SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
X QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
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OF THE SECURITIES EXCHANGE ACT OF 1934
For Quarter Ended March 31, 1996 Commission File Number 09358
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
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OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from to
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TYREX OIL COMPANY
(Exact name of registrant as specified
in its charter)
WYOMING 83-0245581
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification
No.)
777 North Overland Trail, Suite 220, P.O. Box 2459
Casper, Wyoming 82602
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code 307-234-4260
NOT APPLICABLE
(Former name, former address and former fiscal year,
if changed since last report)
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
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Capital stock, 10,960,091 shares having a par value of $.01 per share were
outstanding as of May 1, 1996.
<PAGE>
TYREX OIL COMPANY
TABLE OF CONTENTS
Page Number
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PART I. FINANCIAL INFORMATION
Item 1. Financial Statements:
Report of Independent Certified Public Accountants i
Condensed Balance Sheets, March 31, 1996
(Unaudited) and June 30, 1995 ii
Statements of Operations for the three months
and nine months ended March 31, 1996
and 1995 (Unaudited) iii
Condensed Statements of Cash Flows for the nine
months ended March 31, 1996 and
1995 (Unaudited) iv
Notes to Condensed Financial Statements
(Unaudited) v
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of
Operations vi
PART II. OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K vii
Signatures viii
<PAGE>
PART I
FINANCIAL INFORMATION
<PAGE>
i
------------------------------------------------
HOCKER, LOVELETT, HARGENS & YENNIE, P.C.
-------------------------------
Certified Public Accountants
REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS
To the Board of Directors
Tyrex Oil Company
Casper, Wyoming
The accompanying condensed balance sheet of Tyrex Oil Company as of March 31,
1996, and the related statements of operations, and condensed statements of cash
flows for the nine and three month periods ended March 31, 1996 and 1995, were
not audited by us and, accordingly we do not express an opinion on them.
We have previously audited, in accordance with generally accepted auditing
standards, the balance sheet as of June 30, 1995, and the related statements of
operations and retained earnings and cash flows for the year then ended (not
presented herein); and in our report dated September 1, 1995, we expressed an
unqualified opinion on those financial statements. In our opinion, the
information set forth in the accompanying balance sheet as of June 30, 1995, is
fairly stated in all material respects in relation to the balance sheet from
which it has been derived.
/s/ Hocker, Lovelett, Hargens & Yennie, P.C.
Casper, Wyoming
May 1, 1996
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<TABLE>
ii
TYREX OIL COMPANY
CONDENSED BALANCE SHEETS
<CAPTION>
March 31 June 30,
1996 1995
(See Note
(Unaudited) Below)
<S> <C> <C>
ASSETS
CURRENT ASSETS
Cash and cash equivalents $ 467,963 $ 330,381
Certificates of deposit 5,000 5,000
Accounts receivable 174,270 123,237
Prepaid maintenance fees 946 1,810
Accrued interest receivabl 1,350 5,297
Total 649,529 465,725
OTHER ASSETS
Investment 81,890 91,897
Other - 521
Total 81,890 92,418
PROPERTY AND EQUIPMENT, at cost
Oil and gas properties - using
successful efforts method, net of
accumulated depreciation and depletion 2,168,703 2,392,508
Less: impairment allowance (40,603) (40,603)
2,128,100 2,351,905
Other equipment, net of accumulated depreciation 7,000 10,449
Total 2,135,100 2,362,354
Total $ 2,866,519 $ 2,920,497
<CAPTION>
LIABILITIES AND STOCKHOLDERS EQUITY
<S> <C> <C>
CURRENT LIABILITIES
Accounts payable $ 40,313 $ 41,975
Accrued expenses 108,161 108,550
Lease payable 2,779 4,268
Current portion of debt 42,000 163,205
Total 193,253 317,998
DEFERRED COMPENSATION 30,454 26,460
LONG-TERM DEBT 190,751 -
Total 414,458 344,458
STOCKHOLDERS EQUITY
Common stock, $.01 par value: authorized -
50,000,000 shares; issued and outstanding -
10,960,091 and 10,795,091 shares at March 31,
1996 and June 30, 1995, respectively 109,601 107,951
Additional paid-in capital 5,396,910 5,385,669
Retained (deficit) (3,048,463) (2,914,229)
2,458,048 2,579,391
Less: Treasury stock, at cost, 45,000 shares and
25,000 shares at March 31, 1996 and June 30,
1995, respectively (5,987) (3,352)
Total 2,452,061 2,576,039
Total $ 2,866,519 $ 2,920,497
<FN>
Note: The balance sheet at June 30, 1995 has been taken from the audited
financial statements at that date and condensed.
