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 March 31, 1997
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or
[ ] Transition Report Under Section 13 or 15(d) of the Exchange Act
For the transition period from to
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Commission file number 2-54020
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American Geological Enterprises, Inc.
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(Exact name of registrant as specified in its charter)
Utah 87-0273300
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(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
1102 Walker Center Salt Lake City, Utah 84111
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(Address of principal executive officers)
(801) 363-3283
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(Registrant's telephone number)
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(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 March 31, 1997, 1,260,997 shares of common stock were outstanding.
<PAGE>
AMERICAN GEOLOGICAL ENTERPRISES, INC.
Balance Sheets
<TABLE>
<CAPTION>
Assets
------
March 31,
1997 December 31,
(unaudited) 1996
----------- ----------
Current assets:
<S> <C> <C>
Cash and cash equivalents $ 861,311 833,654
Marketable securities 192,763 193,217
Accounts receivable 21,508 24,414
Interest and dividends receivable 1,723 1,276
Prepaid lease costs 3,157 2,649
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Total current assets 1,080,462 1,055,210
Investment in geothermal power unit, at cost, less accumulated
amortization of $112,460 in 1997 and $104,962 in 1996 714,739 722,237
Marketable securities 71,206 71,239
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$1,866,407 1,848,686
========== =========
Liabilities and Stockholders' Equity
------------------------------------
Current liabilities:
Accounts payable $ 6,793 6,793
Income taxes payable 13,357 2,089
Accrued liabilities 22,270 20,730
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Total current liabilities 42,420 29,612
Deferred income taxes 107,000 109,976
Deferred revenue 1,011,722 1,022,335
Minority interest 10,086 10,086
Stockholders' equity:
Common stock, $.01 par value; authorized 2,500,000 shares; issued
and outstanding 1,260,997 shares 12,610 12,610
Additional paid-in capital 557,211 557,211
Unrealized gain on marketable securities, net of tax 9,432 9,383
Retained earnings 115,926 97,473
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695,179 676,677
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$ 1,866,407 1,848,686
=========== =========
</TABLE>
See accompanying notes to financial statements.
<PAGE>
AMERICAN GEOLOGICAL ENTERPRISES, INC.
Statements of Operations
(Unaudited)
Three months ended
March 31, March 31,
1997 1996
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Revenues - gross revenues from geothermal power unit 41,408 40,743
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Expenses:
Operating expenses of geothermal power unit 13,761 17,344
Amortization of geothermal power unit 7,497 7,497
Lease costs 1,161 1,161
Other general and administrative 2,920 8,101
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25,339 34,103
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Income from operations 16,069 6,640
Other income and expenses:
Interest income 9,507 10,462
Dividend income 1,428 1,380
Royalties 379 194
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11,314 12,036
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Income before income taxes 27,383 18,676
Income tax expense 8,930 4,525
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Net income $18,453 14,151
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Net income per share $ .01 .01
========= ========
See accompanying notes to financial statements.
<PAGE>
AMERICAN GEOLOGICAL ENTERPRISES, INC.
Statements of Cash Flows
(Unaudited)
<TABLE>
<CAPTION>
Three months ended
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March 31, March 31,
1997 1996
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Cash flows from operating activities:
<S> <C> <C>
Net income $ 18,453 14,151
Adjustments to reconcile net income to net cash provided by
(used in) operating activities:
Amortization of geothermal power unit 7,497 7,497
Accretion on marketable securities held to maturity 33 26
Change in operating assets and liabilities:
Accounts receivable 2,906 (67)
Interest and dividends receivable (447) (509)
Prepaid lease costs (508) (508)
Accounts payable 0 (14,198)
Income taxes payable 11,268 (33,519)
Accrued liabilities 1,540 1,506
Deferred income taxes (2,472) (2,440)
Deferred revenue (10,613) (10,612)
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Net cash provided by (used in) operating activities 27,657 (38,673)
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Increase (decrease) in cash and cash equivalents 27,657 (38,673)
Cash and cash equivalents at beginning of period 833,654 869,129
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Cash and cash equivalents at end of period $ 861,311 830,456
========== ==========
</TABLE>
See accompanying notes to financial statements.
<PAGE>
AMERICAN GEOLOGICAL ENTERPRISES, INC.
Notes and Disclosures to Form 10-QSB
1. Presentation
The financial statements as of March 31, 1997, and for the three 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
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At March 31, 1997, AGE's financial condition is consistent with December 31,
1996. Income and expenses for the first quarters of 1997 and 1996 are consistent
except for other general and administrative expenses that were greater in 1996
due to a proposed merger with Natural Gas Vehicle.
Liquidity
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AGE's liquidity at March 31, 1997, is considered adequate with $1,038,042 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 Utah
Power & Light.
Other
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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)
May 15, 1997 /s/ Dominic Welch
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Date DOMINIC WELCH, Treasurer
May 15, 1997 /s/ Peter W. G. Cayias
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Date PETER W.G. CAYIAS, Secretary
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<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-START> JAN-01-1997
<PERIOD-END> MAR-31-1997
<CASH> 861311
<SECURITIES> 263969
<RECEIVABLES> 23231
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 1080462
<PP&E> 827199
<DEPRECIATION> 112460
<TOTAL-ASSETS> 1866407
<CURRENT-LIABILITIES> 42420
<BONDS> 0
0
0
<COMMON> 12610
<OTHER-SE> 566643
<TOTAL-LIABILITY-AND-EQUITY> 1866407
<SALES> 0
<TOTAL-REVENUES> 41408
<CGS> 0
<TOTAL-COSTS> 25339
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 27383
<INCOME-TAX> 8930
<INCOME-CONTINUING> 18453
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<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 18453
<EPS-PRIMARY> .01
<EPS-DILUTED> .01
</TABLE>
