<PAGE>
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 September 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 November 10, 1999, there were issued and outstanding
1,236,744 shares issued and share of common stock of the issuer.
<PAGE>
<PAGE>
THANKSGIVING COFFEE COMPANY, INC.
INDEX
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements Page No.
Balance Sheet at September 30, 1999 and
December 31, 1998 [ ]
Statements of Income for the Three Months Ended
September 30, 1999 and September 30, 1998 and for
the Nine Months Ended September 30, 1999 and
September 30, 1998 [ ]
Statements of Cash Flows for the Nine Months
Ended September 30, 1999 and September 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>
<PAGE>
THANKSGIVING COFFEE COMPANY, INC.
Consolidated Balance Sheet
Sept 30, 1999 Dec 31, 1998
Unaudited Audited
ASSETS
CURRENT ASSETS
Cash 45,219 89,725
Accounts receivable 390,003 412,634
Note Receivable - Griswold 10,000 10,000
Employee receivable 6,819 4,073
Inventory 397,816 473,718
Other receivables and 104,295 79,956
Prepaids _________ _________
Total Current Assets 954,151 1,070,106
Sept 30, 1999 Dec 31, 1998
Unaudited Audited
PROPERTY AND EQUIPMENT
Property, fixtures and 2,220,560 2,097,013
Equipment
Accumulated depreciation (1,354,238) (1,210,609)
___________ ___________
Total Property and 866,322 886,404
Equipment
OTHER ASSETS
Deposits and other assets 45,100 41,291
Note Receivable - Griswold 22,028 22,028
Intangibles, net of 255,196 264,480
amortization _______ _______
Total Other Assets 322,324 327,799
Total Assets 2,142,797 2,284,309
========= =========
See accompanying notes to financial statements
<PAGE>
<PAGE>
THANKSGIVING COFFEE COMPANY, INC.
Consolidated Balance Sheet
LIABILITIES AND STOCKHOLDERS' EQUITY
Sept 30, 1999 Dec 31, 1998
(Unaudited) Audited
CURRENT LIABILITIES
Accounts payable 341,416 454,247
Notes payable-banks 75,150 75,150
Loan payable-shareholder 19,752 35,876
Accrued liabilities 37,393 37,336
Current portion of long 97,280 97,280
term debt _______ _______
Total Current 570,991 699,889
Liabilities
LONG TERM LIABILITIES
Note payable-long term 775,060 862,993
Notes Payable - 17,000 22,000
Shareholder
_______ _______
Total Long Term 792,060 884,993
Liabilities
Sept 30, 1999 Dec 31, 1998
(Unaudited) Audited
STOCKHOLDERS' EQUITY
Common stock - no par 861,618 872,816
1,960,000 shares authorized;
1,236,744 shares issued and
outstanding at September 30,
1999
Additional paid-in capital 24,600 24,600
Investments
Retained earnings (106,472) (197,989)
_________ __________
Total Stockholders' 779,746 699,427
Equity _________ __________
Total Liabilities and 2,142,797 2,284,309
Stockholders' Equity ========= ==========
<PAGE>
<PAGE>
THANKSGIVING COFFEE COMPANY, INC.
Statements of Income (Unaudited)
Three Nine
Months Months
Ended Ended
Sept 30 Sept 30
1999 1998 1999 1998
_________ _________ _________ _________
Net Sales 1,451,989 1,377,239 4,054,040 4,170,343
Cost of Sales 792,622 779,638 2,240,025 2,499,237
Gross Profit 659,367 597,601 1,814,015 1,671,106
Operating Expenses
Selling, General & 519,518 475,641 1,487,199 1,723,161
Administrative
Depreciation & 49,604 42,676 139,942 126,082
Amortization _______ _______ _________ _________
Total Operating 569,122 518,317 1,627,141 1,849,243
Expenses
Operating Income 90,246 79,284 186,875 (178,137)
Other (Income)Expense
Interest (Income) (979) ( 281) (2,306) (1,800)
Interest Expense 29,807 29,310 90,452 96,553
Miscellaneous 2,054 1,298 6,346 9,375
Expense(Income) ______ ______ _______ _______
Total Other 30,882 30,327 94,492 104,128
(Income) Expense
Three Nine
Months Months
Ended Ended
Sept 30 Sept 30
1999 1998 1999 1998
_________ _________ _________ _________
Income (Loss) 59,363 48,957 92,382 (282,265)
Before Taxes
Tax Expense (Credit) 866 0 866 (65,897)
Net Income (Loss) 58,497 48,957 91,516 (216,368)
<PAGE>
<PAGE>
THANKSGIVING COFFEE COMPANY, INC.
