-----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, jBX/WJM96PN1ml4HcFhzkJjLyHT7w3xec3BK+eTXlTNGCTDQdFR1LW5GtnLsHnI6 xfNWR7Iu0bsQG0p4FEf4tg== 0000095302-94-000006.txt : 19941214 0000095302-94-000006.hdr.sgml : 19941214 ACCESSION NUMBER: 0000095302-94-000006 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19941029 FILED AS OF DATE: 19941213 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: SUN CITY INDUSTRIES INC CENTRAL INDEX KEY: 0000095302 STANDARD INDUSTRIAL CLASSIFICATION: WHOLESALE-GROCERIES & RELATED PRODUCTS [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: 94564505 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 October 29, 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 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 nine-month period ended October 29, 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 October 29, 1994 January 29, 1994 CURRENT ASSETS: Cash and equivalents $ 534,150 $ 531,608 Accounts and trade notes receivable, less allowance for doubtful accounts - $265,440 and $178,800 respectively. 5,572,330 6,285,576 Inventories 2,303,617 2,345,759 Notes receivable - current portion 13,245 12,384 Prepaid expenses 461,768 367,771 Investment in joint ventures 961,840 670,000 Total Current Assets 9,846,950 10,213,098 Property, Plant and Equipment: Land and improvements 159,058 150,072 Buildings and improvements 1,022,685 880,495 Machinery and equipment 5,174,368 4,082,595 6,356,111 5,113,612 Less accumulated depreciation 3,667,377 3,228,898 2,688,734 1,884,264 Properties Held for Sale 409,590 470,000 Long-Term Notes Receivable 124,249 134,292 Excess of Purchase Price Over Fair Market Value of Net Assets 426,694 450,053 Other Assets 1,069,792 859,537 Total $14,566,009 $14,011,244 LIABILITIES AND STOCKHOLDERS' EQUITY October 29, 1994 January 29, 1194 CURRENT LIABILITIES: Accounts payable $ 2,372,040 $4,118,900 Accrued expenses 1,919,266 507,714 Current portion of long-term debt 563,389 551,667 Income taxes payable 10,790 16,000 Total Current Liabilities 4,865,485 5,194,281 Deferred Compensation Payable 415,560 329,760 Long-Term Debt 5,881,766 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 1,074,185 1,070,286 Retained earnings 5,111,396 4,852,290 6,413,193 6,150,188 Less, Treasury Stock at cost 838,164 and 840,414 shares respectively. (2,691,995) (2,692,220) Loan Receivable for Common Stock sold to ESOP (318,000) (371,000) 3,403,198 3,086,968 TOTAL $ 14,566,009 $14,011,244 /TABLE SUN CITY INDUSTRIES, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS
Nine Months Ended Three Months Ended October 29, Ocotber 30, October 29, October 30, 1994 1993 1994 1993 Sales $51,763,884 $47,424,555 $16,743,302 $15,566,845 Costs and Expenses Costs of sales 47,407,470 44,257,085 15,266,044 14,534,327 Selling, general and administrative expenses 3,652,838 2,738,027 1,224,895 899,672 Interest expense 457,926 300,558 171,132 103,742 Other (income), net (24,246) (41,307) ( 8,486) (11,931) Total Costs and Expenses 51,493,988 47,254,363 16,653,585 15,525,810 Earnings From Operations Before Income Taxes $ 269,896 $ 170,192 $ 89,717 $ 41,035 Provision For Income Taxes (10,790) (15,000) (3,500) (1,000) Net Earnings $ 259,106 $ 155,192 $ 86,217 $ 40,035 Earnings Per Common And Common Equivalent Share $ .17 $ .11 $ .06 $ .03 Earnings Per Common Share Assuming Full Dilution $ .17 $ .10 $ .06 $ .03
SUN CITY INDUSTRIES, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS Nine Months Ended October 29, October 30, 1994 1993 CASH FLOWS FROM OPERATING ACTIVITIES: Net Earnings $ 259,106 $ 155,192 ADJUSTMENTS TO RECONCILE NET EARNINGS TO NET CASH (USED IN) OR PROVIDED BY OPERATING ACTIVITIES: Depreciation 371,679 321,028 Amortization of excess of purchase price over fair market value of net assets acquired 23,359 6,300 Provision (Recovery) for losses on accounts Receivable 86,646 (30,800) CHANGE IN ASSETS AND LIABILITIES: Decrease (increase) in accounts and trade notes receivables 635,782 (663,625) Decrease (increase) in inventory 42,142 (191,276) (Increase) in prepaid expenses ( 93,997) (238,872) (Increase) in investment in joint ventures (291,840) (389,000) (Increase) in other assets (210,255) (159,670) (Decrease) in accounts payable (1,746,860) (80,040) Increase in accrued expenses 1,411,552 163,271 (Decrease) in income taxes payable (5,210) (25,412) Increase in deferred compensation payable 85,800 90,002 TOTAL ADJUSTMENTS 308,798 (1,198,094) NET CASH PROVIDED BY OR (USED IN) OPERATING ACTIVITIES $ 567,904 $(1,042,902) SUN CITY INDUSTRIES, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (Continued) Nine Months Ended October 29, October 30, 1994 1993 NET CASH PROVIDED BY OR (USED IN) OPERATING ACTIVITIES $ 567,904 $(1,042,902) CASH FLOW FROM INVESTING ACTIVITIES: Capital expenditures (1,115,739) (311,493) NET CASH (USED IN) INVESTING ACTIVITIES: (1,115,739) (311,493) CASH FLOWS FROM FINANCING ACTIVITIES: Principal payments on Long-term Debt (914,490) (674,077) Proceeds from Long-term Debt 1,407,744 1,719,282 Proceeds from loan to ESOP 53,000 53,000 Proceeds from excercise of options 3,899 - Proceeds from sale of Treasury Stock 224 - NET CASH (USED IN) OR PROVIDED BY FINANCING ACTIVITIES 550,377 1,217,003 NET INCREASE (DECREASE) IN CASH AND EQUIVALENTS 2,542 (137,392) CASH AND EQUIVALENTS, Beginning of year 531,608 616,524 CASH AND EQUIVALENTS, End of Year $ 534,150 $ 479,132 SUN CITY INDUSTRIES, INC. AND SUBSIDIARIES RESULTS OF OPERATIONS During the nine months ended October 29, 1994, sales revenues increased $4.3 million or 9.1% to $51,763,884 versus $47,424,555 reported for the same period a year ago. Sales rose $7.8 million or 33.1% in the foodservice division, while sales in the egg division decreased $3.4 million or 14.4%. The decrease in egg division sales results primarily from a 8.2% reduction in egg market prices. %Increase Sales By Division 1994 1993 (Decrease) Foodservice Division $31,279,817 $23,502,838 33.1% Egg Division 20,281,120 23,689,162 (14.4%) Other 202,947 232,555 (12.7%) ----------- ----------- --------- $51,763,884 $47,424,555 9.1% =========== =========== ========= Earnings for the nine months jumped 67.0% to $259,106 or $.17 a share versus $155,192 or $.11 a share for the nine month period reported a year ago. The Company's third quarter was highlighted by a 115.4% improvement in earnings and a 7.6% increase in sales. Net earnings amounted to $86,217 or $.06 a share compared to $40,035 or $.03 a share reported for the like quarter a year earlier. Leading the dramatic improvement was our growing Foodservice Division, whose sales increased 33.1% and 24.2% for the year to date and third quarter respectively. Overall, profit from operations grew 54.6% to $727,822 up from $470,750 for the nine months and 80.6% to $261,529 from $144,777 for the third quarter. This increase more than offset a jump in interest expense of $157,368 and $68,070 for the corresponding periods, resulting in the improved net earnings increase of 67.0% or $103,914 for the nine months and 115.4% or $46,182 for the third quarter. 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. 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: 12/14/94 ____________________________ Malvin Avchen, C.E.O. DATE: 12/14/94 ____________________________ Syed Jafri, Treasurer The financial statements for the nine months ended October 29, 1994 and October 30, 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. EX-27 2 ART. 5 FDS FOR 3RD QUARTER 10-Q
5 THE SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM SUN CITY INDUSTRIES, INC. FINANCIAL STATEMENTS F.P.E 10-29-94 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS. 9-MOS JAN-28-1995 OCT-29-1994 534,150 0 5,851,021 265,446 2,303,617 9,846,950 6,356,111 3,667,377 14,566,009 4,865,485 5,311,719 227,612 0 0 3,175,586 14,566,009 51,763,884 51,763,884 47,407,470 51,493,988 4,086,518 86,646 457,926 269,896 10,790 259,106 0 0 0 259,106 .17 .17
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