SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-QSB
X Quarterly Report pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934 for the quarterly period ended June 30, 1997; or
Transition report pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934 for the transition period from ___________________
to _______________________.
Commission File Number 0-18754
BLACK WARRIOR WIRELINE CORP.
- --------------------------------------------------------------------------------
(Exact Name of Small Business Issuer as Specified in its Charter)
DELAWARE 11-2904094
- ------------------------------------ ------------------------
(State or Other Jurisdiction of (I.R.S. Employer
Incorporation or Organization) Identification No.)
3748 HIGHWAY 45 NORTH, COLUMBUS, MISSISSIPPI 39701
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(Address of Principal Executive Offices)
(Zip Code)
(601) 329-1047
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(Issuer's Telephone Number, Including Area Code)
Check whether the Issuer (1) has filed all Reports required to be filed
by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the
proceeding 12 months (or for such shorter period that the Issuer was required to
file such Reports), and (2) has been subject to such filing requirements for the
past 90 days.
YES X NO
State the number of shares outstanding of each of the issuer's classes
of common equity, as of the latest practicable date.
Outstanding at
Class August 14, 1997
- ---------------------------- ---------------------------------------------
COMMON STOCK, PAR VALUE 2,250,216 SHARES
$.0005 PER SHARE
Transitional Small Business Disclosure Format
YES NO X
<PAGE>
BLACK WARRIOR WIRELINE CORP.
QUARTERLY REPORT ON FORM 10-QSB
INDEX
PART I -- FINANCIAL INFORMATION
Page
----
Item 1. Financial Statements
Consolidated Balance Sheets -- June 30, 1997
and December 31, 1996 3
Condensed Consolidated Statements of Operations --
Three Months Ended June 30, 1997 and
June 30,1996 4
Condensed Consolidated Statements of Operations--
Six Months Ended June 30, 1997 and
June 30, 1996 5
Condensed Consolidated Statements of Cash Flows --
Six Months Ended June 30, 1997 and
Period Ended June 30, 1996 6
Notes to Financial Statements --
Six Months Ended June 30, 1997 and
June 30, 1996 7
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations 8
PART II -- OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K 14
2
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PART I -- FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
BLACK WARRIOR WIRELINE CORP. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
<TABLE>
<CAPTION>
JUNE 30 DECEMBER 31
1997 1996
------------ ------------
ASSETS
<S> <C> <C>
Current Assets:
Cash and cash equivalents $ 1,915,228 $ 727,454
Accounts receivable, less allowance for
doubtful accounts of $136,959
at June 30, 1997 and December 31, 1996,
1,865,317 1,369,306
Inventories 246,945 183,467
Prepaid expenses 172,547 53,424
Deferred tax asset 138,071 138,071
Federal income tax receivable 0 14,636
------------ ------------
Total current assets 4,338,108 2,486,358
Land and building, held for sale 400,000 400,000
Property, plant & equipment, less accumulated
depreciation of $4,026,078 and $3,729,370 at
June 30, 1997 and December 31, 1996,
respectively 5,881,968 2,194,591
Goodwill, less amortization of $14,061 and $0 at June 30, 1997 820,934 224,305
and December 31, 1996, respectfully
Other assets 223,395 5,420
------------ ------------
Total assets $ 11,664,405 $ 5,310,674
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 1,055,671 $ 808,832
Accounts payable, related party 180,269 89,733
Accrued salaries and vacation pay 60,788 25,085
Income tax payable 18,191 52,548
Accrued interest payable 34,194 29,530
Other accrued expenses 309,771 381,396
Mortgage note payable, related party 150,00 150,000
Notes payable to bank 121,606 18,272
Current maturities of long-term debt and
Capital lease obligations 3,371,900 307,806
------------ ------------
Total current liabilities 5,302,390 1,863,202
Deferred tax liability 214,355 214,355
