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 June 30, 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 - 5,125,562.50 shares as of June 30, 1995
<PAGE>
<TABLE>
PART 1 - FINANCIAL INFORMATION
BALANCE SHEETS (UNAUDITED)
VINEYARD OIL & GAS COMPANY
<CAPTION>
June 30, December 31,
1995 1994
<S> <C> <C>
ASSETS
Current Assets
Cash $ 417,765 $ 522,396
Accounts receivable 652,681 1,269,198
Inventories 220,816 219,041
Prepaid Expenses 30,611 41,917
__________ __________
Total Current Assets 1,321,873 2,052,552
Property, Plant and Equipment 9,179,510 9,128,671
Accumulated depreciation (8,506,662)( 8,442,955)
__________ __________
672,848 685,716
Deferred Costs and Other Assets
Cash restricted for plugging 375,484 362,540
__________ __________
TOTAL ASSETS (NOTE) 2,370,205 3,100,808
__________ __________
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
Accounts Payable 536,371 1,317,754
Other accrued liabilities 65,953 73,185
Current portion, long term debt 76,463 83,037
__________ __________
Total Current Liabilities 678,787 1,473,976
Long Term Debt - less current portion 97,411 128,697
Deferred revenue 354,270 354,270
Shareholder's Equity Common Stock, authorized
15,000,000 shares without par value, issued
5,125,562.5 shares as of June 30, 1995,
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) (3,724,914) (3,820,786)
__________ __________
1,464,657 1,368,785
Less: cost of 67,944 shares held in treasury ( 224,920) ( 224,920)
__________ __________
1,239,737 1,143,865
__________ __________
$ 2,370,205 $ 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 SIX MONTHS
ENDED JUNE 30, 1995 AND 1994
VINEYARD OIL & GAS COMPANY
<CAPTION>
3 Months 3 Months 6 Months 6 Months
Ended Ended Ended Ended
June 30, June 30, JUNE 30, JUNE 30,
1995 1994 1995 1994
<S> <C> <C> <C> <C>
Earned revenues $ 986,322 $ 913,493 $ 2,367,463 $ 2,419,841
Other Income 22,115 7,650 43,673 16,750
__________ __________ __________ __________
1,008,437 921,143 2,411,136 2,436,591
Cost of Earned Revenues 905,940 774,767 2,084,990 2,167,618
Selling, general and
administrative expenses 128,148 106,487 220,756 206,200
Interest 5,656 4,844 9,518 12,447
__________ __________ __________ __________
1,039,744 886,098 2,315,264 2,386,265
__________ __________ __________ __________
Income before income taxes (31,307) 35,045 95,872 50,326
Income taxes 0 0 0 0
__________ __________ __________ __________
Net Income (31,307) 35,045 95,872 50,326
Retained Earnings (Deficit)
Beginning of period (3,693,607) (3,854,291) (3,820,786) (3,869,572)
__________ __________ __________ __________
Retained Earnings (Deficit)
End of period (3,724,914) (3,819,246) (3,724,914) (3,819,246)
__________ __________ __________ __________
Income per common share (.006) .007 .020 .011
__________ __________ __________ __________
<FN>
See Accompanying Notes to Financial Statements
</TABLE>
<PAGE>
<TABLE>
STATEMENTS OF CASH FLOWS (UNAUDITED)
VINEYARD OIL & GAS COMPANY
FOR THE SIX MONTHS ENDED JUNE 31, 1995 AND 1994
<CAPTION>
3 Months 3 Months 6 Months 6 Months
Ended Ended Ended Ended
June 30, June 30, JUNE 30, JUNE 30,
1995 1994 1995 1994
<S> <C> <C> <C> <C>
Cash flow from operating
activities:
Income (loss) from operations $ (31,307)$ 35,045 $ 95,872 $ 50,326
Adjustments To Reconcile Net
Income to Net Cash Provided by
Operating Activities:
Depreciation and amortization 34,301 35,880 63,707 71,681
Provision for losses on
accounts receivable and
inventories 4,500 0 9,000 0
Changes in operating assets
and liabilities providing
(using cash):
Accounts receivable (41,244) 606,902 610,517 583,688
Inventories 4,734 ( 8,735) ( 4,775) ( 12,982)
Prepaid expenses 13,242 7,625 11,306 ( 21,300)
Accounts payable 73,755 (660,276) (781,383) (695,566)
Other current liabilities 23,094 39,076 ( 7,232) ( 6,532)
Deferred revenue 0 8,769 0 18,849
__________ __________ __________ __________
Net cash provided by (used in)
operating activities 81,075 64,286 ( 2,988) ( 11,836)
__________ __________ __________ __________
Cash flow from investing
activities:Capital expenditures ( 50,839) ( 12,000) ( 50,839) ( 12,000)
Net cash used in investing
activities ( 50,839) ( 12,000) ( 50,839) ( 12,000)
Cash flow from financing
activities:Principal payments
on borrowings ( 21,732) ( 14,687) ( 37,860) ( 34,331)
__________ __________ __________ __________
Net cash (used in) financing
activities ( 21,732) ( 14,687) ( 37,860) ( 34,331)
__________ __________ __________ __________
Increase (Decrease) in cash 8,504 37,599 ( 91,687) ( 58,167)
Cash at beginning of period 784,745 651,303 884,936 747,069
__________ __________ __________ __________
Cash at end of period 793,249 688,902 793,249 688,902
__________ __________ __________ __________
<FN>
See notes to condensed financial statements.
