<PAGE>
<PAGE>
UNITED STATES 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 quarterly period ended June 30, 1998
Commission File Number: 1-12401
METEOR INDUSTRIES, INC.
--------------------------------------------------
(Exact Name of Issuer as Specified in its Charter)
COLORADO 84-1236619
- ------------------------------- ---------------------------------------
(State or Other Jurisdiction of (I.R.S. Employer Identification Number)
Incorporation or Organization)
216 SIXTEENTH STREET, SUITE 730
DENVER, COLORADO 80202
----------------------------------------
(Address of Principal Executive Offices)
(303) 572-1137
-------------------------------
(Registrant'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 Exchange Act during the past 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___
---
There were 4,130,228 shares of the Registrant's $.001 par value common stock
outstanding as of June 30, 1998, of which 592,800 were held in Treasury.
<PAGE>
<PAGE>
METEOR INDUSTRIES, INC.
CONSOLIDATED BALANCE SHEETS
ASSETS
June 30 December 31
1998 1997
----------- -----------
CURRENT ASSETS
Cash and cash equivalents $ 604,291 $ 225,694
Restricted cash 529,725 1,150,266
Accounts receivable-trade, net of
allowance of $345,294 and
$455,067, respectively 7,837,061 9,745,318
Accounts receivable, related party 63,609 91,919
Notes receivable 213,060 106,031
Inventory 3,849,663 3,818,332
Deferred tax asset 394,793 404,970
Other current assets 381,687 283,604
----------- -----------
Total current assets 13,873,889 15,826,134
Property, plant and equipment, net 17,385,640 13,939,783
Other assets
Notes receivable, net 363,533 179,110
Investments in closely held businesses 1,415,926 1,395,045
Other assets 2,239,316 601,279
----------- -----------
Total other assets 4,018,775 2,175,434
TOTAL ASSETS $35,278,304 $31,941,351
Continued on next page
2
<PAGE>
<PAGE>
METEOR INDUSTRIES, INC.
CONSOLIDATED BALANCE SHEETS
(Continued)
LIABILITIES AND SHAREHOLDERS' EQUITY
June 30 December 31
1998 1997
----------- -----------
CURRENT LIABILITIES
Accounts payable, trade $ 6,157,953 $ 5,655,272
Accounts payable, related party 18,566 26,407
Bank overdraft 644,638 327,734
Current portion, long-term debt 1,513,554 592,195
Accrued expenses 710,669 826,875
Taxes payable 1,610,425 1,672,586
Revolving credit facility 1,903,743 3,833,572
----------- -----------
Total current liabilities 12,559,548 12,934,641
Long-term debt 6,375,183 2,912,183
Deferred tax liability 3,911,995 2,288,349
Minority interest in subsidiaries 4,734,976 4,515,010
----------- -----------
Total liabilities 27,581,702 22,650,183
Commitments and contingencies
SHAREHOLDERS' EQUITY
Common stock, $.001 par value; authorized
10,000,000 shares, 4,130,228 and
4,130,228 shares issued and
outstanding, respectively 4,130 4,130
Paid-in capital 6,319,071 6,319,071
Treasury stock, at cost, 592,800 and
18,500 shares held, respectively (2,249,175) (88,694)
Retained earnings 3,622,576 3,056,661
----------- -----------
Total shareholders' equity 7,696,602 9,291,168
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY $35,278,304 $31,941,351
The accompanying notes are an integral part of the financial statements.
