QUARTERLY REPORT FOR 03/06
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, 2006 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 03/06
HYNES & HOWES INSURANCE COUNSELORS, INC.
Notes to Financial Statements
March 31, 2006
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, 2006
increased $13,314 as compared to the six month period ended
March 31, 2005.
EX-99.2
OTHER INFORMATION FOR 03/06
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 03/06
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 03/06
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:_____________________________________
Joyce Whitt, President
This corporation has no treasurer.
Dated___________________ By:_____________________________________
Jennifer Burkhart, Secretary
EX-99.5
COMPUTATION OF EPS FOR 03/06
HYNES & HOWES INSURANCE COUNSELORS, INC.
Computation of Earnings (Loss) Per Common Share
For the Six Months Ended March 31, 2006 and 2005
(Unaudited)
Three Months Ended Six Months Ended
March 31, March 31,
2006 2005 2006 2005
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) (2,557) (2,972) (18,069) (31,883)
Earnings (Loss) Per Common Share:
Net Income $ 0.00 $ 0.00 $ 0.00 $ 0.00
EX-99.6
BALANCE SHEET FOR 03/06
HYNES & HOWES INSURANCE COUNSELORS, INC.
Balance Sheet
March 31, 2006 and 2005
(Unaudited)
March 31,
2006 2005
Assets
Current Assets:
Cash in Bank $ 27,336 $ 5,727
Other Current Assets 5,554 6,574
Total Current Assets $ 32,890 $ 12,301
Investments:
Contracts Receivable-Real Estate 600,233 638,728
Real Estate on Hand 0 43,383
Equipment 7,095 11,512
Total Investments $ 607,328 $ 693,623
Total Assets $ 640,218 $ 705,924
Liabilities and Stockholders' Equity
Current Liabilities:
Buyers Escrow $ 4,486 $ 8,339
Loan Payable 0 30,000
Accounts Payable 0 1,000
Total Current Liabilities $ 4,486 $ 39,339
Long Term Liabilities:
Total Long Term Liabilities $ 0 $ 0
Total Liabilities $ 4,486 $ 39,339
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) (3,111,881) (3,081,028)
Treasury Stock, at cost (33,252) (33,252)
Total Stockholders' Equity $ 635,731 $ 666,585
Total Liabilities and Stockholders'
Equity $ 640,218 $ 705,924
EX-99.7
STATEMENT OF OPERATIONS FOR 03/06
HYNES & HOWES INSURANCE COUNSELORS, INC.
Statement of Operations
For the Six Months Ended March 31, 2006 and 2005
(Unaudited)
The following Statements of Operations of Hynes & Howes Insurance Counselors,
Inc. for the six months ended March 31, 2006 and 2005, 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,
2006 2005 2006 2005
Operating Income:
Interest $17,097 $ 17,911 $31,675 $32,600
Other Income 1,668 (488) 2,237 781
Total Operating Income $18,765 $ 17,423 $33,912 $33,381
Operating Expenses:
Management Fees $12,000 $ 12,000 $24,000 $24,000
Legal and Audit 274 282 8,731 9,062
Other Operating Expenses 9,048 7,858 19,250 32,202
Total Operating Expenses$21,322 $ 10,140 $51,981 $65,264
Income(Loss)from Operations $(2,557) $ (2,717) $(18,069) $(31,883)
Provision for Income Taxes 0 0 0 0
Net Income (Loss) $(2,557) $(2,717) $(18,069) $(31,883)
Earnings Per Common Share $ 0 $ 0 $ 0 $ 0
Dividends per Common Share $ 0 $ 0 $ 0 $ 0
EX-99.8
STATEMENT OF CASH FLOW FOR 03/06
HYNES & HOWES INSURANCE COUNSELORS, INC.
