SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 10-Q
QUARTERLY REPORT UNDER SECTION 13 OR 15 (d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For Quarter October 29, 1994 Commission File no. 1-6914
SUN CITY INDUSTRIES, INC.
(Exact name of registrant as specified in its charter)
Delaware 59-0950777
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
5545 N.W. 35 Ave. Fort Lauderdale, FL 33309
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (305) 730-3333
Former name, former address and former fiscal year, if changed since last
report.
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15 (d) of the Securities Exchange Act
of 1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports) and (2) has been subject to
such filing requirements for the past 90 days.
Yes X No_____
FINANCIAL INFORMATION
The consolidated financial statements included herein have been prepared by
the Company, without audit, according to the rules and regulations of the
Securities and Exchange Commission. Certain information and footnote
disclosures normally included in financial statements prepared in accordance
with generally accepted accounting principles have been omitted pursuant to
such rules and regulations. The financial statements reflect, in the opinion
of management, all adjustments (which include only normal recurring
adjustments) necessary to present fairly the financial position and results
of operations as of and for the periods indicated. The statements should be
read in conjunction with the financial statements and the notes thereto
included in the Company's Annual Report on Form 10-K for the year ended
January 29, 1994.
The results of operations for the nine-month period ended October 29, 1994,
are not necessarily indicative of results to be expected for the entire year
ending January 28, 1995.
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SUN CITY INDUSTRIES, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
<TABLE>
<S> <C> <C>
ASSETS October 29, 1994 January 29, 1994
CURRENT ASSETS:
Cash and equivalents $ 534,150 $ 531,608
Accounts and trade notes receivable, less allowance for doubtful accounts -
$265,440 and $178,800 respectively. 5,572,330 6,285,576
Inventories 2,303,617 2,345,759
Notes receivable - current portion 13,245 12,384
Prepaid expenses 461,768 367,771
Investment in joint ventures 961,840 670,000
Total Current Assets 9,846,950 10,213,098
Property, Plant and Equipment:
Land and improvements 159,058 150,072
Buildings and improvements 1,022,685 880,495
Machinery and equipment 5,174,368 4,082,595
6,356,111 5,113,612
Less accumulated depreciation 3,667,377 3,228,898
2,688,734 1,884,264
Properties Held for Sale 409,590 470,000
Long-Term Notes Receivable 124,249 134,292
Excess of Purchase Price Over Fair Market Value of Net Assets 426,694 450,053
Other Assets 1,069,792 859,537
Total $14,566,009 $14,011,244
LIABILITIES AND STOCKHOLDERS' EQUITY October 29, 1994 January 29, 1194
CURRENT LIABILITIES:
Accounts payable $ 2,372,040 $4,118,900
Accrued expenses 1,919,266 507,714
Current portion of long-term debt 563,389 551,667
Income taxes payable 10,790 16,000
Total Current Liabilities 4,865,485 5,194,281
Deferred Compensation Payable 415,560 329,760
Long-Term Debt 5,881,766 5,400,235
Stockholders' Equity:
Preferred stock, no par value; authorized 300,000 shares; issued - none
Common stock, $.10 par value; 3,000,000 shares authorized:
2,276,116 shares issued, respectively 227,612 227,612
Capital in excess of par value 1,074,185 1,070,286
Retained earnings 5,111,396 4,852,290
6,413,193 6,150,188
Less, Treasury Stock at cost 838,164 and 840,414 shares