3
<PAGE>
<PAGE>
METEOR INDUSTRIES, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
FOR THE THREE MONTHS ENDED JUNE 30, 1998 AND 1997
1998 1997
------------ ------------
Net sales $ 29,575,250 $ 14,307,724
Cost of sales 24,828,118 11,977,551
------------ ------------
Gross profit 4,747,132 2,330,173
Selling, general and administrative
expenses 3,660,220 2,028,835
Depreciation and amortization 344,129 219,516
------------ ------------
Total expenses 4,004,349 2,248,351
Income from operations 742,783 81,822
Other income and (expenses)
Interest income 39,666 129,291
Interest expense (144,216) (87,474)
Gain on sale of assets 500 27,850
Other Income -- 16,483
------------ ------------
Total other income and (expenses) (104,050) 86,150
Income before income taxes
and minority interest 638,733 167,972
Income tax expense 235,054 65,509
Income before minority interest 403,679 102,463
Minority interest 110,976 100,430
Net income $ 292,703 $ 2,033
Other comprehensive income, net of tax $ -- $ --
Earnings per common share and
equivalent:
Basic
Net income $ .07 $ --
Diluted
Net income $ .07 $ --
Weighted average common share and
common share equivalents:
Basic 4,098,895 3,670,228
Diluted 4,241,010 3,767,320
The accompanying notes are an integral part of the financial statements.
4
<PAGE>
<PAGE>
METEOR INDUSTRIES, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
FOR THE SIX MONTHS ENDED JUNE 30, 1998 AND 1997
1998 1997
------------ ------------
Net sales $ 56,399,697 $ 28,160,264
Cost of sales 46,913,106 23,606,022
------------ ------------
Gross profit 9,486,591 4,554,242
Selling, general and administrative
expenses 7,344,784 4,001,287
Depreciation and amortization 648,406 439,031
------------ ------------
Total expenses 7,993,190 4,440,318
Income from operations 1,493,401 113,924
Other income and (expenses)
Interest income 83,685 230,732
Interest expense (332,461) (202,627)
Gain on sale of assets 2,000 497,290
Other Income -- 45,350
------------ ------------
Total other income and (expenses) (246,776) 570,745
Income before income taxes
and minority interest 1,246,625 684,669
Income tax expense 458,758 267,021
Income before minority interest 787,867 417,648
Minority interest 221,952 200,860
Net income $ 565,915 $ 216,788
Other comprehensive income, net of tax $ -- $ --
Earnings per common share and
equivalent:
Basic
Net income $ .14 $ .06
Diluted
Net income $ .13 $ .06
Weighted average common share and
common share equivalents:
Basic 4,103,311 3,511,895
Diluted 4,245,427 3,608,986
The accompanying notes are an integral part of the financial statements.
5
<PAGE>
<PAGE>
METEOR INDUSTRIES, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE SIX MONTHS ENDED JUNE 30,1998 AND 1997
1998 1997
---------- ----------
Cash flows from operating activities
Net income $ 565,915 $ 216,788
Adjustments to reconcile net income
to net cash provided by operating activities:
Depreciation and amortization 648,406 439,031
(Gain)/loss on disposal of property & equipment (2,000) (45,350)
Deferred income taxes 1,082 (33,912)
Minority interest 221,952 200,860
Changes in working capital, net of acquired
business
(Increase)/decrease in accounts receivable 2,423,518 (182,268)
(Increase)/decrease in inventories 299,730 34,688
(Increase)/decrease in other current assets (53,349) 19,113
(Increase)/decrease in other assets (94,860) 162,582
Increase/(decrease) in accounts payable 61,793 (556,425)
Increase/(decrease)in accrued liabilities (122,839) (1,301)
Increase/(decrease) in taxes payable (96,483) 287,881
---------- ----------
Net cash provided by operating activities 3,852,865 541,687
Cash flows from investing activities
Cash proceeds from sale of property 2,000 119,023
Purchases of property and equipment (482,326) (301,470)
Investment in closely held business (20,875) 18,360
Note receivable (loan) payments (291,452) 291,593
Purchase of Tri-Valley, net of cash acquired (2,834,265) --
---------- ----------
Net cash provided (used) by
investing activities (3,626,918) 127,506
Cash flows from financing activities
Payments on revolving credit facilities (1,929,829) (2,154,093)
Increase (decrease) in bank overdraft 316,905 (170,308)
Payments on long-term debt -- (325,346)
Borrowings on long-term debt 3,305,523 --
Purchase of treasury stock (2,160,490) --
Restricted cash 620,541 278,352
Sale of stock -- 3,692,246
---------- ----------
Net cash provided by financing
activities 152,650 1,320,851
Net increase in cash and equivalents 378,597 1,990,044
Cash and equivalents, beginning of period 225,694 151,992
Cash and equivalents, end of period $ 604,291 $ 2,142,036
The accompanying notes are an integral part of the financial statements.
