-----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, F5lAmVwhBR8SFwU46vG3/J9B8Xes0o8PFuzc/yVlSphbbXl+/0hTcRGoAKdWXOoq W/0qYCUxvay/cPc+Yo1Ebg== 0000081057-96-000006.txt : 19960816 0000081057-96-000006.hdr.sgml : 19960816 ACCESSION NUMBER: 0000081057-96-000006 CONFORMED SUBMISSION TYPE: 10-Q CONFIRMING COPY: PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19960630 FILED AS OF DATE: 19960814 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: 00000000 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) [x] QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 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 8,828,658 shares of its $.01 par value common stock outstanding as of August 9, 1996. Page 1 Form 10-Q 2nd Quarter INDEX ----- PAGE ---- PART I - FINANCIAL INFORMATION
Item 1. Consolidated Financial Statements: --------------------------------- Unaudited consolidated balance sheet at June 30, 1996 and at December 31, 1995 3 Unaudited consolidated statement of operations for the six-month and three-month periods ended June 30, 1996 and June 30, 1995 4 Unaudited consolidated statement of cash flows for the six-month periods ended June 30, 1996 and June 30, 1995 5 Unaudited consolidated statement of changes in stockholders' equity 6 Notes to unaudited consolidated financial statements for the six-month period ended June 30, 1996 7 Item 2. Management's Discussion and Analysis of ----------------------------------------- Financial Condition and Results of Operations 8 ---------------------------------------------- PART II - OTHER INFORMATION 10
Page 2 PART I - FINANCIAL INFORMATION Item 1. Consolidated Financial Statements CABLE CAR BEVERAGE CORPORATION AND SUBSIDIARIES ----------------------------------------------- UNAUDITED CONSOLIDATED BALANCE SHEET ------------------------------------
June 30, December 31, 1996 1995 -------- ------------ ASSETS - -------- CURRENT ASSETS: Cash and cash equivalents $ 912,184 $ 576,191 Accounts receivable, net of allowance for doubtful accounts of $77,281 at June 30, 1996 and $55,949 at December 31, 1995 1,887,385 1,063,040 Inventories, net 2,353,861 1,808,257 Prepaid expenses and other current assets 55,143 40,394 Deferred income tax assets 381,948 340,389 ----------- ----------- Total Current Assets 5,590,521 3,828,271 PROPERTY AND EQUIPMENT, NET Property and equipment less accumulated depreciation of $121,235 at June 30, 1996 and $99,231 at December 31, 1995 133,603 116,466 OTHER ASSETS: Goodwill and other intangibles, less accumulated amortization of $367,087 at June 30, 1996 and $347,007 at December 31, 1995 611,346 631,426 Investment in AMCON Distributing Co. 99,185 99,185 Other assets 144,659 72,498 Deferred income tax assets 526,932 612,854 -------------- ------------- $ 7,106,246 $ 5,360,700 ============== ============= LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES: Accounts payable and accrued liabilities $ 977,622 $ 380,198 Other current liabilities 987,798 578,081 ---------- ----------- Total Current Liabilities 1,965,420 958,279 ---------- ----------- STOCKHOLDERS' EQUITY: Common stock, $.01 par value; 25,000,000 shares authorized; 8,905,015 shares issued at June 30, 1996 and 8,658,349 issued at December 31, 1995 89,050 86,584 Additional paid-in capital 9,635,409 9,502,877 Accumulated deficit (4,554,998) (5,158,405) Less - 76,357 common shares in treasury (28,635) (28,635) ----------- ---------- 5,140,826 4,402,421 ------------- -------------- $ 7,106,246 $ 5,360,700 ============= ==============
SEE NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS Page 3 CABLE CAR BEVERAGE CORPORATION AND SUBSIDIARIES ----------------------------------------------- UNAUDITED CONSOLIDATED STATEMENT OF OPERATIONS -----------------------------------------------
