UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
----------
FORM 10-QSB
Quarterly Report Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
For the quarter ended September 30, 1997 Commission File Number 33-39759
CRESCENT CAPITAL, INC.
(Exact name of registrant as specified in its charter)
Delaware 13-3645694
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
6701 Democracy Boulevard
Suite 300
Bethesda, Maryland 20817
(Address of principal executive offices) (Zip code)
Registrant's telephone number, including area code: (301) 897-4870
Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 of 15(d) of the Securities and 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.
Yes X No _____
As of November 1, 1997 2,545,800 shares of common stock par value, $0.001 per
share were outstanding.
<PAGE>
CRESCENT CAPITAL, INC.
FORM 10-QSB
QUARTERLY REPORT
For the Nine Months Ended September 30, 1996
INDEX
<TABLE>
<CAPTION>
Part I: FINANCIAL INFORMATION
Item 1 : Financial Statements
<S> <C>
Condensed Consolidated Balance Sheets as of September 30, 1997 [Unaudited] and December 31, 1996 [Audited]
3 - 4
Condensed Consolidated Statements of Operations for the three month periods
ended September 30, 1997 and September 30, 1996 and the nine month periods
ended September 30, 1997 and September 30, 1996 [Unaudited] 5
Condensed Consolidated Statement of Stockholders' Equity for the year ended December 31, 1996 and the nine
months ended September 30, 1997 [Unaudited] 6
Condensed Consolidated Statements of Cash Flows for the nine month periods ended September 30, 1997 and
September 30, 1996 [Unaudited] 7
Notes to Condensed Consolidated Financial Statements 8
Item 2: Management's Discussion and Analysis of Financial Condition and Results of Operations
9-13
Part II: OTHER INFORMATION 14
SIGNATURES 15
</TABLE>
o o o o o o o o o o
<PAGE>
CRESCENT CAPITAL, INC.
- -------------------------------------------------------------------------------
CONDENSED CONSOLIDATED BALANCE SHEET
- -------------------------------------------------------------------------------
September 30, 1997 December 31, 1996
[Unaudited] [Audited]
ASSETS:
Current Assets:
Cash $2,900,031 $657,880
Trade Accounts Receivable - Net 1,852,117 2,278,638
Franchisee Loans 856,431 1,008,990
Other Receivables 268,450 51,475
Inventories 764,740 865,131
Prepaid Expenses and Accrued Income 703,012 778,834
Officer Loan Receivable 221,946 125,016
Due from Related Parties [D] 2,187,092 1,471,997
----------- -----------
Total Current Assets 9,753,819 7,237,961
----------- -----------
Property and Equipment - Net 3,892,513 2,757,386
----------- -----------
Other Assets:
Deposits 295,254 637,562
Deferred Offering Costs 100,000 100,000
Intangible Assets - Net 1,006,863 1,107,953
Net Assets of Discontinued Operations -- 666,156
----------- -----------
Total Other Assets 1,402,117 2,512,671
----------- -----------
Total Assets $15,048,449 $12,507,018
----------- -----------
The Accompanying Notes are an Integral Part of these Condensed Consolidated
Financial Statements.
3
<PAGE>
CRESCENT CAPITAL, INC.
- -------------------------------------------------------------------------------
CONDENSED CONSOLIDATED BALANCE SHEETS
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
September 30, December 31, 1996
1997 [Unaudited] [Audited]
<S> <C> <C>
Liabilities and Stockholders' Equity:
Current Liability:
Trade Accounts Payable $3,429,199 $3,704,523
Accrued Expenses 1,145,441 1,186,168
Other Payables and Accrued Interest 215,737 240,700
Obligations Under Capital Leases 200,484 217,691
Other Taxes Payable 593,127 415,771
Notes Payable - Short Term 233,869 321,621
Due to Related Parties -- 29,785
------------ ------------
Total Current Liabilities 5,817,857 5,875,559
------------ ------------
Long-Term Liabilities 405,913 460,240
------------ ------------
Commitments and Contingencies -- --
------------ ------------
Minority Interest 3,477,544 2,015,233
------------ ------------
Stockholders' Equity:
$.01 Par Value, Preferred Stock, 1,000,000 Shares Authorized,
No Shares Issued and Outstanding -- --
$.001 Par Value, Class A Common Stock - 5,000,000 Shares
Authorized and 545,800 Shares Issued and 494,057 Shares Outstanding
546 545
$.001 Par Value, Convertible Class B Common Stock -
2,000,000 Shares Authorized, Issued and Outstanding 2,000 2,000
Additional Paid-in-Capital 6,209,214 6,209,214
Retained Earnings 1,643,919 322,246
Cumulative Foreign Currency Translation Adjustment 159,877 250,400
Note Receivable for Stock (1,942,275) (1,852,275)
------------ ------------
Total 6,073,281 4,932,131
Less 51,743 Shares of Class A Common Stock Held by a Subsidiary (726,145) (776,145)
------------ ------------
Total Stockholders' Equity 5,347,136 4,155,986
------------ ------------
Total Liabilities and Stockholders' Equity $15,048,450 $12,507,018
------------ ------------
</TABLE>
The Accompanying Notes are an Integral Part of these Condensed Consolidated
Financial Statements.