6
<PAGE>
<PAGE>
METEOR INDUSTRIES, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
JUNE 30, 1998
NOTE 1 -- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Meteor Industries, Inc.("Meteor" or "Company") was incorporated on December
22, 1992, as a Colorado based holding company. Graves Oil & Butane Co., Inc.
("Graves"), which was acquired effective September 1, 1993, is a wholesale and
retail distributor of petroleum products primarily in northern New Mexico,
Colorado, Arizona and Utah. Graves also operates retail gasoline and
convenience stores in northern New Mexico in its own account and through
limited liability companies. El Boracho, Inc., which was acquired September
1, 1993, holds a liquor license for use by an Albuquerque, New Mexico
convenience store. Hillger Oil Company ("Hillger"), which was acquired
effective April 1, 1995, is a wholesale and retail distributor of petroleum
products primarily in southern New Mexico and Arizona in its own account and
through limited liability companies. Capco Resources, Inc. ("CRI"), is a
holding Company involved in the development of a power project in Pakistan.
The acquisition of CRI was accounted for as a reverse acquisition with CRI
treated as the acquirer. In 1996 the Company transferred its ownership of CRI
to Meteor Holdings LLC ("MHL"). Innovative Solutions and Technologies, Inc.
("IST") is involved in providing environmental consulting. Fleischli Oil
Company, Inc. ("Fleischli"), which was acquired effective August 1, 1997, is a
wholesale distributor of petroleum products primarily in Wyoming, Colorado,
Utah and Nebraska. Tri-Valley Gas Co. ("Tri-Valley"), which was acquired on
May 29, 1998, is a wholesale and retail distributor of petroleum products in
Colorado.
PRINCIPLES OF CONSOLIDATION AND ORGANIZATION - The consolidated financial
statements include the accounts of Meteor Industries, Inc., and its wholly
owned subsidiaries, Graves, including its wholly owned subsidiary, El Boracho,
Inc., its wholly owned subsidiary Bloomfield Pyramid L.L.C., Hillger,
including its 75% owned subsidiary Hatch Pyramid LLC and its wholly owned
subsidiary Socorro Pyramid L.L.C., Fleischli and its 100% owned subsidiary
Tri-Valley, and IST and Meteor's 73% owned subsidiary, Meteor Holdings LLC.
All significant intercompany transactions and balances have been eliminated in
consolidation.
EARNINGS PER SHARE - Basic earnings per common share is computed by dividing
the net income by the weighted average number of common shares outstanding.
Diluted earnings per common share is computed by taking into account the
dilutive effect of common stock options and warrants and convertible
securities. A reconciliation of the denominator used in the calculation of
basic and diluted earnings per share is presented below. Antidilutive stock
options and warrants of 958,800 and 810,000 for the six months ended June 30,
1998, and 1997, respectively, are omitted from the denominator. The numerator
is unchanged. The shares available upon exchange of a subsidiary's preferred
stock of 1,141,514 and 694,748 for the six months ended June 30, 1998, and
1997, respectively, are omitted as they are antidilutive.
7
<PAGE>
<PAGE>
Three Months Six Months
Ended June 30, Ended June 30,
1998 1997 1998 1997
--------- --------- --------- ---------
Denominator:
Average common shares
outstanding 4,098,895 3,670,228 4,103,311 3,511,895
Average dilutive stock
options and warrants 142,115 97,092 142,116 97,091
Diluted shares 4,241,010 3,767,320 4,245,427 3,608,986
INTERIM FINANCIAL INFORMATION - These financial statements have been prepared
in accordance with generally accepted accounting principles for interim
financial information. Accordingly, they do not include all of the
information and footnotes required by generally accepted accounting principles
for complete financial statements. In the opinion of management, such interim
statements reflect all adjustments (consisting of normal recurring accruals)
necessary to present fairly the financial position and the results of
operations and cash flows for the interim periods presented. The results of
operations for these interim periods are not necessarily indicative of the
results to be expected for the full year. These financial statements should
be read in conjunction with the audited consolidated financial statements and
footnotes for the year ended December 31, 1997, filed with the Company's Form
10-K.
