FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
[ x ] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended: September 30, 1995
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from _______ to ________
Commission File Number: 0-9204
MINERAL DEVELOPMENT, INC.
(Exact name of registrant as specified in its charter)
Texas 74-1492779
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
9400 N. Central
Ste. 1209, L.B. 196
Dallas, Texas
75231
(Address of principal executive offices)
(Zip Code)
(214)368-2084
(Registrant's telephone number, including area code)
Indicate by check mark whether the registrant (1) has
filed all reports required to be filed by Section 13 or 15(d)
of the Securities Exchange Act of 1934 during the preceding
12 months (or for such 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 NO ___
Indicate the number of shares outstanding of each of
the issuer's classes of common stock, as of September 30, 1995.
Class: Common stock $0.01 par value per share
Outstanding at September 30, 1995: 3,375,721 shares
<PAGE>
MINERAL DEVELOPMENT, INC.
INDEX
Page
Number
Part I. Financial Information:
Item 1. Financial Statements
Condensed Balance Sheet - September 30, 1995
(Unaudited) and March 31, 1995 2
Condensed Statement of Operations
Three Months Ended September 30, 1995 and 1994
and Six Months Ended September 30, 1995 and 1994
(Unaudited) 3
Condensed Statement of Cash Flows - Three
Months Ended September 30, 1995 and 1994 (Unaudited) 4
Notes to Financial Statements 5
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of Operations 6
Part II. Other Information:
Item 6. Exhibits and Reports on Form 8-K 7
Signatures 7
-1-
<PAGE>
Part I. Financial Information
Item 1. Financial Statements
MINERAL DEVELOPMENT, INC.
CONDENSED BALANCE SHEET
<TABLE>
<CAPTION>
September 30, March 31,
1995 1995
------------- ---------
(Unaudited)
ASSETS
<S> <C> <C>
CURRENT ASSETS:
Cash $ 67,764 $ 145,728
Accounts Receivable 449,626 430,467
Other 1,193 1,193
---------- ----------
TOTAL CURRENT ASSETS 518,583 577,388
PROPERTY AND EQUIPMENT, AT COST:
Undeveloped oil and gas properties 100,778 119,352
Proved developed oil and gas
properties, based on successful
efforts method 5,482,424 5,443,617
Office and field equipment 363,205 350,728
---------- ----------
5,946,407 5,913,697
Allowance for depreciation,
depletion and amortization (4,910,406) (4,849,537)
---------- ----------
1,036,001 1,064,160
---------- ----------
TOTAL ASSETS $1,554,584 $1,641,548
========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable $ 591,602 $ 327,959
Joint interest prepayments 22,763 270,216
Revenues and royalties payable 52,466 35,729
Current portion of long-term debt 16,492 18,530
---------- ----------
TOTAL CURRENT LIABILITIES 683,323 652,434
LONG TERM DEBT, LESS CURRENT PORTION 16,578 15,675
STOCKHOLDERS' EQUITY:
Common stock, $0.01 par value;
25,000,000 shares authorized,
3,375,721 shares issued and
outstanding 33,757 33,757
Capital in excess of par value 8,844,005 8,844,005
Deficit (8,023,079) (7,904,323)
---------- ----------
TOTAL STOCKHOLDERS' EQUITY 854,683 973,439
---------- ----------
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $1,554,584 $1,641,548
========== ==========
See accompanying notes to financial statements.
</TABLE>
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<PAGE>
MINERAL DEVELOPMENT, INC.
CONDENSED STATEMENT OF OPERATIONS (UNAUDITED)
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
September 30, September 30,
------------------ -----------------
1995 1994 1995 1994
---- ---- ---- ----
<S> <C> <C> <C> <C>
REVENUES:
Oil and gas $ 179,379 $ 170,532 $ 367,193 $ 353,208
Management fees and other 68,293 61,225 134,543 112,885
Gain on disposition of
properties -- 3,728 -- 5,798
--------- --------- --------- ---------
247,672 235,485 501,736 471,891
COSTS AND EXPENSES
Oil and gas production
costs 117,057 105,036 217,455 208,535
Dry hole and abandonment
costs 21,533 603 26,115 857
Depreciation, depletion
and amortization 30,435 22,482 60,869 46,045
General and administrative 162,448 120,100 313,719 212,144
Interest 1,080 946 2,334 1,965
--------- --------- --------- ---------
332,553 249,167 620,492 469,546
--------- --------- --------- ---------
NET INCOME (LOSS) $ (84,881) $ (13,682) $(118,756) $ 2,345
========= ========= ========= =========
INCOME (LOSS) PER COMMON
SHARE $ (.03) $ -- $ (.04) $ --
========= ========= ========= =========
Weighted average shares
outstanding 3,375,721 3,175,721 3,375,721 3,125,721
See accompanying notes to financial statements.
</TABLE>
-3-
<PAGE>
MINERAL DEVELOPMENT, INC.
