-----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, O5MNif63nq0VMI3qY7/sOVbwuR3Va63p8ihCWkOkGsWarQHBlqneUHpvjhpGRpiQ kCHqnOKhMBDiH3IXJGr/eA== 0000914317-97-000052.txt : 20021106 0000914317-97-000052.hdr.sgml : 20021106 19970212145800 ACCESSION NUMBER: 0000914317-97-000052 CONFORMED SUBMISSION TYPE: 10QSB PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19961231 FILED AS OF DATE: 19970212 DATE AS OF CHANGE: 20020620 FILER: COMPANY DATA: COMPANY CONFORMED NAME: FIRST CONNECTICUT CAPITAL CORP/NEW/ CENTRAL INDEX KEY: 0000730669 STANDARD INDUSTRIAL CLASSIFICATION: MISCELLANEOUS BUSINESS CREDIT INSTITUTION [6159] STATE OF INCORPORATION: CT FISCAL YEAR END: 0331 FILING VALUES: FORM TYPE: 10QSB SEC ACT: 1934 Act SEC FILE NUMBER: 000-31080 FILM NUMBER: 97526808 BUSINESS ADDRESS: STREET 1: 1000 LAFAYETTE BLVD STE 805 CITY: BRIDGEPORT STATE: CT ZIP: 06604 BUSINESS PHONE: 2033664726 MAIL ADDRESS: STREET 1: 1000 LAFAYETTE BLVD STREET 2: SUITE 805 CITY: BRIDGEPORT STATE: CT ZIP: 06604 10QSB 1 U. S. Securities and Exchange Commission Washington, DC 20549 FORM 10-QSB [ X ] QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended December 31, 1996 Commission file number 811-0969 The First Connecticut Capital Corporation - -------------------------------------------------------------------------------- (Exact name of small business issuer as specified in its charter) Connecticut 06-0759497 - -------------------------------------------------------------------------------- (State or other jurisdiction (IRS Employer of incorporation or organization) Identification No.) 1000 Bridgeport Avenue, Shelton, Connecticut 06484 - -------------------------------------------------------------------------------- (Address of principal executive offices) (203) 944-5400 - -------------------------------------------------------------------------------- (Issuer's telephone number) - -------------------------------------------------------------------------------- (Former name, former address and former fiscal year, if changed since last report) Check whether the issuer (1) filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the past 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 CORPORATE ISSUERS State the number of shares outstanding of each of the issuer's classes of common equity, as of the latest practicable date: 1,173,382 Transitional Small Business Format: Yes [ ] No [ X ] Item 1. Financial Statements THE FIRST CONNECTICUT CAPITAL CORPORATION
BALANCE SHEET, DECEMBER 31, 1996 (Dollars in thousands,except per share data) (Unaudited) ASSETS Investments: Loans - net ................................................... $ 1,157 Foreclosed assets ............................................. 0 ------- Investments-net ......................................... 1,157 Cash and cash equivalents ..................................... 150 Restricted cash ............................................... 45 Accrued interest .............................................. 47 Servicing rights .............................................. 264 Fixed assets .................................................. 61 Other assets .................................................. 286 ------- TOTAL ASSETS .................................................. $ 2,010 ======= LIABILITIES AND STOCKHOLDERS' EQUITY LIABILITIES: Warehouse line of credit ...................................... $ 371 Accounts payable and other accrued expenses ................... 480 Deferred income taxes ......................................... 76 ------- TOTAL LIABILITIES ............................................. 927 ------- Commitments and contingencies (Note B) STOCKHOLDERS' EQUITY: Common stock, no par value, stated value $.50 per share, authorized 3,000,000 shares, issued and outstanding 1,173,382 shares .................... 587 Paid-in surplus ............................................... 9,253 Accumulated deficit ........................................... (8,757) ------- TOTAL STOCKHOLDERS' EQUITY .................................... 1,083 ------- TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY .................... $ 2,010 ======= See notes to financial statements.
