U.S. SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10QSB
[X]QUARTERLY REPORT UNDER SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For Quarterly period ended June 30, 1996
[ ]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
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(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 August 2, 1996.
PART 1, ITEM 1, 2 (1)(i)
FORM 10QSB
WESTERN STANDARD CORPORATION
Consolidated Balance Sheet
Unaudited
June 30, 1996
Current Assets:
Cash $ 165,884.06
Accounts Receivable 427,798.74
Allowance for Doubtful Accounts ( 15,018.85)
Notes receivable 26,089.39
Inventory - at cost 75,214.32
---------------
Total Current Assets $ 679,967.66
---------------
Property & Equipment, Net of
Accumulated Depreciation,
Amortization and Depletion $ 8,681,644.46
---------------
Other Assets:
* Accounts Receivable - Snow
King Resort Center, Inc. $ 827,785.72
Prepaid expenses 87,137.87
Prepaid loan fees 148,184.21
Investment in SKRCI 6,720.00
Leasehold Interest 38,282.77
Restricted Cash Reserves 13,283.81
Other 1,164.86
---------------
Total Other Assets $ 1,122,559.24
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TOTAL ASSETS $ 10,484,171.36
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---------------
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.
PART 1, ITEM 1, 2 (1)(i)
FORM 10QSB
WESTERN STANDARD CORPORATION
Consolidated Balance Sheet
Unaudited
June 30, 1996
Liabilities:
Accounts Payable $ 575,055.85
Accounts Payable - Other 87,954.35
Portion of Long Term Debt
payable within one year 983,198.00
Advance Deposit 536,387.74
Accrued Expenses 402,274.68
---------------
Subtotal $ 2,584,870.62
Long Term Debt 6,093,594.74
Fee Payable - Officer 90,000.00
---------------
TOTAL LIABILITIES $ 8,768,465.36
---------------
Minority Interest in Subsidiary
2,150 shares of Class A stock
in SKRI $ 2,393,316.36
---------------
STOCKHOLDERS INVESTMENT:
Common Stock, $0.05 par
value, 10,000,000 shares
authorized, 9,965,015
issued and outstanding
at June 30, 1996 $ 401,201.02
Capital in Excess of Par
Value 3,334,801.45
Accumulated Deficit ( 4,413,612.83)
---------------
Net Stockholders
Investment ($ 677,610.36)
---------------
TOTAL LIABILITIES AND CAPITAL $ 10,484,171.36
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PART 1, ITEM 1, 2 (1)(ii)
FORM 10QSB
WESTERN STANDARD CORPORATION
Consolidated Statement of Operations
Unaudited
Profit and Loss Information
For the Six (6) Months Ended
Jun. 30, 1996 Jun. 30, 1995
-------------- --------------
1. Gross sales less discounts,
returns and allowances $ 3,955,052.09 $ 4,420,356.98
2. Operating Revenues -0- 1,907.72
3. Total of Captions 1 and 2 3,955,052.09 4,422,264.70
4. Costs and Expenses
(a) Operating Expenses 3,871,072.06 4,292,653.29
(b) Interest Expense 325,455.85 301,867.19
(c) Depreciation 322,400.00 293,810.62
Total Costs and Expenses 4,518,927.91 4,888,331.10
5. Income (Loss) before taxes
on income & extraordinary
items ( 563,875.82)( 466,066.40)
6. Discontinued Operations -0- -0-
7. Provisions for taxes on
income -0- -0-
8. Income or (Loss) ( 563,875.82)( 466,066.40)
9. Minority interest in
profit (loss) of
subsidiary ( 130,207.25)( 108,494.44)
10. Income (Loss) before
extraordinary items ( 433,668.57)( 357,571.96)
11. Extraordinary items,
income tax, benefit of
net operating loss
carryover -0- -0-
12. Net Income (Loss) ( 433,668.57)( 357,571.96)
13. Earnings (Loss) per share:
($433,668.57) : 9,965,015
issued and outstanding
($357,571.96) : 9,965,015
issued and outstanding (.043) (.036)
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.
