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 JUNE 30, 2001 COMMISSION FILE NUMBER 0-9669
CALCASIEU REAL ESTATE & OIL CO., INC.
(Exact name of registrant as specified in its charter)
Louisiana 72-0144530
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
One Lakeside Plaza
Lake Charles, LA 70601
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (337) 494-4256
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
--- ---
Securities registered pursuant to Section 12(b) for the Act:
TITLE OF EACH CLASS NAME OF EACH EXCHANGE
ON WHICH REGISTERED
-------------------
None Not applicable
Securities registered pursuant to Section 12(g) of the Act:
COMMON STOCK, NO PAR VALUE
(Title of class)
_______________________________
As of June 30, 2001, 1,955,044 shares of the registrant's Common Stock, without
par value, were issued and outstanding.
CALCASIEU REAL ESTATE & OIL CO., INC.
FORM 10-Q FOR THE QUARTER ENDED JUNE 30, 2001
TABLE OF CONTENTS
PART I FINANCIAL INFORMATION PAGE NO.
- ------ --------------------- --------
Management's Discussion and Analysis of Financial
Condition and Results of Operations 3
Balance Sheets
June 30, 2001 and June 30, 2000 4-5
Statements of Income and Retained Earnings
Six Months Ended June 30, 2001 and June 30, 2000 6
Statements of Cash Flows
Six Months Ended June 30, 2001 and June 30, 2000 7
PART II OTHER INFORMATION
- ------- -----------------
Item 4. Submission of Matters to a Vote of Security
Holders 8
Item 6. Exhibits and Reports on Form 8-K 9
SIGNATURES 9
REFERENCE IS MADE TO THE NOTES TO FINANCIAL STATEMENTS CONTAINED IN
THE COMPANY'S ANNUAL REPORT ON FORM 10
_____________________________________________________________________
THE INFORMATION FURNISHED IS NOT IN CONNECTION WITH ANY SALE OR OFFER
FOR SALE OF, OR SOLICITATION OF AN OFFER TO BUY, ANY SECURITIES.
2
CALCASIEU REAL ESTATE & OIL CO., INC.
PART I
ITEM 2. Management's Discussion and Analysis of
Financial Condition and Results of Operations
Net income for the six months ended June 30, 2001, was down 32.9% over the same
period in 2000 and net income for the second quarter was down 46.8% compared to
the second quarter of 2000. The decrease was almost entirely attributable to
reduced production from the North English Bayou Field due to depletion. Timber
income was also down due to the timing of cuttings. All expenses were lower in
2001 than the expenses in 2000 except for general and administrative expense,
which were up 49.4% for the six months in 2001 compared to the same period in
2000. Of the $49,829 increase in general and administrative expense, 71.8% was
in legal expense defending Company's ownership of minerals on a small pierce of
property.
During July three new oil and gas discoveries were completed in which the
Company has a small royalty interest. The wells are located in Beauregard,
Calcasieu and Cameron Parishes. The Company should begin receiving income in
the third and fourth quarters of 2001. Projected income is unknown at this
time, but it will not begin to offset the depletion experienced in the North
English Bayou Field. Also in July, the Company purchased 320 acres of
timberland for $228,910. Minerals were reserved by the sellers, but there is no
mineral activity on the property at this time.
Management believes that the company's revenues will be sufficient to meet its
existing needs and the needs for its anticipated future operations. Management
does not presently anticipate that the Company will incur material additional
liabilities in its future operations.
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CALCASIEU REAL ESTATE & OIL CO., INC.
BALANCE SHEET
ASSETS
June 30, 2001 June 30, 2000
CURRENT ASSETS
Cash and cash equivalents $1,414,993 $ 951,423
Accounts receivables 209,511 297,454
Prepaid income taxes 65,679 11,620
---------- ----------
Total current assets $1,690,183 $1,260,497
---------- ----------
SECURITIES AVAILABLE FOR SALE $ 381,209 $ 76,267
---------- ----------
PROPERTY AND EQUIPMENT, less
accumulated depreciation, depletion and
amortization. $ 93,603 $ 96,063
Timber, less accumulated depletion 418,139 478,793
Land 3,615,900 3,615,791
---------- ----------
Total Property $4,127,642 $4,190,647
---------- ----------
TOTAL $6,199,034 $5,527,411
---------- ----------
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CALCASIEU REAL ESTATE & OIL CO., INC.
BALANCE SHEET
LIABILITIES & STOCKHOLDERS' EQUITY
June 30, 2001 June 30, 2000
CURRENT LIABILITIES
Trade payables and accrued expenses $ 2,558 $ 15,996
Dividends payable 97,977 98,482
Current deferred tax liability, net 35,216 20,173
---------- ----------
Total Current Liabilities $ 135,751 $ 134,651
---------- ----------
SHAREHOLDERS' EQUITY
Common Stock, no par value, 3,000,000 shares
authorized; 2,100,000 shares issued $ 72,256 $ 72,256
Retained earnings 6,266,506 5,544,957
Accumulated other comprehensive income 31,350 12,086
---------- ----------
$6,370,112 $5,629,299
Less cost treasury stock (2001 144,956 shares;
2000 130,358 shares) 306,829 236,509
---------- ----------
Total Equity $6,063,283 $5,392,790
---------- ----------
TOTAL $6,199,034 $5,527,441
---------- ----------
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CALCASIEU REAL ESTATE & OIL CO., INC.
