US SECURITIES AND EXCHANGE COMMISSION
WASHINGTON DC 20549
FORM 10-QSB
[X] QUARTERLY REPORT UNDER SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
for the period-ended March 31, 1998
[ ] TRANSITION REPORT UNDER SECTION 13 OR 15 (d)
OF THE CHANGE ACT
for the transition period __________ to _________
Commission file number 1-7991
BIG SKY TRANSPORTATION CO.
(exact name of registrant as specified in its charter)
MONTANA 81-0387503
(state of other jurisdiction of (I.R.S. employer
incorporation or organization) identification no.)
1601 Aviation Place
Billings Logan Int'l Airport
Billings MT 59105
(406) 245-9449
(address of registrant's principal executive offices)
check whether the issuer (1) has filed all reports required to be filed by
Section 13 or 15 (d) of the Securities Exchange Act of 1934 during the past
12 months (or shorter period that the registrant was required to file such
reports), and (2) has been subject to such filing requirements for the past
90 days. YES [x]
State the number of shares outstanding of each of the issuer's classes of
common stock, as of the latest practicable date.
CLASS: Common Stock, no par value
SHARES OUTSTANDING: at May 08, 1998: 1,127,947
<PAGE>
BIG SKY TRANSPORTATION CO.
FORM 10-QSB
For the Period-Ended March 31, 1998
CONTENTS
Part I Financial Information
Item 1. Condensed Financial Statements:
Balance Sheets
March 31, 1998 (unaudited) and June 30, 1997 (audited)
Statements of Operations
Three months-ended and Nine months-ended
March 31, 1998 and 1997 (unaudited)
Statements of Cash flows
Nine months-ended March 31, 1998 and 1997 (unaudited)
Notes to Unaudited Financial Statements
Item 2. Management's Discussion and Analysis or
Plan of Operation
Part II Other Information
Item 6. Exhibits and reports on Form 8-K
<PAGE>
Part I. Financial Information, Item 1.
BIG SKY TRANSPORTATION CO.
Balance Sheets
March 31, June 30,
1998 1997
ASSETS (unaudited) (audited)
Current Assets:
Cash $ 623,688 $ 544,706
Restricted cash 151,404 600,151
Accounts receivable, net 863,128 416,192
Expendable parts/supplies 287,402 254,282
Inventory held for sale 30,000 30,000
Prepaid expenses 122,223 --
Total current assets 2,077,845 1,845,331
Property & Equipment:
Flight equipment 433,873 612,108
Capital lease facility 456,185 456,185
Other property & equipment 187,345 187,497
1,077,403 1,255,790
Accumulated depreciation (258,246) (554,916)
Net property & equipment 819,157 700,874
Other assets 8,251 17,258
Total assets $ 2,905,253 $ 2,563,463
===================================
LIABILITIES & STOCKHOLDERS' EQUITY
Current Liabilities:
Current long-term debt $ 188,802 $ 132,674
Current capital lease 7,991 11,639
Accounts payable 281,123 64,213
Accrued expenses 374,772 701,034
Traffic payable 110,296 43,155
Total current liabilities 962,984 952,715
Long-term debt, excluding current 249,998 263,765
Capital lease, excluding current 269,277 275,379
Total liabilities 1,482,259 1,491,859
Stockholders' Equity
Common stock of no par value
authorized 20,000,000 shares;
1,127,947 shares outstanding 481,722 471,207
Additional Paid-In Capital 239,753 110,159
Retained earnings 725,372 490,238
Less Treasury Stock,at cost (23,853) --
Stockholders' equity 1,422,994 1,071,604
Total liabilities & equity $ 2,905,253 $ 2,563,463
===================================
see notes to financial statements
<PAGE>
BIG SKY TRANSPORTATION CO.
