-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, NxCYoz6+pGl6N9IBt0Ro8Y1fmjwD9sM8Pmo0SWjXhpPTgX6dGmH3zmDCIT5BPw6U ZqsiDMU5M4SNKs9qxP+rgw== 0000950144-98-009767.txt : 19980817 0000950144-98-009767.hdr.sgml : 19980817 ACCESSION NUMBER: 0000950144-98-009767 CONFORMED SUBMISSION TYPE: 10QSB PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 19980630 FILED AS OF DATE: 19980814 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: SBI COMMUNICATIONS INC CENTRAL INDEX KEY: 0001013453 STANDARD INDUSTRIAL CLASSIFICATION: COMMUNICATION SERVICES, NEC [4899] IRS NUMBER: 581700840 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10QSB SEC ACT: SEC FILE NUMBER: 000-28416 FILM NUMBER: 98687415 BUSINESS ADDRESS: STREET 1: 458 HIGHWAY 278 BY PASS STREET 2: PO BOX 597 CITY: PIEDMONT STATE: AL ZIP: 36272 BUSINESS PHONE: 2054478797 10QSB 1 SBI COMMUNICATIONS 10QSB 6/30/98 1 SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C., 20549 FORM 10-QSB (MARK ONE) [X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE FISCAL QUARTER ENDED JUNE 30, 1998 COMMISSION FILE NUMBER 0-28416 OR [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 SBI COMMUNICATIONS, INC. (NAME OF SMALL BUSINESS ISSUER SPECIFIED IN ITS CHARTER) DELAWARE 58-1700840 (STATE OR OTHER JURISDICTION OF (I.R.S. EMPLOYER INCORPORATION OR ORGANIZATION) IDENTIFICATION NUMBER) 10619 WEST ATLANTIC BLVD - SUITE 104 - CORAL SPRINGS, FLORIDA 33071 ------------------------------------------------------------------- (ADDRESS OF PRINCIPAL EXECUTIVE OFFICES) (ZIP CODE) (954) 227-0844 -------------- ISSUER'S TELEPHONE NUMBER
SECURITIES REGISTERED PURSUANT TO 12(b) OF THE ACT: NONE SECURITIES TO BE REGISTERED PURSUANT TO SECTION 12(g) OF THE ACT: COMMON STOCK AND PREFERRED STOCK
COMMON STOCK $0.001 PAR VALUE - PREFERRED STOCK $5.00 PAR VALUE --------------------------------------------------------------- (TITLE OF CLASS) 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 [ ] As of August 11, 1998 the Registrant had 5,570,439 shares of its $0.001 par value Common Stock Outstanding. 2 TABLE OF CONTENTS SBI COMMUNICATIONS, INC. FORM 10-QSB INDEX Page PART I. FINANCIAL INFORMATION Item 1. Consolidated Financial Statements 3 Consolidated Balance Sheets as of December 31, 1997 and June 30, 1998 Consolidated Statements of Operations 4 for the six months ended June 30, 1997 and 1998 Consolidated Statement of Changes 4 in Shareholders' Equity for the six months ended June 30, 1998 Consolidated Statements of Cash Flows 5 for the six months ended June 30, 1997 and 1998 Notes to Consolidated Financial State- 6 ments Item 2. Management's Discussion and Analysis 7 of Financial Condition and Results of Operations Condition PART II. OTHER INFORMATION Item 1. Legal Proceedings 9 Item 2. Changes in Securities 10 Item 3. Defaults Upon Senior Securities 10 Item 4. Submission of Matters to a Vote 10 of Security Holders Item 5. Other Information 10 Item 6. Exhibits and Reports on Form 8-K 10 Signatures 10 Page 2 3 PART I. FINANCIAL INFORMATION FINANCIAL STATEMENTS SBI COMMUNICATIONS, INC. AND SUBSIDIARY CONSOLIDATED BALANCE SHEETS (UNAUDITED)
June 30, Dec. 31, 1998 1997 ---------- ---------- ASSETS ------ Current assets: Cash $ 485 $ 22,228 Accounts receivable, -- 250 Note receivable from affiliates 3,600 9,617 Inventories 79,444 86,065 ---------- ---------- 83,529 118,160 Property and equipment, net of accumulated depreciation 7,458,345 6,782,223 Other assets: Deferred loan costs 5,071 21,109 Deposits 63,065 63,065 ---------- ---------- $7,610.010 $6,984,557 ========== ========== LIABILITIES AND STOCKHOLDERS' EQUITY ------------------------------------ Current liabilities: Note payable to trust managed by a shareholder $ 150,000 $ 150,000 Mortgage note payable-current portion (Note 5) 1,050,000 239,701 Capitalized leases-current portion 17,284 17,491 Accrued wages due to principal shareholder (Note 2) 355,000 290,000 Advances due to principal shareholder 12,698 -- Account payable and accrued expenses 169,071 150,442 ---------- ---------- 1,754,053 847,634 Capitalized leases, long-term portion 61,459 62,216 Other notes payable 52,438 52,438 ---------- ---------- Total liabilities 1,867,950 962,288 ---------- ---------- Stockholders' equity: Preferred stock, par value $5.00; 10,000,000 shares authorized; 1,653,000 and 1,693,000 shares issued and outstanding at June 30, 1998 and December 31, 1997, respectively 8,265,000 8,465,000 Common stock, par value $.001; 40,000,000 shares authorized; 5,570,439 shares issued and outstanding at June 30, 1998 and 5,345,439 as of December 31, 1997 5,570 5,345 Paid in capital 3,667,118 3,467,343 Accumulated deficit (6,195,628) (5,915,419) ---------- ---------- 5,742,060 6,022,269 ---------- ---------- $7,610,010 $6,984,557 ========== ==========