NOTE 2 - NEW ACCOUNTING PRONOUNCEMENTS
The Company adopted SFAS No. 130, "Reporting Comprehensive Income," in the
first quarter of 1998. The Company has no other comprehensive income.
The Company is required to adopt SFAS No. 131, "Disclosures about Segments of
an Enterprise and Related Information," in the fourth quarter of 1998. SFAS
No. 131 will supersede the business segment disclosure requirements currently
in effect under SFAS No. 14. SFAS No. 131, among other things, establishes
standards regarding the information a company is required to disclose about
its operating segments and provides guidance regarding what constitutes a
reportable operating segment. The Company currently believes the segment
disclosures pursuant to SFAS No. 131 will not be materially different from the
current disclosures pursuant to SFAS No. 14.
In June 1998, the Financial Accounting Standards Board issued Statement of
Financial Accounting Standards No. 133, "Accounting for Derivative Instruments
and Hedging Activities." This statement, effective for all fiscal quarters of
fiscal years beginning after June 15, 1999, establishes accounting and
reporting standard for derivative instruments and for hedging activities. It
requires that the Company recognize all derivatives as either assets or
liabilities in the statement of financial position and measure those
instruments at fair value. At this time, the Company cannot determine the
effects, if any, adopting this statement will have on its financial condition,
liquidity or results of operations.
NOTE 3 - ACQUISITIONS
On May 29, 1998 the Company closed on the acquisition of Tri-Valley Gas Co.
The acquisition was recorded using purchase accounting rules. The purchase
price was $3,000,000 for 100% of the outstanding stock of Tri-Valley.
8
<PAGE>
<PAGE>
NOTE 4 - RELATED PARTY TRANSACTION
In June 1998 the Company acquired 533,000 shares of its common stock from its
major shareholder for $2,000,000. $1,250,000 was paid in cash on signing the
agreement, $250,000 was paid in cash in August and a note for $500,000 was
executed which calls for 18 equal monthly payments with interest at 10%
beginning on October 1, 1998.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS FOR METEOR INDUSTRIES, INC.
This Report contains forward-looking statements within the meaning of the
"safe harbor" provisions of the Private Securities Litigation Act of 1995.
Such state-ments are based on management's current expectations and are
subject to a number of factors and uncertainties which could cause actual
results to differ materially from those described in the forward-looking
statements.
The Company is engaged in the distribution and marketing of refined petroleum
products including gasoline, diesel fuel, propane and lubricants. The
Company's growth, since its inception in 1992, has been primarily through the
acquisition of businesses in the petroleum marketing industry. The Company's
strategy is to continue to pursue acquisitions in the fragmented petroleum
marketing industry.
LIQUIDITY AND CAPITAL RESOURCES
Net cash provided by operating activities totaled $3,852,865 for the six
months ended June 30, 1998 compared to $541,687 for the six months ended June
30, 1997. The increase in cash provided in 1998 is primarily related to the
improved collection of accounts receivable and additional cash flow generated
by the operation of Fleischli and Tri-Valley.
As of June 30, 1998, the Company had working capital of $1,314,341 compared
to working capital of $2,891,493 at December 31, 1997. The decrease in the
working capital is due primarily to increases in current portion of long term
debt and accounts payable.
Net cash used by investing activities totaled $3,626,918 for the six months
ended June 30, 1998, compared to cash provisions of $127,506 for the six
months ended June 30, 1997. The increase in cash used is primarily due to
the investment of $2,834,265, net of cash acquired, in Tri-Valley and
$482,326 in equipment purchases in 1998.