4
<PAGE>
CRESCENT CAPITAL, INC
- -------------------------------------------------------------------------------
CONDENSED STATEMENTS OF OPERATIONS.
[UNAUDITED]
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
September 30, September 30, September 30, September 30,
1997 1996 1997 1996
<S> <C> <C> <C> <C>
Revenue:
Sales by Company Owned Stores $1,177,396 $1,578,453 $3,116,747 $4,051,699
Commissary Sales 5,044,249 3,039,451 13,005,848 8,520,528
Franchise Fees 80,408 151,934 335,780 332,273
Rental Income 543,127 341,987 1,574,833 965,345
Royalty Sales 968,602 749,824 2,813,347 2,076,167
Computer Sales 282,154 123,427 851,756 465,970
Other Operating Income 88,954 (18,047) 235,605 4,530
------------ ------------ ------------ ------------
Total Revenue 8,184,890 5,967,019 21,933,916 16,416,512
------------ ------------ ------------ ------------
Cost of Sales
Company Owned Stores 737,647 1,007,948 1,914,547 2,652,620
Food and Packaging 4,536,161 2,730,664 11,370,896 7,643,351
Other Operating Expenses 853,181 613,451 2,901,599 1,855,890
------------ ------------ ------------ ------------
Total Cost of Sales 6,126,989 4,352,063 16,187,042 12,151,861
------------ ------------ ------------ ------------
Gross Margin 2,057,901 1,614,956 5,746,874 4,264,651
------------ ------------ ------------ ------------
Amortization/Depreciation 171,412 158,582 553,559 431,442
Gain on Sale of Fixed Assets 996 -- 89,430 --
Administrative Expense 1,714,120 1,359,969 4,702,586 3,970,955
------------ ------------ ------------ ------------
Operating Income (Loss) 173,365 96,405 580,159 (137,746)
Interest Income/Non-Operating Income 129,199 40,654 291,519 242,133
Interest Expense (11,590) (24,868) (50,979) (74,726)
------------ ------------ ------------ ------------
Net Interest Income 117,609 22,408 228,950 167,407
Income (Loss) from Continuing Operations 290,974 118,813 809,109 29,661
Minority Interest (139,001) (59,301) (796,979) 73,345
(Loss) from Discontinued Operations (10,295) -- (78,317) (400,986)
Extraordinary Income After Tax -- -- 1,756,038 --
------------ ------------ ------------ ------------
Net Income 141,678 52,890 1,689,851 (297,980)
Earnings Per Share:
Income from Continuing Operations $0.11 $0.05 $0.01 $0.01
Loss from Discontinued Operations ($0.01) $0.02 ($0.03) ($0.16)
Extraordinary Income -- -- $0.69 --
------------ ------------ ------------ ------------
Net Income (Loss) Per Share $0.10 $0.07 $0.65 ($0.15)
------------ ------------ ------------ ------------
Weighted Average Number of Shares Outstanding
2,545,800 2,545,800 2,545,800 2,545,800
------------ ------------ ------------ ------------
</TABLE>
The Accompanying Notes are an Integral Part of these Condensed Consolidated
Financial Statements.
5
<PAGE>
CRESCENT CAPITAL, INC.
