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, 1995
or
_____ Transition Report Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Commission File Number 0-13111
ANALYTICAL SURVEYS, INC.
(Exact name of small business issuer as specified in its charter)
Colorado 84-0846389
(State of incorporation) (IRS Employer Identification No.)
1935 Jamboree Drive
Colorado Springs, Colorado 80920
(Address of principal executive offices) (Zip Code)
(719) 593-0093
(Issuer's telephone number)
Check whether the issuer (1) filed all reports required to be
filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 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 ninety (90)
days.
Yes __X__ No_____
The number of shares of common stock outstanding as of
July 27, 1995 was 2,758,749.
<PAGE>
Part I Item 1.
<TABLE>
ANALYTICAL SURVEYS, INC.
BALANCE SHEETS
(Unaudited)
<CAPTION>
June 30, Sept. 30,
1995 1994
_________ _________
<S> <C> <C>
ASSETS
CURRENT ASSETS
Cash $ 451,681 $ 552,232
Accounts receivable, net of $20,000
allowance for doubtful accounts 2,401,367 1,699,372
Unbilled revenues 4,801,064 3,988,270
Prepaid expenses 141,752 142,556
Deferred tax assets 49,491 60,137
_________ _________
Total current assets 7,845,355 6,442,567
_________ _________
PROPERTY AND EQUIPMENT, at cost
Equipment 6,256,863 5,766,095
Furniture and fixtures 713,833 637,155
Leasehold improvements 122,640 121,918
_________ _________
7,093,335 6,525,168
_________ _________
Less Accumulated depreciation and amortization (5,549,535) (4,967,046)
_________ _________
1,543,801 1,558,122
Goodwill, less accumulated amortization 14,153 15,367
_________ _________
TOTAL ASSETS $ 9,403,309 $ 8,016,056
========= =========
<FN>
See accompanying notes to financial statements.
</FN>
</TABLE>
<PAGE>
<TABLE>
ANALYTICAL SURVEYS, INC.
BALANCE SHEETS
(Unaudited)
<CAPTION>
June 30, Sept. 30,
1995 1994
_________ _________
<S> <C> <C>
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Notes payable to bank (Note 2) $ 150,000 $ --
Current maturities of long-term debt 413,943 647,800
Billings in excess of costs 358,067 420,139
Accounts payable and accrued expenses 1,467,200 758,032
Accrued payroll and benefits 447,636 578,929
Accrued income taxes 18,235 341,824
Accrued interest payable 3,891 2,654
_________ _________
Total current liabilities 2,858,971 2,749,378
Deferred income tax 132,400 232,065
Long-term debt, less current maturities 451,924 391,032
Deferred compensation 53,316 47,043
_________ _________
Total liabilities 3,496,611 3,419,518
_________ _________
STOCKHOLDERS' EQUITY
Preferred stock-authorized 2,500,000 shares
of no par value; none issued and outstanding
Common stock-authorized 100,000,000 shares
of no par value; issued and outstanding
2,745,874 shares at June 30, 1995 and
2,557,099 shares at September 30, 1994 3,142,893 2,462,283
Treasury stock- 23,500 common shares
at June 30, 1995 (Note 4) (124,844) --
Retained earnings 2,888,649 2,134,255
_________ _________
Total stockholders' equity 5,906,699 4,596,538
_________ _________
TOTAL LIABILITIES AND EQUITY $ 9,403,309 $ 8,016,056
========= =========
<FN>
See accompanying notes to financial statements.
</FN>
</TABLE>
<PAGE>
<TABLE>
ANALYTICAL SURVEYS, INC.
