-----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, FJrvH13iXKt4EfZzg31gwAsMD/XoIK8XYgEKP9xROkCDrrZVPDR4XFKx/jw79uUC IeJFZb+U8AkIAXQfWi1Ggg== 0001016193-99-000015.txt : 19990209 0001016193-99-000015.hdr.sgml : 19990209 ACCESSION NUMBER: 0001016193-99-000015 CONFORMED SUBMISSION TYPE: 10QSB PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19980831 FILED AS OF DATE: 19990208 FILER: COMPANY DATA: COMPANY CONFORMED NAME: TUFCO INTERNATIONAL INC CENTRAL INDEX KEY: 0000808714 STANDARD INDUSTRIAL CLASSIFICATION: CARPETS AND RUGS [2273] IRS NUMBER: 954071623 STATE OF INCORPORATION: NV FISCAL YEAR END: 0531 FILING VALUES: FORM TYPE: 10QSB SEC ACT: SEC FILE NUMBER: 033-10984-LA FILM NUMBER: 99523118 BUSINESS ADDRESS: STREET 1: PIONEER LANE STREET 2: P O BOX 457 CITY: GENTRY STATE: AR ZIP: 72734 BUSINESS PHONE: 5017362201 MAIL ADDRESS: STREET 1: 12575 PIONEER LANE STREET 2: 12575 PIONEER LANE CITY: GENTRY STATE: AK ZIP: 72734 FORMER COMPANY: FORMER CONFORMED NAME: COASTECH INC DATE OF NAME CHANGE: 19900912 10QSB 1 QUARTER =============================================================================== U.S. SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ------------ FORM 10-QSB ------------ [X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarter ended August 31, 1998 OR [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission file number 33-10984-LA ------------ TUFCO INTERNATIONAL, INC. (Name of Small Business Issuer as specified in its charter) Nevada 95-4071623 ---------- ------------ (State or other jurisdiction of (I.R.S. employer incorporation or organization identification No.) Pioneer Lane, Gentry, AR 72734 ------------------------------------------ (Address of principal executive offices) Registrant's telephone no., including area code: (501) 736-2201 No Change ---------------- Former name, former address, and former fiscal year, if changed since last report. Securities registered pursuant to Section 12(b) of the Exchange Act: None Securities registered pursuant to Section 12(g) of the Exchange Act: None Check whether the Issuer (1) has filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act 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. Common Stock outstanding at January 14, 1999 - 6,965,800 shares of $.001 par value Common Stock. DOCUMENTS INCORPORATED BY REFERENCE: NONE 1 =============================================================================== FORM 10-QSB FINANCIAL STATEMENTS AND SCHEDULES TUFCO INTERNATIONAL, INC. For the Quarter Ended August 31, 1998. The following financial statements and schedules of the registrant and its consolidated subsidiaries are submitted herewith: PART I - FINANCIAL INFORMATION Page of Form 10-Q Item 1. Financial Statements: Condensed Consolidated Balance Sheet--August 31, 1998... 3 Condensed Consolidated Statements of Income for the three months ended August 31, 1998 and 1997................. 5 Condensed Consolidated Statements of Cash Flows--for the three months ended August 31, 1998 and 1997........... 6 Notes to Condensed Consolidated Financial Statements.... 7 Item 2Management's Discussion and Analysis of Financial Condition and Results of Operations............................... 8 PART II - OTHER INFORMATION Page Item 1. Legal Proceedings 11 Item 2. Changes in Securities 11 Item 3. Defaults Upon Senior Securities 11 Item 4. Submission of Matters to a Vote of Security Holders 11 Item 5. Other Information 11 Item 6(a).Exhibits 11 Item 6(b).Reports on Form 8-K 13 2 TUFCO INTERNATIONAL, INC. CONDENSED CONSOLIDATED BALANCE SHEET AUGUST 31, 1998 Unaudited ASSETS CURRENT ASSETS: Cash $ 14,902 Accounts and notes receivable, less allowance for doubtful accounts of $185,000 Trade 1,058,338 Affiliates 528,752 Inventories 417,540 Deferred income tax benefits 79,085 Other current assets 47,647 ------------------ 2,146,264 ------------------ Property and equipment 1,160,586 Accumulated depreciation 477,236 ------------------ 683,350 ------------------ Reacquired franchise territory 356,558 Accumulated amortization 281,249 ------------------ 75,309 ------------------ Other assets 3,705 ------------------ $ 2,908,628 ================== 3 LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES: Current maturities of long-term debt $ 49,518 Trade accounts payable 973,838 Income taxes payable 147,264 Accrued expenses 26,642 ------------------ 1,197,262 ------------------ LONG-TERM DEBT 471,154 ------------------ DEFERRED INCOME TAXES 34,183 ------------------ COMMON STOCKHOLDERS' EQUITY: Common stock,$.001 par value; authorized 50,000,000 shares; issued and outstanding 6,965,800 shares 6,966 Retained earnings 1,351,577 Other common stockholders' equity (152,514) ------------------ 1,206,029 ------------------ $ 2,908,628 ================== 4 TUFCO INTERNATIONAL, INC. CONDENSED CONSOLIDATED STATEMENTS OF INCOME For the three months ended August 31, 1998 and 1997 Unaudited 1998 1997 ------------------------------------ NET SALES: Trade $ 1,272,923 $ 1,413,199 Affiliates 109,644 324,783 ------------------------------------- 1,382,567 1,737,982 ------------------------------------ Cost of sales 933,218 1,197,579 Selling expenses 35,037 101,471 General and administrative exp 239,638 298,245 Other income (40,697) (29,471) ------------------------------------- 1,167,196 1,567,824 ------------------------------------- Income before taxes 215,371 170,158 ------------------------------------- Provision for income taxes Current 88,010 63,007 Deferred 34 1,128 ------------------------------------- 88,044 64,135 ------------------------------------- Net Income $ 127,327 $ 106,023 ===================================== INCOME PER SHARE: Net income $ 0.01828 $ 0.01522 ===================================== Weighted average number of shares outstanding 6,965,800 6,965,800 ===================================== 5 TUFCO INTERNATIONAL, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS For the three months ended August 31, 1998 and 1997 Unaudited 1998 1997 ---------- ---------- NET SALES PROVIDED BY (USED IN) Operating Activities $ 66,225 $ (6,687) ---------- ---------- CASH FLOWS FROM INVESTING ACTIVITIES Purchase of property and equipment 0 (24,310) Proceeds from sale of property and 7,500 20,500 equipment ---------- ---------- Net cash provided by (used in) 7,500 (3,810) investing activities ---------- ---------- CASH FLOWS FROM FINANCING ACTIVITIES Principal payments on long-term de (12,272) (10,049) Collection of capital contribution 1,000 Employer loan for purchase of ESOP (48,688) ---------- ---------- Net cash used in financing activit (59,960) (10,049) ---------- ---------- INCREASE (DECREASE) IN CASH 13,765 (20,546) CASH, BEGINNING OF PERIOD 1,137 21,397 ---------- ---------- CASH, END OF PERIOD $ 14,902 $ 851 ========== ========== 6 TUFCO INTERNATIONAL, INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS Unaudited NOTE 1: BASIS OF PRESENTATION The accompanying condensed consolidated financial statements are presented in accordance with the requirements of Form 10-QSB and consequently do not include all of the disclosures normally required by generally accepted accounting principles for complete financial statements or those normally made in the Company's annual Form 10-KSB filing. Accordingly, the reader of these financial statements may wish to refer to the Company's financial statements for the year ended May 31, 1998 included in the Company's Form 10-KSB for further information. The financial information has been prepared in accordance with generally accepted accounting principles and has not been audited. In the opinion of management, the information presented reflects all adjustments necessary for a fair statement of interim results. All such adjustments are of a normal and recurring nature. The condensed consolidated results of operations for the three months ended August 31, 1998 and 1997 are not necessarily indicative of the operating results for the full year. 7 PART I - ITEM 2 MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS The Company is engaged in the business of selling and installing industrial flooring systems. The following Management's Discussion and Analysis should be read in conjunction with the Management's Discussion and Analysis included in the Company's Form 10-KSB for the year ended May 31, 1998. Financial Condition Total assets at August 31, 1998 were $2,908,628 compared to $3,040,757 at the year ended May 31, 1998. The Company's cash position remains limited, $14,902 at August 31, 1998 compared to $1,137 at May 31, 1998. During the last several years, the Company's cash position has been limited and its ability to expand its operations in a meaningful way is restricted by