ASSETS
|
|
|
|
2016
|
|
Investment Property:
|
|
|
|
|
Land
|
|
$
|
161,443
|
|
Building and Improvements
|
|
|
1,049,908
|
|
Machinery and Equipment
|
|
|
11,106
|
|
Furniture and Fixtures
|
|
|
10,251
|
|
Total Cost
|
|
$
|
1,232,708
|
|
Less: Accumulated Depreciation
|
|
|
950,963
|
|
Net Book Value
|
|
$
|
281,745
|
|
Other Assets:
|
|
|
|
|
Cash and Cash Equivalents
|
|
$
|
1,759,153
|
|
Accounts Receivable
|
|
|
1,603
|
|
Prepaid Expenses and Other Assets
|
|
|
57,142
|
|
Deferred Lease Incentive (Net of Accumulated Amortization - $ 46,388)
|
|
|
8,834
|
|
Loan Costs, (Less Accumulated Amortization of $6,620)
|
|
|
4,115
|
|
Deferred Tax
|
|
|
39,824
|
|
Total Other Assets
|
|
$
|
1,870,671
|
|
|
|
|
|
|
TOTAL ASSETS
|
|
$
|
2,152,416
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS’ EQUITY
|
Liabilities:
|
|
|
|
|
Mortgage and Notes Payable
|
|
$
|
1,082,065
|
|
Accounts Payable and Accrued Expenses
|
|
|
166,356
|
|
Tenant’s Deposits and Advance Rent
|
|
|
76,267
|
|
Income Tax Payable
|
|
|
16,597
|
|
Total Liabilities
|
|
$
|
1,341,285
|
|
|
|
|
|
|
Shareholders’ Equity:
|
|
|
|
|
Common Stock - $.05 par, 5,000,000 shares Authorized; 5,000,000 shares issued and Outstanding
|
|
$
|
250,000
|
|
Paid-In Capital
|
|
|
1,212,102
|
|
Deficit
|
|
|
(650,971
|
)
|
|
|
|
|
|
Total Shareholders’ Equity
|
|
$
|
811,131
|
|
|
|
|
|
|
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY
|
|
$
|
2,152,416
|
|
See Accompanying Notes
to Financial Statements.
MILLER INDUSTRIES, INC.
BALANCE SHEET
April 30, 2015
ASSETS
|
|
|
|
2015
|
|
Investment Property:
|
|
|
|
|
Land
|
|
$
|
161,443
|
|
Building and Improvements
|
|
|
1,049,908
|
|
Machinery and Equipment
|
|
|
11,106
|
|
Furniture and Fixtures
|
|
|
10,251
|
|
Total Cost
|
|
$
|
1,232,708
|
|
Less: Accumulated Depreciation
|
|
|
942,049
|
|
Net Book Value
|
|
$
|
290,659
|
|
Other Assets:
|
|
|
|
|
Cash and Cash Equivalents
|
|
$
|
1,665,063
|
|
Accounts Receivable
|
|
|
2,525
|
|
Prepaid Expenses and Other Assets
|
|
|
64,498
|
|
Refundable Income taxes
|
|
|
|
|
Deferred Lease Incentive (Net of Accumulated Amortization - $
37,366)
|
|
|
17,856
|
|
Loan Costs (Less Accumulated Amortization of $5,815)
|
|
|
4,920
|
|
Deferred Tax
|
|
|
39,824
|
|
Total Other Assets
|
|
$
|
1,794,686
|
|
|
|
|
|
|
TOTAL ASSETS
|
|
$
|
2,085,345
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS’ EQUITY
|
Liabilities:
|
|
|
|
|
Mortgage and Notes Payable
|
|
$
|
1,115,500
|
|
Accounts Payable and Accrued Expenses
|
|
|
194,700
|
|
Tenant’s Deposits and Advance Rent
|
|
|
20,755
|
|
Income Taxes payable
|
|
|
|
|
|
|
|
|
|
Total Liabilities
|
|
$
|
1,411,780
|
|
|
|
|
|
|
Shareholders’ Equity:
|
|
|
|
|
Common Stock - $.05 par, 5,000,000 shares Authorized; 5,000,000 shares issued and Outstanding
|
|
$
|
250,000
|
|
Paid-In Capital
|
|
|
1,212,102
|
|
Deficit
|
|
|
(788,537
|
)
|
|
|
|
|
|
Total Shareholders’ Equity
|
|
$
|
673,565
|
|
|
|
|
|
|
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY
|
|
$
|
2,085,345
|
|
See Accompanying Notes
to Financial Statements.
