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<PAGE>
FORM 10-Q
UNITED STATES
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 Quarterly Period Ended MARCH 31, 1999
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)
State of Colorado 25-1302097
(State or Other Jurisdiction of (I.R.S. Employer
Incorporation or Organization) Identification #)
6314 Aspen Cove Court Sugar Land, TX 77479
(Address of Principal Executive Offices) (Zip Code)
(281) 565-7300
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 [X] Yes [ ] NO
Indicate the number of shares outstanding of each of the issuer's classes
of common stock, as of the latest practicable date.
There were 607,775 Shares, Common Stock, $.001 Par Value March 31, 1999
1
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INDEX
Page
Part I. Financial Information
Item 1. Financial Statements . . . . . . . . . . 3
Item 2. Management's Discussion and Analysis . . . . 8
Part II: Other information
Item 6: Exhibits and Reports on Form 8-K . . . . . . 12
Signatures . . . . . . . . . . . . . . . . . . 12
2
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PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
GOLDEN TRIANGLE INDUSTRIES, INC.
CONSOLIDATED BALANCE SHEETS
March 31 December 31
1999 1998
---------- ----------
(Unaudited)
ASSETS
CURRENT ASSETS
Cash $ 22,505 $ 160,204
Accounts receivable - trade 1,313,408 1,307,042
Accounts receivable - other 45,537 33,977
Amounts receivable - officers 30,698 27,247
Inventory 222,073 199,296
Marketable securities 63,686 47,694
Prepaid expenses 34,500 13,500
---------- ----------
Total Current Assets 1,732,407 1,788,960
---------- ----------
PROPERTY AND EQUIPMENT 7,156,705 7,104,354
Accumulated depreciation, depletion
and amortization (2,252,298) (2,133,069)
---------- ----------
Net Property and Equipment 4,904,407 4,971,285
---------- ----------
OTHER ASSETS
Notes receivable - long term 305,287 305,588
Advances to related parties 170,255 185,209
Deferred tax assets 44,400 38,000
Other 21,777 20,632
---------- ----------
Total Other Assets 541,719 549,429
---------- ----------
TOTAL ASSETS $7,178,533 $7,309,674
========== ==========
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable $ 98,884 $ 50,535
Accrued expenses 76,122 73,239
Line of credit 241,200 171,200
---------- ----------
Total Current Liabilities 416,206 294,974
---------- ----------
STOCKHOLDERS' EQUITY
Preferred stock, $.10 par value
(1,000,000 shares authorized)
Class A (3,374 outstanding) 337 337
Class B (52,824 and 52,941 outstanding) 5,282 5,294
Common stock, $.001 par value
(100,000,000 shares authorized;
607,775 and 605,398 outstanding) 608 605
Additional paid-in capital 7,524,041 7,514,575
Unrealized (loss) on marketable
Securities (79,178) (72,260)
Accumulated deficit (688,763) (433,851)
---------- ----------
Total Stockholders' Equity 6,762,327 7,014,700
---------- ----------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $7,178,533 $7,309,674
========== ==========
See accompanying selected information.
3
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GOLDEN TRIANGLE INDUSTRIES, INC.
CONSOLIDATED INCOME STATEMENTS
(Unaudited)
Three Months Ended March 31
--------------------------------
1999 1998
---------- ----------
OPERATING REVENUES
Disposal and service fees $ 186,000 $ 667,119
Oil reclamation, sand and water sales 178,417 215,582
Oil and gas production 50,349 112,570
Gain on sale of operating assets 16,500 -
Miscellaneous 150 -
---------- ----------
Total Operating Revenues 431,416 995,271
---------- ----------
COST OF REVENUES
Skim oil purchases 77,680 161,831
Australian marketing costs 5,146 31,150
Production expenses and taxes 1,340 2,227
Contract services 7,157 7,784
Direct materials and supplies 65,638 58,717
Lease costs 17,995 29,767
Utilities 16,654 8,545
Depreciation, depletion and amortization 120,196 120,424
---------- ----------
Total Costs of Revenues 311,806 420,445
---------- ----------
GROSS PROFIT 119,610 574,826
SELLING AND ADMINISTRATIVE EXPENSES 375,875 337,453
---------- ----------
INCOME/(LOSS) FROM OPERATIONS (256,265) 237,373
OTHER INCOME/(EXPENSES)
Interest and dividend income 3,422 8,832
Interest expense (5,602) (372)
Transfer fees 2,175 2,775
Gain/(loss) on sale of assets - 36,979
---------- ----------
INCOME/(LOSS) BEFORE INCOME TAXES (256,270) 285,587
Income tax benefit/(expense) 1,358 (97,070)
---------- ----------
NET INCOME/(LOSS) (254,912) 188,517
Other comprehensive income, net of tax:
Unrealized gains/(losses) on securities (4,389) 624
---------- ----------
COMPREHENSIVE INCOME $ (259,301) $ 189,141
========== ==========
Basic Earnings per Common Share $ (0.42) $ 0.32
Diluted Earnings per Common Share (0.42) 0.31
See accompanying selected information.