respectively. (2,691,995) (2,692,220)
Loan Receivable for Common Stock sold to ESOP (318,000) (371,000)
3,403,198 3,086,968
TOTAL $ 14,566,009 $14,011,244
/TABLE
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SUN CITY INDUSTRIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
<TABLE>
Nine Months Ended Three Months Ended
<S> <C> <C> <C> <C>
October 29, Ocotber 30, October 29, October 30,
1994 1993 1994 1993
Sales $51,763,884 $47,424,555 $16,743,302 $15,566,845
Costs and Expenses
Costs of sales 47,407,470 44,257,085 15,266,044 14,534,327
Selling, general and administrative expenses 3,652,838 2,738,027 1,224,895 899,672
Interest expense 457,926 300,558 171,132 103,742
Other (income), net (24,246) (41,307) ( 8,486) (11,931)
Total Costs and Expenses 51,493,988 47,254,363 16,653,585 15,525,810
Earnings From Operations Before Income Taxes $ 269,896 $ 170,192 $ 89,717 $ 41,035
Provision For Income Taxes (10,790) (15,000) (3,500) (1,000)
Net Earnings $ 259,106 $ 155,192 $ 86,217 $ 40,035
Earnings Per Common And Common Equivalent Share $ .17 $ .11 $ .06 $ .03
Earnings Per Common Share Assuming Full Dilution $ .17 $ .10 $ .06 $ .03
</TABLE>
<PAGE>
SUN CITY INDUSTRIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
Nine Months Ended
October 29, October 30,
1994 1993
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Earnings $ 259,106 $ 155,192
ADJUSTMENTS TO RECONCILE NET EARNINGS
TO NET CASH (USED IN) OR PROVIDED BY
OPERATING ACTIVITIES:
Depreciation 371,679 321,028
Amortization of excess of purchase price
over fair market value of net assets
acquired 23,359 6,300
Provision (Recovery) for losses on accounts
Receivable 86,646 (30,800)
CHANGE IN ASSETS AND LIABILITIES:
Decrease (increase) in accounts and
trade notes receivables 635,782 (663,625)
Decrease (increase) in inventory 42,142 (191,276)
(Increase) in prepaid expenses ( 93,997) (238,872)
(Increase) in investment in joint ventures (291,840) (389,000)
(Increase) in other assets (210,255) (159,670)
(Decrease) in accounts payable (1,746,860) (80,040)
Increase in accrued expenses 1,411,552 163,271
(Decrease) in income taxes payable (5,210) (25,412)
Increase in deferred compensation payable 85,800 90,002
TOTAL ADJUSTMENTS 308,798 (1,198,094)
NET CASH PROVIDED BY OR (USED IN)
OPERATING ACTIVITIES $ 567,904 $(1,042,902)
<PAGE>
SUN CITY INDUSTRIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Continued)
Nine Months Ended
October 29, October 30,
1994 1993
NET CASH PROVIDED BY OR (USED IN)
OPERATING ACTIVITIES $ 567,904 $(1,042,902)
CASH FLOW FROM INVESTING ACTIVITIES:
Capital expenditures (1,115,739) (311,493)
NET CASH (USED IN) INVESTING ACTIVITIES: (1,115,739) (311,493)
CASH FLOWS FROM FINANCING ACTIVITIES:
Principal payments on Long-term Debt (914,490) (674,077)
Proceeds from Long-term Debt 1,407,744 1,719,282
Proceeds from loan to ESOP 53,000 53,000
Proceeds from excercise of options 3,899 -
Proceeds from sale of Treasury Stock 224 -
NET CASH (USED IN) OR PROVIDED BY
FINANCING ACTIVITIES 550,377 1,217,003
NET INCREASE (DECREASE)
IN CASH AND EQUIVALENTS 2,542 (137,392)
CASH AND EQUIVALENTS, Beginning of year 531,608 616,524
CASH AND EQUIVALENTS, End of Year $ 534,150 $ 479,132
<PAGE>
SUN CITY INDUSTRIES, INC. AND SUBSIDIARIES
RESULTS OF OPERATIONS
During the nine months ended October 29, 1994, sales revenues increased
$4.3 million or 9.1% to $51,763,884 versus $47,424,555 reported for the
same period a year ago. Sales rose $7.8 million or 33.1% in the
foodservice division, while sales in the egg division decreased $3.4
million or 14.4%. The decrease in egg division sales results primarily
from a 8.2% reduction in egg market prices.
