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FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
Quarterly Report Under Section 13 or 15(d)
of the Securities Exchange Act of 1934
For Quarter Ended Commission File
September 30, 2003 No. 0-1587
GNC ENERGY CORPORATION
(Exact name of registrant as specified in its charter)
DELAWARE 75-1050549
(State or other jurisdiction of (IRS Employer ID No.)
incorporation or organization)
8235 Douglas Ave., Suite 1201 Dallas,Texas 75225
(address of principal executive offices and zip code)
(214) 691-9436
(Registrant's telephone number, including area code)
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
Exchange 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.
Yes__x__ No_____
Indicate the number of shares outstanding of each of the issuer's
classes of common stock, as of the latest practicable date.
Outstanding at
Class September 30, 2003
Common Stock, $0.40 par value 5,203,706
GNC ENERGY CORPORATION
INDEX
Part I FINANCIAL INFORMATION Page No.
Consolidated Balance Sheets - September 30, 2003
and September 30, 2002.................................3 - 4
Consolidated Balance Sheets - March 31, 2003
and March 31, 2002.....................................5 - 6
Consolidated Statements of Operations - Three Months
Ended September 30, 2003 and September 30, 2002............7
Consolidated Statement of Operations - Six Months
Ended September 30, 2003 and September 30, 2002............8
Consolidated Statement of Changes in Stockholders'
Equity, (Deficit) - Three Months Ended
September 30, 2003.........................................9
Condensed Consolidated Statements of Changes in Financial
Position -Six Months Ended September 30, 2003.............10
Notes to Consolidated Financial Statements.....................11
Management's Discussion and Analysis of Results of
Operations................................................11
Part II OTHER INFORMATION
Exhibits and Reports on Form 8-K...............................12
Signatures.....................................................12
(2)
PART I. FINANCIAL INFORMATION
GNC ENERGY CORPORATION
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
ASSETS
9-30-03 9-30-02
Current assets:
Cash $ - $ -
Recoverable deposits 729 -
Inventory - -
Total Current Assets 729 0
Property, Plant and Equipment
at Cost:
Oil and Gas 0 0
Total Property, Plant & Equip. 0 0
Less Accumulated Depreciation,
Depletion and Amort. 0 0
Total Fixed Assets 0 0
Total Assets $ 729 $ 0
See accompanying notes.
(3)
GNC ENERGY CORPORATION
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
LIABILITIES AND STOCKHOLDERS' EQUITY
9-30-03 9-30-02
Current Liabilities:
Accounts Payable 2,871,415 2,872,008
Accrued Expenses 2,011,726 2,011,726
Accrued Interest Expense 2,308,351 2,222,347
Total Current Liabilities $ 7,191,492 7,106,081
Stockholders' Equity (Deficit):
Common Stock, $.40 par value
Authorized - 10,000,000 shares
Issued and outstanding -
5,203,706 shares in 2001
and 2000 2,081,482 2,081,482
Capital in excess of par value 17,000,421 17,000,421
Accumulated Deficit (26,272,666)(26,187,984)
Total Equity ( 7,190,763)( 7,106,081)
Total Liabilities and Equity $ 729 $ 0
See accompanying notes.
(4)
GNC ENERGY CORPORATION
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
ASSETS
3-31-03 3-31-02
Current Assets:
Cash - -
Accounts Receivable - -
Recoverable Deposits - -
Prepaid Expenses - -
Total Current Assets 0 0
Property, Plant and Equipment
at Cost, Substantially Pledged:
Oil and Gas 0 0
Less Accumulated Depreciation,
Depletion and Amortization 0 0
Total Fixed Assets 0 0
Total Assets $ 0 $ 0
See accompanying notes.
(5)
GNC ENERGY CORPORATION
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
LIABILITIES AND STOCKHOLDERS' EQUITY
3-31-03 3-31-02
Current Liabilities:
Accounts Payable 2,863,044 2,995,184
Accrued Expenses 2,011,726 2,011,726
Accrued Interest Expense 2,245,271 2,312,554
Total Current Liabilities 7,120,041 7,819,464
Stockholders' Equity (Deficit):
Common Stock, $.40 par value
Authorized - 10,000,000 shares
Issued and Outstanding -
5,203,706 Shares in 1999
and 1998 2,081,482 2,081,482
Capital in Excess of Par Value 17,000,421 17,000,421
Accumulated Earnings(Deficit) (26,201,944)(26,401,367)
Total Equity ( 7,120,041)( 7,319,464)
Total Liabilities and Equity $ 0 $ 0
See accompanying notes.
