|
|
|
|
|
|
|
|
|
|
|
|
|
|
Previous: PL BRANDS INC, 10QSB, 1998-02-25 |
Next: SUIZA FOODS CORP, 8-K, 1998-02-25 |
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549 Page 1 of 7
Sequentially
FORM 10-QSB Numbered Document
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarterly period ended July 31, 1997
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934 for the transition period from
__________________ to
------------------
Commission File Number 0-26454
PL BRANDS, INC.
(Exact Name of Small Business Issuer as specified in its Charter)
Delaware 98-0142664
(State or other Jurisdiction of I.R.S. Employer
Incorporation or Organization Identification No.)
10 Planchet Road, Unit 6, Concord, Ontario Canada CK4 2C8
(Address of principal executive offices) (Zip Code)
(905) 761-0888
(Issuer's telephone number)
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
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
Indicate the number of shares outstanding of each of the issuer's
classes of Common Equity, as of the latest practicable date.
Common Stock, $.001 par value 9,143,279
Title of Class Number of Shares outstanding
at July 31, 1997
No exhibits included.
<PAGE>
<TABLE>
<CAPTION>
PL BRANDS, INC.
CONSOLIDATED BALANCE SHEETS
UNAUDITED
As At As At
April 30, 1997 July 31, 1997
Assets
Current Assets
<S> <C> <C>
Cash $ 1,638 $ 1,477
Accounts Receivable $ 431,053 $ 509,923
Inventory $ 241,543 $ 292,005
Prepaid Expenses $ 7,070 $ 7,076
------------------- -----------------
Total Current Assets $ 681,304 $ 810,481
------------------- -----------------
Fixed Assets
Machinery & Equipment $ 713,442 $ 706,311
Leasehold Improvements $ 57,080 $ 57,125
Office Furniture & Equipment $ 34,968 $ 34,995
------------------- -----------------
$ 805,490 $ 798,431
Less: Accumulated Depreciation $ 592,082 $ 601,322
------------------- -----------------
Total Fixed Assets $ 215,408 $ 197,109
------------------- -----------------
Total Assets $ 896,712 $ 1,007,590
Liabilities and Stockholders' Equity
Current Liabilities
Bank Indebtedness $ 151,212 $ 223,433
Accounts Payable $ 584,939 $ 621,547
------------------- -----------------
Total Current Liabilities $ 736,151 $ 844,980
------------------- -----------------
Long Term Liabilities
Equipment Bank Loan $ 170,750 $ 126,367
------------------- -----------------
Total Long Term Liabilities $ 170,750 $ 126,367
------------------- -----------------
Stockholders' Equity
Common Stock: $.001 par value,
20,000,000 authorized $ 9,143 $ 9,143
Additional Paid-in Capital $ 2,128,906 $ 2,128,906
Accumulated Deficit $ (2,224,603) $ (2,176,313)
Cumulative Translation Adjustment $ 76,365 $ 74,507
------------------- -----------------
Total Stockholders' Equity $ (10,189) $ 36,243
------------------- -----------------
Total Liabilities and
Stockholders' Equity $ 896,712 $ 1,007,590
</TABLE>
2
<PAGE>
<TABLE>
<CAPTION>
PL BRANDS, INC.
CONSOLIDATED STATEMENTS OF EARNINGS
UNAUDITED
For the three For the three
months ending months ending
July 31, 1997 July 31, 1996
------------- -------------
<S> <C> <C>
Sales $ 592,682 $ 985,969
Cost of Sales $ 486,945 $ 881,398
----------------- -----------------
Gross Profit $ 105,737 $ 104,571
----------------- -----------------
Operating Expenses:
Salaries $ 26,895 $ 25,487
Accounting & Legal $ 3,357 $ 21,235
Consulting $ 1,624 $ 20,605
Telephone $ 4,304 $ 7,553
Insurance $ 0 $ 1,719
Bank Charges & Interest $ 5,783 $ 9,285
Travel $ 0 $ 1,295
Vehicles $ 1,924 $ 7,983
Office Expenses $ 3,261 $ 3,644
Business Taxes $ 0 $ 1,183
Bad Debts $ 0 $ 0
Marketing $ 0 $ 0
Debenture Interest $ 0 $ 0
----------------- -----------------
$ 47,148 $ 99,989
----------------- -----------------
Profit (Loss) from Operations $ 58,589 $ 4,582
----------------- -----------------
Other Income (Expenses)
Interest Income $ 0 $ 6
Gain (Loss) on Foreign Exchange $ 321 $ (12,640)
Depreciation and Amortization $ (10,620) $ (14,346)
----------------- -----------------
$ (10,299) $ (26,980)
----------------- -----------------
Net Profit (Loss) For The Period $ 48,290 $ (22,398)
3
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
PL BRANDS, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
UNAUDITED
For the three For the three
months ending months ending
July 31, 1997July 31, 1996
Operating Activities
<S> <C> <C>
Net Profit (Loss) For The Period $ 48,290 $ (22,398)
Adjustment to reconcile:
Depreciation and Amortization $ 11,240 $ 9,188
Foreign Currency Translation $ (321) $ 12,640
Change in Assets and Liabilities affecting cash flows:
Accounts Receivable $ (78,870) $ (244,486)
Inventory $ (50,462) $ (40,659)
Prepaid Expenses $ (6) $ 308
Accounts Payable $ 36,608 $ 221,362
Bank Indebtedness $ 72,221 $ 33,603
----------------- -----------------
Net Cash Provided By Operating Activities $ 38,700 $ (30,442)
----------------- -----------------
