-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, DiJgQQgB/ZmdKyLDD+2d+20nSYSfjuDDWg7DelYpYycN3ixIJIvGK0aQmCK+vxy4 PoY2Gt21L/iOg+iyps9bIA== 0000927025-00-000017.txt : 20000211 0000927025-00-000017.hdr.sgml : 20000211 ACCESSION NUMBER: 0000927025-00-000017 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19991231 FILED AS OF DATE: 20000210 FILER: COMPANY DATA: COMPANY CONFORMED NAME: CHASE GENERAL CORP CENTRAL INDEX KEY: 0000015357 STANDARD INDUSTRIAL CLASSIFICATION: SUGAR & CONFECTIONERY PRODUCTS [2060] IRS NUMBER: 362667734 STATE OF INCORPORATION: MO FISCAL YEAR END: 0630 FILING VALUES: FORM TYPE: 10-Q SEC ACT: SEC FILE NUMBER: 002-05916 FILM NUMBER: 531918 BUSINESS ADDRESS: STREET 1: 3600 LEONARD RD CITY: ST JOSEPH STATE: MO ZIP: 64503 BUSINESS PHONE: 8162791625 MAIL ADDRESS: STREET 1: 3600 LEONARD RD CITY: ST JOSEPH STATE: MO ZIP: 64503 FORMER COMPANY: FORMER CONFORMED NAME: CHASE CANDY CO DATE OF NAME CHANGE: 19660911 10-Q 1 FORM 10-Q UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended December 31, 1999 Commission File Number 2-5916 CHASE GENERAL CORPORATION (Exact name of registrant as specified in its Charter) Missouri 36-2667734 State incorporation I.R.S. Employer Identification Number 3600 Leonard Road, St. Joseph, Missouri 64503 (Address of principal executive offices) (Zip Code) (816) 279-1625 (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, and (2) has been subject to such filing requirements for the past 90 days. Yes X No As of February 1, 2000 indicate the number of shares outstanding of the issuer's Common Stock, as of the latest practicable date: 969,834 shares of the Company's common stock ($1.00 par value) were outstanding. CHASE GENERAL CORPORATION Index PART I - FINANCIAL INFORMATION Item 1. Financial Statements Consolidated Condensed Balance Sheets - December 31, 1999 (Unaudited) and June 30, 1999 .................. 3 Consolidated Condensed Statements of Operations Six months ended December 31, 1999 and 1998 (Unaudited)................................ 5 Consolidated Condensed Statements of Operations Three months ended December 31, 1999 and 1998 (Unaudited)................................ 6 Consolidated Condensed Statements of Cash Flows Six months ended December 31, 1999 and 1998 (Unaudited)................................ 7 Notes to Consolidated Condensed Financial Statements. 8 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations.... 9 PART II - OTHER INFORMATION Item 3. Defaults Upon Senior Securities .................10 Item 6. Exhibits and Reports on Form 8-K ................10 PART I - FINANCIAL INFORMATION CHASE GENERAL CORPORATION AND SUBSIDIARY CONSOLIDATED CONDENSED BALANCE SHEETS December 31, 1999 and June 30, 1999 (Unaudited) December 31 June 30, 1999 1999 CURRENT ASSETS Cash $ 311,786 $ 206,609 Trade receivables, net of allowance 159,095 138,959 Inventories: Finished goods 34,995 73,106 Goods in process 10,484 3,243 Raw materials 80,637 52,930 Packaging materials 96,402 70,878 Prepaid expense 8,914 35,469 Total current assets 702,313 581,194 PROPERTY AND EQUIPMENT - AT COST 1,055,689 1,036,457 Less accumulated depreciation 832,045 818,690 Total property and equipment 223,644 217,767 TOTAL ASSETS $ 925,957 $ 798,961 LIABILITIES AND STOCKHOLDERS' EQUITY (Unaudited) December 31 June 30, 1999 1999 CURRENT LIABILITIES Accounts payable $ 60,361 48,383 Accrued expense 21,056 47,073 Notes payable, Series B, current maturities 6,066 6,066 Estimated liability for income taxes 54,191 -- Total current liabilities 141,674 101,522 LONG-TERM LIABILITIES Notes payable, Series B 121,606 156,606 Total liabilities 263,280 258,128 STOCKHOLDERS' EQUITY Capital stock issued and outstanding: Prior cumulative preferred stock, $5 par value: Series A (liquidation preference $1,230,000 and $1,215,000 respectively) 500,000 500,000 Series B (liquidation preference $1,185,000 and $1,170,000 respectively) 500,000 500,000 Cumulative preferred stock, $20.00 par value: Series A (liquidation preference $2,941,283 and $2,912,017 