4
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GOLDEN TRIANGLE INDUSTRIES, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
Increase/(Decrease) in Cash and Cash Equivalents
(Unaudited)
Three Months Ended March 31,
-------------------------------
1999 1998
--------- ----------
CASH FLOWS FROM OPERATING ACTIVITIES
Net income/(loss) $(254,912) $ 188,517
Adjustments to reconcile net income
to net cash provided by operating
activities:
Depreciation, depletion and amortization 120,196 120,424
(Gain) on sale of assets and securities (16,500) (36,979)
Allowance for bad debts adjustment 115,257 -
Receivables (132,882) (187,883)
Inventory (22,777) (13,354)
Amounts due from/to related parties (6,849) 10,206
Other assets (21,000) 9,195
Accounts payable 51,232 17,110
Accrued and deferred taxes (18,107) 87,073
--------- ----------
NET CASH PROVIDED/(USED) BY OPERATING
ACTIVITIES (186,342) 194,309
--------- ----------
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of property and equipment (52,351) (129,202)
Purchase of marketable securities (11,203) (74,482)
Investment in subsidiaries (2,112) -
Proceeds from sale of assets 16,500 137,040
--------- ----------
NET CASH USED IN INVESTING ACTIVITIES (49,166) (66,644)
--------- ----------
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from issuing stock 9,457 27,394
Loan to related parties (8,347) -
Repayment from related parties 26,699 -
Borrowing under line of credit 70,000 70,000
Repayments on line of credit - (76,000)
--------- ----------
NET CASH PROVIDED BY FINANCING ACTIVITIES 97,809 21,394
--------- ----------
Increase/(Decrease) in Cash (137,699) 149,059
Cash at Beginning of Year 160,204 95,648
--------- ----------
CASH AT END OF PERIOD $ 22,505 $ 244,707
========= ==========
Supplemental Disclosures - Non-cash Investing and Financing
Transactions
Cash paid for interest $ 5,602 $ 372
Cash paid for income taxes - 19,043
See accompanying selected information.
5
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GOLDEN TRIANGLE INDUSTRIES, INC.
SELECTED INFORMATION FOR CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
March 31, 1999
NOTE 1: BASIS OF PRESENTATION
The accompanying unaudited financial statements have been prepared in
accordance with 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, 1998. In
the opinion of Management, all adjustments (consisting of normal
recurring accruals) considered necessary for a fair presentation have
been included. Operating results for the three month period ended
March 31, 1999, are not necessarily indicative of the results that
may be expected for the year ending December 31, 1999.
NOTE 2: TRANSTEXAS GAS CORPORATION BANKRUPTCY
On April 19, 1999, TransTexas Gas Corporation, the Company's largest
customer, filed a Voluntary Petition in the State of Delaware for
Order and Relief under Chapter 11 of Title 11 of the United States
Bankruptcy Code. As of May 10, 1999, TransTexas had not filed its
plan of restructuring and no specific details or payment plans have
been made public. Unofficial reports from TransTexas have indicated
that its restructuring plan will provide for repayment of all
outstanding vendor debt over an eighteen month period. However,
there is no assurance that this plan will be the one filed by
TransTexas or that such a plan will be accepted by the bankruptcy
court. The Company is an unsecured creditor in this bankruptcy.
