SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 10-Q
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarter October 31, 1996 Commission file number 33-26798-D
RICHMOND CAPITAL CORPORATION
(exact name of registrant as specified in its' charter)
Colorado
(State or other jurisdiction of incorporation or organization)
84-1104385
(I.R.S. Employer Identification No.)
12139 Airline Highway
Baton Rouge, Louisiana 70817-4410
(Address of principal executive offices)
Registrant's telephone number, including area code: (504) 756-8989
Indicate by check mark whether the registrant (1) has filed all reports 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) had been subject to such filing
requirements for the past 90 days. YES [X] NO [ ]
Indicate the number of shares outstanding of each of the insurer's classes of
common stock , as of the latest practicable date.
1,787,300 shares of common stock, $.001 par value, (the issuer's only class
of common stock), were outstanding as of December 9, 1996.
PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS.
Richmond Capital Corporation
Balance Sheet
October 31, July 31,
1996 1996
Unaudited Audited
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ASSETS
Current Assets
Cash $ 6,943 $ 18,682
Investments 6,500 6,500
Accounts receivable 199,756 103,616
Inventory 54,888 49,888
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Current assets 268,087 178,686
Property and equipment (net of depreciation) 61,174 65,375
Leasehold improvements (net of depreciation) 7,096 7,896
Note receivable - officer 13,402 13,402
Other assets 4,000 4,000
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Total assets $353,759 $269,359
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LIABILITIES AND SHAREHOLDER'S EQUITY
Current liabilities
Accounts payable 69,997 77,027
Accrued payables - 2,146
Notes payable 101,364 72,278
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Total current liabilities 171,361 151,451
Common stock - $.001 par value
100,000,000 shares authorized
1,787,300 shares issued and
outstanding at October 31, 1995 1,788 1,788
Capital in excess of par value 262,634 262,634
Retained earnings (82,024) (146,514)
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Total shareholders' equity 182,398 117,908
Total liabilities and shareholders' equity $353,759 $269,359
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Richmond Capital Corporation
Statement of Operations
(Unaudited)
Quarter Ended
October 31,
1996 1995
-------- --------
Revenues
Sales $402,570 $438,816
Cost of sales 201,320 282,514
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Gross profit 201,250 156,302
Expenses 136,762 117,713
-------- --------
Income $ 64,488 $38,588
Per common share .04 .02
Weighted number shares
outstanding 1,787,300 1,787,300
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Richmond Capital Corporation
Statement of Cash Flows
(Unaudited)
Three Months Ended
Quarter Ended
October 31,
1996 1995
--------- --------
Cash flow from operating activates
Net income $ 64,488 $ 38,588
Noncash items included in net
income
Depreciation 5,000 5,000
Net changes in:
Accounts receivable (116,554) 102,017
Inventory (5,000) 7,774
Accounts payable and
accrued expenses 48,394 (63,883)
--------- --------
Net cash provided by operating activities (3,672) 89,496
--------- --------
Cash flows from investing activities
Purchase of property equipment - (60,202)
Cash flow from financing activities
Changes in notes payable (8,068) 1,039
--------- --------
Net increase (decrease) in cash (11,740) 30,334
Cash and equivalents,
beginning of period 18,683 6,687
--------- --------
Cash and equivalents,
end of period $ 6,943 $ 37,021
--------- --------
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ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITIONS AND
RESULTS OF OPERATIONS
THREE MONTHS ENDED OCTOBER 31, 1996
COMPARED TO OCTOBER 31, 1995
The Company's revenues decreased by 8.3% to $402,570 in the first quarter of
fiscal 1997 as compared to $438,816 in the first quarter of fiscal 1996.
This is primarily due to timing of several sales that did not close until the
early part of the second quarter of fiscal 1996.
The Company's costs and expenses decreased in the period to $338,082 or 84%
of revenues as compared to $400,227 or 91% in the same period of 1996. The
primary difference in the two periods was an overall decrease in cost of
sales expenses which decreased from 64% to 50% of revenue. This decrease
resulted from the fluctuation of the going price for used computer equipment
and increased experience in negotiating equipment acquisitions by the sales
staff.
The increase in other expenses was primarily additional compensation to the
sales staff and increased provision for income taxes.
The Company's net income in the first quarter of 1996 was $64,488 as compared
to $38,588 in the same period in fiscal 1996. The increase in net income was
a result of the Company's increase in profit margins on the products sold.
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LIQUIDITY AND CAPITAL RESOURCES
The Company has two lines of credit totalling $75,000 which it uses for
short-term borrowing to acquire inventory. On October 31,1996, the
outstanding balance on these lines was $69,209. The lines of credit and its
current assets of $281,489 are deemed sufficient to fund operations for the
next twelve months. As of October 31, 1996, the Company had $5,791 available
under the lines of credit.
The Company's accounts receivable balance increased $96,000 during the first
quarter of fiscal year 1996. This increase was a result of two sales in the
last week of the quarter and the funds were received in the month subsequent
to the end of the quarter.
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RICHMOND CAPITAL CORPORATION
NOTES TO UNAUDITED FINANCIAL STATEMENTS
October 31, 1996
General
The accompanying unaudited financial statements have been prepared by the
Company pursuant to the rules and regulations of the Securities and Exchange
Commission. Certain information and footnote disclosures normally include
in financial statements prepared in accordance with generally accepted
accounting principles have been condensed or omitted pursuant to such rules
and regulations. The Company believes that the disclosures made herein are
adequate to make the information presented not misleading. In the opinion of
management, all adjustments necessary to a fair statement of the results of
operations for the periods presented have been made.
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PART II. OTHER INFORMATION
ITEM 1 THROUGH 3.
NONE
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY/HOLDERS
NONE
ITEM 5. OTHER INFORMATION
NONE
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) NONE
(b) NONE
SIGNATURES
Pursuant to the requirements of the Securities and Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
RICHMOND CAPITAL CORPORATION
(Registrant)
DATE: December 9, 1996
J. Keith Henderson
President
signed/s/ J. Keith Henderson
EXHIBIT INDEX
EXHIBIT METHOD OF FILING
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27. Financial Data Schedule Filed herewith electronically