|
|
|
|||||||
EnerNorth Industries Inc. |
|||||||
Consolidated Balance Sheets |
|||||||
(Expressed in Canadian dollars) |
|||||||
September 30, 2004 |
June 30, 2004 |
||||||
(unaudited) |
(audited |
) | |||||
ASSETS |
|||||||
Current |
|||||||
Cash and cash equivalents |
$ |
742,216 |
$ |
600,313 |
|||
Marketable securities |
521,039 |
521,039 |
|||||
Receivables |
6,685,959 |
7,690,129 |
|||||
Inventories |
482,221 |
466,969 |
|||||
Unbilled revenue |
1,383,007 |
1,941,548 |
|||||
Due from co-venturer |
1,330,247 |
923,168 |
|||||
Prepaid expenses |
62,440 |
700,851 |
|||||
Investment |
3,262,996 |
3,365,000 |
|||||
Total current assets |
14,470,125 |
16,209,017 |
|||||
Oil and gas interests (net of accumulated |
|||||||
depletion) |
3,769,450 |
3,750,817 |
|||||
Capital assets (net of accumulated |
|||||||
depreciation and amortization) |
3,214,071 |
3,272,538 |
|||||
Investment |
- |
- |
|||||
Future income tax asset |
30,224 |
30,224 |
|||||
$ |
21,483,870 |
$ |
23,262,596 |
||||
LIABILITIES AND SHAREHOLDERS' EQUITY |
|||||||
Current |
|||||||
Bank indebtedness |
$ |
1,239,831 |
$ |
2,213,010 |
|||
Accounts payable and accrued liabilities |
4,178,957 |
4,368,412 |
|||||
Due to shareholder (Note 3a) |
42,000 |
42,000 |
|||||
Current portion of long-term debt |
226,499 |
226,499 |
|||||
Deferred revenue |
7,919 |
351,782 |
|||||
Future income tax liability |
276,648 |
276,648 |
|||||
Oakwell claim |
7,574,558 |
7,915,681 |
|||||
Total current liabilities |
13,546,412 |
15,394,032 |
|||||
Long-term debt |
493,569 |
542,109 |
|||||
Future income tax liability |
25,617 |
25,617 |
|||||
Site Restoration |
137,290 |
135,819 |
|||||
Total liabilities |
14,202,888 |
16,097,577 |
|||||
Minority interest |
101,906 |
75,141 |
|||||
Shareholders' equity |
|||||||
Capital stock (Note 4) |
43,339,132 |
43,339,132 |
|||||
Deficit |
(36,160,056 |
) |
(36,249,254 |
) | |||
Total shareholders' equity |
$ |
7,179,076 |
$ |
7,089,878 |
|||
$ |
21,483,870 |
$ |
23,262,596 |
||||
The accompanying notes to the financial statements are an integral part of these financial statements |
|
EnerNorth Industries Inc. |
|||||||
Consolidated Statements of Income and Deficit |
|||||||
(Unaudited) |
|||||||
(Expressed in Canadian dollars) |
|||||||
For the three |
|||||||
month period |
|||||||
ending September 30 |
|||||||
2004 |
2003 |
||||||
Sales |
$ |
7,059,125 |
$ |
6,952,262 |
|||
Cost of sales (including |
|||||||
depreciation and depletion of |
|||||||
$189,549; 2003 - $160,352) |
6,047,030 |
5,956,197 |
|||||
Gross profit |
1,012,095 |
996,065 |
|||||
Administrative expenses |
1,278,128 |
884,664 |
|||||
Amortization of capital assets |
34,578 |
33,661 |
|||||
Interest |
23,309 |
22,995 |
|||||
Interest on long-term debt |
12,258 |
13,209 |
|||||
1,348,273 |
954,529 |
||||||
Income (loss) before the following |
(336,178 |
) |
41,536 |
||||
Oakwell claim |
341,123 |
- |
|||||
Other income |
111,018 |
133,538 |
|||||
Net income before tax and minority interest |
$ |
115,963 |
$ |
175,074 |
|||
Income taxes |
|||||||
Future (net of valuation provision) |
- |
66,528 |
|||||
Utilization of loss carryforwards |
- |
(66,528 |
) | ||||
- |
- |
||||||
Net income before minority interest |
$ |
115,963 |
$ |
175,074 |
|||
Minority interest |
26,765 |
- |
|||||
Net income |
$ |
89,198 |
$ |
175,074 |
|||
Deficit, beginning of period |
(36,249,254 |
) |
(32,085,526 |
) | |||
Deficit, end of period |
($36,160,056 |
) |
($31,910,452 |
) | |||
Net income per Common Share |
|||||||
Net income per share |
$ |
0.02 |
$ |
0.04 |
|||
Weighted average common shares |
|||||||
outstanding (thousands) |
4,059 |
4,059 |
|||||
Fully Diluted net income per Common Share |
|||||||
Net income per share |
$ |
0.02 |
$ |
0.04 |
|||
The accompanying notes to the financial statements are an integral part of these financial statements |
|
EnerNorth Industries Inc. |
|||||||
Consolidated Statements of Cash Flows |
|||||||
(Unaudited) |
|||||||
(Expressed in Canadian dollars) |
|||||||
For the three month period |
|||||||
ending September 30 |
|||||||
2004 |
2003 |
||||||