STATEMENTS OF OPERATIONS
(Unaudited)
<CAPTION>
Nine Months Ended Three Months Ended
June 30, June 30,
1995 1994 1995 1994
_________ _________ _________ _________
<S> <C> <C> <C> <C>
SALES OF SERVICES $9,768,929 $8,016,589 $3,576,340 $2,968,662
_________ _________ _________ _________
COSTS AND EXPENSES
Salaries, wages and benefits 3,802,521 3,341,977 1,352,661 1,135,693
Subcontractor costs 2,366,228 1,703,603 811,918 735,096
General and administrative 1,700,046 1,391,894 598,666 431,171
Depreciation and amortization 583,702 568,482 196,017 191,940
_________ _________ _________ _________
8,452,497 7,005,956 2,959,262 2,493,900
_________ _________ _________ _________
EARNINGS FROM OPERATIONS 1,316,432 1,010,633 617,078 474,762
_________ _________ _________ _________
OTHER INCOME (EXPENSE)
Interest (98,697) (147,458) (24,472) (45,016)
Miscellaneous Income 1,662 1,928 1,615 101
_________ _________ _________ _________
(97,035) (145,530) (22,857) (44,915)
_________ _________ _________ _________
EARNINGS BEFORE INCOME TAXES 1,219,397 865,103 594,221 429,847
INCOME TAX EXPENSE 465,000 328,000 227,000 163,204
_________ _________ _________ _________
NET EARNINGS $ 754,397 $ 537,103 $ 367,221 $ 266,643
========= ========= ========= =========
EARNINGS PER SHARE $ 0.26 $ 0.20 $ 0.13 $ 0.10
==== ==== ==== ====
<FN>
See accompanying notes to financial statements.
</FN>
</TABLE>
<PAGE>
<TABLE>
ANALYTICAL SURVEYS, INC.
STATEMENTS OF CASH FLOWS
(Unaudited)
<CAPTION>
Nine Months Ended Nine Months Ended
June 30, June 30,
1995 1994
_________ _________
<S> <C> <C>
CASH FLOWS PROVIDED (USED)
BY OPERATING ACTIVITIES $ (65,185) $ 413,423
_________ _________
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of property and equipment (568,167) (114,069)
_________ _________
Net cash used in investing activities (568,167) (114,069)
_________ _________
CASH FLOWS FROM FINANCING ACTIVITIES
Net borrowings (payments) under notes payable 150,000 --
Proceeds from issuance of long-term debt 459,179 85,481
Principal payments of long-term debt (632,144) (416,972)
Proceeds from issuance of common stock 680,610 32,830
Purchase of treasury stock (Note 4) (124,844) --
_________ _________
Net cash provided (used)
by financing activities 451,681 (298,661)
_________ _________
Net increase (decrease) in cash (100,551) 693
Cash at beginning of period 552,232 238,610
_________ _________
Cash at end of period $ 451,681 $ 239,303
========= =========
Supplemental cash flow disclosures:
Interest paid $ 97,460 $ 146,835
========= =========
Income taxes paid $ 624,736 $ 343,470
========= =========
<FN>
See accompanying notes to financial statements.
</FN>
</TABLE>
<PAGE>
ANALYTICAL SURVEYS, INC.
Quarterly Report on Form 10-QSB
June 30, 1995
Notes to Financial Statements
(Unaudited)
1. Summary of Significant Accounting Policies
The accompanying interim financial statements have been prepared
by management in accordance with the accounting policies
described in the Company's annual report for the year ended
September 30, 1994. They have not been audited by independent
auditors.
The financial statements reflect all adjustments which are, in
the opinion of management, necessary to present fairly the
financial position of Analytical Surveys, Inc., at June 30, 1995
and its results of operations for the nine and three months ended
June 30, 1995 and 1994, and its cash flows for the nine months
ended June 30, 1995 and 1994. All such adjustments are of a
normal recurring nature.
The computation of earnings per common share is based on the
weighted average number of shares outstanding plus common stock
equivalents as follows:
Nine months ended June 30, 1995 2,872,000
Nine months ended June 30, 1994 2,682,520
Three months ended June 30, 1995 2,994,000
Three months ended June 30, 1994 2,670,497
2. Notes Payable to Bank
Effective February 28, 1995, the Company renewed its line of
credit loan agreement with its existing bank for one year at the
existing maximum loan amount of $1,250,000. The interest rate was
reduced to one-half percent over the bank's published prime
lending rate.
<PAGE>
ANALYTICAL SURVEYS, INC.