- -------------------------------------------------------------------------------
CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY
[UNAUDITED]
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Cumulative
Foreign Common
Common Stock Additional Currency Stock of the Note Total
Number of Paid-in Retained Translation Parent Receivable Stockholders'
Shares Amount Capital Earnings Adjustments Held by a For Stock Equity
Subsidiary
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Balance -
December 31, 1996 2,545,200 $2,545 $6,209,214 $322,246 $250,400 $(776,145) $(1,852,275) $4,155,986
Adjustment for
Minority Interest -- -- -- (368,178) -- -- -- (368,178)
Foreign Currency
Translation Adjustment -- -- -- -- (90,523) -- -- (90,523)
Net Income for the quarter
ended September 30, 1997 -- -- -- 1,689,851 -- 50,000 -- 1,739,851
Accrued Interest on Note -- -- -- -- -- -- (90,000) (90,000)
--------- ------ ---------- ---------- -------- --------- ----------- ----------
Balance -
September 30, 1997 2,545,800 $2,545 $6,209,214 $1,643,919 $159,877 ($726,145) $(1,942,275) $5,347,136
--------- ------ ---------- ---------- -------- --------- ----------- ----------
</TABLE>
Foreign Currency Translation
The functional currency for the Company's foreign operations is the British
pound sterling. The translation from the British pound sterling into U.S.
dollars is performed for balance sheet accounts using the current exchange rate
in effect at the balance sheet date and for revenue and expense accounts using a
weighted average exchange rate during the period. The gains or losses resulting
from such translations are included in stockholders' equity. Equity transactions
are denominated in British Pound sterling have been translated into U.S. dollars
using the effective rate of exchange at date of issuance.
The Accompanying Notes are an Integral Part of these Condensed Consolidated
Financial Statements.
6
<PAGE>
CRESCENT CAPITAL, INC.
- -------------------------------------------------------------------------------
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
[UNAUDITED]
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
January 1, 1997 to January 1, 1996 to
September 30, 1997 September 30, 1996
<S> <C> <C>
Net Cash - Operating Activities $183,379 $809,990
----------- -----------
Investing Activities:
Purchase of Property, Equipment and Capitalized Costs (1,357,631) (1,373,618)
Proceeds on Disposal of Property and Equipment 328,934 445,338
Loan to Officer -- --
Loan to Related Party -- --
----------- -----------
Net Cash - Investing Activities (1,028,697) (928,280)
----------- -----------
Financing Activities:
Share of Shares in Subsidiary 3,125,062 --
New Short Term Loans 293,936 184,596
Payment of Debt (348,263) (528,894)
Proceeds from Sale of Common Stock -- --
Capital Repayments Made -- --
----------- -----------
Net Cash - Financing Activities 3,070,735 (344,298)
----------- -----------
Effect of Exchange Rate Changes on Cash 16,734 1,809
Net [Decrease] in Cash and Cash Equivalents 2,225,417 (464,397)
Cash and Cash Equivalents - Beginning of Periods 657,880 1,072,363
----------- -----------
Cash and Cash Equivalents - End of Periods 2,900,031 607,966
----------- -----------
Supplemental Disclosures of Cash Flow Information:
Cash paid during the periods for:
Interest Paid $61,389 $133,940
Taxes Paid -- --
Supplemental Disclosures of Non-Cash Financing and Investing Activities:
Total offering costs during the period January 1, 1996 to September 30, 1996 -- --
Fixed Assets acquired under Capital leases -- $248,295
Exchange of Marketable Securities and Assignment of Consulting Agreements -- $776,145
</TABLE>
The Accompanying Notes are an Integral Part of these Condensed Consolidated
Financial Statements.
7
<PAGE>
CRESCENT CAPITAL, INC.
- -------------------------------------------------------------------------------
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
[UNAUDITED]
- -------------------------------------------------------------------------------
[A] Significant Accounting Policies
Significant accounting policies of Crescent Capital, Inc. [the
"Company"] are set forth in the Company's Form 10-KSB for the year
ended December 31, 1996, as filed with the Securities and Exchange
Commission. Crescent Capital's strategic objective is to invest in
business ventures which will maximize the return to the shareholders.
Currently, Crescent Capital, Inc.'s only operation is the 70% ownership
of International Franchise Systems, Inc. Crescent Capital, Inc. and
International Franchise Systems, Inc. [including its wholly owned
subsidiaries] are collectively referred to as "the Company".
