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 September 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 September 30, 1995
<PAGE>
<TABLE>
PART 1 - FINANCIAL INFORMATION
BALANCE SHEETS (UNAUDITED)
VINEYARD OIL & GAS COMPANY
<CAPTION>
Sept. 30, December 31,
1995 1994
<S> <C> <C>
ASSETS
Current Assets
Cash $ 239,156 $ 522,396
Accounts receivable 802,898 1,269,198
Inventories 217,447 219,041
Prepaid Expenses 20,153 41,917
__________ __________
Total Current Assets 1,279,654 2,052,552
Property, Plant and Equipment 9,184,317 9,128,671
Accumulated depreciation (8,534,136)( 8,442,955)
__________ __________
650,181 685,716
Deferred Costs and Other Assets
Cash restricted for plugging 333,436 362,540
__________ __________
TOTAL ASSETS (NOTE) 2,263,271 3,100,808
__________ __________
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
Accounts Payable 399,848 1,317,754
Other accrued liabilities 73,653 73,185
Current portion, long term debt 78,806 83,037
__________ __________
Total Current Liabilities 552,307 1,473,976
Long Term Debt - less current portion 74,560 128,697
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 September 30, 1995,
at stated value of $.05 334,472 321,572
Additional paid-in capital 4,857,949 4,867,999
__________ __________
5,192,421 5,189,571
Retained earnings (deficit) (3,685,367) (3,820,786)
__________ __________
1,507,054 1,368,785
Less: cost of 67,944 shares held in treasury ( 224,920) ( 224,920)
__________ __________
1,282,134 1,143,865
__________ __________
$ 2,263,271 $ 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 SEPTEMBER 30, 1995 AND 1994
VINEYARD OIL & GAS COMPANY
<CAPTION>
3 Months 3 Months 9 Months 9 Months
Ended Ended Ended Ended
Sept. 30, Sept. 30, Sept. 30, Sept. 30,
1995 1994 1995 1994
<S> <C> <C> <C> <C>
Earned revenues $ 1,006,994 $ 567,768 $ 3,374,457 $ 2,987,609
Other Income 8,628 9,564 52,301 26,314
__________ __________ __________ __________
1,015,622 577,332 3,426,758 3,013,923
Cost of Earned Revenues 859,400 491,305 2,944,390 2,658,923
Selling, general and
administrative expenses 110,329 103,042 331,085 309,242
Interest 6,346 6,393 15,864 18,840
__________ __________ __________ __________
976,075 600,740 3,291,339 2,987,005
__________ __________ __________ __________
Income before income taxes 39,547 (23,408) 135,419 26,918
Income taxes 0 0 0 0
__________ __________ __________ __________
Net Income 39,547 (23,408) 135,419 26,918
Retained Earnings (Deficit)
Beginning of period (3,724,914) (3,819,246) (3,820,786) (3,869,572)
__________ __________ __________ __________
Retained Earnings (Deficit)
End of period (3,685,367) (3,842,654) (3,685,367) (3,842,654)
__________ __________ __________ __________
Income per common share .008 (.006) .027 .006
__________ __________ __________ __________
<FN>
See Accompanying Notes to Financial Statements
</TABLE>
<PAGE>
<TABLE>
STATEMENTS OF CASH FLOWS (UNAUDITED)
VINEYARD OIL & GAS COMPANY
FOR THE SIX MONTHS ENDED SEPTEMBER 30, 1995 AND 1994
<CAPTION>
3 Months 3 Months 9 Months 9 Months
Ended Ended Ended Ended
Sept. 30, Sept. 30, Sept. 30, Sept. 30,
1995 1994 1995 1994
<S> <C> <C> <C> <C>
Cash flow from operating
activities:
Income (loss) from operations $ 39,547($ 23,408)$ 135,419 $ 26,918
Adjustments To Reconcile Net
Income to Net Cash Provided by
Operating Activities:
Depreciation and amortization 27,474 34,104 91,181 105,785
Provision for losses on
accounts receivable and
inventories 4,500 0 13,500 0
Changes in operating assets
and liabilities providing
(using cash):
Accounts receivable (153,217) 140,678 457,300 724,366
Inventories 1,869 ( 2,178) ( 2,906) ( 15,160)
Prepaid expenses 10,458 32,900 21,764 214
Other assets 0 0 0 11,386
Accounts payable (136,523) (155,745) (917,906) (851,311)
Other current liabilities 7,700 ( 22,934) 468 ( 29,466)
Deferred revenue 0 0 0 18,849
__________ __________ __________ __________
Net cash provided by (used in)
operating activities (198,192) 3,417 (201,180) ( 8,419)
__________ __________ __________ __________
Cash flow from investing
activities:Capital expenditures ( 4,807) ( 1,135) ( 55,646) ( 13,135)
Common Stock 2,850 0 2,850 0
__________ __________ __________ __________
Net cash used in investing
activities ( 1,957) ( 1,135) ( 52,796) ( 13,135)
Cash flow from financing
activities:Principal payments
on borrowings ( 20,508) ( 22,651) ( 58,368) ( 56,982)
__________ __________ __________ __________
Net cash (used in) financing
activities ( 20,508) ( 22,651) ( 58,368) ( 56,982)
__________ __________ __________ __________
Increase (Decrease) in cash (220,657) ( 20,369) (312,344) ( 78,536)
Cash at beginning of period 793,249 688,902 884,936 747,069
__________ __________ __________ __________
Cash at end of period 572,592 668,533 572,592 668,533
__________ __________ __________ __________
<FN>
See notes to condensed financial statements.