At March 31, 1999, TransTexas owed the Company $1,114,427. The
Company has taken a charge of $115,257 against income during the
first quarter of 1999 by establishing a valuation allowance against
this receivable. This valuation allowance is based on the
possibility that TransTexas will repay the balance owed over an
eighteen month period beginning in September 1999. Due to the nature
of bankruptcy, it is possible that the Company will not be able to
collect any of its receivables from TransTexas. The Company intends
to monitor this situation carefully and will adjust the valuation
allowance as needed to reflect its assessment of the value of its
receivable.
At the present time, the Company is continuing to provide services to
TransTexas on what is effectively a C.O.D. basis. Some jobs are
prepaid, while others are paid upon completion.
NOTE 3: STOCK TRANSACTIONS
The Company has issued 1,207 common shares under its Dividend
Reinvestment Plan during 1999 for proceeds of $9,483.
The Company has also accepted the reconversion of 117 shares of Class
B preferred into 1,170 common shares on the basis of ten common
shares for each Class B preferred share tendered.
NOTE 4: ACQUISITION OF FIXED ASSETS AND INVESTMENTS
During March 1999, the Company acquired a 2.5% overriding royalty
interest in Australian concession ATP 636P from Strategic Consulting,
Inc. for $25,000. This purchase included an agreement by Strategic
to assign a 1% overriding royalty interest in successful applications
by Strategic to obtain a specific list of Australian concessions.
ATP 636P is a non-producing prospect covering approximately 640,000
acres south of Eromanga, Queensland, Australia. The other Australian
concession areas that Strategic has applied for lie in Queensland, in
South Australia, and offshore in Victoria.
6
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NOTE 5: COMPREHENSIVE INCOME
Other comprehensive income is comprised of unrealized gains/losses on
marketable securities and dividends paid. Changes in unrealized
gains/losses on marketable securities for 1999 are as follows:
Balance at December 31, 1998 $ (72,260)
Change during 1999 (6,918)
---------
Current balance $ (79,178)
=========
NOTE 6: EARNINGS PER SHARE
The following table sets forth the computation of basic and diluted
earnings per common share (EPS) for the three months ended March 31
as indicated.
1999 1998
---------- ---------
Numerator:
Net income $ (254,912) $ 188,517
Less preferred stock dividends - -
---------- ---------
Numerator for basic EPS (254,912) 188,517
Effect of dilutive preferred stock dividends - -
---------- ---------
Numerator for diluted EPS $ (254,912) $ 188,517
========== =========
Denominator:
Basic weighted average shares
outstanding 606,389 580,429
Convertible preferred shares (1) - 33,740
---------- ---------
Denominator for diluted EPS 606,389 614,169
========== =========
Basic EPS $ (0.42) $ 0.32
Diluted EPS (0.42) 0.31
(1) Convertible preferred shares of 60,152 were determined to be
anti-dilutive during 1999.
NOTE 7: SEGMENT AND GEOGRAPHICAL DATA
Three Months Ended March 31,
---------------------------
1999 1998
---------- ---------
Segment Data:
Revenues:
Oil field rentals and services $ 186,000 $ 667,119
Oil reclamation and other sales 178,417 215,582
Oil and gas 50,349 112,570
Other 16,650 -
---------- ---------
Totals $ 431,416 $ 995,271
========== =========
Operating profit:
Oil field rentals and services $ (317,483) $ 208,736
Oil reclamation and other sales 45,181 3,909
Oil and gas (613) 24,728
Other 16,650 -
---------- ---------
Totals (256,265) 237,373
Other income and expense (5) 48,214
---------- ---------
Income before income taxes $ (256,270) $ 285,587
========== =========
7
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Three Months Ended March 31,
---------------------------
1999 1998
---------- ---------
Geographical Data:
Revenues:
United States $ 394,725 $ 901,572
Australia 36,691 91,624
Canada - 2,075
---------- ---------
Totals $ 431,416 $ 995,271
========== =========
Operating profit:
United States $ (279,738) $ 195,957
Australia 23,473 40,316
Canada - 1,100
---------- ---------
Totals (256,265) 237,373
Other income and expense (5) 48,214
---------- ---------
Income before income taxes $ (256,270) $ 285,587
========== =========
NOTE 8: SUBSEQUENT EVENTS
During March 1999, the Company entered into a contract to purchase a
one-half interest in a 1,062 acre property with existing sand and
gravel excavation activities. The Company's president has taken the
remaining one-half interest. The purchase of this interest has a
$400,000 cost of which $300,000 will consist of a promissory note to
the seller. This property will expand the Company's sand and gravel
sales. The Company made a $20,000 earnest money deposit on this
contract.