Investing Activities:
Purchase of Fixed Assets $ 7,059 $ 7,483
----------------- -----------------
Net Cash Provided By Investing Activities $ 7,059 $ 7,483
----------------- -----------------
Financing Activities:
Bank Loan-Equipment $ (44,383) $ (5,261)
Amts rec'd for deb & stock issuance $ 0 $ 52,800
Shareholder Loan $ 0 $ 0
Additional Paid In Capital $ 0 $ 0
Common Stock $ 0 $ 0
Foreign Exchange Gain (Loss) $ 321 $ (12,640)
----------------- -----------------
Net Cash Provided By Financing Activities $ (44,062) $ 34,899
----------------- -----------------
EFFECT OF EXCHANGE RATE CHANGES
ON CASH $ (1,858) $ (13,901)
----------------- -----------------
INCREASE (DECREASE) IN CASH $ (161) $ (1,961)
CASH BALANCE-BEGINNING $ 1,638 $ 4,047
CASH BALANCE-ENDING $ 1,477 $ 2,086
</TABLE>
4
<PAGE>
PL BRANDS, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
For The Three Months Ended July 31, 1997 and 1996
NOTE 1 - UNAUDITED INTERIM FINANCIAL INFORMATION
The unaudited interim financial statements are unaudited, but in
the opinion of the management of the Company, contain all adjustments,
consisting of only normal recurring accruals, necessary to present fairly the
financial position at July 31, 1997, the results of operations of the three
months ended July 31, 1997 and 1996, and the cash flows for the three months
ended July 31, 1997 and 1996. The results of operations for the three months
ended July 31, 1997 are not necessarily indicative of the results of operations
to be expected for the full fiscal year ended April 30, 1998. Reference is made
to the Company's Form 10- KSB.
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF RESULTS OF OPERATIONS AND
FINANCIAL CONDITION
Overview
Net revenues in the three months ended July 31, 1997 were
significantly lower than in the 1996 period due to lower sales volume, as
contrasted with a very strong first quarter of 1996. Cost of sales for the three
months ended July 31, 1997 were 82% of sales, respectively, compared to 89% for
the 1996 periods, primarily as a result of increases in materials and pressures
on sales prices in 1996. Operating expenses for the three months ended July 31,
1997 were significantly lower than in 1996 as a result of management's continued
cost cutting efforts.
The Company is not expected to become profitable, if at all, until
sales grow sufficiently (of which there can be no assurance) to support the
administrative burden. Consulting fees were paid for professional consultants,
not affiliated with the Company, regarding private label products, obtaining
customers, and potential acquisitions of private label product lines.
Liquidity
As of July 31, 1997, the Company's working capital deficit was
$34,499. The Company has obtained an operating line of credit from a bank in the
amount of $250,000 (CAN). As of July 31, 1997, the line of credit amount was US
$126,367. The Company intends to sell debt or equity to meet its cash
requirements not met from operations.
5
<PAGE>
PART II. OTHER INFORMATION
Item 1. LEGAL PROCEEDINGS
None
Item 2. CHANGES IN SECURITIES
None
Item 3. DEFAULTS UPON SENIOR SECURITIES
None
Item 4. SUBMISSION OF MATTER TO A VOTE OF SECURITY HOLDERS
None
Item 5. OTHER INFORMATION
None
Item 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits: None
(b) Reports on Form 8-K: None
6
<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.
Date:January 12, 1998 By: /s/ Robert Brown
-------------------------- ----------------
Robert Brown
Vice President Administration and Finance
(chief financial officer and
accounting officer and duly authorized officer)
7
<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.
Date: January 12, 1998 By:
Robert Brown
Vice President-Administration and Finance
(chief financial officer and
accounting officer and duly authorized officer)
7
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED
FROM THE
STATEMENTS FOR THE THREE MONTHS ENDED JULY 31, 1997 AND AS OF
JULY 31, 1997 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH
FINANCIAL STATEMENTS.
</LEGEND>
<CIK> 0000930817
<NAME> PL BRANDS, INC.
<MULTIPLIER> 1
<CURRENCY> US dollars
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> Apr-30-1997
<PERIOD-START> May-01-1997
<PERIOD-END> Jul-31-1997
<EXCHANGE-RATE> 1
<CASH> 1,477
<SECURITIES> 0
<RECEIVABLES> 509,923
<ALLOWANCES> 0
<INVENTORY> 292,005
<CURRENT-ASSETS> 810,481
<PP&E> 798,431
<DEPRECIATION> 601,322
<TOTAL-ASSETS> 197,109
<CURRENT-LIABILITIES> 844,980
<BONDS> 0
0
0
<COMMON> 9,143
<OTHER-SE> 27,100
<TOTAL-LIABILITY-AND-EQUITY> 1,007,590
<SALES> 592,682
<TOTAL-REVENUES> 592,682
<CGS> 486,985
<TOTAL-COSTS> 47,148
<OTHER-EXPENSES> (10,299)
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 48,290
<INCOME-TAX> 0
<INCOME-CONTINUING> 48,290
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 48,290
<EPS-PRIMARY> .00
<EPS-DILUTED> .00
</TABLE>
|
|