First quarter revenue was $243,000 versus $1.3 million in the same period a year ago. Net loss available to common shareholders was $337,000, or $0.09 per diluted share, versus a net loss of $43,000, or $0.01 per diluted share, in the first quarter last year. The lower revenue and higher net loss resulted from the Company's transition from a GIS service provider into an oil and gas company.
Lori Jones, CEO of ASI, said, "We successfully completed our GIS service contracts, which generated substantial cash flow during the quarter. We have kept our overhead to a minimum while we work to build a meaningful presence for our ASI Energy Division within the oil and gas industry. We are pleased by the progress we have made in this regard, and intend to build on this momentum throughout fiscal 2007."
The company also announced its decision not to acquire a non-operating working interest in the Texas gulf coast region as previously announced in a press release dated January 9, 2007. After significant due diligence, the Company has decided not to close on the purchase of a non-operating interest in 5 wells located in Liberty and Wharton counties, Texas.
Lori Jones, CEO of ASI said, "Although the pricing scenario and other pertinent data, including an in-depth engineering study, indicated the acquisition of the wells to be a viable purchase, the cost of capital required for financing the purchase would have made the transaction only marginally successful. We therefore have determined this transaction is not in the best interest of the Company or our shareholders at this time. However, we continue to pursue our conservative drilling program along with our operating partners, H&S Production and South Texas Operating Company as we look for other production acquisition opportunities."
Analytical Surveys, Inc., which has historically served the GIS markets, has recently transitioned its focus toward the development of oil and gas exploration and production opportunities. ASI's Energy Division is focused on high-quality exploratory and developmental drilling opportunities, as well as purchases of proven reserves with upside potential attributable to behind-pipe reserves, infill drilling, deeper reservoirs and field extension opportunities. ASI is headquartered in San Antonio, Texas. For more information, visit www.asienergy.com.
This press release contains forward-looking statements that involve risks and uncertainties. The statements contained in this press release that are not purely historical are forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act. When used in this press release, the words "anticipate," "believe," "estimate," "intend" and "expect" and similar expressions are intended to identify such forward-looking statements. Such forward-looking statements include, without limitation, the statements regarding the Company's strategy, future sales, future expenses and future liquidity and capital resources. All forward-looking statements in this press release are based upon information available to the Company on the date of this press release, and the Company assumes no obligation to update any such forward-looking statements. The Company's actual results could differ materially from those discussed in this press release. Factors that could cause or contribute to such differences include, but are not limited to, those discussed in Item 1. Business--"risk factors" and elsewhere in the Company's Annual Report on Form 10-KSB.
ANALYTICAL SURVEYS, INC. Consolidated Balance Sheets (In thousands) December 31, September 30, Assets 2006 2006 (Unaudited) Current assets: Cash and cash equivalents $1,284 $1,357 Accounts receivable, net of allowance for doubtful accounts of $0 and $50 at December 31 and September 30, 2006, respectively 147 1,322 Revenue earned in excess of billings, net -- 49 Prepaid expenses and other 55 93 Deferred financing costs 168 133 Total current assets 1,654 2,954 Oil and natural gas properties and equipment; full cost method of accounting 2,319 2,019 Equipment and leasehold improvements, at cost: Equipment 335 570 Furniture and fixtures 48 98 Leasehold improvements 8 1 391 669 Less accumulated depreciation and amortization (359) (605) Net equipment and leasehold improvements 32 64 Other assets 150 -- Total assets $4,155 $5,037 Liabilities and Stockholders' Equity Current liabilities: Senior secured convertible note, net of discount $1,400 $1,957 Current portion of capital lease obligations 16 16 Billings in excess of revenue earned -- 99 Accounts payable 112 45 Accrued liabilities 74 239 Accrued payroll and related benefits 96 132 Total current liabilities 1,698 2,488 Long-term debt: Capital lease obligations, less current portion 9 13 Total long-term liabilities 9 13 Total liabilities 1,707 2,501 Commitments and contingencies Stockholders' equity: Convertible preferred stock, no par value; authorized 2,500 shares; 280 issued and outstanding at December 31 and September 30, 2006 261 261 Common stock, no par value; authorized 100,000 shares; 3,779 shares issued and outstanding at December 31 and September 30, 2006 36,590 36,341 Accumulated deficit (34,403) (34,066) Total stockholders' equity 2,448 2,536 Total liabilities and stockholders' equity $4,155 $5,037 ANALYTICAL SURVEYS, INC. Consolidated Statements of Operations (In thousands, except per share amounts) (Unaudited) Three Months Ended December 31 2006 2005 Revenues GIS services $240 $1,360 Oil and gas 3 -- Total revenues 243 1,360 Costs and expenses: Salaries, wages and benefits 221 781 Subcontractor costs -- 139 Other general and administrative 186 452 Depreciation, depletion and amortization 5 21 Total operating costs 412 1,393 Loss from operations (169) (33) Other income (expense): Interest expense, net (99) (13) Gain (loss) on sale of assets (28) 3 Other income (expense), net (36) -- Total other income (expense), net (163) (10) Loss before income taxes (332) (43) Provision for income taxes -- -- Net loss (332) (43) Dividends on preferred stock (5) -- Net loss available to common stockholders $(337) $(43) Basic net loss per common share $(0.09) $(0.01) Preferred stock dividends -- -- Basic net loss per common share available to common shareholders $(0.09) $(0.01) Diluted net loss per common share $(0.09) $(0.01) Preferred stock dividends -- -- Diluted net loss per common share available to common shareholders $(0.09) $(0.01) Weighted average common shares: Basic 3,779 2,869 Diluted 3,779 2,869
Web site: http://www.asienergy.com/