U. S. Securities and Exchange Commission
Washington, D. C. 20549
Form 10-QSB
(Mark One)
[ X ] QUARTERLY REPORT UNDER SECTION 10 OR 15 (d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarterly period ended September 30,2000
-----------------
[ ] TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE ACT
For the transition period from to .
------ ------
Commission File Number: 0-9458
------
Eagle Exploration Company
(Exact name of Registrant as specified in it charter)
Colorado 84-0804143
-------- ----------
(State or other jurisdiction of (I.R.S. Employer ID Number)
incorporation or organization)
1801 Broadway, Suite 1420
Denver, Colorado 80202
----------------------------------------
(Address of principal executive offices)
(303) 296-3677
---------------------------
(Issuer's telephone number)
Check whether the issuer (1) filed all reports required to be filed by
Section 13 or 15(d) of the Exchange Act during the past 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. Yes X No .
APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY
PROCEEDINGS DURING THE PRECEDING FIVE YEARS
Check whether the registrant filed all documents and reports required
to be filed by Section 12, 13 or 15(d) of the Exchange Act after the
distribution of securities under a plan confirmed by court. Yes X No .
State the number of shares outstanding of each of the issuer's classes of
common equity, as of the latest practicable date: 3,072,836.
---------
Transitional Small Business Disclosure format: (Check One) Yes No X .
EAGLE EXPLORATION COMPANY AND SUBSIDIARIES
INDEX TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
PART I FINANCIAL INFORMATION PAGE
Item 1 Unaudited Condensed Consolidated
- ------
Balance Sheets - March 31, 2000,
and September 30, 2000 3
Unaudited Condensed Consolidated
Statements of Operations - Three
Months Ended September 30, 1999
and 2000 and Six Months Ended
September 30, 1999 and 2000 4
Unaudited Condensed Consolidated
Statements of Cash Flows - Six Months
Ended September 30, 1999 and 2000 5
Notes to Unaudited Condensed
Consolidated Financial Statements 6
Item 2 Management's Discussion and Analysis
of Financial Condition and Results
of Operations 7
PART II SIGNATURES 8
- ------- ----------
PART I
FINANCIAL INFORMATION
Item 1 EAGLE EXPLORATION COMPANY AND SUBSIDIARIES
- -----
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
Assets
March 31, September 30,
2000 2000
----------- -----------
Current assets
Cash and cash equivalents ............................... $ 1,569,309 $ 1,320,964
Certificates of deposit ................................. 200,000 --
Investments available-for-sale .......................... 594,908 1,086,013
Other receivables ....................................... 10,321 5,096
----------- -----------
Total current assets .................................. 2,374,538 2,412,073
----------- -----------
Office furniture, equipment and other,
net of $228,913 of accumulated
depreciation at March 31, 2000,
and $237,978 of accumulated depreciation at
September 30, 2000 .................................... 38,898 33,075
Other .................................................... 26,637 26,637
----------- -----------
Total assets ............................................. $ 2,440,073 $ 2,471,785
=========== ===========
Liabilities and Stockholders' Equity
Current liabilities
Accounts payable ........................................ $ 12,448 $ 11,986
Deposits, deferred revenue
and other .............................................. 8,409 8,409
----------- -----------
Total current liabilities ............................ 20,857 20,395
----------- -----------
Stockholders' equity
Common stock, no par value;
authorized 10,000,000 shares;
3,072,836 shares issued and
outstanding ........................................... 6,632,998 6,632,998
Accumulated deficit .................................... (4,053,478) (4,083,225)
Unrealized holding loss on
investments available-for-sale ........................ (160,304) (98,383)
----------- -----------
2,419,216 2,451,390
----------- -----------
Total liabilities and
stockholders' equity ................................... $ 2,440,073 $ 2,471,785
=========== ===========
See Notes to Unaudited Condensed Consolidated Financial Statements.
- 3 -
EAGLE EXPLORATION COMPANY AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
For the Three For the Three For the Six For the Six
Months Ended Months Ended Months Ended Months Ended
September 30, September 30, September 30, September 30,
1999 2000 1999 2000
----------- ----------- ----------- -----------
Revenue:
Interest and dividend income .. $ 26,138 $ 20,425 $ 50,938 $ 61,570
Other income .................. 12,742 11,890 31,214 27,195
----------- ----------- ----------- -----------
Total revenue .................. 38,880 32,315 82,152 88,765
----------- ----------- ----------- -----------
Expenses:
Depreciation .................. 3,660 4,813 7,320 9,065
Other operating expenses ...... 50,756 58,256 101,670 109,447
----------- ----------- ----------- -----------
Total expense .................. 54,416 63,069 108,990 118,512
----------- ----------- ----------- -----------
Net income (loss) .............. (15,536) (30,754) (26,838) (29,747)
----------- ----------- ----------- -----------
Other comprehensive income
Unrealized gains on
investments available-for-
sale ........................ -- 16,072 -- 61,921
----------- ----------- ----------- -----------
Comprehensive income (loss) ... $ (15,536) (14,682) $ (26,838) $ 32,174
=========== =========== =========== ===========
Basic and diluted income
(loss) per share .............. $ (.005) $ (.01) $ (.008) $ (.01)
=========== =========== =========== ===========
Weighted average number of share
outstanding - basic and diluted 3,072,836 3,072,836 3,072,836 3,072,836
=========== =========== =========== ===========
See Notes to Unaudited Condensed Consolidated Financial Statements.
