U.S. SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-QSB
/X/ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 1999
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 No. 33-960-70-LA
THANKSGIVING COFFEE COMPANY, INC.
(Exact name of small business issuer
as specified in its charter)
California 94-2823626
(State or other jurisdiction of (IRS Employer
incorporation or organization) Identification Number)
19100 South Harbor Drive
Fort Bragg, California 95437
(Address of principal executive Officers) (Zip Code)
Issuer's telephone number, including area code: (707) 964-0118
(Former name, former address and former fiscal year,
if changed since last report.)
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 \ \
As of August 12, 1999, there were issued and outstanding
1,236,744 shares issued and share of common stock of the issuer.
<PAGE>
THANKSGIVING COFFEE COMPANY, INC.
INDEX
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements Page No.
Balance Sheet at June 30, 1999 and
December 31, 1998 [ ]
Statements of Income for the Three Months
Ended June 30, 1999 and June 30, 1998 and for
the Six Months Ended June 30, 1999 and June
30, 1998 [ ]
Statements of Cash Flows for the Six Months
Ended June 30, 1999 and June 30, 1998 [ ]
Notes to Financial Statements [ ]
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of Operations [ ]
PART II. OTHER INFORMATION
Item 1. Legal Proceedings [ ]
Item 2. Changes in Securities [ ]
Item 3. Defaults Upon Senior Securities [ ]
Item 4. Submission of Matters to a vote of Security-
Holders [ ]
Item 5. Other Information [ ]
Item 6. Exhibits and Reports on Form 8-K [ ]
<PAGE>
THANKSGIVING COFFEE COMPANY, INC.
Consolidated Balance Sheet
Jun 30, 1999 Dec 31, 1998
Unaudited Audited
ASSETS
Jun 30, 1999Dec 31, 1998
(Unaudited)Audited
CURRENT ASSETS
Cash 64,520 89,725
Short Term Investments 0 0
Accounts receivable 347,028 412,634
Note Receivable - 10,000 10,000
Griswold
Employee receivable 7,443 4,073
Inventory 460,430 473,718
Other receivables and 140,421 79,956
prepaids _________ _________
Total Current Assets 1,029,842 1,070,106
PROPERTY AND EQUIPMENT
Property, fixtures and 2,172,451 2,097,013
equipment
Accumulated depreciation (1,303,351) (1,210,609)
___________ ___________
Total Property and 869,100 886,404
Equipment
OTHER ASSETS
Deposits and other assets 42,340 41,291
Note Receivable - 22,028 22,028
Griswold
Intangibles, net of 259,374 264,480
amortization _______ _______
Total Other Assets 323,742 327,799
Total Assets 2,222,684 2,284,309
========= =========
See accompanying notes to financial statements
<PAGE>
THANKSGIVING COFFEE COMPANY, INC.
Consolidated Balance Sheet
LIABILITIES AND STOCKHOLDERS' EQUITY
Jun 30, 1999 Dec 31, 1998
(Unaudited) Audited
CURRENT LIABILITIES
Accounts payable 468,750 454,247
Notes payable-banks 75,150 75,150
Loan payable-shareholder 19,752 35,876
Accrued liabilities 12,433 37,336
Current portion of long 92,222 97,280
term debt _______ _______
Total Current 668,307 699,889
Liabilities
LONG TERM LIABILITIES
Note payable-long term 811,129 862,993
Notes Payable - 22,000 22,000
Shareholder
Deferred income taxes 0 0
_______ _______
Total Long Term 833,129 884,993
Liabilities
STOCKHOLDERS' EQUITY
Common stock - no par 861,618 872,816
value
1,960,000 shares
authorized;
1,236,744 shares
issued and outstanding at
September 30, 1998
Additional paid-in 24,600 24,600
capital
Unrealized Gain on 0 0
Investments
Retained earnings (164,970) (197,989)
_________ _________
Total Stockholders' 721,248 699,427
Equity _________ _________
Total Liabilities and 2,222,684 2,284,309
Stockholders' Equity ========= =========
<PAGE>
THANKSGIVING COFFEE COMPANY, INC.
