SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-QSB/A
[X] QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934.
For the quarterly period ended September 30, 2000
OR
[ ] TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE ACT
For the transition period from to
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Commission File Number 000-02290
EFFICIENCY LODGE, INC.
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(Exact name of small business issuer as specified in its charter)
Georgia 58-0898219
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(State or other jurisdiction (I.R.S. Employer
of incorporation or Identification No.)
organization)
5342 Old Floyd Road, P.O. Box 635, Mableton, Georgia 30126
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(Address of principal executive offices)
(770)819-0039
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(Issuer's telephone number, including area code)
Check whether the issuer (1) filed all reports required to be filed by Section
13 or 15(d) of the Securities Exchange Act of 1934 during the past 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 / /
Shares outstanding of each of the issuer's classes of common equity at September
30, 2000: 21,697 shares of Common Stock, $6.97 per value share.
Transitional Small Business Disclosure Format (check one)
Yes / / No / X /
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Efficiency Lodge, Inc.
INDEX
PAGE NO.
PART I. FINANCIAL INFORMATION
Consolidated Balance Sheets of Financial Position at
September 30, 2000 and December 31, 1999 1
Consolidated Statements of Operations (Unaudited) for the
Quarters Ended September 30, 2000 and 1999 and for the
Nine Months Ended September 30, 2000 and 1999 2
Consolidated Statements of Stockholders' Equity (Unaudited)
for the Nine Months Ended September 30, 2000 (Revised) 3
Consolidated Statements of Cash Flows (Unaudited) for the
Nine Months Ended September 30, 2000 4
Notes to Interim Consolidated Financial Statements (Unaudited)
for the Nine Months Ended September 30, 2000 5
Management's Discussion and Analysis or Plan of Operation 6
II - OTHER INFORMATION 7
SIGNATURES 8
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Efficiency Lodge, Inc.
CONSOLIDATED BALANCE SHEETS
ASSETS
<TABLE>
<CAPTION>
September 30, 2000 December 31, 1999
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(Unaudited)
<S> <C> <C>
Property and Equipment, net $26,747,500 $25,658,617
Cash 676,031 237,091
Other Assets 1,704,151 1,567,053
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$29,127,682 $27,462,761
============== ==============
LIABILITIES AND STOCKHOLDERS' EQUITY
Mortgage Notes Payable $28,465,551 $27,703,427
Other Liabilities 544,035 722,950
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Total Liabilities 29,009,586 28,426,377
Stockholders' Equity
Common Stock - no par value, 250,000
shares authorized; 34,790 shares issued 280,534 159,613
Accumulated Earnings 1,300,880 797,105
Other Comprehensive Gain (Loss) 25,560 (52,427)
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1,606,974 904,291
Less 13,093 and 16,426 shares of common
stock in treasury at cost at September 30, 2000
and December 31, 1999, respectively (1,488,878) (1,867,907)
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118,096 (963,616)
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$29,127,682 $27,462,761
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</TABLE>
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Efficiency Lodge, Inc.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
For the Quarters Ended September 30, 2000 and 1999
For the Nine Month Periods Ended September 30, 2000 and 1999
<TABLE>
<CAPTION>
Quarters Ended Nine Months Ended
September 30, September 30,
2000 1999 2000 1999
----------------- ----------------- ----------------- -----------------
<S> <C> <C> <C> <C>
Revenues $2,175,399 $1,734,327 $6,235,878 $4,967,998
Operating Expenses 1,416,628 1,133,482 3,758,381 2,783,185
----------------- ----------------- ----------------- -----------------
Operating Income 758,771 600,845 2,477,497 2,184,813
Other (Income) Expense, net 497,142 391,208 1,668,325 1,005,869
----------------- ----------------- ----------------- -----------------
Earnings before Income Taxes 261,629 209,637 809,172 1,178,944
Provision for Income Taxes 110,309 112,562 305,397 462,176
----------------- ----------------- ----------------- -----------------
Net Earnings $151,320 $97,075 $503,775 $716,768
================= ================= ================= =================
Net Earnings per common share $6.97 $5.32 $25.38 $39.29
================= ================= ================= =================
Weighted Average Number of Common
Shares Outstanding 21,697 18,242 19,848 18,242
================= ================= ================= =================
</TABLE>
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Efficiency Lodge, Inc.
CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY
(Unaudited)
Nine Months Ended September 30, 2000
<TABLE>
<CAPTION>
Accumulated
Other
Shares Common Accumulated Comprehensive Treasury
Outstanding Stock Earnings Gain (Loss) Stock Total
------------- ----------- -------------- -------------- --------------- -------------
<S> <C> <C> <C> <C> <C> <C>
Balance at December 31, 1999 18,364 $159,613 $797,105 ($52,427) ($1,867,907) ($963,616)
Exchange of 3,333 Treasury
Shares for Note Payable 3,333 120,921 - - 379,029 499,950
Other Comprehensive Gain (Loss)
Unrealized Net Gain on Investments - - - 77,987 - 77,987
Net Income for the Nine Months - - 503,775 - - 503,775
------------- ----------- -------------- -------------- --------------- -------------
Balance at September 30, 2000 21,697 $280,534 $1,300,880 $25,560 ($1,488,878) $118,096
============= =========== ============== ============== =============== =============
</TABLE>
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<PAGE>
Efficiency Lodge, Inc.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
Nine Months Ended September 30,
<TABLE>
<CAPTION>
2000 1999
----------------- ------------------
<S> <C> <C>
Increase (Decrease) in Cash
Cash Flows from Operating Activities:
Net Earnings $503,775 $716,768
Adjustments to Reconcile Net Earnings
to Net Cash Provided by Operating
Activities:
Depreciation and Amortization 865,862 593,766
Gain on Sale of Fixed Assets (143,110) -
Changes in Assets and Liabilities:
Other Assets 137,567 (313,502)
Other Liabilities (133,274) 542,619
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Net Cash Provided by Operating Activities 1,230,820 1,539,651
Cash Flows from Investing Activities:
Payments Received on Notes Receivable 3,050 -
Loan to Others (250,000) (149,059)
Investment Purchases - (288,175)
Capital Expenditures (2,004,458) (1,271,833)
Proceeds from Sale of Fixed Assets 243,000 -
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Net Cash Used by Investing Activities (2,008,408) (1,709,067)
Cash Flows from Financing Activities:
Payments for Purchase of Treasury Stock (45,548) (24,119)
Principal Payments on Long-Term Debt (512,462) (234,077)
Proceeds from Issuance of Debt 1,774,538 500,000
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Net Cash Provided by Financing Activities 1,216,528 241,804
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Increase in Cash and Cash Equivalents 438,940 72,388
Cash and Cash Equivalents, beginning of period 237,091 921,220
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Cash and Cash Equivalents, end of period $676,031 $993,608
=============== ===============
Cash Paid during the Period for Interest $1,827,682 $1,107,141
=============== ===============
Cash Paid during the Period for Income Taxes $287,397 $127,466
=============== ===============
</TABLE>
SUPPLEMENTAL DISCLOSURE OF NON-CASH FINANCING ACTIVITIES
On June 1, 2000, the Company exchanged $499,950 of a note payable into 3,333
shares of common stock, which were previously held in treasury.
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<PAGE>
Efficiency Lodge, Inc.
NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
Nine Months Ended September 30, 2000
NOTE A -- BASIS OF PREPARATION
The accompanying unaudited interim consolidated financial statements of
Efficiency Lodge, Inc. (The "Company") have been prepared in accordance
with generally accepted accounting principles for interim financial
statements 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 September 30, 2000 are
not necessarily indicative of the results that may be expected for the
full year. The interim consolidated financial statements should be read
in conjunction with the Company's 1999 consolidated financial
statements and related notes.
NOTE B -- BASIC EARNINGS PER SHARE
Basic earnings per share is computed using the weighted average number
of shares of common stock outstanding. The weighted average number of
shares of common stock have been retroactively restated to account for
the 1 for 30 reverse stock split effective August 5, 1999.
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<PAGE>
Item 2. MANAGEMENT DISCUSSION AND ANALYSIS
Total assets increased during the third quarter from $27,462,761 on
December 31, 1999 to $29,127,682 on September 30, 2000. This increase is
primarily due to the purchase of a lodge located in Austell, Georgia during
third quarter 2000. The Austell lodge was purchased for $1,700,000 and debt
incurred for the same amount. Total liabilities increased during the third
quarter from $28,426,377 on December 31, 1999 to $29,009,586 on September 30,
2000. Mortgage notes payable had a net increase of $762,124 due to several
factors. Mortgage debt increased $1,774,538 as the result of the acquisition of
the Austell lodge and a rental property. Mortgage debt decreased due to the
reduction of a note for $499,950 in exchange for 3,333 shares of common stock
previously held in treasury and principal payments of $512,462 made during the
year. Other liabilities decreased $178,915 due to the reduction in the federal
and state income tax liability.
Revenue increased during the third quarter from $1,734,327 in 1999 to
$2,175,399 in 2000. Revenue increased from $4,967,998 to $6,235,878 for the nine
months ended September 30, 1999 and 2000, respectively. The increase is due to
the revenue generated by the new properties acquired since the third quarter of
1999. Since the third quarter of 1999, the Company has acquired three lodges, 56
single family residences, four duplex residential properties and one commercial
property occupied by a convenience store and an automobile repair shop.
Operating expenses increased in the third quarter from $1,133,482 in
1999 to $1,416,628 in 2000. Operating expenses increased from $2,783,185 to
$3,758,381 for the nine months ended September 30, 1999 and 2000, respectively.
An increase in depreciation expense, personnel cost and repair and maintenance
account for the majority of the increase. These expenses increased due to the
new properties acquired since third quarter 1999. Net other expense increased
from $391,208 in 1999 to $497,142 in 2000. The increase is primarily due to the
increase in interest expense in the third quarter 2000 of approximately
$172,000. Interest expense increased in 2000 because of the debt on the
properties acquired since the third quarter of 1999. A gain on the sale of
rental properties was also recognized during the third quarter 2000 of
approximately $99,000. Net other expense increased from $1,005,869 for the nine
months ended September 30, 1999 to $1,668,325 for the same period in 2000.
During the nine months ended September 30, 2000 interest expense increased
approximately $720,500 and the gain on the sale of fixed assets increased
$143,110.
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<PAGE>
Part II - OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K
(a) The following Exhibits are filed as part of this report:
Exhibit
Number Description
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27 Financial Data Schedule - (for SEC use only) (Revised)
(b) Reports on Form 8-K
None
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<PAGE>
SIGNATURE
In accordance with the requirements of the Exchange Act, the Registrant caused
this report to be signed on its behalf by the undersigned, thereunto duly
authorized.
EFFICIENCY LODGE, INC.
DATE: November 16, 2000 By: /s/ W. Ray Barnes
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W. Ray Barnes
President and Chief Executive Officer
DATE: November 16, 2000 By: /s/ Bonnie L. Byers
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Bonnie Byers
Secretary/Treasurer
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