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, 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.)
495 East 4500 South, #102 Salt Lake City, UT 84107
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(Address of principal executive officers)
(801) 293-8101
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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, 1999, 1,260,997 shares of common stock were outstanding.
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<TABLE>
AMERICAN GEOLOGICAL ENTERPRISES, INC.
Balance Sheets
<CAPTION>
March 31,
1999 December 31,
Assets (unaudited) 1998
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<S> <C> <C>
Current assets:
Cash and cash equivalents $ 949,208 945,212
Marketable securities held-for-sale 205,574 209,049
Accounts receivable 22,117 19,874
Interest receivable 1,723 1,276
Prepaid lease costs 1,487 2,649
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Total current assets 1,180,109 1,178,060
Investment in geothermal power unit, at cost, less accumulated
amortization of $172,438 in 1999 and $164,940 in 1998 654,761 662,259
Marketable securities held-to-maturity 70,935 70,968
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$1,905,805 1,911,287
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Liabilities and Stockholders' Equity
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Current liabilities:
Accounts payable $ 9,239 12,238
Income taxes payable 9,881 7,636
Accrued liabilities 1,331 416
Deferred income taxes 8,361 9,658
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Total current liabilities 28,812 29,948
Deferred income taxes 84,480 86,657
Deferred revenue 926,822 937,435
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 14,055 16,234
Retained earnings 270,355 259,732
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854,231 845,787
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$1,905,805 1,911,287
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</TABLE>
See accompanying notes to financial statements.
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AMERICAN GEOLOGICAL ENTERPRISES, INC.
Statements of Operations
(Unaudited)
Three months ended
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March 31, March 31,
1999 1998
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Revenues - gross revenues from geothermal power unit $44,193 42,560
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Expenses:
Operating expenses of geothermal power unit 14,364 14,722
Amortization of geothermal power unit 7,497 7,498
Lease costs 1,161 1,161
Other general and administrative 16,016 12,341
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39,038 35,772
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Income from operations 5,155 6,788
Other income and expenses:
Interest income 7,014 8,694
Dividend income 865 899
Royalties -- 87
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7,879 9,680
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Income before income taxes 13,034 16,468
Income tax expense 2,411 3,500
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Net income $10,623 12,968
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Net income per share $ .01 .01
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See accompanying notes to financial statements.
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<TABLE>
AMERICAN GEOLOGICAL ENTERPRISES, INC.
Statements of Cash Flows
(Unaudited)
<CAPTION>
Three months ended
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March 31, March 31,
1999 1998
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<S> <C> <C>
Cash flows from operating activities:
Net income $ 10,623 12,968
Adjustments to reconcile net income to net cash provided by
(used in) operating activities:
Amortization of geothermal power unit 7,497 7,498
Accretion on marketable securities held to maturity 33 138
Change in operating assets and liabilities:
Accounts receivable (2,243) 15,377
Interest and dividends receivable (447) (447)
Prepaid lease costs 1,162 (509)
Accounts payable (2,999) 1,744
Income taxes payable 2,245 (6,978)
Accrued liabilities 915 (14,055)
Deferred income taxes (2,177) (2,204)
Deferred revenue (10,613) (10,613)
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Net cash provided by operating activities 3,996 2,919
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Increase in cash and cash equivalents 3,996 2,919
Cash and cash equivalents at beginning of period 945,212 935,431
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Cash and cash equivalents at end of period $ 949,208 938,350
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</TABLE>
See accompanying notes to financial statements.
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AMERICAN GEOLOGICAL ENTERPRISES, INC.
Notes and Disclosures to Form 10-QSB
1. Presentation
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The financial statements as of March 31, 1999, 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, 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
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At March 31, 1999, AGE's financial condition is consistent with December 31,
1998. Income and expenses for the first quarters of 1999 and 1998 are consistent
except for other general and administrative expenses and interest income. The
increase in general and administrative expenses in 1999 is mainly due to the
fact that these expenses, particularly professional fees, are not incurred
ratably during the year. The decrease in interest income in 1999 is due to a
decline in the interest rate for the largest portion of AGE's interest-earning
assets.
Liquidity & Commitments
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AGE's liquidity at March 31, 1999, is considered adequate with $1,151,297 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 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.
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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 14, 1999 /s/ Dominic Welch
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Date DOMINIC WELCH, President/Treasurer
May 14, 1999 /s/ Peter W. G. Cayias
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Date PETER W.G. CAYIAS, Secretary
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<PERIOD-START> JAN-01-1999
<PERIOD-END> MAR-31-1999
<CASH> 949208
<SECURITIES> 276509
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<COMMON> 12610
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