-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, PYbc9Ps4e36dFnwawvPsWnGstcyGeh9nftvdSAk7inhrA8igCWdCdoRxBka5cqzB KEpr5gum/r3qUDRJS478ww== 0000914760-97-000098.txt : 19970514 0000914760-97-000098.hdr.sgml : 19970514 ACCESSION NUMBER: 0000914760-97-000098 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19970331 FILED AS OF DATE: 19970513 SROS: NASD FILER: COMPANY DATA: COMPANY CONFORMED NAME: MAYNARD OIL CO CENTRAL INDEX KEY: 0000063528 STANDARD INDUSTRIAL CLASSIFICATION: CRUDE PETROLEUM & NATURAL GAS [1311] IRS NUMBER: 751362284 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 000-05704 FILM NUMBER: 97601777 BUSINESS ADDRESS: STREET 1: 8080 N CENTRAL EXPWY STE 660 CITY: DALLAS STATE: TX ZIP: 75206 BUSINESS PHONE: 2148918880 MAIL ADDRESS: STREET 1: 8080 N CENTRAL EXPWY STE 660 CITY: DALLAS STATE: TX ZIP: 75206 FORMER COMPANY: FORMER CONFORMED NAME: HOMA OIL & GAS CO DATE OF NAME CHANGE: 19710902 10-Q 1 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 Quarter Ending March 31, 1997 Commission File #0-5704 MAYNARD OIL COMPANY (Exact name of registrant as specified in its charter) Delaware 75-1362284 (State or other jurisdic- (IRS Employer tion of incorporation) Identification No.) 8080 N. Central Expressway, Suite 660, Dallas, Texas 75206 Registrant's telephone number, including area code: (214) 891-8880 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, 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 May 8, 1997. 4,889,450 shares of common stock, par value $0.10 MAYNARD OIL COMPANY AND SUBSIDIARIES Index to Consolidated Financial Statements and Schedules Page Part I. Financial Information Consolidated Balance Sheets March 31, 1997 and December 31, 1996 Consolidated Statements of Operations Three Months ended March 31, 1997 and 1996 Consolidated Statements of Shareholders' Equity Three Months ended March 31, 1997 Consolidated Statements of Cash Flows Three Months ended March 31, 1997 and 1996 Notes to Consolidated Financial Statements Management's Discussion and Analysis of Financial Condition and Results of Operations Signatures MAYNARD OIL COMPANY AND SUBSIDIARIES Consolidated Balance Sheets
March 31, December 31, 1997 1996 (Unaudited) (Audited) ASSETS Current assets: Cash and cash equivalents $ 21,982,466 $ 21,817,447 Accounts receivable, trade 3,471,472 4,274,439 Other current assets 532,271 585,021 Total current assets 25,986,209 26,676,907 Property and equipment, at cost: Oil and gas properties, successful efforts method 103,945,472 103,223,604 Other property and equipment 527,110 540,736 104,472,582 103,764,340 Less accumulated depreciation and amortization (50,869,627) (49,183,946) Net property and equipment 53,602,955 54,580,394 $ 79,589,164 $ 81,257,301 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Current installments of long-term debt $ 5,000,000 $ 5,000,000 Accounts payable 3,201,204 3,592,404 Accrued expenses 1,926,158 1,710,681 Income taxes payable 940,235 3,431,476 Total current liabilities 11,067,597 13,734,561 Deferred income taxes 2,354,000 2,219,000 Long-term debt 15,000,000 16,250,000 Shareholders' equity: Preferred stock of $.50 par value. Authorized 1,000,000 shares; none issued -- -- Common stock of $.10 par value. Authorized 20,000,000 shares; 4,889,450 shares issued and outstanding 488,945 488,945 Additional paid-in capital 18,831,138 18,831,138 Retained earnings 31,847,484 29,733,657 Total shareholders' equity 51,167,567 49,053,740 Contingencies and commitments $ 79,589,164 $ 81,257,301 See accompanying Notes to Consolidated Financial Statements.
MAYNARD OIL COMPANY AND SUBSIDIARIES Consolidated Statement of Operations
Three Months ended March 31, 1997 1996 Revenues: Oil and gas sales $7,769,413 $7,266,765 Interest and other 272,431 64,316 Gain on sale of assets 2,032 661 8,043,876 7,331,742 Costs and expenses: Operating expenses 2,452,077 2,471,241 Exploration, dry holes and abandonments 74,248 100,748 General and administrative 317,198 256,487 Depreciation and amortization 1,700,000 2,425,774 Interest 351,526 454,038 4,895,049 5,708,288 Income before income taxes 3,148,827 1,623,454 Income tax expense 1,035,000 480,000 Net income $2,113,827 $1,143,454 Weighted average number of common shares outstanding 4,889,450 4,889,951 Net income per common share $ .43 $ .23
MAYNARD OIL COMPANY AND SUBSIDIARIES Consolidated Statements of Shareholders' Equity Three Months Ended March 31, 1997 (Unaudited)
Additional Common Stock Paid-in Capital Retained Shares Amount Amount Earnings Total Balance at December 31, 1996 4,889,450 $488,945 $18,831,138 $29,733,657 $49,053,740 Net income -- -- -- 2,113,827 2,113,827 Balance at March 31, 1997 4,889,450 $488,945 $18,831,138 $31,847,484 $51,167,567 See accompanying Notes to Consolidated Financial Statements.