Note payable to bank, less current maturities 95,397 31,486
Mortgage payable, related party 230,000 230,000
Long-term debt and capital lease obligations,
less current maturities 2,704,652 713,873
------------ ------------
Total liabilities 8,546,794 3,052,916
Common stock, par value $.0005 per share,
50,000,000 shares authorized, 2,250,216 and 2,185,216
shares issued at June 30, 1997 and December 31, 1996, respectfully 1,126 1,093
Additional paid-in capital 5,052,458 5,133,087
Additional paid-in capital- warrants 616,696
Common stock to be issued in connection with acquisition(133,333 shares 279,999
Accumulated deficit (2,249,275) (2,293,029)
Treasury stock, at cost, 814,626 shares (583,393) (583,393)
------------ ------------
Total stockholders' equity 3,117,611 2,257,758
------------ ------------
Total liabilities and stockholders' equity $ 11,664,405 $ 5,310,674
============ ============
3
</TABLE>
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BLACK WARRIOR WIRELINE CORP. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
THREE MONTHS ENDED
JUNE 30, JUNE 30,
1997 1996
----------- ------------
Net revenues $ 2,488,051 $ 1,612,448
Operating costs and expenses (2,130,474) (1,494,921)
Depreciation and amortization expense (268,487) (131,761)
----------- ------------
Operating income (loss) 89,090 (14,234)
Interest expense and amortization
of debt discount (95,735) (103,808)
Other income 16,464 67,762
----------- ------------
Net income (loss) before provision
for income taxes 9,819 (50,280)
Provision for income taxes 0 0
----------- ------------
Net income (loss) $ 9,819 $ (50,280)
=========== ===========
Net income (loss) per common share $ .01 $ (.07)
Weighted average common
shares outstanding 2,306,269 759,052
4
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BLACK WARRIOR WIRELINE CORP. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
SIX MONTHS ENDED
JUNE 30, JUNE 30,
1997 1996
----------- ------------
Net revenues $ 4,653,069 $ 3,146,748
Operating costs and expenses (4,058,840) (2,979,193)
Depreciation and amortization expense (464,514) (275,272)
----------- ------------
Operating income (loss) 129,715 (107,717)
Interest expense and amortization
of debt discount (136,070) (205,115)
Other income 50,116 77,581
----------- ------------
Net income (loss) before provision
for income taxes 43,761 (235,251)
Provision for income taxes 0 0
----------- ------------
Net income (loss) $ 43,761 $ (235,251)
=========== ===========
Net income (loss) per common share $ .02 $ (.31)
Weighted average common
shares outstanding 2,245,742 759,052
5
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BLACK WARRIOR WIRELINE CORP. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE PERIODS ENDED:
<TABLE>
<CAPTION>
June 30, 1997 June 30, 1996
------------- -------------
<S> <C> <C>
Cash flows from operating activities:
Net income(loss) $ 43,754 $ (235,251)
Adjustments to reconcile net income(loss) to
cash provided by operations:
Depreciation 450,453 275,272
Amortization 14,061
Allowance for doubtful accounts
Net gain on disposal of plant, property
and equipment (20,460) (71,600)
Amortization of discount on bonds payable 28,688
Change in:
Accounts receivable (322,227) (216,934)
Inventories (20,925) 1,099
Prepaid expenses 17,377 39,734
Income/other receivable 14,636 (128)
Other assets (27,975)
Accounts payable
and other liabilities (55,555) 196,850
----------- -----------
Cash provided
by operations 121,827 (10,958)
----------- -----------
Cash flow from investing activities:
Acquisitions of plant,
property, and equipment (622,642) (75,955)
Proceeds from sale of plant, property
and equipment 46,093 71,600
Acquisition of business, net of cash acquired (264,403)
----------- -----------
Cash used in
investing activities (840,952) (4,355)
----------- -----------
Cash flow from financing activities:
Debt issuance costs (190,000)
Proceeds from debt 2,322,500
Principal payments on debt and
lease obligations (225,601) (159,284)
----------- -----------
Cash(used in) provided by
financing activities 1,906,899 (159,284)
