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 pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934 For the quarterly period ended June 30, 2000
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or
[ ] Transition Report pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934
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 small business issuer 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 offices)
(801) 983-7002
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(Issuer's telephone number)
N/A
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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 August 11, 2000, 1,380,997 shares of common stock were outstanding.
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<CAPTION>
AMERICAN GEOLOGICAL ENTERPRISES, INC.
Condensed Consolidated Balance Sheets
June 30,
2000 December 31,
(unaudited) 1999
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Assets
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<S> <C> <C>
Current assets:
Cash and cash equivalents $1,027,615 981,316
Marketable securities held-for-sale 201,451 204,738
Accounts receivable 20,930 19,479
Interest and dividends receivable 1,276 1,276
Prepaid lease costs 24 73
Prepaid income taxes - 17,954
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Total current assets 1,251,296 1,224,836
Investment in geothermal power unit, at cost, less accumulated
amortization of $209,924 at June 30, 2000 and $194,929 at
December 31, 1999
617,275 632,270
Marketable securities held-to-maturity 70,766 70,833
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Total assets 1,939,337 1,927,939
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Liabilities and Stockholders' Equity
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Current liabilities:
Accounts payable $ 6,256 10,275
Income taxes payable 12,385 -
Accrued liabilities 1,684 976
Deferred income taxes 4,007 5,233
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Total current liabilities 24,332 16,484
Deferred income taxes 73,379 77,810
Deferred revenue 873,760 894,985
Minority interest 12,001 12,001
Stockholders' equity:
Common stock, $.01 par value; authorized 2,500,000 shares;
issued and and outstanding 1,380,997 shares at June 30, 2000 and
December 31, 1999 13,810 13,810
Additional paid-in capital 600,411 600,411
Accumulated other comprehensive income 6,736 8,797
Retained earnings 334,908 303,641
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Total stockholders' equity 955,865 926,659
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Total liabilities and stockholders' equity $1,939,337 1,927,939
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</TABLE>
See accompanying notes to condensed consolidated financial statements.
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<CAPTION>
AMERICAN GEOLOGICAL ENTERPRISES, INC.
Condensed Consolidated Statements of Income
(Unaudited)
Three months ended Six months ended
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June 30, June 30, June 30, June 30,
2000 1999 2000 1999
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<S> <C> <C> <C> <C>
Revenues - geothermal power unit 42,923 43,926 85,853 88,119
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Expenses:
Operating and maintenance of geothermal
power unit 7,897 14,650 28,032 29,014
Amortization of geothermal power unit 7,498 7,498 14,995 14,995
General and administrative 8,721 8,832 18,477 24,848
Lease costs 24 744 48 1,905
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Total expenses 24,140 31,724 61,552 70,762
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Operating income 18,783 12,202 24,301 17,357
Other income:
Interest income 7,694 7,110 15,224 14,124
Dividend income 1,998 1,681 2,856 2,546
Royalties - 92 96 92
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Total other income 9,692 8,883 18,176 16,762
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Income before income taxes 28,475 21,085 42,477 34,119
Income tax expense 3,933 5,182 11,210 7,593
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Net income $ 24,542 15,903 31,267 26,526
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Basic net income per common share $ .02 .01 .02 .02
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See accompanying notes to condensed consolidated financial statements.
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<CAPTION>
AMERICAN GEOLOGICAL ENTERPRISES, INC.
Condensed Consolidated Statements of Cash Flows
(Unaudited)
Six months ended
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June 30, June 30,
2000 1999
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<S> <C> <C>
Cash flows from operating activities:
Net income $ 31,267 26,526
Adjustments to reconcile net income to net cash provided by
operating activities:
Amortization of geothermal power unit 14,995 14,995
Amortization on investments 67 67
Change in operating assets and liabilities:
Accounts receivable (1,451) (1,219)
Prepaid lease costs 49 1,905
Prepaid income taxes 17,954 (2,497)
Accounts payable and accrued liabilities (3,311) 730
Income taxes payable 12,385 (7,636)
Deferred income taxes (4,431) (4,415)
Deferred revenue (21,225) (21,225)
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Net cash provided by operating activities 46,299 7,231
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Cash flows from investing activities-
purchase of marketable securities available-for-sale - (432)
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Net cash used in investing activities - (432)
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Increase in cash and cash equivalents 46,299 6,799
Cash and cash equivalents, beginning of period 981,316 945,212
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Cash and cash equivalents, end of period $ 1,027,615 952,011
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Supplemental disclosure of cash flow information -
cash paid during the period for income taxes $ 3,960 22,143
</TABLE>
See accompanying notes to condensed consolidated financial statements.
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AMERICAN GEOLOGICAL ENTERPRISES, INC.
Notes to Condensed Consolidated Financial Statements
(Unaudited)
1. Basis of Presentation
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The financial statements as of June 30, 2000, 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, 1999
and 1998. 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.
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AMERICAN GEOLOGICAL ENTERPRISES, INC.
Management's Discussion and Analysis
or Plan of Operation
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 June 30, 2000, AGE's financial condition is consistent with December 31,
1999. Income and expenses for the three months ended and the six months ended
June 30, 2000 and 1999 experienced some minor variations. Decreased operating
and maintenance expenses for the geothermal power unit for the three months
ended June 30, 2000 compared to the three months ended June 30, 1999 are
considered a normal fluctuation in operations. Decreased general and
administrative costs for the six months ended June 30, 2000 compared to the six
months ended June 30, 1999 is due to the fact that these expenses, particularly
professional fees, are not incurred ratably during the year. The decrease in
income tax expense for the three months ended June 30, 2000 compared to the
three months ended June 30, 1999 is due to the change in deferred income taxes
that is included in income tax expense. All other income and expenses were
consistent.
Liquidity & Commitments
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AGE's liquidity at June 30, 2000, is considered adequate with $1,226,964 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.
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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)
August 14, 2000 /s/ Dominic Welch
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Date DOMINIC WELCH, President/Treasurer
August 14, 2000 /s/ Peter W. G. Cayias
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Date PETER W.G. CAYIAS, Secretary
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