FORM 10-QSB.-- QUARTERLY REPORT UNDER SECTION 13
OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
(Last amended by 34-32231, eff. 6/3/93)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-QSB
[X] Quarterly Report Under Section 13 or 15(d) of the Securities Exchange
Act of 1934
For the quarterly period ended June 30, 1997
or
[ ] Transition Report Under Section 13 or 15(d) of the Exchange Act
For the transition period from ____________ to ________________
Commission file number 2-54020
American Geological Enterprises, Inc.
(Exact name of registrant as specified in its charter)
Utah 87-0273300
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
1102 Walker Center Salt Lake City, Utah 84111
(Address of principal executive officers)
(801) 363-3283
(Registrant's telephone number)
(Former name, former address, and former fiscal year, if changed since last
report)
Check whether the registrant (1) filed all reports required to be filed by
Section 13 or 15(d) of the Securities 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. [X]
Yes [ ] No
As of June 30, 1997, 1,260,997 shares of common stock were outstanding.
<PAGE>
AMERICAN GEOLOGICAL ENTERPRISES, INC.
Balance Sheets
<TABLE>
<CAPTION>
Assets
June 30, December 31,
1997 1996
(unaudited)
Current assets:
<S> <C> <C>
Cash and cash equivalents $ 877,954 833,654
Marketable securities held-for-sale 203,683 193,217
Accounts receivable 21,749 24,414
Interest and dividends receivable 1,276 1,276
Prepaid lease costs 1,996 2,649
Total current assets 1,106,658 1,055,210
---------- ---------
Investment in geothermal power unit, at cost, less accumulated amortization of
$119,957 in 1997 and $104,962 in 1996 707,242 722,237
Marketable securities held-to-maturity 71,172 71,239
---------- ---------
$1,885,072 1,848,686
========== =========
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable $ 10,045 6,793
Income taxes payable 11,567 2,089
Accrued liabilities 23,825 20,730
---------- ---------
Total current liabilities 45,437 29,612
Deferred income taxes 108,069 109,976
Deferred revenue 1,001,109 1,022,335
Minority interest 10,086 10,086
Stockholders' equity:
Common stock, $.01 par value; authorized 2,500,000 shares; issued and
outstanding 1,260,997 shares 12,610 12,610
Additional paid-in capital 557,211 557,211
Unrealized gain on marketable securities, net of tax 16,314 9,383
Retained earnings 134,236 97,473
---------- ---------
720,371 676,677
---------- ---------
$1,885,072 1,848,686
========== =========
</TABLE>
See accompanying notes to financial statements.
<PAGE>
AMERICAN GEOLOGICAL ENTERPRISES, INC.
Statements of Operations
(Unaudited)
<TABLE>
<CAPTION>
Three months ended Six months ended
June 30, June 30, June 30, June 30,
1997 1996 1997 1996
Revenues - gross revenues from geothermal
<S> <C> <C> <C> <C>
power unit 41,716 40,842 83,124 81,585
------ ------ ------ ------
Expenses:
Operating expenses of geothermal
power unit 17,647 14,744 31,408 32,088
Amortization of geothermal power unit 7,498 7,498 14,995 14,995
Lease costs 1,161 1,161 2,322 2,322
General and administrative 6,304 14,988 9,224 23,089
------ ------ ------ ------
32,610 38,391 57,949 72,494
------ ------ ------ ------
Income from operations 9,106 2,451 25,175 9,091
Other income and expenses:
Interest income 9,729 8,852 19,236 19,314
Dividend income 2,229 2,093 3,657 3,473
Royalty income 387 558 766 752
------ ------ ------ ------
12,345 11,503 23,659 23,539
------ ------ ------ ------
Income before income taxes 21,451 13,954 48,834 32,630
Income tax expense 3,141 2,030 12,071 6,555
------ ------ ------ ------
Net income $18,310 11,924 36,763 26,075
====== ====== ====== ======
Net income per share $ .01 .01 .03 .02
====== ====== ====== ======
</TABLE>
See accompanying notes to financial statements.
<PAGE>
AMERICAN GEOLOGICAL ENTERPRISES, INC.
Statements of Cash Flows
(Unaudited)
<TABLE>
<CAPTION>
Six months ended
June 30, June 30,
1997 1996
Cash flows from operating activities:
<S> <C> <C>
Net income $ 36,763 26,075
Adjustments to reconcile net income to net cash provided by operating
activities:
Amortization of geothermal power unit 14,995 14,995
Accretion on marketable securities held to maturity 67 52
Change in operating assets and liabilities:
Accounts receivable 2,665 (163)
Interest and dividends receivable -- (321)
Prepaid income taxes -- (2,856)
Prepaid lease costs 653 663
Accounts payable 3,252 (13,395)
Accrued liabilities 3,095 3,018
Income taxes payable 9,478 (68,269)
Deferred income taxes (5,109) (5,651)
Deferred revenue (21,226) (21,225)
----------- ---------
Net cash provided by/(used in) operating activities (44,633) (67,077)
----------- ---------
Cash flows from investing activities:
Purchase of marketable securities (333) (245)
----------- ---------
Net cash used in investing activities (333) (245)
----------- ---------
Increase (decrease) in cash and cash equivalents 44,300 (67,322)
Cash and cash equivalents at beginning of period 833,654 869,129
----------- ---------
Cash and cash equivalents at end of period $ 877,954 801,807
=========== =========
</TABLE>
See accompanying notes to financial statements.
