-----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, IUarHmnv8l0Bi8ruWS3IN7wKWvKjXv2WFa5ia8pDRouGF4ETTln+qntYNbPHT8wg eFPQYURdOmBqCH4tgyyeKA== 0000950131-01-000807.txt : 20010212 0000950131-01-000807.hdr.sgml : 20010212 ACCESSION NUMBER: 0000950131-01-000807 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20001231 FILED AS OF DATE: 20010209 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: 1530604 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 0001.txt FORM 10-Q 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, 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) Telephone: (816) 279-1625 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, 2001 there were 969,834 shares outstanding of the Registrant's ($1.00 par value) common stock. 1 CHASE GENERAL CORPORATION Index to Form 10-Q December 31, 2000
PART I - FINANCIAL INFORMATION Item 1. Financial Statements Consolidated Condensed Balance Sheets - December 31, 2000 (Unaudited) and June 30, 2000..................................................................................... 3 Consolidated Condensed Statements of Operations Six months ended December 31, 2000 and 1999 (Unaudited)........................................................... 5 Consolidated Condensed Statements of Operations Three months ended December 31, 2000 and 1999 (Unaudited)......................................................... 6 Consolidated Condensed Statements of Cash Flows Six months ended December 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............................................................................... 9 PART II - OTHER INFORMATION Item 3. Defaults Upon Senior Securities.................................................................................. 10 Item 6. Exhibits and Reports on Form 8-K................................................................................. 10 Signatures................................................................................................................ 10 Exhibit No. 27 Financial Data Schedule.................................................................................... 11
2 PART I - FINANCIAL INFORMATION CHASE GENERAL CORPORATION AND SUBSIDIARY CONSOLIDATED CONDENSED BALANCE SHEETS December 31, 2000 and June 30, 2000 (Unaudited) ASSETS
December 31, June 30, 2000 2000 -------------- ------------ CURRENT ASSETS Cash $ 317,364 $ 146,779 Trade receivables, net of allowance 192,109 129,018 Other receivables -- 3,239 Inventories: Finished goods 11,758 85,147 Goods in process 5,159 4,872 Raw materials 39,625 53,232 Packaging materials 103,071 123,938 Prepaid expense 2,717 34,960 Prepaid income taxes -- 1,158 -------------- -------------- Total current assets 671,803 582,343 -------------- -------------- PROPERTY AND EQUIPMENT - AT COST 1,073,088 1,072,644 Less accumulated depreciation 876,863 854,296 -------------- -------------- Total property and equipment 196,225 218,348 -------------- -------------- TOTAL ASSETS $ 868,028 $ 800,691 ============== ==============
3 LIABILITIES AND STOCKHOLDERS' EQUITY (Unaudited)
December 31, June 30, 2000 2000 ------------------ -------------- CURRENT LIABILITIES Accounts payable $ 40,330 $ 54,718 Accrued expense 19,756 35,184 Notes payable, Series B, current maturities 4,321 4,321 Income taxes payable 42,133 -- -------------- -------------- Total current liabilities 106,540 94,223 LONG-TERM LIABILITIES Notes payable, Series B 73,351 123,351 -------------- -------------- Total liabilities 179,891 217,574 -------------- -------------- STOCKHOLDERS' EQUITY Capital stock issued and outstanding: Prior cumulative preferred stock, $5 par value: Series A (liquidation preference $1,260,000 and $1,245,000 respectively) 500,000 500,000 Series B (liquidation preference $1,215,000 and $1,200,000 respectively) 500,000 500,000 Cumulative preferred stock, $20 par value: Series A (liquidation preference $2,999,816 and $2,970,550 respectively) 1,170,660 1,170,660 Series B (liquidation preference $488,874 and $484,104 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) (5,777,859) (5,882,879) -------------- -------------- Total stockholders' equity 688,137 583,117 -------------- -------------- TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 868,028 $ 800,691 ============== ==============
See notes to consolidated condensed financial statements. 4 CHASE GENERAL CORPORATION AND SUBSIDIARY CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS (Unaudited) Six Months Ended December 31 ---------------------------- 2000 1999 ----------- ------------- NET SALES $ 1,493,783 $ 1,558,240 COST OF SALES 1,095,964 1,136,001 ----------- ------------- Gross profit 397,819 422,239 ----------- ------------- OPERATING EXPENSES Selling expense 145,721 146,876 General and administrative expense 96,471 89,574 ----------- ------------- Total operating expenses 242,192 236,450 ----------- ------------- Income from operations 155,627 185,789 OTHER INCOME (EXPENSE) (2,596) (3,700) ----------- ------------- Income before income taxes 153,031 182,089 PROVISION FOR INCOME TAXES 48,011 60,245 ----------- ------------- NET INCOME $ 105,020 $ 121,844 =========== ============= EARNINGS PER SHARE $ .04 $ .06 =========== ============= See notes to consolidated condensed financial statements. 5 CHASE GENERAL CORPORATION AND SUBSIDIARY CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS (Unaudited)
Three Months Ended December 31 ------------------------------- 2000 1999 -------------- ------------- NET SALES $ 1,040,830 $ 1,104,719 COST OF SALES 746,855 798,233 -------------- ------------- Gross profit 293,975 306,486 -------------- ------------- OPERATING EXPENSES Selling expense 89,005 90,895 General and administrative expense 48,063 48,486 -------------- ------------- Total operating expenses 137,068 139,381 -------------- ------------- Income from operations 156,907 167,105 OTHER INCOME (EXPENSE) (1,517) (2,129) -------------- ------------- Income before income taxes 155,390 164,976 PROVISION FOR INCOME TAXES 48,481 56,833 -------------- ------------- NET INCOME $ 106,909 $ 108,143 ============== ============= EARNINGS PER SHARE $ .08 $ .08 ============== =============
