-----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, Sa4RnL2ZQXfc4Ukl5ldr5zTnaLyOeqnRU+4c03US8JCDlR+Pin33MDaQV8fxlF4u EO9Iekxp/XFht6Zjar2m1g== 0000931763-98-000239.txt : 19980212 0000931763-98-000239.hdr.sgml : 19980212 ACCESSION NUMBER: 0000931763-98-000239 CONFORMED SUBMISSION TYPE: 10QSB PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19971231 FILED AS OF DATE: 19980211 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: SECURITY LAND & DEVELOPMENT CORP CENTRAL INDEX KEY: 0000088572 STANDARD INDUSTRIAL CLASSIFICATION: REAL ESTATE INVESTMENT TRUSTS [6798] IRS NUMBER: 581088232 STATE OF INCORPORATION: GA FISCAL YEAR END: 0930 FILING VALUES: FORM TYPE: 10QSB SEC ACT: SEC FILE NUMBER: 000-07865 FILM NUMBER: 98530415 BUSINESS ADDRESS: STREET 1: 512 B WHEELER EXECUTIVE CENTER CITY: AUGUSTA STATE: GA ZIP: 30909 BUSINESS PHONE: 7067366334 MAIL ADDRESS: STREET 1: 2816 WASHINGTON ROAD #103 CITY: AUGUSTA STATE: GA ZIP: 30909 10QSB 1 FORM 10QSB 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, 1997 [ ] Transition Report Pursuant to 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from to ------------------ ------------------------- Commission File Number 0-7865. ------ SECURITY LAND AND DEVELOPMENT CORPORATION ----------------------------------------- GEORGIA 58-1088232 - ------------------------------- ---------------------- (State or other Jurisdiction of (I.R.S. Employer Incorporation or Organization) Identification Number) 2816 Washington Road, #103, Augusta, Georgia 30909 - ---------------------------------------------- ---------------------- (Address of Principal Executive Offices) Zip Code Issuers Telephone Number (706) 736-6334 -------------- ------------------------------------------------------------------ (Former Name, Address & fiscal year, if changed from 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 ------ ------ State the number of shares outstanding of each of the issuer's classes of common equity, as of the latest practicable date. Class Outstanding at December 31, 1997 - ---------------------------- -------------------------------- Common Stock, $.10 Par Value 5,237,607 shares Transitional Small Business Disclosure Format: Yes No X ----- ----- PART I. FINANCIAL INFORMATION ITEM 1. FINANCIAL STATEMENTS The following condensed consolidated financial statements of Security Land and Development Corporation and Subsidiary are included herein: Page ---- CONDENSED CONSOLIDATED BALANCE SHEET AS OF DECEMBER 31, 1997 2 CONDENSED CONSOLIDATED STATEMENTS OF INCOME FOR THE THREE MONTHS ENDED DECEMBER 31, 1997 AND 1996 3 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE THREE MONTHS ENDED DECEMBER 31, 1997 AND 1996 4 NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS 5 SECURITY LAND AND DEVELOPMENT CORPORATION AND SUBSIDIARY CONDENSED CONSOLIDATED BALANCE SHEET (UNAUDITED) December 31, 1997
ASSETS CURRENT ASSETS Cash $ 83,537 Other current assets 1,339 ---------- TOTAL CURRENT ASSETS 84,876 ---------- INVESTMENTS AND OTHER ASSETS Land and improvements, at cost 909,135 Property leased to others under operating leases, less accumulated depreciation $885,245 5,095,291 ---------- 6,004,426 ---------- $6,089,302 ========== LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES Accounts payable $ 3,517 Current portion of long-term debt 101,766 Other current liabilities 56,030 ---------- TOTAL CURRENT LIABILITIES 161,313 ---------- LONG-TERM DEBT, LESS CURRENT MATURITIES 3,953,781 ---------- DEFERRED TAXES 35,522 ---------- DEFERRED INCOME 429,340 ---------- STOCKHOLDERS' EQUITY Common stock, at par value 623,761 Paid-in capital 333,766 Retained earnings 651,819 ---------- 1,609,346 Less subscribed shares 100,000 ---------- 1,509,346 ---------- $6,089,302 ==========
See notes to the condensed consolidated financial statements. 2 SECURITY LAND AND DEVELOPMENT CORPORATION AND SUBSIDIARY CONDENSED CONSOLIDATED STATEMENTS OF INCOME FOR THE THREE MONTHS ENDED DECEMBER 31, 1997 AND 1996 (UNAUDITED)
1997 1996 ---------- ---------- Revenues, rent earned $ 174,170 $ 195,421 --------- --------- Operating expenses: Payroll and related costs 10,633 8,511 Depreciation 33,526 34,313 Taxes 23,635 14,554 Professional services 3,042 3,450 Insurance 2,217 3,271 Commissions - 13,000 Other 11,610 9,287 --------- --------- 84,663 86,386 --------- --------- Operating income 89,507 109,035 --------- --------- Financial income (expense): Interest income 645 296 Interest (expense) ( 80,185) ( 82,202) --------- --------- ( 79,540) ( 81,906) --------- --------- Income before income taxes 9,967 27,129 Applicable income taxes 3,549 4,856 --------- --------- Net income $ 6,418 $ 22,273 ========= ========= Income per common share $ - $ - ========= =========
See notes to the condensed consolidated financial statements. 3 SECURITY LAND AND DEVELOPMENT CORPORATION AND SUBSIDIARY CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE THREE MONTHS ENDED DECEMBER 31, 1997 AND 1996 (UNAUDITED)