[B] Basis of Reporting
The balance sheet as of September 30, 1997, the statements of
operations for the periods July 1, 1997 to September 30, 1997, and for
the period January 1, 1997 to September 30, 1997, the statement of
stockholders' equity for the period January 1, 1997 to September 30,
1997 and the statements of cash flow for the periods January 1, 1997 to
September 30, 1997 and for the period January 1, 1996 to September 30,
1996 have been prepared by the Company without audit. The accompanying
interim condensed unaudited financial have been prepared in accordance
with generally accepted accounting principles for interim financial
information and with the instructions of Form 10-QSB and Regulation SB.
Accordingly, they do not include all of the information and footnotes
required by generally accepted accounting principles for complete
financial statements. In the opinion of the management of the Company,
such statements include all adjustments [consisting only of normal
recurring items] which are considered necessary for a fair presentation
of the financial position of the Company at September 30, 1997, and the
results of its operations and cash flows for the nine months then
ended. It is suggested that these unaudited financial statements be
read in conjunction with the financial statements and notes contained
in the Company's Form 10-KSB for the year ended December 31, 1996.
Certain reclassifications may have been made to the 1996 financial
statements to conform to classification used in 1997.
[C] Assignment Of Consulting Agreements
The three consulting agreements entered into by International Franchise
Systems, Inc. (an affiliate of the Company) were assigned to Woodland
Limited Partnership at their net book value on March 31, 1996. The
consideration for this assignment consisted of a short term interest
bearing loan which was converted to marketable securities on September
29, 1996. For consolidation purposes, the marketable securities held by
IFS are treated as "treasury stock" in the books of Crescent.
[D] Due From Related Parties
Woodland Limited Partnership is a partnership controlled by members of
the Colin Halpern family. At September 30, $2,187,092 was due from
Woodland for funds advanced by the Company and its subsidiaries. These
funds are to be repaid on a short term basis and are interest bearing
at 8% annually.
8
<PAGE>
Item 2. Management's Discussion and Analysis of Financial Condition and Result
of Operations
Overview -
Income for the thirty-nine week period was higher than the same period of the
previous year due to the opening of new stores, the increase of existing store
sales year to year of 11%, and its corresponding impact on royalties and
commissary sales and higher computer system sales. As of September 28, 1997, the
Company has opened a total of 145 Domino's units. This includes 139 delivery
units, an increase of five units over the previous thirteen week period, (10
that are Company owned) and 6 units that are "call and collect".
In a move to strengthen IFS's investment value and future growth potential, in
June, the Company sold a 15% interest in its Domino's subsidiary for $3.125
million. After expenses and taxes, the Company realized a net profit of $1.756
million from the sale. The Company intends to use the proceeds from the sale to
help finance a new commissary and administrative center to support continuing
rapid growth of Domino's in the UK. In connection with the sale, the purchaser
has an option to acquire an additional 5% interest in the company's Domino's
subsidiary.
In September 1996, the Company sold one Haagen Dazs parlour back to the Master
Franchisor in the UK. In October, the Company signed a letter of intent to sell
the two other Haagen Dazs units. Approval of the Master Franchisor has been
obtained for the transaction and the Company believes the units will be sold
once the landlord consent is obtained.
The Company opened a sit down restaurant, Pizzazz, in December 1995, to further
increase awareness of the Domino's brand. The restaurant was closed in June 1996
after the Company determined that the success of the concept would require too
much management attention to be redirected from the Company's primary business.
Accordingly, the Company reported the losses from Pizzazz as a loss from
discontinued operations in the 1996 financial statements. The Company has
subleased the property commencing April 1997 and terminating December 2010.
Since April, the income is reflected as rental income.