Statements of Operations
Three months-ended Nine months-ended
March 31, March 31,
1998 1997 1998 1997
(unaudited)(unaudited) (unaudited)(unaudited)
Operating Revenues:
Passenger $ 946,315 $ 400,828 $2,290,638 $1,188,589
Charter 17,431 -- 17,431 5,900
Cargo 36,831 35,364 95,515 72,628
Public service 1,156,033 785,552 3,148,916 2,311,197
Other 15,579 13,925 51,637 52,999
Total $2,172,189 $1,225,669 $5,604,137 $3,631,313
Operating Expenses:
Flying 820,893 378,182 2,159,393 1,167,141
Maintenance 439,824 276,281 1,160,815 809,825
Passenger service 426,769 187,969 1,112,312 733,760
Sales 140,211 127,704 353,699 216,144
General/Admin. 184,084 129,231 476,496 378,676
Depreciation 24,601 20,206 67,429 61,056
Total $2,036,382 $1,119,573 $5,330,144 $3,366,602
Operating Income (Loss) 135,807 106,096 273,993 264,711
Other Income/(expenses):
Interest, net (9,525) (8,009) (25,799) (27,378)
Gain (loss) equipment -- 2,655 146,637 (10,625)
Total (9,525) (5,354) 120,838 (38,003)
Income (loss) before taxes 126,282 100,742) 394,831 226,708
Income Tax Expense:
Current 9,351 6,686 30,103 16,169
Charge in lieu of taxes 42,242 30,201 129,594 73,040
Total 51,593 36,887 159,697 89,209
Net Income (loss): $ 74,689 $ 63,855 $ 235,134 $ 137,499
=============================================
Per share data:
Income per common and
common equivalent share .07 .06 .21 .13
Weighted average number
of common & common
equivalent shares
outstanding less
Treasury stock 1,107,947 1,047,828 1,107,947 1,047,828
See notes to financial statements.
<PAGE>
BIG SKY TRANSPORTATION CO.
Statements of Cash Flows
Nine months-ended
March 31,
1998 1997
(unaudited) (unaudited)
From operating activities:
Net income (loss) $ 235,134 $ 137,499
Depreciation 67,429 61,056
(Gain) loss on equipment (146,637) 10,625
Excess reorganization value
amortization and charges
in lieu of taxes 98,606 73,040
Changes in assets/liabilities:
Restricted cash 448,747 (87,693)
Accounts receivable (446,936) (5,811)
Expendable parts (33,120) (2,438)
Prepaid expenses (122,223) (18,904)
Accounts Payable 216,910 (43,103)
Accrued expenses (326,262) 170,376
Traffic payable 67,141 3,487
Net cash provided by operations 58,789 298,134
From investing activities:
Proceeds from equipment 233,288 359
Property & equipment (221,853) (8,039)
Net cash(used) provided
by investing 11,435 (7,680)
From financing activities:
Treasury stock purchased (23,853) --
Payments on long-term debt 42,361 (96,166)
Payments on capital lease (9,750) (11,921)
Net cash (used) provided by
financing 8,758 (108,087)
Net cash increase (decrease) 78,982 182,367
Cash at beginning of period 544,706 360,668
Cash at end of period $ 623,688 $ 543,035
==================================
Supplement disclosures of
cash flow information:
Cash paid during the period for:
Interest $ 52,476 $ 54,007
Income taxes 18,166 --
See notes to financial statements
<PAGE>
BIG SKY TRANSPORTATION CO.
Notes to Financial Statements
NOTE A. The accompanying unaudited condensed financial statements have been
prepared by the Company in accordance with its understanding of the
rules and regulations of the Securities and Exchange Commission.
These financial statements reflect, in the opinion of management,
all adjustments (consisting only of recurring accruals) for fair
presentation of the results of operations for the interim periods
presented. However, these financial statements have been prepared
in accordance with instructions to Form 10-QSB and therefore, do
not include all information and footnotes necessary for a fair
presentation of financial position, statement of operations and
cash flows in conformity with generally-accepted accounting
principles. It is recommended that these interim financial
statements be read in conjunction with the financial statements and
notes thereto, included in the Company's latest annual report on
Form 10-KSB.
NOTE B. Earnings per share is based on the weighted average number of
common and common equivalent shares outstanding. The effect of
common stock equivalents is anti-dilutive and therefore not
presented.
NOTE C. Results of operations for the three months-ended and the nine
months-ended March 31, 1998 and 1997 are not necessarily indicative
of the results to be expected for the full year.
NOTE D. Certain reclassifications have been made to the 1997 numbers to
conform to the 1998 presentations.