MILLER INDUSTRIES, INC.
STATEMENT OF OPERATIONS
FOR THE THREE MONTHS ENDED JANUARY 31,
2016 AND 2015
(UNAUDITED
|
|
1/31/16
|
|
|
1/31/15
|
|
Revenues:
|
|
|
|
|
|
|
|
|
Rental Income
|
|
$
|
145,592
|
|
|
$
|
145,487
|
|
Other Income
|
|
|
1,503
|
|
|
|
1,374
|
|
|
|
|
|
|
|
|
|
|
Total Revenues
|
|
$
|
147,095
|
|
|
$
|
146,861
|
|
|
|
|
|
|
|
|
|
|
Expenses:
|
|
|
|
|
|
|
|
|
Rental Expenses (Except Interest)
|
|
$
|
44,918
|
|
|
$
|
60,652
|
|
Administrative
|
|
|
11,221
|
|
|
|
12,315
|
|
Interest
|
|
|
7,657
|
|
|
|
7,969
|
|
|
|
|
|
|
|
|
|
|
Total Expenses
|
|
$
|
63,796
|
|
|
$
|
80,936
|
|
|
|
|
|
|
|
|
|
|
Income Before Tax Provision
|
|
$
|
83,299
|
|
|
$
|
65,925
|
|
|
|
|
|
|
|
|
|
|
Provision (Benefit) for Income Tax:
|
|
|
|
|
|
|
|
|
Federal Income Tax
|
|
$
|
27,000
|
|
|
$
|
20,000
|
|
State Income Tax
|
|
|
4,000
|
|
|
|
2,500
|
|
|
|
|
|
|
|
|
|
|
Total Provision for Income Tax
|
|
$
|
31,000
|
|
|
$
|
22,500
|
|
Net Income
|
|
$
|
52,299
|
|
|
$
|
43,425
|
|
|
|
|
|
|
|
|
|
|
Income per Common Share (Basic)
|
|
$
|
.01
|
|
|
$
|
.01
|
|
|
|
|
|
|
|
|
|
|
Average Shares of Common Stock Outstanding
|
|
|
5,000,000
|
|
|
|
5,000,000
|
|
See Accompanying Notes to Financial
Statements.
MILLER INDUSTRIES, INC.
STATEMENT OF OPERATIONS
FOR THE NINE MONTHS ENDED JANUARY 31,
2016 AND 2015
(UNAUDITED)
|
|
1/31/16
|
|
|
1/31/15
|
|
Revenues:
|
|
|
|
|
|
|
|
|
Rental Income
|
|
$
|
442,722
|
|
|
$
|
413,893
|
|
Other Income
|
|
|
4,454
|
|
|
|
3,533
|
|
|
|
|
|
|
|
|
|
|
Total Revenues
|
|
$
|
447,176
|
|
|
$
|
417,426
|
|
|
|
|
|
|
|
|
|
|
Expenses:
|
|
|
|
|
|
|
|
|
Rental Expenses (Except Interest)
|
|
$
|
175,122
|
|
|
$
|
117,348
|
|
Administrative
|
|
|
34,767
|
|
|
|
37,635
|
|
Interest
|
|
|
21,722
|
|
|
|
22,832
|
|
|
|
|
|
|
|
|
|
|
Total Expenses
|
|
$
|
231,611
|
|
|
$
|
237,815
|
|
|
|
|
|
|
|
|
|
|
Income Before Tax Provision
|
|
$
|
215,565
|
|
|
$
|
179,611
|
|
|
|
|
|
|
|
|
|
|
Provision (Benefit) for Income Tax:
|
|
|
|
|
|
|
|
|
Federal Income Tax
|
|
$
|
68,000
|
|
|
$
|
55,000
|
|
State Income Tax
|
|
|
10,000
|
|
|
|
7,500
|
|
|
|
|
|
|
|
|
|
|
Total Provision for Income Tax
|
|
$
|
78,000
|
|
|
$
|
62,500
|
|
|
|
|
|
|
|
|
|
|
Net Income
|
|
$
|
137,565
|
|
|
$
|
117,111
|
|
|
|
|
|
|
|
|
|
|
Income per Common Share (Basic)
|
|
$
|
.02
|
|
|
$
|
.02
|
|
|
|
|
|
|
|
|
|
|
Average Shares of Common Stock Outstanding
|
|
|
5,000,000
|
|
|
|
5,000,000
|
|
See Accompanying Notes to Financial
Statements.