9
<PAGE>
Results of Operations
<TABLE>
<CAPTION>
For the Periods Ended
Income Statement Data September 28, 1997 September 29, 1996
Revenues: (%) (%)
<S> <C> <C>
Sales by Company Owned Stores 14.2 24.5
Commissary Sales 59.3 51.5
Franchise Fees 1.5 2.0
Rental Income 7.2 5.8
Royalty Sales 12.8 12.7
Computer Sales 3.9 2.8
Other Operating Income 1.1 0.7
----- -----
Total Revenues 100.0 100.0
Cost of Sales:
Company Owned Stores (1) 61.4 65.4
Commissary Sales (1) 87.4 89.7
Other Cost of Goods (1) 49.9 48.3
----- -----
Total Cost of Sales (2) 73.8 74.0
Gross Margin 26.2 26.0
Administrative (2) 21.4 24.2
Amortization/Depreciation (2) 2.5 2.6
Gain On Fixed Assets (2) 0.4 --
----- -----
Operating Income (2) 2.7 (0.8)
Other Income (2) 1.0 1.0
----- -----
Continuing Operations (2) 3.7 0.2
Discontinued Operations - (Loss) (2)
(0.3) (2.4)
----- -----
Income/(Loss) before Extraordinary Income
and Minority Interest (2)
3.4 (2.2)
===== =====
</TABLE>
Notes:
(1) as a percentage of respective revenue
(2) as a percentage of total revenue
Comparison of the Periods July 1, 1997 to September 30, 1997 and July 1, 1996 to
September 30, 1996.
Revenue
Total revenue for the quarter ended September 30, 1997 was $8.2 million, an
increase of 36% against the same period of 1996. The main constituents of this
increase arose from royalty income which increased by approximately $0.2
million, commissary sales which increased by $2.0 million, and rental and other
income which increased by $0.4 million.
10
<PAGE>
For the period ended September 30, 1997, system wide sales totalled $17.6
million versus $13.6 million in the third quarter of 1996. This represents a 29%
improvement from the previous year. This increase in system-wide sales is the
primary reason for the increase in royalty income and commissary sales. Sales at
Company owned stores decreased by approximately $0.4 million for the period
ended September 28, 1997 as compared to the period ended September 29, 1996. The
decrease in comparative sales at Company owned stores in operation and the
operating of more corporate stores under the dealer development program. Other
income components increased as a result of the subleasing of more properties and
the sale of in-store computer systems.
Cost and Expenses
The Company experienced an increase in cost of sales against the same thirteen
week period in 1996 from approximately $4.4 million to $6.1, an increase of
40.7%. The cost of sales as a percentage of commissary sales was equal to the
same period of the previous year (89.8%). The cost of sales as a percentage of
Company owned store sales decreased from 63.8% in the same period in 1996 to
62.6% in 1997.
Income
Operating income of $173,365 was achieved in the period against operating income
of $96,405 in the comparable period in 1996. This increase in profitability
resulted from an increase in sales and the corresponding margins on those sales.
Comparison of the Periods Jnauary 1, 1997 to September 30, 1997 and January 1,
1996 to September 30, 1996.
Revenue
Total revenue for the period ended September 28, 1997 was $21.9 million, an
increase of 33% against the same period of 1996. The main constituents of this
increase were royalty income, which increased by $0.7 million, commissary sales,
which increased by $4.5 million, and rental and other income which increased by
$1.1 million. Sales at Company owned stores decreased by $0.9 million.
For the period ended September 30, 1997, system wide sales totalled $31.4
million versus $24.5 million in the same thirty-nine week period of 1996. This
represents a 28% improvement from the previous year. This increase in
system-wide sales is the primary reason for the increase in royalty income and
commissary sales.
The decrease in comparative sales at Company owned stores resulted primarily
from one less Haagen Dazs unit and the operating of more corporate stores under
the dealer development program than the previous year. Other income increase as
the result of the subleasing of the property formerly occupied by the Company's
Pizzazz restaurant.
Cost and Expenses
The Company experienced an increase in cost of sales against the same period in
1996 from approximately $12.1 million to $16.2 million, a increase of 34%. Cost
of sales went up due to increased sales, but margins increased due to better
price controls. The cost of sales as a percentage of commissary sales decreased
by 2.3% from the same period of the previous year because of better controls to
ensure that Commissary pricing was adjusted for raw material price fluctuations,
and lower distribution cost per delivery. The cost of sales as a percentage of
Company owned stores sales decreased from 65.4% in the same period in 1996 to
61.4% in 1997.
11
<PAGE>
Income
Operating income of $580,159 was achieved in the period against operating loss
of $137,746 in the comparable period in 1996. This increase in profitability
resulted from an increase in sales and higher margins. The loss on discontinued
operations is attributed to the sit down restaurant, Pizzazz, which was
operating in the first five months of 1996. The loss of $442,231 in 1996
compared to the loss of $78,317 in 1997.
