SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-QSB
(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, 1998
OR
[ ] 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 0-26676
MULTIMEDIA CONCEPTS INTERNATIONAL, INC.
(Exact name of registrant as specified in its charter)
<TABLE>
<CAPTION>
<S> <C>
Delaware 13-3835325
(State or Other Jurisdiction of (I.R.S. Employer Identification No.)
Incorporation or Organization)
</TABLE>
1410 Broadway, Suite 1602, New York, New York 10018
(Address of Principal Executive Offices)
(212) 391-1111
(Registrant's Telephone Number, Including Area Code)
N/A
(Former Name, Former Address, and Former Fiscal Year,
if Changed Since Last Report)
Check whether the Issuer (1) has 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 registrant was required to file such
reports), and (2) has been subject to such filing requirements for the past 90
days. Yes [X] No [ ]
State the number of shares of each of the issuer?s classes of common equity
outstanding as of the latest practicable date: Common Stock, $.001 per share:
3,005,000 shares outstanding as of December 10, 1998.
<PAGE>
MULTIMEDIA CONCEPTS INTERNATIONAL, INC. AND SUBSIDIARIES
TABLE OF CONTENTS
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<CAPTION>
<S> <C>
PART I. FINANCIAL INFORMATION Page Number
Item 1. FINANCIAL STATEMENTS
Consolidated balance sheets as of September 30, 1998 (unaudited) 2
and March 31, 1998.
Consolidated statements of operations (unaudited) for the six months ended
September 30, 1998 and September 30, 1997. 3
Condensed statements of cash flows (unaudited) for the six-months ended
September 30, 1998 and September 30, 1997. 4
Notes to condensed financial statements 5
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS 7-11
PART II. OTHER INFORMATION 12
Item 1. LEGAL PROCEEDINGS
Item 2. CHANGES IN SECURITIES AND USE OF PROCEEDS 12
Item 3. DEFAULTS UPON SENIOR SECURITIES 12
Item 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS 12
Item 5. OTHER INFORMATION 12
Item 6. EXHIBITS AND REPORTS ON FORM 8-K 12
Signatures 13
</TABLE>
<PAGE>
MULTIMEDIA CONCEPTS INTERNATIONAL, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
As of September 30, 1998 and March 31, 1998
<TABLE>
<CAPTION>
Sept. 30, March 31,
1998 1998
(Unaudited) (Note 1)
ASSETS
CURRENT ASSETS:
<S> <C> <C>
Cash and cash equivalents ....................................................... $ 1,559,661 $ 1,635,058
Accounts receivable ............................................................. 538,502 404,288
Inventories ..................................................................... 12,279,130 7,929,061
Prepaid expenses and other current assets
939,759 189,516
Loans and advances-affiliate .................................................... 89,815 89,815
------------ ------------
Total current assets .................................................. 15,406,867 10,247,738
------------ ------------
PROPERTY AND EQUIPMENT-NET ...................................................... 3,560,642 2,782,386
------------ ------------
OTHER ASSETS:
Advances to equity investee ..................................................... 140,000 140,000
Deposits and other assets ....................................................... 2,512,040 2,580,459
------------ ------------
Total other assets .................................................... 2,652,040 2,720,459
------------ ------------
Total assets .......................................................... $ 21,619,549 $ 15,750,583
============ ============
LIABILITIES AND STOCKHOLDERS? EQUITY
CURRENT LIABILITIES:
Accounts payable ................................................................ $ 6,640,919 $ 3,593,811
Accrued expenses and other liabilities .......................................... 316,219 53,526
Current portion and other payable ............................................... 1,340,250 350,000
------------ ------------
Total current liabilities .................................................. 8,297,388 3,997,337
------------ ------------
LONG-TERM LIABILITIES:
Borrowings under financing agreement ............................................ 8,481,996 5,445,198
Note payable, net of current portion ............................................ 157,200 1,500,000
Deferred rent liability ......................................................... 119,453 110,351
------------
Total long-term liabilities ........................................... 8,758,649 7,055,549
------------ ------------
Total liabilities ..................................................... 17,056,037 11,052,886