MILLER INDUSTRIES, INC.
STATEMENT OF CASH FLOWS
FOR THE NINE MONTHS ENDED JANUARY 31,
2016 AND 2015
(UNAUDITED)
|
|
1/31/16
|
|
|
1/31/15
|
|
Cash Flows from Operating Activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income
|
|
$
|
137,565
|
|
|
$
|
117,111
|
|
Adjustments to Reconcile Net Income to Net Cash
|
|
|
|
|
|
|
|
|
Provided by (used for) Operating Activities:
|
|
|
|
|
|
|
|
|
Provision for Bad Debts
|
|
|
|
|
|
|
|
|
Depreciation
|
|
|
8,914
|
|
|
|
8,914
|
|
Amortization
|
|
|
9,022
|
|
|
|
7,430
|
|
Deferred Tax Asset Valuation Adjustment
|
|
|
|
|
|
|
|
|
Changes in Operating Assets and Liabilities
|
|
|
(27,975
|
)
|
|
|
(8,908
|
)
|
|
|
|
|
|
|
|
|
|
Net Cash Provided by Operating Activities
|
|
$
|
127,526
|
|
|
$
|
124,547
|
|
|
|
|
|
|
|
|
|
|
Cash Flows from Investing Activities:
|
|
|
|
|
|
|
|
|
Acquisition of Property, Equipment, and Intangible
|
|
$
|
|
|
|
$
|
|
|
|
|
|
|
|
|
|
|
|
Net Cash (used by) Investing Activities
|
|
$
|
|
|
|
$
|
|
|
|
|
|
|
|
|
|
|
|
Cash Flows from Financing Activities:
|
|
|
|
|
|
|
|
|
Principal Payments Under Borrowings
|
|
$
|
(33,435
|
)
|
|
$
|
(33,435
|
)
|
Proceeds from Stock option purchase
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Cash Provided by (used by) Financing Activities
|
|
$
|
(33,435
|
)
|
|
$
|
(33,435
|
)
|
|
|
|
|
|
|
|
|
|
Net Increase in Cash and Cash Equivalents
|
|
$
|
94,091
|
|
|
$
|
91,112
|
|
|
|
|
|
|
|
|
|
|
Cash and Cash Equivalents at the Beginning of Year
|
|
|
1,665,062
|
|
|
|
1,512,931
|
|
Cash and Cash Equivalents at the End of Quarter
|
|
$
|
1,759,153
|
|
|
$
|
1,604,043
|
|
|
|
|
|
|
|
|
|
|
Additional Cash Flow Information:
|
|
|
|
|
|
|
|
|
Cash Payments During the Year
|
|
|
|
|
|
|
|
|
Interest
|
|
$
|
23,255
|
|
|
$
|
22,834
|
|
Income Taxes
|
|
$
|
82,158
|
|
|
$
|
20,140
|
|
See Accompanying Notes to Financial Statements.
MILLER INDUSTRIES, INC.