Statement of Cash Flow
For the Six Months Ended March 31, 2006 and 2005
Increase (Decrease) in Cash and Cash Equivalents
(Unaudited)
Six Months Ended
March 31,
2006 2005
Cash Flows from Operating Activities:
Interest Received $ 31,675 $ 32,600
Other Income Received 2,237 781
Legal, Audit and Management Fees Paid (32,731) (33,062)
Cash Paid to Suppliers for
Operating Expenses (17,353) (29,940)
Net Cash Provided (Used)
by Operating Activities $ (16,172) $(29,621)
Cash Flow from Financing Activities:
Proceeds from loan receivable 0 30,000
Purchase of Equipment $ 0 0
Net Cash Provided (Used)
by Financing Activities $ 0 30,000
Cash Flow from Investing Activities:
Principal Collected on Real Estate
Contracts $ 6,105 39,157
Purchase of Real Estate Contracts (6,372) (40,495)
Buyers Escrow Received (651) 2,085
Tax Certificates Collected (Purchased) 0 1,690
Purchase of real estate 0 (43,383)
Net Cash Provided (Used)
by Investing Activities $ (918) $ (40,946
Net Increase (Decrease) in Cash
and Cash Equivalents $ (17,090) $ (40,567)
Cash & Cash Equivalents at
Beginning of Period $ 44,426 $ 46,294
Cash and Cash Equivalents at End of Period $ 27,336 $ 5,727
EX-27
ART. 5 FDS FOR 03/31/06
PERIOD-TYPE 6-MOS
FISCAL-YEAR-END SEP-30-2006
PERIOD-END MAR-31-2006
CASH 27,336
SECURITIES 0
RECEIVABLES 600,233
ALLOWANCES 0
INVENTORY 0
CURRENT-ASSETS 5,554
REAL ESTATE 0
PP&E 19,252
DEPRECIATION 12,157
TOTAL-ASSETS 640,218
CURRENT-LIABILITIES 4,486
LONG-LIABILITIES 0
BONDS 0
PREFERRED-MANDATORY 0
PREFERRED 0
COMMON 3,780,765
OTHER-SE 100
TOTAL-LIABILITY-AND-EQUITY 640,218
SALES 0
TOTAL-REVENUES 32,912
CGS 0
TOTAL-COSTS 51,981
OTHER-EXPENSES 0
LOSS-PROVISION 0
INTEREST-EXPENSE 0
INCOME-PRETAX (18,069)
INCOME-TAX 0
INCOME-CONTINUING 0
DISCONTINUED 0
EXTRAORDINARY 0
CHANGES 0
NET-INCOME (18,069)
EPS-PRIMARY 0
EPS-DILUTED 0
exhibit31
EXHIBIT (31)
RULE 13a-14(a)/25d-14(a) CERTIFICATIONS
I, Joyce Whitt, certify that:
(1) I have reviewed this quarterly report on Form 10Q of Hynes and
Howes Insurance Counselores, Inc., and;
(2) Based on my knowledge, this report does not contain any untrue
statement of a material fact or omit to state a material fact
necessary to make the statements made, in light of the circum-
stances under which such statements were made, not misleading
with respect to the period covered by this report;
(3) Based on my knowledge, the financial statements, and other financial
information included in this report, fairly present in all material
respects the financial condition, results of operations and cash
flows of the registrant as of, and for, the periods presented in
this report;
(4) The registrant's other certifying officer(s) and I are responsible
for establishing and maintaining disclosure controls and procedures
(as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and
internal control over financial reporting (as defined in Exchange
Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
(a) Designed such disclosure controls and procedures to ensure that
material information relating to the registrant, including its
consolidated subsidiaries, is made known to us by others within
those entities, particularly during the period in which this
report is being prepared;
(b) Evaluated the effectiveness of the registrant's disclosure
controls and procedures as of a date within 90 days prior to
the filing date of this report (the "Evaluation Date"); and
(c) Presented in this report our conclusions about the effectiveness
of the disclosure controls and procedures based on our evaluation
as of the Evaluation Date;
(5) The registrant's other certifying officer(s) and I have disclosed,
based on our most recent evaluation, to the registrant's auditors and
the audit committee of registrant's board of directors (or persons
performing equivalent functions):
(a) All significant deficiencies in the design or operation of
internal controls which could adversely affect the registrant's
ability to record, process, summarize and report financial data
and have identitified for the registrant's auditors any material
weaknesses in internal controls; and
(b) Any fraud, whether or not material, that involves management or
other employees who have a significant role in the registrant's
internal controls; and
(6) The registrant's other certifying officer(s) and I have indicated in
this report whether there were significant changes in internal controls
or in other factors that could significantly affect internal controls
subsequent to the date of our most recent evaluation, including any
corrective actions with regard to significant deficiencies and material
weaknesses.
Joyce Whitt
- ----------------------
(Joyce Whitt)
President
May 9, 2006
exhibit32
EXHIBIT (32)
SECTION 1350 CERTIFICATIONS
Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the
Sarbanes-Oxley Act of 2002, the undersigned officer of Hynes & Howes Insurance
Counselors, Inc. (the "Company") certifies to her knowledge that:
(1) The Quarterly Report on Form 10-Q of the Company for the quarterly
period ended March 31, 2006, fully complies with the requirements
of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
(2) The information contained in that Form 10-Q fairly presents, in all
material respects, the financial condition and results of operations
of the Company.
Joyce Whitt
- ---------------------
(Joyce Whitt)
President
May 9, 2006