- ----------------------------------------------------------------------------
<PAGE>
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OF 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934
For Quarter Ended JUNE 30, 1996
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 No. 0-8301
GOLDEN TRIANGLE INDUSTRIES, INC.
(Exact Name of Registrant as Specified in its Charter)
(Formerly Golden Triangle Royalty and Oil, Inc.)
State of Colorado 25-1302097
(State or Other Jurisdiction of (I.R.S. Employer
Incorporation or Organization) Identification #)
8504 Sonoma Valley N.E.
Albuquerque, NM 87122
(Address of Principal Executive Offices)
Registrant's Telephone Number Including Area Code: (505) 856-5075
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 of 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. [X] Yes [ ] NO
2,023,207 Shares, Common Stock, $.001 Par Value
Number of shares outstanding of each of the issuer's classes
of common stock, as of July 31, 1996
- --------------------------------------------------------------------------- -
<PAGE>
REPORT ON REVIEW BY INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS
Board of Directors
Golden Triangle Industries, Inc.
Albuquerque, New Mexico
We have reviewed the accompanying consolidated balance sheet of Golden
Triangle Industries, Inc. (formerly Golden Triangle Royalty & Oil, Inc.)
and subsidiaries as of June 30, 1996, and the related consolidated state-
ments of operations for the three and six months ended June 30, 1996 and
1995 and cash flows for the six months then ended. These financial state-
ments are the responsibility of the Company's management.
We conducted our review in accordance with standards established by the
American Institute of Certified Public Accountants. A review of interim
financial information consists principally of applying analytical review
procedures to financial data and making inquiries of persons responsible
for financial and accounting matters. It is substantially less in scope
than an audit conducted in accordance with generally accepted auditing
standards, the objective of which is the expression of an opinion regarding
the financial statements taken as a whole. Accordingly, we do not express
such an opinion.
Based on our review, we are not aware of any material modifications that
should be made to the accompanying financial statements for them to be in
conformity with generally accepted accounting principles.
We have previously audited, in accordance with generally accepted auditing
standards, the consolidated balance sheet as of December 31, 1995, and the
related consolidated statements of operations, retained earnings and cash
flows for the year then ended (not presented herein); and in our report
dated March 15, 1996, we expressed an unqualified opinion on those financial
statements. In our opinion, the information set forth in the accompanying
condensed consolidated balance sheet as of December 31, 1995 is fairly
stated in all material respects in relation to the consolidated balance
sheet from which it has been derived.
Robert Early & Company, P.C.
Abilene, Texas
August 9, 1996
- --------------------------------------------------------------------------- -
<PAGE>
<TABLE>
BALANCE SHEET
The following table sets for the balances sheets for the periods
indicated.
<CAPTION>
GOLDEN TRIANGLE INDUSTRIES, INC.
CONSOLIDATED BALANCE SHEETS
June 30 December 31
1996 1995
(Unaudited)
<S> <C> <C>
ASSETS
CURRENT ASSETS
Cash $ 13,890 $ 86,255
Accounts receivable - trade 1,103,938 958,436
Accounts and notes receivable - other 3,657 3,888
Amounts receivable from officers 122,504 92,997
Marketable securities at lower of
aggregate cost or market 4,903 5,427
Prepaid expenses 25,000 61,150
--------------- ---------------
Total Current Assets 1,273,892 1,208,153
PROPERTY AND EQUIPMENT
Land 532,454 532,454
Oil & gas properties (full cost) 2,777,138 2,774,003
Production equipment 2,059,633 1,959,525
Well leasehold and water rights 200,000 259,872
Office furniture and equipment 48,339 40,681
Accumulated depreciation, depletion
and amortization (1,199,100) (1,099,991)
--------------- ---------------
Net Property and Equipment 4,418,464 4,466,544
OTHER ASSETS
Cash - restricted 100,979 580
Investment in subsidiary 5,000 5,000
Deferred tax assets 78,012 363,454
Notes receivable -long term 816,908 82,470
Other 27,802 29,824
Total Other Assets 1,028,701 481,328
--------------- ---------------
TOTAL ASSETS $ 6,721,057 $ 6,156,025
=============== ===============
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable $ 128,249 $ 101,094
Accrued payroll, taxes and other
expenses 30,922 23,167
Income taxes payable 15,470 21,743
Deferred income taxes - current 134,621 300,359
Advance from related parties 375,000 -
Notes payable-current portion - 5,436
--------------- ---------------
Total Current Liabilities 684,262 451,799
Notes payable (net of current portion) - 19,486
Deferred income taxes - non-current 80,783 52,895
SHAREHOLDERS' EQUITY
Preferred stock, $.10 par value
(1,000,000 authorized)
Series A (8,080 outstanding) 808 -
Series B (183,556 outstanding) 18,356 -
Common stock, $.001 par value
(100,000,000 shares authorized;
2,023,207 and 3,832,931 outstanding) 2,023 3,833
Additional paid-in capital 7,104,917 6,938,200
Stock to be issued 11,250 195,320
Treasury stock (84,738) (71,780)
Unrealized gain/(loss) on marketable
securities (5,199) (5,015)
Accumulated deficit (1,091,405) (1,428,713)
Total Shareholders' Equity 5,956,012 5,631,845
--------------- ---------------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 6,721,057 $ 6,156,025
=============== ===============
</TABLE>
- ----------------------------------------------------------------------------
<PAGE>
<TABLE>
RESULTS OF OPERATIONS
The following table sets forth the results of operations for the
periods as indicated.
