CKX Lands (CKX) 10-Q 10 Nov 14 2014 Q3 Quarterly report Financial data

Document_And_Entity_Informatio

Document And Entity Information	9 Months Ended
	Sep. 30, 2014	Nov. 10, 2014
Entity Registrant Name	'CKX LANDS, INC.	'
Entity Central Index Key	'0000352955	'
Current Fiscal Year End Date	'--12-31	'
Entity Filer Category	'Smaller Reporting Company	'
Entity Current Reporting Status	'Yes	'
Entity Voluntary Filers	'No	'
Entity Well-known Seasoned Issuer	'No	'
Entity Common Stock, Shares Outstanding (in shares)	'	1,942,495
Document Type	'10-Q	'
Document Period End Date	30-Sep-14	'
Document Fiscal Year Focus	'2014	'
Document Fiscal Period Focus	'Q3	'
Amendment Flag	'false	'

Balance_Sheets_Current_Period_

Balance Sheets (Current Period Unaudited) (USD $)	Sep. 30, 2014	Dec. 31, 2013
Assets	'	'
Cash and cash equivalents	$4,712,990	$4,529,051
Accounts receivable	176,637	228,014
Prepaid expense and other assets	40,605	29,482
Total current assets	7,050,232	7,207,547
Property and equipment:	'	'
Property and equipment, net	6,490,652	5,839,059
Land	4,957,135	4,531,179
Total assets	13,780,884	13,046,606
Current Liabilities:	'	'
Trade payables and accrued expenses	103,027	76,188
Income taxes payable	8,278	'
Total current liabilities	111,305	76,188
Non-current Liabilities:	'	'
Deferred income tax payable	224,426	181,818
Total liabilities	335,731	258,006
Stockholders’ Equity:	'	'
Common stock, no par value: 3,000,000 shares authorized; 2,100,000 shares issued	72,256	72,256
Retained earnings	13,748,413	13,091,860
Less cost of treasury stock (157,505 shares)	-375,516	-375,516
Total stockholders’ equity	13,445,153	12,788,600
Total liabilities and stockholders’ equity	13,780,884	13,046,606
Timber Properties [Member]	'	'
Property and equipment:	'	'
Property and equipment, net	1,532,290	1,301,639
Building and Equipment [Member]	'	'
Property and equipment:	'	'
Property and equipment, net	1,227	6,241
Long Term [Member]	'	'
Assets	'	'
Certificates of deposit	240,000	'
Short Term [Member]	'	'
Assets	'	'
Certificates of deposit	$2,120,000	$2,421,000

Balance_Sheets_Current_Period_1

Balance Sheets (Current Period Unaudited) (Parentheticals) (USD $)	Sep. 30, 2014	Dec. 31, 2013
Common stock, par value (in dollars per share)	$0	$0
Common stock, shares authorized (in shares)	3,000,000	3,000,000
Common stock, shares issued (in shares)	2,100,000	2,100,000
Treasury stock, shares (in shares)	157,505	157,505
Timber Properties [Member]	'	'
Accumulated depreciation	$784,200	$742,248
Building and Equipment [Member]	'	'
Accumulated depreciation	$89,205	$84,191

Statements_of_Income_Unaudited

Statements of Income (Unaudited) (USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Revenues:	'	'	'	'
Oil and gas	$355,880	$521,256	$1,213,317	$1,368,261
Timber	475,999	27,584	491,088	82,724
Surface	206,315	33,561	421,834	122,988
Total revenues	1,038,194	582,401	2,126,239	1,573,973
Costs and Expenses:	'	'	'	'
Oil and gas production	27,002	33,339	77,103	85,856
Timber	14,716	7,537	15,586	23,486
Agriculture	486	648	1,279	1,470
General and administrative	131,174	122,679	399,121	378,090
Depreciation and depletion	31,481	1,671	46,966	16,507
Total cost and expenses	204,859	165,874	540,055	505,409
Income from operations	833,335	416,527	1,586,184	1,068,564
Other Income (Expense):	'	'	'	'
Interest income	4,379	4,901	12,212	12,915
Net other income (expense)	4,379	4,901	12,212	12,915
Income before income taxes	837,714	421,428	1,598,396	1,081,479
Federal and State Income Taxes:	'	'	'	'
Current	252,497	127,737	491,310	327,796
Deferred	42,609	'	42,609	'
Total income taxes	295,106	127,737	533,919	327,796
Net income	$542,608	$293,691	$1,064,477	$753,683
Per Common Stock (1,942,495 shares):	'	'	'	'
Net income (in dollars per share)	$0.28	$0.15	$0.55	$0.39
Dividends (in dollars per share)	$0.07	$0.07	$0.21	$0.21

Statements_of_Income_Unaudited1

Statements of Income (Unaudited) (Parentheticals)	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Common stock (in shares)	1,942,495	1,942,495	1,942,495	1,942,495

