FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
Quarterly Report Under Section 13 or 15(d)
of the Securities Exchange Act of 1934
For Quarter Ended June 30, 1999 Commission File No. 0-1587
GNC ENERGY CORPORATION
(Exact name of registrant as specified in its charter)
DELAWARE 75-1050549
(State or other jurisdiction of (I.R.S. Employer Identification No.)
incorporation or organization)
8235 Douglas Ave., Suite 210, Dallas, Texas 75225
(address of principal executive offices and zip code)
(214) 691-9436
(Registrant's telephone number, including area code)
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 (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__X__ No_____
Indicate the number of shares outstanding of each of the issuer's
classes of common stock, as of the latest practicable date.
Outstanding at
Class June 30, 1999
Common Stock, $0.40 par value 5,203,706
GNC ENERGY CORPORATION
INDEX
Part I Financial Information: Page No.
Consolidated Balance Sheets - June 30, 1999
and March 31, 1999....................................... 3
Consolidated Statement of Operations - Three Months
Ended June 30, 1999 and June 30, 1998.................... 5
Consolidated Statement of Changes in Stockholders'
Equity, (Deficit) - Three Months Ended June 30, 1999..... 6
Condensed Consolidated Statements of Changes in
Financial Position - Three Months Ended June 30, 1999.... 7
Notes to Consolidated Financial Statements.................... 8
Management's Discussion and Analysis of Financial
Condition and Results of Operations...................... 9
Part II Other Information:
Item 6. Exhibits and Reports on Form 8-K..................... 10
(2)
PART I: FINANCIAL INFORMATION
GNC ENERGY CORPORATION
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
ASSETS
June 30, March 31,
1999 1999
Current Assets:
Cash $ - $ -
Prepaid Expenses 617 -
________- ___________-
Total current assets 617 -
Property, plant and equipment
at cost, substantially pledged:
Oil and gas 186,406 186,406
Tar sands - -
186,406 186,406
Less accumulated depreciation,
depletion and amortization (186,206) (186,191)
200 215
$ 817 $ 215
See accompanying notes.
(3)
GNC ENERGY CORPORATION
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
LIABILITIES AND STOCKHOLDERS' EQUITY
June 30, March 31,
1999 1999
Current liabilities:
Accounts payable $ 3,052,864 $ 3,048,615
Accrued expenses 2,011,726 2,011,738
Accrued interest expense 1,925,435 1,890,243
Total current liabilities $ 6,990,025 $ 6,950,596
Stockholders' equity (deficit):
Common stock, $.40 par value
Authorized - 10,000,000 shares
Issued and outstanding - 5,203,706 2,081,482 2,081,482
Capital in excess of par value 17,000,421 17,000,421
Accumulated deficit (26,071,111) (26,032,284)
Total Stockholders' Equity ( 6,989,208) ( 6,950,381)
Total Liabilities and Equity $ 817 $ 215
See accompanying notes.
(4)
GNC ENERGY CORPORATION
CONSOLIDATED STATEMENT OF OPERATIONS
(UNAUDITED)
Three Months Ended Three Months Ended
June 30, 1999 June 30, 1998
Oil & Gas Revenues $ 1,969 $ 3,843
Administrative Overhead Fees - -
1,969 3,843
Cost and expenses:
Cost of sales 3,161 3,122
General and administrative 2,377 5,805
Depreciation, depletion, and
amortization 15 -
5,553 8,927
Loss from operations ( 3,584) ( 5,084)
Other Income
Accounting Fees - 1,000
Extraordinary Income - -
Other Expenses
Other - -
Interest, net 35,193 35,892
Extraordinary Loss - -
Taxes - General 50 50
Other Income before taxes ( 35,243) ( 34,942)
Net loss $ ( 38,827) $ ( 40,026)
Earnings(Loss) per share $ (0.01) $ (0.01)
See accompanying notes.
(5)
GNC ENERGY CORPORATION
CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY (DEFICIT)
(UNAUDITED)
Capital in
Common Stock excess of Accumulated
Shares Amount par value deficit
Balance at
3-31-99 5,203,706 $2,081,482 $17,000,421 $(26,032,284)
Other adjustment -
Net profit ( 38,827)
Balance at
6-30-99 5,203,706 $2,081,482 $17,000,421 $(26,071,111)
See accompanying notes.
(6
GNC ENERGY CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN FINANCIAL POSITION
(UNAUDITED)
Three months ended
June 30, 1999 June 30, 1998
Financial resources were applied to:
Net loss before extraordinary items $ (38,827) $ ( 40,026)
Items not affecting working capital:
Depreciation, depletion, and
amortization 15 -
Working capital applied to operations (38,812) ( 40,026)
Financial resources were provided by:
Fixed Assets - -
Extraordinary items - -
Increase(decrease) in working capital $ ( 38,812) $ (40,026)
Changes in elements of working capital:
Cash $ - $ -
Prepaid Expenses 617 (1,000)
Accounts payable and accrued expenses (39,429) (39,026)
Increase(decrease) in working capital $ (38,812) $ (40,026)
See accompanying notes.
(7)
GNC ENERGY CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
1. In the opinion of the Company, the accompanying unaudited
consolidated financial statements contain all adjustments
(consisting of only normal recurring accruals) necessary to
present fairly the financial position as of June 30, 1999, and
March 31, 1999, and the consolidated results of operations and
changes in financial position indicated.
2. The results of operations for the three-month period ended June
30, 1999, are not necessarily indicative of the results to be
expected for the full year. For further information, refer to
the consolidated financial statements and footnotes thereto
included in the Company's Form 10-K for the year ended March 31,
1999.
(8)
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
FINANCIAL CONDITION
There is a negative stockholders' equity in the Corporation. We
are continuing to work with our creditors to attempt to achieve a plan
of reorganization without bankruptcy.
RESULTS OF OPERATIONS
Oil and Gas Operations - Oil and gas sales were minimal for the
three-month period ended June 30, 1999.
Income Taxes - No tax provisions were made for the three months
ended June 30, 1999, since the Company has unused deductions and tax
credits for income tax purposes.
(9)
PART II. OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K
There were no reports on Form 8-K filed for the three months
ended June 30, 1999.
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.
GNC ENERGY CORPORATION
By:_s/W. H. Hudson
Date: July 28, 1999 W. H. Hudson
President and
Chief Financial Officer
(10)