FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
QUARTERLY REPORT UNDER SECTION 13 OR 15 (D)
OF THE SECURITIES EXCHANGE ACT OF 1934
For Quarter Ended March 31, 1994 Commission file number 2-85622
DCS CAPITAL CORPORATION
(Exact name of registrant as specified in its charter)
Delaware 38-2449183
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
2030 Dow Center, Midland, Michigan 48674
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (517) 636-1000
Not Applicable
(Former name, former address and former fiscal year if changed
since last report)
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 been subject to
such filing requirements for the past 90 days. Yes X No
300 shares of common stock, par value $1.00 per share, were outstanding at
March 31, 1994.
PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
The balance sheets of the DCS Capital Corporation as of March 31, 1994 and
December 31, 1993, statements of income and expenses for the three months and
nine months ended March 31, 1994 and 1993, and cash flows for nine months
ended March 31, 1994 and 1993, and notes thereto are attached.
The unaudited interim financial statements referred to above reflect all
adjustments (consisting of normal recurring accruals) which, in the opinion of
management, are considered necessary for a fair presentation of the results for
the periods covered.
DCS CAPITAL CORPORATION
BALANCE SHEETS
March 31, Dec. 31,
1994 1993
Assets
Current Assets:
Cash and Cash Equivalents $300 $300
Receivables from DCS Capital Partnership 43,061,783 46,387,812
Total Current Assets 43,062,083 46,388,112
Receivables from DCS Capital
Partnership - Long Term 95,027,887 95,022,269
TOTAL ASSETS $138,089,970 $141,410,381
Liabilities and Stockholder's Equity
Current Liabilities:
Accounts Payable $3,500 $3,500
Notes Payable 24,603,000 $30,388,000
Long-term debt due within one year 14,000,000 14,000,000
Accrued interest 4,455,283 1,996,312
Total Current Liabilities 43,061,783 46,387,812
Long-term Debt 95,027,887 95,022,269
Stockholder's Equity:
Common stock ($1 par value; authorized,
issued, and outstanding, 300 shares) 300 300
TOTAL LIABILITIES AND STOCKHOLDER'S EQUITY $138,089,970 $141,410,381
DCS CAPITAL CORPORATION
STATEMENTS OF INCOME AND EXPENSES
Three Months Ended
March 31, March 31,
1994 1993
Interest and Other Income:
Interest earned on advances
to DCS Capital Partnership $2,713,067 $2,819,529
Reimbursement for early
debt redemptions 0 0
Administrative Fees from
DCS Capital Partnership 22,464 33,032
Total Income $2,735,531 $2,852,561
Interest and Other Expenses:
Interest on short-term debt $251,382 $243,095
Interest on long-term debt 2,461,685 2,576,434
Administrative and other
expenses 22,464 33,032
Total Expenses 2,735,531 2,852,561
DCS CAPITAL CORPORATION
STATEMENTS OF CASH FLOWS
Three Months Ended
March 31 March 31
1994 1993
Net Income $0 $0
Cash Flows from Operating Activities:
Amortization of Discount on Notes 5,618 5,617
Decrease (Increase) in Accounts Receivable 3,326,029 3,221,265
Increase in Accrued Interest 2,458,971 2,563,735
Net Cash Provided (Used) by Operations 5,790,618 5,790,617
Cash Flows from Financing Activities:
Proceeds of Bank of America Notes 79,557,000 77,005,000
Repayment of American Notes (85,342,000) (82,790,000)
Net Cash Used by Financing Activities (5,785,000) (5,785,000)
Cash Flows from Investing Activities:
Increase in Long-Term Receivables (5,618) (5,617)
Net Change in Cash 0 0
Cash Beginning Balance 300 300
Cash Ending Balance $300 $300
DCS CAPITAL CORPORATION
ITEM I - NOTES TO FINANCIAL STATEMENTS
Note 1. Summarized Financial Statements of DCS Capital Partnership
BALANCE SHEET
March 31, Dec. 31,
1994 1993
Assets:
Cash $1,010 $783
Due from Novacor Chemicals Ltd.:
Note receivable 137,193,201 140,512,391
Accrued interest 921,686 923,134
Investment in DCS Capital Corporation 300 300
Total $138,116,197 $141,436,608
Liabilities and Partners' Capital:
Payable to DCS Capital Corporation 138,089,670 141,410,081
Accounts Payable 25,927 25,927
Partners' Capital 600 600
Total $138,116,197 $141,436,608
DCS CAPITAL CORPORATION
ITEM I - NOTES TO FINANCIAL STATEMENTS
Note 1. (Continued)
DCS PARTNERSHIP
STATEMENTS OF INCOME AND EXPENSES
Three Months Ended
March 31, March 31,
1994 1993
Income:
Interest on loans to
Novacor Chemicals Ltd. $2,739,031 $2,855,730
Total $2,739,031 $2,855,730
Expenses:
Reimbursement for loss on
early debt redemption
by DCS Capital Corporation
Interest on advances from
DCS Capital Corporation $2,713,067 $2,819,529
Administrative Expenses:
Paid to DCS Capital
Corporation 22,464 33,032
Other 3,500 3,169
Total $2,739,031 $2,855,730
DCS CAPITAL CORPORATION
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
During the first three months of 1994, Novacor Chemicals Ltd., continued
repaying its loan from DCS Capital Partnership. These funds were used by DCS
Capital Partnership to repay a loan from DCS Capital Corporation (the
Corporation). The Corporation then used the funds to pay interest and
principal on its outstanding debt.
SIGNATURE
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 thereupon duly authorized.
DCS CAPITAL CORPORATION
Date: May 6, 1994 J. P. Reinhard
President