</TABLE>
<PAGE>
<TABLE>
VINEYARD OIL & GAS COMPANY
NOTES TO CONDENSED FINANCIAL STATEMENTS
SEPTEMBER 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 September 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 (4,984,630 in
1995 and 4,840,563 in 1994).
3. No federal income tax was due or paid during the periods ending
September 30, 1995, and 1994, due to available operating loss carry forwards.
4. The Company issued 285,000 shares of Common stock (valued at $0.01 per
share) to Company officers as compensation.
5. Long-term debt
Long-term debt is summarized as follows:
<CAPTION>
September 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. $153,366 $201,265
Obligations under capital lease 0 10,469
__________ __________
153,366 211,734
Current portion long-term debt ( 78,806) ( 83,037)
__________ __________
74,560 128,697
__________ __________
</TABLE>
<PAGE>
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
IN THE QUARTER ENDED SEPTEMBER 30, 1995
Material Changes in Financial Conditions
Vineyard Oil & Gas Company's cash position decreased $312,344 during the
nine month period ended September 30, 1995. Accounts Payable decreased
$917,906 while accounts receivable decreased $457,300, resulting in a net
decrease of $460,606 in cash. The majority of this net decrease took place in
the third quarter, amounting to $289,740, of which accounts receivable
increased $150,217 and accounts payable decreased $136,523, netting a decrease
of $286,740. These are two main reasons for large fluctuations in cash
balances during the year. At December 31, during the winter, large quantities
of gas are purchased and sold, resulting in larger balances in the accounts
receivable and accounts payable, as compared to September 30. Additionally,
the timing of collections and payments cause cash balances to vary.
Inventories did not change materially and prepaid expenses decreased as costs
were absorbed during this period. Net current assets increased $148,771, or
26%, for the nine month period and $84,261, or 13%, for the three month period
ended September 30, 1995. Fixed assets increased $55,646, mainly as a result
of vehicle purchases during the nine month period. Depreciation, and amorti-
zation of $91,181 accounted for the increase in accumulated depreciation.
Long-term debt decreased by $58,368 paid against principal during the nine
month period. No additional long-term debt was incurred during this period.
Deferred revenue remained unchanged as there were no funds withheld from limited
partnerships for future plugging costs.
Shareholders' equity increased $138,269 over the nine month period ended
September 30, 1995. Of this increase, $135,419 was the net income for the
period and $2,850 was the issuance of 285,000 shares of common stock as a stock
bonus.
Material Changes and Results of Operations
Earned revenues increased $386,848, or 13%, over the nine month period and
$439,226, or 77%, over the three month period ended September 30, 1995, as
compared to the same periods in 1994. The increases were in gas marketing of
$272,321 and $411,503, and revenues from Company owned wells of $189,249 and
$144,121 for the nine and three months respectively, offset by a decrease in
well maintenance due to partnership closings. Other income increased $25,987
over the same nine month period in 1994 due mainly to increased interest on
Company investments in 1995. Cost of earned revenues increased $285,467,
or 11%, over the nine month period and $368,095, or 75%, over the three month
period ended September 30, 1995, as compared to 1994. Of these increases, gas
purchases increased $95,585 and $332,801 respectively. Cost of closed programs
increased $78,120 and $14,294 respectively over the previous year. Selling,
general and administrative expenses remained fairly constant for the two
periods. Interest expense decreased due to the decrease in long-term debt.
Net income increased $108,501 and $62,955 for the nine and three month
comparative periods. The major reason for the increase, especially in the
third quarter, was the decreasing price of purchased gas.
<PAGE>
PART II. OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
____________________________
NOT APPLICABLE
ITEM 2. CHANGES IN SECURITIES
________________________________
The Company issued 285,000 shares of common stock. This increases the
number of shares outstanding to 5,125,562.50 shares.
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> 9-MOS
<EXCHANGE-RATE> 1
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> SEP-30-1995
<CASH> 239,156
<SECURITIES> 0
<RECEIVABLES> 992,693
<ALLOWANCES> 189,795
<INVENTORY> 217,447
<CURRENT-ASSETS> 1,279,654
<PP&E> 9,184,317
<DEPRECIATION> 8,534,136
<TOTAL-ASSETS> 2,263,271
<CURRENT-LIABILITIES> 552,307
<BONDS> 74,560
<COMMON> 334,472
0
0
<OTHER-SE> 947,662
<TOTAL-LIABILITY-AND-EQUITY> 2,263,271
<SALES> 3,374,457
<TOTAL-REVENUES> 3,426,758
<CGS> 2,944,390
<TOTAL-COSTS> 2,944,390
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 15,864
<INCOME-PRETAX> 135,419
<INCOME-TAX> 0
<INCOME-CONTINUING> 135,419
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 135,419
<EPS-PRIMARY> .03
<EPS-DILUTED> .03
</TABLE>