NOTE E. The lease agreement provisions related to the Company's newly
acquired fleet of Metro III aircraft require that the Company make
monthly engine reserve payments to the lessors to fund scheduled
hot section inspections and engine overhaul/CAMP inspections. The
funds are held by the lessors until used to either pay the
maintenance provider directly or reimburse the Company for paying
the provider. The various leases provide that the engine reserve
payments will be renegotiated between the parties from time to time
throughout the term of the lease to insure that the reserve
payments are adequate to fund the future engine maintenance events.
To better reflect these lease provisions, the Company has changed
the method by which it accounts for engine reserve payments by
charging maintenance expense for each engine hour flown at its
applicable hourly reserve rate in the period flown. Also as part
of this change, restricted cash and accrued expenses were both
reduced by $138,948 in the period ended March 31, 1998. There was
no effect on net income as a result of this change. The
Company believes that this new method of accounting for engine
reserves more appropriately reflects the Company's liability for,
and interest in, the engine reserve payments, and provides an
appropriate expense recognition to the period incurred.
<PAGE>
PART I. Financial Information, Item 2.
BIG SKY TRANSPORTATION CO.
Management's Discussion and Analysis or
Plan of Operation
Summary of Airline Operating Statistics:
Three months-ended Nine months-ended
March 31, March 31,
% change %change
1998 1997 +/(-) 1998 1997 +/(-)
Passengers carried 11,755 5,912 98.8 30,128 19,156 57.3
Average passenger
trip (miles) 208 195 6.7 207 196 5.6
Revenue passenger
miles 2,446,253 1,153,651 112.0 6,235,931 3,745,628 66.5
Available seat
miles (scheduled) 7,878,312 3,682,824 114.1 19,889,778 11,307,185 75.9
Available seat
miles (charter) 8,360 -- 100.0 8,360 9,825 (14.9)
Total available
seat miles 7,886,672 3,682,824 114.1 19,889,778 11,307,185 75.9
Passenger load
factor (%) 31.0 31.3 (0.9) 31.4 33.1 (5.4)
Aircraft miles 414,648 251,522 64.9 1,106,403 770,844 43.5
Operating breakeven
load factor (%) 29.1 28.6 1.7 29.8 30.7 (2.9)
Yield per revenue
passenger mile (cents) 38.7 341.7 11.3 36.7 31.7 15.8
Operating cost per
available seat mile
(cents) 27.5 33.3 (17.2) 28.2 32.1 (12.3)
Freight pounds
enplaned 54,233 23,253 133.2 142.222 58,230 144.2
<PAGE>
BIG SKY TRANSPORTATION CO.
Management's Discussion and Analysis or
Plan of Operation
Analysis of Results for the three months-ended March 31, 1998 and 1997:
OPERATING REVENUES:
1998 1997 Difference
----------------------------------------
Passenger $ 946,315 $ 400,828 $ 545,487
Charter 17,431 -- 17,431
Cargo 36,831 25,364 11,467
Public Service 1,156,033 785,552 370,481
Other 15,579 13,925 1,654
Total 2,172,189 1,225,669 946,520
Total operating revenues in the third quarter of fiscal year 1998 totaled
$2.17 million, versus $1.23 million in the same quarter of fiscal year 1997.
Passenger revenues of $946,315 in the quarter were $545,487, or 136% greater
than the same quarter last year. Freight revenue of $36,831 and charter
revenue of $17,431 were greater than the corresponding 1997 quarter by
$11,467 (45%), and $17,431 respectively. The increases in passenger and
freight revenues were attributable to the new services between Billings MT
and Helena and Missoula MT initiated during the second quarter of fiscal
1998. There were not any charter flights operated in the third quarter of
1997. Revenue passengers enplaned during the quarter ended March 31, 1998
totaled 11,755, an increase of 5,843 or 99%, over the same quarter in 1997.
The average passenger fare during the quarter of $80.50 was $12.70, or 19%
greater than the average passenger fare during the same quarter of 1997.
Public service revenues in the third quarter of fiscal year 1998 were
$1,156,033, compared to $785,552 during the same quarter of fiscal year 1997.
The increase of $370,481, or 47%, was the result of an enhanced Essential Air
Service contract entered into with the Department of Transportation effective
October 1, 1997. The new contract restored service levels to markets that
had been cut during a program-wide reduction implemented in November 1995,
and provided for an upgrade in the type of aircraft used to provide the
service.
<PAGE>
BIG SKY TRANSPORTATION CO.
