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, 2000
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)
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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, 2000, 1,380,997 shares of common stock were outstanding.
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AMERICAN GEOLOGICAL ENTERPRISES, INC.
Balance Sheets
March 31,
2000 December 31,
(unaudited) 1999
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Assets
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Current assets:
Cash and cash equivalents $1,008,266 $ 981,316
Marketable securities held-for-sale 203,194 204,738
Accounts receivable 10,214 19,479
Interest receivable 1,723 1,276
Prepaid lease costs 48 73
Prepaid income taxes 13,785 17,954
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Total current assets 1,237,230 1,224,836
Investment in geothermal power unit,
at cost, less accumulated amortization
of $202,427 in 2000 and $194,929 in 1999 624,772 632,270
Marketable securities held-to-maturity 70,799 70,833
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$1,932,801 $1,927,939
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Liabilities and Stockholders' Equity
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Current liabilities:
Accounts payable $ 17,611 $ 10,275
Accrued liabilities 1,584 976
Deferred income taxes 4,658 5,233
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Total current liabilities 23,853 16,484
Deferred income taxes 80,159 77,810
Deferred revenue 884,372 894,985
Minority interest 12,001 12,001
Stockholders' equity:
Common stock, $.01 par value; authorized
2,500,000 shares; issued and outstanding
1,380,997 and 1,260,997 shares in 2000 and
1999, respectively 13,810 13,810
Additional paid-in capital 600,411 600,411
Accumulated other comprehensive income 7,829 8,797
Retained earnings 310,366 303,641
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932,416 926,659
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$1,932,801 $1,927,939
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See accompanying notes to financial statements.
2
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AMERICAN GEOLOGICAL ENTERPRISES, INC.
Statements of Operations
(Unaudited)
Three months ended
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March 31, March 31,
2000 1999
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Revenues - gross revenues from geothermal power unit $42,930 $44,193
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Expenses:
Operating expenses of geothermal power unit 20,135 14,364
Amortization of geothermal power unit 7,497 7,497
Lease costs 24 1,161
Other general and administrative 9,756 16,016
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37,412 39,038
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Income from operations 5,518 5,155
Other income and expenses:
Interest income 7,530 7,014
Dividend income 858 865
Royalties 96 --
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8,484 7,879
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Income before income taxes 14,002 13,034
Income tax expense 7,277 2,411
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Net income $ 6,725 $10,623
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Net income per share $ .01 $ .01
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See accompanying notes to financial statements.
3
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AMERICAN GEOLOGICAL ENTERPRISES, INC.
<TABLE>
<CAPTION>
Statements of Cash Flows
(Unaudited)
Three months ended
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March 31, March 31,
2000 1999
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<S> <C> <C>
Cash flows from operating activities:
Net income $ 6,725 $ 10,623
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 34 33
Change in operating assets and liabilities:
Accounts receivable 9,265 (2,243)
Interest and dividends receivable (447) (447)
Prepaid lease costs 25 1,162
Prepaid income taxes 4,169 --
Accounts payable 7,336 (2,999)
Income taxes payable -- 2,245
Accrued liabilities 608 915
Deferred income taxes 2,351 (2,177)
Deferred revenue (10,613) (10,613)
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Net cash provided by operating activities 26,950 3,996
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Increase in cash and cash equivalents 26,950 3,996
Cash and cash equivalents at beginning of period 981,316 945,212
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Cash and cash equivalents at end of period +$ 1,008,266 $ 949,208
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</TABLE>
See accompanying notes to financial statements.
4
<PAGE>
AMERICAN GEOLOGICAL ENTERPRISES, INC.
Notes and Disclosures to Form 10-QSB
1. Presentation
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The financial statements as of March 31, 2000, 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, 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.
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.
5
<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 March 31, 2000, AGE's financial condition is consistent with December 31,
1999. Income and expenses for the first quarters of 2000 and 1999 experienced
some variations. Increased operating expenses during the first quarter of 2000
compared to the first quarter of 1999 were considered a normal fluctuation in
operations. Decreased lease costs were due to the fact that certain leases that
are no longer part of the participating area of the geothermal power unit were
not renewed this past year. The decrease in general and administrative expenses
is due to the fact that these expenses, particularly professional fees, are not
incurred ratably during the year. The increase in income tax expense is due to
the change in deferred income taxes that is included in income tax expense. All
other income and expenses were consistent for the first quarters of 2000 and
1999.
Liquidity & Commitments
- -----------------------
AGE's liquidity at March 31, 2000, is considered adequate with $1,213,377 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.
6
<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, 2000 By: /s/ Dominic Welch
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Date DOMINIC WELCH, President/Treasurer
May 15, 2000 By: /s/ Peter W. G. Cayias
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Date PETER W.G. CAYIAS, Secretary
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<PERIOD-END> MAR-31-2000
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<SECURITIES> 273993
<RECEIVABLES> 10214
<ALLOWANCES> 0
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<COMMON> 13810
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