Statements of Income (Unaudited)
Three Six
Months Months
Ended Ended
June 30 June 30
1999 1998 1999 1998
_________ _________ _________ _________
Net Sales 1,333,859 1,445,071 2,602,051 2,793,104
Cost of Sales 724,124 860,149 1,447,403 1,719,599
Gross Profit 609,735 584,922 1,154,648 1,073,505
Operating Expenses
Selling, General & 514,762 596,657 967,681 1,247,520
Administrative
Depreciation & 46,265 40,746 90,338 83,406
Amortization _______ _______ _________ _________
Total Operating 561,027 637,403 1,058,019 1,330,926
Expenses
Operating Income 48,708 (52,481) 96,629 (257,421)
Other (Income)Expense
Interest (Income) (365) (1,519) (1,327) (1,519)
Interest Expense 30,634 34,768 60,645 67,243
Miscellaneous 2,116 1,001 4,292 8,078
Expense(Income) ______ ______ _______ _______
Total Other 32,385 34,250 63,610 73,802
(Income) Expense
Income (Loss) 16,323 (86,731) 33,019 (331,223)
Before Taxes
Tax Expense (Credit) 0 (65,736) 0 (65,898)
Net Income (Loss) 16,323 (20,995) 33,019 (265,325)
<PAGE>
THANKSGIVING COFFEE COMPANY, INC.
Statements Of Cash Flow (Unaudited)
6 Months 6 Months
Ended Ended
Jun 30, 1999 Jun 30, 1998
____________ ____________
CASH FLOWS FROM OPERATING ACTIVITIES
____________________________________
Net income (loss) 33,019 (265,325)
Non cash items included in net income loss):
Depreciation and amortization 101,098 91,911
(Gain)Loss on Disposal of Assets 0 0
(Increase) Decrease in:
Short Term Investments 0 31,400
Receivables 62,236 18,617
Inventory 13,288 91,588
Commodities Options Account 0 0
Prepaid expenses/Other Receivables (60,465) 133,308
Deposits/Other Assets (1,050) (38,866)
Increase (Decrease) in:
Accounts payable 14,503 75,473
Accrued liabilities (15,336) 65,132
Deferred Income Taxes 0 (66,535)
Net cash provided (used) by Operating 147,293 136,703
Activities
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of property, plant, equipment (75,439) (45,500)
Purchase of intangible assets 0 0
Proceeds from Sale of Equipment 0 1,000
Repurchase of Common Stock (11,198)
Unrealized (Loss) Gain on Investments 0 (3,656)
Adjustment to Retained Earnings
Net cash provided (used) by Investing (86,637) (48,156)
Activities
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds (Repayment) of notes payable (85,861) (83,703)
(Increase) Decrease in notes receivable 0 37,477
Net cash provided (used) by Financing (85,861) (46,226)
Activities
Net Increase (Decrease) in Cash (25,205) 42,321
Cash balance, as of January 1, 1999 & 1998 89,725 46,872
Cash balance, as of June 30, 1999 & 1998 64,520 89,193
<PAGE>
THANKSGIVING COFFEE COMPANY, INC.
Notes to Financial Statements (Unaudited)
Note 1 - Basis of Presentation
The accompanying unaudited consolidated financial statements have
been prepared in accordance with generally accepted accounting
principles and reflect all adjustments necessary for a fair
presentation of the information reported (which consists only of
normal recurring adjustments). Because the Company's sales have
fluctuated significantly from quarter to quarter (See Seasonality
and Other Factors Affecting Performance section) due to the
holiday season and a variety of other factors, the results of
operations for the six months ended June 30, 1999 are not
necessarily indicative of the results to be expected for the full
year. The consolidated financial statements should be read in
conjunction with the financial statements, including notes
thereto, for the fiscal years ended December 31, 1998 and 1997,
which are included in the Company's Form 10-K for the year ended
December 31, 1998 filed on March 31, 1999.
Note 2 - Borrowings
At June 30, 1999 there were total borrowings of $1,020,253. The
Company had no lines of credit open at this point in time.
Note 3 - Impact of the Year 2000
The Year 2000 Issue is the result of computer programs being
written using two digits rather than four to define the
applicable year. Any computer programs that have time-sensitive
software may recognize a date using "00"as the year 1900 rather
than the year 2000. This could result in a system failure or
miscalculations causing disruptions of operations, including,
among other things, a temporary inability to process transactions
or engage in similar normal business activities. (See Impact of
the Year 2000 enclosed.)
