-----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, FxlZ5l+oln2moRAjn7634EmMWR5yWX86Q5GuQxcaGl8+kE3iSZMFUffpI/Pq9ijF 5Y/CDEnrzcwjdFa6cnoI8g== 0000927025-00-000082.txt : 20000511 0000927025-00-000082.hdr.sgml : 20000511 ACCESSION NUMBER: 0000927025-00-000082 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20000331 FILED AS OF DATE: 20000510 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: 623915 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 March 31, 2000 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 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 - March 31, 2000 (Unaudited) and June 30, 1999 3 Consolidated Condensed Statements of Operations - Nine months ended March 31, 2000 and 1999 (Unaudited) 5 Consolidated Condensed Statements of Operations - Three months ended March 31, 2000 and 1999 (Unaudited) 6 Consolidated Condensed Statements of Cash Flows - Nine months ended March 31, 2000 and 1999 (Unaudited) 7 Notes to Consolidated Condensed Financial Statements 8 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 10 PART II - OTHER INFORMATION Item 3. Defaults Upon Senior Securities 12 Item 6. Exhibits and Reports on Form 8-K 12 PART I. FINANCIAL INFORMATION ITEM 1. FINANCIAL STATEMENTS CHASE GENERAL CORPORATION AND SUBSIDIARY CONSOLIDATED CONDENSED BALANCE SHEETS MARCH 31, 2000 AND JUNE 30, 1999 MARCH 31, JUNE 30, 2000 1999 (Unaudited) CURRENT ASSETS Cash $ 242,403 $ 206,609 Trade receivables, net of allowance 205,859 138,959 Inventories: Finished goods 9,045 73,106 Goods in process 8,240 3,243 Raw materials 54,894 52,930 Packaging materials 135,342 70,878 Prepaid expense 21,317 35,469 Total current assets 677,100 581,194 PROPERTY AND EQUIPMENT - AT COST 1,076,644 1,036,457 Less accumulated depreciation 843,753 818,690 Total property and equipment 232,891 217,767 TOTAL ASSETS $ 909,991 $ 798,961 LIABILITIES AND STOCKHOLDERS' EQUITY MARCH 31, JUNE 30, 2000 1999 (Unaudited) CURRENT LIABILITIES Accounts payable $ 115,122 $ 48,383 Accrued expense 32,802 47,073 Notes payable, Series B, current maturities 6,066 6,066 Income taxes payable 17,865 -- Total current liabilities 171,855 101,522 LONG-TERM LIABILITIES Notes payable, Series B, less current maturities above 121,606 156,606 Total liabilities 293,461 258,128 STOCKHOLDERS' EQUITY Capital stock issued and outstanding: Prior cumulative preferred stock, $5 par value: Series A (liquidation preference $1,237,500 and $1,215,000 respectively) 500,000 500,000 Series B (liquidation preference $1,192,500 and $1,170,000 respectively) 500,000 500,000 Cumulative preferred stock, $20 par value Series A (liquidation preference $2,955,916 and $2,912,017 respectively) 1,170,660 1,170,660 Series B (liquidation preference $481,720 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) (5,849,466) (5,925,163) Total stockholders' equity 616,530 540,833 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 909,991 $ 798,961 See notes to consolidated condensed financial statements. CHASE GENERAL CORPORATION AND SUBSIDIARY CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS (UNAUDITED) NINE MONTHS ENDED MARCH 31 2000 1999 NET SALES $1,881,294 $1,753,469 COST OF SALES 1,441,195 1,351,032 Gross profit on sales 440,099 402,437 OPERATING EXPENSES Selling expense 196,414 194,045 General and administrative expense 136,841 118,049 Total operating expenses 333,255 312,094 Net income from operations 106,844 90,343 OTHER INCOME (EXPENSE) (4,201) (4,235) Net income before income taxes 102,643 86,108 PROVISION FOR INCOME TAXES 26,946 20,750 NET INCOME $ 75,697 $ 65,358 LOSS PER SHARE $ (.02) $ (.03) See notes to consolidated condensed financial statements. CHASE GENERAL CORPORATION AND SUBSIDIARY CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS (UNAUDITED) THREE MONTHS ENDED MARCH 31 2000 1999 NET SALES $ 323,054 $272,458 COST OF SALES 305,194 244,343 Gross profit (loss) on sales 17,860 28,115 OPERATING EXPENSES Selling expense 49,538 43,024 General and administrative expense 47,267 40,894 Total operating expenses 96,805 83,918 Net loss from operations (78,945) (55,803) OTHER INCOME (EXPENSE) (501) (1,436) Net loss before income taxes (79,446) (57,239) CREDIT FOR INCOME TAXES (33,299) (25,523) NET LOSS $ (46,147) $(31,716) LOSS PER SHARE $ (.08) $ (.07) See notes to consolidated condensed financial statements. CHASE GENERAL CORPORATION AND SUBSIDIARY CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (UNAUDITED) NINE MONTHS ENDED MARCH 31 2000 1999 CASH FLOWS FROM OPERATING ACTIVITIES Net income $ 75,697 $ 65,358 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 35,776 40,566 Provision for bad debts 11,805 4,815 Effects of changes in operating assets and liabilities: Accounts receivables (78,705) 43,867 Accounts payable 66,739 (4,468) Inventories (7,364) (36,265) Prepaid expense 14,152 16,531 Accrued expense (14,271) (3,646) Income taxes payable 17,865 19,750 Net cash provided by operating activities 121,694 146,508 CASH FLOWS FROM INVESTING ACTIVITIES Purchases of property and equipment (50,900) (6,804) CASH FLOWS FROM FINANCING ACTIVITIES Principal payments on long-term debt (35,000) (22,633) NET INCREASE IN CASH 35,794 117,071 CASH, BEGINNING OF PERIOD 206,609 161,093 CASH, END OF PERIOD $242,403 $278,164 SUPPLEMENTAL DISCLOSURES Interest paid $ 10,571 $ 12,109 Income taxes paid (received) $ 9,081 $(24,710) 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 page 9 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 nine months ended March 31, 2000. 