PART 1, ITEM 1, 2 (1)(iii)
FORM 10QSB
WESTERN STANDARD CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
Unaudited
For the Six (6) Months Ended
Jun. 30, 1996 Jun. 30, 1995
-------------- --------------
INCREASE (DECREASE) IN CASH:
Cash flows from operating
activities:
Cash received from
customers $ 3,804,043.68 $ 4,369.487.50
Cash paid to suppliers
and employees ( 3,905,213.91)( 4,390,823.85)
Interest paid ( 325,455.85)( 301,867.19)
Net cash provided
(used) by operations ($ 426,626.08)($ 323,203.54)
Cash flows from investing
activities:
Loans to officer ($ 16,027.38) $ -0-
Capital expenditures ( 247,263.98)( 276,721.52)
Collection of subscrip-
tions for stock -0- 108,500.00
Increase in restricted cash( 11,129.14) -0-
Loans to Snow King
Center (reductions) 213,197.14 -0-
Sale of condominium -0- 315,000.00
Net cash provided (used) by
investing activities ($ 61,223.36) $ 146,778.48
Cash flows from financing
activities:
New Loans $ 1,181,400.00 $ 635,840.14
Principal payments to
banks ( 647,170.53)( 554,855.48)
Payment of loan fees ( 66,195.00) -0-
Net cash provided
(used) by financing
activities $ 468,034.47 $ 80,984.66
Net increase (decrease) in
cash ($ 19,814.97)($ 95,440.40)
Cash at beginning of year 185,699.03 184,708.17
Cash at end of quarter $ 165,884.06 $ 89,267.77
RECONCILIATION OF NET INCOME
TO NET CASH USED BY OPERATING
ACTIVITIES:
Net income (loss) ($ 433,668.57)($ 357,571.96)
Adjustments:
Depreciation and
amortization 322,992.00 324,010.62
Decrease (increase) in
advance deposits 3,509.82 79,577.71
Change in Snow King
Center receivable -0- 3,807.19
Increase in accounts receivable( 151,008.41)( 135,484.23)
Change in other assets -0- ( 23.11)
Decrease in prepaid expenses 78,162.87 94,267.80
Decrease (increase) in
inventories ( 19,947.66)( 26,432.20)
Gain on condominium sold -0- ( 29,594.60)
(Decrease) increase in
accounts payable and
accrued expenses ( 96,458.88)( 167,266.32)
Allocation of Minority
Interest in profit
(loss) of subsidiary ( 130,207.25)( 108,494.44)
Net cash provided by
operations ($ 426,626.08)($ 323,203.54)
PART I, ITEM 1, 2 (2)
FORM 10QSB
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
Jun. 30, 1996
--------------
Sales $ 3,933,965.73
Gross Income $ 3,933,965.73
Net Income (Loss) from continuing operations ($ 552,427.86)
Less Minority Interest in profit or (loss) -
23.57% ($ 130,207.25)
Net Income (Loss) ($ 422,220.61)
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.
PART II
FORM 10QSB
WESTERN STANDARD CORPORATION
Other Information
1. Legal Proceedings.
At June 30, 1996, one lawsuit had been filed against
Snow King Resort, Inc. and was pending.
The filed lawsuit is 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
Form 8-K of April 15, 1996 was accepted on June 18, 1996.
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. At times Snow King Resort has not
had sufficient cash flow to pay its creditors in a timely
manner. Principal and interest payments on loans are
current.
On April 15, 1996, Snow King Resort, Inc. refinanced its
loan with ORIX USA at a fixed interest rate of 10 1/8% for
five years. Part of the proceeds were used to pay other
debt. The amount of the new loan was $6,150,000.
Western Standard Corporation, the parent company, will
have sufficient funds to cover its expenses during 1996
from cash reserves, oil and gas royalties, interest, and
accounts receivable.
(c) RESULTS OF OPERATIONS:
Net loss for the first six months of 1996 amounted to
$433,668, compared to a loss for the first six months
of 1995 in the amount of $357,571.96.
Profits and losses for the first six months of 1996 and
1995 came from:
SOURCE 1996 1995
--------- ---------
Western Standard Corporation ($ 11,422) ($ 5,734)
Snow King Resort, Inc. ( 422,221) ( 351,813)
Western Recreation Corporation ( 25) ( 25)
($ 433,668) ($ 357,572)
Snow conditions during the first quarter of 1996 were very
good and produced a small profit from mountain operations.
Food and beverage, and the Snow King Center also were
profitable. However, rooms and condominium rentals were
less profitable than in 1995.
FORM 10QSB
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
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(Registrant)
Dated: __________________ /s/ Stanford E. Clark
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Stanford E. Clark, President
Treasurer