Quarterly Report on Form 10-QSB
June 30, 1995
3. Stock Options
The following table summarizes stock option transactions under the Company's
four non-qualified stock option plans:
<TABLE>
<CAPTION>
Shares Average
under Option Price
option per share
_________ _________
<S> <C> <C>
Outstanding at September 30, 1994 744,525 $ 2.26
Granted 164,000 6.00
Exercised (212,275) 2.02
Canceled (2,000) 3.03
_________
Outstanding June 30, 1995 694,250 $ 3.21
=========
At June 30, 1995:
Options Exercisable 405,875
Available for Grant 44,975
=========
</TABLE>
4. Treasury Stock
In June 1995, the Company acquired 23,500 shares of its no par value common
stock at $5.3125 per share from the Company's President and Chief Executive
Officer. The purchase price was $0.0625 below the closing bid price on the
date of the purchase. The transaction was approved by the Company's Board of
Directors.
<PAGE>
ANALYTICAL SURVEYS, INC.
Quarterly Report on Form 10-QSB
June 30, 1995
Part I Item 2.
Management's Discussion and Analysis of
Financial Condition and Results of Operations
Results of Operations:
Three Months Ended June 30, 1995
Net income (all from continuing operations) for the three months
ended June 30, 1995 of $367,221 was 38% higher than the same
period of the previous year. Increased production caused sales to
increase 20% and earnings from operations to increase 30% for the
third quarter of fiscal year 1995 over the same period of the
previous year. Salaries, wages and benefits increased 19% over
last year as the result of the production volume increases.
Increased subcontractor costs reflect increased production by
subcontractors. The 39% increase in general and administrative
expenses was primarily the result of increased activity in the
selling, marketing and R & D functions. Interest expense was 46%
less than the same quarter of the previous year due to reduction
of debt, including capitalized leases, through scheduled
repayments.
The effect of common stock equivalents on the average number of
shares outstanding during the period increased due to the
increase in the average market price of the Company's common
stock over the previous year.
Three Months Ended June 30, 1994
Net income (all from continuing operations) for the three months
ended June 30, 1994 of $266,643 was 47% higher than the same
period of 1993. Increased internal production volume and
increased production by subcontractors caused sales to increase
6% and earnings from operations to increase 40% for the third
quarter of fiscal year 1994 over the previous year. Salaries
increased 3% over the previous year as the result of the
production volume increases. Increased subcontractor costs
reflect increased production by subcontractors. General and
administrative expenses decreased 16% from the same period of the
previous year because certain nonrecurring expenses related to
recruiting and outside consulting were incurred in 1993 but were
not incurred in 1994. Interest expense was 7% less than the same
quarter of the previous year due to lower utilization of the line
of credit and reduction of debt, including capitalized leases,
through scheduled repayments.
<PAGE>
ANALYTICAL SURVEYS, INC.
Quarterly Report on Form 10-QSB
June 30, 1995
Nine Months Ended June 30, 1995
Net income (all from continuing operations) for the nine months
ended June 30, 1995 increased 40% over the first nine months of
1994. Increased production caused sales to increase 22% and
earnings from operations to increase 30%. Salaries expense
increased 14% due to increased production. Subcontractor costs
increased 39% due to greater production by subcontractors. The
22% increase in general and administrative expenses was primarily
the result of increased selling, marketing and R & D activity.
Interest expense was 33% less than the same period of the
previous year due to reduction of debt, including capitalized
leases, through scheduled repayments.
Cash flow used by operations in the nine months ended June 30,
1995 was $65,185 compared to net cash provided by operations of
$413,423 in the same nine months of the previous year as
increased production led to an expected increased investment in
unbilled revenues and accounts receivable. The increased unbilled
revenue is believed to be a normal fluctuation. The Company
maintains an open line of credit to finance the investment in
unbilled revenue and accounts receivable. The increase in
accounts payable from September 30, 1994 is attributable to
normal fluctuations in progress billings from subcontractors.
Cash flow from investing activities consists primarily of
equipment acquisitions required by increased production. Cash
flow from financing activities consists of the proceeds of
borrowing on the open line of credit, the financing of equipment
using capital leases, the scheduled repayment of debt and
capitalized leases and proceeds from the exercise of stock
options by employees. As discussed in Note 4, the company
acquired 23,500 shares of its no par value common stock which is
held as treasury stock; there are no plans at present to acquire
additional treasury stock.
The Company's backlog of contracted work increased to $11,940,000
at June 30, 1995 up 20% from 1994. In April 1995, the Company
announced that backlog exceeded $14,000,000 for the first time in
the Company's history.
