FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
Quarterly Report Under Section 13 or 15(d)
of the Securities Exchange Act of 1934
For Quarter Ended December 31, 1999 Commission File No. 0-1587
GNC ENERGY CORPORATION
(Exact name of registrant as specified in its charter)
DELAWARE 75-1050549
(State or other jurisdiction of I.R.S. Employer Identification
incorporation or organization No.)
8235 Douglas Ave., Suite 210........... Dallas, Texas 75225
(address of principal executive offices and zip code)
(214) 691-9436
(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_____ No_____
Indicate the number of shares outstanding of each of the issuer's
classes of common stock, as of the latest practicable date.
Outstanding at
Class December 31, 1999
Common Stock, $0.40 par value 5,203,706
GNC ENERGY CORPORATION
INDEX
Part I Financial Information: Page No.
Consolidated Balance Sheets - December 31, 1999
and September 30, 1999 ............................2 - 3
Consolidated Balance Sheets - March 31, 1999
and March 31, 1998 ................................4 - 5
Consolidated Statement of Operations - Three Months
Ended December 31, 1999 and September 30, 1999...... 6
Consolidated Statement of Operations - Nine Months
Ended December 31, 1999 and December 31, 1998....... 7
Consolidated Statement of Changes in Stockholders'
Equity (Deficit) - Three Months Ended December 31,
1999................................................ 8
Condensed Consolidated Statements of Changes in
Financial Position -Three Months Ended
December 31, 1999................................... 9
Condensed Consolidated Statements of Changes in
Financial Position - Nine Months Ended
December 31, 1999................................... 10
Part II Other Information:
Management's Discussion and Analysis of Financial
Condition and Results of Operations................. 11
Signatures............................................... 12
PART I: FINANCIAL INFORMATION
GNC ENERGY CORPORATION
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
ASSETS
December 31, September 30,
1999 1999_____
Current Assets:
Cash $ - $ -
Recoverable deposits - -
Equipment in Inventory - -
Total current assets 0 0
Property, plant and equipment
at cost, substantially pledged:
Oil and gas 186,406 186,406
Tar sands - -
Total fixed assets 186,406 186,406
Less accumulated depreciation,
depletion and amortization (186,237) (186,221)
Net fixed assets 169 _______185
Total Assets $ 169 $ 185
(2)
GNC ENERGY CORPORATION
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
December 31, September 30,
1999 1999______
Current liabilities:
Accounts payable 3,059,449 3,058,120
Accrued expenses 2,011,726 2,011,726
Accrued interest expense 1,984,090 1,960,628
Total current liabilities 7,055,265 7,030,474
Stockholders' equity (deficit):
Common stock, $.40 par value
Authorized - 10,000,000 shares
Issued and outstanding -
5,203,706 2,081,482 2,081,482
Capital in excess of par value 17,000,421 17,000,421
Accumulated deficit (26,136,999) (26,112,192)
Total equity (7,055,096) (7,030,289)
Total Liabilities & Equity $ 169 $ 185
(3)
GNC ENERGY CORPORATION
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
ASSETS
March 31,
1999 1998__
Current assets:
Cash $ - $ -
Accounts receivable, net - -
Prepaid Expenses - 1,000
Recoverable deposits 0 0
Total current assets 0 1,000
Property, plant, and equipment
at cost, substantially pledged:
Oil and gas 186,406 186,156
Tar sands - -
186,406 186,156
Less accumulated depreciation,
depletion and amortization 186,191 186,156
Total fixed assets 215 0
Total Assets $ 215 $ 1,000
(4)
GNC ENERGY CORPORATION
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
LIABILITIES AND STOCKHOLDERS' EQUITY
March 31,
1999 1998___
Current liabilitites:
Accounts payable 3,048,615 3,049,328
Accrued expenses 2,011,738 2,012,299
Accrued interest expense 1,890,243 1,737,742
6,950,596 6,799,369
Stockholders' equity (deficit):
Common stock, $.40 par value
Authorized - 10,000,000 shares
Issued and outstanding -
5,203,706 shares in 1986 and
1987 2,081,482 2,081,482
Capital in excess of par value 17,000,421 17,000,421
Accumulated deficit (26,032,284) (25,880,272)
Total equity ( 6,950,381) ( 6,798,369)
Total Liabilities & Equity $ 215 $ 1,000
(5)
GNC ENERGY CORPORATION
CONSOLIDATED STATEMENT OF OPERATIONS
(UNAUDITED)
