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, 1998 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, 1998
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 six months ended March 31, 1998
decreased $6,036 as compared to the six month period ended March 31,
1997.
Interest income decreased $43,102 and interest expense decreased
$41,317. These decreases were the result of the interest receivable
for sale of Tanglefoot Apartments being paid in full and part of the
proceeds being used to pay off the mortgage payable.
Management fees increased $3,250. Six months management fees were
paid in 1998 and only five months were paid in 1997.
Legal fees decreased $7,321 due to the payoff of Tanglefoot
Apartments and the acquisition of real estate contracts in 1997.
Other operating expenses increased due to repairs needed on
properties acquired on real estate contracts.
The income from operations for the three months ended March 31, 1998
is $4,650 less than for the preceding three months ended December 31,
1997. The decrease is due primarily to the repairs that were made on
properties acquired on real estate contracts.
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, 1998 and 1997
(Unaudited)
Three Months Ended Six Months Ended
March 31, March 31,
1998 1997 1998 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) $ (3,510) $ (5,943) $ (2,370) $ 3,666
Earnings (Loss) Per Common Share:
Net Income $ 0.00 $ 0.00 $ 0.00 $ 0.00
HYNES & HOWES INSURANCE COUNSELORS, INC.
Balance Sheet
March 31, 1998 and 1997
(Unaudited)
March 31,
1998 1997
Assets
Current Assets:
Cash in Bank $ 15,079 $ 8,736
Other Current Assets 5,736 7,708
Total Current Assets $ 20,815 $ 16,448
Investments:
Investment in Affiliated Company $ 2,720 $ 2,720
Contracts Receivable-Real Estate 609,051 624,868
Real Estate on Hand
Total Investments $ 642,943 $ 661,021
Total Assets $ 663,758 $ 677,465
Liabilities and Stockholders' Equity
Current Liabilities:
Buyers Escrow 5,894 9,180
Total Current Liabilities $ 5,894 $ 9,180
Total Liabilities $ 5,894 $ 9,180
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) (3,089,749) (3,079,328)
Treasury Stock, at cost (33,252) (33,252)
Total Stockholders' Equity $ 657,864 $ 668,285
Total Liabilities and Stockholders'
Equity $ 663,758 $ 677,465
HYNES & HOWES INSURANCE COUNSELORS, INC.
Statement of Operations
For the Three Months and Six Months Ended March 31, 1998 and 1997
(Unaudited)
The following Statements of Operations of Hynes & Howes Insurance Counselors,
Inc. for the three months and six months ended March 31, 1998 and 1997,
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,
1998 1997 1998 1997
Operating Income:
Interest $17,480 $34,601 $34,774 $77,876
Other Income 5 194 232 930
Total Operating Income $17,485 $34,795 $35,006 $78,806
Operating Expenses:
Interest $ 0 $16,822 $ 0 $41,517
Management Fees 9,750 9,750 19,500 16,250
Legal and Audit 353 7,530 1,659 8,980
Other Operating Expenses $10,892 $ 6,636 $16,217 $ 8,393
Total Operating Expenses$20,995 $40,738 $37,376 $75,140
Income (Loss) from Operations(3,510) (5,943) (2,370) 3,666
Provision for Income Taxes$ 0 $ 0 $ 0 $ 0
Net Income (Loss) $(3,510) $(5,943) $(2,370) $ 3,666
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, 1998 and 1997
Increase (Decrease) in Cash and Cash Equivalents
(Unaudited)
Six Months Ended
March 31,
1998 1997
Cash Flows from Operating Activities:
Interest Received $ 34,774 $ 77,876
Other Income Received 232 930
Interest Paid -0- (41,517)
Legal, Audit and Management Fees Paid (21,159) (25,230)
Cash Paid to Suppliers for
Operating Expenses (16,217) (8,393)
Net Cash Provided
by Operating Activities $ (2,370) $ 3,666
Cash Flow from Investing Activities:
Principal Collected on Sale of Tanglefoot
Apartments Contract -0- 1,557,240
Purchase of Real Estate Contracts -0- (504,492)
Principal Collected on Real Estate
Contracts 6,515 -0-
Purchase and Sale of Real Estate (net) 676 (33,433)
Payment of Real Estate Mortgage -0- (991,555)
Buyers Escrow Received (Paid) (1,851) (4,716)
Tax Certificates Collected 1,434 2,547
Net Cash Provided (Used)
by Investing Activities $ 6,774 $ 25,591
Cash Flow from Financing Activities:
Loan Paid $ -0- $ (27,000)
Net Cash Provided (Used)
by Financing Activities $ -0- $ (27,000)
Net Increase (Decrease) in Cash
and Cash Equivalents $ 4,404 $ 2,257
Cash & Cash Equivalents at
Beginning of Period $ 10,675 $ 6,479
Cash and Cash Equivalents at End of Period $ 15,079 $ 8,736
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> SEP-30-1998
<PERIOD-END> MAR-31-1998
<CASH> 15,079
<SECURITIES> 2,720
<RECEIVABLES> 609,051
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 5,736
<PP&E> 31,172
<DEPRECIATION> 0
<TOTAL-ASSETS> 663,758
<CURRENT-LIABILITIES> 5,894
<BONDS> 0
0
0
<COMMON> 3,780,765
<OTHER-SE> 100
<TOTAL-LIABILITY-AND-EQUITY> 663,758
<SALES> 0
<TOTAL-REVENUES> 35,006
<CGS> 0
<TOTAL-COSTS> 37,376
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> (2,370)
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (2,370)
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