In January, 1995 the Company announced that it was a member of
the team selected to negotiate with the State of Connecticut for
a potentially significant contract for GIS services. On April 25,
1995, the Company announced that the team had received contracts
from the state of Connecticut and entities within the state for a
variety of GIS-related services. These contracts, which represent
ASI's initial phase of the negotiations in the state were valued
at $693,000. Since the January announcement, the state has
<PAGE>
ANALYTICAL SURVEYS, INC.
Quarterly Report on Form 10-QSB
June 30, 1995
inaugurated new state officials, which has extended the
negotiation process and reduced state budgets. The resulting
master contract commits direct state funding but also allows
other GIS users to participate in both the cost and benefits of
the project. Several cities have already joined the project.
Nine Months Ended June 30, 1994
Net income for the nine months ended June 30, 1994 increased 45%
over the first three quarters of 1993. Increased production
caused sales to increase 12% and earnings from operations to
increase 37%. Salaries expense increased 7% due in part to annual
wage increases and increased production. Subcontractor costs
increased 35% due to greater production by subcontractors.
General and administrative expenses were 5% lower for the nine
months due to the reduced expense for the three months ended June
30, 1994 as described above.
The Company's backlog of contracted work was $9,952,000 at
June 30, 1994.
Cash generated by operations increased from a net use of $77,000
in the first nine months of 1993 to net cash provided of $413,423
in 1994. Cash generated by operations was reduced in 1993 by a
53% increase in the combination of net unbilled revenue plus
accounts receivable less billings in excess of costs. The rate of
increased investment in these contract related accounts slowed to
22% in 1994. Cash flow from investing activities consists of
routine property and equipment acquisitions. Cash flow from
financing activities consists of the proceeds of the financing of
equipment using capital leases, the scheduled repayment of debt
and capitalized leases and the proceeds from the exercise of
stock options by employees.
Liquidity and Capital Resources:
Management expects to meet both short-term and long-term
liquidity requirements through cash flows generated by operations
supplemented from time to time by short term borrowings on a bank
line of credit. Routine capital expenditures will usually be
financed with term debt and/or capital leases. The Company is
dependent, however, upon its ability to successfully deliver
acceptable products in order to maintain adequate operating cash
flows.
The Company has not committed to significant capital expenditures
at June 30, 1995.
<PAGE>
ANALYTICAL SURVEYS, INC.
Quarterly Report on Form 10-QSB
June 30, 1995
Part II Other Information
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits
27 Financial Data Schedule
(b) Reports on Form 8-K
None.
<PAGE>
ANALYTICAL SURVEYS, INC.
Quarterly Report on Form 10-QSB
June 30, 1995
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.
Analytical Surveys, Inc.
________________________
(Registrant)
Date July 28, 1995 /s/ Sidney V. Corder
________________________
Sidney V, Corder, President
and Chief Executive Officer
Date July 28, 1995 /s/ Scott C. Benger
________________________
Scott C. Benger, Secretary/Treasurer
(principal financial officer and
principal accounting officer)
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
This schedule contains summary financial information extracted
from SEC Form 10-QSB and is qualified in its entirety by reference
to such financial statements.
</LEGEND>
<CIK> 0000753048
<NAME> ANALYTICAL SURVEYS INC
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> SEP-30-1995
<PERIOD-END> JUN-30-1995
<CASH> 451681
<SECURITIES> 0
<RECEIVABLES> 7222431
<ALLOWANCES> 20000
<INVENTORY> 0
<CURRENT-ASSETS> 7845355
<PP&E> 7093335
<DEPRECIATION> 5549535
<TOTAL-ASSETS> 9403309
<CURRENT-LIABILITIES> 2858971
<BONDS> 0
<COMMON> 3018049
0
0
<OTHER-SE> 2888649
<TOTAL-LIABILITY-AND-EQUITY> 9403309
<SALES> 0
<TOTAL-REVENUES> 9768929
<CGS> 0
<TOTAL-COSTS> 8452497
<OTHER-EXPENSES> (1662)
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 98697
<INCOME-PRETAX> 1219397
<INCOME-TAX> 465000
<INCOME-CONTINUING> 754397
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 754397
<EPS-PRIMARY> .26
<EPS-DILUTED> .26
</TABLE>
