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, 1998 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: (318) 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, 1998, 1,997,102 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, 1997
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, 1998 and June 30, 1997 4-5
Statements of Income and Retained Earnings
Six Months Ended June 30, 1998 and June 30, 1997 6
Statements of Cash Flows
Six Months Ended June 30, 1998 and June 30, 1997 7
PART II OTHER INFORMATION
- ------- -----------------
Item 6. Exhibits and Reports on Form 8-K 8
SIGNATURES 8
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
Income for the six months ended June 30, 1998, was down 10.7% from the same
period in 1997. Gross income was up 2.5% due to increases in agriculture and
timber income. Income from oil and gas properties was down 10.5% due to
decreases in oil and gas prices. Operation expenses were down 11.3% due to
lower oil and gas production costs. Net interest income went from positive
$32,797 to negative $23,400 due to monies borrowed to purchase land.
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. Long-term trends will be more dependent
on the Company's development of income from its properties, such as timber
sales, than from oil and gas operations.
3
CALCASIEU REAL ESTATE & OIL CO., INC.
-------------------------------------
BALANCE SHEET
-------------
ASSETS
------
CURRENT ASSETS JUNE 30, 1998 JUNE 30, 1997
Cash and cash equivalents $ 162,623 $ 276,502
Accounts receivables 61,710 176,158
Prepaid income taxes 51,029 33,938
---------- ----------
Total current assets $ 275,362 $ 486,598
---------- ----------
SECURITIES AVAILABLE FOR SALE $ 280,772 $ 726,027
---------- ----------
PROPERTY AND EQUIPMENT, less
accumulated depreciation, depletion and
amortization. $ 14,717 $ 15,963
Timber, less accumulated depletion 380,159 374,514
Land 3,352,003 1,661,742
---------- ----------
Total Property $3,746,879 $2,052,219
---------- ----------
TOTAL $4,303,013 $3,264,844
---------- ----------
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CALCASIEU REAL ESTATE & OIL CO., INC.
-------------------------------------
BALANCE SHEET
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LIABILITIES & STOCKHOLDERS' EQUITY
----------------------------------
CURRENT LIABILITIES JUNE 30, 1998 JUNE 30, 1997
Current maturities of long-term debt $ 54,784 $
Trade payables and accrued expenses 3,244 4,372
Dividends payable 59,918 59,918
Current deferred tax liability, net 21,472 13,475
---------- ----------
Total Current Liabilities $ 139,418 $ 77,765
---------- ----------
LONG-TERM DEBT, less correct maturities $ 717,810
----------
SHAREHOLDERS' EQUITY
Common Stock, no par value, 3,000,000 shares
authorized; 2,100,000 shares issued $ 72,256 $ 72,256
Retained earnings 3,493,764 3,241,049
Unrealized appreciation on investments
available for sale, net of tax of $7,756 in 1997
and $11,820 in 1998 18,068 11,477
---------- ----------
$3,584,088 $3,324,782
Less cost treasury stock (1998 102,898 shares:
1997 102,748 shares) 138,303 137,703
---------- ----------
Total Equity $3,445,785 $3,187,079
---------- ----------
TOTAL $4,303,013 $3,264,844
---------- ----------
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CALCASIEU REAL ESTATE & OIL CO., INC.