%Increase
Sales By Division 1994 1993 (Decrease)
Foodservice Division $31,279,817 $23,502,838 33.1%
Egg Division 20,281,120 23,689,162 (14.4%)
Other 202,947 232,555 (12.7%)
----------- ----------- ---------
$51,763,884 $47,424,555 9.1%
=========== =========== =========
Earnings for the nine months jumped 67.0% to $259,106 or $.17 a share
versus $155,192 or $.11 a share for the nine month period reported a
year ago.
The Company's third quarter was highlighted by a 115.4% improvement in
earnings and a 7.6% increase in sales. Net earnings amounted to
$86,217 or $.06 a share compared to $40,035 or $.03 a share reported
for the like quarter a year earlier. Leading the dramatic improvement
was our growing Foodservice Division, whose sales increased 33.1% and
24.2% for the year to date and third quarter respectively.
Overall, profit from operations grew 54.6% to $727,822 up from $470,750
for the nine months and 80.6% to $261,529 from $144,777 for the third
quarter. This increase more than offset a jump in interest expense of
$157,368 and $68,070 for the corresponding periods, resulting in the
improved net earnings increase of 67.0% or $103,914 for the nine months
and 115.4% or $46,182 for the third quarter.
OTHER DISCLOSURES:
INCOME TAXES
Effective February 1, 1993, the Company adopted Statement of Financial
Accounting Standards No. 109 (SFAS109) "Accounting for Income Taxes"
which supersedes Statement of Financial Accounting Standards No. 96
"Accounting for Income Taxes". Statement No. 109 requires the
recognition of deferred tax assets and liabilities based on differences
between financial reporting and tax bases of assets and liabilities
measured using enacted tax rates and laws that will be in effect when
the differences are expected to reverse. The adoption of Statement No.
109 had no impact on the Company's financial statements.
SALES OF UNREGISTERED SECURITIES (DEBT OR EQUITY)
On March 18, 1994 the Company completed a private placement offering by
raising $700,000 in five year Senior Subordinated Convertible
Debentures carrying a fixed rate of 8%. The debentures are convertible
in common stock at $3.25 per share.
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.
SUN CITY INDUSTRIES, INC.
REGISTRANT
DATE: 12/14/94 ____________________________
Malvin Avchen, C.E.O.
DATE: 12/14/94 ____________________________
Syed Jafri, Treasurer
The financial statements for the nine months ended October 29, 1994 and
October 30, 1993, respectively, are unaudited but are prepared in
conformity with accounting principles used at our last fiscal year end
and include all adjustments which the Company considers necessary for a
fair presentation.
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THE SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED
FROM SUN CITY INDUSTRIES, INC. FINANCIAL STATEMENTS F.P.E 10-29-94
AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL
STATEMENTS.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> JAN-28-1995
<PERIOD-END> OCT-29-1994
<CASH> 534,150
<SECURITIES> 0
<RECEIVABLES> 5,851,021
<ALLOWANCES> 265,446
<INVENTORY> 2,303,617
<CURRENT-ASSETS> 9,846,950
<PP&E> 6,356,111
<DEPRECIATION> 3,667,377
<TOTAL-ASSETS> 14,566,009
<CURRENT-LIABILITIES> 4,865,485
<BONDS> 5,311,719
<COMMON> 227,612
0
0
<OTHER-SE> 3,175,586
<TOTAL-LIABILITY-AND-EQUITY> 14,566,009
<SALES> 51,763,884
<TOTAL-REVENUES> 51,763,884
<CGS> 47,407,470
<TOTAL-COSTS> 51,493,988
<OTHER-EXPENSES> 4,086,518
<LOSS-PROVISION> 86,646
<INTEREST-EXPENSE> 457,926
<INCOME-PRETAX> 269,896
<INCOME-TAX> 10,790
<INCOME-CONTINUING> 259,106
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 259,106
<EPS-PRIMARY> .17
<EPS-DILUTED> .17
</TABLE>