Statements_of_Stockholders_Equ

Statements of Stockholders' Equity (Unaudited) (USD $)	Total	Common Stock [Member]	Retained Earnings [Member]	Treasury Stock [Member]
Balance at Dec. 31, 2012	$12,362,728	$72,256	$12,665,988	$375,516
Net income	753,683	'	753,683	'
Dividends	-407,924	'	-407,924	'
Balance at Sep. 30, 2013	12,708,487	72,256	13,011,747	375,516
Balance at Dec. 31, 2013	12,788,600	72,256	13,091,860	375,516
Net income	1,064,477	'	1,064,477	'
Dividends	-407,924	'	-407,924	'
Balance at Sep. 30, 2014	$13,445,153	$72,256	$13,748,413	$375,516

Statements_of_Cash_Flows_Unaud

Statements of Cash Flows (Unaudited) (USD $)	9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013
Cash Flows From Operating Activities:	'	'
Net Income	$1,064,477	$753,683
Less non-cash (income) expenses included in net income:	'	'
Depreciation, depletion and amortization	46,966	16,507
Deferred income tax expense	42,609	'
Change in operating assets and liabilities:	'	'
(Increase) decrease in current assets	40,254	-45,449
Increase (decrease) in current liabilities	35,116	42,968
Net cash provided from operating activities	1,229,422	767,709
Cash Flows From Investing Activities:	'	'
Maturity proceeds	2,691,000	741,384
Purchases	-2,630,000	-2,421,000
Land, timber, equipment and other assets:	'	'
Purchases	-698,559	-2,499
Net cash provided from (used in) investing activities	-637,559	-1,682,115
Cash Flows From Financing Activities:	'	'
Dividends paid, net of reversion	-407,924	-407,924
Net cash used in financing activities	-407,924	-407,924
Net increase (decrease) in cash and cash equivalents	183,939	-1,322,330
Cash and cash equivalents:	'	'
Beginning	4,529,051	5,832,167
Ending	4,712,990	4,509,837
Supplemental disclosures of cash flow information:	'	'
Interest	'	'
Income taxes	466,000	328,305
Supplemental schedule of non-cash investing and financing activities:	'	'
Net change in recognized and unrecognized unrealized gains (losses) on available-for-sale securities	'	'

Note_1_Basis_of_Presentation

Note 1 - Basis of Presentation	9 Months Ended
	Sep. 30, 2014
Notes to Financial Statements	'
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block]	'
	Note 1:     Basis of Presentation
	The accompanying unaudited financial statements of CKX Lands, Inc. (“Company”) have been prepared in accordance with United States generally accepted accounting principles for interim financial information. They do not include all information and footnotes required by United States generally accepted accounting principles for complete financial statements. Except as described herein, there has been no material change in the information disclosed in the notes to the financial statements included in our financial statements as o
	f
	and for the year ended December 31, 2013. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included in the accompanying financial statements.
	Interim results are not necessarily indicative of results for a full year. These financial statements and accompanying notes should be read in conjunction with the Company’s Form 10-K for the year ended December 31, 2013 and Form 10-Q for the quarter ended September 30, 2013.

Note_2_Income_taxes

Note 2 - Income taxes	9 Months Ended
	Sep. 30, 2014
Notes to Financial Statements	'
Income Tax Disclosure [Text Block]	'
	Note 2:     Income Taxes:
	In accordance with generally accepted accounting principles, the Company has analyzed its filing positions in federal and state income tax returns that remain subject to examination, generally three years after filing. The Company believes that all filing positions are highly certain and that all income tax filing positions and deductions would be sustained upon a taxing jurisdiction’s audit. Therefore, no reserve for uncertain tax positions is required. No interest or penalties have been levied against the Company and none are anticipated.

Note_3_1033_Exchange

Note 3 - 1033 Exchange	9 Months Ended
	Sep. 30, 2014
Notes to Financial Statements	'
Real Estate Disclosure [Text Block]	'
	Note 3:     1033 Exchange:
	During the third quarter of 2014, the Company sold a right of way to a utility company under threat of expropriation for $106,521 and the gain was $106,521. This transaction was structured as a “deferred exchange” pursuant to Paragraph 1033 of the Internal Revenue Code (1033 Exchange) for income tax purposes and as such the gain of $106,521 was deferred for income tax purposes. During September, 2014, the Company purchased 180 acres of timberland located in Jefferson Davis Parish, Louisiana for $279,828 of which $63,000 was the value of timber on the land. The land valued at $216,828 was used as replacement property for the 1033 Exchange deferred gain above. The Company recognized a deferred income tax of $42,609 on this transaction.

Note_3_1033_Exchange_Details_T

Note 3 - 1033 Exchange (Details Textual) (USD $)	1 Months Ended	3 Months Ended	9 Months Ended
	Sep. 30, 2014	Sep. 30, 2014	Sep. 30, 2014	Dec. 31, 2013
Proceeds from Sale of Property Held-for-sale	'	$106,521	'	'
Deferred Gain on Sale of Property	106,521	106,521	106,521	'
Payments to Acquire Timberlands	279,828	'	'	'
Timber	63,000	63,000	63,000	'
Land	4,957,135	4,957,135	4,957,135	4,531,179
Deferred Income Tax Expense (Benefit)	'	42,609	42,609	'
Timberland Located in Jefferson Davis Parish, Louisiana [Member]	'	'	'	'
Area of Land	180	180	180	'
Real Estate 1033 Exchange [Member]	'	'	'	'
Land	$216,828	$216,828	$216,828	'