its limited cash position. Receivables from non-affiliates increased from $1,269,310 at May 31, 1998 to $1,058,338 at August 31, 1998 an increase of approximately 17%. This increase was primarily the result of decreased collections. Receivables from affiliates were up from $474,720 at May 31, 1998 to $528,752 at August 31, 1998. Inventories increased to $417,540 at August 31, 1998 compared to $361,850 at May 31, 1998. The Company does not currently have any lines of credit and has historically borrowed short term funds from its affiliates and from commercial banks for working capital. At August 31, 1998, the Company had total liabilities to banks of $497,263 of which $37,146 was classified as current debt. At May 31, 1998, the Company had total liabilities to banks of $506,163 of which $40,092 was classified as current debt. This loan is secured by the Company's real property and is guaranteed by Brent Mills, officer and director of the Company. At August 31, 1998, total liabilities were $1,702,599 compared to $1,915,217 at May 31, 1998. 8 Results of Operations The Company's revenues are primarily attributed to the sale of flooring components to franchisees and licensees, the sale and installation of complete flooring jobs by the Company. Effective March 1, 1997, the Company discontinued the sale and installation of interior ceiling and wall systems. The Company discontinued the product line to concentrate on Tufco flooring. Total net sales for the three month period ended August 31, 1998, were $1,382,567 compared to $1,737,982 for the three month period ended August 31, 1997, a decrease of approximately 20%. The reduction in sales was primarily attributable to a reduction in installation by the Company. Operating Expenses. Cost of sales during the three month period ended August 31, 1998 was 67% compared to 69% for the three months period ended August 31, 1997. For the three month period ended August 31, 1998, total general and administrative expenses were $239,638 (approximately 17% of total sales) compared to $298,245 (17% of total sales) for the three month period ended August 31, 1997. Selling expenses were down for the three month period ended August 31, 1998 from $101,471 for the three months ended August 31, 1997 to $35,037 for the three months ended August 31, 1998. The reduction in selling expenses was primarily attributable to a reduction in installations by the company and the elimination of the Arcoplast Division. Total cost of sales and operating expenses for the three month period ended August 31, 1998 were $1,167,196 (84% of total sales) compared to $1,567,824 (90% of total sales) for the three month period ended August 31, 1997. The decrease in selling expenses of $66,434 for the quarter ended August 31, 1998 compares to August 31, 1997 as the primary reason for the decrease in cost of goods sold and operating expenses as a percentage of revenue. 9 Net Income. For the three month period ended August 31, 1998, the Company had net income of $127,327 compared to a net income of $106,023 for the three month period ended August 31, 1997. Inflation The Company's business and operations have not been materially affected by inflation during the past year and the current fiscal year. 10 PART II - OTHER INFORMATION Item 1. Legal Proceedings. None. Item 2. Changes in Securities. None. Item 3. Defaults Upon Senior Securities. None. Item 4. Submission of Matters to a Vote of Security Holders. None. Item 5. Other Information. Item 6(a). Exhibits. None. Item 6(b). Reports on Form 8-K. None. 11 SIGNATURE In accordance with the requirements of the Exchange Act, the Registrant has caused this report to be signed on its behalf by the undersigned thereunto duly authorized. Dated: February 3, 1999 By /s/ Brent E. Mills ---------------------------------- Brent E. Mills President Principal Executive Officer 12 EX-27 2 FDS --
5 THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM CYCLO3PSS CORPORATION'S FINANCIAL STATEMENTS AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS 1 14,902 3-MOS MAY-05-1999 JUN-01-1998 AUG-31-1998 1 14,902 0 1,772,090 185,000 417,540 2,146,264 1,160,586 477,236 2,908,628 1,197,262 0 0 0 6,966 1,199,063 2,908,628 1,382,567 1,382,567 933,218 1,167,196 (40,697) 0 0 215,371 88,044 127,327 0 0 0 127,327 .02 0
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