QUARTERLY REPORT FOR 03/02
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D. C. 20549
FORM 10-Q
QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
FOR QUARTER ENDED March 31, 2002 Commission file number 0-7376
Hynes & Howes Insurance Counselors, Inc.
(Exact name of registrant as specified on its charter)
Iowa 42-0948341
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
2920 Harrison St., Davenport, Iowa 52803
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (563) 326-6401
Indicate by check mark whether the registrant (1) has filed all annual,
quarterly and other reports required to be filed with the Commission and (2)
has been subject to the filing requirements for
at least the past 90 days. Yes XX No .
Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the close of the period covered by this report.
11,226,699
EX-99.1
NOTES TO FINANCIAL STATEMENTS FOR 03/02
HYNES & HOWES INSURANCE COUNSELORS, INC.
Notes to Financial Statements
March 31, 2002
Note 1. Filing of Forms 8-K
A form 8-K was not required to be filed for the quarter reporting
any unusual charges or credits to the income or change in auditors.
Note 2. Management's Analysis of Income From Operations
Income from operations for the six months ended March 31, 2002
increased $14,277 as compared to the six month period ended
March 31, 2001. Interest income increased $6,393, legal and audit
decreased $2,188 and other operating expenses decreased $5,620.
EX-99.2
OTHER INFORMATION FOR 03/02
HYNES & HOWES INSURANCE COUNSELORS, INC.
Part II: Other information
There were no events during this quarter that would be reportable
under the Items 1 through 8 of the Form 10-Q for Registrant.
Item 9. Exhibits and Reports on Form 8-K
There were no 8-K's filed during the quarter for which this report is
filed.
EX-99.3
REGULATION S-X FOR 03/02
Regulation S-X, Section 10-01 (b) (8)
This interim financial statement reflects all adjustments which
are, in the opinion of management, necessary to a fair statement
of the results for the interim period. The corporation has
no bonus or profit sharing arrangements to be settled at year-end.
EX-99.4
SIGNATURES FOR 03/02
SIGNATURES
Pursuant to the requirements of the Securities Act of 1934, the Registrant
has duly caused this report to be signed on its behalf by the undersigned
thereunto duly authorized.
HYNES & HOWES INSURANCE COUNSELORS, INC.
By:_____________________________________
Paul A. Coe, President
This corporation has no treasurer.
Dated___________________ By:_____________________________________
Kendra Jeffries, Secretary
EX-99.5
COMPUTATION OF EPS FOR 03/02
HYNES & HOWES INSURANCE COUNSELORS, INC.
Computation of Earnings (Loss) Per Common Share
For the Six Months Ended March 31, 2002 and 2001
(Unaudited)
Three Months Ended Six Months Ended
March 31, March 31,
2002 2001 2002 2001
Common Shares Outstanding:
Beginning of Period 11,226,699 11,226,699 11,226,699 11,226,699
End of Period 11,226,699 11,226,699 11,226,699 11,226,699
Average Number of Shares
Outstanding for the Period 11,226,699 11,226,699 11,226,699 11,226,699
Net Income (Loss) $ 6,615 $ (11,157) $ 4,453 $ (9,824)
Earnings (Loss) Per Common Share:
Net Income $ 0.00 $ 0.00 $ 0.00 $ 0.00
EX-99.6
BALANCE SHEET FOR 03/02
HYNES & HOWES INSURANCE COUNSELORS, INC.
Balance Sheet
March 31, 2002 and 2001
(Unaudited)
March 31,
2002 2001
Assets
Current Assets:
Cash in Bank $ 16,276 $ 13,646
Other Current Assets 5,651 7,273
Total Current Assets $ 21,927 $ 20,919
Investments:
Investment in Affiliated Company $ 3,271 $ 2,850
Contracts Receivable-Real Estate 715,674 665,454
Real Estate on Hand 37,986 34,484
Equipment 9,389 12,298
Total Investments $ 766,320 $ 715,086
Total Assets $ 788,247 $ 736,005
Liabilities and Stockholders' Equity
Current Liabilities:
Buyers Escrow $ 5,413 $ 5,996
Contracts Payable 4,445 3,713
Total Current Liabilities $ 9,858 $ 9,709
Long Term Liabilities:
Contracts Payable $ 5,990 $ 10,981
Total Long Term Liabilities $ 5,990 $ 10,981
Total Liabilities $ 15,848 $ 20,690
Stockholders' Equity:
Capital Stock, no par value, 100,000,000 shares
authorized, 11,260,675 shares issued $ 3,780,765 $ 3,780,765
Paid in Capital 100 100
Retained Earnings (Deficit) (2,975,214) (3,032,298)
Treasury Stock, at cost (33,252) (33,252)
Total Stockholders' Equity $ 772,399 $ 715,315
Total Liabilities and Stockholders'
Equity $ 788,247 $ 736,005
EX-99.7
STATEMENT OF OPERATIONS FOR 03/02
HYNES & HOWES INSURANCE COUNSELORS, INC.
