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, 1996
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 March 31, 1996
<PAGE>
<TABLE>
PART 1 - FINANCIAL INFORMATION
BALANCE SHEETS (UNAUDITED)
VINEYARD OIL & GAS COMPANY
<CAPTION>
March 31, December 31,
1996 1995
<S> <C> <C>
ASSETS
Current Assets
Cash $ 544,110 $ 521,160
Accounts receivable 2,656,501 1,659,385
Inventories 245,427 222,408
Prepaid Expenses 25,040 33,506
__________ __________
Total Current Assets 3,471,078 2,436,459
Property, Plant and Equipment 8,614,016 8,559,725
__________ __________
Accumulated depreciation (7,935,770) (7,914,048)
678,246 645,677
Deferred Costs and Other Assets
Cash restricted for plugging 395,729 342,285
Other noncurrent assets 21,508 4,392
__________ __________
417,237 346,677
__________ __________
TOTAL ASSETS (NOTE) $ 4,566,561 $ 3,428,813
__________ __________
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
Accounts Payable $ 2,676,067 $ 1,587,949
Other accrued liabilities 25,739 118,040
Current portion, long term debt 81,814 79,867
__________ __________
Total Current Liabilities 2,783,620 1,785,856
Long Term Debt - less current portion 33,866 55,172
Deferred revenue 369,869 365,129
Shareholder's Equity Common Stock, authorized
15,000,000 shares without par value, issued
5,125,562.5 shares at March 31, 1996,
at stated value of $.05 256,278 256,278
Additional paid-in capital 4,935,430 4,935,430
__________ __________
5,191,708 5,191,708
Retained earnings (deficit) (3,587,582) (3,744,132)
__________ __________
1,604,126 1,447,576
Less: cost of 67,944 shares held in treasury ( 224,920) ( 224,920)
__________ __________
1,379,206 1,222,656
__________ __________
$ 4,566,561 $ 3,428,813
__________ __________
<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, 1996 AND 1995
VINEYARD OIL & GAS COMPANY
<CAPTION>
3 Months 3 Months
Ended Ended
March 31, March 31,
1996 1995
<S> <C> <C>
Earned revenues $ 1,997,868 $ 1,381,141
Other Income 33,625 21,558
__________ __________
2,031,493 1,402,699
Cost of Earned Revenues 1,781,370 1,179,050
Selling, general and
administrative expenses 90,363 92,608
Interest 3,210 3,862
__________ __________
1,874,943 1,275,520
__________ __________
Income before income taxes 156,550 127,179
Income taxes 0 0
__________ __________
Net Income 156,550 127,179
Retained Earnings (Deficit)
Beginning of period (3,744,132) (3,820,786)
__________ __________
Retained Earnings (Deficit)
End of period (3,587,582) (3,693,607)
__________ __________
Income per common share .031 .026
__________ __________
<FN>
See Accompanying Notes to Financial Statements
</TABLE>
<TABLE>
STATEMENTS OF CASH FLOWS (UNAUDITED)
VINEYARD OIL & GAS COMPANY
FOR THE THREE MONTHS ENDED MARCH 31, 1996 AND 1995
<CAPTION>
3 Months 3 Months
Ended Ended
March 31, March 31,
1996 1995
<S> <C> <C>
Cash flow from operating
activities:
Income (loss) from operations $ 156,550 $ 127,179 $
Adjustments To Reconcile Net
Income to Net Cash Provided by
Operating Activities:
Depreciation and amortization 21,722 29,406
Provision for losses on
accounts receivable and
inventories 0 4,500
Changes in operating assets
and liabilities providing
(using cash):
Accounts receivable (997,116) 651,761
Inventories (23,019) ( 9,509)
Prepaid expenses 8,466 ( 1,936)
Other assets (17,116) 0
Accounts payable 1,088,118 (855,138)
Other current liabilities (48,659) (30,326)
Deferred revenue 4,740 0
__________ __________
Net cash provided by (used in)
operating activities 193,686 (84,063)
__________ __________
Cash flow from investing
activities:Capital expenditures ( 54,291) 0
__________ __________
Net cash used in investing
activities ( 54,291) 0
__________ __________
Cash flow from financing
activities:Principal payments
on borrowings ( 19,359) ( 16,128)
__________ __________
Net cash (used in) financing
activities ( 19,359) ( 16,128)
__________ __________
Increase (Decrease) in cash 120,036 (100,191)
Cash at beginning of period 819,803 884,936
__________ __________
Cash at end of period $ 939,839 $ 784,745
__________ __________
<FN>
See notes to condensed financial statements.