The dates and cost estimates on which the Company believes it
will complete the Year 2,000 modifications are based on
management's best estimates, which are derived utilizing numerous
assumptions of future events, including the continued
availability of certain resources and other factors. However,
there can be no guarantee that these estimates will be achieved
and actual results could differ materially from those
anticipated. Specific factors that might cause such material
differences include, but are not limited to, the availability and
cost of personnel trained in this area, the ability to locate and
correct all relevant computer codes, and similar uncertainties.
Note 4 - Commitments and Contingent Liabilities
On May 18, 1999, Jeffrey E. Oberfelder initiated an action
against the Company in the Superior Court of Mendocino County,
California (Matter No. 81151). He claims that the Company
wrongfully terminated him from his position as a commissioned
salesman. Oberfelder seeks an accounting, payment of accrued
commissions, and payment of commissions into the indefinite
future. The Company believes the claims are without merit and
intends to vigorously defend against this matter. The ultimate
outcome of this matter cannot be determined at this time, and a
substantial judgment against the Company could have a material
adverse impact on its financial condition and results of
operations.
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
This Form 10-QSB contains certain forward looking statements,
which are subject to certain risks and uncertainties including
but not limited to fluctuations in the availability and costs of
green coffee beans, availability and sufficiency of trade credit
and other financing sources, competition in the Company's
businesses, inability to secure adequate capital to fund its
operations and working capital requirements, inability to
successfully implement its business plan, inability to
successfully extend the credit agreement with Wells Fargo and
other risks identified in the Company's Form 10-K for the year
ended December 31, 1997.
On October 10, 1996, the Company completed its public offering of
common stock. 235,744 shares were sold for an aggregate of
$1,178,720. The Company currently has 1,236,744 shares issued
and outstanding.
The Company continues to sublease its retail coffee shop in Fort
Bragg, California (the "Cafe") to a third party which sells,
among other things, the Company's coffee products. The sublease
extends through January 2001.
RESULTS OF OPERATIONS
Three Months Ended June 30, 1999 Compared With Three Months Ended
June 30, 1998
Consolidated net sales for the three months ended June 30, 1999
were $1,333,859, a decrease of 8% from net sales of $1,445,071
for the same period in fiscal 1998. Income for the three months
ended June 30, 1999, was $16,323 compared to a loss of $20,995
for the three months ended June 30 in fiscal 1998.
The decrease in net sales was due to a decrease in coffee sales
of 8% or $98,000, resulting from lower volume in the Company's
route distribution system caused by price increases initiated in
mid to late 1998. Sales outside of the route system and in the
direct marketing division were up slightly for the quarter.
Sales for the quarter for the bakery division were flat with last
year.
Gross margin (gross profit as a percentage of net sales)
increased to 46% for the three months ended June 30, 1999 from
40% in the same period in 1998.
The Company's coffee gross margins (exclusive of the Bakery)
increased from 42% for the three months ended June 30, 1998 to
48% in the same period of fiscal 1999. Lower cost of green beans
coupled with improved efficiency and higher selling prices
improved overall gross margins.
Selling, general and administrative expenses decreased nearly
14%, from $596,657 (41% of net sales) in the three months ended
June 30, 1998 to $514,762 (39% of net sales) for the same period
in fiscal 1999. The decrease in selling, general and
administration expense is primarily due to a significant decrease
in mail order expenses of $35,000 because of the elimination of a
catalogue and corresponding mailing expenses and a decrease in
personnel expenses of approximately $50,000.
Depreciation and amortization expense increased nearly 14% from
$40,746 for the three months ended June 30, 1998 to $46,265 for
the same period in 1999 as a result of the purchase of additional
fixed assets.
Interest expense decreased 12% from $34,768 for the three months
ended June 30, 1998 to $30,634 for the same period in fiscal
1999, as a result of decreased total borrowings of $138,635 from
the balance at June 30, 1998 to June 30, 1999. Interest expense
as a percentage of net sales decreased slightly to 2.3% for the
three months ended June 30, 1999 from 2.4% for the three months
ended June 30, 1998.
Even though the Company incurred a gain for the three months
ended June 30, 1999, it did not incur any tax expense.
Management deemed the recording of any tax liability as
unnecessary since the Company has sufficient tax loss carry
forwards to offset taxable income in the foreseeable future.
As a result of the foregoing factors, the Company incurred a net
profit of $16,323 for the three months ended June 30, 1999
compared with a net loss of $20,995 for the three months ended
June 30, 1998.
