-----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, MjfW0VgEHG42ydvHQV2jX8llpIeUeBqtBffxCYUAWI+/T0gQvIze1lfsJnF4b8Yc YPi5B5WytGaChQkLnW87Eg== 0000868267-02-000009.txt : 20020506 0000868267-02-000009.hdr.sgml : 20020506 ACCESSION NUMBER: 0000868267-02-000009 CONFORMED SUBMISSION TYPE: 10QSB PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20020331 FILED AS OF DATE: 20020506 FILER: COMPANY DATA: COMPANY CONFORMED NAME: FOOD TECHNOLOGY SERVICE INC CENTRAL INDEX KEY: 0000868267 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-BUSINESS SERVICES, NEC [7389] IRS NUMBER: 592618503 STATE OF INCORPORATION: FL FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10QSB SEC ACT: 1934 Act SEC FILE NUMBER: 000-19047 FILM NUMBER: 02634511 BUSINESS ADDRESS: STREET 1: 502 PRARIE MINE RD CITY: MULBERRY STATE: FL ZIP: 33860 BUSINESS PHONE: 8634250039 MAIL ADDRESS: STREET 1: 502 PRARIE MINE RD CITY: MULBERRY STATE: FL ZIP: 33860 FORMER COMPANY: FORMER CONFORMED NAME: VINDICATOR INC /FL/ DATE OF NAME CHANGE: 19930328 FORMER COMPANY: FORMER CONFORMED NAME: VINDICATOR OF FLORIDA INC /FL/ DATE OF NAME CHANGE: 19600201 10QSB 1 form10q.txt FORM 10QSB FORM 10-QSB 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 Three Months Ended March 31, 2002 Commission File Number 0-19047 -------------- INCORPORATED IN FLORIDA IRS IDENTIFICATION NO. 59-2618503 FOOD TECHNOLOGY SERVICE, INC. 502 Prairie Mine Road, Mulberry, FL 33860 (863) 425-0039 "Indicate by check mark whether the registrant has filed all annual, quarterly and other reports required to be filed with the Commission within the past 90 days and in addition has filed the most recent annual report required to be filed. Yes X . No ." -- -- "Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the last practicable date." Outstanding as of March 31,2002 and December 31, 2001 Class 2002 2001 ----- ---- ---- Common Stock $.01 Par Value 10,496,837 Shares 10,496,837 Shares FOOD TECHNOLOGY SERVICE, INC. BALANCE SHEETS MARCH 31, DECEMBER 31, 2002 2001 ASSETS ---- ---- ------ (unaudited) * Current Assets: Cash $ 133,673 $ 104,946 Accounts Receivable 97,254 179,793 Inventory 5,649 8,070 Prepaids 18,750 0 ---------- ---------- Total Current Assets 255,326 292,809 ---------- ---------- Property and Equipment: Cobalt 1,825,000 1,825,000 Furniture and Equipment 1,709,881 1,709,881 Building 2,883,675 2,883,675 Less Accumulated Depreciation (3,112,152) (3,033,768) ---------- ---------- Total Property & Equipment 3,306,404 3,384,788 Land 171,654 171,654 Other Assets: Deposits 5,000 5,000 ---------- ---------- Total Assets $ 3,783,384 $ 3,854,251 =========== ========== LIABILITIES AND STOCKHOLDERS' EQUITY ----------------------------------- Current Liabilities: Accounts Payable and Accrued Expense $ 31,523 $ 54,359 Revolving Credit Line 0 250,000 Financing Agreement and Debenture Payable 1,138,099 1,121,894 ---------- ---------- Total Current Liabilities 1,169,622 1,426,253 ---------- ---------- Stockholders' Equity: Common Stock $.01 par value, 20,000,000 shares authorized, 10,496,837 shares outstanding on March 31, 2002 and December 31, 2001 104,968 104,968 Paid in Capital 11,680,619 11,680,619 Deficit (9,104,825) (9,152,129) ---------- ---------- 2,680,762 2,633,458 Less-Common Stock Issued For Receivables (112,000) (205,460) ---------- ---------- Total Stockholders' Equity 2,568,762 2,427,998 ---------- ---------- Total Liabilities and Stockholders' Equity $ 3,738,384 $ 3,854,251 ========== ========== * Condensed from audited financial statements FOOD TECHNOLOGY SERVICE, INC. STATEMENTS OF OPERATIONS FOR THE QUARTERS ENDED MARCH 31,2002 AND 2001 2002 2001 ---- ---- (unaudited) (unaudited) Net Sales $ 409,106 $ 393,391 Processing Costs: 123,589 93,753 --------- -------- Income from Operations 285,517 299,638 General Administrative and Development 140,072 114,371 Depreciation 78,384 64,902 Interest Expense 19,757 28,115 --------- -------- Income Before Income Taxes 47,304 92,250 Income Taxes Provision for income taxes 14,191 34,879 Tax Benefit from Net Operating loss (14,191) (34,879) --------- -------- Net Income $47,304 $92,250 ========= ======== Net Income per Common Share $0.005 $0.009 ========= ======== NOTE 1: BASIS OF PRESENTATION The financial information included herein is unaudited; however, such information reflects all adjustments (consisting solely of normally recurring adjustments) which are, in the opinion of management, necessary for a fair statement of results for the interim period. The results of operations for the three month periods ended March 31, 2002 are not necessarily indicative of the results to be expected for the full year. FOOD TECHNOLOGY SERVICE, INC. STATEMENTS OF CASH FLOWS Three Months Three Months Ended Ended March 31, 2002 March 31, 2001 -------------- -------------- (unaudited) (unaudited) Cash Flows from Operations: Sales Income Received $ 326,566 $ 387,801 Interest Paid (3,552) (25,797) Cash Paid for Operating Expenses (137,747) (240,033) --------- --------- 185,267 121,971 Cash Flows from Investing: Property & Equipment Purchase 0 (17,313) ---------- ---------- 0 (17,313) Cash Flows from Financing Activities: Collection of Subscriptions Receivable 93,460 0 Repayment of Loans (250,000) (100,000) ---------- ---------- (156,540) (100,000) Net Increase (Decrease) in Cash 28,727 4,658 Cash at Beginning of Period 104,946 108,104 ---------- ---------- Cash at End of Period $133,673 $112,762 ========== ========== _______________________________________________________________________________ Reconciliation of Net Income to Net Cash Provided by Operations Net Income $47,304 $92,250 Adjustments to Reconcile Net Income to Cash Provided by Operations: Depreciation 78,384 64,902 Accrued Interest 16,206 2,318 (Increase) Decrease in Inventories 2,421 0 (Increase) Decrease in Receivables 82,539 (6,090) (Increase) Decrease in Prepaids (18,750) 0 Increase (Decrease) in Payables and Accruals (22,837) (31,409) ---------- ---------- Net Cash Provided by Operating Activities $185,267 $121,971 ========== ========== FOOD TECHNOLOGY SERVICE, INC. STATEMENT OF STOCKHOLDERS' EQUITY 2001(unaudited) Common Stock Paid-In Capital Deficit - ------------ ------------ --------------- ------- Balance, January 1, 2001 $ 103,332 $11,469,671 ($9,258,380) Net Income for Period 0 0 92,250 ---------- ---------- ---------- Balance, March 31, 2001 $ 103,332 $11,469,671 ( 9,166,130) ========== ========== ========== ______________________________________________________________________________ 2002 (unaudited) - --------------- Balance, January 1, 2002 $ 104,968 $11,680,619 ($9,152,129) Net Income for Period 0 0 47,304 ---------- ---------- ---------- Balance, March 31, 2002 $ 104,968 $11,680,619 ($9,104,825) ========== ========== ========== (a) Earnings per common share, assuming no dilution, are based on the number of shares outstanding on March 31, 2002 - 10,496,837 and March 31, 2001 - 10,331,201. (b) The foregoing information is unaudited, but, in the opinion of Management, includes all adjustments, consisting of normal accruals, necessary for a fair presentation of the results for the period reported. Management's Analysis of Quarterly Income Statements Operations - ---------- Food Technology Service Inc., had revenue of $409,106 during the first quarter of 2002. This compares to revenues of $393,391 for the same period in 2001. This is an increase of nearly four percent compared to the same period in 2001. Profit for this quarter was $47,304 compared to a profit of $92,250 during the first quarter of 2001. Factors which decreased profits included higher depreciation associated with the acquisition of additional Cobalt-60 in mid-2001, expenses for continuing security upgrades and additional insurance, and expenses related to planned changes in our marketing strategies. We anticipate decreased interest expenses in future quarters due to the retirement of the short-term debt incurred for the purchase of the additional Cobalt-60. This debt was retired during the first quarter of 2002. It is managements belief that the manufacturers, processors, foodservice operators and retailers will embrace the much needed food safety tool irradiation offers. We have every reason to believe that during the second quarter of this year you will see irradiated ground beef and poultry in the market place. Consumer education remains a significant challenge that will result in a successful launch of this category. The result of all major studies supports that as consumer knowledge about irradiation increases, their desire for the products increases. Liquidity and Capital Resources - ------------------------------- As of March 31, 2002, the Company has cash on hand of $133,673 and accounts receivable of $97,254. The special alliance that the Company has with Nordion should guarantee the Company's survival as a going entity until the food irradiation industry develops based upon the recent government approvals. PART II OTHER INFORMATION Item 1. Legal proceedings Reference is made to the information contained under Item 3- Legal Proceedings in the Company's Form 10KSB Report Filed for the twelve month period ended December 31, 2001 Item 2-6 Not applicable 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. Date: April 26, 2002 FOOD TECHNOLOGY SERVICE, INC. /S/ Richard Hunter --------------------------------- Richard Hunter, Ph.D., President and Chief Executive Officer /S/ Dana S. Carpenter ---------------------------------- Dana S. Carpenter, Asst. Corporate Secretary -----END PRIVACY-ENHANCED MESSAGE-----