<PAGE>
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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, 1995
OR
( ) TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
Commission File Number 0-2290
SOUTHERN ACCEPTANCE CORPORATION
- ------------------------------------------------------
(Exact Name of Registrant as Specified in its Charter)
Georgia 58-0898219
- --------------------------------- -------------------------
(State or other Jurisdiction (I.R.S. Employer I.D. No.)
of Incorporation or Organization)
277 Pat Mell Road, Suite A, Marietta, GA 30060
- ---------------------------------------- ----------
(Address of Principal Executive Offices) (Zip Code)
(404) 432-6684
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(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
file such reports) and (2) has been subject to such filing
requirements for the past 90 days.
YES X NO
---- ----
As of November 13, 1995 the number of shares of the
registrant's common stock outstanding was 5,238,905.
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PART 1. FINANCIAL INFORMATION
Item 1. Financial Statements
--------------------
<TABLE>
<CAPTION>
CONDENSED CONSOLIDATED BALANCE SHEET
(UNAUDITED)
SOUTHERN ACCEPTANCE CORPORATION AND SUBSIDIARIES
September 30, December 31,
1995 1994
------------ ------------
ASSETS
<S> <C> <C>
Current Assets:
Cash and Cash Items $ 131,933 $ 11,093
Notes Receivable -0- 70,755
Property for resale -0- 167,735
Other Current Assets 4,152 3,574
--------- ----------
Total Current Assets 136,085 253,157
Property, Plant and Equipment,
at cost 208,232 203,387
Accumulated Depreciation (148,083) (137,553)
--------- ----------
60,149 65,834
Other Asset:
Investment Property 175,988 175,988
--------- ---------
TOTAL ASSETS $ 372,222 $ 494,979
========= =========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts and Notes Payable $ 8,255 $ 28,392
Other Current Liabilities 2,875 1,250
--------- --------
Total Current Liabilities 11,130 29,642
Long-Term Debt 55,307 59,431
Stockholders' Equity:
Common Stock 521,347 521,347
Additional paid-in capital 2,615,506 2,615,506
Retained-earnings (deficit) (2,831,068) (2,730,947)
--------- ---------
305,785 405,906
--------- ---------
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $ 372,222 $ 494,979
========= =========
</TABLE>
See notes to condensed consolidated financial statements.
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<TABLE>
<CAPTION>
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
(UNAUDITED)
SOUTHERN ACCEPTANCE CORPORATION AND SUBSIDIARIES
Quarter Ended Nine Months Ended
September 30, September 30,
--------------- -----------------
1995 1994 1995 1994
---- ---- ---- ----
<S> <C> <C> <C> <C>
Income:
Interest $ 2,018 $ 1,978 $ 4,564 $ 6,605
Rents & commissions 450 2,776 8,898 10,960
Other income 2,584 19,373 5,036 61,447
------- ------- ------- -------
Gross revenues 5,052 24,127 18,498 79,012
Expenses:
Interest 1,781 164 6,581 5,197
Commissions 2,835 19,570 11,612 22,510
Admin. and general 42,054 31,101 89,896 77,024
Depreciation 3,510 1,298 10,530 8,318
------- ------- ------- -------
Total expenses 50,180 52,133 118,619 113,049
------- ------- ------- -------
Net (loss) $(45,128) $(28,006) $(100,121) $(34,037)
======= ======= ======= =======
Net Income (Loss)
Per Share $ (.009) $ (.005) $ (.019) $ (.006)
</TABLE>
<TABLE>
<CAPTION>
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
(UNAUDITED)
SOUTHERN ACCEPTANCE CORPORATION AND SUBSIDIARIES
Quarter Ended Nine Months Ended
September 30, June 30,
--------------- -----------------
1995 1994 1995 1994
---- ---- ---- ----
<S> <C> <C> <C> <C>
Net cash provided
by (used in):
Operating activities $(13,060) $(253,630) $129,348 $(47,976)
Investing activities (1,151) 234,953 (4,845) 234,953
Financing activities 20,742 ( 1,117) (3,663) (182,690)
------- -------- ------- --------
Net increase (decrease)
in cash and cash
equivalents 6,531 (19,794) 120,840 4,287
Cash and cash
equivalents at
beginning of period 125,402 31,475 11,093 7,394
------- -------- ------- --------
Cash and cash equivalents
at end of period $131,933 $ 11,681 $131,933 $ 11,681
======= ======= ======= =======
</TABLE>
See notes to condensed consolidated financial statements.