------------ ------------
MINORITY INTEREST IN
SUBSIDIARIES (Note 3) ...................................................... 2,939,558 2,713,709
------------ ------------
STOCKHOLDERS? EQUITY:
Common stock, $.001 par value;
10,000,000 shares authorized,
3,005,000 shares issued and ............................................... 3,005 3,005
outstanding
Additional paid-in capital ................................................... 13,102,005 13,102,005
Retained earnings (Deficit) ..................................................... (11,481,056) (11,121,022)
------------ ------------
Total stockholders? equity ............................................ 1,623,954 1,983,988
------------ ------------
Total liabilities and
stockholders? equity ............................................... $ 21,619,549 $ 15,750,583
------------ ------------
</TABLE>
<PAGE>
MULTIMEDIA CONCEPTS INTERNATIONAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF OPERATIONS
(Unaudited)
<TABLE>
<CAPTION>
For the Three Months Ended For the Six Months Ended
Sept. 30, Sept. 30, Sept. 30, Sept. 30,
1998 1997 1998 1997
<S> <C> <C> <C> <C>
REVENUES, net sales .................................................. $ 6,656,037 $ 793,037 $ 13,978,783 $ 1,834,472
------------ ------------ ------------ ------------
COSTS AND EXPENSES:
Cost of sales ....................................................... 3,775,821 744,121 8,180,243 1,502,007
Operating expenses ................................................... 2,798,043 1,129 5,664,530 160,434
Depreciation and amortization ........................................ 194,029 -- 382,681 --
Total operating expense .................................... 6,767,893 745,250 14,227,454 1,662,441
------------ ------------ ------------ ------------
OPERATING INCOME (LOSS) .............................................. (111,856) 47,787 (248,671) 172,031
OTHER INCOME
Interest income .................................................... 2 -- 12,502 --
------------ ------------ ------------ ------------
INTEREST EXPENSE:
Interest and finance charges ........................................ 156,860 215,791 295,312 182,161
Amortization of debt issuance costs ................................. 27,202 -- 54,402 --
Total interest expense ...................................... 184,062 215,791 349,714 182,161
------------ ------------ ------------ ------------
INCOME (LOSS) BEFORE
MINORITY INTERESTS .................................................... (695,916) (168,004) (585,883) (10,130)
Minority interests (Note 3) ......................................... 124,471 -- 225,849 --
NET INCOME (LOSS) ..................................................... (171,445) (128,004) (360,034) (10,130)
Basic and Diluted income and (loss) per common share before minority interests
$ (.10) $ (.06) $ (.19) $ (.003)
Minority interests in net income (loss) of consolidated subsidiaries
.04 -- .08 --
------------ ------------ ------------ ------------
Basic and Diluted income (loss) per common share
$ (.06) $ (.06) $ (.11) $ (.003)
============ ============ ============ ============
Weighted average number of common shares outstanding
3,005,000 3,005,000 3,005,000 3,005,000
============ ============ ============ ============
</TABLE>
3
<PAGE>
MULTIMEDIA CONCEPTS INTERNATIONAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF CASH FLOWS
(Unaudited)
Increase (Decrease) in Cash
<TABLE>
<CAPTION>
Six Months Ended
Sept. 30, Sept. 30,
1998 1997
CASH FLOWS FROM OPERATING ACTIVITIES:
<S> <C> <C>
Net Income (loss) $(360,034) $(10,130)
Adjustments to reconcile net loss to cash (used) provided for operating
activities:
Depreciation and amortization 382,681 15,449
Deferred rent 9,102 -
Minority interests in net losses of subsidiaries 225,849 -
Changes in assets and liabilities:
Decrease in Accounts receivable (134,214) (25,136)
(Increase) in Merchandise inventories (4,350,069) (36,662)
Decrease in prepaid expenses and other current assets (750,243) -
Decrease in deposits and other assets 68,419 (50)
Increase in accounts payable 3,047,108 (100,380)
Increase in accrued expenses and other liabilities 262,695 (6,507)
Total adjustments (1,238,692) (153,286)
Net cash provided by operating activities (1,598,726) (163,416)
------------------ -----------------
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property and equipment (1,160,919) -
------------------
Net cash provided by (used for ) investing activities (1,160,919) -
------------------ -----------------
CASH FLOWS FROM FINANCING ACTIVITIES:
Net borrowings under financing agreement of subsidiary 3,036,798 -
