U.S. SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-QSB
[X] QUARTERLY REPORT UNDER SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For Quarterly period ended September 30, 1995
[ ] TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE
EXCHANGE ACT
For the transition period from to
Commission File No. 0-3802
WESTERN STANDARD CORPORATION
----------------------------
(Exact Name of Registrant as Specified in its Charter)
WYOMING 83-0184378
- - ------- ----------
(State or other jurisdiction (IRS Employer
of incorporation or organization) Identification No.)
205 SOUTH BROADWAY, RIVERTON, WY 82501
- - -------------------------------- -----
(address of principal executive offices)
307-856-9288
------------
(Issuer's telephone number)
UNCHANGED
---------
(Former name, former address and former fiscal year, if changed
since 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
.
--- ---
APPLICABLE ONLY TO CORPORATE ISSUERS
State the number of shares outstanding of each of the issuer's classes of
common equity, as of the latest practicable date:
9,965,015 common $0.05 par at October 31, 1995.
-1-
PART 1, ITEM 1, 2 (1)(i)
FORM 10-QSB
WESTERN STANDARD CORPORATION
Consolidated Balance Sheet
Unaudited
September 30, 1995
Current Assets:
Cash $ 67,557.99
Accounts Receivable 489,741.85
Allowance for Doubtful Accounts ( 13,623.20)
Inventory - at cost 111,648.67
---------------
Total Current Assets $ 655,325.31
---------------
Property & Equipment, Net of
Accumulated Depreciation,
Amortization and Depletion $ 8,808,130.27
---------------
Other Assets:
* Accounts Receivable - Snow
King Resort Center, Inc. $ 916,491.76
Prepaid expenses 17,450.34
Prepaid loan fees 97,589.21
Investment in SKRCI 6,720.00
Leasehold Interest 40,292.70
Restricted Cash Reserves 2,142.62
Other 1,164.86
---------------
Total Other Assets $ 1,081,851.49
---------------
TOTAL ASSETS $ 10,545,307.07
---------------
---------------
The Registrant also owns 12,000 shares of Class B Common stock in Snow King
Resort, Inc. at Zero Basis.
* This account receivable is from a new business, approximately 49% owned by
Western Standard Corporation and operated by its subsidiary Snow King Resort,
Inc. This is not a short term receivable.
-2-
PART 1, ITEM 1, 2 (1)(i)
FORM 10-QSB
WESTERN STANDARD CORPORATION
Consolidated Balance Sheet
Unaudited
September 30, 1995
Liabilities:
Accounts Payable $ 469,794.60
Accounts Payable - Other 76,763.24
Portion of Long Term Debt
payable within one year 1,268,258.00
Advance Deposit 156,595.68
Accrued Expenses 403,549.61
---------------
Subtotal $ 2,374,961.13
Long Term Debt 5,072,412.43
Fee Payable - Officer 90,000.00
---------------
TOTAL LIABILITIES $ 5,162,412.43
---------------
Minority Interest in Subsidiary
2,150 shares of Class A stock
in SKRI $ 2,693,930.86
---------------
STOCKHOLDERS INVESTMENT:
Common Stock, $0.05 par
value, 10,000,000 shares
authorized, 9,965,015
issued and outstanding
at October 31, 1995 $ 401,201.02
Capital in Excess of Par
Value 3,334,801.45
Accumulated Deficit ( 3,421,999.82)
---------------
Net Stockholders
Investment $ 314,002.65
---------------
TOTAL LIABILITIES AND CAPITAL $ 10,545,307.07
---------------
---------------
-3-
PART 1, ITEM 1, 2 (1)(ii)
FORM 10-QSB
WESTERN STANDARD CORPORATION
Consolidated Statement of Operations
Unaudited
Profit and Loss Information
For the Nine (9) Months Ended
Sep. 30, 1995 Sep. 30, 1994
-------------- --------------
1. Gross sales less discounts, returns
and allowances $ 8,212,077.71 $ 7,135,384.23
2. Operating Revenues 2,828.69 1,343.64
3. Total of Captions 1 and 2 8,214,906.40 7,136,727.87
4. Costs and Expenses
(a) Operating Expenses 6,754,620.14 5,710,344.60
(b) Interest Expense 470,115.64 403,638.92
(c) Depreciation 445,115.93 380,605.38
Total Costs and Expenses 7,669,851.71 6,494,588.90
5. Income (Loss) before taxes on income
& extraordinary items 545,054.69 642,138.97
6. Discontinued Operations -0- -0-
7. Provisions for taxes on income 185,319.00 218,327.00
8. Income or (Loss) 359,735.69 423,811.97
9. Minority interest in profit (loss) of
subsidiary 130,533.94 217,878.43
10. Income (Loss) before extraordinary
items 229,201.75 205,933.54
11. Extraordinary items, income tax, benefit
of net operating loss carryover 185,319.00 218,327.00
12. Net Income (Loss) 414,520.75 424,260.54
13. Earnings (Loss) per share:
$414,520.75 : 9,965,015
issued and outstanding .042
$424,260.54 : 9,965,015
issued and outstanding .043
14. Dividends per share -0- -0-
The results for interim periods are not necessarily indicative of results to be
expected for the year.
The information furnished for Western Standard Corporation reflects adjustments
which are, in the opinion of management, necessary to a fair statement of the
results for this interim period.