AMERICAN GEOLOGICAL ENTERPRISES, INC.
Notes and Disclosures to Form 10-QSB
1. Presentation
The financial statements as of June 30, 1997, and for the six months
then ended were prepared by American Geological Enterprises, Inc. (AGE) without
audit pursuant to the rules and regulations of the Securities and Exchange
Commission (SEC). Certain information and footnote disclosures normally included
in the financial statements prepared in accordance with generally accepted
accounting principles have been condensed or omitted pursuant to such rules and
regulations. In the opinion of management, all necessary adjustments to the
financial statements have been made to present fairly the financial position and
results of operations and cash flows. The results of operations for the periods
presented are not necessarily indicative of the results for the respective
complete years. AGE has previously filed with the SEC a Form 10-KSB, which
included audited financial statements for the two years ending December 31, 1996
and 1995. It is suggested that the financial statements contained in this filing
be read in conjunction with the statements and notes thereto contained in AGE's
Form 10-KSB filing.
2. Net Income Per Share
Net income per share is computed by dividing net income by the weighted
average number of shares outstanding during each period.
<PAGE>
AMERICAN GEOLOGICAL ENTERPRISES, INC.
Management's Discussion and Analysis of Financial Condition
and Results of Operations
AGE is engaged in the acquisition of geothermal and oil and gas leases. Revenue
consists of royalties and interest. AGE's financial condition and results of
operations fluctuate from year to year, depending upon the production from
current leases, the availability of leases to be acquired, and the opportunity
to sell lease rights. AGE's ability to obtain future leases or to generate
revenues from the sale of lease rights is not determinable; hence, its financial
condition and operations may fluctuate widely in the future.
Financial Condition & Results of Operations
At June 30, 1997, AGE's financial condition is consistent with December 31,
1996. Income and expenses for the three months ended and the six months ended
June 30, 1997 and 1996 are consistent except for general and administrative
expenses that increased in 1996 due to increased professional fees.
Liquidity
AGE's liquidity at June 30, 1997, is considered adequate with $1,061,221 in
working capital. AGE is committed to furnish its share of steam from its
investment in a geothermal power unit to Utah Power & Light under a 30-year
agreement that commenced in 1991. Additionally, AGE's future commitments consist
of lease payments on the land which lies within the participating area of the
geothermal power unit. There are no other commitments or anticipated
expenditures of a capital nature.
AGE's economic future will be dependent, in major part, upon the value of its
undeveloped interests in the geothermal power unit. The value of such
undeveloped interests will, in turn, be dependent upon, among other matters (a)
the then current price of energy; (b) governmental incentives to develop
renewable resources; (c) regulatory incentives; and (d) the load needs of UP&L.
Other
A tax rate of 35 percent was used for income tax calculations for 1997. Current
estimates support 35 percent as the effective tax rate for the 1997 year.
<PAGE>
Part II
Other Information
There is no information to be submitted under Part II, and no reports were
required to be filed under Form 8-K during the period.
S I G N A T U R E S
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.
AMERICAN GEOLOGICAL ENTERPRISES, INC.
(Registrant)
August 15, 1997 Dominic Welch
- ----------------- ----------------------------
Date DOMINIC WELCH, Treasurer
August 15, 1997 Peter W. G. Cayias
- ----------------- ----------------------------
Date PETER W.G. CAYIAS, Secretary
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-START> APR-01-1997
<PERIOD-END> JUN-30-1997
<CASH> 877954
<SECURITIES> 203683
<RECEIVABLES> 23025
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 1106658
<PP&E> 707242
<DEPRECIATION> 119957
<TOTAL-ASSETS> 1885072
<CURRENT-LIABILITIES> 45437
<BONDS> 0
0
0
<COMMON> 12610
<OTHER-SE> 707761
<TOTAL-LIABILITY-AND-EQUITY> 1885072
<SALES> 0
<TOTAL-REVENUES> 41716
<CGS> 0
<TOTAL-COSTS> 32610
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 21451
<INCOME-TAX> 3141
<INCOME-CONTINUING> 18310
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 18310
<EPS-PRIMARY> 0.01
<EPS-DILUTED> 0.01
</TABLE>
