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 December 31, 1996 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
December 31, 1996
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. Management's Analysis of Income From Operations
Income from operations for the three months ended December 31, 1996
increased $3,243 over the three month period ended December 31, 1995.
Interest income increased $1,396 and other income increased $736.
Interest expense decreased $1,072.
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 Ended December 31, 1996 and 1995
(Unaudited)
Three Months Ended
December 31,
1996 1995
Common Shares Outstanding:
Beginning of Period 11,226,699 11,226,699
End of Period 11,226,699 11,226,699
Average Number of Shares
Outstanding for the Period 11,226,699 11,226,699
Net Income (Loss) $ 9,609 $ 6,366
Earnings (Loss) Per Common Share:
Net Income $ 0 $ 0
HYNES & HOWES INSURANCE COUNSELORS, INC.
Balance Sheet
December 31, 1996 and 1995
(Unaudited)
December 31,
1996 1995
Assets
Current Assets:
Cash in Bank $ 21,501 $ 15,587
Other Current Assets 14,206 14,946
Total Current Assets $ 35,707 $ 30,533
Investments:
Investment in Affiliated Company $ 2,720 $ 2,720
Contracts Receivable-Sale of Tanglefoot
Apartments 1,541,942 1,553,618
Contracts Receivable-Real Estate 128,398 127,209
Total Investments $ 1,673,060 $ 1,683,547
Total Assets $ 1,708,767 $ 1,714,080
Liabilities and Stockholders' Equity
Current Liabilities:
Accounts Payable $ 1,296 $ 0
Buyers Escrow 25,994 34,664
Loans Payable 37,000 0
Total Current Liabilities $ 64,290 $ 34,664
Long Term Liabilities:
Mortgage Payable-Tanglefoot Apartments $ 970,250 $ 1,023,828
Total Long Term Liabilities $ 970,250 $ 1,023,828
Total Liabilities $ 1,034,540 $ 1,058,492
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) (3,073,386) (3,092,025)
Treasury Stock, at cost (33,252) (33,252)
Total Stockholders' Equity $ 674,227 $ 655,588
Total Liabilities and Stockholders'
Equity $ 1,708,767 $ 1,714,080
HYNES & HOWES INSURANCE COUNSELORS, INC.
Statement of Operations
For the Three Months Ended December 31, 1996 and 1995
(Unaudited)
The following Statements of Operations of Hynes & Howes Insurance Counselors,
Inc. for the three months ended December 31, 1996 and 1995, 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
December 31,
1996 1995
Operating Income:
Interest $ 43,275 $ 41,879
Other Income 736 0
Total Operating Income $ 44,011 $ 41,879
Operating Expenses:
Interest $ 24,695 $ 25,767
Management Fees 6,500 6,500
Legal and Audit 1,450 1,450
Other Operating Expenses $ 1,757 $ 1,796
Total Operating Expenses $ 34,402 $ 35,513
Income from Operations $ 9,609 $ 6,366
Provision for Income Taxes $ 0 $ 0
Net Income $ 9,609 $ 6,366
Earnings Per Common Share $ 0 0
Dividends per Common Share $ 0 $ 0
HYNES & HOWES INSURANCE COUNSELORS, INC.
Statement of Cash Flow
For the Three Months Ended December 31, 1996 and 1995
Increase (Decrease) in Cash and Cash Equivalents
(Unaudited)
Three Months Ended
December 31,
1996 1995
Cash Flows from Operating Activities:
Interest Received $ 43,275 $ 41,879
Other Income Received 736 0
Interest Paid (24,695) (25,767)
Legal, Audit and Management Fees Paid (7,950) (7,950)
Cash Paid to Suppliers for
Operating Expenses (461) (1,796)
Net Cash Provided
by Operating Activities $ 10,905 $ 6,366
Cash Flow from Investing Activities:
Principal Collected on Sale of Tanglefoot
Apartments Contract 3,498 2,804
Purchase of Real Estate Contracts (2,223) (187)
Payment on Real Estate Mortgage (21,305) (10,234)
Buyers Escrow Received (Paid) 12,098 (12,848)
Tax Certificates Collected 2,049 107
Net Cash Provided (Used)
by Investing Activities $ (5,883) $ (20,358)
Cash Flow from Financing Activities:
Loan Proceeds $ 10,000 $ 0
Net Cash Provided by
Financing Activities $ 10,000 $ 0
Net Increase (Decrease) in Cash
and Cash Equivalents $ 15,022 $ (13,992)
Cash & Cash Equivalents at
Beginning of Period $ 6,479 $ 29,579
Cash and Cash Equivalents at End of Period $ 21,501 $ 15,587
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