Repayment of notes payable of subsidiary (352,550) -
Loans receivable-officer - (282,059)
Loans receivable from (repaid to) affiliate - (132,913)
Net cash provided by (used for) financing activities 2,684,248 (414,972)
------------------ -----------------
NET INCREASE (DECREASE) IN CASH (75,397) (578,388)
Cash, beginning of period 1,635,058 591,577
------------------ -----------------
Cash, end of period $1,559,661 $13,189
========== =======
Supplemental disclosure of cash flow information:
Interest paid $349,714 $ -
Taxes paid - -
</TABLE>
4
<PAGE>
MULTIMEDIA CONCEPTS INTERNATIONAL, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
Note 1. BASIS OF PRESENTATION:
The accompanying unaudited consolidated financial statements have been
prepared in accordance with generally accepted accounting principles for interim
financial information and the instructions to Form 10-QSB. Accordingly, they do
not include all the information and footnotes required by generally accepted
accounting principles for more complete financial statements. In the opinion of
management, the interim financial statements include all adjustments considered
necessary for a fair presentation of the Company?s financial position and the
results of its operations for the six months ended September 30, 1998 and are
not necessarily indicative of the results to be expected for the full fiscal
year. For further information, refer to the Company?s Transition report on Form
10-KSB for the six months ended March 31, 1998, as filed with the Securities and
Exchange Commission.
In December 1997, the Company?s Board of Directors voted to change the
Company?s fiscal year from September 30th to March 31st. The financial
statements for the six months ended September 30, 1997 have not been restated to
reflect the acquisition of United Textiles & Toys Corp. ("UTTC").
Note 2. DESCRIPTION OF COMPANY:
Multimedia Concepts International, Inc. (the "Company") is a Delaware
corporation which was organized in June 1994 under the name U.S. Food
Corporation. The Company changed its name to American Eagle Holdings Corporation
in April 1995 and then to its present name in June 1995. The Company was
initially formed as a holding company for the purpose of forming an integrated
clothing design, manufacturing, and distribution operation. The Company is
currently, in principle, a holding company for its two operating subsidiaries:
(i) its wholly owned subsidiary U.S. Apparel Corp. ("USAC") and (ii) its
majority owned subsidiary Play Co. Toys & Entertainment Corp. ("Play Co."),
owned by the Company via its ownership of 78.5% of the outstanding shares of
common stock of UTTC, which owns 60.6% of Play Co. All references to the
"Company" refer to USAC and Play Co. unless otherwise required by the context.
In February 1997, the Company formed a wholly-owned subsidiary, USAC, a New
York corporation, to design and manufacture a line of private label cotton tee
shirts and collared type tops predominately for men.
<PAGE>
MULTIMEDIA CONCEPTS INTERNATIONAL, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
Note 2. DESCRIPTION OF COMPANY: (continued)
In January 1998, UTTC issued 3,571,429 shares of its common stock to the
Company in full repayment of certain loans aggregating $1,000,000 previously
made by the Company to UTTC. This conversion of debt to equity was performed at
a price of $0.28 per share. As a result of the transaction, the Company acquired
78.5% ownership of UTTC.
Note 3. MINORITY INTERESTS:
The Company owns a majority interest (78.5%) in UTTC, which in turn owns a
majority interest (60.6%) in Play Co. The minority interest liability represents
the minority shareholders? portion (21.5%) of UTTC equity and (39.4%) of Play
Co.?s equity at September 30, 1998.
Note 4. INVESTMENT BY U.S. STORES CORP.:
On January 20, 1998, U.S. Stores Corp. ("U.S. Stores") acquired 1,465,000
shares of the Company?s Common Stock. U.S. Stores was incorporated on November
10, 1997. The Company?s President is also the President and a Director of U.S.
Stores. After this transaction, U.S. Stores held an aggregate of 1,868,000
shares of the Company?s Common Stock, or 62.2% of the outstanding shares,
effectively making the Company a subsidiary of U.S. Stores.
On February 28, 1998, American Telecom Corporation ("American Telecom")
acquired 100% of the outstanding common shares of U.S. Stores. American Telecom
was incorporated on July 11, 1997. The Company?s President is also the President
and a Director of U.S. Stores. After this transaction, American Telecom
effectively obtained beneficial control of the Company and its subsidiaries.