THE FIRST CONNECTICUT CAPITAL CORPORATION STATEMENTS OF OPERATIONS FOR THE THREE AND NINE MONTHS ENDED DECEMBER 31, 1996 AND 1995 (Dollars in thousands, except per share data) (Unaudited) Three Months Nine Months Three Months Nine Months Ended Ended Ended Ended Dec. 31, 1996 Dec. 31, 1996 Dec. 31, 1995 Dec. 31, 1995 ------------- ------------- ------------- ------------- INTEREST INCOME: Interest and fees on loans $27 $76 $14 $66 --------- --------- --------- --------- OTHER OPERATING INCOME: Servicing fees 42 123 47 164 Loan Orgination fees 52 165 16 79 Other fees 6 10 4 31 --------- --------- --------- --------- Total Other Operating Income 100 298 67 274 --------- --------- --------- --------- TOTAL INCOME 127 374 81 340 --------- --------- --------- --------- OTHER OPERATING EXPENSES: Amortization of servicing rights 36 73 72 173 Collection expenses 3 2 0 14 Officers' salaries 42 130 45 133 Other salaries 30 100 35 139 Directors' fees 5 14 4 13 Professional services 5 4 9 43 Miscellaneous taxes 5 23 8 29 Employee and general insurance 17 51 13 51 Rent 3 25 10 31 Communications 4 12 2 12 Advertising and promotions 1 4 3 14 Stock record and other financial expenses 1 4 2 5 Employees' pension plan 2 4 5 14 Depreciation expense 6 17 14 21 Other operating expenses 35 94 33 113 --------- --------- --------- --------- Total Other Operating Expenses 195 557 255 805 LOSS BEFORE LOAN LOSSES (68) (183) (174) (465) --------- --------- --------- --------- STATEMENTS OF OPERATIONS FOR THE THREE AND NINE MONTHS ENDED DECEMBER 31, 1996 AND 1995 (Dollars in thousands, except per share data) (Unaudited) (continued) Three Months Nine Months Three Months Nine Months Ended Ended Ended Ended Dec. 31, 1996 Dec. 31, 1996 Dec. 31, 1995 Dec. 31, 1995 ------------- ------------- ------------- ------------- Loan losses 0 5 0 0 --------- --------- --------- --------- NET LOSS ($68) ($188) ($174) ($465) ========= ========= ========= ========= LOSS PER COMMON SHARE ($0.06) ($0.16) ($0.15) ($0.40) Weighted average number of common shares outstanding 1,173,382 1,173,382 1,173,382 1,173,382 ========= ========= ========= ========= See notes to financial statements.
THE FIRST CONNECTICUT CAPITAL CORPORATION STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY FOR THE NINE MONTHS ENDED DECEMBER 31, 1996 AND 1995 (Dollars in thousands) (Unaudited) Common Stock Total Number Of Paid-In Accumulated Stockholders' Shares Amount Surplus Deficit Equity ------ ------ ------- ------- ------ BALANCE, MARCH 31,1995 1,173,382 $587 $9,253 ($7,965) $1,875 Net Loss (465) (465) --------- ----- ------ ------- ------ BALANCE, DECEMBER 31,1995 1,173,382 $587 $9,253 ($8,430) $1,410 ========= ==== ====== ======= ====== BALANCE, MARCH 31,1996 1,173,382 $587 $9,253 ($8,569) $1,271 Net Loss (188) (188) --------- ---- ------ ------- ------ BALANCE, DECEMBER 31,1996 1,173,382 $587 $9,253 ($8,757) $1,083 ========= ==== ====== ======= ====== See notes to financial statements.
THE FIRST CONNECTICUT CAPITAL CORPORATION
STATEMENTS OF CASH FLOWS FOR THE NINE MONTHS ENDED DECEMBER 31, 1996 AND 1995 (Dollars in thousands) (Unaudited) Nine Months Nine Months Ended Ended Dec 31, 1996 Dec 31, 1995 ------------ ------------ OPERATING ACTIVITIES Net loss .................................................... ($ 188) ($ 465) Adjustments to reconcile net loss to net cash used in operating activities: Investment losses ....................................... 5 -- Depreciation ............................................ 17 21 Amortization of servicing rights ........................ 73 173 (Increase) decrease in accrued interest receivable ...... (12) 1 (Increase) decrease in other assets ..................... (25) 58 Decrease in accounts payable / other accrued expenses ... (79) (176) ------- ------- Net cash used in operating activities .............. (209) (388) ------- ------- INVESTING ACTIVITIES Principal collected on investments .......................... 12 18 Investments originated ...................................... (1,857) (1,064) Proceeds from sale of loans ................................. 1,629 1,115 ------- ------- Net cash (used in) provided by investing activities (216) 69 ------- ------- FINANCING ACTIVITIES Increase in warehouse line of credit ........................ 145 0 ------- ------- DECREASE IN CASH AND CASH EQUIVALENTS .......................... (280) (319) CASH AND CASH EQUIVALENTS, BEGINNING ........................... 430 415 ------- ------- CASH AND CASH EQUIVALENTS, ENDING .............................. $ 150 $ 96 ======= =======
