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 June 30, 1999 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
June 30, 1999
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 nine months ended June 30, 1999
decreased $12,495 as compared to the nine month period ended June 30,
1998.
Interest income decreased $7,092 and other income increased $1,572.
Legal fees increased $885 and other operating expenses increased
$6,090. The increase in other operating expenses was due primarily
to increased repair and maintenance expense.
The income from operations for the three months ended June 30, 1999
is $2,986 more than for the preceding three months ended March 31,
1999. Interest income decreased $2,927 and other operating expenses
decreased $5,210.
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:_____________________________________
Jan M. Forrest, President
This corporation has no treasurer.
Dated___________________ By:_____________________________________
Jan M. Forrest, Director
HYNES & HOWES INSURANCE COUNSELORS, INC.
Computation of Earnings (Loss) Per Common Share
For the Three Months and Nine Months Ended June 30, 1999 and 1998
(Unaudited)
Three Months Ended Nine Months Ended
June 30, June 30,
1999 1998 1999 1998
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) $ (1,992) $ 14,010 $ (855) $ 11,640
Earnings (Loss) Per Common Share:
Net Income $ 0.00 $ 0.00 $ 0.00 $ 0.00
HYNES & HOWES INSURANCE COUNSELORS, INC.
Balance Sheet
June 30, 1999 and 1998
(Unaudited)
June 30,
1999 1998
Assets
Current Assets:
Cash in Bank $ 45,605 $ 46,958
Other Current Assets 10.111 5,805
Total Current Assets $ 55,716 $ 52,763
Investments:
Investment in Affiliated Company $ 2,720 $ 2,720
Contracts Receivable-Real Estate 522,364 592,263
Real Estate on Hand 102,883 33,728
Total Investments $ 627,967 $ 628,711
Total Assets $ 683,683 $ 681,474
Liabilities and Stockholders' Equity
Current Liabilities:
Buyers Escrow 7,664 9,600
Total Current Liabilities $ 7,664 $ 9,600
Total Liabilities $ 7,664 $ 9,600
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) (3,071,594) (3,075,739)
Treasury Stock, at cost (33,252) (33,252)
Total Stockholders' Equity $ 676,019 $ 671,874
Total Liabilities and Stockholders'
Equity $ 683,683 $ 681,474
HYNES & HOWES INSURANCE COUNSELORS, INC.
Statement of Operations
For the Three Months and Nine Months Ended June 30, 1999 and 1998
(Unaudited)
The following Statements of Operations of Hynes & Howes Insurance Counselors,
Inc. for the three months and nine months ended June 30, 1999 and 1998,
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 Nine Months Ended
June 30, June 30,
1999 1998 1999 1998
Operating Income:
Interest $13,984 $25,911 $53,593 $60,685
Other Income 1,303 709 2,513 941
Total Operating Income $15,287 $26,620 $56,106 $61,626
Operating Expenses:
Management Fees 9,750 9,750 29,250 29,250
Legal and Audit 634 438 2,982 2,097
Other Operating Expenses $ 6,895 $ 2,422 $24,729 $18,639
Total Operating Expenses$17,279 $12,610 $56,961 $49,986
Income (Loss) from Operations(1,992) 14,010 (855) 11,640
Provision for Income Taxes$ 0 $ 0 $ 0 $ 0
Net Income (Loss) $(1,992) $14,010 $ (855) $11,640
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 Nine Months Ended June 30, 1999 and 1998
Increase (Decrease) in Cash and Cash Equivalents
(Unaudited)
Nine Months Ended
June 30,
1999 1998
Cash Flows from Operating Activities:
Interest Received $ 53,593 $ 60,685
Other Income Received 2,513 941
Legal, Audit and Management Fees Paid (32,232) (31,347)
Cash Paid to Suppliers for
Operating Expenses (24,729) (18,639)
Net Cash Provided (Used)
by Operating Activities $ (855) $ 11,640
Cash Flow from Investing Activities:
Principal Collected on Real Estate
Contracts 117,244 23,304
Purchase and Sale of Real Estate (net) (102,882) (1,880)
Buyers Escrow Received (Paid) (24) 2,354
Tax Certificates Collected (Purchased) (2,061) 1,365
Other Liabilities Paid 0 (500)
Net Cash Provided (Used)
by Investing Activities $ 12,277 $ 24,643
Net Increase (Decrease) in Cash
and Cash Equivalents $ 11,422 $ 36,283
Cash & Cash Equivalents at
Beginning of Period $ 34,183 $ 10,675
Cash and Cash Equivalents at End of Period $ 45,605 $ 46,958
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