|
|||||||
Cash provided by (used in) |
|||||||
Operating activities |
|||||||
Net income |
$ |
89,198 |
$ |
175,074 |
|||
Adjustments to reconcile net income to |
|||||||
net cash provided by operating activities |
|||||||
Amortization and depletion |
224,127 |
194,013 |
|||||
Oakwell claim |
(341,123 |
) |
- |
||||
Unrealized foreign exchange loss on investment |
102,004 |
- |
|||||
Minority Interest |
26,765 |
||||||
Gain on sale of marketable securities |
- |
(14,628 |
) | ||||
100,971 |
354,459 |
||||||
Net change in non-cash working capital |
|||||||
Receivables |
1,004,170 |
1,530,845 |
|||||
Inventories and unbilled revenue |
543,289 |
1,724,425 |
|||||
Prepaid expenses |
638,411 |
6,105 |
|||||
Accounts payable and accrued liabilities |
(189,455 |
) |
(2,686,635 |
) | |||
Deferred revenue |
(343,863 |
) |
(57,970 |
) | |||
1,753,523 |
871,229 |
||||||
Financing activities |
|||||||
Bank indebtedness |
(973,179 |
) |
(747,014 |
) | |||
Repayment of long term debt |
(48,540 |
) |
(46,212 |
) | |||
Repayment to shareholders |
- |
(247,743 |
) | ||||
(1,021,719 |
) |
(1,040,969 |
) | ||||
|
|||||||
Investing activities |
|||||||
Purchase of capital assets |
(22,076 |
) |
(36,108 |
) | |||
Oil and gas interests |
(160,746 |
) |
(627,975 |
) | |||
Due from co-venturer |
(407,079 |
) |
(99,053 |
) | |||
Marketable securities |
- |
(203,107 |
) | ||||
(589,901 |
) |
(966,243 |
) | ||||
Increase (decrease) in cash |
141,903 |
(1,135,983 |
) | ||||
Cash, beginning of period |
600,313 |
6,729,283 |
|||||
Cash, end of period |
$ |
742,216 |
$ |
5,593,300 |
|||
Cash, end of period consists of: |
|||||||
Cash |
$ |
742,216 |
$ |
2,798,875 |
|||
Money market funds |
- |
$ |
2,794,425 |
||||
The accompanying notes to the financial statements are an integral part of these financial statements |
|
2. | Segmented information |
For the three months ending September 30, 2004 |
|||||||||||||
|
Industrial & Offshore |
Oil & Gas |
Corporate |
Total |
|||||||||
Revenue |
6,895,715 |
163,410 |
- |
7,059,125 |
|||||||||
Interest expense |
35,317 |
- |
250 |
35,567 |
|||||||||
Amortization and depletion |
80,543 |
143,584 |
- |
224,127 |
|||||||||
Net earnings (loss) |
302,933 |
19,826 |
(233,561 |
) |
89,198 |
||||||||
Capital assets and |
|||||||||||||
oil and gas interests |
3,214,071 |
3,769,450 |
- |
6,983,521 |
|||||||||
For the three months ending September 30, 2003 |
|||||||||||||
Industrial & Offshore |
Oil & Gas |
Corporate |
Total |
||||||||||
Revenue |
6,820,024 |
132,238 |
- |
6,952,262 |
|||||||||
Interest expense |
35,691 |
- |
513 |
36,204 |
|||||||||
Amortization and depletion |
83,048 |
110,965 |
- |
194,013 |
|||||||||
Net earnings (loss) |
360,450 |
(68,543 |
) |
(116,833 |
) |
175,074 |
|||||||
Capital assets and |
|||||||||||||
oil and gas interests |
3,150,253 |
3,150,253 |
- |
6,300,506 |
|||||||||
The accompanying notes to the financial statements are an integral part of these financial statements |
|
3. | Related Party Transactions |
a) | At June 30, 2004 a director of the Company was awarded $42,000 as compensation. |
b) | During the three month period ending September 30, 2003 a director of the Company was paid US$5,000 (approximately Cdn$4,000) under a nine month consulting agreement that commenced September 1, 2003. |
c) | During the three month period ending September 30, 2003 the Company repaid $247,743 to a shareholder and a director of the Company. |
d) | Included in accounts receivable at September 30, 2004 are advances due from an officer of the Companys subsidiary in the amount of $4,623 (2003 - $10,588). |
2. | Share Capital |
(a) | Authorized and Issued: |
# |
Consideration | |
Balance, as at June 30, 2004 |
4,059,009 |
$43,339,132 |
Balance, as at September 30, 2004 |
4,059,009 |
$43,339,132 |
(b) | Common share purchase warrants outstanding consist of the following: |
Exercise |
Expiry |
2004 |
2003 |
Price |
Date |
# |
# |
US$ 1.80 |
December 31, 2004 |
533,332 |
533,332 |
533,332 |
533,332 |
(c) | There were no Common share purchase options outstanding at September 30, 2004 and 2003. |
|
|