FORM 10-QSB
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
( X ) Quarterly Report Under Section 13 or 15(d) of
The Securities Exchange Act of 1934
For the Quarterly period Ended: July 31, 1997.
OR
( ) Transition Report Under Section 13 or 15(d)
The Securities Exchange Act of 1934
Commission File Number O-2825
SWISS CHALET, INC.
(Exact name of Registrant as specified in its charter)
COMMONWEALTH OF PUERTO RICO 66-020-0307
(State or other jurisdiction of (I.R.S. Employer
Incorporation or Organization) Identification No.)
105 De Diego Avenue
Santurce, Puerto Rico 00911
(Address of principal executive offices) (Zip Code)
(787)721-1200
(Registrant's telephone number, including area code)
Unchanged
(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 requirements for the past 90 days.
Yes__X___ No ______
Indicate by check mark whether the Registrant has filed all documents and
reports required to be filed by Sections 12,13 or 15(d) of the Securities
Exchange Act of 1934 subsequent to the distribution of securities under a
plan confirmed by a court.
Yes__X___ No______
Indicate the number of shares outstanding of each of the issuer's classes
of Common Stock as of the latest practical date :
Number of shares of Common Stock outstanding at July 31,1997: 1,401,162
PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL INFORMATION
SWISS CHALET, INC.
CONDENSED STATEMENTS OF INCOME
FOR THE THREE MONTHS ENDED JULY 1997 AND 1996
(UNAUDITED) - NOTE A
THREE MONTHS ENDED
JULY 31
1997 1996
________________
Net Sales and $1,174,401 $1,149,647
Other Income
COST AND EXPENSES
Cost of Sales 19,192 22,513
Operating Expenses 866,674 861,988
and other deductions
__________ ___________
NET INCOME $ 288,535 265,146
Weighted Average 1,401,162 1,401,162
Number of Common
Shares Outstanding
NET INCOME PER SHARE 0.21c 0.19c
-1-
SWISS CHALET, INC.
CONDENSED BALANCE SHEET
JULY 31, 1997
(UNAUDITED) - NOTE A
JULY 31
1997
__________
ASSETS
CURRENT ASSETS
Cash and Cash equivalents $1,755,501
Securities held to maturity 1,004,642
Accounts Receivable, Net 243,964
Inventories 37,526
Other Current Assets 30,716
__________
TOTAL CURRENT ASSETS $3,072,349
INVESTMENT IN CONDOMINIUM AND LAND
PROPERTY, PLANT AND EQUIPMENT, Net 2,968,176
OTHER ASSETS 67,116
__________
TOTAL ASSETS $6,107,641
__________
LIABILITIES AND SHAREHOLDER'S EQUITY
CURRENT LIABILITIES
Accounts Payable and Accrued Expenses $ 638,719
Dividends Payable 96,545
__________
TOTAL CURRENT LIABILITIES $ 735,264
Deferred Compensation Liability 58,200
SHAREHOLDER'S EQUITY
Common Stock at stated value $ 700,581
Additional paid in capital 24,069
Retained Earnings 4,589,527
__________
$5,314,177
__________
TOTAL LIABILITIES $6,107,641
__________
-2-
SWISS CHALET, INC.
CONDENSED STATEMENTS OF CHANGES IN CASH FLOWS
FOR THE THREE MONTHS ENDED JULY 31, 1997 AND 1996
(UNAUDITED) - NOTE A
THREE MONTHS ENDED
JULY 31
1997 1996
Cash Flow from Operations :,
Net Income $ 288,535 $ 265,146
Adjustments (net) 188,453* 556
__________ __________
Net Cash from operations $ 476,988 $ 265,702
Cash Flow from Investing activities ( 35,102) $( 50,145)
Cash Flow from Financing activities ( 968,788) ( 899,183)
__________ _________
Increase/(Decrease) in Cash Flow $( 526,902) $( 683,626)
Cash and Cash equivalents - beginning 2,282,403 2,740,386
__________ __________
Cash and Cash equivalents - ending $1,755,501* $2,056,760
*Includes approx. $220,000 credited to the bank account in error by
Company's securities broker. This was corrected in August.
