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FORM 10-Q
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarter ended September 30, 2000
Commission File No. 0-10810
KIEWIT ROYALTY TRUST
(Exact name of Registrant as specified in its charter)
Nebraska 47-6131402
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(State or other jurisdiction of (I.R.S. Employer Identification No.)
incorporation or organization)
Trust Division
U.S. Bank National Association
1700 Farnam Street
Omaha, Nebraska 68102
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(Address of Principal Executive Offices)
(402) 348-6000
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(Registrant's telephone no. including area code)
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
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APPLICABLE ONLY TO CORPORATE REGISTRANTS
Indicate the number of shares outstanding of each of the
registrant's classes of common stock, as of the latest practicable date.
As of November 8, 2000, there were 12,633,432 Units of
Beneficial Interest of the registrant outstanding.
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PART I - FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS.
KIEWIT ROYALTY TRUST
STATEMENT OF ASSETS, LIABILITIES AND TRUST CORPUS
unaudited as of September 30, 2000 and audited as of December 31, 1999
ASSETS 2000 1999
- ------ ---- ----
Cash equivalents $2,632,784 $253,524
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Royalty and overriding
royalty interests in coal
leases 167,817 167,817
Less accumulated amortization (120,615) (111,175)
-------- --------
Net royalty and overriding
royalty interests in coal leases 47,202 56,642
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Total Assets $2,679,986 $310,166
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LIABILITIES AND TRUST CORPUS
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Distributions payable to Unit Holders $2,632,784 $253,524
Trust corpus: 12,633,432 units of beneficial
interest authorized and outstanding 47,202 56,642
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Total Liabilities and Trust Corpus $2,679,986 $310,166
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The accompanying notes are an integral part
of the financial statements
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KIEWIT ROYALTY TRUST
STATEMENT OF DISTRIBUTABLE INCOME
unaudited for the three months and nine months ended September 30, 2000 and 1999
Three Months Ended September 30 Nine Months Ended September 30
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2000 1999 2000 1999
---- ---- ---- ----
$2,621,668 $2,557,650 $4,984,252 $4,585,829
Royalty income
Interest income 27,921 18,955 52,234 36,490
Trust expenses (16,805) (13,177) (58,818) (43,566)
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Distributable income $2,632,784 $2,563,428 $4,977,668 $4,578,753
Distributable income per
unit (12,633,432 Units
Outstanding) $.208398 $.202908 $.394008 $.362432
STATEMENT OF CHANGES IN TRUST CORPUS
unaudited for the nine months ended September 30, 2000 and 1999
Nine Months Ended September 30
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2000 1999
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Trust corpus as of January 1 $ 56,642 $ 69,115
Amortization of royalty interests (9,440) (10,610)
Distributable income 4,977,668 4,578,753
Distributions to Unit Holders (4,977,668) (4,578,753)
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Trust corpus as of September 30 $ 47,202 $ 58,505
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The accompanying notes are an integral part
of the financial statements
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KIEWIT ROYALTY TRUST
NOTES TO FINANCIAL STATEMENTS
as of September 30, 2000 and December 31, 1999
BASIS OF PRESENTATION
The accompanying financial statements have been prepared in accordance with
the instructions for Form 10-Q and do not necessarily include all of the
information and footnotes required by generally accepted accounting principles
for complete financial statements. In the Trustee's opinion, all adjustments
necessary for a fair presentation have been included. For further information,
refer to the financial statements and footnotes included in the Trust's annual
report on Form 10-K for the year ended December 31, 1999.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The accompanying unaudited financial statements have been prepared on
the following basis:
(a) The royalty income recorded for a month is the amount received
from the lease holder for such month.
(b) Trust administration expenses are recorded in the month they
accrue.
This basis for reporting royalty income is thought to be the most meaningful
because distributions to unit holders for a month are based on net cash
receipts for such month. However, these statements differ from financial
statements prepared in accordance with accounting principles generally
accepted in the United States because under such principles royalty income for
a month would be based on production for such month without regard to when
royalty payments are received. In addition, amortization of the net royalty
and overriding royalty interests, which is calculated on a units-of-production
basis by lease, is charged directly to trust corpus, since such amount does
not affect distributable income.
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS.
a. MATERIAL CHANGES IN FINANCIAL CONDITION.