See accompanying notes to consolidated financial statements. Page 3 4 SBI COMMUNICATIONS, INC. AND SUBSIDIARY STATEMENTS OF LOSS
THREE MONTHS ENDED JUNE 30, SIX MONTHS ENDED JUNE 30, ---------------------------- -------------------------- 1998 1997 1998 1997 ---------- ----------- --------- ---------- Revenues: Bingo hall rent -- $ 121,171 -- $ 196,171 Kitchen and gift shop revenues -- 43,704 -- 75,892 Other income 7 593 360 --------- --------- --------- --------- -- 164,882 593 272,423 --------- --------- --------- --------- Expenses: Cost of sales - kitchen and gift shop -- 67,550 -- 99,417 Administrative salaries and related expenses 35,000 46,299 73,133 79,864 Facility cost 12,260 15,088 22,971 29,415 Other general and administrative 31,212 200,169 65,098 282,151 Production costs -- 478 -- 2,483 Depreciation and amortization 8019 72,833 88,539 143,874 Interest and finance expenses 24,311 23,278 31,061 46,104 --------- --------- --------- --------- 110,802 425,695 ($280,802) 683,308 --------- --------- --------- --------- Net loss ($110,802) ($260,813) ($280,209) ($410,885) --------- ========= --------- ========= Net loss per share ($ 0.02) ($ 0.05) ($ 0.05) ($ 0.08) --------- ========= ========= =========
SBI COMMUNICATIONS, INC. AND SUBSIDIARY CONSOLIDATED STATEMENTS OF OPERATIONS FOR THE SIX MONTHS ENDED JUNE 30, (UNAUDITED) 1998 1997 ---- ---- Revenues: Bingo hall rent $ -- $ 196,171 Kitchen and gift shop revenues -- 75,892 Other income 593 360 --------- --------- 593 272,423 --------- --------- Expenses: Cost of sales - kitchen and gift shop -- 99,417 Administrative salaries and related expenses 73,133 79,864 Facility costs 22,971 29,415 Other general and administrative 65,098 282,151 Production costs -- 2,483 Depreciation and amortization 88,539 143,874 Interest and finance expenses 31,061 46,104 --------- --------- 280,802 683,308 --------- --------- Net loss ($280,209) ($410,885) ========= ========= Net loss per share ($ 0.05) ($ 0.08) ========= ========= See accompanying notes to consolidated financial statements. Page 4 5 SBI COMMUNICATIONS, INC. AND SUBSIDIARY CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE SIX MONTHS ENDED JUNE 30, (UNAUDITED)
1998 1997 ----------- ----------- Cash flows from operating activities: Net (loss) ($ 280,209) ($ 410,885) Adjustments to reconcile net loss to cash provided (used) by operating activities: Depreciation and amortization 72,500 143,874 Amortization of deferred loan costs 16,038 16,309 Charge offs of long-term receivables -- 8,178 Change in accounts receivable, trade 768 89,861 Change in inventories 6,621 -- Change in prepaid expenses (12,172) Change in accounts payable and accrued expenses 83,629 126,226 ----------- ----------- Cash (used) by operating activities (100,653) 38,,609 ----------- ----------- Cash flows from investing activities: Proceeds from repayment of notes receivable from affiliate 5,499 -- Purchase of real estate (748,622) (17,618) ----------- ----------- Cash (used) by investing activities (743,123) (17,618) ----------- ----------- Cash flows from financing activities: Loans from shareholders/affiliates 12,698 34,054 Proceeds From Mortgaged (see note 5) $ 1,050,000 -- Mortgage loan repayments (239,701) -- Capital lease repayments (964) (3,327) ----------- ----------- Cash flows provided by financing activities $ 822,033 30,727 ----------- ----------- Net increase (decrease) in cash (21,743) (25,500) Cash at beginning of period 22,228 42,327 ----------- ----------- Cash at end of period $ 485 $ 16,827 =========== =========== Supplemental information: Income taxes paid $ -- $ -- =========== =========== Interest paid $ 28,311 $ 32,102 =========== =========== Items not requiring use of cash: Preferred stock converted ($ 200,000) 0.00 Issuance of common stock $ 200,000 0.00 ----------- ----------- Paid in capital $ -- $ -- ----------- -----------
