QUARTERLY REPORT FOR 03/03 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, 2003 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 03/03 HYNES & HOWES INSURANCE COUNSELORS, INC. Notes to Financial Statements March 31, 2003 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, 2003 decreased $28,899 as compared to the six month period ended March 31, 2002. EX-99.2 OTHER INFORMATION FOR 03/03 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 03/03 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 03/03 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:_____________________________________ Sharon L. Miller, President This corporation has no treasurer. Dated___________________ By:_____________________________________ Kendra Jeffries, Secretary EX-99.5 COMPUTATION OF EPS FOR 03/03 HYNES & HOWES INSURANCE COUNSELORS, INC. Computation of Earnings (Loss) Per Common Share For the Six Months Ended March 31, 2003 and 2002 (Unaudited) Three Months Ended Six Months Ended March 31, March 31, 2003 2002 2003 2002 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) 365 6,615 (24,445) 4,453 Earnings (Loss) Per Common Share: Net Income $ 0.00 $ 0.00 $ 0.00 $ 0.00 EX-99.6 BALANCE SHEET FOR 03/03 HYNES & HOWES INSURANCE COUNSELORS, INC. Balance Sheet March 31, 2003 and 2002 (Unaudited) March 31, 2003 2002 Assets Current Assets: Cash in Bank $ 55,010 $ 16,276 Other Current Assets 7,624 5,651 Total Current Assets $ 62,634 $ 21,927 Investments: Investment in Affiliated Company $ 0 $ 3,271 Contracts Receivable-Real Estate 663,849 715,674 Real Estate on Hand 5,550 37,986 Equipment 8,756 9,389 Total Investments $ 678,155 $ 766,320 Total Assets $ 740,789 $ 788,247 Liabilities and Stockholders' Equity Current Liabilities: Buyers Escrow $ 4,953 $ 5,413 Contracts Payable 0 4,445 Total Current Liabilities $ 4,953 $ 9,858 Long Term Liabilities: Contracts Payable $ 0 $ 5,990 Total Long Term Liabilities $ 0 $ 5,990 Total Liabilities $ 4,953 $ 15,848 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) (3,011,777) (2,975,214) Treasury Stock, at cost (33,252) (33,252) Total Stockholders' Equity $ 735,836 $ 772,399 Total Liabilities and Stockholders' Equity $ 740,789 $ 788,247 EX-99.7 STATEMENT OF OPERATIONS FOR 03/03 HYNES & HOWES INSURANCE COUNSELORS, INC. Statement of Operations For the Six Months Ended March 31, 2003 and 2002 (Unaudited) The following Statements of Operations of Hynes & Howes Insurance Counselors, Inc. for the six months ended March 31, 2003 and 2002, 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, 2003 2002 2003 2002 Operating Income: Interest $22,942 $ 22,654 $42,240 $43,722 Other Income 1,051 720 (11,951) 1,388 Total Operating Income $23,993 $ 23,374 $30,289 $45,110 Operating Expenses: Management Fees $12,000 $ 12,000 $24,000 $24,000 Legal and Audit 876 275 7,980 6,725 Other Operating Expenses 10,752 4,484 22,754 9,932 Total Operating Expenses$23,628 $ 16,759 $54,734 $40,657 Income(Loss)from Operations $ 365 $ 6,615 $(24,445) $ 4,453 Provision for Income Taxes 0 0 0 0 Net Income (Loss) $ 365 $ 6,615 $(24,445) $ 4,453 Earnings Per Common Share $ 0 $ 0 $ 0 $ 0 Dividends per Common Share $ 0 $ 0 $ 0 $ 0 EX-99.8 STATEMENT OF CASH FLOW FOR 03/03 HYNES & HOWES INSURANCE COUNSELORS, INC. Statement of Cash Flow For the Six Months Ended March 31, 2003 and 2002 Increase (Decrease) in Cash and Cash Equivalents (Unaudited) Six Months Ended March 31, 2003 2002 Cash Flows from Operating Activities: Interest Received $ 42,240 $ 43,722 Other Income Received 1,901 1,388 Legal, Audit and Management Fees Paid (31,980) (30,725) Cash Paid to Suppliers for Operating Expenses (21,169) ( 7,890) Net Cash Provided (Used) by Operating Activities $ ( 9,008) $ 6,495 Cash Flow from Financing Activities: Purchase of Equipment $ 0 0 Net Cash Provided (Used) by Financing Activities $ 0 0 Cash Flow from Investing Activities: Principal Collected on Real Estate Contracts $ 55,207 95,792 Purchase of Real Estate Contracts 0 (150,529) Buyers Escrow Received 1,649 (2,820) Tax Certificates Collected (Purchased) (374) (279) Principal Reduction on Contracts Payable (8,157) (1,101) Purchase of real estate (5,550) (37,986) Net Cash Provided (Used) by Investing Activities $ 42,775 $ (96,923) Net Increase (Decrease) in Cash and Cash Equivalents $ 33,767 $ (90,428) Cash & Cash Equivalents at Beginning of Period $ 21,244 $ 106,704 Cash and Cash Equivalents at End of Period $ 55,011 $ 16,276 EX-27 ART. 5 FDS FOR 03/31/03 PERIOD-TYPE 6-MOS FISCAL-YEAR-END SEP-30-2003 PERIOD-END MAR-31-2003 CASH 55,010 SECURITIES 0 RECEIVABLES 663,849 ALLOWANCES 0 INVENTORY 0 CURRENT-ASSETS 7,624 REAL ESTATE 5,550 PP&E 19,330 DEPRECIATION 10,574 TOTAL-ASSETS 740,789 CURRENT-LIABILITIES 4,953 LONG-LIABILITIES 0 BONDS 0 PREFERRED-MANDATORY 0 PREFERRED 0 COMMON 3,780,765 OTHER-SE 100 TOTAL-LIABILITY-AND-EQUITY 740,789 SALES 0 TOTAL-REVENUES 30,289 CGS 0 TOTAL-COSTS 54,734 OTHER-EXPENSES 0 LOSS-PROVISION 0 INTEREST-EXPENSE 0 INCOME-PRETAX (24,445) INCOME-TAX 0 INCOME-CONTINUING 0 DISCONTINUED 0 EXTRAORDINARY 0 CHANGES 0 NET-INCOME (24,445) EPS-PRIMARY 0 EPS-DILUTED 0