-4-
PART 1, ITEM 1, 2 (1)(iii)
FORM 10-QSB
WESTERN STANDARD CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
Unaudited
Sep. 30, 1995 Sep. 30, 1994
------------- -------------
INCREASE (DECREASE) IN CASH:
Cash flows from operating activities:
Cash received from customers $ 7,945,009.46 $ 7,140,583.15
Cash paid to suppliers and employees ( 7,604,887.97) ( 5,933,686.17)
Interest paid ( 470,115.64) ( 403,638.92)
-------------- --------------
Net cash provided (used) by
operations ($ 129,994.15) $ 803,258.06
-------------- --------------
Cash flows from investing activities:
Repayments of loans by officer $ -0- $ 7,500.00
Capital expenditures ( 388,372.83) ( 1,472,908.91)
Restricted cash reserve -0- ( 300,260.00)
Stock issued for cash 130,200.00 217,000.00
Loans to Snow King Center -0- ( 307,800.41)
Sale of condominium and land 315,000.00 262,490.79
-------------- --------------
Net cash provided (used) by
investing activities $ 56,827.17 ($ 1,593,978.53)
-------------- --------------
Cash flows from financing activities:
Borrowings from banks $ 636,963.68 $ 1,387,000.00
Principal payments to banks ( 680,946.88) ( 455,719.83)
-------------- --------------
Net cash provided (used) by
financing activities ($ 43,983.20 $ 931,280.17
-------------- --------------
Net increase (decrease) in cash ($ 117,150.18) $ 140,559.70
Cash at beginning of year 184,708.17 76,631.00
-------------- --------------
Cash at end of quarter $ 67,557.99 $ 217,190.70
-------------- --------------
-------------- --------------
RECONCILIATION OF NET INCOME TO NET CASH USED BY OPERATING ACTIVITIES:
Net income $ 414,520.74 $ 424,260.54
Adjustments:
Depreciation and amortization 492,565.93 380,605.38
Decrease in advance deposits ( 268,878.08) ( 150,245.31)
Decrease in accrued expense ( 8,994.62) ( 65,637.80)
(Decrease) increase in accounts
receivable ( 244,109.53) 3,855.28
Change in other assets 3,807.19 8,350.00
Gain on condominium sold ( 29,594.60) -0-
Decrease in prepaid expenses 176,135.05 69,554.66
Decrease (increase) in inventories ( 58,438.11) 6,462.65
(decrease) in accounts payable ( 737,506.12) ( 91,825.77)
Allocation of Minority Interest
in profit of subsidiary 130,533.95 217,878.43
Change in restricted cash ( 35.95) -0-
-------------- --------------
Net cash provided by operations ($ 129,994.15) $ 803,258.06
-------------- --------------
-------------- --------------
-5-
PART I, ITEM 1, 2 (2)
FORM 10-QSB
WESTERN STANDARD CORPORATION
(ii) Material Subsequent Events and Contingencies
None
(iii) Significant Equity Investors
Six investors own approximately 23.57% of Snow King
Resort, Inc., a Western Standard Corporation sub-
sidiary.
(iv) Significant Disposition and Purchase Business
Combinations.
None
(v) Material accounting changes
None
PART I, Item 1, 2 (2)(iii)
Significant Equity Investors
Unaudited
January 1 to
Sep. 30, 1995
--------------
Sales $ 8,175,964.30
Gross Income $ 8,175,964.30
Net Income (Loss) from continuing operations $ 553,813.92
Less Minority Interest in profit or (loss) -
23.57% $ 130,533.94
Net Income (Loss) $ 423,279.98
The above figures are for Snow King Resort, Inc., a Western Standard Corporation
subsidiary. The Registrant owns approximately 76.43 percent of the outstanding
Snow King Resort, Inc. voting stock.
-6-
PART II
FORM 10-QSB
WESTERN STANDARD CORPORATION
Other Information
1. Legal Proceedings.
Six lawsuits were filed against Snow King Resort and
Snow King Resort Center, Inc. for various injuries
sustained on Snow King property and one for water
damage. Of the seven lawsuits filed, three have been
settled by our insurance company; one goes to trial
on January 8, 1996; and three are pending.
The filed lawsuits are being handled by our insurance
company and they will handle future suits. Our insurance
coverage would appear to be sufficient.
2. Change in Securities
None
3. Defaults upon senior securities.
None
4. Submission of matters to a vote of security holders.
None
5. Other information.
None
6. Exhibits and reports on Form 8-K.
(a) Exhibit 27 - Financial Data Schedule
(b) Reports on Form 8-K
No reports on Form 8-K were filed during this quarter.
303(b) 2 Management's Discussion and Analysis of Financial
Condition and Results of Operations.
(a) ANALYSIS OF FINANCIAL CONDITION:
Heavy startup and operating costs at the Snow King Resort
Center have created a heavy drain on Snow King Resort's
cash flow. In addition, less revenue at the Center was
received than expected. Snow King Resort has not had
sufficient cash flow to pay its creditors in a timely
manner. Summer business has been good and the Resort
is catching up in paying its bills. Principal and
interest payments on loans are current.
Western Standard Corporation, the parent company, will
have sufficient funds to cover its expenses during 1995
from cash reserves, oil and gas royalties, interest, and
accounts receivable.
(c) RESULTS OF OPERATIONS:
Net gain for the first nine months of 1995 amounted to
$545,055, compared to a gain for the first nine months
of 1994 in the amount of $642,138.
-7-
Profits and losses for the first nine months of 1995 and
1994 came from:
SOURCE 1995 1994
--------- ---------
Western Standard Corporation ($ 8,734) ($ 15,592)
Snow King Resort, Inc. 553,814 620,840
Western Recreation Corporation ( 25) 36,890
--------- ---------
$ 545,055 $ 642,138
--------- ---------
--------- ---------
FORM 10-QSB
WESTERN STANDARD CORPORATION
SIGNATURE
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.
WESTERN STANDARD CORPORATION
----------------------------
(Registrant)
Dated: November 6, 1995 /s/ Stanford E. Clark
----------------------------
Stanford E. Clark, President
Treasurer
-8-