Management's Discussion and Analysis or
Plan of Operation
Analysis of Results for the three months-ended March 31, 1998 and 1997
(continued):
OPERATING EXPENSES
1998 1997 Difference
----------------------------------------------
Flying $ 820,893 $ 378,182 $ 442,711
Maintenance 439,824 276,281 163,543
Passenger Service 426,769 246,906 179,863
Sales 140,211 68,767 71,444
General/admin 184,084 129,231 54,853
Depreciation 24,601 20,206 4,395
Total 2,036,382 1,119,573 916,809
Total operating expenses in the third quarter totaled $2.04 million compared
to $1.12 million in the third quarter of fiscal 1997. All expense categories
experienced an increase primarily as a result of the expansion of the fleet
from three Metro II aircraft and one Cessna 402C aircraft in the third
quarter of 1997 to six Metro III aircraft in the same period in 1998, and the
expanded EAS and Western MT services added in October 1997.
Flying operations expense showed the greatest increase of $442,711, or 117%.
The primary reasons for this increase were twofold. First, aircraft lease
expense, aircraft hull insurance and aircraft property taxes increased
directly as a result of the expanded and upgraded fleet. Secondly,
additional flight crews and fuel were required to support the expanded
services in the EAS markets and new Western MT service.
Maintenance expense increased by $163,543, or 59%, over the third quarter
1997. The increase was attributable to a 62% increase in block hours flown
during the quarter, 2,240 versus 1,382, and higher than normal non-scheduled
engine repairs in the third quarter of 1998.
Passenger service expense increased by $179,863, or 72% in the third quarter
of fiscal 1998 compared to the same period in 1997. The increase is
primarily attributable to the increased services in the EAS markets, costs
associated with the Western MT services initiated in October 1997, and an
increase in air traffic insurance costs associated with the larger fleet of
higher capacity aircraft.
<PAGE>
BIG SKY TRANSPORTATION CO.
Management's Discussion and Analysis or
Plan of Operation
Analysis of Results for the three months-ended March 31, 1998 and 1997
(continued):
Sales expense increased by $71,444, or 103%, over the third quarter of 1997.
This increase is attributed to higher travel agency commission expense and
computer reservation services ("CRS fee") associated with the increased
passengers, 99%, and passenger revenues, 136%.
General and administrative expense was $54,853, or 42%, greater than the
third quarter of fiscal 1997. The primary reasons for the increase were
increased salaries and wages associated with bonuses paid under the 1996 team
incentive plan, costs associated with the transition period to a new
President/CEO, and to a lesser extent, legal fees.
Depreciation expense was $4,395, or 21%, greater than the third quarter of
fiscal 1997 due to Global Positioning Systems ("GPS") installed on the
aircraft, and the purchase of a spare aircraft engine to support the fleet.
Analysis of Results for the nine months-ended March 31, 1998 and 1997:
OPERATING REVENUES
1998 1997 Difference
-----------------------------------------
Passenger $2,290,638 $1,188,589 $1,102,049
Charter 17,431 5,900 11,531
Cargo 95,515 72,628 22,887
Public Service 3,148,916 2,311,197 837,719
Other 51,637 52,999 (1,362)
Total 5,604,137 3,631,313 1,972,824
Operating revenues in the nine months ended March 1998 were $5.60 million, an
increase of $1.97 million, or 54% , over the comparable prior year period.
Passenger revenues and public service revenues increased over the prior
period by $1,102,049 (92%), and $837,719 (36%), respectively. The increases
are the result of the new Western MT services and the enhanced EAS contract
services that were both implemented in October 1997. Cargo revenues and
charter revenues were greater than the prior year nine month period by
$22,887 (31%), and $11,531 (195%), respectively.
<PAGE>
BIG SKY TRANSPORTATION CO.
Management's Discussion and Analysis or
Plan of Operation
Analysis of Results for the nine months-ended March 31, 1998 and 1997
(continued):
OPERATING EXPENSES
1998 1997 Difference
------------------------------------------
Flying $2,159,393 $1,167,141 $ 992,252
Maintenance 1,160,815 809,825 350,990
Passenger Service 1,112,312 733,760 378,552
Sales 353,699 216,144 137,555
General/admin 476,496 378,676 97,820
Depreciation 67,429 61,056 6,373
Total 5,330,144 3,366,602 1,963,542
Operating expenses for the nine months ended March 1998 were $5.33 million,
an increase of $1.96 million, or 58%, over the comparable prior year period.