See accompanying notes to consolidated financial statements. Page 5 6 SBI COMMUNICATIONS, INC. AND SUBSIDIARY NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS MARCH 31, 1998 AND DECEMBER 31, 1997 NOTE 1 - SELECTED DISCLOSURES The accompanying unaudited consolidated financial statements, which are for interim periods, do not included all disclosures provided in the annual consolidated financial statements. These unaudited consolidated financial statements should be read in conjunction with the consolidated financial statements and the footnotes thereto contained in the Form 10-KSB for the year ended December 31, 1997 of SBI Communications, Inc. (the "Company"), as filed with the Securities and Exchange Commission. The December 31, 1997 balance sheet was derived from the unaudited consolidated financial statements, but does not include all disclosures required by generally accepted accounting principles. In the opinion of the Company, the accompanying unaudited consolidated financial statements contain all adjustments (which are of a normal recurring nature) necessary for a fair presentation of the financial statements. The results of operations and cash flow for the six months ended June 30, 1998 and 1997 are not necessarily indicative of the results to be expected for the full year. The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reporting amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. NOTE 2 - RELATED PARTY TRANSACTIONS The Company accrued salaries payable to the Company's principal shareholder totaling $65,000 for the two quarters ended June 30, 1998 and 1997, respectively. All amounts owed to the shareholder are payable on demand. NOTE 3 - NET LOSS PER SHARE The Company's net loss per share was calculated using 5,570,439 and 5,345,439 weighted average shares outstanding for each of the quarters ended June 30, 1998 and December 31, 1997, respectively. Although convertible preferred stock is a common stock equivalent, with a conversion rate of approximately 10 shares of common stock (based upon an approximate market price for common stock of $0.50) for each share of preferred stock, preferred stock conversion has not been included in the calculation of earnings per share in that to do so would be antidilutive. NOTE 4 - PREFERRED STOCK ACTIVITY In July, 1996, 5,000 shares of preferred stock with a par value of $25,000 were to be issued to cover $20,000 in closing costs relating to the mortgage note receivable. The Company inadvertently issued 25,000 shares rather than 5,000 shares, and both parties agreed that the related certificate would be returned and reissued. In that the certificate had not been returned as of December 31, 1996, the full 25,000 shares were treated as outstanding at that time, with a related reduction in paid in capital. In the first quarter of 1997, the certificate was returned, and a new certificate for 5,000 shares was issued. The stockholders' equity section of the balance sheet as of March 31, 1997, has been adjusted to reflect the reduced number of preferred shares outstanding, with a corresponding adjustment to paid in capital. NOTE 5 - MORTGAGE The company borrow $1,050,000.00 to paid State of Alabama, on behalf of Cranberry-Magnetite, the previous owner tax liability of $748,422.00 and to pay the second mortgage to National Mortgage of $263,275. The company is also securing a loan to refinancing the property, renovate and expand the company business, Page 6 7 ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS SBI Communications, Inc. (the "Company"), was originally organized in the State of Utah on September 23, 1983, under the corporate name of Alpine Survival Products, Inc. Its name was subsequently changed to Justin Land and Development, Inc. during October, 1984, and then to Supermin, Inc. on November 20, 1985. On September 29, 1986, Satellite Bingo, Inc. was the surviving corporate entity in a statutory merger with Supermin, Inc., a Utah corporation. In connection with the above merger, the former shareholders of Satellite Bingo, Inc. acquired control of the merged entity and changed the corporate name to Satellite Bingo, Inc. Through shareholder approval dated March 10, 1988, the name was changed to its current name of SBI Communications, Inc. On January 1, 1993, the Company executed a plan of merger that effectively changed the Company's state of domicile from Utah to Delaware. Although the Company is currently a Delaware corporation, on January 31, 1997, the stockholders and Board of Directors approved a plan to change the Company's corporate domicile to the State of Nevada. Management anticipates executing the plan during 1998. The Company plans to lease to charities bingo halls operations and to provide interactive satellite