8
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<PAGE>
Item 2: Management's Discussion and Analysis of Financial Condition
and Results of Operations.
During the first quarter of 1999, the Company has seen the effects of
the downturn in the prices of oil and gas. The fall of oil prices to
approximately 50% of previous prices directly effected the Company's
oil and gas revenues and flowed down the line from oil and gas
producers to the Company's service businesses during the first
quarter of 1999. The decline effected the salt water disposal
business, the other oil field services, and the oil reclamation
business. In addition, the Company's largest customer, TransTexas
Gas Corporation filed a Voluntary Bankruptcy petition under Chapter
11 of the U.S. Bankruptcy Code on April 19, 1999, largely due to the
decline in oil and gas prices. As a result of this filing, the
Company recognized a valuation adjustment against its receivables
from TransTexas of $115,257 in its first quarter financial
statements. Sand and gravel sales increased during the first quarter
as the contract to sell sand and gravel off the Altair property was
implemented.
Oil and gas prices have rebounded during April 1999. Management has
seen increased activity in the oil field since March and expects to
see improvement in all of its businesses as producers begin to
recover from the disastrously low prices for oil and gas. Although
TransTexas filed for bankruptcy, the Company has continued to provide
services to them on a C.O.D. basis.
LIQUIDITY AND CAPITAL RESOURCES
Management has reported total assets of $7,178,533 at March 31, 1999,
a decrease of $131,141 from the $7,309,674 total at December 31,
1998. This decrease is largely due to the write-down taken on the
TransTexas receivable offset somewhat by an increase in deferred
income taxes resulting from losses generated in the current quarter.
Current assets were also down when comparing March 31, 1999 to both
December 31, 1998 and March 31, 1998. Current assets decreased
mostly because of the write-down against the TransTexas receivable
and because of the reduced cash flow due to reduced operating
revenues. Current liabilities were up significantly when comparing
the current balances to the balances at both December 31, 1998 and
March 31, 1998. The increase is due primarily to reduced cash flows
from operations and to an additional $70,000 borrowed under the
Company's line of credit with the Bank of New Mexico. The borrowing
under the existing line of credit was largely used to fund the
acquisition of an overriding royalty interest in a new Australian
prospect and to provide the earnest money deposit for a property
acquisition (discussed below). It is important to note that
the Company has no long-term bank debt and that its property and
equipment are free from liens.
Historically, the Company's oil field services and rental revenues
have been derived largely from TransTexas Gas Corporation. (Business
with TransTexas represented 44% of the Company's total revenues
during the year ended December 31, 1998.) During the first quarter
of 1999, business with TransTexas declined to only 4% of operating
revenues. This decline, as discussed above, was largely due to the
decline in oil and gas prices and the resulting reduction in cash
available for development and service work. Additionally, TransTexas
did not make any significant reduction in the amount that it owed the
Company. Receivables from TransTexas totaled $1,114,427 at March 31,
1999. As mentioned above, TransTexas filed a Voluntary Petition in
the State of Delaware for Order and Relief under Chapter 11 of Title
11 of the United States Bankruptcy Code. Obviously, this action
casts some doubt on the collectible of the receivable from
TransTexas. Management has analyzed the situation and has determined
that available information indicates that the Company should be able
to ultimately collect the bulk of its receivables from TransTexas.
However, collection is expected to take some time. TransTexas has
not filed its restructuring plan with the bankruptcy court. It has
informally indicated that the plan it intends to file will provide
for the payment of unsecured creditor's claims over an eighteen month
period beginning later in 1999. In recognition of the prolonged
period to collect these receivables, the Company has recognized the
valuation allowance presented above. Should TransTexas change its
plan or have it changed by the bankruptcy court, or should it become
unable to pay, the Company's related assets and earnings would
increasingly be adversely impacted. At present, the information
available to the Company has not indicated that the unofficial
restructuring plan it has heard from TransTexas is unfeasible or that
TransTexas will not be able to meet the requirements of the plan.
