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, 2000 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, 2000
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, 2000
increased $1,620 as compared to the six month period ended March 31,
1999.
Interest income increased $2,454 and other income increased $1,631.
Legal and accounting fees increased $9,534.
The income from operations for the three months ended March 31, 2000
is $7,735 greater than for the three months ended December 31, 1999.
The increase is due primarily to the following:
Interest income increased $4,295.
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:_____________________________________
Cindy S. Kepford, President
This corporation has no treasurer.
Dated___________________ By:_____________________________________
Cindy S. Kepford, Director
HYNES & HOWES INSURANCE COUNSELORS, INC.
Computation of Earnings (Loss) Per Common Share
For the Three Months and Six Months Ended March 31, 2000 and 1999
(Unaudited)
Three Months Ended Six Months Ended
March 31, March 31,
2000 1999 2000 1999
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) $ 1,205 $ (4,978) $ 2,757 $ 1,137
Earnings (Loss) Per Common Share:
Net Income $ 0.00 $ 0.00 $ 0.00 $ 0.00
HYNES & HOWES INSURANCE COUNSELORS, INC.
Balance Sheet
March 31, 2000 and 1999
(Unaudited)
March 31,
2000 1999
Assets
Current Assets:
Cash in Bank $ 15,557 $ 50,189
Other Current Assets 28,712 8,050
Total Current Assets $ 44,269 $ 58,239
Investments:
Investment in Affiliated Company $ 2,877 $ 2,720
Contracts Receivable-Real Estate 686,888 621,615
Notes Receivable 0 2,297
Equipment 7,347 0
Total Investments $ 697,112 $ 626,632
Total Assets $ 741,381 $ 684,871
Liabilities and Stockholders' Equity
Current Liabilities:
Buyers Escrow 7,761 6,861
Contract Payable 3,889 0
Total Current Liabilities $ 11,650 $ 6,861
Long Term Liabilities
Contracts Payable 14,656 0
Total Liabilities $ 26,306 $ 6,861
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) (3,032,538) (3,069,603)
Treasury Stock, at cost (33,252) (33,252)
Total Stockholders' Equity $ 715,075 $ 678,010
Total Liabilities and Stockholders'
Equity $ 741,381 $ 684,871
HYNES & HOWES INSURANCE COUNSELORS, INC.
Statement of Operations
For the Three Months and Six Months Ended March 31, 2000 and 1999
(Unaudited)
The following Statements of Operations of Hynes & Howes Insurance Counselors,
Inc. for the three months and six months ended March 31, 2000 and 1999,
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,
2000 1999 2000 1999
Operating Income:
Interest Income $21,207 $16,911 $42,063 $39,609
Other Income 1,651 1,064 2,841 1,210
Total Operating Income $22,858 $17,975 $44,904 $40,819
Operating Expenses:
Management Fees 12,000 9,750 21,750 19,500
Legal and Audit 5,390 1,098 11,882 2,348
Other Operating Expenses $ 4,263 $12,105 $ 8,515 $17,834
Total Operating Expenses$21,653 $22,953 $42,147 $39,682
Income (Loss) from Operations 1,205 (4,978) 2,757 1,137
Provision for Income Taxes$ 0 $ 0 $ 0 $ 0
Net Income (Loss) $ 1,205 $(4,978) $ 2,757 $ 1,137
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, 2000 and 1999
Increase (Decrease) in Cash and Cash Equivalents
(Unaudited)
Six Months Ended
March 31,
2000 1999
Cash Flows from Operating Activities:
Interest Received $ 42,063 $ 39,609
Other Income Received 2,841 1,210
Legal, Audit and Management Fees Paid (30,382) (21,848)
Cash Paid to Suppliers for
Operating Expenses (13,788) (17,834)
Net Cash Provided
by Operating Activities $ 734 $ 1,137
Cash Flow from Investing Activities:
Principal Collected on Real Estate
Contracts 177,640 17,993
Purchase/Sale of Real Estate Contracts (153,954) 0
Purchase of Note Receivable (15,000) (2,297)
Buyers Escrow Received (Paid) 293 (827)
Tax Certificates Collected 185 0
Principal Paid On Contracts Payable (304) 0
Net Cash Provided (Used)
by Investing Activities $ 8,860 $ 14,869
Net Increase (Decrease) in Cash
and Cash Equivalents $ 9,594 $ 15,006
Cash & Cash Equivalents at
Beginning of Period $ 5,963 $ 34,183
Cash and Cash Equivalents at End of Period $ 15,557 $ 50,189
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