0000724910-95-000003.txt : 19950824 0000724910-95-000003.hdr.sgml : 19950824 ACCESSION NUMBER: 0000724910-95-000003 CONFORMED SUBMISSION TYPE: 10QSB PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19950630 FILED AS OF DATE: 19950814 SROS: NASD FILER: COMPANY DATA: COMPANY CONFORMED NAME: PREMIS CORP CENTRAL INDEX KEY: 0000724910 STANDARD INDUSTRIAL CLASSIFICATION: 7372 IRS NUMBER: 411424202 STATE OF INCORPORATION: MN FISCAL YEAR END: 0331 FILING VALUES: FORM TYPE: 10QSB SEC ACT: 1934 Act SEC FILE NUMBER: 000-12196 FILM NUMBER: 95563491 BUSINESS ADDRESS: STREET 1: 15301 HIGHWAY 55 WEST CITY: PLYMOUTH STATE: MN ZIP: 55447 BUSINESS PHONE: 6125501999 MAIL ADDRESS: STREET 1: 15301 HIGHWAY 55 WEST CITY: PLYMOUTH STATE: MN ZIP: 55447 10QSB 1 SECURITIES AND EXCHANGE COMMISSION Washington, D. C. 20549 Form 10-QSB (Mark One) [ X ] QUARTERLY REPORT UNDER SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the first quarter ended June 30, 1995 [ ] TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE ACT For the transition period from to Commission File Number 2-85498-C PREMIS CORPORATION (Exact name of registrant as specified in its charter) Minnesota 411424202 (State of Incorporation) (I.R.S. Employer Identification Number) 15301 Highway 55 West Plymouth, MN. 55447 (Address of Principal Executive Offices) (612) 550-1999 (Issuer's Telephone Number) 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, and (2) has been subject to such filing requirements for the past 90 days. Yes X No Number of shares outstanding at June 30, 1995: Common Stock, Par Value: $.01 Shares: $2,590,694 Transitional small business disclosure format (check one). Yes X No PART I - FINANCIAL INFORMATION PREMIS CORPORATION BALANCE SHEET June 30, March 31, ASSETS 1995 1995 Current assets: Cash $516,173 $426,959 Trade accounts receivable, net of allowance for doubtful accounts of $35,000 and $35,000, respectiveliy 659,594 541,240 Inventory 115,851 165,555 Prepaid expenses 20,649 1,200 Deferred Taxes 0 50,000 __________ __________ Total current assets 1,312,267 1,184,954 Property and equipment: Furniture and equipment 200,072 189,611 Leased equipment 37,797 19,753 Less accumulated depreciation & amortization (165,166) (160,613) __________ __________ 172,703 48,751 Software distribution rights, net of accumulated amortization of 104,604 and $88,159, respectively 305,721 325,916 __________ __________ Total assets $1,690,691 $1,559,621 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Trade accounts payable 93,817 177,339 Accrued rent 0 2,249 Deferred income tax liability 14,000 0 Accrued income tax 31,992 0 Other accrued liabilities 105,232 139,507 Unearned income 156,653 170,529 Capital lease obligations 2,342 3,272 Customer deposits 151,980 58,010 Notes payable 82,593 100,621 __________ __________ Total current liabilities 638,609 651,527 Long-term liabilities: Notes payable 226,084 226,084 __________ __________ Total long-term liabilities 226,084 226,084 Stockholders' equity: Common stock, 4,000,000 shares authorized, 2,590,694 shares issued and outstanding, $.01 par value 25,906 25,906 Additional paid-in capital 728,556 728,556 Retained earnings 71,536 (72,452) __________ __________ Total stockholders' equity 825,998 682,010 __________ __________ Total liabilities and stockholders' equity $1,690,691 $1,559,621 See accompanying notes to the financial statements. PART I - FINANCIAL INFORMATION CONDENSED STATEMENTS OF OPERATIONS For the Three Months Ended June 30 1995 1994 (unaudited) (unaudited) Revenue: Systems Sales $982,449 $585,966 Maintenance Fees and Other Income 207,305 101,494 __________ __________ Total Revenue 1,189,754 687,460 Cost of Sales: Systems 502,465 260,481 Royalty Expense 54,441 28,692 Other 34,406 28,963 __________ __________ Total Cost of Sales 591,312 318,136 Gross Profit 598,442 369,324 Selling, General Administrative Expenses 358,461 271,104 __________ __________ Net Income Before Taxes 239,981 98,220 Income Tax Expense 95,992 0 __________ __________ Net Income $143,989 $98,220 Net Income per Share $.06 $.04 Weighted Ave. Fully Diluted Shares Outstanding 2,912,661 2,590,694 PART I - FINANCIAL INFORMATION PREMIS CORPORATION Statement of Change in Financial Position For the Three Months Ended June 30 1995 1994 (unaudited) (unaudited) Cash Flows From Operating Activities: Net Income (Loss) $143,989 $98,220 __________ __________ Adjustments to reconcile net income to net cash provided (used) by operation activities: Depreciation and amortization 4,552 3,495 Changes in assets and liabilities: Current Assets (17,904) (318,209) Current Liabilities (12,918) 150,329 __________ __________ Net Cash Provided (Used) by Operating Activities 117,720 66,165 Cash Flows From Investing Activities: Purchase of property and equipment 28,505 5,884 __________ __________ Net Cash (Used) by Investing Activities 28,505 5,884 Cash Flows From Financing Activities: Acquisition of Debt 0 50,000 Retirement of Capital Lease Obligations 0 (778) __________ __________ Net Cash Provided by Financing Activities 49,222 Net Increase (Decrease) in Cash 89,214 11,059 Cash at Beginning of Year 426,959 119,157 Cash at End of Period 516,173 108,098 PREMIS CORPORATION NOTES TO CONDENSED FINANCIAL STATEMENTS June 30, 1995 Note 1: Basis of Presentation The accompanying condensed balance sheet as of June 30, 1995, and the condensed income statements and statements of changes in financial position for the three month period ended June 30, 1995, are presented without audit. In the opinion of the management, all