<PAGE>
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
Quarterly Report pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
FOR THE QUARTER ENDED SEPTEMBER 30, 1995
Commission File No. 0-15474
AMERALIA, INC.
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(Exact name of Company as specified in its charter)
1155 KELLY JOHNSON BLVD., COLORADO SPRINGS, CO 80902
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(Address of Principal Executive Offices)
(719) 260 6011
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(Company's telephone number, including area code)
A Utah Corporation
I.R.S. Employer Identification No. 87-0403973
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.
The number of shares outstanding of the Company's $.01 par value common stock as
of October 26, 1995 was 2,609,756. Shares of preference stock, $.05 par value,
outstanding as of October 26, 1995: 720,496.
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AMERALIA, INC.
INDEX TO FORM 10-Q
Page
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PART I: FINANCIAL INFORMATION
Item 1: Financial Statements
Consolidated Balance Sheets - September 30,
1995 and June 30, 1995 1-2
Consolidated Statements of Operations for
the Quarters ending September 30, 1995 & 1994 3
Consolidated Statements of Cash Flows for
the Quarters ending September 30, 1995 & 1994 4
Notes to Consolidated Financial Statements 5
Item 2: Management's Discussion and Analysis of
Financial Condition and Results
of Operations. 6
PART II: OTHER INFORMATION
Item 1: Legal Proceedings 7
Item 2: Changes in Securities 7
SIGNATURE 7
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AMERALIA INC
CONSOLIDATED BALANCE SHEETS
Amounts in Thousands of Dollars ($)
<TABLE>
<CAPTION>
Sept 30 June 30
1995 1995
(Unaudited) (Audited)
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<S> <C> <C>
ASSETS
- ------
Current Assets:
Cash at bank $ - $ 5
Accounts receivable - 5
Prepayments 75 -
Related party receivables 8 28
Net realizable value of
notes receivable - current 187 300
Note receivable, net 139 139
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Total Current Assets: $ 409 $ 477
Non Current Assets:
Lease exploration & development costs 2,098 2,060
Investment in Rural Investment Trust 440 413
Property & equipment 32 35
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Total Assets: $ 2,979 $ 2,985
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</TABLE>
(Continued over page)
1
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AMERALIA INC
CONSOLIDATED BALANCE SHEETS
Amounts in Thousands of Dollars ($)
<TABLE>
<CAPTION>
Sept 30 June 30
1995 1995
(Unaudited) (Audited)
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<S> <C> <C>
LIABILITIES & SHAREHOLDERS' FUNDS
- ---------------------------------
Current liabilities:
Accounts payable $ 295 $ 261
Due to related parties 89 116
Notes payable - current portion 837 821
Interest payable 351 341
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Total Current Liabilities 1,572 1,539
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Other liabilities
Notes payable - long term 12 14
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Total other liabilities: 12 14
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Total liabilities 1,584 1,553
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Commitments and contingent liabilities - -
SHAREHOLDERS' EQUITY
- --------------------
Preferred stock, US$0.05 par value;
1,000,000 authorized; 718,416 issued
at Sept 30 and June 30, 1995: 36 36
Common stock, US$.01 par value;
100,000,000 shares authorised;
Issued @ Sept 30 and
Jun 30, 1995: 2,609,756: 26 26
Additional paid in capital 7,944 7,944
Accumulated deficit (6,734) (6,697)
Foreign currency translation adjustment 123 123
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Total Shareholders' Funds: $ 1,395 $ 1,432
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Total Liabilities & Shareholders' Equity: $ 2,979 $ 2,985
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</TABLE>
2
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AMERALIA INC
CONSOLIDATED STATEMENTS OF OPERATIONS
Amounts in Thousands of Dollars ($)
(Unaudited)
<TABLE>
<CAPTION>
Qtr Qtr
ending ending
Sept 30 Sept 30
1995 1994
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<S> <C> <C>
REVENUES
Interest $ - $ 11
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Total Revenues from Operations: - 11
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EXPENSES
General & administrative 80 122
Depreciation & amortisation 3 3
Interest paid 33 17
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Total Expenses: 116 142
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LOSS FROM OPERATIONS (116) (131)
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OTHER INCOME/(EXPENSES)
Foreign Currency gain/(loss) 79 (1)
Loss on disposal of asset - (1)
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NET INCOME /(LOSS) $ (37) $ (133)
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Net loss per share $ (.014) $ (.056)
Weighted average
number of shares ('000) 2,610 2,378
</TABLE>
3
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AMERALIA INC
CONSOLIDATED STATEMENT OF CASH FLOWS
Amounts in Thousands of Dollars ($)
(Unaudited)
<TABLE>
<CAPTION>
Qtr Qtr
ending ending
Sept 30 Sept 30
1995 1994
----------------
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES
Net income ($37) ($133)
Adjustments to reconcile net income to
net cash provided by operating activities:
Depreciation 3 3
Exchange (gain) loss (79) 1
(Increase) decrease in:
Accounts receivable 5 5
Notes receivable - (5)
Interest receivable - (6)
Related party receivables 20 (20)
Prepayments (75) -
Increase (decrease) in:
Accounts payable 34 53
Notes payable - short-term (15) 106
Due to related parties (27) (23)
Interest payable 31 16
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Net cash used in operating activities (140) (3)
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CASH FLOWS FROM INVESTING ACTIVITIES
Investment in Rock School Lease development (38) (86)
Cash received from notes receivable 113 -
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Cash flows from investing activities 75 (86)
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CASH FLOWS FROM FINANCING ACTIVITIES
Cash received from loan proceeds 62 -
Cash payments on loans (2) -
Receipt of subscriptions receivable - 78
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Cash flows from financing activities 60 78
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NET INCREASE (DECREASE) IN CASH (5) (11)
Cash at beginning of period 5 23
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Cash at end of period $ - $ 12
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</TABLE>
4
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AMERALIA, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Amounts in US Dollars, $)
Note 1. - Basis of Presentation.