<CAPTION>
GOLDEN TRIANGLE INDUSTRIES, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
<S> <C> <C> <C> <C>
Three Months Ended June 30 Six Months Ended June 30
1996 1995 1996 1995
---------- ---------- ----------- ----------
OPERATING REVENUES
Disposal & service fees $ 690,942 $ 401,671 $ 1,228,782 $ 830,568
Oil and gas production 79,464 55,770 133,074 115,925
Rental income 109,727 272,833 109,727 272,833
Miscellaneous 1,809 - 1,849 823
---------- ---------- ----------- ----------
Total Operating Revenues 881,942 730,274 1,473,432 1,220,149
COST OF REVENUES
Australian marketing costs 24,155 20,146 38,400 41,188
Production expenses and taxes 1,866 1,704 3,917 3,147
Contract services 15,716 18,512 23,608 33,256
Direct materials and supplies 80,159 40,201 141,475 83,244
Lease costs 29,182 19,827 68,250 34,329
Utilities 13,679 15,977 29,060 27,146
---------- ---------- ----------- ----------
Total Costs of Revenues 164,757 116,367 304,710 222,310
---------- ---------- ----------- ----------
GROSS PROFIT 717,185 613,907 1,168,722 997,839
OPERATING EXPENSES
Depreciation, depletion and
amortization 113,260 57,371 196,154 107,970
Ranch operations - 36,488 - 50,188
Personnel costs 58,604 76,153 125,060 141,456
Directors fees 3,500 - 3,500 -
Advertising and public relations 65,514 62,408 97,036 91,268
Repairs and maintenance 20,833 31,501 37,645 62,969
Professional fees 14,732 22,579 51,639 40,898
Rent 5,588 5,825 10,907 16,650
Taxes 7,904 13,590 15,520 17,353
Loss on disposal of assets 5,873 - 7,454 -
Other expenses 35,153 25,189 75,156 62,619
---------- ---------- ----------- ----------
Total Operating Expenses 330,961 331,104 620,071 591,371
---------- ---------- ----------- ----------
INCOME FROM OPERATIONS 386,224 282,803 548,651 406,468
OTHER INCOME/(EXPENSES)
Interest and dividend income 8,517 164 9,073 277
Equity in subsidiary's (loss) - - - (8,209)
Interest expense (18,035) (7,225) (18,049) (9,823)
Transfer fees 2,140 2,970 5,314 6,750
Unrealized (losses) on marketable
securities - (2,104) - (4,001)
(Loss) on sale of securities - - (40) -
---------- ---------- ----------- ----------
INCOME BEFORE INCOME TAXES 378,846 276,608 544,949 391,462
Australian income taxes 10,211 4,707 16,079 11,816
Income taxes - federal and state 15,948 58,651 43,970 127,699
Deferred income taxes 146,395 2,912 147,592 -
---------- ---------- ----------- ----------
NET INCOME $ 206,292 $ 210,338 $ 337,308 $ 251,947
========== ========== =========== ==========
EARNINGS PER SHARE $ 0.07 $ 0.05 $ 0.10 $ 0.07
========== ========== =========== ==========
Wtd. Average Shares Outstanding 3,142,687 3,830,286 3,532,276 3,830,286
========== ========== =========== ==========
</TABLE>
- --------------------------------------------------------------------------- -
<PAGE>
<TABLE>
CASH FLOWS
THE FOLLOWING TABLE SETS FORTH THE CASH FLOWS FOR THE PERIOD
INDICATED.