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STATEMENTS OF INCOME AND RETAINED EARNINGS
------------------------------------------
THREE MONTHS ENDED SIX MONTHS ENDED
June 30, 1998 June 30, 1997 June 30, 1998 June 30, 1997
REVENUES
Income-primarily from oil and gas properties $ 131,264 $ 236,255 $ 319,716 $ 357,298
Agricultural Income 3,247 7,558 29,372 23,663
Timber Income 28,394 1,168 42,536 1,168
---------- ---------- ---------- ----------
TOTAL $ 162,905 $ 244,981 $ 391,624 $ 382,129
---------- ---------- ---------- ----------
COSTS AND EXPENSES
Forestry expenses $ 2,857 $ 6,474 $ 5,162 $ 6,785
Agriculture expense 3,848 3,223 6,445 4,509
Oil and gas production costs 5,100 24,645 27,510 47,701
General and Administrative 26,158 21,325 80,002 77,110
Depreciation and depletion 1,768 991 3,251 1,891
---------- ---------- ---------- ----------
TOTAL $ 39,731 $ 56,658 $ 122,370 $ 137,996
---------- ---------- ---------- ----------
OTHER INCOME (EXPENSE):
Interest $ 4,652 $ 16,067 $ 9,404 $ 32,797
Dividends on Common Stock 137 1,799 258
Interest Expense (16,442) (32,804)
---------- ---------- ---------- ----------
TOTAL $ (11,790) $ 16,204 $ (21,601) $ 33,055
---------- ---------- ---------- ----------
INCOME OR LOSS BEFORE
INCOME TAXES AND
EXTRAORDINARY CREDITS $ 111,384 $ 204,527 $ 247,653 $ 277,188
PROVISION FOR INCOME TAXES:
Current 41,424 68,465 79,060 88,062
---------- ---------- ---------- ----------
NET INCOME OR (LOSS) $ 69,960 $ 136,062 $ 168,593 $ 189,126
RETAINED EARNINGS,
BEGINNING OF PERIOD 3,483,721 3,157,849 3,445,006 3,164,703
DIVIDENDS (59,917) (52,862) (119,835) (112,780)
---------- ---------- ---------- ----------
RETAINED EARNINGS END OF
PERIOD $3,493,764 $3,241,049 $3,493,764 $3,241,049
---------- ---------- ---------- ----------
NET INCOME PER COMMON SHARE $.03 $.07 $.08 $.09
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CALCASIEU REAL ESTATE & OIL CO., INC.
-------------------------------------
STATEMENTS OF CASH FLOWS
------------------------
Three Months Ended Six Months Ended
June 30, 1998 June 30, 1997 June 30, 1998 June 30, 1997
CASH FLOWS FROM
OPERATING
ACTIVITIES
Net Income (or Loss) $ 69,960 $ 136,062 $ 168,593 $ 189,126
Non cash (income) expenses
included in net income:
Depreciation, depletion and
amortization 1,768 991 3,251 1,891
CHANGE IN ASSETS
AND LIABILITIES:
(Increase) decrease in
accounts receivable 19,185 (117,893) 6,329 (102,603)
(Increase) decrease in
inventory 13,617 2,850
(Increase) decrease in
prepaid expenses 1,762 10,158
(Increase) decrease in
prepaid income taxes (31,482) 5,396 (51,029) (33,938)
Increase (decrease) in trade
and interest payables (17,219) (35,654) (19,547) (3,474)
Increase (decrease) in
income tax payable (22,817) (261,069)
_________ _________ _________ ________
NET CASH PROVIDED BY $ 42,212 $ (11,098) $ 100,159 $(197,059)
-------- --------- --------- ---------
OPERATING ACTIVITIES
CASH FLOWS FROM
INVESTING ACTIVITIES:
Net Accretion on Securities $ (2,846) $ $ (2,817)
Purchase of Property and
equipment and reforestation (1,390) (10,819) (11,605) (25,245)
Maturity of securities 495,500
Purchase of Securities (194,500) (194,500)
-------- --------- --------- ---------
NET INVESTING ACTIVITIES $ (1,390) $(208,165) $ (11,605) $ 272,938
-------- --------- --------- ---------
CASH FLOWS FROM
FINANCING ACTIVITIES:
Principal payments on long-
term borrowing $(13,115) $ ($27,406) $
Dividends paid (59,917) (52,862) (119,835) (112,780)
Payments to acquire
treasury stock (600) (600) (60)
-------- --------- --------- ---------
Net cash provided by (used in)
financing activities $(73,632) $ (52,862) $(147,841) $(112,840)
________ _________ _________ ________
Net increase (decrease) in
cash & cash equivalents $(32,810) $(272,125) $ (59,287) $ (36,961)
CASH AND CASH EQUIVALENTS:
Beginning 195,433 548,627 221,910 313,463
-------- --------- --------- ---------
Ending $162,623 $ 276,502 $ 162,623 $ 276,502
-------- --------- --------- ---------
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CALCASIEU REAL ESTATE & OIL CO., INC.
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PART II OTHER INFORMATION
-------------------------
Item 6. EXHIBITS AND REPORTS ON FORM 8-K
(A) Exhibits
Exhibit 27
Financial Data Schedule
(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 August 3, 1998
8