VINEYARD OIL & GAS COMPANY
10299 West Main Road
North East, PA 16428
Securities and Exchange Commission
Washington, D.C. 20549
Gentlemen:
Pursuant to the requirements of the Securities Exchange Act of 1934, we are
transmitting herewith the attached Form 10-QSB.
Sincerely,
Vineyard Oil & Gas Company
James J. Concilla
President
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-QSB
Quarterly Report Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
For the quarterly period ended March 31, 1995
Commission File Number 0-13871
Pennsylvania 25-1349204
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
10299 West Main Road, North East, Pennsylvania 16428-0391
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (814) 725-8742
Indicate by check mark whether the registrant (1) has filed all
reports required to be filed by Section 13 or 15 (d) of the Securities
Exchange Act of 1934 during the preceding 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.
YES [ X ] NO [ ]
Indicate the number of shares outstanding of each of the issuer's
classes of common stock, as of the latest practical date:
Common Stock, No Par Value - 4,840,562.50 shares as of March 31, 1995
<PAGE>
<TABLE>
PART 1 - FINANCIAL INFORMATION
BALANCE SHEETS (UNAUDITED)
VINEYARD OIL & GAS COMPANY
<CAPTION>
March 31,1995 December 31,1994
_____________ ________________
<S> <C> <C>
ASSETS
Current Assets
Cash $ 416,066 $ 522,396
Accounts receivable 614,437 1,269,198
Inventories 227,050 219,041
Prepaid Expenses 43,853 41,917
_____________ _____________
Total Current Assets 1,301,406 2,052,552
Property, Plant and Equipment 9,128,671 9,128,671
less accumulated depreciation (8,472,361) ( 8,442,955)
_____________ _____________
656,310 685,716
Deferred Costs and Other Assets
Cash restricted for well plugging 368,679 362,540
_____________ _____________
TOTAL ASSETS (NOTE ) 2,326,395 3,100,808
_____________ _____________
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
Accounts Payable 462,616 1,317,754
Other accrued liabilities 42,859 73,185
Current portion of long term debt 80,353 83,037
_____________ _____________
Total Current Liabilities 585,828 1,473,976
Long Term Debt-less current portion 115,253 128,697
Deferred revenue 354,270 354,270
Shareholder's Equity
Common Stock, authorized 15,000,000
shares without par value, issued
4,840,562.5 shares at December 31,
1994, at stated value of $.05 321,572 321,572
Additional paid-in capital 4,867,999 4,867,999
_____________ _____________
5,189,571 5,189,571
Retained earnings (deficit) (3,693,607) (3,820,786)
_____________ _____________
1,495,964 1,368,785
Less: cost of 67,944 shares held
in treasury ( 224,920) ( 224,920)
_____________ _____________
1,271,044 1,143,865
_____________ _____________
$ 2,326,395 3,100,808
_____________ _____________
<FN>
See notes to condensed financial statements.
</TABLE>
<PAGE>
<TABLE>
PART I. - FINANCIAL INFORMATION
STATEMENTS OF INCOME AND RETAINED EARNINGS (UNAUDITED)
FOR THE THREE MONTHS
ENDED MARCH 31, 1995 AND 1994
VINEYARD OIL & GAS COMPANY
<CAPTION>
Three months ended Three months ended
March 31,1995 March 31,1994
__________________ __________________
<S> <C> <C>
Earned revenues $ 1,381,141 $ 1,506,348
Other Income 21,558 9,100
_____________ _____________
1,402,699 1,515,448
Cost of Earned Revenues 1,179,050 1,392,851
Selling, general and administrative
expenses 92,608 99,713
Interest 3,862 7,603
_____________ _____________
1,275,520 1,500,167
_____________ _____________
Income before income taxes 127,179 15,281
Income taxes 0 0
_____________ _____________
Net Income 127,179 15,281
Retained Earnings (Deficit)
Beginning of period (3,820,786) (3,869,570)
_____________ _____________
Retained Earnings (Deficit)
End of period (3,693,607) (3,854,289)
_____________ _____________
Income per common share .026 .002
_____________ _____________
<FN>
See Accompanying Notes to Financial Statements
</TABLE>
<PAGE>
<TABLE>
STATEMENTS OF CASH FLOWS (UNAUDITED)
VINEYARD OIL & GAS COMPANY
FOR THE THREE MONTHS ENDED MARCH 31, 1995 AND 1994
<CAPTION>
1995 1994
<S> <C> <C>
Cash flow from operating activities:
Income (loss) from operations $ 127,179 $ 15,281
Adjustments To Reconcile Net
Income to Net Cash Provided by
Operating Activities:
Depreciation and amortization 29,406 35,801
Provision for losses on accounts
receivable and inventories 4,500 0
Changes in operating assets and
liabilities providing (using cash):
Accounts receivable 651,761 ( 23,214)
Inventories ( 9,509) ( 4,247)
Prepaid expenses ( 1,936) ( 28,925)
Accounts payable (855,138) ( 35,290)
Other current liabilities ( 30,326) ( 45,608)
Deferred revenue 0 10,080
___________ ___________
Net cash provided by (used in)
operating activities ( 84,063) ( 76,122)
___________ ___________
Cash flow from investing activities:
Capital expenditures 0 0
Net cash used in investing activities 0 0
Cash flow from financing activities:
Principal payments on borrowings ( 16,128) ( 19,644)
___________ ___________
Net cash (used in) financing activities ( 16,128) ( 19,644)
___________ ___________
(100,191) ( 95,766)
Cash at beginning of period 884,936 747,069
___________ ___________
Cash at end of period 784,745 651,303
___________ ___________
<FN>
See notes to condensed financial statements.