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 March 31, 2000 and June 30, 1999, the results of its operations for the nine months and three months ended March 31, 2000 and 1999, and its cash flows for the nine months ended March 31, 2000 and 1999. CHASE GENERAL CORPORATION AND SUBSIDIARY NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS (UNAUDITED) NOTE 2 - LOSS PER SHARE The loss per share was computed on the weighted average of outstanding common shares during the years as follows: NINE MONTHS ENDED THREE MONTHS ENDED MARCH 31 MARCH 31 1999 1998 1999 1998 Net income (loss) $ 75,697 $ 65,358 $(46,147) $(31,716) Preferred dividend requirements: 6% Prior Cumulative Preferred, $5 par value 45,000 45,000 15,000 15,000 5% Convertible Cumulative Preferred, $20 par value 51,054 51,054 17,018 17,018 Total dividend requirements 96,054 96,054 32,018 32,018 NET LOSS - COMMON STOCKHOLDERS $ (20,357) $ (30,696) $(78,165) $(63,734) WEIGHTED AVERAGE OF OUTSTANDING COMMON SHARES 969,834 969,834 969,834 969,834 LOSS PER SHARE $ (.02) $ (.03) $ (.08) $ (.07) No computation was made on common stock equivalents outstanding because loss 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 NINE MONTHS ENDED MARCH 31, 2000 AND 1999 Sales: The Company had no unusual transactions for the nine months ended March 31, 2000. The Company realized a gross profit margin of 23.39% for the nine months ended March 31, 2000 as compared to 22.95% for the same period ended a year ago. Consolidated net sales for the nine months ended March 31, 2000 of $1,881,294, were 7% above the $1,753,469 in 1999's first nine months. The 2000 growth in sales was from the "Cherry Mash" product. No major customers were lost during this nine month period. Expenses: Selling, general and administrative expenses were 17.7% of sales in the nine month period ended March 31, 2000 compared to 17.8% in the first nine months of 1999. Interest expense continues to decrease because of debt retirement. Inventories at March 31, 1999 were $7,300 higher than at June 30, 1999 due to increased non-seasonal sales orders from a major customer. Accounts payable are $37,000 higher than at June 30, 1999 due to better payment terms from vendors. THREE MONTHS ENDED MARCH 31, 2000 AND 1999 Sales: The Company's net sales increased 19% over net sales for the three months ended March 31, 1999. This three month period is normally the Company's slowest season. However, due to new sales from a major customer, sales were significantly higher for the March 2000 quarter. (Continued) ITEM 2 CHASE GENERAL CORPORATION AND SUBSIDIARY MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS RESULTS OF OPERATIONS (CONTINUED) Expenses: Selling, general and administrative expenses were 30.0% of sales in the three month period ended March 31, 2000 compared to 30.8% in the same period a year ago. The improved percentage is a result of increased sales for the current period. LIQUIDITY AND CAPITAL RESOURCES As of March 31, 2000, the Company has no commitments for capitalized expenditures. Cash increased $36,000 during the current nine month period as a result of controlling overhead costs. Working capital also increased approximately $25,500 for the current nine 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 dividends in arrears at March 31, 2000 is $5,867,636. 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 by the Company during the quarter ended March 31, 2000. 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 May 10, 2000 /s/ Barry M. Yantis Date Barry M. Yantis President and Chief Financial Officer EX-27 2
5 THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE FINANCIAL STATEMENTS OF CHASE GENERAL CORPORATION CONTAINED IN ITS QUARTERLY REPORT ON FORM 10-Q FOR THE QUARTER ENDED MARCH 31, 2000 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS. 9-MOS JUN-30-2000 MAR-31-2000 242,403 0 225,333 19,474 207,521 677,100 1,076,644 843,753 909,991 171,855 121,606 0 2,361,440 969,834 (2,714,744) 909,997 1,881,294 1,882,838 1,441,195 321,450 0 11,805 5,745 102,643 26,946 0 0 0 0 75,697 (.02) 0
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