Statement of Operations
For the Six Months Ended March 31, 2002 and 2001
(Unaudited)
The following Statements of Operations of Hynes & Howes Insurance Counselors,
Inc. for the six months ended March 31, 2002 and 2001, reflect, in the
opinion of the Company, all adjustments (which include only normal recurring
adjustments) necessary to present fairly the results of operations for such
periods. The results for interim periods are not necessarily indicative of
results to be expected for the year.
Three Months Ended Six Months Ended
March 31, March 31,
2002 2001 2002 2001
Operating Income:
Interest $22,654 $ 17,908 $43,722 $37,329
Other Income 720 622 1,388 1,211
Total Operating Income $23,374 $ 18,530 $45,110 $38,540
Operating Expenses:
Management Fees $12,000 $ 12,000 $24,000 $24,000
Legal and Audit 275 6,851 6,725 8,913
Other Operating Expenses 4,484 10,835 9,932 15,450
Total Operating Expenses$16,759 $ 29,686 $40,657 $48,363
Income(Loss)from Operations $ 6,615 $(11,156) $ 4,453 $(9,924)
Provision for Income Taxes 0 0 0 0
Net Income (Loss) $ 6,615 $(11,156) $ 4,453 $(9,924)
Earnings Per Common Share $ 0 $ 0 $ 0 $ 0
Dividends per Common Share $ 0 $ 0 $ 0 $ 0
EX-99.8
STATEMENT OF CASH FLOW FOR 03/02
HYNES & HOWES INSURANCE COUNSELORS, INC.
Statement of Cash Flow
For the Six Months Ended March 31, 2002 and 2001
Increase (Decrease) in Cash and Cash Equivalents
(Unaudited)
Six Months Ended
March 31,
2002 2001
Cash Flows from Operating Activities:
Interest Received $ 43,722 $ 37,329
Other Income Received 1,388 1,211
Legal, Audit and Management Fees Paid (30,725) (28,913)
Cash Paid to Suppliers for
Operating Expenses ( 7,890) (14,176)
Net Cash Provided (Used)
by Operating Activities $ 6,495 $ (4,549)
Cash Flow from Financing Activities:
Purchase of Equipment $ 0 (7,144)
Net Cash Provided (Used)
by Financing Activities $ 0 (7,144)
Cash Flow from Investing Activities:
Principal Collected on Real Estate
Contracts $ 95,792 63,058
Purchase of Real Estate Contracts (150,529) ( 47,812)
Buyers Escrow Received (2,820) (1,443)
Tax Certificates Collected (Purchased) (279) (715)
Principal Reduction on Contracts Payable (1,101) (1,966)
Purchase of real estate (37,986) (34,484)
Net Cash Provided (Used)
by Investing Activities $ (96,923) $ (23,362)
Net Increase (Decrease) in Cash
and Cash Equivalents $ (90,428) $ (35,055)
Cash & Cash Equivalents at
Beginning of Period $ 106,704 $ 48,701
Cash and Cash Equivalents at End of Period $ 16,276 $ 13,646
EX-27
ART. 5 FDS FOR 03/31/02
PERIOD-TYPE 6-MOS
FISCAL-YEAR-END SEP-30-2002
PERIOD-END MAR-31-2002
CASH 13,646
SECURITIES 2,850
RECEIVABLES 665,454
ALLOWANCES 0
INVENTORY 0
CURRENT-ASSETS 7,273
REAL ESTATE 34,484
PP&E 16,328
DEPRECIATION 4,030
TOTAL-ASSETS 736,005
CURRENT-LIABILITIES 9,709
LONG-LIABILITIES 10,981
BONDS 0
PREFERRED-MANDATORY 0
PREFERRED 0
COMMON 3,780,765
OTHER-SE 100
TOTAL-LIABILITY-AND-EQUITY 736,005
SALES 0
TOTAL-REVENUES 38,540
CGS 0
TOTAL-COSTS 48,363
OTHER-EXPENSES 0
LOSS-PROVISION 0
INTEREST-EXPENSE 0
INCOME-PRETAX (9,924)
INCOME-TAX 0
INCOME-CONTINUING 0
DISCONTINUED 0
EXTRAORDINARY 0
CHANGES 0
NET-INCOME (9,924)
EPS-PRIMARY 0
EPS-DILUTED 0