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 April 30, 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
Same Name; Former Address - 8600 Doral Blvd., #304, Miami, Florida 33166
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 three-month period ended April
30, 1994, are not necessarily indicative of results to be expected
for the entire year ending January 28, 1995.
<TABLE>
SUN CITY INDUSTRIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
<CAPTION>
Three Months Ended
April 30, May 1,
1994 1993
<S> <C> <C>
Cash Flows From Operating Activities:
Net earnings $86,648 $56,773
Adjustments To Reconcile Net Earnings
To Net Cash (Used In) Or Provided By
Operating Activities:
Depreciation 121,094 104,233
Amortization of excess of purchase price
over fair market value of net assets
acquired 6,773 1,639
Provision for losses on accounts receivable (3,055) 38,192
Change in assets and liabilities:
(Increase) decrease in accounts
and trade notes receivable 580,031 (841,361)
(Increase) decrease in inventories 53,044 (69,648)
(Increase) in prepaid expenses (31,765) (23,680)
(Increase) decrease in other assets (168,704) (290,469)
(Decrease) increase in accounts payable (1,440,548) (94,799)
(Decrease) increase in accrued expenses 362,219 (34,433)
(Decrease) increase in income taxes payable (11,850) 3,687
Increase in deferred compensation payable 28,600 30,002
Total Adjustments (504,161) (1,176,637)
Net Cash (Used In) Or Provided By
Operating Activities $ (417,513) $(1,119,864)
</TABLE>
<TABLE>
SUN CITY INDUSTRIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Continued)
<CAPTION>
Three Months Ended
April 30, May 1,
1994 1993
<S> <C> <C>
Net Cash (Used In) Or Provided By
Operating Activities $ (417,513) $(1,119,864)
Cash Flows From Investing Activities:
Capital expenditures (106,322) (83,553)
Net Cash (Used In) Or Provided By
Investing Activities (106,322) (83,553)
Cash Flows From Financing Activities:
Proceeds from notes payable 732,744 1,150,000
Repayments on notes receivable 2,993 104,482
Principal payments on notes payable (441,043) (102,288)
Net Cash Provided By Or (Used In)
Financing Activities 294,694 1,152,194
Net (Decrease) Increase In Cash
and Equivalents (229,141) (51,223)
Cash and Equivanents, Beginning of Year 531,608 616,524
Cash and Equivalents, End of Year $ 302,467 $ 565,301
</TABLE>
<TABLE>
SUN CITY INDUSTRIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
<CAPTION>
Three Months Ended
April 30, May 1,
1994 1993
<S> <C> <C>
Sales $19,671,388 $17,325,417
Costs and Expenses
Cost of sales 18,200,560 16,197,051
Selling, general and administrative expenses 1,254,738 982,112
Interest expense 134,457 95,306
Other (income), net (9,165) (12,825)
---------- ----------
Total Costs and Expenses 19,580,590 17,261,644
---------- ----------
Earnings From Operations
Before Income Taxes $ 90,798 $ 63,773
Provision For Income Taxes 4,150 7,000
---------- ----------
Net Earnings $ 86,648 $ 56,773
========== ==========
Earnings Per Common And
Common Equivalent Share $ .06 $ .04
===== =====
Earnings Per Common Share
Assuming Full Dilution $ .05 $ .04
===== =====
</TABLE>
<TABLE>
SUN CITY INDUSTRIES, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
<CAPTION>
ASSETS April 30, 1994 May 1, 1993
<S> <C> <C>
CURRENT ASSETS:
Cash and equivalents $ 302,467 $ 565,301
Accounts and trade notes receivable,
less allowance for doubtful accounts
$176,000 and $172,000 in 1994 and 1993, respectively 5,708,600 5,408,883
Inventories 2,292,715 1,696,086
Notes receivable - current portion 12,664 11,665
Prepaid expenses 399,536 141,811
Investment in Joint Ventures 646,500 371,274
Total Current Assets 9,362,482 8,195,020
Properties, Plant and Equipment:
Land and improvements 159,058 157,235
Buildings and improvements 985,774 888,565
Machinery and equipment 4,186,766 3,754,236
5,331,598 4,800,036
Less accumulated depreciation 3,414,420 3,064,851
1,917,178 1,735,185
Property Held For Sale 422,314 444,000
Long-Term Notes Receivable 131,019 142,670
Excess of Purchase Price over Fair Market Value of Net Assets 443,280 258,771
Other Assets 1,051,741 1,086,109
Total $13,328,014 $11,861,755
Liabilities and Stockholders' Equity Arpil 30, 1994 May 1, 1993
CURRENT LIABILITIES:
Accounts payable $ 2,678,352 $ 3,477,426
Accrued expenses 869,933 356,777
Current portion of long-term debt 522,085 910,403
Income Taxes Payable 4,150 44,099
Total Current Liabilities 4,074,520 4,788,705
Deferred Compensation Payable 358,360 248,543
Long-Term Debt 5,721,518 3,955,717
Commitments - -
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 in 1994 and 1993, respectively 227,612 227,612
Capital in excess of par value 1,070,286 1,070,286
Retained earnings 4,938,938 4,687,112
6,236,836 5,985,010
Less, Treasury Stock at cost, 840,414 shares in 1994 and 1993 (2,692,220) (2,692,220)
Loan Receivable for Common Stock sold to ESOP (371,000) (424,000)
3,173,616 2,868,790
Total $13,328,014 $11,861,755
</TABLE>
Sun City Industries, Inc. and Subsidiaries
RESULTS OF OPERATIONS
During the three months ended April 30, 1994 sales revenues increased $2.3
million or 13.5% to $19,671,388 versus $17,325,417 reported for the like
quarter a year ago. Sales jumped $3,284,513 in the foodservice division, as
a result of a 32.4% increase in unit sales while sales in the egg division
decreased 10.9% or $952,810. This decrease resulted from an 8.2% reduction
in egg market prices, offsetting a 2.3% increase in egg unit sales.
%Increase
Division 1994 1993 (Decrease)
Foodservice $11,781,356 $ 8,496,843 38.7%
Eggs 7,818,256 8,771,066 (10.9%)
Other 71,776 57,508 24.8%
----------- ----------- ---------
$19,671,388 $17,325,417 13.5%
=========== =========== =========
Net earnings amounted to $86,648 or $.06 per share, reflecting a 53%
improvement as compared to the $56,773 and $.04 per share reported for the
first quarter of last year. Profitability from operations was 42% greater
than a year ago, reflecting a marked improvement in the foodservice division,
offset in part by increases in selling, general and administrative costs and
in interest expense.
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: June 13, 1994 Malvin Avchen
Malvin Avchen, C.E.O.
DATE: June 13, 1994 Syed Jafri
Syed Jafri, Treasurer
The financial statements for the three months ended April 30, 1994 and May 1,
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.
