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 September 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
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(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 $0.05 par at October 30, 1996.
PART 1, ITEM 1, 2 (1)(i)
FORM 10QSB
WESTERN STANDARD CORPORATION
Consolidated Balance Sheet
Unaudited
September 30, 1996
Current Assets:
Cash ($ 3,796.47)
Accounts Receivable 425,493.60
Allowance for Doubtful Accounts ( 16,286.52)
Notes receivable 26,611.44
Inventory - at cost 71,598.73
Total Current Assets $ 503,620.78
Property & Equipment, Net of
Accumulated Depreciation,
Amortization and Depletion $ 8,567,346.69
Other Assets:
* Accounts Receivable - Snow
King Resort Center, Inc. $ 794,999.72
Prepaid expenses 5,382.35
Prepaid loan fees 126,179.21
Investment in SKRCI 6,720.00
Leasehold Interest 37,928.77
Restricted Cash Reserves 57,410.05
Other 1,164.86
Total Other Assets $ 1,029,784.96
TOTAL ASSETS $ 10,100,752.43
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
September 30, 1996
Liabilities:
Accounts Payable $ 388,131.14
Accounts Payable - Other 87,426.71
Portion of Long Term Debt
payable within one year 249,386.00
Advance Deposit 173,698.44
Accrued Expenses 389,807.75
Subtotal $ 1,288,450.04
Long Term Debt 6,044,048.09
Fee Payable - Officer 90,000.00
TOTAL LIABILITIES $ 7,422,498.13
Minority Interest in Subsidiary
2,150 shares of Class A stock
in SKRI $ 2,621,232.34
STOCKHOLDERS INVESTMENT:
Common Stock, $0.05 par
value, 10,000,000 shares
authorized, 9,965,015
issued and outstanding
at September 30, 1996 $ 401,201.02
Capital in Excess of Par
Value 3,334,801.45
Accumulated Deficit ( 3,678,980.51)
Net Stockholders
Investment $ 57,021.96
TOTAL LIABILITIES AND CAPITAL $ 10,100,752.43
PART 1, ITEM 1, 2 (1)(ii)
FORM 10QSB
WESTERN STANDARD CORPORATION
Consolidated Statement of Operations
Unaudited
Profit and Loss Information
For the Nine (9) Months Ended
Sep. 30, 1996 Sep. 30, 1995
-------------- --------------
1. Gross sales less discounts,
returns and allowances $ 7,614,052.37 $ 8,212,077.71
2. Operating Revenues -0- 2,828.69
3. Total of Captions 1 and 2 7,614,052.37 8,214,906.40
4. Costs and Expenses
(a) Operating Expenses 6,227,998.516,754,620.14
(b) Interest Expense 501,781.38 470,115.64
(c) Depreciation 485,600.00 445,115.93
Total Costs and Expenses 7,215,379.89 7,669,851.71
5. Income (Loss) before taxes
on income & extraordinary
items 398,672.48 545,054.69
6. Discontinued Operations -0- -0-
7. Provisions for taxes on
income 135,548.00 185,319.00
8. Income or (Loss) 263,124.48 359,735.69
9. Minority interest in
profit (loss) of
subsidiary 97,708.74 130,533.94
10. Income (Loss) before
extraordinary items 165,415.74 229,201.75
11. Extraordinary items,
income tax, benefit of
net operating loss
carryover 135,548.00 185,319.00
12. Net Income (Loss) 300,963.74 414,520.75
13. Earnings (Loss) per share:
$300,963.74 : 9,965,015
issued and outstanding .03
($414,520.75) : 9,965,015
issued and outstanding .042
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 Nine (9) Months Ended
Sep. 30, 1996 Sep. 30, 1995
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INCREASE (DECREASE) IN CASH:
Cash flows from operating
activities:
Cash received from
customers $ 7,466,616.77 $ 7,945.009.46
Cash paid to suppliers
and employees ( 6,717,018.83)( 7,604,887.97)
Interest paid ( 501,781.38)( 470,115.64)
Net cash provided
(used) by operations $ 247,816.56 ($ 129,994.15)
Cash flows from investing
activities:
Loans to officer ($ 16,549.43) $ -0-
Capital expenditures ( 296,166.21)( 388,372.83)
Increase in restricted
cash reserve ( 55,255.38) -0-
Stock issued for cash -0- 130,200.00
Reduction in Snow King
Center receivable 245,983.14 -0-
Sale of condominium -0- 315,000.00
Net cash provided (used)
by investing
activities ($ 121,987.88) $ 56,827.17
Cash flows from financing
activities:
Borrowings from banks $ 1,181,400.00 $ 636,963.68
Principal payments to
banks ( 1,430,529.18)( 680,946.88)
Payment of loan fees ( 66,195.00) -0-
Net cash provided
(used) by financing
activities ($ 315,324.18)($ 43,983.20)
Net increase (decrease) in
cash ($ 189,495.50)($ 117,150.18)
Cash at beginning of year 185,699.03 184,708.17
Cash at end of quarter ($ 3,796.47) $ 67,557.99
RECONCILIATION OF NET INCOME
TO NET CASH USED BY OPERATING
ACTIVITIES:
Net income (loss) $ 300,963.74 $ 414,520.74
Adjustments:
Depreciation and
amortization 508,551.00 492,565.93
(Decrease) increase in
advance deposits ( 359,179.48)( 268,878.08)
Increase (decrease) in
accrued expense 60,023.84 ( 8,994.62)
Decrease (increase) in
accounts receivable ( 147,435.60)( 244,109.53)
Change in other assets -0- 3,807.19
Gain on condominium sold -0- ( 29,594.60)
Decrease in prepaid expenses 159,918.39 176,135.05
Decrease (increase) in
inventories ( 16,332.07)( 58,438.11)
(Decrease) in accounts
payable ( 356,402.00)( 737,506.12)
Allocation of minority
interest in profit of
subsidiary 97,708.74 130,533.95
Change in restricted cash -0- ( 35.95)
Net cash provided by
operations $ 247,816.56 ($ 129,994.15)
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
Sep. 30, 1996
--------------
Sales $ 7,581,981.34
Gross Income $ 7,581,981.34
Net Income (Loss) from continuing operations $ 414,547.05
Less Minority Interest in profit or (loss) -
23.57% $ 97,708.74
Net Income (Loss) $ 316,838.31
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 September 30, 1996, two lawsuits had been filed against
Snow King Resort, Inc. and were 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
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. However, a considerable amount of payables and
debt were paid in the third quarter of 1996. 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 gain for the first nine months of 1996 amounted to
$398,672.48, compared to a gain for the first nine months
of 1995 in the amount of $545,055.00.
Profits and losses for the first nine months of 1996 and
1995 came from:
SOURCE 1996 1995
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Western Standard Corporation ($ 15,849) ($ 8,734)
Snow King Resort, Inc. 414,547 553,814
Western Recreation Corporation ( 25) ( 25)
$ 398,673 $ 545,055
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: October 31, 1996 /s/ Stanford E. Clark
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Stanford E. Clark, President
Treasurer