QUARTERLY REPORT FOR 12/03 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 December 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 12/03 HYNES & HOWES INSURANCE COUNSELORS, INC. Notes to Financial Statements December 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 three months ended December 31, 2003 increased $11,484 as compared to the three month period ended 	 December 31, 2002. EX-99.2 OTHER INFORMATION FOR 12/03 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 12/03 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 12/03 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:_____________________________________ Jenni Burkhart, Secretary EX-99.5 COMPUTATION OF EPS FOR 12/03 HYNES & HOWES INSURANCE COUNSELORS, INC. Computation of Earnings (Loss) Per Common Share For the Three Months Ended December 31, 2003 and 2002 (Unaudited) Three Months Ended Dec 31, 2003 2002 Common Shares Outstanding: Beginning of Period 11,226,669 11,226,699 End of Period 11,226,669 11,226,699 Average Number of Shares Outstanding for the Period 11,226,669 11,226,699 Net Income (Loss) $ (13,326) $ (24,810) Earnings (Loss) Per Common Share: Net Income $ 0.00 $ 0.00 EX-99.6 BALANCE SHEET FOR 12/03 HYNES & HOWES INSURANCE COUNSELORS, INC. Balance Sheet Dec 31, 2003 and 2002 (Unaudited) Dec 31, 2003 2002 Assets Current Assets: Cash in Bank $ 12,322 $ 8,647 Other Current Assets 40,693 8,439 Total Current Assets $ 53,015 $ 17,086 Investments: Investment in Affiliated Company $ 0 $ 0 Contracts Receivable-Real Estate 657,396 715,102 Real Estate on Hand 0 0 Equipment 6,134 9,706 Total Investments $ 663,530 $ 724,808 Total Assets $ 716,545 $ 741,894 Liabilities and Stockholders' Equity Current Liabilities: Buyers Escrow $ 8,118 $ 6,423 Contracts Payable 0 0 Total Current Liabilities $ 8,118 $ 6,423 Long Term Liabilities: Contracts Payable 0 0 Total Long Term Liabilities	 $ 0 $ 0 Total Liabilities $ 8,118 $ 6,423 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) (3,039,186) (3,012,142) Treasury Stock, at cost (33,252) (33,252) Total Stockholders' Equity $ 708,427 $ 735,471 Total Liabilities and Stockholders' Equity $ 716,545 $ 741,894 EX-99.7 STATEMENT OF OPERATIONS FOR 12/03 HYNES & HOWES INSURANCE COUNSELORS, INC. Statement of Operations For the Three Months Ended Dec 31, 2003 and 2002 (Unaudited) The following Statements of Operations of Hynes & Howes Insurance Counselors, Inc. for the three months ended Dec 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 Dec 30, 2003 2002 Operating Income: Interest $17,764 $19,298 Other Income ( 674) (13,002) Total Operating Income $17,090 $ 6,296 Operating Expenses: Management Fees 12,000 12,000 Legal and Audit 7,794 7,104 Other Operating Expenses 10,622 12,002 Total Operating Expenses $30,416 $31,106 Income (Loss) from Operations(13,326) (24,810) Provision for Income Taxes$ 0 $ 0 Net Income (Loss) (13,326) (24,810) Earnings Per Common Share $ 0 $ 0 Dividends per Common Share $ 0 $ 0 EX-99.8 STATEMENT OF CASH FLOW FOR 12/03 HYNES & HOWES INSURANCE COUNSELORS, INC. Statement of Cash Flow For the Three Months Ended Dec 31, 2003 and 2002 Increase (Decrease) in Cash and Cash Equivalents (Unaudited) Three Months Ended Dec 31, 2003 2002 Cash Flows from Operating Activities: Interest Received $ 17,764 $ 19,298 Other Income Received (674) 852 Legal, Audit and Management Fees Paid (19,794) (19,104) Cash Paid to Suppliers for Operating Expenses (9,901) (11,367) Net Cash Provided (Used) by Operating Activities $ (12,605) $ (10,321) Cash Flow from Investing Activities: Principal Collected on Real Estate Contracts 44,381 3,951 Advances to Affiliates (2,981) 0 Purchase of Real Estate Contracts 0 0 Buyers Escrow Received (Paid) 3,022 3,119 Tax Certificates Collected (Purchased) (1,337) (1,189) Principal Paid on Contract Payable 0 (8,157) Net Cash Provided (Used) by Investing Activities $ 24,085 $ (2,276) Cash Flow from Financing Activities: Purchase of Equipment $ 0 $ 0 Net Cash Provided (Used) by Financing Activities $ 0 $ 0 Net Increase (Decrease) in Cash and Cash Equivalents $ 11,480 $ (12,597) Cash & Cash Equivalents at Beginning of Period $ 842 $ 21,244 Cash and Cash Equivalents at End of Period $ 12,322 $ 8,647 EX-27 ART. 5 FDS FOR 12/31/03 PERIOD-TYPE 3-months FISCAL-YEAR-END SEP-30-2004 PERIOD-END DEC-31-2003 CASH 12,322 SECURITIES 0 RECEIVABLES 657,396 ALLOWANCES 0 REAL ESTATE					 0 CURRENT-ASSETS 40,693 PP&E 19,330 DEPRECIATION 13,196 TOTAL-ASSETS 716,545 CURRENT-LIABILITIES 8,118 BONDS 0 PREFERRED-MANDATORY 0 PREFERRED 0 COMMON 3,780,765 OTHER-SE 100 TOTAL-LIABILITY-AND-EQUITY 716,545 SALES 0 TOTAL-REVENUES 17,090 CGS 0 TOTAL-COSTS 30,416 OTHER-EXPENSES 0 LOSS-PROVISION 0 INTEREST-EXPENSE 0 INCOME-PRETAX (13,326) INCOME-TAX 0 INCOME-CONTINUING 0 DISCONTINUED 0 EXTRAORDINARY 0 CHANGES 0 NET-INCOME (13,326) EPS-PRIMARY 0 EPS-DILUTED 0