SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D. C. 20549
FORM 10-Q
QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
FOR QUARTER ENDED March 31, 1997 Commission file number 0-7376
Hynes & Howes Insurance Counselors, Inc.
(Exact name of registrant as specified on its charter)
Iowa 42-0948341
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
2920 Harrison St., Davenport, Iowa 52803
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (319) 326-6401
Indicate by check mark whether the registrant (1) has filed all annual,
quarterly and other reports required to be filed with the Commission and (2)
has been subject to the filing requirements for
at least the past 90 days. Yes XX No .
Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the close of the period covered by this report.
11,226,699
HYNES & HOWES INSURANCE COUNSELORS, INC.
Notes to Financial Statements
March 31, 1997
Note 1. Filing of Forms 8-K
A form 8-K was not required to be filed for the quarter reporting
any unusual charges or credits to the income or change in auditors.
Note 2. Tanglefoot Apartment Contract Payoff
During February, 1997, the contract receivable from Sale of
Tanglefoot Apartments was paid off and the mortgage payable on the
apartments was also paid off. Proceeds from the payoffs was used to
purchase thirteen (13) real estate contracts receivable.
Note 3. Management Analysis of Income From Operations
Income from operations for the six months ended March 31, 1997
decreased $4,790 from the six month period ended March 31, 1996.
Interest income decreased $6,415 and interest expenses decreased
$9,750. Management fees decreased $3,250. Legal fees increased
$4,159. These changes in interest are due primarily to the payoffs
of Tanglefoot Apartment contract and the mortgage payables. The
increase in legal fees and other operating expenses are due to the
legal fees involved with the payoffs and repairs needed on the real
estate contracts purchased.
The income from operations for the three months ended March 31, 997
is approximately $15,500 less than for the preceeding three months
ended December 31, 1996. This decrease is due primarily to the
payoffs of Tanglefoot Apartment contract and mortgage payable
referred to in the above paragraph.
HYNES & HOWES INSURANCE COUNSELORS, INC.
Part II: Other information
There were no events during this quarter that would be reportable
under the Items 1 through 8 of the Form 10-Q for Registrant.
Item 9. Exhibits and Reports on Form 8-K
There were no 8-K's filed during the quarter for which this report is
filed.
Regulation S-X, Section 10-01 (b) (8)
This interim financial statement reflects all adjustments which
are, in the opinion of management, necessary to a fair statement
of the results for the interim period. The corporation has
no bonus or profit sharing arrangements to be settled at year-end.
SIGNATURES
Pursuant to the requirements of the Securities Act of 1934, the Registrant
has duly caused this report to be signed on its behalf by the undersigned
thereunto duly authorized.
HYNES & HOWES INSURANCE COUNSELORS, INC.
By:_____________________________________
Harold L. Luebken, President
This corporation has no treasurer.
Dated___________________ By:_____________________________________
Harold L. Luebken, Director
HYNES & HOWES INSURANCE COUNSELORS, INC.
Computation of Earnings (Loss) Per Common Share
For the Three Months and Six Months Ended March 31, 1997 and 1996
(Unaudited)
Three Months Ended Six Months Ended
March 31, March 31,
1997 1996 1996 1997
Common Shares Outstanding:
Beginning of Period 11,226,699 11,226,699 11,226,699 11,226,699
End of Period 11,226,699 11,226,699 11,226,699 11,226,699
Average Number of Shares
Outstanding for the Period 11,226,699 11,226,699 11,226.699 11,226,699
Net Income (Loss) $ (5,943) $ 1,220 $ 3,666 $ 7,586
Earnings (Loss) Per Common Share:
Net Income $ 0.00 $ 0.00 $ 0.00 $ 0.01
HYNES & HOWES INSURANCE COUNSELORS, INC.