----------- -----------
Net decrease(increase)
in cash and cash equivalents 1,187,774 (174,597)
Cash and cash equivalents, beginning of period 727,454 284,825
----------- -----------
Cash and cash equivalents, end of period $ 1,915,228 $ 110,228
----------- -----------
Supplemental disclosure of cash
flow information:
Interest paid $ 56,066 $ 43,331
Taxes paid 51,750
Supplemental schedule of noncash investing and financing:
Acquisition of plant, property and equipment financed under
capital leases and notes payable 818,632 280,740
Common stock issued for consulting fees 136,500
Issuance of warrants in connection with debt (399,600)
Business acquisition, net of cash acquired:
Current assets 216,337
Current liabilities (327,315)
Property, plant, and equipment 2,722,189
Assets, noncurrent 610,691
Long term liabilities (2,677,500)
Equity (279,999)
-----------
Net cash used to acquire Petro-Log and PWS 264,403
</TABLE>
6
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BLACK WARRIOR WIRELINE CORP. AND SUBSIDIARIES
NOTES TO FINANCIAL STATEMENTS
1. GENERAL
The accompanying financial statements reflect all adjustments which, in
the opinion of management, are necessary for a fair presentation of the
financial position of Black Warrior Wireline Corp. and subsidiaries
(the "Company"). Such adjustments are of a normal recurring nature. The
results of operations for the interim periods are not necessarily
indicative of the results to be expected for the full year. The
consolidated financial statements and notes thereto should be read in
conjunction with the financial statements and notes for the years ended
December 31, 1996, 1995, and 1994 in the Company's 1996 Annual Report
on 10-KSB.
2. DEBT RESTRUCTURING
In November 1995, the Company executed Reorganization Agreements with
the holders of an aggregate of $1,922,130 principal amount of
outstanding debentures and indebtedness pursuant to which the
debentures and indebtedness were agreed to be exchanged for an
aggregate of 961,065 shares of the Company's Common Stock. In addition,
pursuant to such agreements, Common Stock Purchase Warrants of the
Company were to be exchanged with the debenture holders for two new
classes of Common Stock Purchase Warrants. Each class of new warrants
was to represent the right to purchase an aggregate of 183,750 shares
of Common Stock. The Class A warrants were to be exercisable at $3.00
per share for a period of four (4) years and the Class B warrants were
to be exercisable at prices increasing in annual increments over the
first three (3) years after issuance from $3.00 per share to $5.00 per
share and were to expire five (5) years after issuance. Through March
31, 1996, an aggregate of $1,353,380 principal amount of debentures and
indebtedness was exchanged for 648,151 shares of Common Stock and the
remaining $568,750 of debentures to be exchanged pursuant to the
agreements executed in November 1995 was subject to the fulfillment of
certain closing conditions. Issuance of the warrants was not completed
in 1995. In September and October, 1996 the holders of an additional
$800,000 principal amount of Debentures executed Reorganization
Agreements and the Reorganization Agreements entered into in November
1995 were amended so as to provide that in lieu of the issuance of the
Class A warrants, an aggregate of 101,250 shares of Common Stock would
be issued and the exercise price of the Class B warrants would be
reduced to $2.00 per share throughout the five-year term of such
warrants. During 1996, $1,368,750 principal amount of indebtedness was
exchanged for an aggregate of 712,914 shares of Common Stock and an
aggregate of 303,750 Class B warrants were issued. In addition, an
aggregate of 101,250 shares of Common Stock were issued in exchange for
the Company's obligation to issue the Class A warrants. Pursuant to all
such agreements, an aggregate of $2,071,357 of accrued interest and
penalties were waived by the debenture holders.
In connection with the foregoing restructuring, the Company effected a
1-for-200 reverse stock split on October 30,1995.