-3-
SWISS CHALET, INC.
NOTES TO CONDENSED FINANCIAL STATEMENTS (UNAUDITED)
NOTE A - BASIS OF PRESENTATION
The accompanying unaudited Condensed Financial Statements have been
prepared in accordance with the instructions to Form 10-QSB and, therefore,
do not include all information and footnotes necessary for a fair
presentation of financial position in conformity with generally accepted
accounting principles. The unaudited Condensed Financial Statements contain
all adjustments (consisting only of normal recurring adjustments) which
are, in the opinion of Management, necessary to a fair statement of the
results for the period presented. The interim results are not necessarily
indicative of the results which may be expected for the full year. The
subject Condensed Financial Statements should be read in conjunction with
the summary of significant accounting policies set forth in Note 1 to the
Financial Statements included in the Company's Annual Report to
Shareholders for the year ended April 30, 1997.
Depreciation of the original building is spread over a 50 year life
while equipment is depreciated over useful lives ranging from 5 to 10 years
depending on its type.
NOTE B - PROVISIONS FOR INCOME TAX
Local Income Tax is not provided for until the year end. however, if
such provision had been made it would have amounted to less than $25,000.00
for the three month period.
-4-
PART I
SWISS CHALET, INC.
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
The following is Management's discussion and analysis of certain
significant factors which have affected the Company's earnings during the
periods included in the accompanying Condensed Statements of Income.
A summary of the period to period changes in the principal items
included in the Condensed Statement of Income is shown below:
THREE MONTHS ENDED
JULY 31
INCREASE
(DECREASE) %
__________ _____
Net Sales & Other Income $ 24,754 2.2
Cost of Sales ( 3,321) (14.8)
Operation Expenses and 4,686 0.5
Other Deductions
Net Income 23,389 8.8
-5-
SWISS CHALET, INC.
The comparative table of occupancies and average rates is shown below
for the three month period.
Occupancy Average Rate
1996 1995 1996 1995
May 64% 66% $89.00 $86.96
June 72% 70% 90.16 87.16
July 71% 70% 85.86 85.35
Average 3 mon. 69% 68% $88.30 $86.48
The Company continues to pursue its policy of competitive rates both
for groups and special weekends packages during the slower summer season.
Despite increased competition (with more hotel rooms due to open this year)
the Company has been able to retain the progress in income and occupancy
made last fiscal year. Expense and payroll have been well controlled. A
decline in revenues and profitability is expected in the upcoming quarter
when compared to the prior year as the Company was used as a center for
hurricane relief efforts during September and October 1996 which created
an unusual degree of profitability in what are,traditionally, slow months.
The Company's primary source of working capital is from funds provided
from operations. Working capital increased over the three month period by
$263,439 and, as mentioned in previous reports, all long term debt has been
repaid. The Company believes that it's excess cash from operations will be
sufficient to finance it's long and short term capital needs including the
payment of accrued dividends.
PART II
6. EXHIBITS AND REPORTS ON FORM 8K
NONE
-6-
SWISS CHALET, INC.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the Registrant has duly caused this report to be signed on its be half by
the undersigned thereunto duly authorized.
SWISS CHALET, INC.
DATE : Aug 27, 1997 BY:__________________________
PETER D. SOMECH
Treasurer, Director and
Principal Financial Officer
-7-
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THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
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TO SUCH 10QSB.
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<CIK> 0000095898
<NAME> SWISS CHALET , INC.
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<FISCAL-YEAR-END> APR-30-1998
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<CASH> 1,755,501
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<RECEIVABLES> 243,964
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<CURRENT-ASSETS> 3,072,349
<PP&E> 5,849,503
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<TOTAL-ASSETS> 6,107,641
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<OTHER-SE> 4,613,596
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<OTHER-EXPENSES> 866,674
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<INCOME-PRETAX> 288,535
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