See accompanying notes to condensed financial statements.
</TABLE>
<PAGE>
<TABLE>
iii
TYREX OIL COMPANY
STATEMENTS OF OPERATIONS
(UNAUDITED)
<CAPTION>
For the Three Months For the Nine months
Ended March 31, Ended March 31,
1996 1995 1996 1995
<S> <C> <C> <C> <C>
REVENUES
Sales of oil and gas$ 316,443 $ 353,630 $ 935,983 $ 1,045,642
Sales of properties - - 3,281 -
Sales of wells - - 1,860 451,600
Sale of investments - - - 16,426
Interest income 1,308 2,468 3,516 7,362
Income from partnership (8,319) 22,101 11,529 47,603
Other 19,666 22,871 73,697 88,234
Total 329,098 401,070 1,029,866 1,656,867
COSTS AND EXPENSES
Production costs 184,634 151,477 497,472 460,700
Production taxes 27,517 40,218 94,489 123,263
Cost of properties sold - - 3,281 -
Cost of wells sold - - 2,729 254,607
Cost of investments sold - - - 11,526
General and administrative 71,486 74,551 243,970 256,659
Interest expense 5,451 3,752 14,992 29,213
Depreciation and depletion 82,434 92,992 208,559 284,921
Exploration 55,038 52,913 98,608 131,721
Total 426,560 415,903 1,164,100 1,552,610
(LOSS) INCOME BEFORE
INCOME TAXES (97,462) (14,833) (134,234) 104,257
INCOME TAXES
Current - - - -
Deferred - - - -
- - - -
NET (LOSS) INCOME $ (97,462) $ (14,833) $ (134,234) $ 104,257
DIVIDENDS PER SHARE $ - $ - $ - $ -
(LOSS) INCOME PER SHARE $ (.01) $ - $ (.01) $ .01
Weighted average shares of
common stock outstanding 10,960,091 10,795,091 10,877,291 10,795,091
<FN>
See accompanying notes to condensed financial statements.
</TABLE>
<PAGE>
<TABLE>
iv
TYREX OIL COMPANY
CONDENSED STATEMENTS OF CASH FLOWS
FOR THE NINE MONTHS ENDED MARCH 31, 1996 AND 1995
(UNAUDITED)
<CAPTION>
1996 1995
<S> <C> <C>
OPERATING ACTIVITIES:
Net (loss) income $ (134,234) $ 104,257
Charges not requiring cash:
Depreciation and depletion 208,559 284,921
Abandoned properties 78,853 87,520
Loss (Gain) on sale of assets 869 (201,893)
Decrease (Increase) in operating assets:
Prepaid maintenance fees 864 -
Accrued interest receivable 3,947 (1,830)
Accounts receivable (51,033) 46,885
Other assets 521 -
Increase (Decrease)in operating liabilities:
Accounts payable and accrued expenses (2,051) 84,003
Deferred compensation 3,994 2,205
Net cash provided by operating activities 110,289 406,068
INVESTING ACTIVITIES:
Acquisitions of property and equipment (66,168) (169,252)
Proceeds from sale of property and equipment 5,141 451,600
Proceeds from sale of investments - 16,426
Net revenue from investments 10,007 (14,066)
Net cash (used in) provided by investing
activities (51,020) 284,708
FINANCING ACTIVITIES:
Proceeds from borrowing 250,000 -
Repayment of loan principal and leases (181,943) (511,535)
Purchase of treasury stock (2,635) (3,352)
Issuance of stock bonuses 12,891 -
Net cash provided by (used in) financing
activities 78,313 (514,887)
INCREASE IN CASH 137,582 175,889
CASH AND CASH EQUIVALENTS
Beginning of period 330,381 200,675
End of period $ 467,963 $ 376,564
<FN>
See accompanying notes to condensed financial statements.
</TABLE>
<PAGE>
v
NOTES TO CONDENSED FINANCIAL STATEMENTS
(UNAUDITED)
1. Summary of Significant Accounting Policies
Refer to the Company's annual financial statements for the year ended
June 30, 1995, for a description of the accounting policies which have
been continued without change. Also, refer to the notes with those
annual statements for additional details of the Company's financial
condition, results of operations and changes in cash flows. The
details in those notes have not changed except as a result of normal
transactions in the interim.
