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, 1999
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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.)
1730 South 1100 East, Salt Lake City, UT 84105
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(Address of principal executive officers)
(801) 983-7002
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(Registrant's telephone number)
495 East 4500 South, Suite #102, Salt Lake City, UT 84107
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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 June 30, 1999, 1,260,997 shares of common stock were outstanding.
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<TABLE>
AMERICAN GEOLOGICAL ENTERPRISES, INC.
Balance Sheets
<CAPTION>
June 30,
1999 December 31,
Assets (unaudited) 1998
------ ---------- ---------
<S> <C> <C>
Current assets:
Cash and cash equivalents $ 952,011 945,212
Marketable securities held-for-sale 213,898 209,049
Accounts receivable 21,093 19,874
Interest and dividends receivable 1,276 1,276
Prepaid lease costs 744 2,649
Prepaid income taxes 2,497 --
---------- ---------
Total current assets 1,191,519 1,178,060
Investment in geothermal power unit,
at cost, less accumulated amortization
of $179,935 in 1999 and $149,946 in 1998 647,264 662,259
Marketable securities held-to-maturity 70,901 70,968
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$1,909,684 1,911,287
========== =========
Liabilities and Stockholders' Equity
------------------------------------
Current liabilities:
Accounts payable $ 12,429 12,238
Income taxes payable -- 7,636
Accrued liabilities 955 416
Deferred income taxes 11,305 9,658
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Total current liabilities 24,689 29,948
Deferred income taxes 82,241 86,657
Deferred revenue 916,210 937,435
Minority interest 11,460 11,460
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 19,004 16,234
Retained earnings 286,259 259,732
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875,084 845,787
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$1,909,684 1,911,287
========== =========
</TABLE>
See accompanying notes to financial statements.
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<TABLE>
AMERICAN GEOLOGICAL ENTERPRISES, INC.
Statements of Operations
(Unaudited)
<CAPTION>
Three months ended Six months ended
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June 30, June 30, June 30, June 30,
1999 1998 1999 1998
------- ------- ------- -------
<S> <C> <C> <C> <C>
Revenues-gross revenues from geothermal
power unit 43,926 42,807 88,119 85,367
------- ------- ------- -------
Expenses:
Operating expenses of geothermal
power unit 14,650 11,502 29,014 26,274
Amortization of geothermal power unit 7,498 7,497 14,995 14,995
Lease costs 744 1,142 1,905 2,303
General and administrative 8,832 11,730 24,848 24,071
------- ------- ------- -------
31,724 31,871 70,762 67,643
------- ------- ------- -------
Income from operations 12,202 10,936 17,357 17,724
Other income and expenses:
Interest income 7,110 7,599 14,124 16,293
Dividend income 1,681 1,694 2,546 2,593
Royalty income 92 131 92 218
------- ------- ------- -------
8,883 9,424 16,762 19,104
------- ------- ------- -------
Income before income taxes 21,085 20,360 34,119 36,828
Income tax expense 5,182 4,248 7,593 7,748
------- ------- ------- -------
Net income $15,903 16,112 26,526 29,080
======= ======= ======= =======
Net income per share $ .01 .01 .02 .02
======= ======= ======= =======
</TABLE>
See accompanying notes to financial statements.
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<TABLE>
AMERICAN GEOLOGICAL ENTERPRISES, INC.
Statements of Cash Flows
(Unaudited)
<CAPTION>
Six months ended
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June 30, June 30,
1999 1998
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<S> <C> <C>
Cash flows from operating activities:
Net income $ 26,526 29,080
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 69
Change in operating assets and liabilities:
Accounts receivable (1,219) (692)
Prepaid lease costs 1,905 633
Prepaid income taxes (2,497) (140)
Accounts payable 191 1,869
Income taxes payable (7,636) (18,374)
Accrued liabilities 539 (13,016)
Deferred income taxes (4,415) (5,000)
Deferred revenue (21,225) (21,225)
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Net cash provided by/(used in) operating activities 7,231 (11,801)
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Cash flows from investing activities:
Purchase of marketable securities (432) (344)
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Net cash used in investing activities (432) (344)
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Increase (decrease) in cash and cash equivalents 6,799 (12,145)
Cash and cash equivalents at beginning of period 945,212 935,431
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Cash and cash equivalents at end of period $ 952,011 923,286
========= =========
</TABLE>
See accompanying notes to financial statements.
<PAGE>
AMERICAN GEOLOGICAL ENTERPRISES, INC.
Notes and Disclosures to Form 10-QSB
1. Presentation
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The financial statements as of June 30, 1999, 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, 1998 and 1997. 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.
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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, 1999, AGE's financial condition is consistent with December 31,
1998. Income and expenses for the three months ended and the six months ended
June 30, 1999 and 1998 are also consistent.
Liquidity & Commitments
- -----------------------
AGE's liquidity at June 30, 1999, is considered adequate with $1,166,830 in
working capital. AGE is committed to furnish its share of steam from its
investment in a geothermal power unit to Pacificorp under a 30-year agreement
that commenced in 1991. Additionally, AGE's future commitments consist of lease
payments and royalties 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
Pacificorp.
<PAGE>
Part II
Other Information
There is no information to be submitted under Part II, and no reports were
required to be filed under FormE8-K during the period.
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.
AMERICAN GEOLOGICAL ENTERPRISES, INC.
(Registrant)
August 12,1999 /s/ Dominic Welch
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Date DOMINIC WELCH, President/Treasurer
August 12,1999 /s/ Peter W. G. Cayias
- --------------------------- -------------------------------------
Date PETER W.G. CAYIAS, Secretary
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<S> <C>
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<FISCAL-YEAR-END> DEC-31-1999
<PERIOD-END> JUN-30-1999
<CASH> 952011
<SECURITIES> 284799
<RECEIVABLES> 22369
<ALLOWANCES> 0
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<CURRENT-ASSETS> 1191519
<PP&E> 0
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<TOTAL-ASSETS> 1909684
<CURRENT-LIABILITIES> 24689
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0
0
<COMMON> 12610
<OTHER-SE> 884843
<TOTAL-LIABILITY-AND-EQUITY> 1909684
<SALES> 0
<TOTAL-REVENUES> 88119
<CGS> 0
<TOTAL-COSTS> 70762
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<INCOME-PRETAX> 34119
<INCOME-TAX> 7593
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<NET-INCOME> 26526
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<EPS-DILUTED> .02
</TABLE>
