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CKX LANDS, INC. - Quarter Report: 2003 September (Form 10-Q)

Form 10-Q for period 9/30/2003
Table of Contents

 

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 September 30, 2003

 

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

incorporation or organization)

 

(I.R.S. Employer

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 September 30, 2003, 1,944,745 shares of the registrant’s Common Stock, without par value, were issued and outstanding.

 

As of June 30, 2003, the total market value of all outstanding stock was $10,737,617.

 


 


Table of Contents

CALCASIEU REAL ESTATE & OIL CO., INC.

 

Form 10-Q for the Quarter ended September 30, 2003

 

TABLE OF CONTENTS

 

          Page No.

Part I

   FINANCIAL INFORMATION     
     Management’s Discussion and Analysis of Financial Condition and Results of Operations    3
     Balance Sheets September 30, 2003 and December 31, 2002    4-5
     Statements of Income and Retained Earnings Nine Months Ended September 30, 2003 and September 30, 2002    6
     Statements of Cash Flows Nine Months Ended September 30, 2003 and September 30, 2002    7

Part II

   OTHER INFORMATION     
     Item 6. Exhibits and Reports on Form 8-K    8-11
     Signatures    8-11

 

Reference is made to the Notes to Financial Statements contained in the Company’s Annual Report on Form 10-K

 

The information furnished is not in connection with any sale or offer for sale of, or solicitation of an offer to buy, any securities.

 

 

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Table of Contents

CALCASIEU REAL ESTATE & OIL CO., INC.

 

PART I

 

Item 2.   Management’s Discussion a nd Analysis of Financial Condition and Results of Operations

 

The enclosed financial statements are unaudited with the exception of the Balance Sheet for December 31, 2002. The unaudited interim financial statements reflect all adjustments which are, in the opinion of management, necessary to a fair statement of the results for the interim periods presented. All such adjustments are of a normal recurring nature.

 

Management believes that the Company’s revenues will be sufficient to meet its existing needs and the needs for its anticipated future operations. Long-term trends will depend upon the ability of management to continue to find new production to replace the depletion of the Company’s present minerals as well as increasing the Company’s income from timber and agriculture. Management does not presently anticipate that the Company will incur material additional liabilities in its future operations. The Company participates in no off-balance sheet entities.

 

The Company earned $333,348 net income in the third quarter ended September 30, 2003, up 67.8% from the second quarter of 2003 and up 58.4% from the third quarter of 2002. This was due to increased oil and gas income from royalties and also leases. Oil and gas revenues for the first nine months of 2003 were up 50.5% over the same period in 2002 due to greater production and to higher prices. Timber income was down from 2002, however, a timber contract has be let for cuttings on one company tract and timber income should be higher in the fourth quarter.

 

The Company has applied for listing on the American Stock Exchange. All of the increase in general and administrative expenses is due to the application fee for listing. The Board of Directors adopted a policy of paying 7¢ per quarter per share in dividends as long as financially prudent.

 

 

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Table of Contents

CALCASIEU REAL ESTATE & OIL CO., INC.

 

BALANC E SHEET

 

ASSETS

 

     September 30,
2003


   December 31,
2002


CURRENT ASSETS

             

Cash and cash equivalents

   $ 1,136,867    $ 583,327

Accounts receivables

     219,320      152,373

Prepaid income tax & expenses

     15,093      64,793

Inventory, crops

     0      10,125
    

  

Total Current Assets

     1,371,280      810,618
    

  

SECURITIES AVAILABLE FOR SALE

     882,864      1,361,123
    

  

PROPERTY AND EQUIPMENT,

             

Less accumulated depreciation, Depletion and amortization

     88,521      91,949

Timber, less accumulated depletion

     517,065      484,161

Land

     3,904,419      3,904,851
    

  

Total Property

     4,510,005      4,480,961
    

  

TOTAL

   $ 6,764,149    $ 6,652,702
    

  

 

 

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Table of Contents

CALCASIEU REAL ESTATE & OIL CO., INC.

 

BALANCE SHEET

 

LIABILITIES & STOCKHOLDERS’ EQUITY

 

    

September 30,

2003


  

December 31,

2002


CURRENT LIABILITIES          

Trade payables and accrued expenses

   $ 5,881    $ 8,863

Dividends payable

     0      195,742

Current deferred tax liability, net

     33,260      23,370
    

  

Total Current Liabilities

     39,141      227,975
    

  

STOCKHOLDER’S EQUITY

             

Common Stock, no par value 3,000,000 shares authorized; 2,100,000 shares issued

   $ 72,256    $ 72,256

Retained earnings

     6,996,872      6,642,737

Accumulated other comprehensive income

     31,396      16,563
    

  

       7,100,524      6,731,556

Less cost treasury stock (2003 – 155,255 shares; 2002 – 144,956 shares)

     375,516      306,829
    

  

Total Equity

     6,725,008      6,424,727
    

  

TOTAL

   $ 6,764,149    $ 6,652,702
    

  

 

 

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Table of Contents

CALCASIEU REAL ESTATE & OIL CO., INC.