<CAPTION>
GOLDEN TRIANGLE INDUSTRIES, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
<S> <C> <C>
Six Months Ended June 30
1996 1995
CASH FLOWS FROM OPERATING ACTIVITIES
Net income $ 337,308 $ 251,947
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation, depletion and amortization 232,304 132,968
Unrealized losses on marketable securities - 4,001
Loss on sale of assets 7,494 -
Equity in subsidiary's loss - 8,209
(Increase)/decrease in restricted cash (100,399) 2,016
(Increase)/decrease in accounts receivable (879,709) 6,627
(Increase)/decrease in amounts due related
parties (29,507) 22,242
(Increase)/decrease in supplies inventory - 6,772
Increase/(decrease) in trade accounts payable 34,910 43,914
Increase/(decrease) in accrued expenses 141,319 106,298
----------- -----------
NET CASH PROVIDED/(USED) BY OPERATING ACTIVITIES (256,280) 584,994
----------- -----------
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of property and equipment (203,505) (867,022)
Purchase of treasury stock (12,958) -
Proceeds from sale of assets 50,300 -
----------- -----------
NET CASH (USED) BY INVESTING ACTIVITIES (166,163) (867,022)
----------- -----------
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from short swing profits - 15,000
Repayment of capital lease liability (24,922) (3,613)
Advances from related parties 433,000 -
Repayment of related party advances (58,000) -
Debt incurred on property acquisition - 45,743
----------- -----------
NET CASH PROVIDED/(USED) BY FINANCING
ACTIVITIES 350,078 57,130
----------- -----------
NET INCREASE/(DECREASE) IN CASH (72,365) (224,898)
CASH AT BEGINNING OF YEAR 86,255 236,235
----------- -----------
CASH AT END OF PERIOD $ 13,890 $ 11,337
=========== ===========
Supplemental Disclosures - Non-cash Investing and Financing Transactions
Cash paid for interest $ 1,174 $ 9,135
Cash paid for income taxes 27,272 33,216
</TABLE>
- ----------------------------------------------------------------------------
<PAGE> GOLDEN TRIANGLE INDUSTRIES, INC.
SELECTED INFORMATION
(Unaudited)
June 30, 1996
NOTE 1: BASIS OF PRESENTATION
The accompanying unaudited consolidated financial statements have been
prepared in accordance with the generally accepted accounting principles
for interim financial information and with instructions to Form 10-01 of
Regulation S-X. They do not include all information and footnotes required
by generally accepted accounting principles for complete financial
statements. However, except as disclosed herein, there has been no
material change in the information included in the Company's Annual Report
on Form 10-K for the year ended December 31, 1995. In the opinion of
Management, all adjustments (consisting of normal recurring accruals)
considered necessary for a fair presentation have been included. The
report of Robert Early & Company, P.C. commenting on their review
accompanies the condensed financial statements included in Item 1 of Part
1. Operating results for the six month period ended June 30, 1996, are not
necessarily indicative of the results that may be expected for the year
ending December 31, 1996.
NOTE 2: NAME CHANGE AND STOCK ACTIVITY
At the Company's stockholders meeting in May 1996, the name of the parent
company was changed to Golden Triangle Industries, Inc. This change was
made to reflect the change in the Company's main business emphasis away
from oil and gas royalties and reflect its broader base of activities.
At the same meeting, stockholders authorized 1,000,000 shares of preferred
stock with a par value of $.10 per share. Directors were given the
authority to subdivide the preferred stock and to set the various rights
and attributes of different series. The directors created Series A and
Series B subdivisions. Both series have voting rights of 10 votes per
share and are subject to limited transferability. Series A shares contain
a provision for a cash dividend of $.30 per share and are convertible back
to common shares after 38 months. Series B shares were set to have a
quarterly cash dividend of $.20 per share and a common stock dividend which
is initially 3% of the number of preferred shares held. The common stock
dividend escalates to 4% in the second year and increases in subsequent
years based on increases in the Company's annual gross revenue.
Directors also authorized a program to exchange Series A and Series B
preferred shares for common shares on the basis of one share of preferred
stock for ten shares of common. This exchange program was immediately
accepted by directors and insiders who agreed to exchange 1,916,360 common
shares for 8,080 shares of Series A and 183,556 shares of Series B. This
exchange has been given effect in the shares reported outstanding and in
the earnings per share calculation, although the common shares have not
been physically cancelled and preferred shares issued at June 30, 1996.