</TABLE>
VINEYARD OIL & GAS COMPANY
NOTES TO CONDENSED FINANCIAL STATEMENTS
MARCH 31, 1996
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, 1996, 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 (5,125,562.50
in 1996 and 4,840,563 in 1995).
3. No federal income tax was due or paid during the periods ending September
30, 1996, and 1995, due to available operating loss carry forwards.
4. Long-term debt
Long-term debt is summarized as follows:
<TABLE>
<CAPTION>
March 31, 1996 December 31, 1995
<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. $115,680 $135,039
__________ __________
115,680 135,039
Current portion long-term debt ( 81,814) ( 79,867)
__________ __________
33,866 55,172
__________ __________
</TABLE>
<PAGE>
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
IN THE QUARTER ENDED MARCH 31, 1996
Material Changes in Financial Conditions
Vineyard Oil & Gas Company's cash position increased $120,036 during the
first quarter of 1996. Accounts receivable and accounts payable balances
increased $997,116 and $1,088,118 respectively over this three month period.
The main reason for the increase in the balances was the dramatic increase in
the cost of gas in this period and the resultant price of gas billed to
customers. Inventories, prepaid and accrued expenses did not change
materially from the previous period. Net current assets increased $36,855
over the balance at December 31, 1995. Fixed assets increased by $54,291,
the cost of equipment purchased, depreciation and amortization accounted for
the increase in accumulated depreciation.
Long term debt decreased by $19,359 paid against principle during the three
month period. No additional long-term debt was incurred during this period.
Deferred revenue increased $4,740 in this period, such increase resulting
from earnings on funds held for future plugging costs.
Shareholders' equity increased $156,550, the amount of net income for the
three month period ended March 31, 1996.
Material Changes and Results of Operations
Earned revenues increased $616,727, or 45%, over the same three month
period in 1995. This increase was caused almost entirely by dramatic increases
in gas prices due to gas shortages during this period. Other income increased
$12,067, due mainly to interest received on an outstanding account receivable.
Cost of earned revenues increased $602,320, or 51%, over this period, reflecting
the increased gas costs. Revenues and costs for well maintenance and equipment
rental remained fairly consistent with the prior year. Selling, general and
administrative expenses decreased slightly by $2,245 from 1995 and interest
expense decreased because of reduced long-term debt. Net income
increased $29,371 over the same three month period in 1995. The large increases
in revenue were generally offset by the large increases in the cost of earned
revenues but increased gas volumes sold in 1996 contributed to the overall
increase.
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> 3-MOS
<EXCHANGE-RATE> 1
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> MAR-31-1996
<CASH> 544,110
<SECURITIES> 0
<RECEIVABLES> 2,734,383
<ALLOWANCES> 77,882
<INVENTORY> 245,427
<CURRENT-ASSETS> 3,471,078
<PP&E> 8,614,016
<DEPRECIATION> 7,935,770
<TOTAL-ASSETS> 4,566,561
<CURRENT-LIABILITIES> 2,783,620
<BONDS> 33,866
<COMMON> 256,278
0
0
<OTHER-SE> 1,122,928
<TOTAL-LIABILITY-AND-EQUITY> 4,566,561
<SALES> 1,997,868
<TOTAL-REVENUES> 2,031,493
<CGS> 1,781,370
<TOTAL-COSTS> 1,781,370
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 3,210
<INCOME-PRETAX> 156,550
<INCOME-TAX> 0
<INCOME-CONTINUING> 156,550
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 156,550
<EPS-PRIMARY> .03
<EPS-DILUTED> .03
</TABLE>