THREE-MONTHS SIX-MONTHS ENDED JUNE 30, ENDED JUNE 30, 1996 1995 1996 1995 -------- ------- ------- ------- REVENUE: Sales $5,249,735 $3,453,111 $8,932,544 $5,342,474 COST AND EXPENSES: Cost of goods sold 3,766,940 2,496,017 6,463,841 3,877,330 General and administrative 273,375 221,135 515,129 362,662 Selling and distribution 521,183 336,239 965,331 568,526 Depreciation and amortization 22,277 15,028 42,084 30,261 ---------- ---------- --------- ---------- 4,583,775 3,068,419 7,986,385 4,838,780 ---------- ---------- --------- ----------- INCOME FROM OPERATIONS 665,960 384,692 946,159 503,694 ---------- --------- --------- ---------- OTHER INCOME AND (EXPENSES): Interest income and other non-operating income 9,629 13,312 19,893 27,492 Interest expense (83) (691) (228) (691) ---------- ---------- ---------- --------- INCOME BEFORE INCOME TAXES 675,506 397,313 965,824 530,495 PROVISION FOR INCOME TAXES 245,455 75,312 362,417 105,712 -------- -------- -------- -------- NET INCOME $430,051 $322,001 $603,407 $424,783 -------- -------- -------- -------- NET INCOME PER COMMON SHARE: $ .05 $ .04 $ .07 $ .05 ======== ======== ======== ======== WEIGHTED AVERAGE COMMON AND COMMON EQUIVALENT SHARES 9,050,647 9,035,091 9,022,000 8,933,434 ========= ========= ========= =========
SEE NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS Page 4 CABLE CAR BEVERAGE CORPORATION AND SUBSIDIARIES ----------------------------------------------- UNAUDITED CONSOLIDATED STATEMENT OF CASH FLOWS ----------------------------------------------
SIX-MONTHS ENDED JUNE 30, 1996 1995 ---------- ---------- CASH FLOWS FROM OPERATING ACTIVITIES: Net income $ 603,407 $ 424,784 Adjustment to reconcile net income to net cash from operating activities: Depreciation and amortization 42,084 30,261 Provision for loss on accounts receivable 21,332 13,500 Change in current assets and liabilities: Accounts receivable (845,677) (879,184) Inventories (545,604) (1,010,207) Prepaid expenses and other current assets (14,749) (12,079) Other assets (72,161) (25,000) Deferred income tax assets 44,363 Accounts payable and accrued liabilities 597,424 705,594 Other current liabilities 414,106 253,803 ---------- ----------- NET CASH FROM OPERATING ACTIVITIES 244,525 (498,528) ---------- ----------- CASH FLOWS FROM INVESTING ACTIVITIES: Cash provided by short-term investments 151,876 Property and equipment acquisitions (39,141) (45,091) ----------- ------------ NET CASH FROM INVESTING ACTIVITIES (39,141) 106,785 ----------- ------------ CASH FLOWS FROM FINANCING ACTIVITIES: Principle payments on debt (4,389) (4,640) Proceeds from issuance of stock 134,998 374,448 ----------- ------------ NET CASH FROM FINANCING ACTIVITIES 130,609 369,808 ----------- ------------ NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 335,993 (21,935) CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD 576,191 580,658 ---------- ----------- CASH AND CASH EQUIVALENTS AT END OF PERIOD $ 912,184 $ 558,723 ========== ==========
Page 5 SEE NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS CABLE CAR BEVERAGE CORPORATION AND SUBSIDARIES ---------------------------------------------- UNAUDITED CONSOLIDATED STATEMENT OF CHANGES ------------------------------------------- IN STOCKHOLDERS' EQUITY ----------------------- COMMON STOCK ADDITIONAL ------------ NUMBER OF PAID-IN
SHARES AMOUNT CAPITAL -------- ---------- ------------ Balance, December 31, 1995 8,658,349 $86,584 $9,502,877 Exercise of stock options 246,666 2,466 132,532 Net Income ---------- -------- ----------- BALANCE JUNE 30, 1996 8,905,015 $89,050 $9,635,409 ========= ======== ===========
SEE NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS Page 6 CABLE CAR BEVERAGE CORPORATION AND SUBSIDARIES ---------------------------------------------- UNAUDITED CONSOLIDATED STATEMENT OF CHANGES ------------------------------------------- IN STOCKHOLDERS' EQUITY -----------------------
ACCUMU TREASURY STOCK ---------------- -LATED NUMBER OF DEFICIT SHARES AMOUNT ----------- ----------- ------------ Balance, December 31, 1995 $(5,158,405) 76,357 $(28,635) Exercise of stock options Net Income 603,407 -------------- ---------- ------------ BALANCE JUNE 30, 1996 $(4,554,998) 76,357 $(28,635) ============ ========== ============