 

STATEMENTS OF INCOME AND RETAINED EARNINGS

 

     Three Months Ended

    Nine Months Ended

 
    

September 30,

2003


   

September 30,

2002


   

September 30,

2003


   

September 30,

2002


 

REVENUES

                                

Income-primarily from oil and gas properties

   $ 525,152     $ 274,455     $ 1,203,895     $ 800,108  

Agriculture Income

     41,803       61,355       143,839       138,690  

Timber Income

     19,714       35,427       52,228       112,517  
    


 


 


 


TOTAL

   $ 586,669     $ 371,237     $ 1,399,962     $ 1,051,315  
    


 


 


 


COSTS AND EXPENSES

                                

Oil and gas production costs

   $ 26,256     $ 17,691     $ 61,877     $ 53,559  

Agriculture expense

     6,552       2,444       10,389       8,299  

Forestry expenses

     13,441       27,137       25,797       37,774  

General and Administrative

     70,263       36,307       201,073       166,526  

Depreciation and depletion

     2,360       1,822       6,736       5,776  
    


 


 


 


TOTAL

   $ 118,872     $ 85,401     $ 305,872     $ 271,934  
    


 


 


 


OTHER INCOME (EXPENSE)

                                

Interest Income

   $ 3,830     $ 7,902     $ 12,316     $ 17,653  

Dividends

     9,286       11,498       25,119       22,764  
    


 


 


 


TOTAL

   $ 13,116     $ 19,400     $ 37,435     $ 40,417  
    


 


 


 


INCOME OR LOSS BEFORE INCOME TAXES AND EXTRAORDINARY CREDITS

   $ 480,913     $ 305,236     $ 1,131,525     $ 819,798  

PROVISION FOR INCOME TAXES:

                                

Current

     147,565       94,785       347,717       254,972  
    


 


 


 


NET INCOME OR (LOSS)

   $ 333,348     $ 210,451     $ 783,808     $ 564,826  

RETAINED EARNINGS, BEGINNING OF PERIOD

     6,799,920       6,554,276       6,642,737       6,387,579  

DIVIDENDS

     (136,396 )     (97,991 )     (429,673 )     (285,669 )
    


 


 


 


RETAINED EARNINGS, END OF PERIOD

   $ 6,996,872     $ 6,666,736     $ 6,996,872     $ 6,666,736  
    


 


 


 


NET INCOME PER COMMON SHARE

   $ .17     $ .11     $ .40     $ .29  

 

OTHER COMPREHENSIVE INCOME

 

     Three Months Ended

    Nine Months Ended

 
    

September 30,

2003


   

September 30,

2002


   

September 30,

2003


  

September 30,

2002


 

Other comprehensive income

                               

Beginning of Period

   $ 41,228     $ 31,159     $ 16,563    $ 26,059  

Unrealized gain (loss) on securities available for sale, net of taxes

     (9,832 )     (25,653 )     14,833      (20,553 )
    


 


 

  


Other comprehensive income

                               

End of Period

   $ 31,396     $ 5,506     $ 31,396    $ 5,506  
    


 


 

  


 

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Table of Contents

CALCASIEU REAL ESTATE & OIL CO., INC.

 

STATEMENTS OF CASH FLOWS

 

    

Nine Months Ended


 
    

September 30,

2003


   

September 30,

2002


 

CASH FLOWS FROM OPERATING ACTIVITIES:

                

Net income (or Loss)

   $ 783,808     $ 564,826  

Non cash (income) expenses included in net income:

                

Depreciation, depletion and amortization

     6,736       5,776  

CHANGE IN ASSETS AND LIABILITIES:

                

(Increase) decrease in accounts receivable

     (66,947 )     (106,168 )

(Increase) decrease in inventory

     10,125       11,042  

(Increase) decrease in prepaid expenses

     3,680       3,309  

(Increase) decrease in prepaid income taxes

     46,020       144,999  

Increase (decrease) in trade payables

     (2,982 )     7,462  
    


 


Net Cash Provided by Operating Activities

   $ 780,440     $ 631,246  
    


 


CASH FLOWS FROM INVESTING ACTIVITIES:

                

Maturity of securities available for sale

   $ 1,301,887     $ 694,073  

Purchase of securities available for sale

     (798,905 )     (1,695,365 )

Purchase of Property and equipment and reforestation

     (36,212 )     (19,931 )

Land (purchase) or refund

     432       (12,737 )
    


 


Net Cash Provided (used in) Investing Activities

   $ 467,202     $ (1,033,960 )
    


 


CASH FLOWS FROM FINANCING ACTIVITIES:

                

Dividends paid

   $ (625,415 )   $ (481,406 )

Payments to acquire treasury stock

     (68,687 )     0  
    


 


Net cash provided by (used in) financing activities

   $ (694,102 )   $ (481,406 )
    


 


Net increase (decrease) in cash & cash equivalents

   $ 553,540     $ (884,120 )

CASH AND CASH EQUIVALENTS:

                

Beginning

     583,327       1,419,084  
    


 


Ending

   $ 1,136,867     $ 534,964  
    


 


 

 

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Table of Contents

CALCASIEU REAL ESTATE & OIL CO., INC.

 

PART II OTHER INFORMATION

 

Item 6.   EXHIBITS AND REPORTS ON FORM 8-K.

 

  (A) Exhibits

 

Exhibit 31.1

 

Exhibit 31.2

 

Exhibit 32

 

  (B) Reports on Form 8-K

 

None

 

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 under-signed 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: October 28, 2003

 

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