-----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, OgS7M/H+1GolbdYwGmcscJtLSRd0tOmn1tCidAO3xKWAXd8s8NOCIWMbuL0SZAKo amDYfIgLdbk+fQu1l6aFXg== 0000081057-96-000003.txt : 19960514 0000081057-96-000003.hdr.sgml : 19960514 ACCESSION NUMBER: 0000081057-96-000003 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19960331 FILED AS OF DATE: 19960513 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: CABLE CAR BEVERAGE CORP CENTRAL INDEX KEY: 0000081057 STANDARD INDUSTRIAL CLASSIFICATION: BOTTLED & CANNED SOFT DRINKS CARBONATED WATERS [2086] IRS NUMBER: 520880815 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 000-14784 FILM NUMBER: 96561244 BUSINESS ADDRESS: STREET 1: 717 17TH ST STREET 2: STE 1475 CITY: DENVER STATE: CO ZIP: 80202-3314 BUSINESS PHONE: 3032989038 MAIL ADDRESS: STREET 1: 717 17TH ST STREET 2: STE 1475 CITY: DENVER STATE: CO ZIP: 80202-3314 FORMER COMPANY: FORMER CONFORMED NAME: GREAT EASTERN INTERNATIONAL INC DATE OF NAME CHANGE: 19890810 FORMER COMPANY: FORMER CONFORMED NAME: GREAT EASTERN ENERGY CORP DATE OF NAME CHANGE: 19840815 FORMER COMPANY: FORMER CONFORMED NAME: PUBLISHING COMPUTER SERVICE INC DATE OF NAME CHANGE: 19810817 10-Q 1 FORM 10-Q SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 (Mark One) QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 1996 ---------------------------------------- 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 0-14784 -------------------------------------------------- CABLE CAR BEVERAGE CORPORATION - ------------------------------------------------------------------------- (Exact name of Registrant as specified in its charter) DELAWARE 52-0880815 ---------------- ---------------------- (State or other jurisdiction (I.R.S Employer of incorporation) Identification No.) 717 17th Street, Suite 1475, Denver, CO 80202-3314 - --------------------------------------------------------------------------- (Address of principal executive offices) (303) 298-9038 - ---------------------------------------------------------------------------- (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 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 ------- -------- The Registrant had 8,825,015 shares of its $.01 par value common stock outstanding as of May 9, 1996. < Form 10-Q 1st Quarter INDEX ----- PAGE ---- PART 1- FINANCIAL INFORMATION Item 1. Consolidated Financial Statements --------------------------------- Unaudited consolidated balance sheet at March 31, 1996 and at December 31, 1995 3 Unaudited consolidated statement of operations for the three-month periods ended March 31, 1996 and March 31, 1995 4 Unaudited consolidated statement of cash flows for the three-month periods ended March 31, 1996 and March 31, 1995 5 Notes to unaudited consolidated financial statements 6 Item 2 Management's Discussion and Analysis of --------------------------------------- Financial Condition and Results of Operations 8 --------------------------------------------- PART II. OTHER INFORMATION 9 PART I - FINANCIAL INFORMATION Item 1. Consolidated Financial Statements CABLE CAR BEVERAGE CORPORATION AND SUBSIDIARIES ----------------------------------------------- UNAUDITED CONSOLIDATED BALANCE SHEET ------------------------------------ March 31, December 31, 1996 1995 -------- ----------- ASSETS ------
CURRENT ASSETS: Cash and cash equivalents $504,399 $576,191 Accounts receivable, net of allowance for doubtful accounts of $65,156 at March 31, 1996 and $55,949 at December 31, 1995 1,373,099 1,063,040 Inventories 2,125,747 1,808,257 Prepaid expenses and other current assets 57,621 40,394 Deferred income tax assets 381,948 340,389 --------- --------- Total current assets 4,442,814 3,828,271 PROPERTY AND EQUIPMENT, NET Property and equipment less accumulated depreciation of $108,998 at March 31, 1996 and $99,231 at December 31, 1995 119,720 116,466 OTHER ASSETS: Goodwill and other intangibles, less accumulated amortization of $357,048 at March 31, 1996 and $347,007 at December 31, 1995 621,385 631,426 Investment in AMCON Distributing Co. 99,185 99,185 Other assets 79,030 72,498 Deferred income tax assets 526,932 612,854 -------- -------- $5,889,066 $5 ,360,700 ========== =========== LIABILITIES AND STOCKHOLDERS' EQUITY ------------------------------------ CURRENT LIABILITIES: Accounts payable and accrued liabilites $564,161 $380,198 Other current liabilities 745,332 572,121 Current portion of long-term debt 3,796 5,960 -------- -------- Total current liabilities 1,313,289 958,279 --------- -------- LONG-TERM DEBT 0 0 --------- -------- STOCKHOLDERS' EQUITY: Common Stock, $.01 par value; 25,000,000 shares authorized; 8,658,349 shares issued at March 31, 1996, and 8,658,349 issued at December 31, 1995 86,584 86,584 Additional paid-in capital 9,502,877 9,502,877 Accumulated deficit (4,985,049) (5,158,405) Less - 76,357 common shares in treasury (28,635) (28,635) -------- ---------- 4,575,777 4,402,421 ---------- ---------- $5,889,066 $5,360,700 ========== ==========
SEE NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS CABLE CAR BEVERAGE CORPORATION AND SUBSIDIARIES ----------------------------------------------- UNAUDITED CONSOLIDATED STATEMENT OF OPERATIONS ----------------------------------------------
