<PAGE> 1
U.S. SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-QSB
OMB Approval
OMB Number: xxxx-xxxx
Expires: Approval Pending
Estimated Average Burden Hours Per Response: 1.0
(Mark One)
[xx] Quarterly report under Section 13 or 15(d) of the Securities
Exchange Act of 1934
For the quarterly period ended: March 31, 2000
[ ] Transition report under Section 13 or 15(d) of the Exchange Act
For the transition period from _________________ to ____________________
Commission file number: 0-3912
PETROL INDUSTRIES, INC.
(Exact Name of Small Business Issuer as Specified in its Charter)
NEVADA 75-1282449
(State or Other Jurisdiction of (IRS Employer Identification No.)
Incorporation or Organization)
202 N. THOMAS, SUITE 4 SHREVEPORT, LA 71107-6539
(Address of Principal Executive Offices)
(318) 424-6396
(Issuer's Telephone Number, Including Area Code)
N/A
(Former Name, Former Address and Former Fiscal Year,
if Changed Since Last Report)
Check whether the issuer: (1) filed all reports required to be filed by
Section 13 or 15(d) of the Exchange Act during the past 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 [XX] NO [ ]
APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY
PROCEEDINGS DURING THE PRECEDING FIVE YEARS
Check whether the registrant filed all documents and reports required to
be filed by Section 12, 13 or 15(d) of the Exchange Act after the distribution
of securities under a plan confirmed by a court.
YES [ ] NO [ ]
APPLICABLE ONLY TO CORPORATE ISSUERS
State the number of shares outstanding of each of the issuer's classes of
common equity, as of the latest practicable date: 1,597,196
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<TABLE>
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements
PETROL INDUSTRIES, INC. & SUBSIDIARIES
Consolidated Balance Sheets
March 31, December 31,
ASSETS 2000 1999
------ --------- ------------
(unaudited)
<S> <C> <C>
Current assets:
Cash and cash equivalents $ 82,916 34,138
Accounts receivable:
Trade 64,494 67,542
Other 9,497 9,497
---------- ---------
73,991 77,205
Inventory 44,814 40,406
Prepaid expenses 14,121 6,073
---------- ---------
Total current assets 215,842 157,822
---------- ---------
Property and equipment, at cost:
Land 7,000 7,000
Developed and undeveloped oil and gas properties-
successful efforts method 4,141,211 4,141,705
Trucks and other operating equipment 367,984 367,984
Furniture and fixtures 32,758 46,720
---------- ---------
4,548,953 4,563,409
Less accumulated depreciation, depletion and
amortization 4,491,979 4,504,275
---------- ---------
56,974 59,134
---------- ---------
Other assets 1,107 1,107
---------- ---------
$ 273,923 218,063
========== =========
LIABILITIES AND STCOKHOLDERS' DEFICIT
-------------------------------------
Current liabilities:
Accounts payable $ 41,744 44,667
Payable to interest owners 323,168 321,106
Payable to officer, net 763,202 722,194
Notes Payable 50,000 50,000
Accrued expenses 106,878 100,342
---------- ---------
Total current liabilities 1,284,992 1,238,309
---------- ---------
Stockholders' deficit:
Preferred stock-no par value. Authorized 1,000,000
shares; no shares issued or outstanding --- ---
Common stock-$.10 par value. Authorized 10,000,000
shares; issued and outstanding 1,597,196 shares
in 2000 and 1999 159,720 159,720
Accumulated deficit (1,170,789) (1,179,966)
---------- ---------
Total stockholders' deficit (1,011,069) (1,020,246)
---------- ---------
$ 273,923 218,063
========== =========
</TABLE>
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<TABLE>
PETROL INDUSTRIES, INC. & SUBSIDIARIES
Consolidated Statements of Operations
Three months ended March 31, 2000 and 1999
(unaudited)
2000 1999
---- ----
<S> <C> <C>
REVENUES:
Oil and gas sales $ 204,964 78,471
Other operating income 9,744 3,670
--------- ---------
214,708 82,141
--------- ---------
EXPENSES:
Lease operating expense 124,479 88,681
General and administrative 68,491 70,426
Depreciation, depletion and amortization 1,666 2,250
--------- ---------
194,636 161,357
--------- ---------
Operating income/(loss) 20,072 (79,216)
--------- ---------
OTHER INCOME AND (EXPENSE):
Interest income 187 270
Interest expense (11,082) (7,753)
--------- ---------
(10,895) (7,483)
--------- ---------
Net income/(loss) $ 9,177 (86,699)
========= =========
Net income/(loss) per share .01 (.05)
========= =========
Average common shares outstanding 1,597,196 1,597,196
========= =========
</TABLE>
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<TABLE>
PETROL INDUSTRIES, INC. & SUBSIDIARIES
Consolidated Statements of Cash Flows
Three months ended March 31, 2000 and 1999
(unaudited)
2000 1999
---- ----
<S> <C> <C>
Operating activities:
Net income/(loss) $ 9,177 (86,699)
Adjustments to reconcile net income/(loss) to
cash used by operating activities:
Depreciation, depletion and amortization 1,666 2,250
Losses on retirements of property and
equipment included in lease operating expenses 494 724
Changes in assets and liabilities:
Accounts receivable (10,829) (10,829)
Inventory (4,408) (4,089)
Prepaid expenses (8,048) (3,145)
Accounts payable and accrued expenses 3,613 22,653
Payable to officer, net 41,008 39,004
Payable to interest owners 2,062 1,410
--------- ---------
Net cash provided (used) by operating
activities 48,778 (58,721)
Investing activities:
Capital expenditures --- ---
--------- ---------
Net cash used by investing activities --- ---
Financing activities:
Purchase and retirment of stock --- ---
Proceeds from gross borrowings --- 20,000
--------- ---------
Net cash provided by financing activities --- 20,000
Increase (decrease) in cash and cash equivalents 48,778 (38,721)
