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, 1997
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, 1997
<PAGE>
<TABLE>
PART 1 - FINANCIAL INFORMATION
BALANCE SHEETS (UNAUDITED)
VINEYARD OIL & GAS COMPANY
<CAPTION>
March 31, December 31,
1997 1996
<S> <C> <C>
ASSETS
Current Assets
Cash $ 334,284 $ 281,186
Accounts receivable 2,912,536 3,667,173
Inventories 186,775 198,686
Prepaid Expenses 36,984 22,346
__________ __________
Total Current Assets 3,470,579 4,169,391
Property, Plant and Equipment 8,577,994 8,577,994
__________ __________
Accumulated depreciation (7,997,830) (7,914,048)
580,164 602,347
Deferred Costs and Other Assets
Cash restricted for plugging 334,309 325,737
Other noncurrent assets 150,500 130,683
__________ __________
484,809 346,677
__________ __________
TOTAL ASSETS (NOTE) $ 4,535,552 $ 5,228,158
__________ __________
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
Accounts Payable $ 2,786,822 $ 3,515,682
Other accrued liabilities 18,426 52,295
Current portion, long term debt 33,866 48,132
__________ __________
Total Current Liabilities 2,839,114 3,616,109
Long Term Debt - less current portion 0 0
Deferred revenue 384,355 382,293
Shareholder's Equity Common Stock, authorized
15,000,000 shares without par value, issued
5,125,562.5 shares at March 31, 1997,
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) (3,654,705) (3,737,032)
__________ __________
1,537,003 1,454,676
Less: cost of 67,944 shares held in treasury ( 224,920) ( 224,920)
__________ __________
1,312,083 1,229,756
__________ __________
$ 4,535,552 $ 5,228,158
__________ __________
<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, 1997 AND 1996
VINEYARD OIL & GAS COMPANY
<CAPTION>
3 Months 3 Months
Ended Ended
March 31, March 31,
1997 1996
<S> <C> <C>
Earned revenues $ 2,872,400 $ 1,997,868
Other Income 25,690 33,625
__________ __________
2,898,090 2,031,493
Cost of Earned Revenues 2,718,384 1,781,370
Selling, general and
administrative expenses 95,890 90,363
Interest 1,489 3,210
__________ __________
2,815,763 1,874,943
__________ __________
Income before income taxes 82,327 156,550
Income taxes 0 0
__________ __________
Net Income 82,327 156,550
Retained Earnings (Deficit)
Beginning of period (3,737,032) (3,744,132)
__________ __________
Retained Earnings (Deficit)
End of period (3,654,705) (3,587,582)
__________ __________
Income per common share .016 .031
__________ __________
<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, 1997 AND 1996
<CAPTION>
3 Months 3 Months
Ended Ended
March 31, March 31,
1997 1996
<S> <C> <C>
Cash flow from operating
activities:
Income (loss) from operations $ 82,327 $ 156,550
Adjustments To Reconcile Net
Income to Net Cash Provided by
Operating Activities:
Depreciation and amortization 22,183 21,722
Provision for losses on
accounts receivable and
inventories 6,000 0
Changes in operating assets
and liabilities providing
(using cash):
Accounts receivable 748,637 (997,116)
Inventories 11,911 (23,019)
Prepaid expenses 14,638 8,466
Other assets (19,817) (17,166)
Accounts payable (728,860) 1,088,118
Other current liabilities (33,869) (48,659)
Deferred revenue 2,062 4,740
__________ __________
Net cash provided by (used in)
operating activities 75,936 193,686
__________ __________
Cash flow from investing
activities:Capital expenditures 0 (54,291)
__________ __________
Net cash used in investing
activities 0 (54,291)
__________ __________
Cash flow from financing
activities:Principal payments
on borrowings ( 14,266) ( 19,359)
__________ __________
Net cash (used in) financing
activities ( 14,266) ( 19,359)
__________ __________
Increase (Decrease) in cash 61,722 120,036
Cash at beginning of period 606,923 819,803
__________ __________
Cash at end of period $ 668,593 $ 939,839
__________ __________
<FN>
See notes to condensed financial statements.
</TABLE>
VINEYARD OIL & GAS COMPANY
NOTES TO CONDENSED FINANCIAL STATEMENTS
MARCH 31, 1997
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, 1997, 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 1997 and 1996).
3. No federal income tax was due or paid during the periods ending March 31
1997, and 1996, due to available operating loss carry forwards.
4. Long-term debt
Long-term debt is summarized as follows:
<TABLE>
<CAPTION>
March 31, 1997 December 31, 1996
<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. $ 33,866 $ 48,132
__________ __________
33,866 48,132
Current portion long-term debt ( 33,866) ( 48,132)
__________ __________
0 0
__________ __________
</TABLE>
<PAGE>
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
IN THE QUARTER ENDED MARCH 31, 1997
Material Changes in Financial Conditions
Vineyard Oil & Gas Company's cash position increased $61,670 during the
quarter of 1997. Accounts receivable decreased $748,637 and accounts payable
decreased $728,860, resulting in a net increase in cash of $19,777.
Inventories decreased $11,911, or 6% from December 31, 1996, due to normal
activity. Prepaid and accrued expenses did not change materially in the first
quarter. Net current assets increased $78,183 over the balance at December
31, 1996. There were no purchases of long-lived assets during the first
quarter of 1997. Depreciation and amortization accounted for the increase
and accumulated depreciation.
Long term debt decreased by $14,166 during the quarter ended March 31,
1997. No additional debt was incurred during this period. Deferred revenue
increased $2,062 during this period, such increase resulting from earnings on
funds held for future plugging costs. Shareholders' equity increased $82,327,
the amount of net income for the three month period ended March 31, 1997.
Earned revenues increased $874,532 or 44%, over the same three month
period in 1996. This increase was mainly the result of the volume of gas
sold in 1997 as compared to 1996. Other income decreased slightly, by $7,935
over the prior year. Cost of earned revenues increased proportionately by
$937,014, or 53%, over the three month period ended March 31, 1996, the
result of increased gas purchases for this period. Selling, general and
administrative expenses increased $5,527, or 6%, due to normal cost increases.
Interest expense decreased because of reduced long-term debt. Net income
decreased $74,223, or 47%, from March 31, 1996. The principle reason was
mainly the decrease in gas marketing income of $30,910. Although the volumes
of transactions increased, the margin of profit decreased.
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-31-1997
<PERIOD-END> MAR-31-1997
<CASH> 334,284
<SECURITIES> 0
<RECEIVABLES> 2,970,049
<ALLOWANCES> 57,513
<INVENTORY> 186,775
<CURRENT-ASSETS> 3,470,579
<PP&E> 8,577,994
<DEPRECIATION> 7,997,830
<TOTAL-ASSETS> 4,535,552
<CURRENT-LIABILITIES> 2,839,114
<BONDS> 0
<COMMON> 256,278
0
0
<OTHER-SE> 1,055,805
<TOTAL-LIABILITY-AND-EQUITY> 4,535,552
<SALES> 2,872,400
<TOTAL-REVENUES> 2,898,090
<CGS> 2,718,384
<TOTAL-COSTS> 2,718,384
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 1,489
<INCOME-PRETAX> 82,327
<INCOME-TAX> 0
<INCOME-CONTINUING> 82,327
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 82,327
<EPS-PRIMARY> .02
<EPS-DILUTED> .02
</TABLE>