THE FIRST CONNECTICUT CAPITAL CORPORATION NOTES TO CONDENSED FINANCIAL STATEMENTS NOTE A - BASIS OF PRESENTATION The accompanying unaudited condensed financial statements of The First Connecticut Capital Corporation (the "Corporation"), formerly The First Connecticut Small Business Investment Company, have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-QSB and Article 10-01 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair representation have been included. Operating results are not necessarily indicative of the results that may be expected for the year ending March 31, 1997. For further information, refer to the financial statements and footnotes thereto included in the Corporation's annual report filed on Form 10-KSB for the year ended March 31, 1996. NOTE B - COMMITMENTS AND CONTINGENCIES During the year ended March 31, 1995, the Corporation foreclosed on a real estate property with potential environmental contamination. No lawsuit or other action is currently pending or expected with regard to this site and in the opinion of management, this matter will not have a material adverse effect on the financial position or results of operations of the Corporation. The Corporation is involved in litigation and administrative proceedings primarily arising in the normal course of its business. In the opinion of management, the Corporation's liability, if any, under any pending litigation or administrative proceeding would not materially affect its financial condition or results of operations. THE FIRST CONNECTICUT CAPITAL CORPORATION Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS The Corporation had a net loss for the nine months ended December 31, 1996 of $188,000 compared to a net loss of $465,000 for the comparable period of the prior year. The Corporation is currently licensed in the States of Connecticut and Massachusetts to operate as Mortgage Lender/Broker. It is in the process of applying for a similar license in the State of New York. Interest Income and Other Operating Income Interest income increased $10,000 for the nine months ended December 31, 1996 as compared with the comparable period of the prior year. Total other operating income increased by $24,000 from the prior year due to the increase in loan originations. Other Operating Expense Other operating expenses declined $248,000 during the nine months ended December 31, 1996 as compared to the comparable period of the prior year due primarily to decreases in professional fees, clerical salaries, amortization of servicing rights and an overall reduction in all operating expenses. Plan of Operation The Corporation is engaged in the mortgage banking business, which involves the origination, purchase, sale and servicing of mortgage loans secured by residential properties and other real estate. It is anticipated that the Corporation will continue to increase its level of activities in these areas creating servicing fees and interest income. It is too early to evaluate the results as the Corporation is in a period of strong competition and the real estate market remains in a state of flux. LIQUIDITY AND FINANCIAL CONDITION The Corporation has approximately $150,000 of unrestricted cash and cash equivalents and approximately $1.083 million of Stockholders' Equity at December 31, 1996. The Corporation currently anticipates that during the year ending March 31, 1997, its principal financing needs will consist of funding its mortgage loans held for sale and the ongoing net cost of mortgage loan originations and cash flow used in operations. Although the Corporation anticipates increased activities in originating mortgage loans, the difficulties experienced within the relevant economic markets still exist and there are no assurances that increased activity will occur. Consequently, as a means to provide further cash flow, the Corporation has the positive intent to liquidate certain assets in its portfolio and believes that a market exists for those assets. Future cash flow requirements will depend primarily on the level of the Corporation's activities in originating and selling mortgage loans, as well as cash flow required by its operations. The Corporation continues to investigate and pursue alternative and supplementary methods to finance its operations and to support the growth of the Corporation. The Corporation believes that the cash on hand and internally generated funds will be sufficient to meet its corporate, general and administrative working capital and other cash requirements during the year ending March 31, 1997. The Corporation took certain steps during the year ended March 31, 1996 and continues to decrease its cash flow requirements. These steps included a management salary reduction and a restatement and amendment to the pension plan. Management also believes additional steps can be taken if necessary. PART II. OTHER INFORMATION Item 6. Exhibits and Reports on Form 8-K NONE THE FIRST CONNECTICUT CAPITAL CORPORATION SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned duly authorized. THE FIRST CONNECTICUT CAPITAL CORPORATION (Registrant) Date: February 12, 1997 By: /s/David Engelson ----------------- David Engelson President and Chief Financial Officer EX-27 2
5 1,000 9-MOS MAR-31-1997 DEC-31-1996 195 0 2,235 (481) 0 1,949 281 (220) 2,010 927 0 0 0 587 496 2,010 374 374 0 165 392 5 0 (188) 0 0 0 0 0 (188) (0.16) (0.16)
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