Net cash provided by financing activities totaled $152,650 for the six months
ended June 30, 1998 compared to a provision of $1,320,851 for the six months
ended June 30, 1997. The decrease in 1998 is primarily related to the
purchase of 574,300 shares of treasury stock for $2,160,490.
The Company renegotiated three revolving bank credit facilities with Norwest
Business Credit, Inc. into one new credit facility with Norwest Bank Colorado,
N.A. for $7,000,000. The credit lines are subject to the borrowing base of the
Company's subsidiaries, as defined, and on June 30, $1,929,829 was borrowed
against the facility which is recorded as a current liability. The Company has
been in default on timely filing of information with the lender. The lender
waived these defaults.
The Company has various loans with banks which require payments of $741,000 in
1998.
9
<PAGE>
<PAGE>
The Company owns 50% of a limited liability company which in June, 1996,
acquired a convenience store for $610,000 using financing from Phillips 66.
The balance of the loan at June 30, 1998 was $446,449. The Company is a
co-signer on this loan which has a term of 10 years. The Company records its
investment using the equity method, which reflects only the Company's share of
the net worth of the LLC.
The Company is currently negotiating an equipment lease line with Norwest
Equipment Finance, Inc. for $1,300,000 to lease equipment for expansion and
upgrades.
A subsidiary of the Company has preferred stock outstanding which requires no
periodic payments but accrues an 8% dividend and must be redeemed for
$3,543,000 plus accrued dividends at the holder's request any time after
September 15, 2000 unless earlier converted into common stock pursuant to its
terms. This preferred stock is treated as a minority interest on the balance
sheet and recorded at its discounted value. The Company will probably raise
capital or refinance its existing debt in order to pay its long term
obligations as they become due.
The Company is obligated to pay lease costs which are included in selling,
general and administrative expenses of approximately $893,000 in 1998 for
land, building, facilities, and equipment.
The Company utilizes underground tanks at various locations to store petroleum
products and is therefore subject to various federal and state statutes
concerning environmental protection, as well as the New Mexico Ground Water
Protection Act. The various federal and state statutes are designed to
identify environmental damage, identify hazardous material and/or operations,
regulate operations engaged in hazardous activities, and establish procedures
for remedial action as necessary.
The states the Company operates in have recognized the potential cleanup costs
resulting from regulations, and have included the establishment of
corrective action funds. The purpose of the funds are to provide monetary
assistance in both assessing site damage and correcting the damage.
Assistance is not available to repair or replace underground tanks or
equipment. The law specifies requirements which must have been met for an
applicant to be eligible, including a provision that payments will be made in
accordance with regulations (which have not yet been issued), and states that
payment from the corrective action fund are limited to amounts in that fund.
The Company maintains detailed inventory records and performs tank and line
tightness tests on a regular basis on all underground storage tanks.
Management has assessed the environmental contingencies and does not
anticipate any potential liabilities that will have a material adverse effect
on the consolidated financial position, results of operation, or liquidity of
the Company.
The Company is responsible for any contamination of land it owns or leases.
However, the Company may have limitations on any potential contamination
liabilities as well as claims for reimbursement from third parties. The
Company has accrued for environmental remediation which management believes is
required to cover known remediation problems.
10
<PAGE>
<PAGE>
Meteor and its subsidiaries have no proprietary software and have checked with
the manufacturers of their various software packages and have been informed
that new versions addressing the year 2000 problem will be available between
mid-year through end of 1998. At this time the Company has no reason to
believe that there will be any significant problems with its various software
packages. The Company is beginning to evaluate its embedded technology and at
the present time has no indication of significant problems. The Company does
not expect any significant costs related to the year 2000 problem.
The Company adopted SFAS No. 130, "Reporting Comprehensive Income," in the
first quarter of 1998. The Company has no other comprehensive income.
