QUARTERLY REPORT FOR 12/02
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, 2002 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 12/02
HYNES & HOWES INSURANCE COUNSELORS, INC.
Notes to Financial Statements
December 31, 2002
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, 2002
decreased $23,021 as compared to the three month period ended December
31, 2001.
EX-99.2
OTHER INFORMATION FOR 12/02
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 12/02
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 12/02
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 Miller, President
This corporation has no treasurer.
Dated___________________ By:_____________________________________
Kendra Jeffries, Secretary
EX-99.5
COMPUTATION OF EPS FOR 12/02
HYNES & HOWES INSURANCE COUNSELORS, INC.
Computation of Earnings (Loss) Per Common Share
For the Three Months Ended December 31, 2002 and 2001
(Unaudited)
Three Months Ended
December 31,
2002 2001
Common Shares Outstanding:
Beginning of Period 11,226,699 11,226,699
End of Period 11,226,699 11,226,699
Average Number of Shares
Outstanding for the Period 11,226,699 11,226,699
Net Income (Loss) $ (24,810) $ (2,162)
Earnings (Loss) Per Common Share:
Net Income $ 0.00 $ 0.00
EX-99.6
BALANCE SHEET FOR 12/02
HYNES & HOWES INSURANCE COUNSELORS, INC.
Balance Sheet
December 31, 2002 and 2001
(Unaudited)
December 31,
2002 2001
Assets
Current Assets:
Cash in Bank $ 8,647 $ 17,039
Other Current Assets 8,439 5,372
Total Current Assets $ 17,086 $ 22,411
Investments:
Investment in Affiliated Company $ 0 $ 3,271
Contracts Receivable-Real Estate 715,102 749,664
Equipment 9,706 10,206
Total Investments $ 724,808 $ 763,141
Total Assets $ 741,894 $ 785,552
Liabilities and Stockholders' Equity
Current Liabilities:
Buyers Escrow $ 6,423 $ 8,233
Contracts Payable 0 4,445
Total Current Liabilities $ 6,423 $ 12,678
Long Term Liabilities:
Contracts Payable $ 0 $ 7,091
Total Long Term Liabilities $ 0 $ 7,091
Total Liabilities $ 6,423 $ 19,769
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) (3,012,142) (2,981,830)
Treasury Stock, at cost (33,252) (33,252)
Total Stockholders' Equity $ 735,471 $ 765,783
Total Liabilities and Stockholders'
Equity $ 741,894 $ 785,552
EX-99.7
STATEMENT OF OPERATIONS FOR 12/02
HYNES & HOWES INSURANCE COUNSELORS, INC.
Statement of Operations
For the Three Months Ended December 31, 2002 and 2001
(Unaudited)
The following Statements of Operations of Hynes & Howes Insurance Counselors,
Inc. for the three months ended December 31, 2002 and 2001, 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
December 31,
2002 2001
Operating Income:
Interest $ 19,298 $21,068
Other Income (13,002) 668
Total Operating Income $ 6,296 $21,736
Operating Expenses:
Management Fees 12,000 12,000
Legal and Audit 7,104 6,450
Other Operating Expenses $ 12,002 $ 5,448
Total Operating Expenses $ 31,106 $23,898
Income (Loss) from Operations (24,810) (2,162)
Provision for Income Taxes $ 0 $ 0
Net Income (Loss) $(24,810) $(2,162)
Earnings Per Common Share $ 0 $ 0
Dividends per Common Share $ 0 $ 0
EX-99.8
STATEMENT OF CASH FLOW FOR 12/02
HYNES & HOWES INSURANCE COUNSELORS, INC.
Statement of Cash Flow
For the Three Months Ended December 31, 2002 and 2001
Increase (Decrease) in Cash and Cash Equivalents
(Unaudited)
Theee Months Ended
December 31,
2002 2001
Cash Flows from Operating Activities:
Interest Received $ 19,298 $ 21,068
Other Income Received 852 668
Legal, Audit and Management Fees Paid (19,104) (18,450)
Cash Paid to Suppliers for
Operating Expenses (11,367) (5,448)
Net Cash Provided (Used)
by Operating Activities $ (10,321) $ (2,162)
Cash Flow from Financing Activities:
Purchase of Equipment $ 0 0
Net Cash Provided (Used)
by Financing Activities $ 0 0
Cash Flow from Investing Activities:
Principal Collected on Real Estate
Contracts $ 3,951 3,813
Purchase of Real Estate Contracts 0 (92,540)
Buyers Escrow Received 3,119 4,064
Tax Certificates Purchased (1,189) (1,763)
Principal Reduction on Contracts Payable (8,157) (1,077)
Net Cash Provided (Used)
by Investing Activities $ (2,276) $ (87,503)
Net Increase (Decrease) in Cash
and Cash Equivalents $ (12,597) $ (89,665)
Cash & Cash Equivalents at
Beginning of Period $ 21,244 $ 106,704
Cash and Cash Equivalents at End of Period $ 8,647 $ 17,039
EX-27
ART. 5 FDS FOR 12/31/02
PERIOD-TYPE 3-MOS
FISCAL-YEAR-END SEP-30-2003
PERIOD-END DEC-31-2002
CASH 8,647
SECURITIES 0
RECEIVABLES 715,102
ALLOWANCES 0
INVENTORY 0
CURRENT-ASSETS 8,439
PP&E 19,330
DEPRECIATION 6,624
TOTAL-ASSETS 758,142
CURRENT-LIABILITIES 6,423
BONDS 0
PREFERRED-MANDATORY 0
PREFERRED 0
COMMON 3,780,765
OTHER-SE 100
TOTAL-LIABILITY-AND-EQUITY 741,894
SALES 0
TOTAL-REVENUES 6,296
CGS 0
TOTAL-COSTS 31,106
OTHER-EXPENSES 0
LOSS-PROVISION 0
INTEREST-EXPENSE 0
INCOME-PRETAX (24,810)
INCOME-TAX 0
INCOME-CONTINUING 0
DISCONTINUED 0
EXTRAORDINARY 0
CHANGES 0
NET-INCOME (24,810)
EPS-PRIMARY 0
EPS-DILUTED 0