CONDENSED STATEMENT OF CASH FLOWS (UNAUDITED)
<TABLE>
<CAPTION>
Six Months Ended
September 30,
----------------
1995 1994
---- ----
<S> <C> <C>
Cash flows from operating activities:
Net income (loss) $(118,756) $ 2,345
Adjustments to reconcile net income
(loss) to net cash provided (used)
by operating activities:
Depreciation, depletion and
amortization 60,869 46,045
Gain on disposition of property
and equipment -- (5,798)
Net increase in receivables (19,159) (18,265)
Net increase in accounts payable
and other current liabilities 32,927 317,910
--------- --------
Net cash provided (used) by
operating activities (44,119) 342,237
Cash flows from investing activities:
Additions to property and equipment (51,869) (108,301)
Proceeds from disposition of
property and equipment 31,160 17,737
--------- --------
Net cash provided (used) by
investing activities (20,709) (90,564)
Cash used by financing activities:
Payments of long-term debt (13,136) (16,234)
Proceeds from sale of common
stock -- 125,000
--------- --------
Net cash provided (used) by
financing activities (13,136) 108,766
--------- --------
Net increase (decrease) in cash (77,964) 360,439
Cash at beginning of year 145,728 83,263
--------- --------
Cash at end of period $ 67,764 $443,702
========= ========
Supplemental information:
Interest paid $ 2,334 $ 1,965
========= ========
Federal income tax paid $ -- $ --
========= ========
See accompanying notes to financial statements.
</TABLE>
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<PAGE>
MINERAL DEVELOPMENT, INC.
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 1995
1 - Income Per Common Share
The income per common share was computed by dividing the net
income for each period by the weighted average number of common
shares outstanding during the quarter. Common stock options are not
considered as common stock equivalents as their effect would be
anti-dilutive.
2 - Statement by Management Concerning Interim Financial
Information
The financial information included herein is unaudited and
does not include all information and footnotes required by
generally accepted accounting principles for complete financial
statements; however, such information reflects all adjustments
(consisting solely of normal recurring adjustments), which are, in
the opinion of management, necessary to a fair statement of the
results for the interim period.
-5-
<PAGE>
Item 2.
MINERAL DEVELOPMENT, INC.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
Financial Condition
Changes in the Company's financial condition since March 31,
1995 are related primarily to the effects of well completions and
workover activities and to increased general and administrative
costs. The Company's cash flow is used primarily for property
acquisitions, well workovers and capital expenditures on new wells.
Management is of the opinion that the Company's cash flow and
ability to raise additional capital will be adequate to meet its
current obligations as well as fund additional property
acquisitions, new projects, and generation and/or participation in
new drilling and recompletion work.
Results of Operations
Revenues for the three months ended September 30, 1995 were
$247,672 compared with $235,485 for the corresponding period of the
prior fiscal year, a 5% increase. This was primarily due to the
increase in Oil & Gas revenue from new wells which more than offset
normal production declines and somewhat lower oil and gas prices.
The $29,845, or 6%, increase in revenues for the six moths ended
September 30, 1995 versus the prior period was due primarily to an
increase in Management Fees from increased drilling and completion
activity for the current period. Costs and expenses for the six
months ended September 30, 1995 increased $150,946, or 32%, from
$469,546 in the prior period to $620,492 in the current period.
This was primarily due to a $101,575 increase in General &
Administrative costs as a result of the hiring of the new Chairman
of the Board, President and CEO in August, 1994, and to increased
engineering consulting work done for the Company. In addition,
there was $26,115 in Dry Hole & Abandonment costs for the current
period versus $857 in the prior period due primarily to the
drilling of an exploratory dry hole in the second quarter of the
current fiscal year. The net income for the six months ended
September 30, 1995 and 1994, $(118,756) and $2,345, respectively,
represent $(.04) and $.00 per share.
-6-
<PAGE>
PART II. OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits
27 Financial Data Schedule
(b) Reports on Form 8-K - There were no reports on Form 8-K
filed for the three months ended September 30, 1995.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of
1934, the registrant has duly caused this report to be signed in
its behalf by the undersigned thereunto duly authorized.
MINERAL DEVELOPMENT, INC.
(Registrant)
Date: November 14, 1995 /s/ Glenn L. Seitz
Glenn L. Seitz, Treasurer
-7-
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
This schedule contains summary financial information extracted from the
unaudited financial statements for Mineral Development, Inc. as of and for the
six-month period ended September 30, 1995 and is qualified in its entirety by
reference to such financial statements.
</LEGEND>
<MULTIPLIER> 1
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> MAR-31-1995
<PERIOD-START> APR-01-1995
<PERIOD-END> SEP-30-1995
<CASH> 67,764
<SECURITIES> 0
<RECEIVABLES> 449,626
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 518,583
<PP&E> 5,946,407
<DEPRECIATION> 4,910,406
<TOTAL-ASSETS> 1,554,584
<CURRENT-LIABILITIES> 683,323
<BONDS> 0
<COMMON> 33,757
0
0
<OTHER-SE> 820,926
<TOTAL-LIABILITY-AND-EQUITY> 1,554,584
<SALES> 367,193
<TOTAL-REVENUES> 501,736
<CGS> 0
<TOTAL-COSTS> 332,553
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 2,334
<INCOME-PRETAX> (118,756)
<INCOME-TAX> (118,756)
<INCOME-CONTINUING> (118,756)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (118,756)
<EPS-PRIMARY> (.04)
<EPS-DILUTED> (.04)
</TABLE>
