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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 10-QSB
(Mark one)
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended: October 31, 1995
[ ] 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 06425
AMACAN RESOURCES CORPORATION
(Exact name of registrant as specified in its charter)
Utah 87-0284979
(State or other jurisdiction of (I.R.S. Employer
Incorporation or organization) Identification No.)
1399 South Seventh East
Salt Lake City, Utah 84105
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (801) 486-9911
Not Applicable
(Former name, former address and former fiscal year,
if changed since last report)
Check whether the issuer (1) filed all reports required to be filed by Section
13 or 15(d) of the Exchange Act during the past 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
--- ---
State the number of shares outstanding of each of the issuer's classes of common
stock, as of the latest practicable date.
<TABLE>
<CAPTION>
Class Outstanding at November 30, 1995
-------------------------- --------------------------------
<S> <C>
Common capital stock, $.25
par value 2,723,714
</TABLE>
Transitional Small Business Disclosure Format (check one):
Yes No X
--- ---
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PART I. FINANCIAL INFORMATION Page 2 of 9
ITEM I. FINANCIAL STATEMENTS
AMACAN RESOURCES CORPORATION
Condensed Consolidated Balance Sheets
October 31, 1995 and April 30, 1995
(Unaudited)
<TABLE>
<CAPTION>
October 31, April 30,
1995 1995
----------- ---------
<S> <C> <C>
ASSETS
------
Current assets:
Cash $ 63,928 $ 84,851
Investments-Certificate of deposit 450,369 436,686
Accounts receivable 22,248 18,711
--------- ---------
Total current assets 536,545 540,248
Interest in oil and gas properties,
mining claims and equipment, at cost
net of accumulated depreciation and
depletion at October, 1995 and April,
1995 of $3,325,032 and $3,305,850,
respectively 233,056 250,505
--------- ---------
$ 769,601 $ 790,753
========= =========
LIABILITIES AND STOCKHOLDERS' EQUITY
------------------------------------
Current liabilities:
Accounts payable and accrued
liabilities $ 47,887 $ 42,940
--------- ---------
Total current liabilities 47,887 42,940
--------- ---------
Deferred compensation payable 20,987 38,210
--------- ---------
Stockholders' equity:
Capital stock 680,929 680,929
Additional paid-in capital 89,504 89,504
Retained earnings (deficit) (69,706) (60,830)
--------- ---------
Total stockholders' equity 700,727 709,603
--------- ---------
$ 769,601 $ 790,753
========= =========
</TABLE>
See accompanying notes to financial statements.
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AMACAN RESOURCES CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
Three Months and Six Months Ended October 31, 1995 and 1994
(Unaudited)
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
-------------------------- --------------------------
October 31, October 31,
-------------------------- --------------------------
1995 1994 1995 1994
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
Revenue:
Oil and gas $ 33,622 $ 46,813 $ 75,132 $ 96,203
Interest income 9,934 4,783 13,684 8,670
----------- ----------- ----------- -----------
Total revenue 43,556 51,596 88,816 104,873
----------- ----------- ----------- -----------
Costs and expenses:
Depreciation and depletion 9,051 12,505 19,182 24,957
Operating costs 15,686 14,687 28,338 28,929
Taxes other than income taxes 4,199 6,070 10,037 12,828
Other costs and expenses 23,530 18,530 39,232 37,030
----------- ----------- ----------- -----------
Total costs and expenses 52,466 51,792 96,789 103,744
----------- ----------- ----------- -----------
Earnings (loss) before provision
for taxes (8,910) (196) (7,973) 1,129
Provision for income taxes (633) (1,123) (903) (1,123)
----------- ----------- ----------- -----------
Net (loss) earnings (9,543) (1,319) (8,876) 6
Retained earnings (deficit),
beginning (60,163) (48,123) (60,830) (49,448)
----------- ----------- ----------- -----------
Retained earnings (deficit),
ending $ (69,706) $ (49,442) $ (69,706) $ (49,442)
=========== =========== =========== ===========
Earnings (loss) per share $ (.0035) $ (.0005) $ (.0033) $ (.0000)
=========== =========== =========== ===========
Dividends None None None None
Average shares outstanding 2,723,714 2,723,714 2,723,714 2,723,714
Sales of unregistered
securities None None None None
</TABLE>
See accompanying notes to financial statements.
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AMACAN RESOURCES CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
Six Months Ended October 31, 1995 and 1994
(Unaudited)
<TABLE>
<CAPTION>
1995 1994
-------- ---------
<S> <C> <C>
Cash flows from operating activities:
Net earnings (loss) $ (8,876) $ 6
-------- ---------
Adjustments to reconcile
net earnings to cash
provided by operating activities:
Depreciation, depletion
and amortization 19,182 24,957
(Increase) decrease in
accounts receivable (3,537) 1,215
Increase (decrease) in
accounts payable and
accrued liabilities 4,947 2,242
Increase (decrease) in
deferred compensation (17,223) (16,064)
-------- ---------
Total adjustments 3,369 12,350
-------- ---------
Net cash provided (used) by operating
activities (5,507) 12,356
-------- ---------
Cash flows from investing activities:
Capital expenditures (1,733) (7,793)
Investments in certificate of deposit (13,683) (429,697)
-------- ---------
Net cash used in investing activities (15,416) (437,490)
-------- ---------
Increase (decrease) in cash and
cash equivalents (20,923) (425,134)
Cash and cash equivalents,
beginning of year 84,851 502,861
-------- ---------
Cash and cash equivalents,
end of year $ 63,928 $ 77,727
======== =========
</TABLE>
See accompanying notes to financial statements.