Statements Of Cash Flow (Unaudited)
9 Months 9 Months
Ended Ended
Sept 30 Sept 30
1999 1998
-------- --------
CASH FLOWS FROM OPERATING ACTIVITIES
Net income (loss) 91,516 (216,368)
Non cash items included in net income (loss):
Depreciation and amortization 156,162 139,955
Receivables 19,885 30,738
Inventory 75,902 90,456
Commodities Options Account 0 26,389
Prepaid expenses/Other Receivables (24,339) 133,817
Deposits/Other Assets (3,809) (38,200)
Increase (Decrease) in:
Accounts payable (112,831) (361)
Accrued liabilities 57 38,188
Deferred Income Taxes 0 (66,535)
Net cash provided (used) by Operating 202,544 138,079
Activities
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of property, plant, equipment (123,547) (50,034)
Purchase of intangible assets (3,250) 0
Proceeds from Sale of Equipment 0 1,000
Repurchase of Common Stock (11,198) 0
Unrealized (Loss) Gain on Investments 0 (3,656)
Adjustment to Retained Earnings
Net cash provided (used) by Investing (137,994) (52,690)
Activities
<PAGE>
<PAGE>
9 Months 9 Months
Ended Ended
Sept 30 Sept 30
1999 1998
-------- --------
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds (Repayment) of notes payable (109,057) (120,192)
(Increase) Decrease in notes receivable 0 46,973
Net cash provided (used) by Financing (109,057) (73,219)
Activities
Net Increase (Decrease) in Cash (44,507) 12,170
Cash balance, as of January 1, 1999 & 1998 89,725 46,872
Cash balance, as of Sept 30, 1999 & 1998 45,219 59,041
<PAGE>
<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 nine months ended September 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 September 30, 1999 there were total borrowings of $984,242.
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,
<PAGE>
<PAGE>
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.
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, 1998.
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 September 30, 1999 Compared With Three Months
Ended September 30, 1998
Consolidated net sales for the three months ended September 30,
1999 were $1,451,989, an increase of 5.4% from net sales of
$1,377,239 for the same period in fiscal 1998. Such increase was
a result of new sales programs such as End the Embargo on Cuba,
fair traded coffees and new items added to our routes to build
volume in existing customers. Sales for the quarter for the
bakery division were flat with last year. Net income for
the three months ended September 30, 1999, was $59,363 compared
to net income of $48,957 for the three months ended September 30,
1998 or up 21%.
Gross margin (gross profit as a percentage of net sales)
increased by two percentage points from 43.3% for the three
months ended September 30, 1998 to 45.4% for the period ending
<PAGE>
<PAGE>
September 30, 1999. Coffee Company margins (exclusive of the
Bakery) increased to 48% for the three months ended September 30,
1999 from 40% for the same period in 1998. Lower cost of green
beans coupled with improved efficiency in manufacturing and
roasting resulted in higher margins.
Selling, general and administrative expenses increased nearly
$44,000 for the three months ended September 30, 1998 from
$475,641 to $519,518 at September 30, 1999. This increase was a
result of additional promotional spending, both on the Internet
and traditional sales venues of $16,000, higher legal, audit and
professional fees of $17,000 and $10,000 for additional personnel
to develop materials and programs for the End the Embargo coffee,
fair trade coffee, relief supplies to Nicaragua for the survivors
of Hurricane Mitch and to perform an environmental audit of the
Company.
Depreciation and amortization expenses increased 16% from $42,676
for the three months ended September 30, 1998 to $49,604 for the
same period in 1999. Increases in fixed assets resulted in
higher depreciation.
Interest expense was comparable at $29,000 for both the three
month period ended September 30, 1999 and September 30, 1998.
Even though the Company realized a profit for the three months
ended September 30, 1999 of nearly $59,000, it incurred only a
minor tax expense for restatement of 1997 state tax. 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 $58,497 for the three months ended September 30, 1999
compared with a profit of $48,957 for the three months ended
September 30, 1998.
Nine Months Ended September 30, 1999 Compared With Nine Months
Ended September 30, 1998
Consolidated net sales for the nine months ended September 30,
1999 were $4,054,040, a decrease of 3% over net sales of
$4,170,343 for the same period in 1998. Of this decline, $16,000
was due to lost sales because of the close of the cafe in
February, 1998, $40,000 due to a drop in volume of the route
distribution as the Company rationalized some accounts and
$60,000 due to decreased national sales as a result of slower
business in the Company's Far East accounts, offset by
improvements in sales noted in the third quarter comparisons
above.
Gross margin (gross profit as a percentage of net sales)
increased from 40% for the nine months ended September 30, 1998
to nearly 45% for the same period in 1999. Higher selling
prices coupled with lower green bean costs and improved
efficiency in manufacturing and roasting improved margins.
<PAGE>
<PAGE>
Selling, general and administrative expenses decreased 14% from
$1,723,161 in the nine months ended September 30, 1998 to
$1,487,199 in the nine months ended September 30, 1999, or nearly
$236,000. This reduction is a result of decreasing mail order
costs of $40,000, reduced personnel expense of $80,000, and lower
administrative expenses of nearly $90,000. However, as noted
above, operating expenses for the third quarter of 1999 actually
increased because of higher spending for promotions and legal
and audit fees.
Depreciation and amortization expenses increased by nearly
$14,000 from $126,082 for the nine months ended September 30,
1998 to $139,942 for the same period in 1999. Higher
depreciation was a result of newly acquired fixed assets.