delivered bingo games, game shows and other similar telecommunication gaming products or services to television viewers throughout the United States. The Company has also developed a system that can be integrated into all standard communications channels including the World Wide Web for interactive play. Our Web site address which will be available 24 hours a day is http://www.sbicommunications.com http://www.abingo.com http://www.globalot.com. Currently, the Company's only operations are the leasing of the property located in Piedmont, Alabama. Under local ordinances, the property must be leased to a charity in order to conduct and operate bingo games. At this time the company has two commercial leases for the property. FRONTIER PALACE Because the Piedmont Jaycees did not perform as represented, and their management did not develop business, gross revenues were 50% of their projections, and agreement in their premises lease: Jaycees salaries exceeded budgets; operations schedule was not full time. Therefore, their lease was allowed to not be renewed at the end of 1997. At the same time, local political influences developed negative local law changes as a reaction to the Piedmont Jaycees operation. Local ordinances are being adopted to limit all charity bingo operations and the amount of employees and establish a requirement of near gross proceeds being donated for charitable purposes regardless of reasonable and necessary operation expenses with no revenues to the employees of the charity. In reaction to the above political/legal trends, management has negotiated two business leases of the premises. Because management is working with technical computer advisors and systems designers in the Boca Raton/Fort Lauderdale, Florida area, management believes that their observations of the local charity Bingo market appears to be more hospitable in Southeast Florida, rather than northeast Alabama. Two business enterprises have agreed to lease the premises at a gross rent of $65,000.00 per month, subject only to the company paying real estate taxes (approximately $35,000.00 per year, insurance $25,000.00 per year and the usual exterior, structural maintenance, estimated at no more that $20,000.00 per year). Gross rental income then is at $780,000.00 per year with estimated expenses and contingencies at $80,000.00 per year, indication gross income at $700,000.00. The two tenants are credible business operations with a history and financial capability, as follows: (1) Regency Communications, Inc. for operation of a telecommunication marketing center and advertising/video studio as part of their marketing efforts. Rent at $40,000.00 per month or $480,000 per year, plus agreement to jointly manage the property and develop complimentary products. (2) Consolidated Trust, S.A. is a company with an operations history in Birmingham, Alabama. Their management seeks a large location for storage and offices. Their agreed rental dose not includes use of the kitchen and snack bar facilities, and is at a gross rent of $25,000.00 per month or $300,000.00 per year. Page 7 8 INTERNET WEB SITE The company established a secure web site allowing individuals to join "A Bingo Shopping Club for a fee of $19.95 per month which is a shopping club for a variety of products, services, Bingo game related events and items, travel and consumer goods; the opportunity is primarily a shopping club. No charge is made for Bingo cards, and for allowing members to play an on-going Globalot Bingo game, with winnings credited to the member's account or delivered to the member at their option. Payment for membership will be made by credit card, bank check, debit/ATM cards and by lec billing or "900" telephone number. The web site is hosted by a Coral Gables educational organizations. Fulfillment of the operation is by sites and organizations in Fort Lauderdale, Florida. The company will at some point host its own web site with server and tee access to the Internet. The company will generate additional revenues by offering advertising and its web services to others. SATELLITE BINGO. The company has developed a pay-per-view television game show to be operate by SBI, at a studio within the Piedmont, Alabama property, or within a production studio, as is most efficient. The charge for a weekly two hour broadcast is $9.95 per subscriber per broadcast; SBI receives $5.00 with the broadcaster/network company paid the balance. The Company believes that the $5 billion