The Company has had indications that additional shareholders are going to
participate in this exchange program which has a closing date of August 31,
1996.
NOTE 3: AMORTIZATION OF EXPENSES
During December 1993 and January 1994 the Company entered into agreements
with Hunter Equities, Inc. and others for marketing, public relations, and
other management services. Under the terms of these agreements, these
services were to be provided over a three year period. Pursuant to the
terms of these agreements, certain expenses were prepaid. This situation
requires amortization of the expense over the term of the agreement.
Amortization of these expenses (included in "Advertising and public
relations") totaled $12,500 for the quarter and $25,000 for the year.
NOTE 4: CONSTRUCTION OF WATER PLANTS
During the first quarter of 1996, the Company substantially completed
construction of two fresh water delivery sites. The total cost of these
locations was $65,678. These plants were placed in service early in the
second quarter.
NOTE 5: AMANDO DISPOSAL AGREEMENT
Effective June 1, 1996, the Company acquired the use of an existing salt
water disposal facility from TransTexas Gas Corporation (a significant
customer). The substance of this acquisition is a loan to TransTexas of
$750,000 collateralized by the disposal facility and gives the Company
operating rights to the facility while the loan is outstanding. Funding
for this loan came from a credit of $250,000 applied against current
receivables from TransTexas and loans from related parties of $433,000.
The terms of the agreement give TransTexas five years to repay the loan and
allows it to make prepayments at any time. This facility is expected to
throughput in excess of 150,000 barrels of water per month. The Company
earns 1% per month on the unpaid balance and expects to generate another 1%
per month from operations. The facility is located in an area in which the
Company has no competing disposal facilities and essentially has no nearby
competition.
The loans from related parties bear interest at 2% per month and are
expected to be repaid before the end of the year. The Company had repaid
$58,000 prior to June 30, 1996.
NOTE 6: SALE OF ASSETS
Effective June 30, 1996, the Company sold its facility in Jim Wells County
to a company partially owned by a director for $50,000. Management has
been disappointed with the results from operating the facility. It was
determined that competition, lack of development in the service area, and
distance from the Company's core area made the facility unfeasible to
operate profitably. Based on this determination, management elected to cut
its losses and dispose of the facility.
NOTE 7: RESTRICTED CASH
During June 1996, the Company posted a $100,000 certificate of deposit as
collateral for a $1 million performance bond for Southwest Tire Processors,
Inc. (SWTP). SWTP is the lessee of the Company's tire shredder and owes
the Company significant amounts under this lease. The bond was required by
a $4 million used-tire disposal contract with the State of Arizona. This
contract is expected to allow SWTP to substantially reduce its payable to
the Company.
<PAGE>
===========================================================================
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS
General Discussion:
The second quarter of 1996 marks the eighth consecutive quarter to report
profits. Disposal and service revenues since January 1995 reached a record
level for the quarter ended June 30, 1996. The following table reflects
the steady increase in disposal and service revenues from this segment for
the past five quarters:
Quarter ended Disposal & Service Revenues
June 30, 1996 $ 690,942
March 31,1996 537,840
December 31, 1995 529,026
September 30, 1995 430,270
June 30, 1995 401,671
Disposal and service fees for the quarter ended June 30, 1996, increased
72% over the same period in 1995 and increased 28% over the quarter ended
March 31, 1996.
The obtaining of the Amando Disposal Facility (see detail below) and the
opening of two new fresh water delivery sites were the major factors in
causing this increase in disposal and service fees. Another sustaining
factor was that the price of natural gas has maintained good levels during
the second quarter. This resulted in additional revenues from support
services provided to drilling contractors.
The most significant transaction to occur during the quarter was the acqui-
sition of the operation of an existing salt water facility from TransTexas
Gas Corporation in exchange for what is essentially a loan of $750,000 (see
note 5 of the financial statements). Sources for the $750,000 included
certain directors and insiders advancement of $433,000 to the Company. Of
this total, $375,000 was still outstanding as of June 30, 1996. On August
13, 1996, the balance outstanding was only $346,400.
GTII accepted an offer from Boundary Ventures, Inc. to purchase Jim Wells
salt water facility for $50,000 (see Note 6 of the financial statements).