In April 1998, the shareholders of American Telecom exchanged all of the
outstanding common shares of American Telecom with American Telecom, PLC, a
publicly traded company in Great Britain. Additionally, American Telecom
exchanged all of the outstanding shares of U.S. Stores with American Telecom
PLC. The shareholders of American Telecom received shares of American Telecom,
PLC in the exchange. After this transaction, American Telecom effectively became
a subsidiary of American Telecom, PLC. Additionally, as part of this
transaction, American Telecom, PLC acquired 100% of the outstanding common
shares of U.S. Stores, thereby effectively making U.S. Stores a direct
subsidiary of American Telecom, PLC.
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS:
Results of Operations
Statements contained in this report which are not historical facts may be
considered forward looking information with respect to plans, projections, or
future performance of the Company as defined under the Private Securities
Litigation Reform Act of 1995. These forward looking statements are subject to
risks and uncertainties which could cause actual results to differ materially
from those projected.
Three months ended September 30, 1998 compared to three months ended
September 30, 1997
Consolidated sales for the three months ended September 30, 1998 were
$6,656,037. The consolidated sales for the three months ended September 30, 1998
include sales of Play Co. in the amount of $ 6,098,315 and sales reported by
USAC amounted to $557,722.
<PAGE>
Consolidated cost of sales for the three months ended September 30, 1998
were $3,775,821, or 56.7%, of sales. The component breakdown of this category
was as follows:
USAC $ 361,767
Play Co. 3,414,054
Consolidated operating expenses were $2,798,043, or 42%, of sales for the
three months ended September 30, 1998.
Consolidated depreciation and amortization expense in the three months
ended September 30, 1998 was $194,209, or 2.9% of sales.
Consolidated interest expense amounted to $184,062 for the three months
ended September 30, 1998, or 2.8% of sales.
For the three months ended September 30, 1998, subsequent to the adjustment
for the minority interest in the net losses of subsidiaries, the Company
reported a consolidated net loss of $171,445, or a basic loss of $0.06 per
common share.
Six months ended September 30, 1998 compared to the six months ended
September 30, 1997
Consolidated sales were $13,978,783 for the six months ended September 30,
1998. The consolidated sales for the six months ended September 30, 1998 include
$12,460,021 in sales from UTTC and Play Co. in the amount of $12,460,021, and
$1,518,762 in sales reported by USAC.
Consolidated cost of sales were $8,180,243, or 58.5% of sales, for the six
months ended September 30, 1998. The component breakdown of this category was as
follows:
USAC $1,059,858
Play Co. 7,120,385
Consolidated operating expenses were $5,664,530, or 40.5% of sales, for the
six months ended September 30, 1998.
For the six months ended September 30, 1998, consolidated non-cash
depreciation and amortization were $382,681, or 2.7% of sales.
Consolidated interest expense was $349,714, or 2.5% of sales, for the six
months ended September 30, 1998.
For the six months ended September 30, 1998, the Company reported a
consolidated net loss of $360,034 (after reflecting the adjustment for the
minority interests), or a basic loss per share of $0.11.
Liquidity and Capital Resources
At September 30, 1998, the Company reported consolidated cash and cash
equivalents of $1,559,661, working capital of $7,109,479 and stockholders?
equity of $1,623,954 reflecting the net loss of $360,034 for the six months
ended September 30, 1998.
During the six month period ending September 30, 1998, the Company, on a
consolidated basis, used $1,598,726 in cash in its operating activities. The
primary reason the cash was used for operating activities was the net investment
(increase in merchandise inventories less increase in accounts payable) in
inventories of $1,302,961.
The Company, on a consolidated basis, used $1,160,919 of cash in investing
activities during the six month period ended September 30, 1998. The primary
investing activity was the purchase of equipment and fixtures by Play Co. for
its new stores.
<PAGE>
The Company on a consolidated basis generated $2,684,248 from its financing
activities in the six month period ended September 30, 1998. These proceeds were
used to finance Play Co.?s capital requirements, capital expenditures, and
operating losses during the six months ended September 30, 1998.
As a result of the above factors, the Company, on a consolidated basis, had
a net decrease in cash of $75,397 in the six months ended September 30, 1998.
