UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 10-QSB
QUARTERLY REPORT UNDER SECTION 13 OR 15 (D) OF
THE SECURITIES EXCHANGE ACT OF 1934
Quarter: September 30, 1998 Commission File Number:33-22264-FW
TIME FINANCIAL SERVICES, INC.
_________________________________________________________________
(Exact name of registrant as specified in its charter)
NEVADA 33-0840184
_________________________________________________________________
(State or other jurisdiction (I.R.S. Employer incorporation
of organization) or Identification No.)
1182 N. Tustin Street, Orange, CA 92806
_________________________________________________________________
(Address of principal executive offices)
(714) 288-5901
_________________________________________________________________
(Registrant's telephone number, including area code)
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.
X Yes No
_____ _____
The number of shares outstanding of each of the issuer's
classes of stock, as of September 30, 1998, are as follows:
Class of Securities: Shares Outstanding:
Common Stock, $.001 par value 1,205,744
INDEX
TIME FINANCIAL SERVICES, INC.
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
Balance Sheets (Unaudited): 3
As of September 30, 1998
Statements of Operation (Unaudited): 5
For the Three Months ended September 30, 1998
Statement of Cash Flows (Unaudited): 6
For the Three Months Ended September 30, 1998
Note to Financial Statements: 8
As of September 30, 1998 (Unaudited)
Item 2. Management's Discussion and Analysis of 9
Financial Condition and Results of Operations
PART II. OTHER INFORMATION
Item 1. Legal Proceedings 10
Item 2. Change in Securities 10
Item 3. Defaults Upon Senior Securities 10
Item 4. Submission of Matters to a Vote of Security 10
Holders
Item 5. Other Information 10
Signatures 11
TIME FINANCIAL SERVICES, INC.
BALANCE SHEET
CONSOLIDATED
(Unaudited)
September 30, September 30,
1998 1997
_____________ _____________
ASSETS:
Current Assets:
Cash and cash equivalents $ 11,495 $ 12,074
Accounts receivable 0 0
Inventory 0 0
Prepaid expenses 806 0
_____________ _____________
Total Current Assets 12,265 12,074
Property and Equipment, net of
accumulated depreciation 7,489 10,102
Other Assets:
Investment in equity securities 12,370 150
Employee Advances 5,000 0
Real Property at Acquisition Cost 786,699 786,699
_____________ _____________
Total Other Assets 804,069 786,849
_____________ _____________
TOTAL ASSETS $ 823,823 $ 809,025
_____________ _____________
LIABILITIES AND STOCKHOLDERS' EQUITY:
Current Liabilities:
Accounts payable $ 8,253 $ 56,702
Accrued expenses 26,839 2,482
Current Portion of Long Term Debt 8,051 8,051
_____________ _____________
Total Current Liabilities $ 43,143 $ 67,235
Long Term Liabilities
Long Term Debt 661,270 631,270
_____________ _____________
Total Liabilities $ 704,413 $ 698,505
Stockholders' Equity:
Common stock, .001 par value;
5,000,000 shares authorized,
1,205,744 shares issued
and outstanding at
Sept 30, 1998 83,000 16,756
Additional paid-in capital 298,642 298,642
Stock for Real Estate 156,000 156,000
Retained earnings (deficit) (418,232) (306,878)
_____________ _____________
Total Stockholders' Equity 119,410 110,520
_____________ _____________
TOTAL LIABILITIES
AND STOCKHOLDERS' EQUITY $ 823,823 $ 809,025
============= =============
TIME FINANCIAL SERVICES, INC.
STATEMENT OF OPERATIONS
FOR THE QUARTER ENDED SEPTEMBER 30, 1998
(Unaudited)
Sept. 30 Sept. 30
1998 1997
REVENUES
Loan Origination fees $ 109,182 $ 29,790
Rental Income 8,407 0
Marketing Income 51,509 0
Product and Software sales 37,102 50,100
Other fees and income 30,000 5,126
___________ ___________
Total Revenue $ 236,200 $ 85,016
OPERATING EXPENSES:
Loan officer commissions $ 89,273 $ 27,418
Loan Processing costs 25,059 4,418
Other general and administrative 38,300 10,693
Operating costs 87,835 40,555
___________ ___________
Total operating expenses $ 240,467 $ 83,084
___________ ___________
OPERATING PROFIT (LOSS) $ (4,267) $ 1,932
___________ ___________
NET (LOSS) PER COMMON SHARE $ (0.0051) $ 0.0023
=========== ===========
WEIGHTED AVERAGE
SHARES OUTSTANDING 1,205,744 837,813
TIME FINANCIAL SERVICES
STATEMENT OF CASH FLOWS
FOR THE QUARTER ENDED SEPTEMBER 30, 1998
(Unaudited)
Jul-Sep
1998
OPERATING ACTIVITIES
Net Income (4,267)
Adjustments to reconcile Net Income
to net cash provided by operations:
Deposit (800)
Accounts Payable (5,728)
Accrued Expenses: Payroll Liabilities 2,719
__________
Net Cash provided by Operating Activities (8,076)
INVESTING ACTIVITIES
Investment securities (4,480)
Merrill Lynch (7,740)
_________
Net cash provided by Investing Activities (12,220)
Net cash increase for period (20,296)
Cash at beginning of period 31,755
_________
Cash at end of period 11,459
=========
TIME FINANCIAL SERVICES, INC.