- 4 -
EAGLE EXPLORATION COMPANY AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
For the Six For the Six
Months Ended Months Ended
September 30, September 30,
1999 2000
----------- -------------
Cash flows from operating activities:
Net (loss) .......................... $ (26,838) $ (29,747)
----------- -----------
Adjustments to reconcile net (loss)
to net cash (used) by operating
activities:
Depreciation ...................... 7,320 9,065
Change in assets and liabilities:
(Increase) decrease in accounts
receivable ........................ (2,435) 5,225
(Decrease) in accounts payable ..... (17,665) (462)
----------- -----------
(12,780) 13,828
----------- -----------
Net cash flows (used) by
operating activities ........... (39,618) (15,919)
----------- -----------
Cash flows from investing activities:
Redemption of certificates of deposit -- 200,000
Purchase of furniture and equipment . -- (3,242)
Purchase of investments
available-for-sale ................. (707,760) (464,184)
Proceeds from sale of investments
available-for-sale ..... -- 35,000
----------- -----------
Net cash flows (used) by
investing activities ........... (707,760) (232,426)
----------- -----------
Net (decrease) in cash and cash
equivalents ......................... (747,378) (248,345)
Cash and cash equivalents, beginning
of year ............................. 2,350,898 1,569,309
----------- -----------
Cash and cash equivalents, end of
quarter ............................. $ 1,603,520 $ 1,320,964
=========== ===========
Supplemental disclosure of cash flow information:
The change in unrealized gain (loss) on investments available-for-sale for
the six months ended September 30, 1999 and 2000 was $0 and $61,921,
respectively.
See Notes to Unaudited Condensed Consolidated Financial Statements.
- 5 -
EAGLE EXPLORATION COMPANY AND SUBSIDIARIES
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
Opinion of Management
1. The financial information furnished reflects all adjustments which are, in
the opinion of management, necessary to a fair presentation of the financial
position at March 31, 2000 and September 30, 2000, and of the condensed
consolidated statements of operations for the three months ended September 30,
1999 and 2000 and for the six months ended September 30, 1999 and 2000 and
condensed consolidated statements of cash flows for the six months ended
September 30, 1999 and 2000. The results of operations and statements of cash
flows for the periods presented are not necessarily indicative of those to be
expected for the entire year.
2. The accompanying unaudited condensed consolidated financial statements have
been prepared in accordance with generally accepted accounting principles for
interim financial information. Accordingly, they do not include all of the
information and footnotes required by generally accepted accounting principles.
For further information refer to the audited consolidated financial statements
and notes thereto for the year ended March 31, 2000, included in the Company's
10-KSB filed with the Securities and Exchange Commission on June 30, 2000.
Item 2: Management's Discussion and Analysis of Financial Condition and
Results of Operations.
- ------- -----------------------------------------------------------------------
Financial Condition, Liquidity and Capital Resources
- ----------------------------------------------------
Cash and cash equivalents decreased for the six months ended September
30, 2000 to $1,320,964 from $1,569,309 for the year ended March 31, 2000 or
$248,345. The certificates of deposits matured in the period ended September 30,
2000, and were not reinvested. Investments available-for-sale increased for the
six months ended September 30, 2000, to $1,086,013 from $594,908 or $491,105.
For the period ended September 30, 2000, the Company acquired 1,090 Telehub
Communications bonds at $140.00 per bond. Subsequent to September 30, 2000, the
Company acquired an additional 1,000 Telehub Communications bonds at $200.00 per
bond. The average price per bond purchased is approximately $170.00 per bond.
The bonds are callable on July 31, 2002, at $1,069.38 and mature July 31, 2005.
Stockholders' equity decreased from $2,419,216 at March 31, 2000, to
$2,451,390 for the six months ended September 30, 2000, or $32,174. This is
primarily due to operating activities.
Results of Operations
- ---------------------
For the three months ended September 30, 2000, compared to the three months
- --------------------------------------------------------------------------------
ended September 30, 1999, and for the six months ended September 30, 2000,
- --------------------------------------------------------------------------------
compared to the six months ended September 30, 1999.
- ---------------------------------------------------
For the three months ended September 30, 2000, the Company's total revenue
was $32,315 as compared to the three months ended September 30, 1999, total
revenue was $38,880 or a decrease of $6,565. This decrease is a result of less
interest income as the Company redeemed its certificates of deposit and a
producing gas well was shut-in during this period. For the six months ended
September 30, 2000, the Company's total revenue was $88,765 as compared to
$82,152 for the six months ended September 30, 1999.
Total expenses for the three months ended September 30, 2000, were $63,069
and total expenses for the three months ended September 30, 1999, were $54,416.
This increase in expenditures is primarily due to the Company's attempt to
stimulate the producing zone of the shut-in well, an increase in office rent and
depreciation. Total expenses for the six month period ended September 30, 2000,
were $118,512 as compared to $108,990 for the period ended September 30, 1999.
EAGLE EXPLORATION COMPANY AND SUBSIDIARIES
PART II
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
EAGLE EXPLORATION COMPANY
(Registrant)
By: /s/ Raymond N. Joeckel
------------------
Raymond N. Joeckel
President/Chief Financial
Officer
By: /s/ Paul M. Joeckel
-----------------
Paul M. Joeckel
Secretary
Date: November 10, 2000