plus U. S. bingo industry is fragmented and inefficient, yet potentially profitable. The Company's strategy, therefore, is to consolidate a portion of the industry to build a national chain of bingo centers in lucrative markets. The Company believes that its industry experience, economies of scale and financial resources will provide a competitive advantage over competing bingo operations, which should enable the Company to effectively execute its long-term growth plan. The Company currently has only one bingo center located in Piedmont, Alabama. The Company intends to continue its expansion through acquisitions and developments in other selected markets throughout the United States. RESULTS OF OPERATION SIX MONTHS ENDED JUNE 30, 1998 COMPARED TO SIX MONTHS ENDED JUNE 30, 1997. The Company generated revenues of $ 593. during its second fiscal quarter ended June 30, 1998, as compared to $272,423 in the comparable period of the prior fiscal year, which represents a decrease. The Company expects quarterly revenues to continue to increase upon the successful operation of the Company's Web site, new leases of the company property in Piedmont and broadcasting of it's interactive programming. Direct operating costs of the Company's bingo center totaled $110,802 during the second quarter of 1998 versus $683,308 in the comparable 1997 quarter, which represents a large decrease. Approximately 25% of the current period's direct operating costs were comprised of depreciation and amortization, which are relatively fixed expenses. The balance is primarily comprised of legal, wages and management fee costs. General & Administrative (G&A) expenses totaled $35,000 during the second quarter of 1998 as compared to $282,151 in the year ago period, an decrease of 87%. This expense decrease of $247,151 was mainly due to no operations and renovation during the first and second quarter of 1998. The Company did not record any tax expense during the current quarter or comparable year-ago period due to tax loss carryforwards. The Company's tax loss carryforward balance at the end of fiscal 1997 was in excess of $5 million and, as such, the Company does not expect to incur any federal income tax liability until this carryforward is depleted by operational profits. Net loss for the second fiscal quarter of 1998 was $110,802, which equated to loss per share of ($0.02) Net loss for the comparable quarter of 1997 was $260,813 which equated to loss per share of ($0.05). Virtually all of the decreased loss of 58% was due to no operations in second quarter of 1998. Management believes that the Company's direct operating costs and G&A expenses are relatively low for this quarter. As such, management will continue to seek expansion opportunities that offer incremental operating revenues which, in turn, favorably leverage the Company's net income performance. Page 8 9 All of the Company's revenue in the past has come from operations of the bingo hall or interest income on cash therefrom. The following table summarizes revenue categories in the Company's statement of income (rounded to the nearest whole dollar). Amount of Total Revenue Six Months Ended June 30, 1998 1997 ------ ---- Revenues: Bingo hall rent/administrative fees .00 196,171 Kitchen and gift shop revenues .00 75,892 Other Income 593 353 ------- -------- Total Revenue .593 $272,416 ======== ======== In general, the Company experienced insignificant revenues in 1994 as it attempted to expand and develop its operations. At the end of 1994 the Registrant acquired a bingo hall, which it now leases to charities who sponsor bingo games. The Company also provides management services to assist the charities in the operations of the bingo games, for which the Company charges a fee. In late 1996, the Company was also requested to take over operations of the kitchen and gift shop portions of the facility. Except for the operation of the bingo hall, there are no other significant revenue sources of the Company at this time. In 1995, the Company charged a flat $75,000 per month in rent, plus management fees as deemed appropriate. In February, 1996, the lease with the current charity was amended to reflect a minimum payment of $25,000 per month, with adjustments up to $75,000 per month if the charity generates sufficient annual cash flow to afford to pay the increased rent. Although the charity generated cash flow that would allow greater rent, management allow such excess to be applied toward