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 SEPTEMBER 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 September 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 SEPTEMBER 30, 1998
TABLE OF CONTENTS
PART I FINANCIAL INFORMATION PAGE NO.
- ------ --------------------- --------
Management's Discussion and Analysis of Financial
Condition and Results of Operations 3
Balance Sheets
September 30, 1998 and September 30, 1997 4-5
Statements of Income and Retained Earnings
Nine Months Ended September 30, 1998 and 1997 6
Statements of Cash Flows
Nine Months Ended September 30, 1998 and 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 from oil and gas properties for the nine months ended September 30, 1998,
was down 8.9% from the same period in 1997. The decrease was due to a reduction
in income from seismic income and mineral lease rentals, whereas oil and gas
royalties increased 22.6%. Agriculture income was sup 78.8% over the prior year
and timber income was up 350.5%. Total costs and expenses were up 5.7% due to
forestry expenses and a 2.5% increase in oil and gas production costs. Net
income was down 11.7% due to decreased interest income and increased interest
expense. In the fourth quarter of 1997 the Company used cash investments and
the proceeds from a bank loan to make a $1,670,521 land purchase.
The Company does not use a computer to maintain its books and records. The
Company's shareholder records are maintained by Chase Mellon Shareholder
Services, which has a program underway to be prepared for the year 2000. The
Company does its banking at Bank One, which has a program underway to be
prepared for the year 2000. Walker Louisiana Properties, which manages much of
the Company's properties advises Company they are prepared for the year 2000.
Management believes that the Company's revenues will be sufficient to meet its
existing needs and the needs for its anticipated future operations. The Company
is currently negotiating along with other owners of the Walker Louisiana acreage
to purchase on a pro-rata basis the 25% interest of Fina Oil and Chemical
Company in these lands. Arrangements have been made for term financing.
3
CALCASIEU REAL ESTATE & OIL CO., INC.
BALANCE SHEET
ASSETS
Current Assets September 30, 1998 September 30, 1997
-------------- ------------------ ------------------
Cash and cash equivalents $ 145,659 $ 443,450
Trade Receivables 97,570 47,385
Accrued Interest Income 3,820
Prepaid Income Tax 74,663 7,380
---------- ----------
Total Current Assets $ 321,712 $ 498,215
---------- ----------
Securities Available For Sale $ 264,841 $ 771,679
---------- ----------
Property And Equipment
Less accumulated depreciation, depletion and amortization. $ 16,714 $ 14,009
Timber, less accumulated depletion 380,159 376,106
Land 3,352,003 1,681,482
---------- ----------
Total Property $3,748,876 $2,071,597
---------- ----------
TOTAL $4,335,429 $3,341,491
---------- ----------
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CALCASIEU REAL ESTATE & OIL CO., INC.
BALANCE SHEET
LIABILITIES & SHAREHOLDERS EQUITY
Current Liabilities September 30, 1998 September 30, 1997
------------------- ------------------ ------------------
Current maturities of long-term debt $ 57,829 $
Trade payables & Accrued Expenses 15,123 3,766
Income Taxes Payable 11,978
Current Deferred Tax Liability Net 15,259 13,406
Dividends Payable 59,913 59,918
---------- ----------
Total Current Liabilities $ 148,124 $ 89,068
---------- ----------
Long-Term Debt, less current maturities $ 701,889
----------
Shareholders' Equity
Common Stock, no par value, 3,000,000 shares authorized $ 72,256 $ 72,256
2,100,000 shares issued
Retained earnings 3,543,113 3,306,505
Unrealized appreciation on Investments available for sale
net of taxes of $5,539 in 1998 and $5,027 in 1997 8,350 11,365
---------- ----------
$3,623,719 $3,390,126
Less cost treasury stock (1998 102,898 shares;
1997 102,748 shares) 138,303 137,703
---------- ----------
Total Equity $3,485,416 $3,252,423
---------- ----------
TOTAL $4,335,429 $3,341,491
---------- ----------
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CALCASIEU REAL ESTATE & OIL CO., INC.