THREE-MONTHS ENDED MARCH 31, 1996 1995 ------ ------ REVENUE: Sales $3,682,809 $1,889,363 COST AND EXPENSES: Cost of goods sold 2,696,901 1,381,313 General and administrative 241,754 140,055 Selling and distribution 444,148 233,760 Depreciation and amortization 19,807 15,233 --------- --------- 3,402,610 1,770,361 --------- --------- INCOME FROM OPERATIONS 280,199 119,002 -------- -------- OTHER INCOME AND (EXPENSES): Interest income and other non-operating income 10,264 14,180 Interest expense (145) 0 -------- ------ INCOME BEFORE INCOME TAXES 290,318 133,182 PROVISION FOR INCOME TAXES 116,962 30,400 NET INCOME $173,356 $102,782 ======== ======== EARNINGS PER COMMON SHARE: Net Income $ .02 $ .01 ======= ======= WEIGHTED AVERAGE COMMON AND COMMON EQUIVALENT SHARES 9,041,650 8,688,042 ========= =========
SEE NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS CABLE CAR BEVERAGE CORPORATION AND SUBSIDIARIES ----------------------------------------------- UNAUDITED CONSOLIDATED STATEMENT OF CASH FLOWS ----------------------------------------------
THREE-MONTHS ENDED MARCH 31, 1996 1995 -------- -------- CASH FLOWS FROM OPERATING ACTIVITIES: Net income $173,356 $102,782 Adjustment to reconcile net income to net cash from operating activities: Depreciation and amortization 19,807 15,233 Provision for loss on accounts receivable 9,207 6,516 Change in current assets and liabilities: Accounts receivable (319,266) (91,193) Inventories (317,490) (175,617) Prepaid expenses and other current assets (17,227) (6,332) Other assets (6,532) 0 Deferred income tax assets 44,363 0 Accounts payable and accrued liabilities 183,963 182,217 Other current liabilities 173,211 17,921 ------- ------- NET CASH FROM (FOR) OPERATING ACTIVITIES (56,608) 51,527 -------- ------ CASH FLOWS FOR INVESTING ACTIVITIES: Property and equipment, net (13,020) (24,050) Acquisition of licensing fee -------- -------- NET CASH FOR INVESTING ACTIVITIES (13,020) (24,050) -------- -------- CASH FLOWS FROM (FOR) FINANCING ACTIVITIES: Principle payments on debt (2,164) (2,676) Proceeds from issuance of stock 209,450 ------- ------- NET CASH FROM (FOR) FINANCING ACTIVITIES (2,164) 206,774 ------- ------- NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (71,792) 234,251 CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD 576,191 580,658 ------- ------- CASH AND CASH EQUIVALENTS AT END OF PERIOD $504,399 $814,909 ======== ========
SEE NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS CABLE CAR BEVERAGE CORPORATION AND SUBSIDIARIES NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS Note 1 - Financial Statements Presented: The consolidated interim financial statements of Cable Car Beverage Corporation (the "Company") at March 31, 1996 and for the three-month periods ended March 31, 1996 and March 31, 1995 are unaudited. In the opinion of management, all adjustments (which include only normal recurring adjustments) necessary to present fairly the consolidated financial position, results of operations and cash flows for all periods presented have been made. The Company's consolidated financial statements at and for the three-months ended March 31, 1996 include the accounts of its wholly-owned subsidiaries, Old San Francisco Seltzer, Inc. and Fountain Classics, Inc. Certain information and substantially all footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been omitted. It is suggested that these financial statements be read in conjunction with the financial statements and notes thereto included in the Company's consolidated financial statements, filed in Form 10-K for December 31, 1995. The results of operations for the period ended March 31, 1996 are not necessarily indicative of the operating results for the full year. Certain reclassifications have been reflected in the prior year financial statements to confirm to the current year presentation. Note 2 - Income Per Common Share: - -------------------------------- Net income per common and common share equivalent was computed under the treasury stock method using the weighted average number of common shares and dilutive common stock equivalent shares outstanding during the period. Note 3 - Inventories: - -------------------- Inventories consisted of:
March 31, December 31, 1996 1995 --------- ---------- Finished Goods $1,212,429 $1,009,223 Raw Materials 913,318 799,034 ---------- ---------- $2,125,747 $1,808,257 ========== ==========