Consistent with the quarterly results, the increases were realized across all
expense categories during the period. The primary reasons for the increase
in expense are attributed to the increased number of, and upgraded fleet of
aircraft, and the additional services, passengers, and revenues commencing in
October 1997. To a much lesser extent, the nine month period ended March
1998 also was impacted by the costs associated with the transition to the new
fleet type, the return of the former fleet of Metro II aircraft to their
lessors, and the start up of the Western MT routes.
Flying operations expense in the nine month period increased by $992,252, or
85%, over the nine months ended March 1997. A majority of the increase is
attributed to increased aircraft lease expense ($521,080), aircraft hull
insurance ($106,576), and property taxes ($44,819), all of which are related
to the fleet changes. The remainder of the increase is in pilot wages and
related expenses, and fuel expense, directly related to the increased flying
associated with the EAS service enhancements and the new Western MT
services.
Maintenance expense increased by $350,990, or 43%, over the comparable period
ended March 1997. The increase in expenses resulted primarily from the
larger fleet size, increased flying, and the cost associated with returning
the former fleet of Metro II aircraft.
Passenger service expense increased by $378,552, or 51%, in the nine months
ended March 1998 versus the same period in 1997. Increases in airport
station and related costs associated with the additional EAS service and new
Western MT service, as well as direct passenger related costs associated with
the 57% increase in passengers carried in the period caused the change.
<PAGE>
BIG SKY TRANSPORTATION CO.
Management's Discussion and Analysis or
Plan of Operation
Analysis of Results for the nine months-ended March 31, 1998 and 1997
(continued):
Sales expense during the period increased $137,555, or 63%, over 1997. The
increase is directly attributed to travel agency commissions and CRS fees
associated with the 92% increase in passenger revenues realized in the nine
month period. The revenue increase was accomplished by the combination of a
57% increase in passengers and a 16% increase in yield.
General and administrative expense increased by $97,820, or 25%, in the 1998
nine month period compared to the 1997 period. The vast majority of this
increase is attributable to legal fees, and salaries and related expenses.
Depreciation expense in the nine months ended March 1998 were $6,373, or 10%,
greater than the comparable period ended March 1997. This attributable to
the aforementioned GPS installations, and spare engine acquisition.
<page
Big Sky Transportation CO.
Management's Discussion and Analysis or
Plan of Operations
Liquidity and Capital Resources:
Net non-operating expense was $61,118 for the three months ended March 1998,
compared to $42,241 for the March 1997 quarter. Pursuant to Chapter 11
Reorganization "Fresh Start" reporting, a $42,242 charge in lieu of tax was
recorded in the March 1998 quarter compared to $30,201 in the March 1997
period.
The quarter ended March 1998 generated an operating income of $135,807, and
net income of $74,689, compared to operating income of $106,096 and net
income of $63,855 during the same period in 1997. For the nine months ended
March 1998 operating income was $273,993 and net income was $235,134 as
compared to $264,711 and $137,499 in the same period of fiscal year 1997.
A review of current liquidity and capital resources are as follows:
Working Capital Current Ratio
Year-end June 30, 1997 $ 892,616 1.9:1
Quarter-end March 31, 1998 $1,114,861 2.2:1
Long-Term Debt Stockholder's
(excluding current portion) Equity
Year-end June 30, 1997 $ 529,144 $1,071,604
Quarter-end March 31, 1998 $ 519,275 $1,422,994
Stockholder equity at March 31, 1998 increased 32.8% over the balance at the
end of fiscal year 1997. The Company is in compliance with all provisions of
its Chapter 11 Plan of Reorganization confirmed on July 16, 1991. In
September, 1997, the Company made the sixth of eight annual scheduled
payments to its unsecured creditors under the Plan of Reorganization.
<PAGE>
BIG SKY TRANSPORTATION CO.