Liquidity and Capital Resources
At September 30, 1997, the Company's working capital of $3.9 million compared to
$1.2 million at September 30, 1996, and $1.9 million at December 31, 1996. The
Company's trade receivable has decreased by $462,374 from the same period of the
prior year as the Company improved its credit collection controls. The Company's
receivable from related parties increased by $1,564,551and inventories and other
receivables have increased by $307,102. Total current liabilities have increased
by $1,034,060 from the same period of the previous year. The principle increase
in current liabilities is related almost entirely to the accrual for expenses
and taxes related to the sale of shares in the subsidiary.
The Company anticipates it will spend $300,000 to open additional corporate
stores and acquire additional commissary equipment in 1997. The Company is not
obligated to open any additional Company owned stores through the end of 1997
under the Master Franchise Agreement.
To support the Company's continuing growth, the Company is constructing a new
administrative office and new commissary. The Company estimates the cost of the
new facility to be approximately 3.4 million pound sterling ($5.5 million). The
Company has secured financing from National Westminster Bank for approximately
70% of the total cost. The building construction cost will be financed over 15
years at a fixed rate interest rate of 8.75%. The equipment will be financed
over a 5 year lease. The Company believes its existing commissary will
adequately service the dough production needs of existing and projected new
franchisees for the next twelve months. The Company believes it can finance its
obligations from existing cash balances and projected cash flows. The new
facility is forecasted to open in August 1998.
The Company does not anticipate that the loan to Woodland Limited Partnership
will be repaid before September 1998.
If the Company's plans change or its assumptions or estimates prove to be
inaccurate, the Company may require additional funds to achieve increased sales.
If such funds are unavailable, the Company will have to reduce its operations to
a level consistent with its available funding.
Exchange Rate
The weighted exchange rate for the thirteen weeks ended September 30, 1997
($1.6096 per British pound sterling) was approximately 3% higher than the
exchange rate during the comparable period in 1996 ($1.5602 per British pound
sterling). This difference has the effect of improving the Company's results by
approximately 3% when expressed in U.S.
dollars.
12
<PAGE>
Inflation
The primary inflationary factor affecting the Company's operations is the cost
of food. As the cost of food has increased, the Company has historically been
able to offset these increases through economies of scale and improved operating
procedures, although there is no assurance that such offsets will continue. To
date, inflation has not had a material effect on the Company's operations.
13
<PAGE>
Part II OTHER INFORMATION
Item 1. Legal Proceedings
The Company is not a party to any litigation or
governmental proceedings that management believes
would result in judgements or fines that would have a
material adverse effect on the Company.
Item 2. Changes in Securities
Not Applicable.
Item 3. Defaults Upon Senior Securities
Not Applicable.
Item 4. Other Information
Not Applicable.
Item 5. Exhibits
(a) Exhibits
None.
(b) Reports on Form 8-K
No reports on Form 8-K were filed during the period
covered by this report.
14
<PAGE>
SIGNATURES
- -----------------------------------------------------------------------------
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 duly authorized.
CRESCENT CAPITAL, INC.
Date: November 18, 1997 By: /s/ Colin Halpern
Colin Halpern, President
15
<TABLE> <S> <C>
<ARTICLE> 5
<CIK> 0000874017
<NAME> CRESCENT CAPITAL, INC.
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-START> JUL-01-1997
<PERIOD-END> SEP-30-1997
<CASH> 2,900,031
<SECURITIES> 0
<RECEIVABLES> 1,852,117
<ALLOWANCES> 0
<INVENTORY> 764,740
<CURRENT-ASSETS> 9,753,819
<PP&E> 3,892,513
<DEPRECIATION> 0
<TOTAL-ASSETS> 15,048,449
<CURRENT-LIABILITIES> 5,817,857
<BONDS> 0
<COMMON> 546
0
0
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 15,048,450
<SALES> 5,044,249
<TOTAL-REVENUES> 8,184,890
<CGS> 6,126,989
<TOTAL-COSTS> 6,126,989
<OTHER-EXPENSES> 1,714,120
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> (11,590)
<INCOME-PRETAX> 290,974
<INCOME-TAX> 0
<INCOME-CONTINUING> 290,974
<DISCONTINUED> (10,295)
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 141,678
<EPS-PRIMARY> 0.10
<EPS-DILUTED> 0.10
</TABLE>