Six Months Ended June 30, 1999 Compared With Six Months Ended
June 30, 1998
Consolidated net sales for the six months ended June 30, 1999
were $2,602,051, a decrease of 7% over net sales of $2,793,104
for the same period in 1998. Of this decline, $16,000 was due to
lost sales because the close of the cafe in February 1998,
$12,000 was due to a decrease in direct marketing sales and
$163,053 was due to a decrease in direct distribution because of
increased prices. The Bakery sales grew 4% or $13,000 during the
same time period.
Gross margin (gross profit as a percentage of net sales)
increased from 40% for the six months ended June 30, 1998 to 46%
for the same period in 1999. The Company's core coffee gross
margins increased from 41% for the six months ended June 30, 1998
to 47% in the same period of fiscal 1999. Higher selling prices
offset by lower green bean costs and improved efficiency in
manufacturing and roasting resulted in improved margins.
Selling, general and administrative expenses decreased 22% from
$1,247,520(45% of net sales) in the six months ended June 30,
1998 to $967,681 (37% of net sales) in the six months ended June
30, 1999. The decrease in selling, general and administrative
expense is primarily due to decreasing mail order expenses of
$60,000, reduced personnel expense of approximately $100,000, and
lower administrative expenses of nearly $100,000.
Depreciation and amortization expenses increased 8% from $83,406
for the six months ended June 30,1998 to $90,338 for the same
period in 1999 as a result of equipment purchases in the
intervening period.
Interest expense decreased 10% from $67,243 for the six months
ended June 30, 1998 to $60,645 for the six months June 30, 1999
as a result of lower total borrowings. Interest expense as a
percentage of net sales decreased from 2.4% for the six months
ended June 30, 1998 to 2.3% for the six months ended June 30,
1999.
As a result of the foregoing factors, the Company incurred a net
profit of $33,019 for the six months ended June 30, 1999 compared
with a net loss of $265,325 for the six months ended June 30,
1998.
Even though the Company incurred a gain for the six months ended
June 30, 1999, it did not incur any tax liability. Management
deemed the recording of any tax liability as unnecessary since
the Company has sufficient tax loss carry forwards to offset
taxable income in the foreseeable future.
LIQUIDITY AND CAPITAL RESOURCES
At June 30, 1999 the Company had positive capital of $361,535.
Net cash provided by operating activities was $147,293 for the
six months ended June 30, 1999 compared to $136,703 provided by
operating activities for the six months ended June 30, 1998. Of
the $147,293, $33,019 was generated by net income, $101,098 was
provided by deprecation and amortization, and $62,236 was
provided by a reduction in receivables as a result of good
collections. These funds were offset by an increase in prepaid
expenses and other receivables of $60,465.
In the corresponding six month period in fiscal 1998, the funds
provided from operating activities consisted primarily of a net
loss of $265,325 offset by depreciation and amortization of
$91,911 and decreases in use of funds for inventory purchases of
$91,588 because of lower green bean costs, the decreases of
$133,308 in prepaid expenses and other receivables in addition to
a net increase in current liabilities of 74,070.
Net cash used in investing activities for the six months ended
June 30, 1999 was approximately $75,000, which primarily
represents the upgrade of the on-line internet web site and
catalogue of approximately $17,000, the purchase of two used
fifteen foot high cube vans for approximately $40,000, and the
purchase of brewing equipment of approximately $10,000. It also
includes the cost to repurchase common stock from shareholders
for about $11,000. During the same period in fiscal 1998 about
$45,000 was spent of the purchase of property plant and
equipment. This increase is consistent with management's budget
and business plan.
Included in net cash used by financing activities during the six
months ended June 30, 1999 was $85,861 net repayment of notes
payables primarily for equipment capital leases and the Wells
Fargo bank loan. In the same period for fiscal 1998 the Company
repaid $83,703 of notes payable in addition to a net decrease of
notes receivable for $37,477.
At June 30, 1999 the Company had total borrowings of $1,020,253,
including $576,566 outstanding under the new note payable dated
January 6, 1999. Borrowings are secured by the Company's
accounts receivable, inventory, equipment, fixtures and
improvements. The loan terms contain certain limitations and
covenant restrictions, including limits on the occurrence of
additional indebtedness. At June 30,1999, the Company had no
open lines of credit.
