authorized.
JORDAN AMERICAN HOLDINGS, INC.
Dated: August 12, 1997 By: /s/ Wallace Neal Jordan
Wallace Neal Jordan
Chief Executive Officer
Dated: August 12, 1997 By: /s/ Frederick A. Whittlesey
Frederick A. Whittlesey
Chief Financial Officer
14
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
This schedule contains summary financial information extracted from the
financial statements of Jordan American Holdings, Inc. for the period ending
June 30, 1997, and is qualified in its entirety by reference to such financial
statements.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-START> JAN-01-1997
<PERIOD-END> JUN-30-1997
<CASH> 1,178,224
<SECURITIES> 391,637
<RECEIVABLES> 73,302
<ALLOWANCES> 13,000
<INVENTORY> 0
<CURRENT-ASSETS> 1,793,789
<PP&E> 270,539
<DEPRECIATION> 91,042
<TOTAL-ASSETS> 3,089,461
<CURRENT-LIABILITIES> 390,403
<BONDS> 0
0
30,000
<COMMON> 10,540
<OTHER-SE> 2,658,518
<TOTAL-LIABILITY-AND-EQUITY> 3,089,461
<SALES> 0
<TOTAL-REVENUES> 523,999
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> (328,976)
<INCOME-TAX> 0
<INCOME-CONTINUING> (328,976)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (328,976)
<EPS-PRIMARY> (0.04)
<EPS-DILUTED> (0.04)
</TABLE>