SEE NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS Page 6 (cont.) 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 June 30, 1996 and for the six-month and three- month periods ended June 30, 1996 and June 30, 1995 are unaudited. In the opinion of management, all adjustments (consisting of 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 interim financial statements 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 June 30, 1996 are not necessarily indicative of the operating results for the full year. Certain reclassifications have been reflected in the prior period financial statements to conform to the current year presentations. Note 2 - Net Income Per Common Share: Net income per common share 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:
June 30, December 31, 1996 1995 ---------- -------------- Finished Goods $1,378,115 $1,009,223 Raw Materials 975,746 799,034 ------------- ------------- $2,353,861 $1,808,257 ============= =============
Page 7 Note 4 - Income Taxes: At June 30, 1996, the Company had a net deferred income tax asset of approximately $900,000, consisting primarily of net operating loss carryforwards and other reserves. Certain of the deferred tax assets are classified as long-term primarily because some of 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 Certain statements in the following discussions regarding the Company's future product and business plans, financial results, performance and events are forward-looking statements and are based on current expectations. Actual results may differ materially due to a number of risks and uncertainties. Current Developments -------------------- The Company continued to experience growth of its line of Stewart's brand soft drinks during the June 1996 quarter. During the second quarter of 1996, the Company also began selling Stewart's Diet Country Orange N' Cream, a line extension of the Stewart's brand and Stewart's Classic Key Lime, a Stewart's seasonal product. Also during the second quarter of 1996, the Company began selling ASPEN flavored waters, a new product line, in selected test markets. Liquidity and Capital Resources ------------------------------- At June 30, 1996, the Company's working capital was $3,625,101, an increase of $755,109, or 25%, from December 31, 1995. During the six-month period ending June 30, 1996, the Company generated $244,525 in cash from operations, purchased equipment aggregating approximately $39,000, and received approximately $135,000 from the exercise of stock options. This activity resulted in an increase in the Company's cash balance of approximately $336,000 to a June 30, 1996 balance of $912,184. The Company intends to continue utilizing cash from operations to meet its ongoing obligations. However, 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 June 30, 1996, the Company had net deferred income tax asset of approximately $900,000, consisting primarily of net operating loss carryforwards and other deferred reserves. As of June 30, 1996, the Company has net operating loss carryforwards of approximately $1,900,000 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. Page 8 Results of Operations --------------------- Comparison of the six-month periods ended June 30, 1996 and June 30, 1995 ------------------------------------------------------------------------- Revenue for the six-months ended June 30, 1996 was $8,932,544 versus revenue of $5,342,474 for the six-months ended June 30, 1995. This increase of $3,590,070, or 67%, was primarily due to increased sales of Stewart's brand products Cost of goods sold increased by $2,586,511 for the comparative six-months ended June 30, 1996 and June 30, 1995. As a percentage of sales, cost of goods sold decreased to 72.4% for the six-months ended June 30, 1996 from 72.6% for the six-months ended June 30, 1995. This decrease is primarily due to an increased selling price on Stewart's brand products which was partially offset by increased cost of materials. General and administrative expenses increased by $152,466 for the six-months ended June 30, 1996 compared to the six-months ended June 30, 1995. General and administrative costs decreased as a percentage of sales to 5.8% from 6.8% for the six-months ended June 30, 1996 and 1995, respectively. This decline is the result of many administrative costs remaining constant relative to sales. Selling expense increased $396,805 for the comparative six-months ended June 30, 1996 from June 30, 1995, primarily due to increased promotional