The accompanying unaudited consolidated financial statements have been
prepared in accordance with Rule 10-01 of Regulation S-X and do not include all
of the information and footnotes required by generally accepted accounting
principles for complete financial statements. In the opinion of management, all
adjustments (consisting of normal recurring adjustments) considered necessary
for a fair presentation have been included. Operating results for the three
month period ended September 30, 1995, are not necessarily indicative of the
results that may be expected for the fiscal year ended June 30, 1996. These
consolidated statements should be read in conjunction with the consolidated
financial statements and notes thereto included in the Company's annual report
on Form 10-K for the fiscal year ended June 30, 1995.
5
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AMERALIA, INC.
ITEM 2: MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS.
(Amounts in US Dollars, $)
LIQUIDITY AND CAPITAL RESOURCES
During the quarter the Company received $113,000 from the repayment of one of
its notes receivable, $62,000 as proceeds from the issuance of short term notes
payable and a further $34,000 being the net increase in accounts payable. Funds
were applied, principally, to the continuing development of the Company's
investment in the Rock School Lease($113,000), to repay notes ($15,000) and to
funding the Company's operating loss for the quarter.
Throughout the Company's development, funding requirements have been met through
the Company's capacity to raise funds from additional equity and the issuance of
short term notes payable. The Company has been successful since the end of the
quarter in attracting further equity investment in the amount of $2.08 million
as discussed more fully in the Company's Annual Report on Form 10K for the
fiscal year ended June 30, 1995.
The Company is also engaged in discussions with the THG Partnership, a related
party as discussed more fully in the Company's Annual Report on Form 10K, with a
view to settling the debt and interest accrued, due to NZI Securities Australia
Ltd., for consideration which may comprise in part a stock issuance. The total
debt and interest was approximately $771,000 at September 30, 1995.
RESULTS OF OPERATIONS
The Company's loss from operations for the quarter was $37,000 compared with
$133,000 for the same quarter for the previous year. The biggest influence on
the difference was a foreign currency gain of $79,000 compared with a $1,000
loss in the previous quarter. The foreign currency gain was due to the
strengthening Australian dollar during the quarter. Otherwise the loss before
the foreign currency changes was $116,000 compared with $131,000 in the previous
period.
6
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IMPACT OF INFLATION
The Company believes that its activities are not materially affected by
inflation.
EXCHANGE RATE
At September 30, 1995, US$ = A$1.325
PART II: OTHER INFORMATION
Item 1: Legal Proceedings
None.
Item 2: Changes in Securities
None.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
AMERALIA, INC.
By:/s/ Robert van Mourik
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Robert van Mourik
Executive Vice President,
Chief Financial Officer
Signing on behalf of the Registrant as principal
financial and accounting officer.
Date: 14 November 1995
7
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
CONSOLIDATED BALANCE SHEETS AND CONSOLIDATED STATEMENTS OF OPERATIONS
FOUND ON PAGES 3 AND 4 OF THE COMPANY'S FORM 10-Q FOR THE YEAR-TO-DATE,
AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> JUN-30-1995
<PERIOD-END> SEP-30-1995
<CASH> 0
<SECURITIES> 0
<RECEIVABLES> 439
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 409
<PP&E> 2570
<DEPRECIATION> 0
<TOTAL-ASSETS> 2979
<CURRENT-LIABILITIES> 1572
<BONDS> 0
<COMMON> 26
0
36
<OTHER-SE> 1333
<TOTAL-LIABILITY-AND-EQUITY> 2979
<SALES> 0
<TOTAL-REVENUES> 0
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 116
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 33
<INCOME-PRETAX> (37)
<INCOME-TAX> 0
<INCOME-CONTINUING> (37)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (37)
<EPS-PRIMARY> (.01)
<EPS-DILUTED> (.01)
</TABLE>
