<PAGE>
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
(Mark One)
( ) QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
OR
(X) TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the Transition Period from October 1, 1994 to December 31,
1994
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
----------------------------------------------------
(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 October 20, 1995 the number of shares of the
registrant's common stock outstanding was 5,238,905.
<PAGE>
<PAGE>
PART 1. FINANCIAL INFORMATION
Item 1. Financial Statements
--------------------
CONDENSED CONSOLIDATED BALANCE SHEET
(UNAUDITED)
SOUTHERN ACCEPTANCE CORPORATION AND SUBSIDIARIES
<TABLE>
<CAPTION>
December 31, September 30,
1994 1994
----------- -------------
<S> <C> <C>
ASSETS
Current Assets:
Cash and Cash Items $ 11,093 $ 11,681
Notes Receivable 70,755 71,641
Property for resale 167,735 167,735
Other Current Assets 3,574 3,303
--------- ---------
Total Current Assets 253,157 254,360
Property, Plant and Equipment,
at cost 203,387 203,387
Accumulated Depreciation (137,553) (134,043)
--------- ---------
65,834 69,344
Other Asset:
Investment Property 175,988 175,988
--------- ---------
TOTAL ASSETS $ 494,979 $ 499,692
========= =========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts and Notes Payable $ 28,321 $ 9,541
Other Current Liabilities 1,321 1,250
--------- --------
Total Current Liabilities 29,642 10,791
Long-Term Debt 59,431 60,726
Stockholders' Equity:
Common Stock 521,347 521,347
Additional paid-in capital 2,615,506 2,615,506
Retained-earnings (deficit) (2,730,947) (2,708,678)
--------- ---------
405,906 428,175
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $ 494,979 $ 499,692
========= =========
</TABLE>
See notes to condensed consolidated financial statements.
-2-
<PAGE>
<PAGE>
<TABLE>
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
(UNAUDITED)
SOUTHERN ACCEPTANCE CORPORATION AND SUBSIDIARIES
<CAPTION>
Quarter Ended
December 31,
------------------
1994 1993
-------- --------
<S> <C> <C>
Income:
Interest $ 1,650 $ 3,845
Rents and commissions 14,575 2,215
------- ------
Gross revenues 16,225 6,060
Expenses:
Interest 1,997 2,881
Commissions 4,626 -0-
Administrative and general 28,361 26,416
Depreciation 3,510 3,510
------- ------
Total expenses 38,494 32,807
------- ------
Net (loss) $(22,269) $(26,747)
======= =======
Net (loss) per share $ (nil) $ (nil)
</TABLE>
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
(UNAUDITED)
SOUTHERN ACCEPTANCE CORPORATION AND SUBSIDIARIES
<TABLE>
<CAPTION>
Quarter Ended
December 31,
---------------------
1994 1993
-------- --------
<S> <C> <C>
Net cash provided by (used in):
Operating activities $(21,437) $ (4,478)
Investing activities -0- -0-
Financing activities 20,849 (1,371)
------- ------
Net (decrease) in cash and
cash equivalents (588) (5,849)
Cash and cash equivalents at
beginning of period 11,681 13,243
------- -------
Cash and cash equivalents
at end of period $ 11,093 $ 7,394
======= ======
</TABLE>
See notes to condensed consolidated financial statements.
-3- <PAGE>
<PAGE>
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
SOUTHERN ACCEPTANCE CORPORATION AND SUBSIDIARIES
December 31, 1994
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 ended December 31,
1994 are not necessarily indicative of the results that may be
expected for the full year. 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.
-4- <PAGE>
Item 2. Management's Discussion and Analysis of Financial
-------------------------------------------------
Condition and Results of Operations
-----------------------------------
Commission income increased during the quarter ended
December 31, 1994. 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 8.5 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
-5- <PAGE>
<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.
SOUTHERN ACCEPTANCE CORPORATION
(Registrant)
Date October 27. 1995 /s/J. A. Cochran, President
J. A. Cochran, President
Date October 27, 1995 /s/ Bonnie L. Byers
Bonnie L. Byers, Vice President and
Secretary-Treasurer
-6-
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> 5
<CIK> 0000092066
<NAME> SOUTHERN ACCEPTANCE CORPORATION
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1994
<PERIOD-START> OCT-01-1994
<PERIOD-END> DEC-31-1994
<CASH> 11,093
<SECURITIES> 0
<RECEIVABLES> 72,755
<ALLOWANCES> 2,000
<INVENTORY> 167,735
<CURRENT-ASSETS> 253,157
<PP&E> 203,387
<DEPRECIATION> 137,553
<TOTAL-ASSETS> 494,979
<CURRENT-LIABILITIES> 29,642
<BONDS> 59,431
<COMMON> 521,347
0
0
<OTHER-SE> (115,441)
<TOTAL-LIABILITY-AND-EQUITY> 494,979
<SALES> 0
<TOTAL-REVENUES> 16,225
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 38,494
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 1,997
<INCOME-PRETAX> (22,269)
<INCOME-TAX> 0
<INCOME-CONTINUING> (22,269)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (22,269)
<EPS-PRIMARY> (.0043)
<EPS-DILUTED> (.0043)
</TABLE>