normally recurring adjustments necessary for a fair presentation of the financial statements in conformity with generally accepted accounting principles have been made. Certain footnote disclosures and other information normally included in financial statements prepared in accordance with generally accepted accounting principles have been omitted. These condensed financial statements should be read in conjunction with the financial statements and notes thereto included in the Company's audited financial statements as of March 31, 1995 as included in its 10K filing on June 28, 1995 The balance sheet as of March 31, 1995 has been taken from the audited financial statements as of that date. Note 2: Change In Accounting Principal Effective April 1, 1993, the Company adopted the provisions of Statement of Financial Accounting Standards No. 109 (FAS 109), "Accounting For Income Taxes". Under FAS 109, the Company recognized the future tax benefit of operating loss carryforwards totaling $50,000 at April 1, 1993, net of valuation allowances. This recognition is reported as the cumulative effect of a change in accounting for income taxes and a deferred asset in the accompanying financial statements. In the period ended June 30, 1995 the tax benefits of operating loss carry forwards were entirely utililized which resulted in a $50,000 reduction in net income for the period. Prior period financial statements of the Company have not been restated to reflect the adoption of FAS 109. Note 3: Income Taxes Income taxes were provided for the period ended June 30, 1995, while no income taxes were provided for in the period ended June 30, 1994. At June 30, 1995, the Company had exhausted its net operation losses which can be utilized to offset taxable income. The deferred income taxes at April 1, 1994 and June 30, 1995 are as follows: April 1, 1995 June 30, 1995 Taxes Associated With: Net Operating Loss Carryforwards $50,000 $ 0 PREMIS CORPORATION Management's Discussion and Analysis of Financial Condition and Results of Operation The fiscal year ending March 31, 1995, was a year of continuing profitability for the Company with a net profit of $474,687 compared to a net profit of $148,931 for the prior year. The Company has followed that year with continued improvement in the first quarter of fiscal 1996. The new products introduced in fiscal 1992, 1993 and 1994 have shown substantial growth, while the Iris line of products which we are representing on a royalty basis has made a significant contribution. Three Months Ending June 30, 1995, Compared to Three Months Ending June 30, 1994 For the three months ending June 30, 1995, sales were 102% greater than the comparable period for fiscal 1995, at $1,189,754 verses $687,460. The three month period provided a net profit of $143,989 versus $98,220 in fiscal 1995. Results reflect a steady increase in sales to larger clients in our market place. Gross profit was up 62% to $598,442 from $369,324 in fiscal 1995, due to higher sales and reflects a higher percentage of hardware included in system sales. General and administrative expense has risen by 32% from the comparable period in fiscal 1995, reflecting staffing and marketing cost increases required to obtain and support a higher level of sales. Maintenance fees and other income which were $106,864 higher in fiscal 1996 versus 1995, reflect the increased growth in customer base. Directors and Executive Officers of the Registrant The executive officers are elected annually by the Board of Directors. There are no arrangements or understandings among the officers and any other person pursuant to which he/she was selected as an officer. Liquidity and Capital Resources The Company feels that current resources will provide adequate liquidity and capital to execute its business plan. Income Tax During the first quarter ending June 30, 1995 the tax loss carry forward for the company was exhausted. See notes 2 and 3 to the financial statement. Part II - OTHER INFORMATION Item 1. Legal Proceedings. In May 1995, the Company was served with a law suit by a former employee. The case is venued in the District Court of Hennepin County, Minnesota. The action asserts claims for wrongful termination, breach of contract and related claims. The Company believes the claims are without merit, has denied the validity of these claims and will vigorously defend its position. Item 2. Changes in Securities. none. Item 3. Defaults Upon Senior Securities. Not Applicable. Item 4. Submission of Matters to a Vote of Security Holders. On August 9, 1995, the Registrant's annual meeting of shareholders was held in Minnetonka, Minnesota. The nominees for Directors were elected and Price Waterhouse Company was appointed as Certified Public Accountants for the fiscal year ending March 31, 1996. No other matters were brought before the shareholders for a vote. Item 5. Other Information. Not Applicable. Item 6. Exhibits and Reports on Form 8-K (a) Exhibits: None (b) The Company did not file any reports on Form 8-K during the three-month period ended June 30, 1995. Pursuant to the requirements of the Securities and Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. PREMIS CORPORATION August 15, 1995 By: /s/ F. T. Biermeier Date F. T. Biermeier Chairman, Chief Executive Officer and President Pursuant to the requirements of the Securities Exchange Act of 1934, this report signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated. DIRECTORS /s/ Mary Ann Calhoun August 15, 1995 Mary Ann Calhoun Date Vice President, Secretary