Interest expense was down approximately $6,000 from $96,553 for
the nine months September 30, 1998 to $90,452 for the same period
in 1999. Lower borrowings as a result of payoff of some debt
during the year resulted in lower interest expense.
However, because of the mix of prime and fixed debt arrangements,
an increasing prime could increase the interest expense of the
Company.
As a result of the foregoing factors, the Company realized a net
profit of $91,516 for the nine months ended September 30, 1999
compared to a loss of $216,368 for the nine months ended
September 30, 1998.
Even though the Company realized a gain for the nine months ended
September 30, 1999, it incurred only a small tax liability
(established for re-filing of 1997 state tax). 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 September 30, 1999 the Company had positive capital of
$383,160. Net cash provided by operating activities was $202,544
for the nine months ended September 30, 1999 compared to $138,079
for the same period in 1998. Of the cash generated in 1999,
approximately $92,000 was a result of net income. Depreciation
and amortization (non cash expenses of the Company) totaling
$156,000 was offset by reductions in accounts receivable of
$20,000 which was a result of better collections and a $75,000
drop in inventory as a result of a lower bean costs. In the
corresponding nine month period in fiscal 1998, because the
Company sustained a loss, its cash was generated by depreciation
and balance sheet changes offset by the loss.
Net cash used in investing activities for the nine months ended
September 30, 1999 was approximately $138,000 compared to $53,000
in the same period in 1998. The purchase of more capital assets
in 1999 compared to 1998 caused this number to be higher for
1999. Additions included the web site and internet store
replacement $28,000, vehicles $50,000, fixtures $10,000, brewers
<PAGE>
<PAGE>
and grinders $18,000 and computer and telephone equipment
$10,000. It also includes the repurchase of $11,000 of common
stock from shareholders. These purchases were in line with
management's budget and business plan. During the same period in
fiscal 1998, only $50,000 of fixed assets were purchased.
Included in net cash used by financing activities during the nine
months ended September 30, 1999 was $109,057 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 $120,192 of notes payable in addition to a net
decrease of notes receivable for $46,973.
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 could be
adversely effected.
At September 30, 1999 the Company had total borrowings of
$984,242, including $561,525 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 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 current 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.
<PAGE>
<PAGE>
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. Wells Fargo, the
major bank of the Company, has publicly stated its systems will
be year 2000 compliant. The Company's payroll system is also
through Wells Fargo. 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 50%
complete
The Company has begun to poll its suppliers 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 50% 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" 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
<PAGE>
<PAGE>
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 total 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.
<PAGE>
<PAGE>
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 associated with
Company debt.
The Company continues to pursue the sale of the Bakery and has
listed the business with a real estate agent.
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
At the Company's meeting held in Fort Bragg at 10:00 a.m. on
October 15, 1999, the Company submitted for a vote of security
holders the reelection of all four members of the board of
directors and ratification of Sallman, Yang and Alameda as
independent public accountants. Below is a summary of the
results.
Proposal No. 1 Election of Four Directors
Name Shares for Against/Withheld Abstain
Paul Katzeff 983510 200 0
Joan Katzeff 983510 200 0
Larry Leigon 983510 200 0
Roy Doughty 983510 200 0
<PAGE>
<PAGE>
Proposal No. 2 Ratification of Sallman, Yang and Alameda, An
Accountancy Corporation, As Independent Public Accountants for
the Company.
Shares for Against/Withheld Abstain
983510 200 0
ITEM 5. OTHER INFORMATION
- - Not Applicable -
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
a. Exhibits
27.1 Financial Data Schedule (electronic only).
b. Form 8-K
No reports on Form 8-K were filed during the period
from January 1, 1999 through September 30, 1999.
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 November 8, 1999
- --------------------
Paul Katzeff
/s/ Joan Katzeff President November 8, 1999
- --------------------
Joan Katzeff
<PAGE>
<PAGE>
EXHIBIT INDEX
27.1 Financial Data Schedule (electronic only).
<PAGE>
<PAGE>
<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>
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1999
<PERIOD-END> SEP-30-1999
<CASH> 45
<SECURITIES> 0
<RECEIVABLES> 408
<ALLOWANCES> (18)
<INVENTORY> 398
<CURRENT-ASSETS> 954
<PP&E> 2,221
<DEPRECIATION> (1,354)
<TOTAL-ASSETS> 2,143
<CURRENT-LIABILITIES> 571
<BONDS> 792
0
0
<COMMON> 862
<OTHER-SE> (82)
<TOTAL-LIABILITY-AND-EQUITY> 2,143
<SALES> 4,054
<TOTAL-REVENUES> 4,054
<CGS> 2,240
<TOTAL-COSTS> 2,240
<OTHER-EXPENSES> 1,627
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 90
<INCOME-PRETAX> 92
<INCOME-TAX> 1
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 92
<EPS-BASIC> 0.07
<EPS-DILUTED> 0.07
</TABLE>
