SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
Quarterly report pursuant to Section 13 or 15 (d) of
the
Securities Exchange Act of 1934.
For the quarterly period ended June 30, 2000.
Commission file number 0-7107
Southern Scottish Inns, Inc.
LOUISIANA 72-0711739
(State or other jurisdiction of (IRS Employer
Incorporation or organization)
Identification No.)
1726 Montreal Circle, Tucker, Georgia
30084
(Address of principal executive offices) (Zip
Code)
Registrant's telephone number, including area code 770-
938-5966
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 be subject to such
filing
requirements for the past 90 days.
Yes X No
Indicate the number of shares outstanding of each of the issuer's
classes of common stock, as of the
latest practicable date.
Date Class
Outstanding
December 31, 1999 Common Stock 2,365,284
Shares
<PAGE>
SOUTHERN SCOTTISH INNS, INC. & SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
ASSETS
<TABLE>
<CAPTION>
June 30
December 31
2000
1999
(unaudited)
(audited)
CURRENT ASSETS:
<S> <C> <C>
Cash $ 52,520 $
75,253
Accounts Receivable - Net 1,213,067
1,124,962
Accounts Receivable - Affiliates 443,939
580,403
Income Tax Receivable .00
9,310
Mortgages & Notes - Affiliates 90,549
121,240
Mortgages & Notes Receivable 622,720
688,072
Inventory 40,819
40,819
Prepaid Expenses 47,570
50,098
Loans - Employees .00
213
Interest Receivable 455,009
464,505
Deferred Tax Asset 4,471
7,447
Total Current Assets: $ 2,970,664 $
3,162,322
PROPERTY, PLANT & EQUIPMENT:
Land $ 1,643,550 $
1,515,118
Buildings & Building Improvements 2,571,498
2,149,732
Furn. Fixtures & Equip. 623,490
561,128
Leasehold Improvements 152,107
331
Total Prop. & Equipment: 4,990,645
4,226,309
Less: Accum. Depreciation (1,195,052)
(1,123,004)
Total Prop. & Equip. (net): $ 3,795,593 $
3,103,305
OTHER ASSETS:
Mortg. & Notes Receivable $ 4,644,950 $
5,030,468
Mortg. & Notes - Affiliates 743,827
1,116,802
Investments in Unconsolidated Affiliates 375,565
119,832
Investments in Affiliates 125,422
188,896
Investments in Real Estate 235,752
235,752
Trademarks - Net 1,295,688
1,295,688
Organizational Costs 9,540
9,540
Deposits 4,498
4,498
Deferred Tax Asset 46,282
0
Marketable Equity Securities 27,131
26,676
Total Other Assets: $ 7,508,655 $
8,038,152
TOTAL ASSETS: $ 14,274,912 $
14,303,779
</TABLE>
<PAGE>
SOUTHERN SCOTTISH INNS, INC. & SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
LIABILITIES AND STOCKHOLDER'S EQUITY
<TABLE>
<CAPTION>
June 30
December 31
2000
1999
(unaudited)
(audited)
CURRENT LIABILITIES:
<S> <C> <C>
Accounts Payable - Trade $ 304,297 $
106,097
Interest Payable 175,233
174,668
Taxes Payable 74,769
179,260
Other Taxes Payable 304,028
189,683
Other Liabilities 433,742
546,982
Mortgages & Notes Payable 459,011
482,843
Mortgages & Notes Payable - Affiliates 53,229
118,327
Current Deferred Tax Liabilities 0
0
Deferred Severance Pay 12,000
12,000
Total Current Liabilities: $ 1,816,309 $
1,809,860
LONG TERM LIABILITIES
Mortgages & Notes Payable $ 1,102,062 $
1,308,603
Mortgages & Notes Payable - Affiliates 280,413
357,178
Escrow - Real Estate Taxes 18,543
15,000
Total Long Term Liabilities 1,401,018
1,680,781
DEFERRED AMOUNTS
Deferred Income - Installment $ 1,511,361 $
1,511,361
Deferred Income Taxes 145,460
101,839
Deferred Severance Pay 137,750
143,750
Total Deferred Amounts: $ 1,794,571 $
1,756,950
Total Liabilities &
Deferred Amounts: $ 5,011,898 $
5,247,591
Minority Interest 823,004
823,004
STOCKHOLDER'S EQUITY:
Common Stock-No Par Value Auth.
5,000,000 Sh. Issued &
Outstanding 2,349,729 $ 6,023,315 $
6,023,315
Paid-In Capital 42,201
42,201
Retained Earnings 2,167,668
2,167,668
Current Year's Income 206,826
Total Stockholder's Equity 8,440,010
8,233,284
TOTAL LIABILITIES &
STOCKHOLDER'S EQUITY: $14,274,912
$14,303,779
</TABLE>
<PAGE>
SOUTHERN SCOTTISH INNS, INC. &
SUBSIDIARIES
CONSOLIDATED STATEMENT OF INCOME
(UNAUDITED)
<TABLE>
<CAPTION>
FOR THE
SIX MONTHS ENDED
June 30
December 31
2000
1999
(Unaudited)
(Audited)
REVENUES:
<S> <C> <C>
Franchising Revenues $ 900,524 $
1,833,472
Financing Revenues 218,110
620,325
Sale of Furniture 0
439
Operating Lease Income 233,609
507,064
Gain on Sale of Assets 0
134,096
Investment Income 0
0
Legal Settlement Income 119,539
62,356
Other Income 8,776
374,697
Total Revenues: $1,480,558 $
3,532,449
COSTS AND EXPENSES:
Operating Expense - Franchise Division $ 848,283 $
1,595,417
Operating Expense - Financing & Investing 243,228
1,024,330
Cost of Sales - Furniture 0
4,174
Interest Expense 89,458
256,347
Depreciation & Amortization 72,048
238,590
Investment Loss 0
165,044
Loss on Sale of Property 0
0
Total Costs & Expenses $1,253,017 $
3,283,902
Income (Loss) from Continuing Operations
Before Taxes & Extraordinary Items 227,541
248,547
Less: Provisions for Income Taxes (15,004)
(171,439)
Income (Loss) before Minority Interest 212,537
131,108
Less: Minority Interest Income (Loss) of
Consolidated Subsidiaries (5,711)
(25,877)
NET INCOME (LOSS): $ 206,826 $
105,231
</TABLE>
<PAGE>
NOTE TO FORM 10 Q
A summary of the registrant's significant accounting policies is
set forth in
Note 1 to the consolidated financial statements of the registrant
and its
subsidiaries in the registrant's Annual Report on Form 10-K for
the fiscal year
ended December 31, 1999, filed with the Securities and Exchange
Commission,
which report should be read in conjunction with this interim
report.
In the opinion of management, the accompanying interim financial
statements
reflect all adjustments which are necessary to a fair statement of
the results
for the interim periods presented.
Item 6. Exhibits and Reports on Form 8-K.
No exhibits are required to be furnished in accordance with 17
C.F.R. Section
229.601.
<PAGE>
SIGNATURES
(Originals on File)
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 hereunto duly authorized.
SOUTHERN SCOTTISH
INNS, INC.
Date: July 13, 2000 By:
Jack M. Dubard,
President
(Chief Financial
Officer)
Date: July 13, 2000 By:
Mary R. Dubard, Corp.
Secretary
