-----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, L/03Rr7nKuoo3MrscZepmYMNx1863hPjooF/sBvv/wYALoF85W9rY2rWVE5VZ8W8 sQzdtwADbwW35n43bIweqw== /in/edgar/work/20000811/0000950134-00-006782/0000950134-00-006782.txt : 20000921 0000950134-00-006782.hdr.sgml : 20000921 ACCESSION NUMBER: 0000950134-00-006782 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20000630 FILED AS OF DATE: 20000811 FILER: COMPANY DATA: COMPANY CONFORMED NAME: FIRST EQUITY PROPERTIES INC CENTRAL INDEX KEY: 0000726516 STANDARD INDUSTRIAL CLASSIFICATION: [6798 ] IRS NUMBER: 956799846 STATE OF INCORPORATION: NV FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: SEC FILE NUMBER: 000-11777 FILM NUMBER: 693459 BUSINESS ADDRESS: STREET 1: 10670 NORTH CENTRAL EXPRESSWAY STREET 2: SUITE 501 CITY: DALLAS STATE: TX ZIP: 75231 BUSINESS PHONE: 2147505800 MAIL ADDRESS: STREET 1: 10670 NORTH CENTRAL EXPRESSWAY STREET 2: SUITE 501 CITY: DALLAS STATE: TX ZIP: 75231 FORMER COMPANY: FORMER CONFORMED NAME: WESPAC INVESTORS TRUST III DATE OF NAME CHANGE: 19970123 10-Q 1 e10-q.txt FORM 10-Q FOR QUARTER ENDED JUNE 30, 2000 1 FORM 10-Q SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 (Mark One) [X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2000 OR [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Transition period from to ------------------ ------------------- Commission file number 0-11777 -------------------------------------------------------- FIRST EQUITY PROPERTIES, INC. - -------------------------------------------------------------------------------- (Exact name of registrant as specified in the charter) Nevada 95-6799846 --------------------------------------------- ------------------- (State or other jurisdiction of incorporation (I.R.S. Employer or organization) Identification No.) 10670 N. Central Expressway, Suite 410, Dallas, Texas 75231 -------------------------------------------------------------- (Address of principal executive offices) 214-750-5800 -------------------------------------------------------------- (Registrant's telephone number, including area code) -------------------------------------------------------------- (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 Sections 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 --- --- APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY PROCEEDINGS DURING THE PRECEDING FIVE YEARS. 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 --- --- APPLICABLE ONLY TO CORPORATE ISSUERS: As of June 30, 2000, registrant had 10,570,944 shares of Common Stock issued and outstanding. 2 FIRST EQUITY PROPERTIES, INC. & SUBSIDIARIES FORM 10-Q June 30, 2000 INDEX
Part I Financial Information: Page No. Item 1. Financial Statements Consolidated Balance Sheets June 30, 2000 (Unaudited) and December 31, 1999..................................................3 Consolidated Statement of Earnings (Unaudited) Three Months and Six Months Ended June 30, 2000 and 1999.........................................4 Consolidated Statement of Cash Flows (Unaudited) Six Months Ended June 30, 2000 and 1999..........................................................5 Notes to Consolidated Financial Statements.........................................................7 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations................................................................8 Part II Other Information: Item 6. Exhibits and Reports on Form 8-K..........................................................8
2 3 FIRST EQUITY PROPERTIES, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS
June 30, 2000 December 31, (Unaudited) 1999 ------------- ------------ ASSETS Cash and cash equivalents $ 8,843 $ 550 Investments 55,512,710 55,512,710 Accounts receivable - affiliate 765,036 -- Notes receivable 3,438,796 3,457,617 ------------ ------------ $ 59,725,385 $ 58,970,877 ============ ============ LIABILITIES AND SHAREHOLDERS' EQUITY Notes payable $ 2,177,866 $ 2,234,040 Notes payable - affiliate 4,298,027 -- Accounts payable - trade 5,548,224 5,548,224 Accounts payable - affiliate -- 3,370,010 Income taxes payable 72,000 72,000 ------------ ------------ Total liabilities 12,096,117 11,224,274 Minority interest in limited partnership 10,073,991 10,074,447 Shareholders' Equity Common stock, $0.01 par, 40,000,000 shares authorized, 10,570,944 shares issued and outstanding 105,710 105,710 Capital in excess of par value 1,281,548 1,281,548 Retained earnings 36,168,019 36,284,898 ------------ ------------ Total shareholders' equity 37,555,277 37,672,156 ------------ ------------ $ 59,725,385 $ 58,970,877 ============ ============
3 4 FIRST EQUITY PROPERTIES, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF EARNINGS (Unaudited)
Three months ended June 30, Six months ended June 30, ----------------------------- ----------------------------- 2000 1999 2000 1999 ------------ ------------ ------------ ------------ Revenue Commission income $ -- $ 4,323,986 $ -- $ 6,542,823 Management fee income -- 1,936,478 -- 3,709,366 Consulting fee income -- 1,485,636 -- 2,552,698 Other 756 473,527 2,632 799,689 Interest 72,909 79,515 142,505 156,215 ------------ ------------ ------------ ------------ 73,665 8,299,142 145,137 13,760,791 Operating expenses Salaries and wages -- 2,760,204 -- 4,101,945 General and administrative -- 662,710 607 1,049,569 Minority interest in limited partnership -- 521,965 -- 929,358 Insurance and taxes -- 134,396 -- 294,956 Other operating expenses -- 51,900 7,500 204,974 Legal and professional fees 32,671 127,492 35,880 216,677 Depreciation and amortization -- 33,968 -- 67,937 Telephone and utilities -- 23,956 -- 39,578 Repairs and maintenance -- 