</TABLE>
<PAGE>
<TABLE>
VINEYARD OIL & GAS COMPANY
NOTES TO CONDENSED FINANCIAL STATEMENTS
MARCH 31, 1995
1. In the opinion of the Company, the accompanying unaudited condensed
consolidated financial statements contain all adjustments (consisting
of only normal recurring accruals) necessary to present fairly the
results for the three months ended March 31, 1995, and are not necessarily
indicative of the results to be expected for the full year.
2. Primary earnings per share are determined by dividing net income by
the weighted average number of common equivalent shares outstanding
(4,840,563 in 1995 and 1994).
3. No federal income tax was due or paid during the periods ending
March 31, 1995, and 1994, due to available operating loss carry forwards.
4. Long-term debt
Long-term debt is summarized as follows:
<CAPTION>
March 31,1995 December 31,1994
_____________ ________________
<S> <C> <C>
Mortgage payable individual, secured by
all assets of the Company, payable in
monthly payments of $7,523, including
interest at 10.5%, through July, 1997. $189,691 $201,265
Obligations under capital lease 5,915 10,469
___________ ____________
195,606 211,734
Current portion of long-term debt ( 80,353) ( 83,037)
___________ ____________
115,253 128,697
___________ ____________
</TABLE>
<PAGE>
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
IN THE QUARTER ENDED MARCH 31, 1995
Material Changes in Financial Conditions
Vineyard Oil & Gas Company's cash position decreased $100,191 since
December 31, 1994. A net decrease in accrued liabilities was the main
reason for the decrease. Accounts receivable decreased $654,761 and
accounts payable decreased $855,138 during this period. This is the result
of purchases and sales of large quantities of gas during the winter months,
decreasing in quantity by March 31, 1995. Inventories and prepaid expenses
remained substantially the same as at December 31, 1994. Net current
assets increased $137,002 or 24% over December 31, 1994. There were no
purchases of fixed assets in the quarter. The accumulated depreciation
amount changed by the amount of depreciation and amortization, $29,406,
during the period.
Long term debt decreased by amounts paid against principal during
this quarter. No new long term debt was incurred. Deferred revenue
remained unchanged as there were no funds withheld from limited partnerships
for future plugging costs.
Shareholders' equity increased $127,179 for the quarter ended
March 31, 1995, this amount being the net income for the period.
Material Changes and Results of Operations
Earned revenues decreased $125,207 or 8% over the same period in 1994.
The principal reason for the decrease was the decrease in the selling price
of natural gas. In other areas, a decrease of $27,702 in well maintenance
income was offset by an increase in royalties of Company owned wells of
$89,051. Other income increase $12,458 over the same period in 1994. The
principal reason was an increase in interest rates on Company investments.
Cost of earned revenues decreased $213,801 or 15% from the same period in
1994. The decreased gas prices reduced the amounts paid for gas purchased
for resale. Selling, general and administrative expenses were reduced
slightly, $7,105, from the same period in 1994. Interest expense decreased
in 1995 as loan principal decreased. Net income for the quarter ended
March 31, 1995, was $127,179, an increase of $111,898 over the same period
in 1994. The principal reasons were the increased profit margins in gas
marketing and the increased profit from royalties on Company owned wells.
The increased gross margin in gas marketing resulted from a mild winter
which drove gas prices down drastically, making purchases of gas very
favorable as compared to the contracted selling prices to customers, the
Company does not expect this to be a normal recurrance.
<PAGE>
PART II. OTHER INFORMATION
Item 1. LEGAL PROCEEDINGS
___________________________
Not Applicable
Item 2. CHANGES IN SECURITIES
_______________________________
Not Applicable
Item 3. DEFAULTS UPON SENIOR SECURTIES
________________________________________
Not Applicable
Item 4. SUBMISSION OF MATTERS TO A VOTE OF SECURUTY HOLDERS
_____________________________________________________________
Not Applicable
Item 5. OTHER INFORMATION
___________________________
Not Applicable
Item 6. EXHIBITS AND REPORTS ON FORM 8-K
__________________________________________
(a) Exhibits
________
None
(b) Reports on Form 8-K
___________________
None.