NOTE TO FINANCIAL STATEMENTS
SEPTEMBER 30, 1998
(Unaudited)
The financial information included herein is unaudited; however,
such information reflects all adjustments (consisting solely of
normal recurring adjustments) which are, in the opinion of
management, necessary for a fair statement of results for the
interim period. Such results are not necessarily indicative of a
full year's operation.
Part I.
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations.
The following discussion should be read in conjunction with the
attached consolidated financial statements and notes thereto, and
with the Company's audited financial statements and notes thereto
for the year ending June 30, 1998 in the Company's Form 10-KSB.
Liquidity and Capital Resources
During the three month period ending September 30, 1998, the
Company experienced a net increase in cash of $113.54. The net
cash came from investing activities. The company had $11,459 in
cash and $804,068 in assets at the end of the period. Total equity
was $119,410.
Results of Operations
Text Services Division:
The Text Services revenue was $37,102 for the quarter ending
September 30, 1998, down from $50,100 for the quarter ending
September 30, 1997. This is a decline of 26%. This decline was
due to the decline in Prodigy volume.
The company entered into an agreement with JV Web to sell the Text
Services division and received $30,000 in extraordinary income
attributing to this sale in the quarter. The sale subsequently
fell through. The funds were retained.
Time Lending Mortgage Division
The mortgage division had revenues of $105,974.37 for the quarter
ending September 30, 1998, an increase of $76,184 or 250% for the
quarter.
This included a loan foreclosure payoff of $14,430. Loan
origination commissions and fees totaled $90,835. Loan
originations started an annual decline in the second quarter
(fiscal). The division had an operating loss of $(6,670) for the
quarter.
Real Estate Division
In September 1997, the company purchased eight properties. The
income from the properties and other real estate transactions was
$11,615 for the quarter. During the quarter ending September 30,
1998, $5,639 was spent in repairs for one property being prepared
for sale. The division lost ($22,204) in operations for the
quarter. This compared to an operating loss of ($14,097) last
quarter. One property was put up for sale.
Marketing Division
The Company's joint venture with Signature Marketing continued to
be productive. The Company's income for the quarter ending
September 30, 1998 was $51,509. This was an increase of $7,381 or
16.7% over the quarter ending June 30, 1998. The division
contributed $2,232 in profit to the Company.
The Company
Overall total income for the quarter ending September 30, 1998 was
$236,200 compared to $85,016 for the quarter ending September 30,
1997. This was an increase of $151,184 or 178%. This represented
a 83% increase over the quarter ending June 30, 1998 ($129,881)
increase). Revenues increased due to the lower interest rates that
generated increase loan closings, but with low margins there was
only a slight impact on profitability.
The company is generating good cash flows and this should continue
throughout the year.
PART II. OTHER INFORMATION
Item 1. Legal Proceedings
There has been no significant change in other legal matters at
this time.
Item 2. Changes in Securities
None
Item 3. Submission of Matters to a Vote of Securities Holders
None
Item 4. Submission of Matters to a Vote of Securities Holders
None
Item 5. Other Information
Time Financial Services, Inc.'s IRS Employer Identification Number
("FIN") has been issued as 33-0840184. Market Data Corporation
which was merged into Time Financial, "FIN" was 33-0317819.
SIGNATURES
Pursuant to the requirements of the Securities and Exchange Act
of 1934, as amended, the Registrant has caused this report to be
signed on its behalf by the undersigned duly authorized persons.
Time Financial Services, Inc.
(Registrant)
April 26, 1998 Michael F. Pope
(Date) (Signature)
April 26, 1998 Philip C. LaPuma
(Date) (Signature)