The Company is required to adopt SFAS No. 131, "Disclosures about Segments of
an Enterprise and Related Information," in the fourth quarter of 1998. SFAS
No. 131 will supersede the business segment disclosure requirements currently
in effect under SFAS No. 14. SFAS No. 131, among other things, establishes
standards regarding the information a company is required to disclose about
its operating segments and provides guidance regarding what constitutes a
reportable operating segment. The Company currently believes the segment
disclosures pursuant to SFAS No. 131 will not be materially different from the
current disclosures pursuant to SFAS No. 14.
In June 1998, the Financial Accounting Standards Board issued Statement of
Financial Accounting Standards No. 133, "Accounting for Derivative Instruments
and Hedging Activities." This statement, effective for all fiscal quarters of
fiscal years beginning after June 15, 1999, establishes accounting and
reporting standard for derivative instruments and for hedging activities. It
requires that the Company recognize all derivatives as either assets or
liabilities in the statement of financial position and measure those
instruments at fair value. At this time, the Company cannot determine the
effects, if any, adopting this statement will have on its financial condition,
liquidity or results of operations.
RESULTS OF OPERATIONS
COMPARISON OF THE THREE MONTHS ENDED JUNE 30, 1998 TO JUNE 30, 1997
The Company is primarily engaged in the business of marketing and distributing
refined petroleum and related products employing wholesale, convenience store
operations and environmental services.
The Company's sales for the three months ended June 30, 1998, were $29,575,250
compared to $14,307,724 for the comparable period ending June 30, 1997. The
increase in revenue of $15,267,526 is primarily related to the Fleischli and
Tri-Valley acquisitions offset by lower prices for the Company's products.
The Company's cost of sales for the three months ended June 30, 1998, were
$24,828,118 (83.9% of sales) compared to $11,977,551 (83.7% of sales) for the
comparable period ended June 30, 1997. The increase of $12,850,567 in cost of
sales is primarily due to the Fleischli and Tri-Valley acquisitions offset by
a lower price for the Company's purchases.
The Company's gross profit for the three months ended June 30, 1998, was
$4,747,132 compared to $2,330,173 for the comparable period ended June 30,
1997. The increase of $2,416,959 is primarily related to the Fleischli and
Tri-Valley acquisitions and an increase in fuel margins due primarily to lower
prices on products sold at set per gallon prices over cost. Fuel margins are
dictated by competition in a given area and the Company has limited control
over such margins.
11
<PAGE>
<PAGE>
The Company's selling, general and administrative expenses were $3,660,220 for
the three months ended June 30, 1998, compared to $2,028,835 for the
comparable period ended June 30, 1997. Even though the Company has cut
expenses at the subsidiary levels, total expenses have increased due to the
Fleischli and Tri-Valley acquisitions.
The Company's depreciation and amortization for the three months ended June
30, 1998, was $344,129 compared to $219,516 for the comparable period ended
June 30, 1997. The increase is primarily due to the Fleischli and Tri-Valley
acquisitions.
The Company's other income (expense) for the three months ended June 30, 1998
was $(104,050) compared to $86,150 for the comparable period ended June 30,
1997. The decrease is related to an increase in interest expense in 1998 due
to the Fleischli and Tri-Valley acquisitions.
The Company's provision for income taxes for the three months ended June 30,
1998, was $235,054 compared to $65,509 for the comparable period ended June
30, 1997. This increase is due to more taxable income.
The Company's net income for the three months ended June 30, 1998, was
$292,703 compared to $2,033 in the prior period. The change in net income is
due to the above described items.
COMPARISON OF THE SIX MONTHS ENDED JUNE 30, 1998 TO JUNE 30, 1997
The Company's sales for the six months ended June 30, 1998, were $56,399,697
compared to $28,160,264 for the comparable period ending June 30, 1997. The
increase in revenue of $28,239,433 is primarily related to the Fleischli and
Tri-Valley acquisitions offset by lower prices for the Company's products.