4,245 -- 7,270 Advertising and promotion -- 2,356 -- 3,770 ------------ ------------ ------------ ------------ Total operating expenses 32,671 4,323,192 43,987 6,916,034 ------------ ------------ ------------ ------------ Income from operations 40,994 3,975,950 101,150 6,844,757 Other expenses Interest expense (165,190) (112,624) (218,029) (229,597) ------------ ------------ ------------ ------------ Earnings before income taxes (124,196) 3,863,326 (116,879) 6,615,160 Deferred tax benefit (expense) -- -- -- -- Current tax provision -- (1,310,000) -- (2,250,000) ------------ ------------ ------------ ------------ -- (1,310,000) -- (2,250,000) ------------ ------------ ------------ ------------ Net income $ (124,196) $ 2,553,326 $ (116,879) $ 4,365,160 ============ ============ ============ ============ Earnings per share $ (.01) $ .24 $ (.01) $ .41 ============ ============ ============ ============ Weighted average shares outstanding 10,570,944 10,570,944 10,570,944 10,570,944 ============ ============ ============ ============
4 5 FIRST EQUITY PROPERTIES, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS For the six months ended June 30, 2000 and 1999 (Unaudited)
2000 1999 ------------ ----------- CASH FLOWS FROM OPERATING ACTIVITIES Net earnings (loss) $ (116,879) $ 4,365,160 Adjustments to reconcile net income to net cash used for operating activities Depreciation and amortization -- 67,938 Minority interest in limited partnership (456) 929,361 (Increase) decrease in Accounts receivable - trade -- (244,863) Accounts receivable - affiliate (765,036) (7,965,515) Prepaid expenses and other -- (1,885) Notes receivable -- (123,137) Increase (decrease) in Accounts payable -- 147,009 Accrued expenses -- 162,588 Accounts payable - affiliate 125,823 181,578 Income taxes payable -- 2,250,000 ----------- ----------- Net cash used for operating activities (756,548) (231,766) CASH FLOWS FROM INVESTING ACTIVITIES Purchase of property and equipment -- (51,139) Collections from note receivable 18,821 -- ----------- ----------- Net cash provided by (used for) investing activities 18,821 (51,139) CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from notes payable - related parties 802,194 104,000 Payments on long term debt (56,174) (52,094) ----------- ----------- Net cash provided by financing activities 746,020 51,906 ----------- ----------- Net increase (decrease) in cash and cash equivalents 8,293 (230,999) Cash and cash equivalents at beginning of period 550 325,699 ----------- ----------- Cash and cash equivalents at end of period $ 8,843 $ 94,700 =========== ===========
5 6 FIRST EQUITY PROPERTIES, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS - Continued For the six months ended June 30, 2000 and 1999 (Unaudited)
2000 1999 ----------- ------------ Exchange of account payable from affiliate for a note payable from affiliate $ 3,495,833 $ -- Exchange of account receivable from affiliate for a investment in preferred stock of affiliate $ -- $ 14,647,710
6 7 FIRST EQUITY PROPERTIES, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS June 30, 2000 (Unaudited) NOTE A - BASIS OF PRESENTATION The accompanying consolidated financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. Operating results for the interim period presented are not necessarily indicative of the results that may be expected for the year ended December 31, 2000. For further information, refer to the Company's annual report on Form 10-K for the year ended December 31, 1999. 7 8 FIRST EQUITY PROPERTIES, INC. AND SUBSIDIARIES Item 2. Managements Discussion and Analysis of Financial Condition and Results of Operations Results of Operations Three months ended June 30, 2000 compared to three months ended June 30, 1999 Revenues decreased to $73,665 versus prior year of $8,299,142. The decrease was due to the loss of property management and brokerage contracts in the fourth quarter of 1999. Total operating expenses decreased to $32,671 in 2000 from $4,323,192 in 1999. The decrease in income tax expense was due to lower operating income. Results of Operations Six months ended June 30, 2000 compared to six months ended June 30, 1999 Revenues decreased to $145,137 versus prior year of $13,760,791. The decrease was due to lower commission income, lower consulting fee income and lower motel revenue. In the fourth quarter of 1999, all property management and brokerage contracts were cancelled. Total operating expenses decreased to $43,987 in 2000 from $6,916,034 in 1999. The decrease in income tax expense was due to lower operating income. Financial Condition and Liquidity At June 30, 2000, the Company had total assets of $59,725,385 compared to $58,970,877 at December 31, 1999. Cash and cash equivalents were $8,843. Total liabilities were $12,096,117 versus $11,224,274 at December 31, 1999. Part II Other Information Item 6. Exhibits and Reports on Form 8 - K (a) Exhibits Exhibit Number Description of Exhibit 27 Financial Data Schedules, filed herewith (b) Reports on Form 8-K - None 8 9 SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to he signed on its behalf by the undersigned thereunto duly authorized. FIRST EQUITY PROPERTIES, INC. August 11, 2000 /s/ F. Terry Shumate, Director, Vice President, Secretary and Treasurer 9 10 INDEX TO EXHIBIT
EXHIBIT NUMBER DESCRIPTION - ------- ----------- 27 Financial Data Schedule
EX-27 2 ex27.txt FINANCIAL DATA SCHEDULE
5 6-MOS DEC-31-1999 JAN-01-2000 JUN-30-2000 8,843 0 3,438,796 0 0 0 0 0 59,725,385 0 6,475,893 0 0 105,710 37,449,567 59,725,385 0 145,137 0 0 43,987 0 218,029 (116,879) 0 (116,879) 0 0 0 (116,879) (.01) (.01)
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