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<PAGE>
<PAGE>
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
SOUTHERN ACCEPTANCE CORPORATION AND SUBSIDIARIES
September 30, 1995
Note A - Basis of Presentation
The accompanying unaudited condensed consolidated financial
statements have been prepared in accordance with generally
accepted accounting principles for interim financial information
and with the rules and regulations of the Securities and Exchange
Commission. 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 management, all adjustments (consisting of normal
recurring accruals) considered necessary for a fair presentation
have been included.
The results of operations for the quarter and the nine-month
period ended September 30, 1995 are not necessarily indicative of
the results that may be expected for the full year ended December
31, 1995. These financial statements should be read in
conjunction with the Company's financial statements and related
notes in the Company's 1994 Annual Report to its shareholders.
Note B - Proposed Merger
On May 30, 1995 the Company signed a letter of intent to
effect a merger with Efficiency Lodge, Inc. pursuant to which an
unspecified number of shares of the Company's common stock would
be issued in exchange for the net assets of Efficiency Lodge,
Inc., at which time each share of the latter's common stock
issued and outstanding prior to the Effective Time would be
canceled and extinguished. Negotiations are still in process,
due diligence has not yet been completed, and no definitive
agreement has been approved.
Note C - Change in Fiscal Year
On September 12, 1995, the Company's Board of Directors
voted to change the Company's fiscal year from September 30 to
December 31 in anticipation of the proposed merger discussed in
Note B, and a Form 8-K to report this event was filed with the
Securities and Exchange Commission.
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<PAGE>
Item 2. Management's Discussion and Analysis of Financial
-------------------------------------------------
Condition and Results of Operations
-----------------------------------
During the quarter ended September 30, 1995, the Company
sold its remaining property for resale at a profit. Other than
that, the quarter was pretty flat.
The Company is continuing with its plans to develop or sell
its remaining investment property. However, this is of a long-
term nature. While the Company is exercising tight expense
controls, it continues to suffer from a lack of sufficient
operating revenues to cover administrative and general expenses.
The Company's financial condition is stable, with a current
ratio of 12 to 1. The Company hopes to use some of these funds
to buy and sell property at a profit in order to generate
capital.
PART II. OTHER INFORMATION
Exhibits
- --------
Exhibit 27 - Financial Data Schedule
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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.
SOUTHERN ACCEPTANCE CORPORATION
-------------------------------
(Registrant)
Date November 14, 1995 /s/ J.A. Cochran, President
--------------------------------------
J. A. Cochran, President
Date November 14, 1995 /s/ Bonnie L. Byer
--------------------------------------
Bonnie L. Byers, Vice President and
Secretary-Treasurer
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<PAGE>
<TABLE> <S> <C>
<ARTICLE> 5
<CIK> 0000092066
<NAME> SOUTHERN ACCEPTANCE CORPORATION
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-START> JAN-01-1995
<PERIOD-END> SEP-30-1995
<CASH> 131,933
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 136,085
<PP&E> 208,232
<DEPRECIATION> 148,083
<TOTAL-ASSETS> 372,222
<CURRENT-LIABILITIES> 11,130
<BONDS> 55,307
<COMMON> 521,347
0
0
<OTHER-SE> (215,562)
<TOTAL-LIABILITY-AND-EQUITY> 372,222
<SALES> 0
<TOTAL-REVENUES> 18,498
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 118,619
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 6,581
<INCOME-PRETAX> (100,121)
<INCOME-TAX> 0
<INCOME-CONTINUING> (100,121)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (100,121)
<EPS-PRIMARY> (0.19)
<EPS-DILUTED> (0.19)
</TABLE>