1997 1996 -------- -------- CASH FLOWS FROM OPERATING ACTIVITIES Cash received from leases $197,955 $217,328 Interest received 645 296 Cash paid to suppliers and employees (35,462) (95,203) Interest paid (80,185) (82,202) -------- -------- NET CASH PROVIDED BY OPERATING ACTIVITIES 82,953 40,219 -------- -------- CASH FLOWS FROM FINANCING ACTIVITIES Principal payments on long-term debt (26,214) (24,698) -------- -------- NET CASH (USED IN) FINANCING ACTIVITIES (26,214) (24,698) -------- -------- NET INCREASE IN CASH 56,739 15,521 CASH AT BEGINNING OF PERIOD 26,798 24,097 -------- -------- CASH AT END OF PERIOD $ 83,537 $ 39,618 ======== ======== RECONCILIATION OF NET INCOME TO NET CASH PROVIDED BY OPERATING ACTIVITIES: Net income $ 6,418 $ 22,273 Deferred income taxes 3,549 4,856 Adjustments to reconcile net income to net cash provided by operating activities Depreciation 33,526 34,313 Changes in assets and liabilities (Decrease) in other assets (3,694) (1,339) Increase in accounts payable, accrued expenses and deferrals 43,154 (19,884) -------- -------- NET CASH (USED IN) OPERATING ACTIVITIES $ 82,953 $ 40,219 ======== ========
See notes to the condensed consolidated financial statements. 4 SECURITY LAND AND DEVELOPMENT CORPORATION AND SUBSIDIARY NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The accompanying 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 or those normally made in the Company's annual Form 10-KSB filing. Accordingly, the reader of this Form 10-QSB may wish to refer to the Company's Form 10-KSB for the year ended September 30, 1997 for further information. The financial information has been prepared in accordance with the Company's customary accounting practices 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. NOTE 2 - INVESTMENT IN LEASES AND PROPERTY UNDER OPERATING LEASES Property leased or held for lease to others under operating leases consists of the following at December 31, 1997
Land $ 512,760 Warehouse and buildings 5,467,726 ---------- 5,980,486 Less accumulated depreciation 885,245 ----------
$5,095,291 ========== Refer to the Company's Form 10-KSB for the year ended September 30, 1997 for further information on operating lease agreements and terms. NOTE 3 - LONG-TERM DEBT Long-term debt consisted of the following at December 31, 1997: 7.875% note payable to an insurance company due in monthly payments of $35,633, including interest, through June 2015, collateralized by real estate and assignment of lease payments from the property. $4,055,547 ---------- Less current maturities 101,766 ---------- $3,953,781 ========== 5 ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION The Company's results of operations for the three month period ended December 31, 1997, and a comparative analysis of the same period for the 1997 year are presented below:
Increase (Decrease) 1997 Compared to 1996 ------------------ 1997 1996 Amount Percent -------- -------- -------- ------- Leasing revenue $174,170 $195,421 $(21,251) (10.8)% Operating expenses 84,663 86,386 (1,723) (1.9) Interest expense 80,185 81,906 (1,721) (2.1)
Revenue from leasing has decreased from 1996 primarily as a result of the following: a. During the quarter ended June 30, 1997, the Company sold leased property located in Augusta, Georgia, operated by the tenant as a restaurant. Leasing revenue from the property was approximately $11,000 per quarter. See Form 10-QSB for the quarter ended June 30, 1997 for details of the sale. b. A payment of additional common area maintenance fees received during the comparable 1996 quarter from several tenants at the retail strip center located on Washington Road in Augusta, Georgia. These additional payments were non-recurring and the Company did not expect to receive additional payments in the quarter ended December 31, 1997. On an annualized basis, current revenue from leasing has decreased from leasing revenue for the Company's fiscal year ended September 30, 1997. Refer to the Company's Form 10-KSB for the year ended September 30, 1997 for further information regarding the properties owned and lease terms. Operating expenses for the current quarter are comparable to 1996 and, on an annualized basis, are comparable to the Company's operating expenses for the fiscal year ended September 30, 1997. Management of the Company expects quarterly operating expenses for the remainder of the fiscal year to be comparable to the current quarter. Interest expense for the current quarter is comparable to 1996 and, on an annualized basis, is comparable to the Company's interest expense for the fiscal year ended September 30, 1997. The Company's ratio of current assets to current liabilities at December 31, 1997 was .50. The ratio was .32 at December 31, 1996. During the current quarter the Company satisfied liquidity needs through operating revenues. Management of the Company continues to expect future liquidity needs to be met from operating revenues of the Company. The Company does not expect any significant change in the number of employees. 6 PART II. OTHER INFORMATION ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K (a) Exhibits 27 Financial Data Schedule (b) The Company did not file any reports on Form 8-K during the three months ended December 31, 1997. 7 SIGNATURES In accordance with the requirements of the Exchange Act, the registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. SECURITY LAND & DEVELOPMENT CORPORATION --------------------------------------- (Registrant) February 10, 1998 By: /s/ T. Greenlee Flanagin ---------------------------- T. GREENLEE FLANAGIN President Chief Executive Officer 8 INDEX TO EXHIBITS ----------------- Exhibit Number Description Sequential Page Number 27 Financial Data Schedule 10 - 11 9 EX-27 2 FDS
5 3-MOS SEP-30-1998 OCT-01-1997 DEC-31-1997 83,537 0 1,339 0 0 84,876 6,889,671 885,245 6,089,302 161,313 3,953,781 623,761 0 0 651,819 1,509,346 0 174,170 0 0 84,663 0 80,185 9,967 3,187 6,418 0 0 0 6,418 0 0
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