Balance Sheet
March 31, 1997 and 1996
(Unaudited)
March 31,
1997 1996
Assets
Current Assets:
Cash in Bank $ 8,736 $ 26,494
Other Current Assets 7,708 14,500
Total Current Assets $ 16,444 $ 40,994
Investments:
Investment in Affiliated Company $ 2,720 $ 2,720
Contracts Receivable-Sale of Tanglefoot
Apartments -0- 1,550,750
Contracts Receivable-Real Estate 624,868 127,426
Real Estate on Hand 33,433 -0-
Total Investments $ 661,021 $ 1,680,896
Total Assets $ 677,465 $ 1,721,890
Liabilities and Stockholders' Equity
Current Liabilities:
Buyers Escrow $ 9,180 $ 41,746
Loans Payable -0- 10,000
Total Current Liabilities $ 9,180 $ 51,746
Long Term Liabilities:
Mortgage Payable-Tanglefoot Apartments $ -0- $ 1,013,337
Total Long Term Liabilities $ -0- $ 1,013,337
Total Liabilities $ 9,180 $ 1,065,083
Stockholders' Equity:
Capital Stock, no par value, 100,000,000 shares
authorized, 11,260,675 shares issued $ 3,780,765 $ 3,780,765
Paid in Capital 100 100
Retained Earnings (Deficit) (3,079,328) (3,090,806)
Treasury Stock, at cost (33,252) (33,252)
Total Stockholders' Equity $ 668,285 $ 656,807
Total Liabilities and Stockholders'
Equity $ 677,465 $ 1,721,890
HYNES & HOWES INSURANCE COUNSELORS, INC.
Statement of Operations
For the Three Months and Six Months Ended March 31, 1997 and 1996
(Unaudited)
The following Statements of Operations of Hynes & Howes Insurance Counselors,
Inc. for the three months and six months ended March 31, 1997 and 1996,
reflect, in the opinion of the Company, all adjustments (which include only
normal recurring adjustments) necessary to present fairly the results of
operations for such periods. The results for interim periods are not
necessarily indicative of results to be expected for the year.
Three Months Ended Six Months Ended
March 31, March 31,
1997 1996 1997 1996
Operating Income:
Interest $34,601 $42,412 $77,876 $84,291
Other Income 194 8 930 8
Total Operating Income $34,795 $42,420 $78,806 $84,299
Operating Expenses:
Interest $16,822 $25,508 $41,517 $51,275
Management Fees 9,750 13,000 16,250 19,500
Legal and Audit 7,530 254 8,980 1,704
Other Operating Expenses $ 6,636 $ 2,438 $ 8,393 $ 4,234
Total Operating Expenses$40,738 $41,200 $75,140 $76,713
Income (Loss) from Operations(5,943) 1,220 3,666 7,586
Provision for Income Taxes $ 0 $ 0 $ 0
Net Income (Loss) $(5,943) $ 1,220 $ 3,666 $ 7,586
Earnings Per Common Share $ 0 $ 0 $ 0 $ 0
Dividends per Common Share $ 0 $ 0 $ 0 $ 0
HYNES & HOWES INSURANCE COUNSELORS, INC.
Statement of Cash Flow
For the Six Months Ended March 31, 1997 and 1996
Increase (Decrease) in Cash and Cash Equivalents
(Unaudited)
Three Months Ended
March 31,
1996 1995
Cash Flows from Operating Activities:
Interest Received $ 77,876 $ 84,291
Other Income Received 930 8
Interest Paid (41,517) (51,275)
Legal, Audit and Management Fees Paid (25,230) (21,204)
Cash Paid to Suppliers for
Operating Expenses (8,393) (4,234)
Net Cash Provided
by Operating Activities $ 3,666 $ 7,586
Cash Flow from Investing Activities:
Principal Collected on Sale of Tanglefoot
Apartments Contract $1,557,240 5,672
Purchase of Real Estate Contracts (504,492) (404)
Purchase of Real Estate (33,433) 0
Payment of Real Estate Mortgage (991,555) (20,725)
Buyers Escrow Received (Paid) (4,716) (5,767)
Tax Certificates Collected 2,547 553
Net Cash Provided (Used)
by Investing Activities $ 25,591 $ (20,671)
Cash Flow from Financing Activities:
Loan Proceeds $ 0 $ 10,000
Loan Paid (27,000) 0
Net Cash Provided by
Financing Activities $ (27,000) $ 10,000
Net Increase (Decrease) in Cash
and Cash Equivalents $ 2,257 $ (3,085)
Cash & Cash Equivalents at
Beginning of Period $ 6,479 $ 29,579
Cash and Cash Equivalents at End of Period $ 8,736 $ 26,494
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