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AMACAN RESOURCES CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
October 31, 1995
(Unaudited)
Note A -- Basis of Presentation
The accompanying unaudited condensed consolidated financial statements have
been prepared in accordance with generally accepted accounting principles
for interim financial information and with the instructions to Form 10-QSB
and Item 310(b) of Regulation S-B. Accordingly, they do not include all of
the information and footnotes required by generally accepted accounting
principles for complete financial statements. 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 six months ended October 31, 1995 are not necessarily indicative of the
results that may be expected for the year ended April 30, 1996. The
unaudited condensed consolidated financial statements should be read in
conjunction with the consolidated financial statements and footnotes
thereto included in the Company's annual report on Form 10-KSB for the year
ended April 30, 1995.
Note B -- Supplemental Disclosures of Cash Flow Information
The Company paid cash of $565 and $633 during the period ended October 31,
1995 for interest and taxes, respectively.
For the same period ended October 31, 1994, the Company paid cash of $1,121
for interest and $1,123 for taxes.
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ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
General Condition
The Company's principal activities have consisted of production from oil and gas
reserves during the interim period since April 30, 1995.
Liquidity and Capital Resources
The Company's liquidity is provided by revenue from participation in oil and gas
operations, and historically by long-term debt provided by bank loans, and
issues of capital stock. The Company has during the last six months been able to
generate sufficient cash to pay for its share of expenses associated with
production of the Company's interest in oil and gas reserves.
The Company anticipates that its oil and gas operations during the 1995-96
fiscal year can be adequately financed through its share of revenues from such
operations. The Company is actively seeking to diversify its business and is
evaluating opportunities unrelated to oil and gas production. In the event
commitments, arrangements or agreements related to new business opportunities
are finalized, the Company will likely be required to seek additional financing
to fund its participation. There are no arrangements for such financing and no
assurances that financing can be arranged on favorable terms, or at all. The
Company has no long term commitments for capital expenditures.
Results of Operations - Quarters Ended October 31, 1995 and 1994
During the most recent quarter, the Company reported a net loss of $9,543
compared with a net loss of $1,319 for the same quarter of the prior year. The
significant reasons are discussed below:
Revenue
Oil and gas revenue - decreased (from $46,813 to $33,622) primarily
because of decreased production of the Company's oil and gas reserves.
Interest income - increased (from $4,783 to $9,934) because of
increased rates and principal invested during the most recent quarter.
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ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS, CONTINUED
Results of Operations - Quarters Ended October 31, 1995 and 1994, Continued
Cost and Expenses
Depreciation and depletion - decreased (from $12,505 to $9,051) because
of decreased production of the Company's oil and gas reserves on which
this cost is based.
Operating costs - increased (from $14,687 to $15,686) because of
increased fees charged by the operator of the Company's wells.
Taxes other than income taxes - decreased (from $6,070 to $4,199)
because of decreased production subject to production taxes.
Other costs and expenses - increased (from $18,530 to $23,530)
primarily because of increased professional accounting fees since the
retirement of a Company officer who previously performed significant
accounting services for the Company.
Results of Operations, Six Months Ended October 31, 1995 and 1994
During the most recent six months the Company reported a net loss of $8,876
compared with net earnings of $6 for the comparable six months of the preceding
year. The significant reasons follow:
Revenue
Oil and gas revenue - decreased (from $96,203 to $75,132) primarily
because of decreased production of the Company's oil and gas reserves.
Interest income - increased (from $8,670 to $13,684) because of
increased interest rates and principal amounts for investments in
certificates of deposit.
Cost and Expenses
Depreciation and depletion - decreased (from $24,957 to $19,182)
because of decreased production of the Company's oil and gas reserves
on which depreciation and depletion cost is based.
Operating costs - did not materially differ from the comparable six
months of the immediately preceding year.
<PAGE> 8
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ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS, CONTINUED
Results of Operations, Six Months Ended October 31, 1995 and 1994, Continued
Taxes other than income taxes - decreased (from $12,828 to $10,037) in
the current quarter because of decreased revenue subject to taxes in
states requiring the payment of production taxes compared with the
comparable six months of the immediately preceding year.
Other costs and expenses - increased (from $37,030 to $39,232) because
of increased professional accounting fees compared with the comparable
six months of the immediately preceding year.
<PAGE> 9
Page 9 of 9
PART II: OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8K
(a) Exhibits - Exhibit No. 27 Financial Data Schedule (EDGAR)
(b) Reports on 8K - There were no reports on Form 8K filed for the
three months ended October 31, 1995.
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.
AMACAN RESOURCES CORPORATION
----------------------------
(Registrant)
By /s/ Lamar H. Holley
----------------------------
Lamar H. Holley, Vice President
and Chief Financial Officer
Date: December 14, 1995
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM AMACAN
RESOURCES CORPORATION CONDENSED CONSOLIDATED BALANCE SHEET AND STATEMENT OF
OPERATIONS AS OF AND FOR THE SIX MONTHS ENDED OCTOBER 31, 1995 AND IS QUALIFIED
IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> APR-30-1996
<PERIOD-END> OCT-31-1995
<CASH> 63928
<SECURITIES> 450369
<RECEIVABLES> 22248
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 536545
<PP&E> 3558088
<DEPRECIATION> 3325032
<TOTAL-ASSETS> 769601
<CURRENT-LIABILITIES> 47887
<BONDS> 20987
<COMMON> 0
0
770433
<OTHER-SE> (69,706)
<TOTAL-LIABILITY-AND-EQUITY> 769601
<SALES> 75132
<TOTAL-REVENUES> 88816
<CGS> 0
<TOTAL-COSTS> 57557
<OTHER-EXPENSES> 39232
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> (7,973)
<INCOME-TAX> (903)
<INCOME-CONTINUING> (8876)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (8876)
<EPS-PRIMARY> (.033)
<EPS-DILUTED> (.033)
</TABLE>