</TABLE>
<PAGE>
<TABLE>
VINEYARD OIL & GAS COMPANY
NOTES TO CONDENSED FINANCIAL STATEMENTS
JUNE 30, 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 June 30, 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 (5,125,562.5 in
1995 and 4,840,563 in 1994).
3. No federal income tax was due or paid during the periods ending June 30,
1995, and 1994, due to available operating loss carry forwards.
4. Long-term debt
Long-term debt is summarized as follows:
<CAPTION>
June 30, 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. $171,792 $201,265
Obligations under capital lease 2,082 10,469
__________ __________
173,874 211,734
Current portion long-term debt ( 76,463) ( 83,037)
__________ __________
97,411 128,697
__________ __________
</TABLE>
<PAGE>
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
IN THE QUARTER ENDED JUNE 30, 1995
Material Changes in Financial Conditions
Vineyard Oil & Gas Company's cash position decreased $91,687 during the six
month period ended June 30, 1995. The net decrease in accrued liabilities was
the principal reason for the decrease. Accounts receivable decreased $610,517
while accounts payable decreased $781,383 during the period, a net decrease of
$170,866. This is the result of purchases and sales of large quantities of gas
during the winter months, decreasing considerably to June 30, 1995. Changes in
accounts receivable and accounts payable for the three month period ended
June 30, 1995, were increases of $41,244 and $73,755 respectively, considerably
less than in the winter quarters. Inventories and prepaid expenses did not
change materially in the six month period ended June 30, 1995. Net current
assets increased $64,510 or 12% over the six month period ended June 30, 1995.
Fixed assets increased by $50,839, principally because of the purchase of
vehicles. Depreciation and amortization of $63,707 accounted for the increase
in accumulated depreciation.
Long term debt decreased by amounts paid against principle during this
period. No additional long term debt was incurred in the quarter. Deferred
revenue remained unchanged as there were no funds withheld from limited
partnerships for future plugging costs.
Shareholders' equity increased $95,872 in the six month period, this being
the net income for the six month period ended June 30, 1995.
Material Changes and Results of Operations
Earned revenues decreased $52,378 for the six month period and increased
$72,829 for the three month period ended June 30, 1995, as compared to the same
periods in 1994. This represented a change of 2% and 8% respectively. The
primary reasons were price changes and timing of sales. Decreases in well
maintenance and marketing income were partially offset by increases in revenue
from company owned wells and transmission income. Other income increases
$26,923 over the same period in 1994. The major factor was interest income on
company investments. Cost of earned revenues decreased $82,628 or 4% for the
six month period ended June 30, 1995, as compared to the same period in 1994.
For the three month period ended June 30, 1995, expenses increased $131,173,
or 17% over the 1994 period. Charges to closed programs accounted for
$27,483 and gas marketing expenses increased approximately $34,000. Selling,
general and administrative expenses increased $14,556 over the comparable six
month period in 1994, and $21,661 over the comparable three month period.
These were due to normal increases in costs. Interest expenses decreased
$2,929 from the six month period in 1994 due to a decrease in long term debt.
Net income for the six month period in 1995 increased $45,546 over the same
period in 1994 due to a decrease in overall expenses. Conversely, the income
for the three month period ended June 30, 1995, decreased $66,352 from the
same period in 1994 due to an increase in overall expenses over and above
the increase of $87,294 in earned revenues over this period. Decreasing gas
prices which caused decreasing profit margins would have been a major
contributor to the difference.
<PAGE>
PART II. OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
____________________________
NOT APPLICABLE
ITEM 2. CHANGES IN SECURITIES
________________________________
NOT APPLICABLE
ITEM 3. DEFAULTS UPON SENIOR SECURITIES
__________________________________________
NOT APPLICABLE
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY 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.
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1
<CURRENCY> U.S. DOLLARS
<S> <C>
<PERIOD-TYPE> 6-MOS
<EXCHANGE-RATE> 1
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> JUN-30-1995
<CASH> 417,765
<SECURITIES> 0
<RECEIVABLES> 843,495
<ALLOWANCES> 190,814
<INVENTORY> 220,816
<CURRENT-ASSETS> 1,321,873
<PP&E> 9,179,510
<DEPRECIATION> 8,506,662
<TOTAL-ASSETS> 2,370,205
<CURRENT-LIABILITIES> 678,787
<BONDS> 97,411
<COMMON> 321,572
0
0
<OTHER-SE> 918,165
<TOTAL-LIABILITY-AND-EQUITY> 2,370,205
<SALES> 2,367,463
<TOTAL-REVENUES> 2,411,136
<CGS> 2,084,990
<TOTAL-COSTS> 2,084,990
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 9,518
<INCOME-PRETAX> 95,872
<INCOME-TAX> 0
<INCOME-CONTINUING> 95,872
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 95,872
<EPS-PRIMARY> .02
<EPS-DILUTED> .02
</TABLE>