During the three month period ended September 30, 1998, Play Co. opened two
new stores. These stores, and all stores Play Co. intends to open in the future,
are considered by management to be high-end retail toy and educational,
electronic interactive stores, in presentation, which offer items comparable in
quality and choice to those offered by FAO Schwarz and Warner Brothers and
Disney Stores and which attract clientele similar to those attracted by such
stores. The first store opened in Primm, Nevada near Las Vegas in July 1998. The
second store opened in September in Grapevine, Texas near Dallas. Both stores
are located in high traffic shopping malls. The capital investment for building
each of those stores was approximately $300,000.
In early November 1998, Play Co. opened new stores in Thousand Oaks,
California near Los Angeles and in Auburn Hills, Michigan near Detroit. These
stores are also located in high traffic shopping malls. These two stores
represented an aggregate capital investment of approximately $613,000, net of
landlord tenant improvement ("Landlord TI") contributions.
On November 19 and 20, 1998, Play Co. opened two additional stores, one in
Orange County California and one in Gurnee, Illinois (near Chicago). These
stores represent the final two of the six stores Play Co. planned to open during
calendar year 1998. These two stores represented an aggregate capital investment
of approximately $500,000, net of Landlord TI contributions. Play Co. now has 25
stores located in six states.
Play Co. had planned to finance the costs, now estimated to be $1.7
million, net of Landlord TI contributions, of building the new stores described
above through a combination of capital lease financing, use of Play Co.?s
working capital, and the sale of additional equity. Play Co. has obtained
approximately $260,000 in lease financing on the equipment and fixtures of the
Nevada and Century City stores. Play Co. is also in the documentation phase of a
five year term loan in the principal amount of approximately $500,000 with a new
lender. That term loan will be secured by the equipment and fixed assets of the
new Texas store and three existing stores.
Play Co. continues to seek additional lease financing based on the
equipment and fixtures of its new stores in California (two), Michigan, and
Illinois. There can be no assurance that Play Co. will be able to obtain
sufficient financing to offset the new store opening costs that have been
incurred.
On September 18, 1998, Play Co. borrowed $1,000,000 from Amir Overseas
Capital Corp. ("Amir") under a Secured Subordinated Promissory Note. The Note
bears interest at 12% and calls for three installment payments ending December
23, 1998. On November 9, 1998, Play Co. borrowed an additional $250,000 from
Amir under a Promissory Note. The Note bears interest at 12% and calls for
repayment on January 29, 1998.
In September 1998, Play Co. and FINOVA Capital Corporation, Play Co.?s
working capital lender, amended Play Co.?s Loan and Security Agreement to
increase the maximum level of borrowings under same from $7.6 million to $8.6
million through December 31, 1998. Beginning on January 1, 1999, the maximum
level of borrowings will return to the $7.6 million level. Play Co. expects to
utilize this additional amount on its credit line to partially finance either
its working capital, particularly inventory purchases, or the capital
expenditures noted above.
<PAGE>
Year 2000
Earlier in 1998, Play Co. developed a plan to upgrade its existing
management information system ("MIS") and computer hardware and to become year
2000 compliant. Play Co. has now purchased the necessary hardware and software
and is in the process of installing the software. Play Co. has completed the MIS
hardware upgrade and plans to finish the year 2000 compliance work in early
1999.
To finance the cost of new hardware in the computer upgrade project, Play
Co. entered into a lease in the amount of $82,472 bearing interest at a rate of
10.8%. The total cost of the hardware and software purchased for the project was
approximately $100,000.
Beyond the above noted internal year 2000 system issue, Play Co. has no
current knowledge of any outside third party year 2000 issues that would result
in a material negative impact on its operations. Should Play Co. become aware of
any such situation, contingency plans will be developed.
Trends Affecting Liquidity, Capital Resources and Operations
As a result of its current merchandise mix, which emphasizes specialty and
educational toys, Play Co. enjoyed significant sales and gross profits in the
six months ended September 30, 1998. The mix of specialty and educational toys
includes collectible die cast cars, specialty yo-yo?s, Rokenbok and Learning
Curve toys, and Beanie Babies and other plush and many other educational toys.
While Play Co. believes that these particular toys will remain popular with its
customer base for the remainder of 1998, there can be no assurance that these
particular specialty toys will continue to contribute strongly to Play Co.?s
sales and gross profits. The history of the toy industry, however, indicates
that there is generally at least one highly popular toy every year.