2. Management Representation
In management's opinion, all adjustments necessary for a fair
presentation are reflected in the interim financial statements. Such
adjustments are of a normal recurring nature.
3. Interim Results of Operations
The results of operations for the period ended March 31, 1996, are not
necessarily indicative of the operating results for the full year.
<PAGE>
vi
TYREX OIL COMPANY
ITEM 2. MANAGEMENT'S DISCUSSION AND
ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
LIQUIDITY AND CAPITAL RESOURCES
- - -------------------------------
During the nine months ended March 31, 1996, the Company's working capital
increased by $308,500. In addition to new borrowings, the increase was due to
the refinancing and conversion of its bank obligations to long-term debt and
overall operating activities.
Management believes that the Company's liquidity is sufficient to meet the
future cash needs of operations. It is not anticipated that any material
amounts of nonproducing properties will be sold during the current year.
RESULTS OF OPERATIONS
- - ---------------------
Current Year-To-Date Compared to Corresponding Year-To-Date
- - -----------------------------------------------------------
The Company has incurred a net loss of $134,200 in the current period compared
to a net profit of $104,200 in the previous period. The difference can be
attributed to the sales of several producing properties in the previous period
and higher production expenses on the remaining properties. All other expenses
were lower due to reduced salaries, lower overhead, less depreciation and
depletion, and reduced interest charges.
Oil and gas revenues decreased by $109,700 or 12% due to the aforementioned
sales of producing properties in the previous year. Production costs were higher
due to unexpected equipment purchases and well repairs on operated properties as
well as nonoperated properties. Production taxes were lower due to decreased oil
and gas sales.
Exploration costs decreased by $33,100 or 25% when compared to the same period
one year ago. The decrease is attributable to fewer leases expiring during the
period and reduced rental payments due to the expired leases in the prior year.
Current Quarter Compared to Corresponding Quarter
- - -------------------------------------------------
Revenues for the quarter decreased by approximately $72,000 due to naturally
occurring production declines as well as reduced revenue from coal sales.
Production costs were higher for the quarter by $33,100 due to recompletion
attempts on two wells at Antelope field and unexpected well repairs as mentioned
above. Exploration costs were only slightly higher for the present quarter due
to more of the Company s nonproducing leases expiring in the present quarter
than the corresponding quarter.
Current Quarter Compared to Previous Quarter
- - --------------------------------------------
Revenues from oil and gas sales for the quarter increased slightly due to higher
oil prices. However, total revenues were down because of lower coal revenues and
reduced lease and/or property sales. Production expenses were higher because of
the two recompletion attempts at the Antelope field. General and administrative
costs decreased by $22,300 compared to the previous quarter, due to lower costs
associated with stockholder relations expense, and legal and accounting expenses
required for annual report preparation. Exploration costs increased due to the
expiration of more nonproducing leases in the current quarter versus last
quarter.
<PAGE>
vii
PART II
OTHER INFORMATION
ITEM 6. EXHIBITS AND REPORT ON FORM 8-K
A Form 8-K was not required to be filed in the period covered by this
report.
<PAGE>
viii
SIGNATURES
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.
TYREX OIL COMPANY
(Registrant)
/s/ Tom N. Richardson
------------------------------
Tom N. Richardson
President and Principal
Financial Officer
Date: 5/08/96
<PAGE>
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> JUN-30-1996
<PERIOD-END> MAR-30-1996
<CASH> 467,963
<SECURITIES> 0
<RECEIVABLES> 174,270
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 649,529
<PP&E> 4,840,679
<DEPRECIATION> 2,705,579
<TOTAL-ASSETS> 2,866,519
<CURRENT-LIABILITIES> 193,253
<BONDS> 190,751
0
0
<COMMON> 109,601
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 2,866,519
<SALES> 941,124
<TOTAL-REVENUES> 1,029,866
<CGS> 0
<TOTAL-COSTS> 1,149,108
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 14,992
<INCOME-PRETAX> (134,234)
<INCOME-TAX> 0
<INCOME-CONTINUING> (134,234)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (134,234)
<EPS-PRIMARY> (.01)
<EPS-DILUTED> (.01)
</TABLE>