7
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3. BUSINESS COMBINATIONS
Effective June 6, 1997, the Company completed the acquisition of
Production Well Services, Inc. (PWS). PWS is engaged in the wireline
and oil and gas well services business in the south Mississippi area.
For financial statement purposes, the acquisition was accounted for as
a purchase and accordingly, PWS's results are included in the
consolidated financial statements since the date of acquisition. The
acquisition resulted in excess of cost over fair market value of net
assets acquired of approximately $610,000, which will be amortized over
ten years. The following is a summary of assets acquired, liabilities
assumed, and consideration paid in connection with the acquisition:
Fair value of assets acquired, including goodwill $ 1,146,478
Cash paid for assets acquire, net of cash received 836
Common stock issued in connection with acquisition (279,999)
------------
Liabilities assumed or incurred 867,315
Effective June 9, 1997, the company completed the acquisition of
Petro-Log, Inc. (Petro- Log). Petro-Log is engaged in the wireline and
oil and gas well services business in Wyoming, Montana, and South
Dakota. For financial statement purposes, the acquisition was accounted
for as a purchase and accordingly, Petro-Log's results are included in
the consolidated financial statements since the date of acquisition.
The following is a summary of assets acquired, liabilities assumed, and
consideration paid in connection with the acquisition:
Fair value of assets acquired $ 2,402,739
Cash paid for assets acquired (265,239)
-------------
Liabilities assumed or incurred 2,137,500
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS
INDUSTRY OVERVIEW AND ECONOMIC FACTORS IMPACTING COMPANY OPERATIONS
The level of activity and profitability experienced by the Company is
directly related to the demand for the Company's services by the
domestic oil and gas industry. The market price of oil and natural gas
is the principal factor driving this demand. In recent years, there
have been some periods of relative price stability but only isolated
areas of real growth. In 1996, however, most of the industry
experienced some growth in demand and pricing. Management of the
Company believes that the continuing stability of domestic oil prices
and relatively high gas prices should help continue this trend in 1997.
8
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Increased demand for the services provided by the Company and its
competitors coupled with a general consolidation in the service sector
has reduced downward pressure on pricing. This has led to a reduction
in "predatory" pricing used by some companies to increase market share
and helped improve overall margins. The Company believes that continued
improvements will be seen in the remainder of 1997 as this trend
continues.
CORPORATE OPERATIONAL AND EXPANSION STRATEGY
To date, the Company has acquired the following companies. On November
19, 1996, the acquisition of Dyna-Jet, a Wyoming corporation, was
finalized. Dyna-Jet is engaged in the wireline and oil and gas well
services business in the Gillette, Wyoming area. On June 6, 1997, the
Company acquired Production Well Services, Inc., a Mississippi
corporation ("PWS"). PWS is engaged in the wireline and oil and gas
services business in the south Mississippi area. The most recent
acquisition transpired on June 9, 1997. The acquired company was
Petro-Log, Incorporated, a Wyoming corporation ("Petro-Log"). Petro-
Log is engaged in the wireline and oil and gas well services business
in Wyoming, Montana and South Dakota.
The Company plans to continue its marketing policy which stresses the
safety, reliability, technological advantage and overall quality of its
services. Management believes that an increasing number of customers
consider these factors foremost in their selection criteria for an oil
service company.
The Company intends, as and if opportunities arise, to aggressively
expand its wireline, well service activities, and other service areas
through the acquisition of other oil and gas service companies that
meet its strategic goals. The Company will continue to re-deploy its
assets to areas that are most beneficial to the long-term growth of the
Company.
The Company is actively seeking to expand its directional drilling
services by providing downhole steering tools in addition to hoisting
services. Directional drilling entails entering a production zone
horizontally, using specialized drilling equipment, which expands the
area of interface of hydrocarbons and thereby greatly enhancing
recoverability. The Company expects to enlarge its customer base by
providing steering services to other drilling contractors which do not
have "in house" steering tools. Delivery of the Company's first set of
gamma/steering tools is scheduled for the end of August with the second
set to follow at the end of September.