unpaid rents and did not increase the rent charge for 1997. Management collected no rent payments for six months ended June 30, 1998. LIQUIDITY AND CAPITAL RESOURCES At June 30, 1998, the Company had cash and cash equivalents of $485.00, a decrease of $21,743 from the end of fiscal 1997. The decrease was mainly due to renovation of the property and not being able to operate the facility. The Company has also invested over $60,000 in its restaurant and doesn't foresee substantial further investments required there. The Company does expect to make further investments in its Piedmont, Alabama facility in order to meet strong customer demands and renovate as required by the two new leases that are now in place. The Company intends to finance future acquisitions primarily through the use of stock and, to a lesser extent, cash and notes. The Company paid a tax liability owed to the State of Alabama that the previous owners did not pay. This debt is due the Company and the company plans to recover these funds by all legal means available to the company. Current liabilities totaled $1,867,950 at the end of the quarter, but less than 10% of this total represented trade payables. Approximately 60% of total liabilities are comprised of a note payable to the Haulmark Company for a loan the company received in order to pay the previous owners tax liability. Approximately 20% of long-term note payable on which the Company is currently making payments. The Company has no other long-term debt. The Company had total assets of over $7.6 million and total liabilities of $1.9 million at the end of the second quarter, with shareholder equity of $6.2 million. The Company believes that its current capital resources, together with expected positive operational cash flows and note collections, will support operational requirements for the next year. PART II--OTHER INFORMATION ITEM 1. LEGAL PROCEEDINGS The Company is not involved in any legal proceedings. Page 9 10 ITEM 2. CHANGES IN SECURITIES In July, 1996, 5,000 shares of preferred stock with a par value of $25,000 were to be issued to cover $20,000 in closing costs relating to the mortgage note receivable. The Company inadvertently issued 25,000 shares rather than 5,000 shares, and both parties agreed that the related certificate would be returned and reissued. In the first quarter of 1997, the certificate was returned, and a new certificate for 5,000 shares was issued. In January 1998 the Company issued 25,000 shares of its common stock to cover the cost of software programing relating to PandaAmerica. The Company also converted 40,000 shares of preferred shares to 200,000 shares of the company common stock. ITEM 3. DEFAULTS UPON SENIOR SECURITIES Not applicable. ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS Not applicable. ITEM 5. OTHER INFORMATION NO CHANGE IN MANAGEMENT. EXHIBITS AND REPORTS ON FORM 8-K ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K (A) EXHIBITS: EXHIBITS DESCRIPTION 11 Statement re: computation of per share earnings 27 Financial data schedule (B) REPORTS ON FORM 8-K: Attached SIGNATURES In accordance with the requirements of the Securities Exchange Act of 1934, the registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. SBI Communications, Inc. Date: August 12, 1998 By: /s/Ronald Foster ------------------------------------- Ronald Foster Chairman of the Board and Chief Executive Officer (principal executive officer) Page 10 EX-11 2 COMPUTATION OF EARNINGS PER SHARE 1 EXHIBIT 11 SBI COMMUNICATIONS, INC. COMPUTATION OF EARNINGS PER COMMON SHARE FOR THE SIX MONTHS ENDED JUNE 30 , 1997 AND 1998 Six Months Six Months Ended Ended June 30, 1997 June 30, 1998 ------------- -------------- Shares outstanding: 5,345,439 5,570,439 Weighted average shares outstanding 5,345,439 5,570,439 Net loss $ (366,233) $ (280,209) Preferred Dividend -- -- ------------ ------------ Total (366,233) (280,209) Net loss per share $ (0.07) $ (0.05) Page 11 EX-27 3 FINANCIAL DATA SCHEDULE
5 THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE CONSOLIDATED FINANCIAL STATEMENTS OF SBI COMMUNICATIONS, INC. FOR THE QUARTERLY PERIOD ENDED JUNE 30, 1998 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS. 6-MOS DEC-31-1998 JAN-31-1998 JUN-30-1998 485 0 0 0 79,444 83,529 7,458,345 88,538 7,610,010 817,950 1,050,000 0 8,265,000 5,570 5,742,060 7,610,010 0 593 0 182,168 0 0 31,061 (280,209) 0 (280,209) 0 0 0 (280,630) (0.05) (0.05)
-----END PRIVACY-ENHANCED MESSAGE-----