respectively) 1,170,660 1,170,660 Series B (liquidation preference $479,335 and $474,565 respectively) 190,780 190,780 Common stock, $1 par value 969,834 969,834 Paid-in capital in excess of par 3,134,722 3,134,722 Retained earnings (deficit) (5,803,319) (5,925,163) Total stockholders' equity 662,677 540,833 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 925,957 $ 798,961 See notes to consolidated condensed financial statements. CHASE GENERAL CORPORATION AND SUBSIDIARY CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS (Unaudited) Six Months Ended December 31 1999 1998 NET SALES $1,558,240 $1,481,011 COST OF SALES 1,136,001 1,106,689 Gross profit 422,239 374,322 OPERATING EXPENSES Selling expense 146,876 151,021 General and administrative expense 89,574 77,155 Total operating expenses 236,450 228,176 Income from operations 185,789 146,146 OTHER INCOME (EXPENSE) (3,700) (2,799) Income before income taxes 182,089 143,347 PROVISION FOR INCOME TAXES 60,245 46,273 NET INCOME $ 121,844 $ 97,074 EARNINGS PER SHARE $ .06 $ .03 See notes to consolidated condensed financial statements. CHASE GENERAL CORPORATION AND SUBSIDIARY CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS (Unaudited) Three Months Ended December 31 1999 1998 NET SALES $1,104,719 $1,089,310 COST OF SALES 798,233 801,641 Gross profit 306,486 287,669 OPERATING EXPENSES Selling expense 90,895 96,262 General and administrative expense 48,486 38,961 Total operating expenses 139,381 135,223 Income from operations 167,105 152,446 OTHER INCOME (EXPENSE) (2,129) (2,152) Income before income taxes 164,976 150,294 PROVISION FOR INCOME TAXES 56,833 47,659 NET INCOME $ 108,143 $ 102,635 EARNINGS PER SHARE $ .08 $ .07 See notes to consolidated condensed financial statements. CHASE GENERAL CORPORATION AND SUBSIDIARY CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (Unaudited) Six Months Ended December 31 1999 1998 CASH FLOWS FROM OPERATING ACTIVITIES Net income for the six months $121,844 $ 97,074 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 24,068 26,773 Provision for doubtful accounts 6,705 3,210 Effects of changes in operating assets and liabilities: Trade accounts receivable (26,841) (19,149) Income taxes receivable -- 24,710 Inventory (22,361) 42,618 Prepaid expenses 26,555 34,725 Accounts payable 11,978 (33,530) Accrued liabilities 28,174 26,917 Net cash provided by operating activities 170,122 203,348 CASH FLOWS FROM INVESTING ACTIVITIES Purchases of property and equipment (29,945) (6,804) CASH FLOWS FROM FINANCING ACTIVITIES Principal payments on long-term debt (35,000) (22,633) NET INCREASE IN CASH 105,177 173,911 CASH, BEGINNING OF PERIOD 206,609 161,093 CASH, END OF PERIOD $311,786 $335,004 See notes to consolidated condensed financial statements. CHASE GENERAL CORPORATION AND SUBSIDIARY NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS (Unaudited) NOTE 1 - SIGNIFICANT ACCOUNTING POLICIES The accompanying unaudited consolidated condensed financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. Interim results are not necessarily indicative of results for a full year. A summary of the Company's significant accounting policies is presented on pages 19 and 20 (not shown) of its 1999 Annual Report to Shareholders. Users of financial information produced for interim periods are encouraged to refer to the footnotes contained in the Annual Report to Shareholders when reviewing interim financial results. There has been no material change in the accounting policies followed by the Company during the quarter and six months ended December 31, 1999. In the opinion of management, the accompanying interim consolidated condensed financial statements contain all adjustments necessary to present fairly Chase General Corporation's financial position as of December 31, 1999 and June 30, 1999 and the results of its operations for the six months and three months ended December 31, 1999 and 1998, and its cash flows for the six months ended December 31, 1999 and 1998. NOTE 2 - EARNINGS PER SHARE