The Company is dependent on successfully executing its business
plan to achieve profitable operations, obtaining additional
sources of borrowings (including normal trade credit), and
securing favorable financing arrangements (including lease
financing) to finance its immediate working capital needs. There
can be no assurance that the Company will be successful in this
regard. If the Company is not able to meet its credit
obligations the Company business could be materially and
adversely affected.
The Company maintained a revolving line of credit of up to
$650,000 in fiscal 1998. The credit agreement was renewed in the
fourth quarter of fiscal 1998; however, in January 1999 this
agreement was renegotiated and replaced with a two-year note
payable in the principal amount of $601,636 with a balloon
payment due after the end of two years of $441,199.68. In the
event that the Company is unable to renegotiate this balloon
payment before it becomes due, the Company's business would be
adversely effected.
The Company anticipates that its existing capital resources and
cash generated from operations will be sufficient to meet its
cash requirement for the next 12 months at its anticipated level
of operations.
IMPACT OF THE YEAR 2000
Currently, many hardware and software systems represent year data
with two rather than four digits (e.g. "01" instead of "2001").
This may cause hardware and software systems to produce erroneous
results and/or to malfunction when processing dates after
December 31, 1999. As a result, much of the hardware and
software of many companies may need to be updated or replaced in
order to correctly process dates after December 31, 1999.
The Company has reviewed and upgraded its information technology
during the past seventeen months. Since November 1997, it has
updated its main accounting software at the cost of $6,000 and
its LAN software for $4,200 in November of 1998. In January of
1999 the Company reviewed its hardware to assure compliance not
only for the year 2000 but also for leap year compatibility.
This review, which costs $300, did not require any change in
equipment. The only information technology that the Company has
yet to adapt is its mail order software. This change is
scheduled to be complete by the end of December 1999 at a cost of
approximately $3,500. However, there can be no assurance that
the Company will be able to complete such change on that
schedule. The Company has been informed by its vendors that
other information technology such as telephone and alarm systems
are either compliant or not date sensitive. Currently, this part
of the project is 70% complete.
The Company is in the process of reviewing its non-information
technology such as roasters, fillers and sealers with embedded
chips. The Company has received verbal acknowledgment from
manufacturers for the above that these roasters, fillers and
sealers are compliant or not date sensitive. This project is 25%
complete. Wells Fargo, the major bank of the Company, has
publicly stated its systems will be year 2000 compliant.
The Company has begun to poll its vendors and customers as to
their ability to cope with the year 2000 computer and other
related issues. The Company anticipates having this
vendor/customer program completed by October 1999 and will
prepare a contingency plan of its largest vendors and customers
who cannot be year 2000 compliant. There can be no assurances;
however, that the Company will be able to complete such program
on that schedule or that any contingency plan will be successful.
This project is 35% complete.
The Company generates alternative power through diesel generators
to maintain plant operation schedules in the event of power
failures. However, accounting system applications would not
operate and would have to be recorded manually because of the
unfavorable effect of generator power on computers. The ability
of the Company to run on these generators is directly related to
its ability to obtain diesel fuel. Currently there is no problem
in procuring diesel fuel. The Company has received verbal
assurances from the local Telephone Company that service would
not be affected.
The Company expects that the "most reasonably likely worst" {sic}
case for year 2000 compliance scenarios to include failure of the
accounting systems and disruptions in the operations of third
parties due to their failure to attain year 2000 compliance. Any
such failures could impact the Company by causing delays in: (i)
the delivery of coffee and other products to the Company, (ii)
the obtaining of customer orders and the delivery of Company
products and (iii) the receipt of payments from Company
customers. The severity of these possible problems would depend
on the magnitude of the problem and how quickly it could be
corrected or an alternative implemented, which is unknown at the
time.
The project completion date is December 31, 1999, which is prior
to any anticipated impact on its operating systems. The Company
believes that with modifications to existing software and
conversions to new software, the year 2000 issue will not pose
significant operation problems for its computer systems.
However, there can be no guarantee that these estimates will be
achieved and actual results could differ materially from those
anticipated. Specific factors that might cause such material
differences include, but are not limited to, the availability and
cost of personnel trained in this area, the ability to locate and
correct all relevant computer codes, and similar uncertainties.
