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 January 31, 1997 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 March 12, 1997.
PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS.
Richmond Capital Corporation
Balance Sheets
January 31, July 31,
1997 1996
Unaudited Audited
--------- -------
ASSETS
Current Assets
Cash $ 16,141 $ 18,682
Investments 6,500 6,500
Accounts receivable 381,679 103,616
Inventory 74,888 49,888
-------- --------
Current assets 479,208 178,686
Property and equipment (net of depreciation) 56,974 65,375
Leasehold improvements (net of depreciation) 6,296 7,896
Note receivable - officer 13,402 13,402
Other assets 124,000 4,000
-------- --------
Total assets $679,880 $269,359
-------- --------
LIABILITIES AND SHAREHOLDER'S EQUITY
Current liabilities
Accounts payable 97,960 77,027
Accrued expenses 1,459 2,146
Income taxes 113,586 -
Notes payable 151,767 72,278
-------- --------
Current liabilities 364,772 151,451
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 (deficit) 50,686 (146,514)
-------- ---------
Total shareholders' equity 315,108 117,908
-------- --------
Total liabilities and shareholders' equity $679,880 $269,359
-------- --------
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Richmond Capital Corporation
Statement of Operations
(Unaudited)
Quarter Ended Six months ended
January 31, January 31
1997 1996 1997 1996
-------- -------- -------- --------
Sales $825,391 $435,053 $1,227,961 $873,869
Cost of sales 444,818 305,257 646,138 587,771
-------- -------- ---------- --------
Gross profit 380,573 129,796 581,823 286,098
Expenses 129,862 118,816 250,624 236,530
-------- -------- ---------- --------
Income before taxes 250,711 10,980 331,199 49,568
Income taxes 118,000 - 134,000 -
-------- -------- ---------- -------
Net income $132,711 $10,980 197,199 49,568
Per common share .07 .01 .11 .03
Weighted number shares
outstanding 1,787,300 1,787,300 1,787,300 1,787,300
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Richmond Capital Corporation
Statement of Cash Flows
(Unaudited)
Three Months Ended
Quarter Ended Six Months Ended
January 31, January 31,
1997 1996 1997 1996
--------- -------- --------- ---------
Cash flow from operating
activities:
Net income $ 132,711 $ 10,980 $197,199 $ 49,568
Noncash items included in
net income
Depreciation 5,000 5,000 10,000 10,000
Net changes in:
Accounts receivable (181,923) 53,566 (298,477) 155,582
Inventory (20,000) (23,716) (25,000) (15,942)
Deposits (120,000) - (120,000) -
Accounts payable and
accrued expenses 143,008 (73,985) 191,402 (137,868)
--------- -------- -------- --------
Net cash provided
by operating activities (41,204) (28,155) (44,876) 61,340
--------- -------- -------- --------
Cash flows from investing
activities:
Purchase of property
and equipment - (6,576) - (66,777)
Cash flows from financing
activities:
Changes in notes payable 50,402 12,392 42,334 13,432
--------- -------- -------- --------
Net increase(decrease) in cash 9,198 (22,339) (2,542) 7,995
Cash and equivalents,
beginning of period 6,943 37,021 18,683 6,687
--------- -------- --------- --------
Cash and equivalents,
end of period $ 16,141 $ 14,682 $ 16,141 $ 14,682
--------- -------- -------- --------
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ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITIONS AND
RESULTS OF OPERATIONS
THREE MONTHS ENDED JANUARY 31, 1997
COMPARED TO JANUARY 31, 1996
The Company's revenues increased by 90% to $825,391 in the second quarter of
fiscal 1997 as compared to $435,053 in the second quarter of fiscal 1996.
This is primarily due to timing of several sales that did not close at the
end of the first quarter of fiscal 1997 and increased production of a larger
and more experienced sales staff.
The Company's costs and expenses in the period before provision for income
taxes totaled $574,680 or 70% of revenues as compared to $424,073 or 97% 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 70% to 54% of
revenue. This decline was the result of the decrease in price for used
computer equipment and a lower ratio of expenses to sales.
The increase in other expenses was primarily additional compensation to the
sales staff and increased provision for income taxes.
The Company's net income after tax in the second quarter of 1997 was $132,711
as compared to $10,980 in the same period in fiscal 1996. The increase in
net income was a result of the Company's increase in both sales volume and
profit margins on the products sold.
-5-
SIX MONTHS ENDED JANUARY 31, 1997
COMPARED TO JANUARY 31, 1996
The Company's revenues increased by 41% to $1,227,961 for the six months
ended January 31, 1997 as compared to $873,869 for the six months ended
January 31, 1996. The increase in revenue is attributed to an increase in
marketing and a more experienced sales staff.
The Company's cost and expenses increased during the period; however, the
increase represents a lower percentage of total revenue. Cost and expenses
were $912,762 or 74% of revenue for the six months ended January 31, 1997 as
compared to $824,301 or 95% for the six months ended January 31, 1996. The
difference in the two periods was a direct result of the increase in overall
sales.
The Company's after tax income for the six months ended January 31, 1997 was
$197,199 as compared to a $49,568 for the same period of the previous year.
LIQUIDITY AND CAPITAL RESOURCES
The Company has two lines of credit totalling $100,000 which it uses for
short-term borrowing to acquire inventory. On January 31, 1997, the
outstanding balance on these lines was $91,510. The Company also has other
short term loans totaling $60,257 of which $43,300 is from stockholders. The
lines of credit, other loans, and its current assets of $492,609 are deemed
sufficient to fund operations for the next twelve months. As of January 31,
1997, the Company had $8,490 available under the lines of credit.
-6-
The Company's accounts receivable balance increased $182,000 during the
second quarter of fiscal year 1997. This increase was a result of the 90%
increase in sales over the same period in fiscal 1996 and was also an
increase of 105% of the first quarter of fiscal year 1997.
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RICHMOND CAPITAL CORPORATION
NOTES TO UNAUDITED FINANCIAL STATEMENTS
January 31, 1997
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 included
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.
-8-
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 FOR THE QUARTER ENDED JANUARY 31,
1997
(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: March 12, 1997
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