STATEMENTS OF INCOME AND RETAINED EARNINGS
Three Months Ended Six Months Ended
June 30, 2001 June 30, 2000 June 30, 2001 June 30, 2000
REVENUES
Income-primarily from oil and gas properties $ 266,584 $ 491,436 $ 687,558 $ 971,928
Agricultural Income 19,108 4,878 71,024 60,571
Timber Income 62,818 98,085 62,960 147,895
---------- ---------- ---------- ----------
TOTAL $ 348,510 $ 594,399 $ 821,542 $1,180,394
---------- ---------- ---------- ----------
COSTS AND EXPENSES
Forestry expenses $ 6,441 $ 8,392 $ 10,315 $ 23,109
Agriculture expense 383 1,467 2,944 4,210
Oil and gas production costs 11,315 21,763 31,302 49,528
General and Administrative 74,228 33,472 150,777 100,948
Depreciation and depletion 4,891 6,154 6,648 9,895
---------- ---------- ---------- ----------
TOTAL $ 97,258 $ 71,248 $ 201,986 $ 187,690
---------- ---------- ---------- ----------
OTHER INCOME (EXPENSE):
Interest $ 17,810 $ 10,712 $ 27,099 $ 17,375
Dividends on Common Stock 5,146 11,350 2,159
Gain on sale of land 4,991 4,991
---------- ---------- ---------- ----------
TOTAL $ 27,947 $ 10,712 $ 43,440 $ 19,534
---------- ---------- ---------- ----------
INCOME OR LOSS BEFORE
INCOME TAXES AND
EXTRAORDINARY CREDITS $ 279,199 $ 533,863 $ 662,996 $1,012,238
PROVISION FOR INCOME TAXES:
Current 88,199 174,798 205,175 329,700
---------- ---------- ---------- ----------
NET INCOME OR (LOSS) $ 191,000 $ 359,065 $ 457,821 $ 682,538
RETAINED EARNINGS,
BEGINNING OF PERIOD 6,173,482 5,284,174 6,004,642 5,059,618
DIVIDENDS (97,976) (98,282) (195,957) (197,199)
---------- ---------- ---------- ----------
RETAINED EARNINGS,
END OF PERIOD $6,266,506 $5,544,957 $6,266,506 $5,544,957
---------- ---------- ---------- ----------
NET INCOME PER COMMON SHARE $.09 $.18 $.23 $.34
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CALCASIEU REAL ESTATE & OIL CO., INC.
STATEMENTS OF CASH FLOWS
Three Months Ended Six Months Ended
June 30, 2001 June 30, 2000 June 30, 2001 June 30, 2000
CASH FLOWS FROM OPERATING ACTIVITIES
Net Income (or Loss) $ 191,000 $ 359,065 $ 457,821 $ 682,538
Non cash (income) expenses included in net income:
Depreciation, depletion and amortization 4,891 6,154 6,648 9,895
CHANGE IN ASSETS AND LIABILITIES:
(Increase) decrease in accounts receivable 7,192 (114,933) (80,291) 155,501
(Increase) decrease in inventory 4,427 10,281
(Increase) decrease in prepaid expenses 3,309 674
(Increase) decrease in prepaid income taxes (65,679) (11,620) 9,199 (11,620)
Increase (decrease) in trade and interest payables (21,922) (7,649) (12,524) 4,822
Increase (decrease) in income tax payable (42,098) (171,509) (151,282)
---------- --------- ---------- ---------
Net Cash Provided by Operating Activities $ 73,384 $ 59,508 $ 388,589 $ 700,809
---------- --------- ---------- ---------
CASH FLOWS FROM INVESTING ACTIVITIES:
Maturity of securities available for sale $ 491,833 $ 688,654
Reforestation expenditure (6,829)
---------- ----------
$ 491,833 $ 681,825
---------- ----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Dividends paid $ (97,981) $ 200 $ (293,484) $(197,655)
Payments to acquire treasury stock (23,552) (23,552)
---------- --------- ---------- ---------
Net cash provided by (used in) financing activities $ (97,981) $ (23,352) $ (293,484) $(221,207)
---------- --------- ---------- ---------
Net increase (decrease) in cash & cash equivalents $ 467,236 $ 36,156 $ 776,930 $ 479,602
CASH AND CASH EQUIVALENTS:
Beginning 947,757 915,267 638,063 471,821
---------- --------- ---------- ---------
Ending $1,414,993 $ 951,423 $1,414,993 $ 951,423
---------- --------- ---------- ---------
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CALCASIEU REAL ESTATE & OIL CO., INC.
PART II OTHER INFORMATION
ITEM 4. Submission of Matters to a Vote of Security Holders.
(a) The Annual Meeting was held on April 26, 2001
(b) The following were elected Directors:
Henry C. Alexander
William D. Blake
Troy A. Freund
Arthur Hollins, III
Laura A. Leach
Frank O. Pruitt
B. James Reaves, III
Mary W. Savoy
Charles D. Viccellio
No other director's term of office continued after the meeting.
(c) There were 1,394,400 shares represented at the meeting. The Company
furnished its security holders proxy soliciting material pursuant
to Regulation 14 under the Act and there was no solicitation in
opposition to either the nominees for directors nor any other
matters.
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CALCASIEU REAL ESTATE & OIL CO., INC.
PART II OTHER INFORMATION
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(A) Exhibits
None
(B) Reports on Form 8-K
None
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
CALCASIEU REAL ESTATE & OIL CO., INC.
(Registrant)
/s/ Arthur Hollins, III
_________________________________________
Arthur Hollins, III
President
/s/ Charles D. Viccellio
_________________________________________
Charles D. Viccellio
Vice-President and Secretary
Dated July 31, 2001
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