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CGI Holding Corporation Ticker: CGIC
Notes for Financial Statements
March 31, 1998
(Unaudited)
Note 1 - Condensed Consolidated Financial Statements
The accompanying condensed consolidated financial statements have been prepared by the Company, and are not audited. All adjustments necessary for fair presentation have been included. All inter-company transactions have been eliminated. These financial statements are condensed and, therefore do not include all the disclosures normally required by generally accepted accounting
principles.
The consolidated financial statements include the accounts of Safe Environment Corporation, Roli Ink Corporation and CGI Holding Corporation.
Item 2-Management's Discussion and Analysis of Financial
Condition and Results of Operation
Financial Condition
Total assets at March 31, 1998 were $2,146,731. Working capital at the end of the first quarter was $1,010,586 compared to $802,629 at the end of the first quarter of 1997. Long-term debt decreased $129,246 for the twelve month period ended March 31, 1998.
Results of Operations
The net (after tax) profit for the first quarter of 1998 was $117,678 or .01 per share compared to $317,256 for the first quarter of 1997 or .04 per share stated in common equivalent shares outstanding. The earnings for the operating subsidiaries for the first quarters were: Safe Environment Corporation (SECO) 1998, $89,029; 1997, $226,760 and Roli Ink Corporation (Roli) 1998 $36,141; 1997, $90,496.
The holding business of CGI, namely SECO and Roli Ink have historically experienced earning swings from one quarter to the next. This is primarily due to outstanding competitive bids being awarded at varying times throughout the year, and the completion of awarded bids in varying quarterly periods. With a significant log of outstanding bids, management forecasts the earnings for the calendar year of 1998 to exceed 1997 actuals.
Future Plans
Reflected on the balance sheet on March 31, 1998 is a 'Negotiation Deposit' in the amount of $100,000. These funds represent "good faith deposit" to a successful acquisition of a manufacturing concern.
The Company is in active negotiation phase to acquire a manufacturing concern. Preliminary due diligence has resulted in the company engaging in final negotiations to purchase the assets and long term non-cancelable contracts of the said manufacturing concern. Talks are underway to secure long term equity/debt financing to facilitate a successful acquisition of the same. The "good faith deposit" of $100,000.00 will be refunded to the Company in it's
entirety upon closing or upon CGI Holding Corporation foregoing the said acquisition at its option. The conclusion of the said acquisition is estimated at six to eight weeks.
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keep in mind 8 weeks ended last week
Let me know what you think
Robert.... |
