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 September 30, 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
September 30 December 31
2000 1999
(unaudited) (audited)
CURRENT ASSETS:
Cash
$ 89,920 $ 75,253
Accounts Receivable - Net 1,275,550
1,124,962
Accounts Receivable - Affiliates 669,826
580,403
Income Tax Receivable
9,310 9,310
Mortgages & Notes - Affiliates 124,446
121,240
Mortgages & Notes Receivable 616,929
688,072
Inventory
40,819 40,819
Prepaid Expenses
49,360 50,098
Loans - Employees
.00 213
Interest Receivable
546,915 464,505
Deferred Tax Asset
7,448 7,447
Total Current Assets: $ 3,430,523
$ 3,162,322
PROPERTY, PLANT & EQUIPMENT:
Land
$ 1,660,306 $ 1,515,118
Buildings & Building Improvements 2,679,155
2,149,732
Furn. Fixtures & Equip.
625,680 561,128
Leasehold Improvements
44,448 331
Total Prop. & Equipment: 5,009,589
4,226,309
Less: Accum. Depreciation (1,257,500)
(1,123,004)
Total Prop. & Equip. (net): $ 3,752,089
$ 3,103,305
OTHER ASSETS:
Mortg. & Notes Receivable $ 4,606,013
$ 5,030,468
Mortg. & Notes - Affiliates
573,947 1,116,802
Investments in Unconsolidated Affiliates 199,832
199,832
Investments in Affiliates
125,432 118,896
Investments in Real Estate
235,752 235,752
Trademarks - Net
1,279,878 1,295,688
Organizational Costs
9,640 9,540
Deposits
4,498 4,498
Marketable Equity Securities
26,676 26,676
Total Other Assets: $
7,061,668 $ 8,038,152
TOTAL ASSETS: $ 14,244,280
$ 14,303,779
SOUTHERN SCOTTISH INNS, INC. & SUBSIDARIES
CONSOLIDATED BALANCE SHEETS
LIABILITIES AND STOCKHOLDER'S EQUITY
September 30 December 31
2000 1999
CURRENT LIABILITIES:
Accounts Payable - Trade $
198,666 $ 106,097
Interest Payable
197,798 174,668
Taxes Payable
144,858 179,260
Other Taxes Payable
204,878 189,683
Other Liabilities
232,090 546,982
Mortgages & Notes Payable
445,536 482,843
Mortgages & Notes Payable - Affiliates 196,219
118,327
Current Deferred Tax Liabilities
0 0
Deferred Severance Pay
12,000 12,000
Total Current Liabilities: $
1,632,045 $ 1,809,860
LONG TERM LIABILITIES
Mortgages & Notes Payable $ 1,150,557
$ 1,308,603
Mortgages & Notes Payable - Affiliates 262,904
357,178
Escrow - Advance Construction Draw 18,543
15,000
Total Long Term Liabilities, 432,004
1,680,781
DEFERRED AMOUNTS
Deferred Income - Installment $ 1,511,361
$ 1,511,361
Deferred Income Taxes
238,134 101,839
Deferred Severance Pay
143,750 143,750
Total Deferred Amounts: $ 1,893,245
$ 1,756,950
Total Liabilities &
Deferred Amounts: $
4,957,294 $ 5,247,591
Minority Interest
838,884 823,004
STOCKHOLDER'S EQUITY:
Common Stock-No Par Value Auth.
5,000,000 Sh. Issued &
Outstanding 2,365,284 $
6,023,315 $ 6,023,315
Paid-In Capital
42,201 42,201
Retained Earnings
2,167,668 2,167,668
Current Year's Income
214,918
Total Stockholder's Equity 8,448,102
8,233,284
TOTAL LIABILITIES &
STOCKHOLDER'S EQUITY: $14,244,280
$14,303,779
SOUTHERN SCOTTISH INNS, INC. & SUBSIDIARIES
CONSOLIDATED STATEMENT OF INCOME
(UNAUDITED)
FOR THE
NINE
MONTHS ENDED
September 30 December 31
2000 1999
(Unaudited) (Audited)
REVENUES:
Franchising Revenues
$1,492,538 $ 1,833,472
Financing Revenues
408,014 620,325
Sale of Furniture
0 439
Operating Lease Income
336,062 507,064
Gain on Sale of Assets
29,322 134,096
Legal Settlement Income
78,175 62,356
Other Income
39,349 374,697
Total Revenues:
$2,383,460 $ 3,532,449
COSTS AND EXPENSES:
Operating Expense - Franchise Division $ 1,353,073
$ 1,595,417
Operating Expense - Financing & Investing 400,986
1,024,330
Cost of Sales - Furniture
0 4,174
Interest Expense
139,935 256,347
Depreciation & Amortization 134,496
238,590
Investment Loss
0 165,044
Loss on Sale of Property
0 0
Total Costs & Expenses $ 2,028,490
$ 3,283,902
Income (Loss) from Continuing Operations
Before Taxes & Extraordinary Items 354,970
248,547
Less: Provisions for Income Taxes (124,172)
(117,439)
Income (Loss) before Minority Interest 230,798
131,108
Less: Minority Interest Income (Loss) of
Consolidated Subsidiaries
(15,880) (25,877)
NET INCOME (LOSS): $ 214,918
$ 105,231
SOUTHERN SCOTTISH INNS, INC.
CONSOLIDATED STATEMENT OF INCOME (CONTINUED)
(Unaudited)
Nine Months
Ending
INCOME (LOSS) PER SHARE 9-30-00
1999
Income (Loss) per Share from Operations
before Taxes and Minority Interest $ .15
$ .11
Income (Loss) per share before Minority
Interest $
.10 $ .06
Basic Net Income (Loss) per Common
Share $
.09 $ .04
Average Shares Outstanding 2,365,284
2,365,284
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, 1999, 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 7. 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
causedthis report to be signed on its behalf by the undersigned hereunto
duly authorized.
SOUTHERN
SCOTTISH INNS, INC.
Date: October 31, 2000
By:
Jack M. Dubard, President
(Chief Financial Officer)
Date: October 31, 2000
By:
Mary R. Dubard, Corp.
Secretary