3 Months Ended 3 Months Ended
December 31, September 30,
1999 1999____
Net Sales $ 4,252 $ 3,738
Cost and expenses:
Cost of sales 3,545 4,611
General and administrative 2,037 5,000
Depreciation, depletion, and
amortization 15 15
Total Oil/Gas Operating Expenses 5,597 9,626
Income (Loss) from Operations (1,345) ( 5,888)
Other Income (Expense)
Interest, net ( 23,462) ( 35,193)
Accounting fees - -
Property Taxes - -
Miscellaneous - -
Extraordinary, net - -
Administrative Fees - -
Other income (loss) (23,462) ( 35,193)
Net Loss $ (24,807) $ ( 41,081)
Loss per share $ (.005) $ (.01)
Weighted average shares outstanding 5,203,706 5,203,706
(6)
GNC ENERGY CORPORATION
CONSOLIDATED STATEMENT OF OPERATIONS
(UNAUDITED)
9 Months Ended 9 Months Ended
December 31, December 31,
1999____ 1998_____
Net Sales $ 9,959 $ 10,889
Cost and expenses:
Cost of sales 11,317 9,289
General and administrative 9,413 12,039
Depreciation, depletion, and
amortization 46 9
Total operating expenses 20,776 21,337
Loss from operations ( 10,817) (10,448)
Other income (expense)
Interest, net ( 93,847) (119,807)
Accounting fees - 1,000
Taxes ( 50) ( 50)
Extraordinary Income - 179
Extraordinary Loss - -
Other Expense - -
Administrative Fees - -
Other income (loss) ( 93,897) ( 118,678)
Net gain (loss) $ ( 104,714) $ ( 129,126)
Gain (loss) per share ( .02) $ (.02)
Weighted average shares outstanding 5,203,706 5,203,706
(7)
GNC ENERGY CORPORATION
CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY (DEFICIT)
(UNAUDITED)
Capital in
Common Stock excess of Accumulated
Shares Amount par value deficit
Balance at
9/30/99 5,203,706 $2,081,482 $17,000,421 $(26,112,192)
Net Loss - - - (24,807)
Balance at
12/31/99 5,203,706 $2,081,482 $17,000,421 $(26,136,999)
(8)
GNC ENERGY CORPORATION
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN FINANCIAL POSITION
(UNAUDITED)
3 Months Ended 3 Months Ended
December 31, September 30,
1999 1999_____
Financial resources were applied to:
Net gain(loss) $ (24,806) $ ( 41,081)
Lease & Well Equipment - -
Items not affecting working
capital:
Depreciation, depletion, and
amortization 15 15
__________0 __________0
Increase(Decrease) in working capital $ (24,791) $ ( 41,066)
Changes in elements of working
capital:
Cash $ - $ -
Accounts receivable - -
Other current assets - -
Accounts payable and accrued
expenses ___ (24,791) ___( 41,066)
$ (24,791) $ ( 41,066)
(9)
GNC ENERGY CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN FINANCIAL POSITION
(UNAUDITED)
9 Months Ended 9 Months Ended
December 31, December 31,
1999 1998_____
Financial resources were
applied to:
Net loss $ ( 104,714) $ ( 129,126)
Fixed Assets - (250)
Other Adjustments - -
Items not affecting working
capital:
Depreciation, depletion,
and amortization 45 9
( 104,669) ( 129,367)
Financial resources were
provided by:
Net profit - -
- -
- -
Increase (decrease) in working
capital $ ( 104,669) $ ( 129,367)
Changes in elements of working
capital:
Cash $ - $ -
Accounts receivable - -
Other Current Assets - (1,000)
Accounts payable and accrued
expenses ( 104,669) (128,367)
Increase (decrease) in
working capital $ ( 104,669) $ (129,367)
(10)
GNC ENERGY CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
1. In the opinion of the Company, the accompanying unaudited
consolidated financial statements contain all adjustments necessary to
present fairly the financial position as of December 31, 1999. We are
continuing to work with our creditors to attempt to achieve a plan of
reorganization without bankruptcy.
2. The results of operations for the three-month and nine-month
periods ended December 31, 1999, are not necessarily indicative of
the results to be expected for the full year. For further
information, refer to the consolidated financial statements and
footnotes thereto included in the Company's annual report on Form 10-K
for the year ended March 31, 1999.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
RESULTS OF OPERATIONS
Income Taxes - No provisions were made for the period ended December
31, 1999, since the Company has unused deductions and tax credits for
financial statement purposes.
(11)
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.
GNC ENERGY CORPORATION
(Registrant)
Date: February 9, 2000 By_______________________
W. H.HUDSON, President
and
Chief Financial Officer
(12)