Play Co.?s sales efforts are focused primarily on a defined geographic
consisting of the Southern California area and the Southwestern and Midwestern
United States. Play Co.?s future financial performance will depend upon (i)
continued demand for high-end specialty, educational, and traditional toys and
management?s ability to adapt to continuously changing consumer preferences and
the market for such items, (ii) general economic conditions within Play Co.?s
geographic market area, as same may be expanded, (iii) Play Co.?s ability to
choose locations for new stores, (iv) Play Co.?s ability to purchase products at
favorable prices and on favorable terms, and (v) the effects of increased
competition.
The toy and hobby retail industry faces a number of potentially adverse
business conditions including price and gross margin pressures and market
consolidation. Play Co. competes with a variety of mass merchandisers,
superstores, and other toy retailers, including Toys R Us, Kay Bee Toy Stores,
Walmart, and K Mart. Competitors that emphasize specialty and educational toys
include Disney Stores, Warner Brothers Stores, Learning Smith, Lake Shore, Zany
Brainy, and Noodle Kidoodle. There can be no assurance that Play Co.?s business
strategy will enable it to compete effectively in the retail toy industry or
that Play Co. will be able to generate sufficient revenues or have sufficient
control over expenses and other charges to increase profitability.
Inflation and Seasonality
The impact of inflation on Play Co.?s results of operations has not been
significant. Play Co. attempts to pass on increased costs by increasing product
prices over time.
Play Co.?s operations are highly seasonal with approximately 30-40% of its
net sales historically falling within Play Co.?s third quarter, which coincides
with the Christmas selling season. Play Co. intends to open stores throughout
the year, but generally before the Christmas selling season, which will make
Play Co.?s third quarter sales an even greater percentage of the total year?s
sales.
<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 Matters to a Vote of Security Holders:
On November 10, 1998, the Company held an annual meeting of its
stockholders, at which four Directors were elected to the Company's Board of
Directors to hold office for a period of one year or until their successors are
duly elected and qualified.
The results of the election of four Directors were as follows:
<TABLE>
<CAPTION>
Votes Cast
For Abstentions
<S> <C> <C>
Ilan Arbel 2,947,495 29,897
Rivka Arbel 2,947,495 29,897
Yair Arbel 2,947,495 29,897
Neil Grippa 600 0
</TABLE>
Item 5. Other Information: None
Item 6. Exhibits and Reports on Form 8-K:
Exhibits: The following are the exhibits filed with this Form 10-QSB:
27 - Financial Data Schedule
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 this 25th day of November, 1998.
MULTIMEDIA CONCEPTS INTERNATIONAL, INC.
(Registrant)
By: /s/ Ilan Arbel
Ilan Arbel
President
By: /s/ Allean Goode
Allean Goode
Treasurer
7
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
EXHIBIT 27
FINANCIAL DATA SCHEDULE
This schedule contains summary financial information extracted from Balance
Sheet, Statement of Operations, Statement of Cash Flows and Notes thereto
incorporated in Part 1, Item 1, of this Form 10-QSB and is qualified in its
entirety by reference to such financial statements.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 3-mos
<FISCAL-YEAR-END> mar-31-1999
<PERIOD-END> sep-30-1998
<CASH> 1,559,661
<SECURITIES> 0
<RECEIVABLES> 538,502
<ALLOWANCES> 0
<INVENTORY> 12,279,130
<CURRENT-ASSETS> 15,406,867
<PP&E> 7,416,704
<DEPRECIATION> (3,856,063)
<TOTAL-ASSETS> 21,619,549
<CURRENT-LIABILITIES> 8,297,388
<BONDS> 0
0
0
<COMMON> 3,005
<OTHER-SE> 1,620,949
<TOTAL-LIABILITY-AND-EQUITY> 21,619,549
<SALES> 13,978,783
<TOTAL-REVENUES> 13,978,783
<CGS> 8,180,243
<TOTAL-COSTS> 8,180,243
<OTHER-EXPENSES> 6,047,211
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 349,714
<INCOME-PRETAX> (360,034)
<INCOME-TAX> 0
<INCOME-CONTINUING> (360,034)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (360,034)
<EPS-PRIMARY> (.11)
<EPS-DILUTED> (.11)
</TABLE>
