SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
Quarterly report pursuant to Section 13 or 15 (d) of the
Securities Exchange Act of 1934.
For the quarterly period ended March 31, 2000.
Commission file number 0-7107
Southern Scottish Inns, Inc.
LOUISIANA 72-0711739
(State or other jurisdiction of (IRS Employer
(Incorporation or organization) Identification No.)
1726 Montreal Circle, Tucker, Georgia 30084
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code 770-938-5966
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 be subject to such filing requirements
for the past 90 days.
Yes X No
Indicate the number of shares outstanding of each of the issuer's
classes of common stock, as of the latest practicable date.
Date Class Outstanding
December 31, 1999 Common Stock 2,365,284 Shares
SOUTHERN SCOTTISH INNS, INC. & SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
ASSETS
March 31 December 31
2000 1999
(unaudited) (audited)
CURRENT ASSETS:
Cash $ 27,970.88 $ 75,253
Accounts Receivable - Net 1,235,591.46 1,124,962
Accounts Receivable - Affiliates568,988.12 580,403
Income Tax Receivable 9,310.00 9,310
Mortgages & Notes - Affiliates 186,119.12 121,240
Mortgages & Notes Receivable 539,743.97 688,072
Inventory 40,535.99 40,819
Prepaid Expenses 46,051.54 50,098
Loans - Employees 5,923.94 213
Interest Receivable 475,005.12 464,505
Deferred Tax Asset 7,447.00 7,447
Total Current Assets: $ 3,144,687.14 $ 3,162,322
PROPERTY, PLANT & EQUIPMENT:
Land $ 1,515,117.93 $ 1,515,118
Buildings & Building
Improvements 2,108,289.69 2,149,732
Furn. Fixtures & Equip. 568,195.40 561,128
Leasehold Improvements 44,346.44 331
Total Prop. & Equipment: 4,235,949.46 4,226,309
Less: Accum. Depreciation (1,158,854.52) (1,123,004)
Total Prop. & Equip.(net):$ 3,077,094.94 $ 3,103,305
OTHER ASSETS:
Mortg. & Notes Receivable $ 5,199,923.71 $ 5,030,468
Mortg. & Notes - Affiliates 873,896.72 1,116,802
Investments in
Unconsolidated Affiliates 305,521.73 119,832
Investments in Affiliates 119,896.05 188,896
Investments in Real Estate 211,908.67 235,752
Trademarks - Net 1,295,688 1,295,688
Organizational Costs 9,539.68 9,540
Deposits 4,497.64 4,498
Deferred Tax Asset 3,625.50 0
Marketable Equity Securities 26,676.00 26,676
Total Other Assets: $ 8,051,173.70 $ 8,038,152
TOTAL ASSETS: $ 14,272,955.78 $ 14,303,779
SOUTHERN SCOTTISH INNS, INC. & SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
LIABILITIES AND STOCKHOLDER'S EQUITY
March 31 December 31
2000 1999
CURRENT LIABILITIES:
Accounts Payable - Trade $ 127,477.03 $ 106,097
Interest Payable 172,309.53 174,668
Taxes Payable 107,762.11 179,260
Other Taxes Payable 183,215.61 189,683
Other Liabilities 472,516.89 546,982
Mortgages & Notes Payable 600,570.00 482,843
Mortgages & Notes Payable
- Affiliates 154,019.22 118,327
Deferred Severance Pay 12,000.00 12,000
Total Current Liabilities:$ 1,829,870.39 $ 1,809,860
LONG TERM LIABILITIES
Mortgages & Notes Payable $ 1,231,841.18 $ 1,308,603
Mortgages & Notes Payable
- Affiliates 174,680.13 357,178
Escrow - Advance
Construction Draw 16,729.90 15,000
Total Long Term Liabilities 1,423,251.21 1,680,781
DEFERRED AMOUNTS
Deferred Income - Installment$ 1,511,361.00 $ 1,511,361
Deferred Income Taxes 187,917.00 101,839
Deferred Severance Pay 143,750.00 143,750
Total Deferred Amounts: $ 1,843,028.00 $ 1,756,950
Total Liabilities &
Deferred Amounts: $ 5,096,149.60 $ 5,247,591
Minority Interest 823,003.97 823,004
STOCKHOLDER'S EQUITY:
Common Stock-No Par Value Auth.
5,000,000 Sh. Issued &
Outstanding 2,349,729 $ 6,023,315.00 $ 6,023,315
Paid-In Capital 42,201.00 42,201
Retained Earnings 2,167,668.00 2,167,668
Current Year's Income 120,618.21
Total Stockholder's Equity 8,353,802.21 8,233,284
TOTAL LIABILITIES &
STOCKHOLDER'S EQUITY: $14,272,955.78 $14,303,779
SOUTHERN SCOTTISH INNS, INC. & SUBSIDIARIES
CONSOLIDATED STATEMENT OF INCOME
(UNAUDITED)
FOR THE
THREE MONTHS ENDED
March 31
December 31
2000 1999
(Audited)
REVENUES:
Franchising Revenues $ 442,901.41 $ 1,833,472
Financing Revenues 115,329.67 620,325
Sale of Furniture 0 439
Operating Lease Income 110,860.84 507,064
Gain on Sale of Assets 43,922.87 134,096
Investment Income 1,100.00 0
Legal Settlement Income 48,875.24 62,356
Other Income 8833.36 374,697
Total Revenues: $ 771,823.39 $ 3,532,449
COSTS AND EXPENSES:
Operating Expense
- Franchise Division $ 474,558.06 $ 1,595,417
Operating Expense
- Financing & Investing 103,853.15 1,024,330
Cost of Sales - Furniture 0 4,174
Interest Expense 51,973.78 256,347
Depreciation & Amortization 16,440.64 238,590
Investment Loss 0 165,044
Total Costs & Expenses $ 646,825.63 $ 3,283,902
Income (Loss) from
Continuing Operations Before
Taxes & Extraordinary Items 124,997.76 248,547
Less: Provisions for-Inc. Taxes (2,693.12) (171,439)
Income (Loss) before
Minority Interest 122,304.64 131,108
Less: Minority Interest- Inc.
(Loss) of Cons. Subsidiaries (1686.43) (25,877)
NET INCOME (LOSS): $ 120,618.21 $ 105,231
NOTE TO FORM 10 Q
A summary of the registrant's significant accounting policies is set forth
in Note 1 to the consolidated financial statements of the registrant and
its subsidiaries in the registrant's Annual Report on Form 10-K for the
fiscal year ended December 31, 1997, filed with the Securities and Exchange
Commission, which report should be read in conjunction with this interim
report.
In the opinion of management, the accompanying interim financial statements
reflect all adjustments which are necessary to a fair statement of the
results for the interim periods presented.
Item 6. Exhibits and Reports on Form 8-K.
No exhibits are required to be furnished in accordance with 17 C.F.R.
Section 229.601.
SIGNATURES
(Originals on File)
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.
SOUTHERN SCOTTISH INNS, INC.
Date: April 13, 2000 By:
Jack M. Dubard, President
(Chief Financial Officer)
Date: April 13, 2000 By:
Mary R. Dubard, Corp.
Secretary