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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 March 31, 2001
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
--- ---
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 May 15, 2001, 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
STATEMENTS OF ASSETS, LIABILITIES AND TRUST CORPUS
unaudited as of March 31, 2001 and audited as of December 31, 2000
ASSETS 2001 2000
- ------ ---- ----
Cash equivalents $1,683,135 $170,566
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Royalty and overriding
royalty interests in coal
leases 167,817 167,817
Less accumulated amortization (127,126) (124,364)
-------- --------
Net royalty and overriding
royalty interests in coal leases 40,691 43,453
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Total Assets $1,723,826 $214,019
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LIABILITIES AND TRUST CORPUS
Distributions payable to unit holders $1,683,135 $170,566
Trust corpus: 12,633,432 units of beneficial
interest authorized and outstanding 40,691 43,453
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Total Liabilities and Trust Corpus $1,723,826 $214,019
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The accompanying notes are an integral part
of the financial statements
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KIEWIT ROYALTY TRUST
STATEMENTS OF DISTRIBUTABLE INCOME
unaudited for the three months ended March 31, 2001 and 2000
Three Months Ended March 31
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2001 2000
---- ----
Royalty income $1,688,481 $2,158,466
Interest income 14,636 18,255
Trust expenses (19,982) (19,193)
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Distributable income $1,683,135 $2,157,528
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Distributable income per unit $.133229 $.170779
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STATEMENTS OF CHANGES IN TRUST CORPUS
unaudited for the three months ended March 31, 2001 and 2000
Three Months Ended March 31
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2001 2000
---- ----
Trust corpus as of January 1 $ 43,453 $ 56,642
Amortization of royalty interests (2,762) (1,835)
Distributable income 1,683,135 2,157,528
Distributions to unit holders (1,683,135) (2,157,528)
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Trust corpus as of March 31 $ 40,691 $ 54,807
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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 March 31, 2001 and December 31, 2000
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 accounting principles generally accepted
in the United States of America 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, 2000.
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 of America 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
on a 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 three months ended March 31, 2001 the Trust received a total
of $1,688,481 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 March 31
Mine 2001 2000
- ---- ---- ----
Decker $1,687,081 $2,099,374
Big Horn 1,400 59,092
Spring Creek -- --
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$1,688,481 $2,158,466
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i. DECKER MINE.
Royalty and overriding royalty amounts received by the
Trust from the Decker Mine decreased to $1,687,081 during the first three months
of 2001 compared to $2,099,374 during the same period in 2000. These changes in
royalty and overriding royalty amounts received were due to (i) 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; and (ii)
a reduction in sales tonnage of approximately 20% during the period from which
payment received during the first three months of 2001 is derived compared to
the same period in 2000.
ii. BIG HORN MINE.
No royalties were received from the Big Horn Mine during
the first three months of 2001 compared to $59,092 received during the same
period in 2000. 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. However, the Big Horn Mine will continue
to receive minor rental payments until reclamation of the mine is achieved. In
the past, the amount of such rental payments was included in the figure
representing receipt of royalty and overriding royalty payments. During the
first three months of 2001, the Big Horn Mine received $1,400 in rental
payments.
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iii SPRING CREEK MINE.
No royalties were received from the Spring Creek Mine
during the first three months of 2001 and 2000 because royalties with respect to
this mine are typically paid by the mine operators on an annual basis during the
second half of a calendar year.
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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).
(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
/s/ SUSAN K. ROSBURG
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Susan K. Rosburg
Trust Officer
Dated: May 15, 2001
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