MAYNARD OIL COMPANY AND SUBSIDIARIES Consolidated Statements of Cash Flows
Three Months Ended March 31, 1997 1996 Cash flows from operating activities: Net income $2,113,827 $1,143,454 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 1,700,000 2,425,774 Deferred income taxes 135,000 80,000 Exploration, dry holes and abandonments -- 95,627 Current year costs of dry holes and abandonments -- (5,918) (Gain) on sale of assets (2,032) (661) (Increase) decrease in current assets: Accounts receivable 802,967 (856,088) Prepaid expenses and other current assets 52,750 25,815 Increase (decrease) in current liabilities: Accounts payable (391,200) (27,486) Accrued expenses 215,477 232,939 Income taxes payable (2,491,241) 42,000 Net cash provided by operating activities 2,135,548 3,155,456 Cash flows from investing activities: Proceeds from disposition of assets 2,032 10,031 Additions to property and equipment (722,561) (507,613) Net cash used by investing activities (720,529) (497,582) Cash flows from financing activities: Principal payments on long-term debt (1,250,000) (1,062,500) Purchase of common stock -- (763) Net cash used by financing activities (1,250,000) (1,063,263) Net increase in cash and cash equivalents 165,019 1,594,611 Cash and cash equivalents at beginning of year 21,817,447 6,138,903 Cash and cash equivalents at end of period $21,982,466 $ 7,733,514 See Accompanying Notes to Consolidated Financial Statements.
MAYNARD OIL COMPANY AND SUBSIDIARIES Notes to Consolidated Financial Statements March 31, 1997 1. In the opinion of management, the accompanying unaudited consolidated financial statements contain all adjustments, consisting of all recurring adjustments, necessary to present fairly the Company's financial position as of March 31, 1997 and December 31, 1996, the results of operations for the three months ended March 31, 1997 and 1996 and changes in cash and cash equivalents for the three months ended March 31, 1997 and 1996. The accounting policies followed by the Company are set forth in Note 1 to the Company's financial statements in the 1996 Annual Report to Shareholders. 2. Net income for the three months ended March 31, 1997 is not necessarily indicative of the results of the operations of Maynard Oil Company and Subsidiaries for the year ending December 31, 1997, and is subject to audit adjustments at year-end. 3. Net income per common share is based on the weighted average number of shares outstanding in each period, which was 4,889,450 and 4,889,951 shares at March 31, 1997 and 1996, respectively. 4. The provision for income taxes consists of the following (thousands of dollars): Three Months Ended March 31 ------------------ 1997 1996 Federal: Current $ 900 $ 400 Deferred 135 80 ------ ----- $1,035 $ 480 MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS Quarter Ended March 31, 1997 Compared to Quarter Ended March 31, 1996 The Company reported net income of $2,113,827, or forty-three cents per share, on revenues of $8,043,876 for the quarter ended March 31, 1997 compared with net income of $1,143,454, or twenty-three cents per share, on revenues of $7,331,742 for the same quarter a year ago. Results for the first quarter of 1997 were favorably impacted by product pricing which more than offset volumes lost when the Company sold certain nonstrategic properties in 1996. Oil volumes decreased 43,678 barrels between the first quarters of 1996 and 1997, and gas volumes declined 315,667 mcf (thousand cubic feet) over the same period. On the other hand, the price of oil averaged $22.72 per barrel during the current quarter compared to an average of $18.51 over the same period in 1996; gas prices also improved over the periods presented rising from an average of $1.85 a year ago to $3.43 during the current quarter. As mentioned in the Company s 1996 Annual Report to Shareholders, the Company does not believe that these higher product prices can be sustained over an extended period of time. Interest income more than quadrupled from the first quarter of 1996 as the Company allowed its cash balance to grow in anticipation of an acquisition of producing properties. First quarter 1997 results also improved because costs and expenses netted less than the amounts incurred in the 1996 quarter. In the category titled Exploration, dry holes and abandonments , the dollar amount expended declined 26%. The Company drilled no exploratory dry holes during the first quarter of 1997, but did spend $74,248 on seismic opportunities. General and administrative expenses rose 24% between the two quarters presented, primarily due to last year s property sales. Overhead charges billed to working interest owners are classified as a reduction of general and administrative expenses. Certain properties which were sold had overhead reimbursement charges attached to them; after the effective date of the sale, the Company can no longer charge out these amounts. Depreciation and amortization expense declined 30% between the first quarter of 1996 and the first quarter of 1997 due to lower production volumes. Interest expense decreased 23% between the prior year s quarter and the current quarter because of scheduled debt payments. Liquidity and Capital Resources The Company ended the first quarter of 1997 with working capital of approximately $14,918,000 and a current ratio of 2.3 to 1, compared to working capital of approximately $1,620,000 and a current ratio of 1.2 to 1 a year ago. The increase in working capital between the current quarter and a year ago, $13,298,000, is related to the sale of non-strategic properties in 1996 for cash of approximately $8,800,000 and a buildup in excess cash as it is generated from normal operating activities. At March 31, 1997 the Company's total debt was $20,000,000. The Company believes that it has sufficient cash being generated from operating activities, or additional borrowing capacity, to fund its planned development, exploratory and acquisition activities. PART II ITEM 6: EXHIBITS AND REPORTS ON FORM 8-K (a) Financial Data Schedule. (b) No reports on Form 8-K were filed during the quarter. SIGNATURES 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. MAYNARD OIL COMPANY By: /s/ Glenn R. Moore --------------------------- Glenn R. Moore President By: /s/ Kenneth W. Hatcher --------------------------- Kenneth W. Hatcher Vice President of Finance Dated: May 8, 1997 EX-27 2
5 3-MOS DEC-31-1997 MAR-31-1997 21,982 0 3,521 50 0 25,986 104,473 50,870 79,589 11,068 0 0 0 489 50,678 79,589 7,769 8,044 2,452 4,895 0 0 352 3,149 1,035 2,114 0 0 0 2,114 0.43 0.43
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