GTII first acquired an interest in the Jim Wells facility during the fourth
quarter of 1994. This operation never fully matured as initially expected,
because the oil and gas fields that were expected to be developed in that
area never materialized. This fact was coupled with the effects from
existing operators building their own disposal facilities. GTII only sold
the assets of the Jim Wells facility and not Jim Wells SWD, Inc. the
corporation, as there are other assets and attributes within the
corporation that GTII wanted to retain,
On May 18, 1996, the Company held its shareholder meeting in Albuquerque.
At this meeting the shareholders approved changing the name to Golden
Triangle Industries, Inc. and changed its NASDAQ trading symbol to GTII.
Also approved at the meeting, was an addition to the articles of the
Corporation to include 1,000,000 preferred shares. On May 24, 1996,
1,916,360 common shares were offered by certain directors and insiders for
8,080 shares of Class A and 183,556 shares of Class B Preferred stock. For
further details please see Note 2 of the financial statements.
Revenues:
The financial statements accompanying this report are consolidated with the
Company's subsidiaries for all periods presented.
As reported in the General Discussion at the beginning of this report,
revenues from the South Texas operation set a record for any three month
period since January 1, 1995. The six month revenues from disposal and
service fees were up an impressive 48% when comparing the period ending
June 30, 1995 ($830,568) to June 30, 1996 ($1,228,782).
Disposal and service fees were up during the second quarter due to the
following reasons: 1. Certain facilities began focusing on disposing of
non-produced water at a premium price compared to normal produced water.
2. Drilling activity is up due to higher energy prices that increases the
Company's subsidiaries support services. 3. Higher energy prices have
caused marginal wells to be put back into production. and 4. The Amando
Disposal Facility, with only one month's operation, added approximately
$40,000 to the South Texas' revenues.
Revenues from oil and gas are up 42% when comparing the second quarter of
1996 ($79,464) to the same quarter of 1995 ($55,770). New wells have been
put on line on domestic leases coupled with an overall increase in both oil
and gas prices. Oil and gas revenues for the quarter ended March 31, 1996
were $53,610. During the first half of the year, the Company was "carried"
in the drilling of five wells on leases in Central Texas in which it holds
a small working interest. Plans include additional drilling during the
third and fourth quarters of 1996.
Rental income is derived from the Company's joint venture with Southwest
Tire Processors (SWTP). As previously reported, SWTP has been awarded
significant used tire disposal contracts that will allow GTII to receive
its rental fees in addition to interest earned. The $109,727 reported in
the quarter ended June 30, 1996 is interest income earned pursuant to the
leasing arrangement with SWTP.
Cost of revenues increased over the quarter ended March 31, 1996 from
$139,953 to $164,757 for the quarter ended June 30, 1996. Cost of revenues
also increased when comparing the current quarter to the same period in 1995.
This increase is also reflected in the six month numbers caused by an
increase in direct materials and supplies. The addition of two fresh water
facilities plus upgrading and expanding existing disposal equipment in the
South Texas operating area are contributing factors that led to the increase
in direct materials and supplies during the first two quarters of 1996.
Assets:
The total assets of the Company grew to $6,721,057 up $565,032 over
December 31, 1995, the fiscal year end of the Company. Of the $565,032
increase in assets that occurred during the first six months, $439,294 was
during the second quarter. This increase is directly related to the
transactions centered around the Amando Disposal Facility with TransTexas
Gas Co., as previously discussed in the General Discussion. Total assets
of the Company on June 30, 1995, were $5,364,640. This reflects a 25%
growth in assets to June 30, 1996.
Cash on hand as of June 30, 1996, is low principally due to purchasing a
$100,000 certificate of deposit which is reported under Other Assets. This
certificate of deposit is being used as collateral for a performance bond
for SWTP (see Note 7 of the financial statements). The bond allowed SWTP
to be awarded significant contracts for used tire disposal from Arizona.
SWTP estimates that the total value of the contract from Maricopa County,
Arizona, is between $2,000,000 and $5,000,000 over the next two years.
GTII owns 10% of Southwest Tire Processors, Inc.
Of the accounts receivable, $516,217 is due from SWTP and the balance is
primarily from either disposal fees or services rendered in South Texas.
Considering the revenues expected to be received from Arizona, SWTP plans
to pay most, if not all, of its debt to GTII by year end. This should
dramatically improve GTII s cash position.
Current assets of GTII on June 30, 1995, were $812,412 and were $1,303,092
on March 31, 1996. The increase from June 30, 1995, to June 30, 1996, was
related to the increase in accounts receivables. The second quarter had a
slight decrease of $29,200 from the previous quarter which was related to
the Company s current cash position.