NOTES TO FINANCIAL STATEMENTS
JANUARY 31, 2016
(UNAUDITED)
NOTE A – BASIS OF PRESENTATION
The accompanying unaudited financial statements
have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions
to Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted
accounting principles for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring
accruals) considered necessary for a fair presentation have been included. Operating results for the nine month period ending January
31, 2016 are not necessarily indicative of results that may be expected for the year ended April 30, 2016.
For further information refer to the financial
statements and footnotes thereto of the Company as of April 30, 2015 and for the year ended April 30, 2015.
NOTE B - Earnings Per Share -
Basic earnings per share
(“EPS”) is computed by dividing net income available to common stockholders by the weighted-average number of common
shares outstanding during the period, excluding the effects of any potentially dilutive securities. Diluted EPS gives effect to
all dilutive potential of shares of common stock outstanding during the period including stock options or warrants, using the treasury
stock method (by using the average stock price for the period to determine the number of shares assumed to be purchased from the
exercise of stock options or warrants). Diluted EPS excludes all dilutive potential of shares of common stock if their effect is
anti-dilutive.
NOTE C - Use of Estimates
-
The preparation of financial statements
in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the
amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. The most
significant estimates included in the preparation of the financial statements are related to income taxes, asset lives, accruals
and valuation allowances.
ITEM 2. MANAGEMENT’S
DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Results of Operations
(First Three Quarters of 2016 Fiscal Year compared to First Third Quarters of 2015 Fiscal Year)
Rental Income
.
The Company’s results of operations are primarily dependent upon the rental income which it receives from leasing space in
its building. Rental income is a function of the percentage of the building which is occupied and the level of rental rates. Rental
income through the third quarter of 2015 was $414,000, compared to $443,000 in the third quarter of 2016.
Other Income
.
The Company generated other income of $3,533 through the third quarter of fiscal year 2015 and $4,454 through the third quarter
of 2016. Other income in these quarters consisted of interest income and miscellaneous income.
Rental Expense (Excluding
Interest).
The Company incurs rental expense in connection with the leasing of its building. These expenses consist of management
fees, insurance, real estate taxes, depreciation and amortization, maintenance and repairs, utility costs and outside services.
Rental expenses were $177,000 through the third quarter of 2015 and $175,000 through the third quarter of 2016.
Administrative Expenses.
The Company’s administrative expenses were $38,000 in the first three quarters of fiscal years 2015 and $35,000 for 2016.
Interest Expense
.
The Company pays interest on the mortgage loan on its building. Interest expense on the loan was $23,000 in the first three quarters
of fiscal years 2015 and $21,500 for 2016.
Provision for Income
Taxes.
The Company had a tax provision of $62,500 in the first three quarters of fiscal 2015 and $78,000 in 2016.
Net Income.
As
a result of the foregoing factors, the Company had net income of $117,000 in the first three quarters of fiscal 2015 and $138,000
in first three quarters of 2016.
Liquidity and Capital
Resources
The Company’s cash
increased by $91,000 during the first nine months of fiscal year 2015 compared to an increase of $94,000 during the first nine
months of fiscal year 2016. As of January 31, 2016, the Company’s cash position was approximately $1,759,000.
Current Operations
The Company operates
as a real estate investment and management company. The Company is currently seeking to obtain additional commercial tenants for
its existing building.
The Company’s principal
operating expenses consist of management and professional fees associated with the administration of the Company, interest expense
on the Company’s mortgage loan, real estate taxes and insurance.
ITEM 4. CONTROLS AND
PROCEDURES
In connection with the
filing of this Form 10-Q, the Company’s Chief Executive Officer and Chief Financial Officer evaluated the effectiveness of
the Company’s disclosure controls and procedures as of January 31, 2016. The Company’s Chief Executive Officer and
Chief Financial Officer concluded that the Company’s disclosure controls and procedures were effective as of January 31,
2016.
There were no changes
in the Company’s internal controls over financial reporting that materially affected, or are reasonably likely to materially
affect, the Company’s internal control over financial reporting during the fiscal quarter ended January 31, 2016.