spending on the Stewart's brand products. As a percentage of sales, selling expense was constant. Pre-tax income increased $435,329, or 87.8% to $965,824 for the six-months ended June 30, 1996 compared with $530,495 for the six-months ended June 30, 1995. This increase is due primarily from increased Stewart's brand sales. Net income increased by $178,624, or 42.1%, to $603,407 for the six-months ended June 30, 1996 form $424,783 for the six-months ended June 30, 1995. The growth rate in net income differed from the growth rate in pre-tax income for the comparative six-months ended June 30, 1996 and 1995 which was the result of a higher effective tax rate used to record the provision for income taxes in 1996. The Company recorded its provision for income taxes at a 38% effective income tax rate compared to 20% for the six-months ended June 30, 1996 and 1995, respectively. Comparison of the three-month periods ended June 30, 1996 and June 30, 1995 --------------------------------------------------------------------------- Revenue for the three-months ended June 30, 1996 was $5,249,735 versus revenue of $3,453,111 for the three-months ended June 30, 1995. This increase of $1,796,624, or 52%, was primarily due to increases sales of Stewart's brand products Cost of goods sold increased by $1,270,923 for the comparative three- months ended June 30, 1996 and June 30, 1995. As a percentage of sales, cost of goods sold decreased to 71.8% for the three-months ended June 30, 1996 from 72.3% for the three-months ended June 30, 1995. This Page 9 decrease is primarily due to an increased selling price on Stewart's brand products which was partially offset by increased cost of materials. General and administrative expenses increased by $52,240 for the three- months ended June 30, 1996 compared to the three-months ended June 30, 1995. General and administrative costs decreased as a percentage of sales to 5.2% from 6.4% for the three-months ended June 30, 1996 and 1995, respectively. This decline is the result of many administrative costs remaining constant relative to sales. Selling expense increased $184,944 for the comparative three-months ended June 30, 1996 from June 30, 1995 primarily due to increased promotional spending on the Stewart's brand products. As a percentage of sales, selling expense was constant. Pre-tax income increased $278,193, or 73.1% to $675,506 for the three- months ended June 30, 1996 compared with $397,313 for the three-months ended June 30, 1995. This increase is due primarily from increased Stewart's brand sales. Net income increased by $108,050, or 33.6%, to $430,051 for the three- months ended June 30, 1996 form $322,001 for the three-months ended June 30, 1995. The growth rate in net income differed from the growth rate in pre-tax income for the comparative three-months ended June 30, 1996 and 1995 which was the result of a higher effective tax rate used to record the provision for income taxes in 1996. The Company recorded its provision for income taxes at a 36% effective income tax rate compared to 19% for the three-months ended June 30, 1996 and 1995, respectively. PART II - OTHER INFORMATION Item 6. Exhibits and Reports on Form 8-K (a) Exhibits 3 (i) Certificate of Incorporation* 3 (ii) Certificate of Amendment (Changing Name)** 3 (iii) By-Laws* 27 Financial Data Schedule * Incorporated by reference to Form 10-K dated 10/09/87 ** Incorporated by reference to Form S-1 filed 09/25/89 (SEC #33-30480) (b) Reports on Form 8-K No reports on Form 8-K were filed with the Commission for the quarter ended June 30, 1996. Page 10 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. CABLE CAR BEVERAGE CORPORATION (registrant) Date: August 09, 1996 By: /s/Samuel M. Simpson ------------------------------ Samuel M. Simpson President /s/Myron D. Stadler ------------------------------- Myron D. Stadler Chief Accounting Officer Page 11 EX-27 2
5 6-MOS DEC-31-1996 JUN-30-1996 912,184 99,185 1,964,666 77,281 2,353,861 5,590,521 254,838 121,235 7,106,246 1,965,420 0 8,905,015 0 0 0 7,106,246 5,249,735 5,249,735 3,766,940 4,583,775 0 0 83 675,506 245,455 0 0 0 0 430,051 .05 .05
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