-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: keymaster@town.hall.org Originator-Key-Asymmetric: MFkwCgYEVQgBAQICAgADSwAwSAJBALeWW4xDV4i7+b6+UyPn5RtObb1cJ7VkACDq pKb9/DClgTKIm08lCfoilvi9Wl4SODbR1+1waHhiGmeZO8OdgLUCAwEAAQ== MIC-Info: RSA-MD5,RSA, Gu4l48+guKkDquzNbx8Bkmgn2s6/jXeV/l6C8LWVJYL242rsooyrsHHOn3czzn6M Z7WjOIrYmTbHvETJQFi4Lw== 0000095302-94-000004.txt : 19940914 0000095302-94-000004.hdr.sgml : 19940914 ACCESSION NUMBER: 0000095302-94-000004 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19940730 FILED AS OF DATE: 19940913 FILER: COMPANY DATA: COMPANY CONFORMED NAME: SUN CITY INDUSTRIES INC CENTRAL INDEX KEY: 0000095302 STANDARD INDUSTRIAL CLASSIFICATION: 5140 IRS NUMBER: 590950777 STATE OF INCORPORATION: DE FISCAL YEAR END: 0131 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 001-06914 FILM NUMBER: 94548855 BUSINESS ADDRESS: STREET 1: 5545 NW 35TH AVE STREET 2: D O BOX 8848 CITY: FORT LAUDERDALE STATE: FL ZIP: 33309 BUSINESS PHONE: 3057303333 FORMER COMPANY: FORMER CONFORMED NAME: SUN CITY DAIRY PRODUCTS INC DATE OF NAME CHANGE: 19690727 10-Q 1 SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q QUARTERLY REPORT UNDER SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 For Quarter July 30, 1994 Commission File no. 1-6914 SUN CITY INDUSTRIES, INC. (Exact name of registrant as specified in its charter) Delaware 59-0950777 (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) 5545 N.W. 35 Ave. Fort Lauderdale, FL 33309 (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code (305) 730-3333 Same Name; Former Address-8600 Doral Blvd., #304, Miami, FL 33166 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_____ FINANCIAL INFORMATION The consolidated financial statements included herein have been prepared by the Company, without audit, according to the rules and regulations of the Securities and Exchange Commission. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been omitted pursuant to such rules and regulations. The financial statements reflect, in the opinion of management, all adjustments (which include only normal recurring adjustments) necessary to present fairly the financial position and results of operations as of and for the periods indicated. The statements should be read in conjunction with the financial statements and the notes thereto included in the Company's Annual Report on Form 10-K for the year ended January 29, 1994. The results of operations for the six-month period ended July 30, 1994, are not necessarily indicative of results to be expected for the entire year ending January 28, 1995. SUN CITY INDUSTRIES, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS
ASSETS July 30, 1994 January 29,1994 CURRENT ASSETS: Cash and equivalents $ 550,981 $ 531,608 Accounts and trade notes receivable, less allowance for doubtful accounts-$195,000 and $178,800, respectively 4,685,680 6,285,576 Inventories 2,059,116 2,345,759 Notes receivable - current portion 12,951 12,384 Prepaid expenses 485,768 367,771 Investment in joint ventures 864,000 670,000 Total Current Assets 8,658,496 10,213,098 Property, Plant and Equipment: Land and improvements 159,058 150,072 Buildings and improvements 950,405 880,495 Machinery and equipment 4,268,768 4,082,595 5,378,231 5,113,162 Less accumulated depreciation 3,459,035 3,228,898 1,919,196 1,884,264 Properties held for sale 415,740 470,000 Long Term Notes Receivable 127,672 134,292 Excess of Purchase Price Over Fair Market Value of Net Assets 434,987 450,053 Other Assets 1,246,337 859,537 Total $12,802,428 $14,011,244 LIABILITIES AND STOCKHOLDERS' EQUITY July 30, 1994 January 29, 1994 CURRENT LIABILITIES: Accounts payable $ 2,140,029 $4,118,900 Accrued expenses 1,074,581 507,714 Current portion of long-term debt 568,992 551,667 Income Taxes Payable 7,290 16,000 Total Current Liabilities 3,790,892 5,194,281 Deferred Compensation Payable 386,960 329,760 Long-Term Debt 5,311,719 5,400,235 Stockholders' Equity: Preferred stock, no par value; authorized 300,000 shares; issued - none Common stock, $.10 par value; 3,000,000 shares authorized: 2,276,116 shares issued, respectively 227,612 227,612 Capital in excess of par value 1,070,286 1,070,286 Retained earnings 5,025,179 4,852,290 6,323,077 6,150,188 Less, Treasury Stock at cost 840,414 shares (2,692,220) (2,692,220) Loan Receivable for Common Stock sold to ESOP (318,000) (371,000) 3,312,857 3,086,968 TOTAL $12,802,428 $14,011,244