See notes to consolidated condensed financial statements. 6 CHASE GENERAL CORPORATION AND SUBSIDIARY CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (Unaudited)
Six Months Ended December 31 -------------------------- 2000 1999 ----------- ----------- CASH FLOWS FROM OPERATING ACTIVITIES Net income for the six months $ 105,020 $ 121,844 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 22,568 24,068 Provision for doubtful accounts 3,210 6,705 Effects of changes in operating assets and liabilities: Trade and other accounts receivable (63,062) (26,841) Inventories 107,576 (22,361) Prepaid expenses 32,243 26,555 Prepaid income taxes 1,158 -- Accounts payable (14,388) 11,978 Accrued liabilities (15,428) 28,174 Income taxes payable 42,133 -- ----------- ----------- Net cash provided by operating activities 221,030 170,122 ----------- ----------- CASH FLOWS FROM INVESTING ACTIVITIES Purchases of property and equipment (445) (29,945) ----------- ----------- CASH FLOWS FROM FINANCING ACTIVITIES Principal payments on long-term debt (50,000) (35,000) ----------- ----------- NET INCREASE IN CASH 170,585 105,177 CASH, BEGINNING OF PERIOD 146,779 206,609 ----------- ----------- CASH, END OF PERIOD $ 317,364 $ 311,786 =========== ===========
See notes to consolidated condensed financial statements. 7 CHASE GENERAL CORPORATION AND SUBSIDIARY NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS (Unaudited) NOTE 1 - BASIS OF PRESENTATION In the opinion of management, the accompanying unaudited interim consolidated condensed financial statements include all adjustments (consisting only of normal adjustments) necessary for a fair presentation of the financial position of Chase General Corporation as of December 31, 2000 and June 30, 2000 and the results of its operations for the six months and three months ended December 31, 2000 and 1999, and its cash flows for the six months ended December 31, 2000 and 1999. 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 2000 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 six months ended December 31, 2000. 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 -------------------------- --------------------------- 2000 1999 2000 1999 ----------- ---------- ----------- ------------ Net income $ 105,020 $ 121,844 $ 106,909 $ 108,143 ----------- ---------- ----------- ----------- 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 $ 40,984 $ 57,808 $ 74,891 $ 76,125 =========== ========== =========== =========== Weighted average of outstanding common shares 969,834 969,834 969,834 969,834 =========== ========== =========== =========== Earnings per share $ .04 $ .06 $ .08 $ .08 =========== ========== =========== ===========
No computation was made on common stock equivalents outstanding because earnings per share would be anti-dilutive. 8 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, 2000 and 1999 - ------------------------------------------- Sales: The Company had no unusual transactions for the six months ended December 31, 2000. The Company realized a gross profit percentage of 26.63% and 27.10% for the six months ended December 31, 2000 and 1999, respectively. Consolidated net sales for the six months ended December 31, 2000 of $1,493,783 were 4% below the $1,558,240 sales in fiscal year 1999's first six months. The loss in net sales was from the additional allowances given to several customers as a result of overbuying for the holiday season. No major customer was lost during this first six months. Expenses: Selling, general and administrative expenses were 16.21% of sales in the six months ended December 31, 2000 compared to 15.2% in the first six months of 1999. Additional costs for a computer consultant working on building a website caused the increase in administrative costs for 2000. Inventories at December 31, 2000 were $107,500 lower than at June 30, 2000 since the Company is entering their slow season of the year. In addition, accounts payable and accrued expenses are $30,000 lower at December 31, 2000 compared to June 30, 2000, which also reflects the entrance into the Company's slower business cycle. Three Months ended December 31, 2000 and 1999 - --------------------------------------------- Sales: The Company realized a gross profit percentage of 28.2% and 27.7% for the three months ended December 31, 2000 and 1999, respectively. Net sales decreased 6% over the same period a year ago as a result of the allowances given to several customers. No major customers were lost during this period. Expenses: Selling expenses decreased 2% compared to selling expenses for the three months ended December 31, 1999. General and administrative expenses decreased 1% compared to these expenses for the three months ended December 31, 2000. LIQUIDITY AND CAPITAL RESOURCES As of December 31, 2000, the Company has no commitments for capitalized expenditures. Cash increased $170,500 during the current six month period as a result of completing the busy season and controlling overhead. Working capital increased approximately $77,000 for the six month period. 9 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, 2000 is $5,963,690. Item 6. EXHIBITS AND REPORTS ON FORM 8-K. a. Exhibit - Number and Description 27. Chase General Corporation and Subsidiary Financial Data Schedule. b. Reports on Form 8-K: There were no reports on Form 8-K filed during October, November, and December, 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 February 9, 2001 /s/ Barry M. Yantis - ---------------------------------- ------------------------------------ Date Barry M. Yantis President and Chief Financial Officer 10 EX-27 2 0002.txt FINANCIAL DATA SCHEDULE
5 3-MOS 6-MOS JUN-30-2001 JUN-30-2001 DEC-31-2000 DEC-31-2000 0 317,364 0 0 0 206,432 0 14,323 0 159,613 0 671,803 0 1,073,088 0 876,863 0 868,028 0 106,540 0 73,351 0 0 0 2,361,440 0 969,834 0 (2,643,137) 0 868,028 1,040,830 1,493,783 1,041,228 1,495,017 746,855 1,095,964 882,318 1,334,946 0 0 1,605 3,210 1,915 3,830 155,390 153,031 48,481 48,011 106,909 105,020 0 0 0 0 0 0 106,909 105,020 .08 .04 0 0
-----END PRIVACY-ENHANCED MESSAGE-----