The Company's cost of sales for the six months ended June 30, 1998, were
$46,913,106 (83.2% of sales) compared to $23,606,022 (83.8% of sales) for the
comparable period ended June 30, 1997. The increase of $23,307,084 in cost of
sales is primarily due to the Fleischli and Tri-Valley acquisitions offset by
a lower price for the Company's purchases.
The Company's gross profit for the six months ended June 30, 1998, was
$9,486,591 compared to $4,554,242 for the comparable period ended June 30,
1997. The increase of $4,932,349 is primarily related to the Fleischli and
Tri-Valley acquisitions and an increase in fuel margins due primarily to lower
prices on products sold at set per gallon prices over cost. Fuel margins are
dictated by competition in a given area and the Company has limited control
over such margins.
The Company's selling, general and administrative expenses were $7,344,784 for
the six months ended June 30, 1998, compared to $4,001,287 for the comparable
period ended June 30, 1997. Even though the Company has cut expenses at the
subsidiary levels, total expenses have increased due to the Fleischli and
Tri-Valley acquisitions.
The Company's depreciation and amortization for the six months ended June 30,
1998, was $648,406 compared to $439,031 for the comparable period ended June
30, 1997. The increase is primarily due to the Fleischli and Tri-Valley
acquisitions.
12
<PAGE>
<PAGE>
The Company's other income (expense) for the six months ended June 30, 1998
was $(246,776) compared to $570,745 for the comparable period ended June 30,
1997. The decrease is primarily related to a settlement of litigation for
$480,000, net of expenses in 1997 and an increase in interest expense in 1998
due to the Fleischli and Tri-Valley acquisitions.
The Company's provision for income taxes for the six months ended June 30,
1998, was $458,758 compared to $267,021 for the comparable period ended June
30, 1997. This increase is due to more taxable income.
The Company's net income for the six months ended June 30, 1998, was $565,915
compared to $216,788 in the prior period. The change in net income is due to
the above described items.
13
<PAGE>
<PAGE>
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.
Item 5. Other Information.
None.
Item 6. Exhibits and Reports on Form 8-K.
(a) Exhibit 27 Financial Data Schedule Filed herewith
electronically
(b) Reports on May 29,1998, Acquisition Filed previously
Form 8-K. of Tri-Valley Gas Co. electronically
14
<PAGE>
<PAGE>
SIGNATURES
In accordance with the requirements of the Exchange Act, the Issuer caused
this Report to be signed on its behalf by the undersigned, thereunto duly
authorized.
METEOR INDUSTRIES, INC.
By:/s/ Dennis R. Staal
Dennis R. Staal, Treasurer(Chief
Financial and Accounting Officer)
Dated: August 14, 1998
15
<PAGE>
<PAGE>
EXHIBIT INDEX
EXHIBIT METHOD OF FILING
- ------- -----------------------------
27. FINANCIAL DATA SCHEDULE Filed herewith electronically
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
This schedule contains summary financial information extracted from the
consolidated balance sheets and consolidated statements of operations found on
pages 3, 4 and 5 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>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-END> JUN-30-1998
<CASH> 1,134,016
<SECURITIES> 0
<RECEIVABLES> 8,459,024
<ALLOWANCES> (345,294)
<INVENTORY> 3,849,663
<CURRENT-ASSETS> 13,873,889
<PP&E> 19,791,125
<DEPRECIATION> (2,405,485)
<TOTAL-ASSETS> 35,278,304
<CURRENT-LIABILITIES> 12,559,548
<BONDS> 0
<COMMON> 4,130
0
0
<OTHER-SE> 7,692,472
<TOTAL-LIABILITY-AND-EQUITY> 35,278,304
<SALES> 56,399,697
<TOTAL-REVENUES> 56,399,697
<CGS> 46,913,106
<TOTAL-COSTS> 7,993,190
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 332,461
<INCOME-PRETAX> 1,024,673
<INCOME-TAX> 458,758
<INCOME-CONTINUING> 565,915
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 565,915
<EPS-PRIMARY> .14
<EPS-DILUTED> .13
</TABLE>