A measurement of the Company's liquidity is the use of the ratio of current
assets to current liabilities. The liquidity ratio for June 30, 1996 was
1.86:1, March 31, 1996 was 2.83:1, December 31, 1995 was 2.67:1, and June
30, 1995 was 3.63:1.
The $816,908 under other assets classified as notes receivable - long term
is comprised of two areas of interest. The larger amount represents
$750,000 from the TransTexas transaction (more fully disclosed above and in
Note 5 of the financial statements) and $66,908 from land sales from Apache
Ranch. Apache Ranch has entered into an agreement to sell an 80 acre tract
for $80,000 with an option to acquire an additional 120 acres on the same
$1,000 per acre basis. Management exinalize this agreement before year
end.
The Company's current liabilities increased by $460,200 from June 30, 1995
($224,062) to June 30, 1996 ($684,262). This increase is due to the cash
advances made to the Company from certain directors and insiders to fund
the acquisition/loan agreement with TransTexas as previously stated.
Current liabilities for March 31, 1996 were $460,865 and $451,799 on
December 31, 1995
Shareholders' equity also improved in conjunction with building assets
during the second quarter. Shareholders' equity increased $206,567 from
March 31, 1996 to June 30, 1996 and increased $827,338 from June 30, 1995
to June 30, 1996. This is a significant 16% increase.
Operating Expenses:
Operating expenses have remained fairly constant except for depreciation,
depletion and amortization which has increased significantly during the
past year from $57,371 for the quarter ended June 30, 1995 to $113,260 for
the same period in 1996. The six month figures also reflect a material
increase in this category. The majority of the assets added to the Company
are tangible assets and are subject to either depreciation, depletion or
amortization expense. Depreciation, depletion and amortization totaled
$82,894 for the quarter ended March 31, 1996, out of total operating
expenses for the quarter of $289,110.
Other income and expenses reported during the quarters are principally
related to either interest income or interest expense. The interest income
is earned by affiliated parties to the Company on cash advances for Company
projects. The majority of the interest expense was generated during the
second quarter due to the financing of the Amando acquisition, previously
mentioned.
Net Income:
Net income before taxes was up from $166,103 for the quarter ended March
31, 1996, to $378,846 for the quarter ended June 30, 1996, a 128%
increase. When comparing the current quarter to the quarter ended June 30,
1995, an increase of $102,238 is reported in net income before taxes. Six
month figures also report significant improvement in net income before
taxes ($544,949 vs. $391,462).
Net income of $206,292 ($0.07 per share) was reported for the current
quarter compared to $131,016 ($0.03 per share) for the previous quarter.
Net Income was $337,308 ($0.10 per share) and $251,947 ($0.07 per share)
for the six month periods ended June 30, 1996 and 1995, respectively. A
change in the number of share outstanding through the conversion of common
stock to preferred effects the per share calculations for the periods ended
June 30, 1996.
===========================================================================
PART II
Item 6. Exhibits and Reports on Form 8-K,
On May 9, 1996, the Company filed a Form 8-K disclosing the transactions
surrounding the acquisition of the Amando Disposal Facility as a material
transaction.
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.
August 14, 1996
Golden Triangle Industries, Inc.
/s/ IVAN WEBB
Ivan Webb, Chief Financial Officer,
Principal Financial Officer,
Principal Accounting Officer,
Director
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
This schedule contains summary financial information extracted from the
financial statements of Golden Triangle Royalty & Oil, Inc. for the period
ended June 30, 1996, and is qualified in its entirety by reference to such
financial statements.
</LEGEND>
<CIK> 0000042284
<NAME> GOLDEN TRIANGLE INDUSTRIES, INC.
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> JUN-30-1996
<CASH> 13890
<SECURITIES> 4903
<RECEIVABLES> 1230099
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 1273892
<PP&E> 5617564
<DEPRECIATION> (1199100)
<TOTAL-ASSETS> 6721057
<CURRENT-LIABILITIES> 684262
<BONDS> 0
0
19164
<COMMON> 2023
<OTHER-SE> 5934825
<TOTAL-LIABILITY-AND-EQUITY> 6721057
<SALES> 1471583
<TOTAL-REVENUES> 1473432
<CGS> 304710
<TOTAL-COSTS> 304710
<OTHER-EXPENSES> 620071
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 18049
<INCOME-PRETAX> 544949
<INCOME-TAX> 207641
<INCOME-CONTINUING> 337308
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 337308
<EPS-PRIMARY> 0.10
<EPS-DILUTED> 0.10
</TABLE>