Another service the Company intends to expand is tubing conveyed
perforating. The Company is providing this service in Alabama and
Mississippi and plans to introduce this service throughout its
operational areas.
The Company has purchased state of the art downhole tools including
segmented bond tools, and magnetic and 40-arm casing inspection tools
for the Permian Basin region. These tools were placed into service late
in the second quarter and their impact should be felt during the
remainder of the year. Similar tools have been ordered for the south
Mississippi and Alabama and Rocky Mountain regions. These tools will
enable the
9
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Company to provide services unavailable from smaller wireline
competitors and thereby enable the Company to provide services in a
less price competitive environment.
The ongoing modernization and expansion of the Company's wireline fleet
continued in the second quarter with new and refurbished trucks being
delivered to all regions. The Company believes that this strategy is a
key to its long term growth.
RESULTS OF OPERATIONS
The Company had net income of $9,819 for the second quarter of 1997 as
compared with a net loss of $50,280 for the same period of 1996. The
net income of $9,819 can be attributed to improved margins on wireline
services as well as the increase in sales from the Wyoming and
Mississippi area due to the increased customer base resulting from the
two acquisitions that occurred during June. There was a slight decrease
in net income from three months ended June 30, 1997 as compared to
three months ended March 31, 1997. This decline is a direct result of
acquisition cost incurred during June related to the St. James Capital
financing, the Petro-Log and PWS acquisitions. The PWS acquisition
increased sales by $72,665 and the Petro-Log acquisition increased
sales by $163,430 in the month of June.
THREE MONTHS ENDED JUNE 30, 1997 COMPARED WITH THREE MONTHS ENDED JUNE 30, 1996
Net revenues increased by $875,603 to $2,488,051 for the second
quarter of 1997 compared with net revenues of $1,612,448 in the same
period in 1996. While completion services and sales and rentals of
tools and packers declined, there was a substantial increase in
wireline service revenues. A large portion of this increase stems from
revenues in the Permian Basin and the increase of $236,095 is directly
related to the acquisitions of Petro-Log and PWS. A major project
initiated by a large customer began in the third quarter of 1996 is
expected to continue through 1997. The Company supplies all wireline
services for this project. The Company expects an increase in demand
from most of the Company's customers in the Permian Basin during 1997.
Revenues by division for the quarters ended June 30, 1997 and June 30,
1996 are summarized below:
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SIX MONTHS ENDED THREE MONTHS ENDED
----------------------- ----------------------
JUNE 30, JUNE 30, JUNE 30, JUNE 30,
1997 1996 1997 1996
---- ---- ---- ----
Wireline services
(logging, directional
services, perforating) $3,733,679 2,137,106 2,058,158 1,074,658
Completion (workover
services) $ 774,758 845,716 378,883 463,137
Tools and Packers
(sales and rentals of
bridge plugs) $ 144,632 163,926 51,010 74,653
---------- ---------- ---------- ----------
Total $4,653,069 3,146,748 2,488,051 1,612,448
========== ========== ========== ==========
Operating costs and expenses increased by $635,553 in the second
quarter of 1997 as compared with the same period in 1996. This was due
to increased costs for supplies and materials from vendors and the
Company's expanding volume of business. In conjunction with the
financing of the acquisitions, the Company entered into an agreement
with Southwick Investments and incurred fees totaling $190,000 that
will be expensed over the life of the 9% Convertible Promissory Note
and the 10% Bridge Loan. The fee was paid from the proceeds of the two
notes. A total of 65,000 shares of the Company's common stock was
issued to Swartwood, Hesse Inc., Pangaea Investment Consultants, LTD in
consideration of a two year consulting agreement between the foregoing
mentioned and the Company. The total cost of $136,500 will be expensed
over the term of the consulting agreements. Interest expense relating
to the issuance of the St. James Capital debt and stock purchase
warrants for the second quarter totaled $62,881. Salaries increased
$351,835 for the first six months of 1997 with the total number of
employees increasing to 146 at June 30, 1997 from 96 at June 30, 1996.