SUN CITY INDUSTRIES, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS
Six Months Ended Three Months Ended July 30, July 31, July 30, July 31, 1994 1993 1994 1993 Sales $35,020,582 $31,857,710 $15,349,194 $14,532,293 Costs and Expenses Costs of sales 32,141,426 29,722,758 13,940,866 13,525,707 Selling, general and administrative expenses 2,427,943 1,838,355 1,173,205 856,243 Interest expense 286,794 196,816 152,337 101,510 Other (income), net (15,760) (29,376) ( 6,595) (16,551) Total Costs and Expenses 34,840,403 31,728,553 15,259,813 14,466,909 Earnings Before Income Taxes $ 180,179 $ 129,157 $ 89,381 $ 65,384 Provision For Income Taxes 7,290 14,000 3,140 7,000 Net Earnings $ 172,889 $ 115,157 $ 86,241 $ 58,384 Earnings Per Common And Common Equivalent Share $ .12 $ .08 $ .06 $ .04 Earnings Per Common Share Assuming Full Dilution $ .11 $ .08 $ .06 $ .04
SUN CITY INDUSTRIES, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS
Six Months Ended July 30, July 31, 1994 1993 Cash Flows From Operating Activities: Net Earnings $ 172,889 $ 115,157 Adjustments To Reconcile Net Earnings To Net Cash Provided By Or (Used In) Operating Activities: Depreciation 240,137 210,486 Amortization of excess of purchase price over fair market value of net assets acquired 15,066 744 Provision for losses on accounts receivable 81,307 69,056 Change In Assets And Liabilities: Decrease (increase) in accounts and trade notes receivables 1,524,642 (239,924) Decrease (increase) in inventory 286,643 (90,605) (Increase) in prepaid expenses (117,997) (231,530) (Increase) in investment in joint ventures (194,000) (362,000) (Increase) in other assets (386,800) (46,531) (Decrease) in accounts payable (1,978,871) (463,301) Increase in accrued expenses 566,867 252,088 (Decrease) in income taxes payable ( 8,710) (26,412) Increase in deferred compensation payable 57,200 60,002 Total Adjustments 85,484 (867,927) Net Cash Provided By Or (Used In) Operating Activities $ 258,373 $(752,770)
SUN CITY INDUSTRIES, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (Continued)
Six Months Ended July 30, July 31, 1994 1993 Net Cash Provided By Or (Used In) Operating Activities $ 258,373 $(752,770) Cash Flow From Investing Activities: Capital expenditures (220,809) (145,125) Net Cash (Used In) Investing Activities: (220,809) (145,125) Cash Flows From Financing Activities: Principal payments on Long-term Debt (803,935) (529,777) Proceeds from Long-term Debt 732,744 1,229,400 Proceeds from loan to ESOP 53,000 53,000 Net Cash (Used In) Or Provided By Financing Activities (18,191) 752,623 Net Increase (decrease) In Cash And Equivalents 19,373 (145,272) Cash And Equivalents, Beginning of year 531,608 616,524 Cash And Equivalents, End of Year $ 550,981 $ 471,252 Sun City Industries, Inc. and Subsidiaries RESULTS OF OPERATIONS During the six months ended July 30, 1994 sales revenues increased $3.2 million or 9.9% to $35,020,582 versus $31,857,710 reported for the like period a year ago. Sales rose $5,846,754, an increase of 37.7% in the foodservice division, while sales in the egg division decreased $2,638,475 or 16.3% to $ 13,519,237. The decrease in egg division sales results primarily from a 9.1% reduction in egg market prices. %Increase Division Sales 1994 1993 (Decrease) Foodservice $21,361,007 $15,514,253 37.7% Eggs 13,519,237 16,157,712 (16.3%) Other 140,338 185,745 (24.4%) ----------- ----------- --------- $35,020,582 $31,857,710 9.9% =========== =========== ========= Sun City's six months earnings jumped 50.1% to $172,889 or $.12 per share versus $115,157 or $.08 per share for the six month period a year ago. Earnings for the second quarter improved 47.7% to $86,241 or $.06 per share compared to $58,384 or $.04 per share reported for the same quarter last year. The company's solid second quarter was led by a sharp improvement in the egg division's operating profits as compared to a relatively weaker first quarter. The foodservice division also continued its significant improvement in its operating results. Overall, profit from operations jumped 43% to $466,293, up $140,320 from a year earlier. To help fund the company's growth, borrowings have increased over the prior year and when coupled with higher interest rates, interest expense rose from $196,816 to $286,114 for the first half of the fiscal year. OTHER DISCLOSURES: INCOME TAXES Effective February 1, 1993, the Company adopted Statement of Financial Accounting Standards No. 109 (SFAS109) "Accounting for Income Taxes" which supersedes Statement of Financial Accounting Standards No. 96 "Accounting for Income Taxes". Statement No. 109 requires the recognition of deferred tax assets and liabilities based on differences between financial reporting and tax bases of assets and liabilities measured using enacted tax rates and laws that will be in effect when the differences are expected to reverse. The adoption of Statement No. 109 had no impact on the Company's financial statements. SALES OF UNREGISTERED SECURITIES (DEBT OR EQUITY) On March 18,1994 the Company completed a private placement offering by raising $700,000 in five year Senior Subordinated Convertible Debentures carrying a fixed rate of 8%. The debentures are convertible in common stock at $3.25 per share. <\CAPTIONS> THE SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM SUN CITY INDUSTRIES, INC. FINANCIAL STATEMENTS F.P.E 07-30-94 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS. Item Number Item Description 5-02(1) Cash and cash items 550,981 5-02(2) Marketable securities -0- 5-02(3)(a)(1) Notes and accounts receivable-trade 4,893,631 5-02(4) Allowances for doubtful accounts 195,000 5-02(6) Inventory 2,059,116 5-02(9) Total current assets 8,658,496 5-02(13) Property, plant and equipment 5,378,231 5-02(14) Accumulated depreciation 3,459,035 5-02(18) Total asset 12,802,428 5-02(21) Total current liabilities 3,790,892 5-02(22) Bonds, mortgages and similar debt 5,311,790 5-02(28) Preferred stock mandatory redemption -0- 5-02(29) Preferred stock-no mandatory redemption -0- 5-02(30) Common stock 227,612 5-02(31) Other stockholders' equity 3,085,245 5-02(32) Total liabilities and stockholders' equity 12,802,428 5-02(b)1(a) Net sales of tangible products 35,020,582 5-03(b)1 Total revenues 35,020,582 5-03(b)2(a) Cost of tangible goods sold 32,141,426 5-03(b)2 Total costs and expenses applicable to sales and revenue 34,840,403 5-03(b)3 Other costs and expenses 2,698,977 5-03(b)5 Provision for doubtful accounts and notes 81,307 5-03(b)(8) Interest and amortization of debt discount 286,794 5-03(b)(10) Income before taxes and other items 180,179 5-03(b)(11) Income tax expense 7,290 5-03(b)(14) Income/loss continuing operations 172,889 5-03(b)(15) Discontinued operations -0- 5-03(b)(17) Extraordinary items -0- 5-03(b)(18) Cumulative effect-changes in accounting principles -0- 5-03(b)(19) Net income or loss 172,889 5-03(b)(20) Earnings per share-primary .12 5-03(b)(20) Earnings per share-fully diluted .11 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 thereunto duly authorized. SUN CITY INDUSTRIES, INC. REGISTRANT DATE: Sept 13, 1994 Malvin Avchen Malvin Avchen, C.E.O. DATE: Sept 13, 1994 Syed Jafri Syed Jafri, Treasurer The financial statements for the six months ended July 30, 1994 and July 31, 1993, respectively, are unaudited but are prepared in conformity with accounting principles used at our last fiscal year end and include all adjustments which the Company considers necessary for a fair presentation.
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