Kiewit Royalty Trust is a royalty trust with royalty and
overriding royalty interests in certain coal leases. The Trust was formed for
the purposes of (1) administering the income received from such coal leases
and (2) distributing such income (together with interest earned thereon less
payment of or provision for obligations) to the holders of the Units of
Beneficial Interest.
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b. MATERIAL CHANGES IN RESULTS OF OPERATIONS.
During the nine months ended September 30, 2000 the Trust
received a total of $4,984,252 of royalty and overriding royalty payments. The
following schedule reflects the royalty and overriding royalty payments
received by the Trust in respect of leases at the following mines:
Three Months Ended September 30 Nine Months Ended September 30
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Mine 2000 1999 2000 1999
- ---- ---- ---- ---- ----
Decker $1,488,665 $1,400,606 $3,742,883 $3,317,755
Big Horn 12,399 9,625 120,765 120,655
Spring Creek 1,120,604 1,147,419 1,120,604 1,147,419
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$2,621,668 $2,557,650 $4,984,252 $4,585,829
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i. DECKER MINE.
Royalty and overriding royalty amounts
received by the Trust from the Decker Mine increased to $3,742,883 during the
first nine months of 2000 compared to $3,317,755 during the same period in
1999. Royalty and overriding royalty amounts received by the Trust from the
Decker Mine increased to $1,488,665 during the third quarter of 2000 compared
to $1,400,606 received during the same period in 1999. These changes in
royalty and overriding royalty amounts received were due to changes in the
relative amounts of coal mined under leases bearing high and low overriding
royalty rates per ton, which are a normal result of the execution of a mining
plan encompassing several coal leases bearing different royalty rates.
ii. BIG HORN MINE.
Royalty and overriding royalty amounts
received by the Trust from the Big Horn Mine increased to $120,765 during the
first nine months of 2000 compared to $120,655 received during the same period
in 1999. Royalty and overriding royalty amounts received by the Trust from the
Big Horn Mine increased to $12,399 during the third quarter of 2000 compared
to $9,625 received during the same period in 1999. These changes in royalty
and overriding royalty amounts received were due to changes in the relative
amounts of coal mined under leases bearing high and low overriding royalty
rates per ton, which are a normal result of the execution of a mining plan
encompassing several coal leases bearing different royalty rates. The Big Horn
Mine has reached the end of its production cycle and it is foreseen that the
Trust will receive no further payments deriving from coal production from the
Big Horn Mine.
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iii SPRING CREEK MINE.
Royalty and overriding royalty amounts
received by the Trust from the Spring Creek Mine increased to $1,120,604 during
the first nine months of 2000 compared to $1,147,419 received during the same
period in 1999. Royalty and overriding royalty amounts received by the Trust
from the Spring Creek Mine increased to $1,120,604 during the third quarter of
2000 compared to $1,147,419 received during the same period in 1999. These
changes in royalty and overriding royalty amounts received were due to changes
in the relative amounts of coal mined under leases bearing high and low
overriding royalty rates per ton, which are a normal result of the execution of
a mining plan encompassing several coal leases bearing different royalty rates.
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PART II - OTHER INFORMATION.
ITEM 1. LEGAL PROCEEDINGS.
There are no material pending legal proceedings to which
the Trust is a party or which any of its property is the subject.
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K.
(a) Exhibits
4.1 Kiewit Royalty Trust Indenture dated
May 17, 1982, as amended June 9, 1982
and June 23, 1982 (filed as Exhibit 1
to the Trust's Form 10 filed with the
Securities and Exchange Commission on
December 23, 1982, and incorporated
herein by reference).
4.2 Order dated September 23, 1994, of the
County Court of Douglas County,
Nebraska (filed as Exhibit 2 to the
Trust's Form 10-Q filed with the
Securities and Exchange Commission on
November 14, 1994, and incorporated
herein by reference).
27.1 Financial Data Schedule.
(b) No reports on Form 8-K were filed during
the quarter for which this report is filed.
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SIGNATURE
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.
KIEWIT ROYALTY TRUST
(Registrant)
By: U. S. Bank National
Association in its
capacity as Trustee and
not in its individual
capacity or otherwise
Susan K. Rosburg
Trust Officer
Dated: November 8, 2000
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