Management's Discussion and Analysis or
Plan of Operation
Liquidity and Capital Resources (continued):
Cash provided by operations in the nine months ended March 31, 1998 was
$58,789. In general, the accounts receivable balance is increasing due to
the larger number of passengers carried and revenues earned on non-EAS
services. Accounts payable and air traffic liabilities are also increasing,
but at slower rates. These conditions were expected as a result of the
expanded services provided by the Company. Cash provided by investing
activities was $11,435 during the period. Proceeds from the sale of a Cessna
402C aircraft and other related parts was nearly offset entirely by the
purchase of a spare engine for the Metro III fleet and other rotable aircraft
parts. Cash provided from financing activities was $8,758 in the nine month
period. Cash used to pay down long-term debt, capital lease obligations,and
to purchase treasury stock was offset by the proceeds from a 36 month note
from First Interstate Bank and Trust Co. of Billings to finance the purchase
of the spare engine.
The Company has established a line of credit through First Interstate Bank
and Trust Co. of Billings. To date this line has not been utilized. The
Company also received a $150,000 advance on subsidy from the DOT to
supplement cash flow during start up of the enhanced EAS service. This
advance is being reimbursed in equal monthly installments through subsidy
offsets through November 30, 1998.
The Company's EAS contract expires November 30, 1998. The Company has held
this contract through two year renewals since 1980. Preparations for
contract renewal negotiations with the DOT are underway. Negotiations are
expected to begin in the fourth quarter of fiscal 1998, and conclude in the
first quarter of fiscal 1999. Loss of this contract would be material.
Subsequent to March 31, 1998, the Company further expanded operations in
Western MT by initiating service between Billings and Helena to Kalispell
effective May 4. The Company continues to seek profitable expansion and
other new business opportunities.
<PAGE>
Part II. Other Information
BIG SKY TRANSPORTATION CO.
Item 6. Exhibits and reports on Form 8-K
Exhibit No. Exhibit Name
18 Letter re change in accounting
principles
27 Financial Data Schedule
(only for filings via EDGAR)
Reports on Form 8-K
A report on form 8-K was filed on January 14, 1998 under item 5.
<PAGE>
BIG SKY TRANSPORTATION CO.
Signature
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
BIG SKY TRANSPORTATION CO.
registrant
By: /s/ Kim B. Champney
Kim B. Champney
President & CEO
May 14, 1998
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> JUN-30-1998
<PERIOD-END> MAR-31-1998
<CASH> 775,092
<SECURITIES> 0
<RECEIVABLES> 864,328
<ALLOWANCES> 1,200
<INVENTORY> 287,402
<CURRENT-ASSETS> 2,077,845
<PP&E> 1,077,403
<DEPRECIATION> 258,246
<TOTAL-ASSETS> 2,905,253
<CURRENT-LIABILITIES> 962,984
<BONDS> 249,998
0
0
<COMMON> 481,722
<OTHER-SE> 965,125
<TOTAL-LIABILITY-AND-EQUITY> 2,905,253
<SALES> 0
<TOTAL-REVENUES> 5,604,137
<CGS> 0
<TOTAL-COSTS> 5,330,144
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 25,799
<INCOME-PRETAX> 394,831
<INCOME-TAX> 159,697
<INCOME-CONTINUING> 235,134
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 235,134
<EPS-PRIMARY> .21
<EPS-DILUTED> .21
</TABLE>
May 14, 1998
Big Sky Transportation Co.
1601 Aviation Pl.
Billings MT 59105
Dear Sirs/Madams:
At your request, we have read the description included in your Form
10-QSB for the quarter ended March 31, 1998, of the facts relating
to your change in accounting for engine overhaul reserve payments
for the Company's leased aircraft. We believe, on the basis of the
facts so set forth and other information furnished to us by
appropriate officials of the Company, that the accounting change
described in your Form 10-QSB is to an alternative accounting
principle that is preferable under the circumstances.
We have not audited any financial statements of Big Sky
Transportation Co. as of any date or for any period subsequent to
June 30, 1997. Therefore, we are unable to express, and we do not
express, an opinion on the facts set forth in the above-mentioned
Form 10-QSB, on the related information furnished to us by
officials of the Company, or on the financial position, results of
operations, or cash flows of Big Sky Transportation Co. as of any
date or for any period subsequent to June 30, 1997.
Yours truly,
Eide Bailly LLP
/s/ John W. Jacobsen
John W. Jacobsen, Partner
glw
401 N 31st St. Suite 1120 PO Box 7112 Billings, Montana 59103
406.252.5111 800.824.9797 fax 406.252.8600
Offices in Arizona, Iowa, Montana, North Dakota and South Dakota
Equal Opportunity Employer
Member NEXIA International