The earnings per share was computed on the weighted average of outstanding common shares as follows: Six Months Ended Three Months Ended December 31 December 31 1999 1998 1999 1998 Net income $121,844 $ 97,074 $108,143 $102,635 Preferred dividend requirements: 6% Prior Cumulative Preferred, $5 par Value 30,000 30,000 15,000 15,000 5% Convertible Cumulative Preferred, $20 par value 34,036 34,036 17,018 17,018 Total dividend requirements 64,036 64,036 32,018 32,018 Net income common shareholders $ 57,808 $ 33,038 $ 76,125 $ 70,617 Weighted average of outstanding common shares 969,834 969,834 969,834 969,834 Earnings per share $ .06 $ .03 $ .08 $ .07 No computation was made on common stock equivalents outstanding because earnings per share would be anti-dilutive. ITEM 2 CHASE GENERAL CORPORATION AND SUBSIDIARY MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS GENERAL Chase General and its wholly-owned subsidiary are engaged in the manufacture of confectionery products which are sold primarily to wholesale houses, grocery accounts, vendors, and repackers. RESULTS OF OPERATIONS Six Months ended December 31, 1999 and 1998 Sales: The Company had no unusual transactions for the six months ended December 31, 1999. The Company realized a gross profit margin of 27.10% for the six months ended December 31, 1999 as compared to 25.27% for the same period ended a year ago. Consolidated net sales for the six months ended December 31, 1999 of $1,558,240, were 5% over the $1,481,011 in fiscal year 1999's first six months. The growth in sales was from the "Cherry Mash" product. No major customer was lost during this first six months. Expenses: Selling, general and administrative expenses were 15.2% of sales in the six months ended December 31, 1999 compared to 15.4% in the first six months of 1998. Interest expense continues to decrease because of debt retirement. Inventories at December 31, 1999 were $22,000 lower than at June 30, 1999 since the Company is entering their slow season of the year. In addition, accounts payable and accrued expenses is $40,000 lower at December 31, 1999 compared to June 30, 1999, which also reflects the entrance into the Company's slower business cycle. Three Months ended December 31, 1999 and 1998 Sales: The Company realized a gross profit margin of 27.7% and 26.4% for the three months ended December 31, 1999 and 1998, respectively. Net sales increased 1% over the same period a year ago. No major customers were lost during this period. Expenses: Reduced brokerage activity for three months ended December 31, 1999 resulted in selling expenses decreasing 6% compared to selling expenses for the three months ended December 31, 1998. General and administrative expenses increased 24% as a result of higher insurance costs and bad debt expense. LIQUIDITY AND CAPITAL RESOURCES As of December 31, 1999, the Company has no commitments for capitalized expenditures. Cash increased $105,177 during the current six month period as a result of completing the busy season and controlling overhead. Working capital increased approximately $81,000 for the six month period. PART II. OTHER INFORMATION CHASE GENERAL CORPORATION AND SUBSIDIARY Item 3. DEFAULTS UPON SENIOR SECURITIES a. None b. The total cumulative preferred stock dividend contingency at December 31, 1999 is $5,835,618. Item 6. EXHIBITS AND REPORTS ON FORM 8-K. a. Exhibits - None b. Reports on Form 8-K: There were no reports on Form 8-K filed during October, November, and December, 1999. SIGNATURES 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, thereunto duly authorized. CHASE GENERAL CORPORATION Registrant February 10, 2000 /s/ Barry M. Yantis Date Barry M. Yantis President and Chief Financial Officer EX-27 2
5 6-MOS JUN-30-2000 DEC-31-2000 311,786 0 173,469 14,374 222,518 702,313 1,055,689 832,045 925,957 141,674 121,606 0 2,361,440 969,834 (2,668,597) 925,957 1,558,240 1,559,420 1,136,001 229,745 0 6,705 4,880 182,089 60,245 0 0 0 0 121,844 .06 0
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