Management believes that the Company will be able to generate
sufficient cash flow to meet its obligations regardless of whether or
not it is able to collect its TransTexas receivables.
Subsequent to TransTexas' bankruptcy filing, the Company has actually
increased services being provided to TransTexas over those provided
in the first quarter. This is largely due to increased oil and gas
prices and to efforts by TransTexas to restart its drilling
operations. These services are being provided on a "pay as you go"
basis, under which some services are prepaid while others are paid upon
completion.
9
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RESULTS OF OPERATIONS
The Company's financial statements present total operating revenues
of $431,416 for the first quarter of 1999, which is a decrease of
$563,855 from the first quarter of 1998. This decrease is primarily
attributable to the domino effect of the lower oil and gas prices.
All aspects of the Company's revenues declined, except its sand and
gravel sales. A significant reduction in oil field services and
rentals came from TransTexas reduction in activities as mentioned
above. Oil reclamation and salt water disposal services declined as
producers reduced or stopped output from marginal wells due to the
lower sales prices causing wells to be unprofitable to produce.
Marginal wells generally produce higher percentages of salt water.
Most of the oil for reclamation comes from skimming residual oil off
salt water. Oil and gas revenues were impacted by both the lower oil
prices and an uncharacteristically low Australian currency exchange
rate.
Costs of revenues decreased when comparing the first quarter of 1999
to the first quarter of 1998 primarily because of the reduced skim
oil purchases and reduced costs for the Australian oil production.
Depreciation, one of the more significant costs, is on a straight
line and is not related directly to higher or lower operating
activities.
Selling and Administrative Expenses consists of personnel,
advertising, repairs and maintenance, professional fees, taxes, and
other corporate overhead expenses. In 1999, these costs also include
the valuation allowance of $115,257 recorded against the Company's
receivables from TransTexas. During the first quarter of 1999,
personnel costs declined $24,852 from the first quarter of 1998.
Advertising and public relations declined $25,596 from 1998, but most
of this difference is expected to be incurred during the second
quarter of 1999. Various other overhead costs have declined during
the first quarter of 1999 from those incurred in the first quarter of
1998 due to efforts to control costs and to the lower level of
activities. Normal selling and administrative costs, i.e. excluding
the valuation adjustment, totaled $260,618 which represents an overall
decline of $76,835 from comparable costs in 1998.
The Company showed a $.42 loss per common share for the quarter
compared to a $.32 per share profit for 1998. This is the net result
after recognizing a benefit from income taxes based on the net loss
incurred during the current quarter. The write-down on receivables
(net of tax effects) represents $.13 of the loss in 1999. Management
believes the Company was weathering the storm, so to speak, caused by
the fallout from the low oil and gas prices. With prices recovering
subsequent to the first quarter, activities are improving. While it
is still early to make projections for the second quarter or the
balance of the year, it does look like the first quarter is not
likely to be an indication of the results for all of 1999, unless oil
and gas prices fall again or unless it becomes evident that
TransTexas will be unable to pay a significant part of its
receivables.
Cash flows from operations declined significantly during the first
quarter of 1999 from those of 1998. This is largely due to decreased
revenues and activities as previously discussed. The Company
borrowed an additional $70,000 under its existing line of credit and
collected $26,699 from related parties. A large portion of these
funds were used in the purchase of an Australian oil interest and as
an earnest money deposit for a property acquisition discussed below.
During March 1999, the Company entered into a contract to purchase a
1,062 acre property near the Altair property that has an ongoing sand
and gravel excavation operation. Although this property has had ongoing
excavation activity for a number of years, it still contains significant
recoverable quantities of sand and gravel. The property also is the
site of a facility for separating and cleaning the sand and gravel
for its intended use. This facility is owned by the lessee under the
existing excavation lease and generates a royalty payment based on
quantities of sand and gravel processed. The property also contains
three producing gas wells and several potential well sites. One well
site has been staked for drilling since the first of May. The
Company received 49% of the mineral interest under this property as
part of its acquisition.
