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: January 31, 2000.
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 February 15,2000
: 1,401,162
PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL INFORMATION
SWISS CHALET, INC.
CONDENSED STATEMENTS OF INCOME
FOR THE NINE MONTHS ENDED JANUARY 2000 AND 1999
(UNAUDITED) - NOTE A
NINE MONTHS ENDED THREE MONTHS ENDED
JANUARY 31 JANUARY 31
2000 1999 2000 1999
_____________________ _______________________
Net Sales and $4,714,467 $3,867,134 $1,667,290 $1,648,154
Other Income
COST AND EXPENSES
Cost of Sales 76,321 58,464 23,232 23,342
Operating Expenses 2,965,722 2,757,827 1,028,925 1,003,124
and other deductions
Interest Expense - - - -
NET INCOME $1,672,514 1,050,843 615,133 621,688
Weighted Average 1,401,162 1,401,162 1,401,162 1,401,162
Number of Common
Shares Outstanding
NET INCOME PER SHARE 1.19c 0.75c 0.44c 0.44c
-1-
SWISS CHALET, INC.
CONDENSED BALANCE SHEET
JANUARY 31, 2000
(UNAUDITED) - NOTE A
JANUARY 31
2000
__________
ASSETS
CURRENT ASSETS
Cash and Cash equivalents $4,342,080
Securities held to maturity -
Accounts Receivable, Net 433,150
Inventories 34,825
Other Current Assets 55,906
__________
TOTAL CURRENT ASSETS $4,865,961
INVESTMENT IN CONDOMINIUM AND LAND
PROPERTY, PLANT AND EQUIPMENT, Net 3,393,831
OTHER ASSETS 128,121
__________
TOTAL ASSETS $8,387,913
__________
LIABILITIES AND SHAREHOLDER'S EQUITY
CURRENT LIABILITIES
Accounts Payable and Accrued Expenses $ 656,464
Dividends Payable 132,286
__________
TOTAL CURRENT LIABILITIES $ 788,750
Deferred Compensation Liability 125,100
SHAREHOLDER'S EQUITY,
Common Stock at stated value $ 700,581
Additional paid in capital 24,069
Retained Earnings 6,749,413
__________
$7,474,063
__________
TOTAL LIABILITIES $8,387,913
__________
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SWISS CHALET, INC.
CONDENSED STATEMENTS OF CHANGES IN CASH FLOWS
FOR THE NINE MONTHS ENDED JANUARY 31, 2000 AND 1999
(UNAUDITED) - NOTE A
NINE MONTHS ENDED
JANUARY 31
2000 1999
Cash Flow from Operations :
Net Income $ 1,672,514 $1,050,843
Adjustments (net) 113,255 117,067
__________ _________
Net Cash from operations $ 1,785,769 $1,177,910
Cash Flow from Investing activities 332,778 220,991
Cash Flow from Financing activities (1,244,752) (1,244,923)
__________ _________
Increase/(Decrease) in Cash Flow $ 873,795 $ 143,978
Cash and Cash equivalents - beginning 3,468,285 1,637,807
__________ _________
Cash and Cash equivalents - ending $4,342,080 $1,781,785
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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, 1999.
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 $30,000.00
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:
NINE MONTHS ENDED THREE MONTHS ENDED
JANUARY 31 JANUARY 31
INCREASE INCREASE
(DECREASE) % (DECREASE) %
_______________________________________
Net Sales & Other Income $ 847,333 21.9 $ 19,136 1.2
Cost of Sales 17,767 30.4 ( 110) (0.5)
Operation Expenses and 207,895 7.5 25,801 2.6
Other Deductions
Interest - N/A - N/A
Net Income 621,671 59.2 ( 6,555) (1.0)
-5-
SWISS CHALET, INC.
The comparative table of occupancies and average rates is shown below
for the nine month period.
Occupancy Average Rate
1999/00 1998/99 1999/00 1998/99
May 80% 62% $100.13 $ 88.09
June 87% 57% 97.29 91.13
July 89% 57% 95.71 87.42
Aug 91% 67% 98.24 85.38
Sept 73% 53% 97.87 85.61
Oct 75% 97% 96.91 88.10
Nov 83% 94% 99.03 96.01
Dec 76% 82% 108.59 105.33
Jan 83% 82% 125.70 115.61
Average 9 months 82% 72% $102.13 $ 94.62
The Company was expecting to give back, in the third quarter, some of
the increased profits earned in the preceding six months and were pleased
to find that this did not happen. Almost all of the hotels damaged in
Hurricane Georges in September 1998 are now back in the market but we are
still maintaining our market share during the busy winter season. At this
point we have no indications that this favorable situation will materially
change through the next quarter. Expenses and payroll have remained well
controlled and we are looking forward to a record breaking year.
As mentioned in earlier reports the Company has eliminated all long
term debt and interest expense due to the strong cash flows generated from
operations.
The Company's primary source of working capital is from funds provided
from operations. Working capital increased over the nine month period by
$2,524,195 and 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 :02/15/00 BY:__________________________
PETER D. SOMECH
Treasurer, Director and
Principal Financial Officer
-7-
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THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
10QSB REPORT FOR THE QUARTER AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE
TO SUCH 10QSB.
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<NAME> SWISS CHALET , INC.
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