UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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FORM 10-Q
[Mark One]
[X] Quarterly Report Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
For the quarterly period ended September 30, 1998.
OR
[ ] Transition Report Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
For the transition period from to
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Commission File No. 0-19727
CUMBERLAND TECHNOLOGIES, INC.
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(Exact name of registrant as specified in its charter)
Florida 59-3094503
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(State or other jurisdiction (I.R.S. Employer
Identification
of corporation) No.)
4311 West Waters Avenue,
Suite 501, Tampa, Florida 33614
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(Address of principal (Zip Code)
executive office)
(813) 885-2112
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(Registrant's telephone number, including area code)
Not applicable
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(Former name, former address and former fiscal year, if changed
since last report)
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
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<PAGE>
Indicate by a check mark whether the registrant has filed all
documents and reports required to be filed by Sections 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.
Yes [X] No [ ]
Applicable Only to Corporate Issuers
The number of shares of the Registrant's common stock, $.001 par
value, outstanding as of September 30, 1998 was 5,444,958 shares.<PAGE>
CUMBERLAND TECHNOLOGIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
Nine Months Ended September
30,
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1998 1997
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(Unaudited) (Unaudited)
REVENUES:
Direct premiums earned . . 6,102,701 3,981,294
Reinsurance premiums
assumed . . . . . . . 951,808 807,633
Less reinsurance ceded . . (1,644,486) (1,057,788)
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Net premium income . . . . 5,410,023 3,731,139
Net investment income . . 303,501 297,892
Net realized investment
gains . . . . . . . . 142,800 207,781
Other income . . . . . . . 653,425 666,593
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6,509,749 4,903,405
Benefits and expenses:
Losses and loss adjustment
expenses . . . . . . . 1,582,625 1,355,867
Amortization of deferred
policy acquisition costs 943,914 769,453
Operating expenses . . . . 3,157,182 2,845,373
Interest expense . . . . . 89,059 93,883
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5,772,780 5,064,576
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Income (loss) before income
taxes . . . . . . . . . . 736,969 (161,171)
Income taxes (benefit) . . . . 120,000 -
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Net income (loss) . . . . . . . $ 616,969 $ (161,171)
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Weighted average number of 5,448,965 5,449,538
shares . . . . . . . . . . ============================
Net income (loss) per share . . $ .11 $ (.03)
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See notes to condensed consolidated financial statements.<PAGE>
CUMBERLAND TECHNOLOGIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
Three Months Ended September
30,
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1998 1997
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(Unaudited) (Unaudited)
REVENUES:
Direct premiums earned . . 2,180,191 2,427,649
Reinsurance premiums
assumed . . . . . . . 462,839 617,064
Less reinsurance ceded . . (805,927) (840,184)
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Net premium income . . . . 1,837,103 2,204,529
Net investment income . . 90,357 100,028
Net realized investment
gains (losses) . . . (27,518) 128,304
Other income . . . . . . . 98,515 208,437
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1,998,457 2,641,298
Benefits and expenses:
Losses and loss adjustment
expenses . . . . . . . 701,669 935,808
Amortization of deferred
policy acquisition costs 186,007 627,230
Operating expenses . . . . 991,136 887,044
Interest expense . . . . . 29,437 31,972
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1,908,249 2,482,054
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Income before income
taxes . . . . . . . . . . 90,208 159,244
Income taxes (benefit) . . . . 120,000 -
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Net income (loss) . . . . . . . $ (29,792)$ 159,244
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Weighted average number of
shares . . . . . . . . . . 5,448,965 5,449,458
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Net income (loss) per share . . $ (.01)$ .03
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See notes to condensed consolidated financial statements.<PAGE>
SIGNATURES
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Pursuant to the requirements of the Securities Exchange
Act of 1934, the Company has duly caused this report to be signed
on its behalf by the undersigned thereunto duly authorized.
CUMBERLAND TECHNOLOGIES, INC.
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Date: November 23, 1998 By: /s/Joseph M. Williams
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Joseph M. Williams
President and
Chief Executive Officer
(Principle Executive Officer)
Date: November 23, 1998 By: /s/ Carol S. Black
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Carol S. Black
Secretary and
Chief Financial Officer
(Principle Accounting and
Financial Officer)<PAGE>
<PAGE>