DISCLOSURE REGARDING FORWARD-LOOKING STATEMENTS
Where this Form 10-Q includes "forward-looking" statements within the
meaning of Section 27A of the Securities Act, the Company desires to
take advantage of the "safe harbor" provisions thereof. Therefore,
the Company is including this statement for the express purpose of
availing itself of the protections of such safe harbor provisions
with respect to all of such forward-looking statements. The
forward-looking statements in this Form 10-Q reflect the Company's
current views with respect to future events and financial
performance. These forward-looking statements are subject to certain
risks and uncertainties that could cause actual results to differ
from those anticipated. In this Form 10-Q, the words "anticipates,"
"believes, "expects," "intends," "future" and similar expressions
identify forward-looking statements. The Company undertakes no
obligation to publicly revise these forward-looking statements to
reflect events or circumstances that may arise after the date hereof.
All subsequent written and oral forward-looking statements
attributable to the Company or persons acting on its behalf are
expressly qualified in their entirety by this section.
10
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YEAR 2000
The Company has conducted a comprehensive review of its computer
systems to identify the systems that could be affected by the "Year
2000" issue. The Year 2000 problem is the result of computer
programs being written using two digits rather than four to define
the applicable year. Any programs that have time-sensitive software
may recognize a date using "00" as the year 1900 rather than the year
2000. The widespread use of computer programs that rely on these
two-digit date programs to perform computations and decision-making
functions may cause information technology systems to malfunction in
and around the year 2000. This could result in a major system
failure or miscalculations. Such malfunctions may lead to
significant business delays in the U.S. and internationally. Many
normal business activities will potentially be impacted because
information necessary to monitor and control various operations is
controlled by computers.
The Company has studied and tested its technologies systems impacted
by the Year 2000 transition. The Company believes that all of its
software and equipment are Year 2000 compliant and that this problem
will have no affect on the Company's internal operations. Should
companies with which the Company does business suffer significant
problems within their systems, an adverse impact could be incurred by
the Company. However, the Company has discussed this problem with
its significant customers and suppliers and is satisfied from their
responses that most will be prepared and will be sufficiently Year
2000 compliant to preclude significant problems. No one can foresee
the final impact of the Year 2000 issue and, despite all efforts to
insure that the problem will not effect the Company, the possibility
remains that system malfunctions could create a domino or "fall out"
effect that could adversely impact the Company's operations and cash
flow.
11
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<PAGE>
<PAGE>
PART II: OTHER INFORMATION
Item 6: Exhibits and Reports on Form 8-K
a. Exhibits
Exhibit 27. Financial Data Schedule
b. Reports on Form 8-K
None
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.
GOLDEN TRIANGLE INDUSTRIES, INC.
May 14, 1999 /s/ Shawna Owens
Shawna Owens, Treasurer
May 14, 1999 /s/ Robert B. Early
Robert B. Early, Chief Financial
Officer
12
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
This schedule contains summary financial information extracted from the
financial statements of Golden Triangle Industries, Inc. for the period
ended MARCH 31, 1999, 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-31-1999
<PERIOD-END> MAR-31-1999
<CASH> 22,505
<SECURITIES> 63,686
<RECEIVABLES> 1,504,900
<ALLOWANCES> (115,257)
<INVENTORY> 222,073
<CURRENT-ASSETS> 1,732,407
<PP&E> 7,156,705
<DEPRECIATION> (2,252,298)
<TOTAL-ASSETS> 7,178,533
<CURRENT-LIABILITIES> 416,206
<BONDS> 0
0
5,619
<COMMON> 608
<OTHER-SE> 6,756,100
<TOTAL-LIABILITY-AND-EQUITY> 7,178,533
<SALES> 414,913
<TOTAL-REVENUES> 431,416
<CGS> 311,806
<TOTAL-COSTS> 311,806
<OTHER-EXPENSES> 375,875
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 5,602
<INCOME-PRETAX> (256,270)
<INCOME-TAX> 1,358
<INCOME-CONTINUING> (254,912)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (254,912)
<EPS-PRIMARY> (0.42)
<EPS-DILUTED> (0.42)