PWS and Petro-Log increased the number of employees by 24 during the
second quarter. The salary increase was due to salary raises for
existing employees and the addition of new personnel added to meet the
increased work load.
Interest expense decreased by $8,073 in the second quarter of 1997 as
compared with the same period in 1996. Interest expense relating to the
issuance of the St. James Capital debt and stock warrants for the
second quarter totaled $62,881. Three to five year notes were used to
purchase new vehicles and equipment during the first six months of
1997. An aggregate of $225,601 of principal amount at June 30, 1997
went to reduce notes payable. New note payables acquired the first six
months totaled $818,632 and $5,000,000 from the St. James financing.
Interest on the debt ranged from prime to 12.00%.
11
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LIQUIDITY AND CAPITAL RESOURCES
Cash provided by the Company's operating activities was $121,827 for
the six months ended June 30, 1997 as compared with cash used of
$10,958 for the period ended June 30, 1996. Investing activities of the
Company used cash of $840,952 during the period ended June 30, 1997 for
the acquisitions of property, plant, and equipment, and acquisition of
new business offset by proceeds from the sale of fixed assets of
$46,093. Financing activities provided cash of $1,906,899 to pay
principal payments of long-term notes and capital lease obligations.
Other uses of cash consisted of purchasing tools and supplies rather
than purchasing them on credit.
The acquisitions of PWS and Petro-Log were financed with the proceeds
of borrowing from St. James Capital Partners, L.P. ("ST. James").
Pursuant to an Agreement for Purchase and Sale dated June 6, 1997 (the
"Agreement") between the Company and St. James, the Company agreed to
issue and sell and St. James agreed to purchase the Company's
promissory notes aggregating $5,000,000. Of such amount, $2,000,000 is
represented by the Company's 9% Convertible Promissory Note due June 6,
2002, and $3,000,000 is represented by the Company's 10% Bridge Loan
Note due September 4, 1997, subject to extension of the maturity date
to October 4, 1997. The $2,000,000 note is convertible into shares of
the Company's Common Stock at an initial conversion price of $2.75 per
share, increasing one year after issuance to $3.25 per share and
further increasing two years after issuance to $3.75 per share, subject
to anti-dilution adjustment for certain issuances of securities by the
Company at prices per share of Common Stock less than the conversion
price then in effect. Payment of principal and interest on both of the
notes is collateralized by substantially all the assets of the Company.
The Company is seeking to refinance the bridge note with the proceeds
of a senior secured loan not yet obtained. St. James has agreed to
subordinate the indebtedness owing to it to up to $4,000,000 of
indebtedness of the Company to a senior lender out of which, if
borrowed prior to its maturity date, the Bridge Note must be paid, and
up to $2,000,000 of working capital financing. St. James was also
issued warrants to purchase an aggregate of 666,000 shares of Common
Stock at an initial exercise price of $2.75 per share, increasing on
year after issuance to $3.25 per share and further increasing two years
after issuance to $3.75 per share, subject to anti-dilution adjustment
for certain issuances of securities by the Company at prices per share
of Common Stock less than the exercise price then in effect. The
maturity of the Bridge Note can be extended to October 4, 1997 upon
issuance of warrants containing the same terms to purchase an
additional 20,000 shares of Common Stock. The shares issuable on
conversion of the note and exercise of the warrants have demand and
piggy-back registration rights under the Securities Act of 1933. Of the
$5,000,000 proceeds from the sale of the notes, $2,000,000 was advanced
concurrently with the acquisition of PWS and $3,000,000 was advanced
concurrently with the acquisition of Petro-Log. In addition to
providing the funds to complete the PWS and Petro-Log acquisitions, the
proceeds will be used to purchase and improve equipment, including the
purchase of four additional wireline trucks, and for working capital.
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The Company is currently engaged in efforts to raise additional capital
to refinance the 10% Bridge Loan Note due September 4, 1997.