Note 4 - Income Taxes: - --------------------- As of March 31, 1996, the Company had a net deferred income tax asset of approximately $908,880, consisting primarily of net operating loss carryforwards and $673,000 of other future deductible temporary differences. The net operating loss carryforwards are subject to certain annual utilization limits. Item 2. Management's Discussion and Analysis of Financial Condition And Results of Operations Current Developments - -------------------- The Company continued to experience growth of its line of Stewart's brand soft drinks during the March 1996 quarter. Also during the March 1996 quarter, the Company completed designs for Stewart's Diet Country Orange N' Cream, a line extension of the Stewart's brand. The Company intends to begin selling Stewart's Diet Country Orange N' Cream in 1996. The Company also completed product and package development during the March 1996 quarter for ASPEN flavored waters, a new product line that the Company intends to introduce in selected test markets during May 1996. Liquidity and Capital Resources - ------------------------------- The Company's current ratio at March 31, 1996 was 3.38 as compared to 3.99 at December 31, 1995. Working capital at March 31, 1996 was $3,129,524 as compared to $2,869,992 at December 31, 1995. For the three-months ended March 31, 1996, cash decreased by approximately $71,792. The principal uses were for operating and investing activities. Net income adjusted for depreciation, amortization and other provisions generated $202,370 in cash. Accounts receivable and inventories increased by a total of $636,756, and accounts payable increased $183,963. Financing activities used cash of $2,164, primarily for the payment of capital leases. The Company intends to utilize cash from operations to meet its ongoing obligations. The Company has also established a bank line of credit in the amount of $500,000 which it may utilize from time to time to meet seasonal cash needs. Management does not expect liquidity problems during 1996 assuming the Company can maintain or exceed its current sales volume and expenses as a percentage of sales remain relatively constant. As of March 31, 1996, the Company had net deferred income tax assets of approximately $908,880, consisting primarily of approximately $673,000 in net operating loss carryforwards and other deferred reserves. As of March 31, 1996, the Company has net operating loss carryforwards of approximately $1,892,250 which expire from 1997 through 2005. Pursuant to Section 382 of the Internal Revenue Code, the Company is limited in the amount of net operating loss carryforwards it may use each year to offset taxable income. The Company's consolidated Section 382 annual limitation is approximately $343,000. Results of Operations - --------------------- Comparison of the three-month periods ended March 31, 1996 and March 31, 1995 - ----------------------------------------------------------------------------- Revenue for the three-months ended March 31, 1996 was $3,682,809 versus revenue of $1,889,363 for the three-months ended March 31, 1995. This increase of $1,793,446, or 95%, was primarily due to increased sales of Stewart's brand beverages. Pre-tax income increased $157,136, or 118%, to $290,318 for the three-months ended March 31, 1996 from $133,182 for the three-months ended March 31, 1995. This increase in pre-tax income is primarily due to increased revenues. Net income increased by $70,574, or 69%, to $173,356 for the three-months ended March 31, 1996 from $102,782 for the three-months ended March 31, 1995. Net income growth differed from growth in pre-tax income due to the fact that the Company's provision for income taxes was recorded at a higher effective tax rate for 1996 than for 1995. The Company recorded its provision for income taxes at a 38% income tax rate for the three-months ended March 31, 1996, as opposed to a 21% income tax rate for the three-months ended March 31, 1995. The following table reflects certain financial information for the Company for the comparable three-months ended March 31, 1996 and 1995:
March 31, March 31, 1996 1995 --------- -------- Revenue $3,602,809 $1,889,363 Cost of goods sold 2,696,901 1,381,313 Expenses 705,709 389,048 Other income 10,119 14,180 Income before income taxes 290,318 133,182 Net Income 173,356 102,782
Cost of goods sold increased $1,315,588 in the first quarter of 1996 versus 1995, but remained at a percentage of sales of 73%. General and administrative expense increased $101,699 from 1995 to 1996, and decreased as a percentage of sales from 7.4% to 6.6%. The decrease was primarily attributable to increased sales and constant administrative expense. Selling expense increased $210,388 from 1995 to 1996, and remained constant as a percentage of sales at 12%. The dollar increase was due primarily to the following factors: (1) expenses incurred in 1996 for designing packaging of the Company's proprietary products; and (2) salary and relating selling expenses associated with expanding distribution. PART II - OTHER INFORMATION None. 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, hereunto duly authorized. (REGISTRANT) CABLE CAR BEVERAGE CORPORATION BY (signature) /s/Samuel M. Simpson BY (signature) /s/Myron D. Stadler (DATE) May 10,1996 (NAME AND TITLE) Samuel M. Simpson, President (NAME AND TITLE) Myron D Stadler, Cheif accounting Officer EX-27 2
5 3-MOS DEC-31-1995 MAR-31-1996 504,399 79,030 2,190,903 65,156 57,621 4,442,814 228,718 108,998 5,889,066 1,313,289 0 8,658,349 0 0 0 5,889,066 3,682,809 3,682,809 2,696,901 3,402,610 0 0 145 290,318 116,962 0 0 0 0 173,356 .02 .02
-----END PRIVACY-ENHANCED MESSAGE-----