SECURITIES AND EXCHANGE COMMISSION
WASHINGTON D.C. 20549
FORM 10Q
QUARTERLY REPORT PURSUANT OF SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the Quarter Ended - March 31, 1996
0-9295
----------------------
Commission File Number
WINCO PETROLEUM CORPORATION
------------------------------------------------------
(Exact name of registrant as specified in its charter)
Colorado 84-0794604
- ------------------------------------ ---------------------------------------
(State of other jurisdiction of (I.R.S. Employer Identification number)
incorporation of organization
1645 Court Place, Suite 312
Denver, Colorado 80202
- ---------------------------------------- ---------------------------------
(Address of principal executive offices) (Zip Code)
(303) 623-9095
----------------------------------------------------
(Registrant's telephone number, including area code)
- -----------------------------------------------------------------------------
(Former name, former address, former fiscal year if change since last report)
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 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.
X Yes 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.
Class: Common Stock, No par value
Outstanding as of March 31, 1996: 23,000,000
WINCO PETROLEUM CORPORATION
CONDENSED BALANCE SHEET
MARCH 31, 1996 SEPTEMBER 30, 1995
(UNAUDITED) (AUDITED)
-------------- ------------------
ASSETS
CURRENT ASSETS:
Cash and short-term cash investments $ 143,317 $ 155,911
Notes and accounts receivable 25,244 39,057
Prepaid expenses and other 5,080 6,559
----------- -----------
TOTAL CURRENT ASSETS $ 173,641 $ 201,527
INVESTMENTS IN OIL AND GAS PROPERTIES
AT COST, NET (Using the full cost
method of accounting) 113,769 118,793
WELL EQUIPMENT INVENTORY AT LOWER
OF COST OR MARKET 59,993 59,993
FURNITURE, FIXTURES AND VEHICLES
AT COST, Net of allowances for
depreciation 1,840 2,131
OTHER ASSETS 9,000 11,500
----------- -----------
$ 358,243 $ 393,944
----------- -----------
----------- -----------
LIABILITIES AND STOCKHOLDERS' INVESTMENT
CURRENT LIABILITIES:
Accounts payable to stockholders and
directors $ 332 $ 482
Accounts payable and accrued
liabilities 19,050 25,876
----------- -----------
TOTAL CURRENT LIABILITIES $ 19,382 $ 26,358
----------- -----------
STOCKHOLDERS' INVESTMENT
Common stock, no par value; 50,000,000
shares authorized; 23,000,000 shares
issued and outstanding 173,000 173,000
Additional paid in capital 1,249,320 1,249,320
Accumulated deficit (1,083,459) (1,054,734)
----------- -----------
TOTAL STOCKHOLDERS' EQUITY $ 338,861 $ 367,586
----------- -----------
$ 358,243 $ 393,944
----------- -----------
----------- -----------
-2-
WINCO PETROLEUM CORPORATION
CONDENSED STATEMENT OF EARNINGS
(UNAUDITED)
THREE MONTHS ENDED MARCH 31,
1996 1995
----------- ------------
REVENUES:
Oil and gas sales $ 20,541 $ 27,851
Interest income 1,109 1,264
----------- -----------
$ 21,650 $ 29,115
EXPENSES:
Lease operating expenses 13,534 13,974
General and administrative 21,797 15,347
Depreciation, depletion and amortization 5,768 1,782
----------- -----------
$ 41,099 $ 31,103
Loss before income tax (19,449) (1,988)
Income tax expense (benefits) $ -- $ --
----------- -----------
NET LOSS: $ (19,449) $ (1,988)
----------- -----------
----------- -----------
NET LOSS PER COMMON SHARE:
Primary and fully diluted $ -- $ --
----------- -----------
----------- -----------
WEIGHTED AVERAGE SHARES OUTSTANDING: 23,000,000 23,000,000
----------- -----------
----------- -----------
-3-
WINCO PETROLEUM CORPORATION
STATEMENT OF CASH FLOW
THREE MONTHS ENDED MARCH 31,
1996 1995
----------- -----------
Cash flows from operating activities
Net loss $(28,725) $(15,143)
Adjustment to reconcile net loss to net
cash used in operating activities:
Depreciation, depletion and amortization 9,098 2,677
Changes in current assets and current
liabilities:
Accounts receivable 13,813 78
Prepaid and other expenses (1,479) (1,686)
Accounts payable (6,976) (12,186)
-------- --------
Net cash used in operating activities (14,269) (26,260)
Cash flows from investing activities:
Investment in oil and gas properties 1,675 4,521
-------- --------
NET INCREASE (DECREASE) IN
CASH AND CASH EQUIVALENTS (12,594) (21,739)
Cash and cash equivalents at beginning
of the period 155,911 204,041
-------- --------
Cash and cash equivalents at end of
the period $143,317 $182,302
-------- --------
-------- --------
-4-
WINCO PETROLEUM CORPORATION
NOTES TO CONDENSED FINANCIAL STATEMENTS
(UNAUDITED)
CONDENSED FINANCIAL STATEMENTS
1. The accompanying, unaudited, condensed financial statements have been
prepared in accordance with Rule 10-01 of Regulation S-X and do not include
all principles for completed financial statements.
In the opinion of Winco Petroleum Corporation the accompanying
unaudited, condensed financial statements contain all adjustments (consisting
of normal adjustments) necessary to present fairly the financial position as
of March 31, 1996 and the results of operations and changes in financial
position for the three months then ended. Operating results for the three
months ended March 31, 1996 are not necessarily indicative of the results
that may be expected for the fiscal year ending September 30, 1996. These
statements should be read in conjunction with the financial statements and
notes thereto included in Form 10-K for the fiscal year ended September 30,
1995.
INVESTMENTS IN OIL AND GAS PROPERTIES
2. Depreciation and depletion of the full cost pool is computed using a
unit-of-production method based on proved reserves as determined annually by
the Company and independent engineers. A provision of $5,177 was made for
the three months ended March 31, 1996. Reserve for depreciation and
depletion was $974,144 and $965,046 on March 31, 1996 and September 30, 1995
respectively.
EARNINGS PER SHARE
3. Earnings per common share were computed by dividing net income by the
weighted average number of shares of common stock outstanding during the
three month period ended March 31, 1996 and 1995. The weighted average
shares outstanding for the period ending March 31, 1996 and 1995 was
23,000,000 shares.
-5-
WINCO PETROLEUM CORPORATION
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
LIQUIDITY AND CAPITAL RESOURCES
During the three months ended March 31, 1996 the Company's working
capital decreased $15,578. Working capital decreased due to decrease in oil
sales. The Company's working capital at March 31, 1996 was $154,259.
The Company intends to utilize funds to purchase producing properties.
The Company also intends to participate in oil and gas development programs
through sharing arrangements with industry participants. The Company will
consider those arrangements which are financially feasible under current
conditions.
RESULTS OF OPERATIONS FOR THE THREE MONTHS ENDED MARCH 31, 1996
During the three months ended March 31, 1996 oil and gas sales decreased
approximately $7,000 from the comparable period in 1995 due to oil on hand at
end of period, holding for increase in price.
Interest income remained comparable.
Due to net operating loss carry forward and the tax credits available
for financial reporting and tax reporting purposes, the Company does not
expect any significant income tax effects in the current year.
General and administrative expense was decreased from the comparable
quarter in 1995 due to audit expense paid in this period.
-6-
WINCO PETROLEUM CORPORATION
PART II
ITEM 6: EXHIBITS AND REPORTS ON FORM 8-K.
None.
-7-
SIGNATURES
Pursuant to the requirements of the Securities and Exchange Act of 1934,
the Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
WINCO PETROLEUM CORPORATION
/s/ L. W. Winkler, Jr.
------------------------------------------
L. W. Winkler, Jr.
President
Dated:
--------------------------
-8-