RECENTLY ISSUED ACCOUNTING STANDARDS
In February 1997, the Financial Accounting Standards Board issued
Statement of Financial Accounting Standards No. 128, Earnings Per Share
(SFAS 128). SFAS 128 supersedes existing generally accepted accounting
principles relative to the calculation of earnings per share, is
effective for years ending after December 15, 1997 and requires
restatement of all prior period earnings per share information upon
adoption. Generally, SFAS 128 requires a calculation of basic earnings
per share, which takes into consideration income (loss) available to
common shareholders and the weighted average of common shares
outstanding. SFAS 128 also requires the calculation of a diluted
earnings per share, which takes into effect the impact of all
additional common shares that would have been outstanding if all
dilutive potential common shares relating to options , warrants, and
convertible securities had been issued, as long as their effect is
dilutive, with a related adjustment of income available to common
shareholders, as appropriate. SFAS 128 requires dual presentation of
basic and diluted earnings per share on the face of the statement of
operation and requires a reconciliation of the numerator and
denominator of the basic earnings per share computation. The Company
does not expect the effect of its adoption of SFAS 128 to be material.
The Board has issued SFAS No. 130, "Reporting Comprehensive Income"
which establishes standards for reporting and display of comprehensive
income and its components (revenues, expenses, gains, and losses) in
the financial statements. Comprehensive income is defined as the change
in equity of a business enterprise during a period from transactions
and other events and circumstances from nonowner sources. It includes
all changes in equity during a period except those resulting from
investments by owners and distributions to owners. This Statement does
not require a specific format for the presentation of comprehensive
income but requires an amount representing total comprehensive income
for the period. This Statement is effective for fiscal years beginning
after December 15, 1997 with reclassification of earlier periods
required. Other than the additional presentation requirements of this
Statement, the Company does not anticipate a material impact on the
financial position, results of operations, earnings per share or cash
flows.
The Board has issued SFAS No. 131, "Disclosures about Segments of an
Enterprise and Related Information", which establishes standards for
the way that public business enterprises report information about
operating segments in annual financial statements and requires selected
information about operating segments in interim financial reports.
This Statement requires that a public business enterprise report
financial and descriptive information about its reportable operating
segments. Operating segments are components of an enterprise about
which separate financial information is available that is evaluated
regularly by the chief operating decision maker in deciding how to
allocate resources and in assessing performance. Generally, financial
information is required to be reported on
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the basis that it is used internally for evaluating segment performance
and deciding how to allocate resources to segments.
The financial information required includes a measure of segment profit
or loss, certain specific revenue and expense items, segment assets and
reconciliation of each category to the general financial statements.
The descriptive information required includes the way that the
operating segments were determined, the products and services provided
by the operating segments, differences between the measurements used in
reporting segment information and those used in the general purpose
financial statements, and changes in the measurement of segment amounts
from period to period.
This Statement is effective for financial statements for periods
beginning after December 15, 1997 with restatement of earlier periods
required in the initial year of application. This Statement need not be
applied to interim financial statements in the initial year of its
application, but comparative information for interim periods in the
initial year of application is to be reported in financial statements
for interim periods in the second year of application. The Company is
currently determining if these disclosures will be applicable and,
therefore, required in future periods.
PART II -- OTHER INFORMATION
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits
27. Financial Data Schedule
(b) Reports on Form 8-K
The Company filed a Current Report on Form 8-K on
June 20, 1997, in conjunction with the acquisition of
Petro-Log.
No other Items of Part II are applicable to the Registrant for the
period covered by this Quarterly Report on Form 10-QSB.
14
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SIGNATURES
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.
BLACK WARRIOR WIRELINE CORP.
(Registrant)
/s/ William L. Jenkins
Date: August 14, 1997 -------------------------------------
William L. Jenkins
President and Chief Operating Officer
(Principal Executive, Financial and
Accounting Officer)
15
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