Cash and cash equivalents at beginning of period 34,138 56,729
--------- ---------
Cash and cash equivalents at end of period $ 82,916 18,008
========= =========
</TABLE>
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<TABLE>
PETROL INDUSTRIES, INC. & SUBSIDIARIES
Consolidated Statements of Changes in Stockholders' Deficit
Three months ended March 31, 2000 and 1999
(unaudited)
2000 1999
---- ----
<S> <C> <C>
Stockholders' deficit at January 1 $(1,020,246) (835,115)
Net income/(loss) for the three-month period 9,177 (86,699)
--------- ---------
Stockholders' deficit at March 31 $(1,011,069) (921,814)
========= =========
</TABLE>
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PETROL INDUSTRIES, INC. & SUBSIDIARIES
Notes to Consolidated Financial Statements
(unaudited)
1. The accompanying unaudited consolidated financial statements have been
prepared by the Registrant in accordance with generally accepted accounting
principles, pursuant to the rules and regulations of the Securities and
Exchange Commission. Certain information and footnote disclosures normally
included in financial statements have been condensed or omitted pursuant to
such rules and regulations, although management believes that the disclosures
are adequate to make the information presented not misleading. In the opinion
of management, the accompanying financial statements contain all adjustments
necessary for a fair statement of the results for the interim periods
presented. It is suggested that these consolidated financial statements be
used in conjunction with the consolidated financial statements and the notes
thereto included in the Registrant's 1999 Annual Report on Form 10-KSB.
2. The consolidated financial statements included herein are consolidated
with the accounts of Petrolind Drilling Funds, Inc. and Realco, Inc., both
wholly owned subsidiaries of the Registrant, neither of which was active
during 2000 or 1999.
3. Net income per share of common stock is computed on the weighted average
number of shares outstanding during the three months ended March 31. The
weighted average number of shares outstanding was determined by totaling the
number of shares outstanding at the end of each month and dividing that total
by the number of months.
Total Number of
Shares Outstanding
2000 1999
---- ----
January 31 1,597,196 1,597,196
February 29 1,597,196 1,597,196
March 31 1,597,196 1,597,196
4. Estimated income taxes of $3,100 for the first quarter of 2000 have not
been recorded and net operating losses from prior years will be used to
reduce this amount to zero. Additionally, there were no significant changes
in the temporary differences that give rise to significant portions of the
deferred tax assets and deferred tax liabilities at March 31, 2000.
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Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
With an increase of approximately 12.3% in production and significantly
higher oil prices, oil and gas sales revenue increased significantly during
the first quarter of 2000, as compared to the 1999 period. The Company had a
net income of $9,177, or $.01 per share, compared to a net loss of $86,699,
or ($.05) per share, in the 1999 period.
The Company realized an operating income of $20,072 in the first quarter
of 2000, compared to an operating loss of $79,216 in the first quarter
of 1999. Oil prices averaged $25.72 per barrel during the first quarter of
2000, compared to an average of $10.51 per barrel in the 1999 period.
The Company had cash and cash equivalents at March 31, 2000, of $82,916,
compared to $34,138 at the end of the 1999 fiscal year. Management estimates
that it owes $323,168 from the settlement of the Horne Lease dispute with Oryx
to owners of other interests in the Horne Lease.
In March 2000, Joseph M. Rodano, President and Treasurer of Petrol
Industries, Inc., as well as a member of its Board of Directors, purchased a
total of 20,000 Shares Common Stock, $.10 par value per share, of Petrol
Industries, Inc. The purchase was made in an open-market transaction, and
all of the shares purchased by Mr. Rodano were purchased with his personal
funds. As of March 31, 2000, Mr. Rodano owns an aggregate of 554,325 Shares,
comprising approximately 35% of the outstanding shares.
PART II - OTHER INFORMATION
Item 1. LEGAL PROCEEDINGS.
None.
Item 2. CHANGES IN SECURITIES.
None.
Item 3. DEFAULTS UPON SENIOR SECURITIES.
None.
Item 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
None.
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SIGNATURE
---------
Pursuant to the requirements of the Securities and Exchange Act of 1934,
the Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
Dated: May 11, 2000
PETROL INDUSTRIES, INC.
Joseph M. Rodano
By:_______________________________
Joseph M. Rodano
President and Treasurer
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EXHIBIT INDEX
Exhibit
No. Description
------- -----------
27 Financial Data Schedule
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1999
<PERIOD-START> JAN-01-2000
<PERIOD-END> MAR-31-2000
<CASH> 34,138
<SECURITIES> 0
<RECEIVABLES> 73,991
<ALLOWANCES> 0
<INVENTORY> 44,814
<CURRENT-ASSETS> 215,842
<PP&E> 4,548,953
<DEPRECIATION> 4,491,979
<TOTAL-ASSETS> 273,923
<CURRENT-LIABILITIES> 1,284,992
<BONDS> 0
<COMMON> 159,720
0
0
<OTHER-SE> (1,170,789)
<TOTAL-LIABILITY-AND-EQUITY> 273,923
<SALES> 204,964
<TOTAL-REVENUES> 214,708
<CGS> 124,479
<TOTAL-COSTS> 124,479
<OTHER-EXPENSES> 70,157
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 11,082
<INCOME-PRETAX> 9,177
<INCOME-TAX> 0
<INCOME-CONTINUING> 9,177
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 9,177
<EPS-BASIC> .01
<EPS-DILUTED> .01
</TABLE>
