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, 1998
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, 1998
<PAGE>
<TABLE>
PART 1 - FINANCIAL INFORMATION
BALANCE SHEETS (UNAUDITED)
VINEYARD OIL & GAS COMPANY
<CAPTION>
March 31, December 31,
1998 1997
<S> <C> <C>
ASSETS
Current Assets
Cash $ 1,150,724 $ 680,464
Accounts receivable 2,005,758 2,426,739
Inventories 175,203 174,659
Prepaid Expenses 44,912 42,986
__________ __________
Total Current Assets 3,376,597 3,324,848
Property, Plant and Equipment 8,587,477 8,584,977
Accumulated depreciation (8,094,257) (8,076,530)
__________ __________
493,220 508,447
Deferred Costs and Other Assets
Cash restricted for plugging 341,566 382,057
Other noncurrent assets 242,616 234,959
__________ __________
584,182 617,016
__________ __________
TOTAL ASSETS (NOTE) $ 4,453,999 $ 4,450,311
__________ __________
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
Accounts Payable $ 2,536,051 $ 2,605,660
Other accrued liabilities 47,550 27,387
Current portion, long term debt 0 0
__________ __________
Total Current Liabilities 2,583,601 2,633,047
Long Term Debt - less current portion 0 0
Deferred revenue 397,641 394,572
Shareholder's Equity Common Stock, authorized
15,000,000 shares without par value, issued
5,125,562.5 shares at March 31, 1998,
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) (3,494,031) (3,544,096)
__________ __________
1,697,677 1,647,612
Less: cost of 67,944 shares held in treasury ( 224,920) 224,920
__________ __________
1,472,757 1,422,692
__________ __________
$ 4,453,999 $ 4,450,311
__________ __________
<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, 1998 AND 1997
VINEYARD OIL & GAS COMPANY
<CAPTION>
3 Months 3 Months
Ended Ended
March 31, March 31,
1998 1997
<S> <C> <C>
Earned revenues $ 2,870,073 $ 2,872,400
Other Income 20,399 25,690
__________ __________
2,890,472 2,898,090
Cost of Earned Revenues 2,733,010 2,718,384
Selling, general and
administrative expenses 107,398 95,890
Interest 0 1,489
__________ __________
2,840,408 2,815,763
__________ __________
Income before income taxes 50,064 82,327
Income taxes 0 0
__________ __________
Net Income 50,064 82,327
Retained Earnings (Deficit)
Beginning of period (3,544,095) (3,737,032)
__________ __________
Retained Earnings (Deficit)
End of period (3,494,031) (3,654,705)
__________ __________
Income per common share .010 .016
__________ __________
<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, 1998 AND 1997
<CAPTION>
3 Months 3 Months
Ended Ended
March 31, March 31,
1998 1997
<S> <C> <C>
Cash flow from operating
activities:
Income (loss) from operations $ 50,064 $ 82,327
Adjustments To Reconcile Net
Income to Net Cash Provided by
Operating Activities:
Depreciation and amortization 17,727 22,183
Provision for losses on
accounts receivable and
inventories 6,000 6,000
Changes in operating assets
and liabilities providing
(using cash):
Accounts receivable 414,981 748,637
Inventories (544) 11,911
Prepaid expenses (1,926) (14,638)
Other assets (7,657) (19,817)
Accounts payable (69,609) (728,860)
Other current liabilities 20,164 (33,869)
Deferred revenue 3,069 2,062
__________ __________
Net cash provided by (used in)
operating activities 432,269 75,936
__________ __________
Cash flow from investing
activities:Capital expenditures (2,500) 0
__________ __________
Net cash used in investing
activities (2,500) 0
__________ __________
Cash flow from financing
activities:Principal payments
on borrowings 0 ( 14,266)
__________ __________
Net cash (used in) financing
activities 0 ( 14,266)
__________ __________
Increase (Decrease) in cash 429,769 61,722
Cash at beginning of period 1,062,521 606,923
__________ __________
Cash at end of period $1,492,290 $ 668,593
__________ __________
<FN>
See notes to condensed financial statements.
</TABLE>
VINEYARD OIL & GAS COMPANY
NOTES TO CONDENSED FINANCIAL STATEMENTS
MARCH 31, 1998
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, 1998, 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 1998 and 1997).
3. No federal income tax was due or paid during the periods ending March 31
1998, and 1997, due to available operating loss carry forwards.
4. Cash is classified as follows for financial statement reporting purposes:
<TABLE>
<CAPTION>
March 31, 1998 March 31, 1997
<S> <C> <C>
Cash in bank $1,150,724 $ 334,284
Cash restricted for well
plugging 341,566 334,309
__________ __________
1,492,290 668,593
__________ __________
</TABLE>
<PAGE>
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
IN THE QUARTER ENDED MARCH 31, 1998
Material Changes in Financial Conditions
Vineyard Oil & Gas Company's cash position increased $429,769 during the
quarter ended March 31, 1998. The principal cause was a decrease in accounts
receivable of $414,981 offset by a decrease in accounts payable of $69,609
resulting in a net increase in cash of $345,372. Inventories and prepaid
expenses changed only $544 and $1,926, respectively during the period. Other
assets increased $7,657, Vineyard's share of income from a jointly owned
company. Long lived assets increased $2,500 in the quarter, the cost of a
new well maintenance vehicle, and the allowance for depreciation increased
$17,727, the amount of depreciation and amortization charged to operations for
the period.
Accrued expenses increased $20,164 and deferred revenue increased $3,069
during this period, such increase resulting from earnings on funds held for
future plugging costs. Shareholders' equity increased $50,064, the amount of
net income for the period ended March 31, 1998.
Earned revenues decreased $2,327, or .1% over the three month period
ended March 31, 1998, over the same period in 1997. All departments remained
fairly constant. Other income decreased $5,291 from 1997, mainly in interest
and miscellaneous income. Cost of revenues increased $14,626, or .5% over
1997. This reflected normal increases in all operating departments. General
and administrative expenses increased $11,508 over the same three month period
in 1997. Areas of increase include insurances of $4,166, attorney fees of
$4,486 and other fees of $2,929. There was no interest expense in 1998 as
all interest bearing debt had been repaid in 1997. Net income decreased
$32,263 from the same three month period in 1997, the result of total revenue
decreases of $7,618 and total expense increases of $24,645.
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-31-1998
<PERIOD-END> MAR-31-1998
<CASH> 1,150,724
<SECURITIES> 0
<RECEIVABLES> 2,096,561
<ALLOWANCES> 90,803
<INVENTORY> 175,203
<CURRENT-ASSETS> 3,376,597
<PP&E> 8,587,477
<DEPRECIATION> 8,094,257
<TOTAL-ASSETS> 4,453,999
<CURRENT-LIABILITIES> 2,583,601
<BONDS> 0
<COMMON> 256,278
0
0
<OTHER-SE> 1,216,479
<TOTAL-LIABILITY-AND-EQUITY> 4,453,999
<SALES> 2,870,073
<TOTAL-REVENUES> 2,890,472
<CGS> 2,733,010
<TOTAL-COSTS> 2,733,010
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 50,064
<INCOME-TAX> 0
<INCOME-CONTINUING> 50,064
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 50,064
<EPS-PRIMARY> .01
<EPS-DILUTED> .01
</TABLE>