SEASONALITY AND OTHER FACTORS AFFECTING PERFORMANCE
The Company business is seasonal in nature. The seasonal
availability of green bean coffee in the first two quarters of
the year and increased sales in the last quarter historically
creates a high use of cash and a build up in inventories and
increase in the first two quarters with a corresponding decrease
in inventory and increase in cash in the last quarter. Because
of the seasonality of the Company business, results for any
quarter are not necessarily indicative of the results that may be
achieved for the full fiscal year. Furthermore, past seasonal
patterns are not necessarily indicative of future results. The
future Company results of operations and earnings could be
significantly affected by other factors, such as changes in
general economic conditions, changes in business conditions in
the coffee industry, fluctuations in consumer demand for coffee
products and in the availability and costs of green coffee beans,
increased competition, variances from budgeted sales mix and
growth rate, consumer acceptance of new products, inability to
secure adequate capital to fund its operating losses and working
capital requirements, inability to hire, train and retain
qualified personnel, concentration of production and sales in
Northern California, the loss of one or more major customers,
inability to produce coffee and tea, weather and other natural
disasters. There can be no assurance that sales will increase in
future quarters.
INDEMNIFICATION MATTERS
The Company Bylaws provide that the Company may indemnify its
directors, officers, employees and other agents to the fullest
extent permitted by California law. The Company believes that
indemnification under its Bylaws also permits the Company to
secure insurance on behalf of any officer, director, employee or
other agent for any liability arising out of his or her actions
in such capacity, regardless of whether California law would
permit indemnification. The Company maintains such liability
insurance for its directors and certain officers and employees.
At present, there is no pending litigation or proceeding
involving any director, officer, employee or agent of the Company
where indemnification would be required or permitted. The
Company is not aware of any pending or threatened litigation or
proceeding that might result in a claim for such indemnification.
SUMMARY OF RECENT DEVELOPMENTS
In the first quarter of 1999 the Board of Directors has
authorized the minimum repurchase of Company common stock up to
an amount not to exceed 5% of the Company net income calculated
quarterly on a year to date basis. Any repurchases are subject
to certain legal requirements and the covenants associate with
Company debt.
The Company is actively pursuing the sale of Bakery and has
listed the business with a real estate agent.
<PAGE>
PART II - OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
See the discussion in "Note 4 - Commitments and Contingent
Liabilities" in the Notes to Financial Statements in Part I
hereof, which is incorporated herein by reference.
ITEM 2. CHANGES IN SECURITIES
- - Not Applicable -
ITEM 3. DEFAULTS UPON SENIOR SECURITIES
- - Not Applicable -
ITEM 4. SUBMISSION OF MATTERS TO a VOTE OF SECURITY HOLDERS
- - Not Applicable -
ITEM 5. OTHER INFORMATION
- - Not Applicable -
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
a0 Exhibits
27.1 Financial Data Schedule (electronic only).
b0 Form 8-K
No reports on Form 8-K were filed during the period from January
1, 1999 through June 30, 1999.
<PAGE>
SIGNATURES
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.
THANKSGIVING COFFEE COMPANY, INC.
Name Title Date
/s/ Paul Katzeff Chief Executive Officer August 13, 1999
Paul Katzeff
/s/ Joan Katzeff President August 13, 1999
Joan Katzeff
<PAGE>
EXHIBIT INDEX
27.1 Financial Data Schedule (electronic only).
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
UNAUDITED CONSOLIDATED BALANCE SHEET AND STATEMENTS OF INCOME, WHICH ARE
INCLUDED IN THE COMPANY'S FORM 10-QSB FILED HEREWITH, AND IS QUALIFIED IN ITS
ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1999
<PERIOD-END> JUN-30-1999
<CASH> 64
<SECURITIES> 0
<RECEIVABLES> 364
<ALLOWANCES> (17)
<INVENTORY> 460
<CURRENT-ASSETS> 1,030
<PP&E> 2,172
<DEPRECIATION> (1,303)
<TOTAL-ASSETS> 2,223
<CURRENT-LIABILITIES> 668
<BONDS> 833
0
0
<COMMON> 862
<OTHER-SE> (140)
<TOTAL-LIABILITY-AND-EQUITY> 2,223
<SALES> 2,602
<TOTAL-REVENUES> 2,602
<CGS> 1,447
<TOTAL-COSTS> 1,447
<OTHER-EXPENSES> 1,058
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 61
<INCOME-PRETAX> 33
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 33
<EPS-BASIC> 0.03
<EPS-DILUTED> 0.03
</TABLE>