STATEMENTS OF INCOME AND RETAINED EARNINGS
Three Months Ended Nine Months Ended
Sept. 30, 1998 Sept. 30, 1997 Sept. 30, 1998 Sept. 30, 1997
REVENUES
Income-primarily from oil and gas properties $ 151,156 $ 159,438 $ 470,872 $ 516,736
Agriculture Income 72,169 33,131 101,541 56,794
Timber Income 8,275 42,536 9,443
---------- ---------- ---------- ----------
TOTAL $ 223,325 $ 200,844 $ 614,949 $ 582,973
---------- ---------- ---------- ----------
COSTS AND EXPENSES
Oil and gas production costs $ 21,347 $ 4,999 $ 54,032 $ 52,700
Farm Costs 2,812 3,513 9,257 8,022
Forestry Expenses 10,323 1,998 15,485 8,783
General and Administrative 24,868 22,983 99,695 100,093
Depreciation and depletion 1,200 1,546 4,451 3,437
---------- ---------- ---------- ----------
TOTAL $ 60,550 $ 35,039 $ 182,920 $ 173,035
---------- ---------- ---------- ----------
OTHER INCOME (EXPENSE):
Interest Income $ 4,333 $ 13,947 $ 13,737 $ 46,744
Dividends on Common Stock 136 1,799 394
Gain on sale of assets 11,401 11,401
Interest Expense (16,524) (49,328)
---------- ---------- ---------- ----------
TOTAL $ (12,191) $ 25,484 $ (33,792) $ 58,539
---------- ---------- ---------- ----------
INCOME OR LOSS BEFORE
INCOME TAXES AND
EXTRAORDINARY CREDITS $ 150,584 $ 191,289 $ 398,237 $ 468,477
PROVISION FOR INCOME TAXES:
Current 41,327 65,916 120,386 153,978
---------- ---------- ---------- ----------
NET INCOME $ 109,257 $ 125,373 $ 277,851 $ 314,499
RETAINED EARNINGS,
BEGINNING OF PERIOD 3,493,764 3,241,049 3,445,006 3,164,703
DIVIDENDS (59,908) (59,917) (179,744) (172,697)
---------- ---------- ---------- ----------
RETAINED EARNINGS END OF
PERIOD $3,543,113 $3,306,505 $3,543,113 $3,306,505
---------- ---------- ---------- ----------
NET INCOME PER COMMON SHARE $.05 $.07 $.14 $.16
6
CALCASIEU REAL ESTATE & OIL CO., INC.
STATEMENTS OF CASH FLOWS
Three Months Ended Nine Months Ended
Sept. 30, 1998 Sept. 30, 1997 Sept. 30, 1998 Sept. 30, 1997
CASH FLOWS FROM
OPERATING ACTIVITIES
Net Income $109,257 $125,373 $ 277,851 $ 314,499
Non cash (income) expenses
included in net income:
Depreciation, depletion and
amortization 1,200 1,546 4,451 3,437
CHANGE IN ASSETS
AND LIABILITIES:
(Increase) decrease in
accounts receivable (35,860) 128,773 (29,531) 26,170
(Increase) decrease in
inventory 13,617 2,850
(Increase) decrease in
prepaid expenses 1,762 10,158
(Increase) decrease in
prepaid income taxes (23,634) 33,938 (74,663)
(Increase) decrease in
accrued interest income (3,820) (7,380) (3,820) (7,380)
Increase (decrease) in trade
payables and accrued interest 11,879 (606) (7,668) (4,080)
(Decrease) in dividends payable (5) (5)
Increase (decrease) in
income tax payable 11,978 (22,817) (249,091)
-------- -------- --------- ---------
Net Cash Provided by (used in) $ 59,017 $293,622 $ 159,177 $ 96,563
-------- -------- --------- ---------
Operating Activities
CASH FLOWS FROM
INVESTING ACTIVITIES:
Net Accretion on Securities $ $ 2,130 $ $ (687)
Purchase of Property and
equipment and reforestation (3,197) (20,924) (14,802) (46,169)
Increase in investment securities (56,123) (250,623)
Maturity of securities 495,500
Sale of Securities, cost 8,160 8,160
Purchase of U. S. Bonds & Notes -------- -------- --------- ---------
Net cash provided (used in)
investing activities $ (3,197) $(66,757) $ (14,802) 206,181
-------- -------- --------- ---------
CASH FLOWS FROM
FINANCING ACTIVITIES:
Principal payments on long-
term borrowing $(12,876) $ $ (40,282) $
Dividends paid (59,908) (59,917) (179,744) (172,697)
Payments to acquire
treasury stock (600) (60)
-------- -------- --------- ---------
Net cash provided by (used in) $(72,784) $(59,917) $(220,626) (172,757)
financing activities -------- -------- --------- ---------
Net increase (decrease) in $(16,964) $166,948 $ (76,251) $ 129,987
cash & cash equivalents
Beginning Cash 162,623 276,502 221,910 313,463
-------- -------- --------- ---------
Ending Cash $145,659 $443,450 $ 145,659 $ 443,450
-------- -------- --------- ---------
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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
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 November 9, 1998
8