(6)
GNC ENERGY CORPORATION
CONSOLIDATED STATEMENT OF OPERATIONS
(UNAUDITED)
Three Months Ended
9-30-03 9-30-02
Net Sales 0 0
Cost and Expenses:
Cost of Sales 0 126
General and Administrative 3,512 3,453
Depreciation, Depletion, and
Amortization - -
Total Oil/Gas Operating Expenses 3,512 3,579
Income (Loss) from Operations ( 3,512) ( 3,579)
Other Income
Extraordinary Income - 283,613
Other Expenses
Interest, Net 31,541 28,718
Extraordinary Expenses - -
Property Taxes - -
Gain(Loss) before Taxes 35,053 251,316
Net Gain(Loss) $ 35,053 $ 251,316
Gain(Loss) per Share $ ( .01) $ .05
Weighted Average Shares Outstanding 5,203,706 5,203,706
See accompanying notes.
(7)
GNC ENERGY CORPORATION
CONSOLIDATED STATEMENT OF OPERATIONS
(UNAUDITED)
Six Months Six Months
Ended Ended
9-30-03 9-30-02
Net Sales 0 0
Cost and Expenses:
Cost of Sales 0 126
General and Administrative 7,641 6,194
Depreciation, Depletion and
Amortization - -
Total Operations Expenses 7,641 6,320
Income(Loss) from Operations ( 7,641) ( 6,320)
Other Income
Extraordinary Income - 283,612
Other Expenses
Interest, Net 63,080 63,910
Extraordinary Loss - -
Misc. Taxes - -
Miscellaneous - -
Gain(Loss) before Taxes (70,721) 213,382
Net Gain (Loss) (70,721) 213,382
Gain (Loss) per Share ( .01) .04
Weighted Average Shares Outstanding 5,203,706 5,203,706
See accompanying notes.
(8)
GNC ENERGY CORPORATION
CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY (DEFICIT)
(UNAUDITED)
Capital in
Common Stock Excess of Accumulated
Shares Amount Par Value Deficit__
Balance 6/30/03 5,203,706 2,081,482 17,000,421 (26,237,613)
Net Loss - - - (35,053)
Balance 9/30/03 5,203,706 2,081,482 17,000,421 (26,272,666)
See accompanying notes.
(9)
GNC ENERGY CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN FINANCIAL POSITION
(UNAUDITED)
Six Months Six Months
Ended Ended
9-30-03 9-30-02
Financial resources were applied to:
Net Loss (70,721) -
Items not affecting working
capital:
Depreciation, Depletion, and
Amortization - -
Fixed Assets - -
Financial resources were provided by:
Net Profit - 213,382
Increase (Decrease) in
working capital (70,721) 213,382
Changes in elements of working capital
Cash - -
Accounts and notes receivable - -
Deposits/Prepaids 729 -
Decreases in notes payable and
current maturities of LT debt - -
Decrease (Increase) in accounts
payable and accrued expenses (71,450) 213,382
Increase (Decrease) in
working capital $ (70,721) $ 213,382
See accompanying notes.
(10)
GNC ENERGY CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
1. In the opinion of the Company, the accompanying unaudited
consolidated financial statements contain all adjustments (consisting
of only normal recurring accruals) necessary to present fairly the
financial position as of September 30, 2003. We are continuing to
work with our creditors to attempt to achieve a plan of reorganization
without bankruptcy.
2. The results of operations for the three-month period ended
September 30, 2003, are not necessarily indicative of the results to
be expected for the full year. For further information, refer to the
consolidated financial statements and footnotes thereto included in
the Company's annual report on Form 10-K for the year ended March 31,
2003.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF RESULTS OF OPERATION
Oil and Gas Operations - There were no oil and gas sales for the three-
month period ended September 30, 2003, as all of the oil and gas properties
have been sold to apply to debt.
Income Taxes - No tax provisions were made for the three months
ended September 30, 2003, since the Company has unused deductions for
financial statement purposes.
(11)
GNC ENERGY CORPORATION
PART II. OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K
(b) Reports on Form 8-K: There were no reports on Form 8-K
filed for the three months ended September 30, 2003.
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.
GNC ENERGY CORPORATION
By:______________________
W. H. Hudson
President and
Chief Financial Officer
November 12, 2003
(12)