CKX LANDS, INC. - Quarter Report: 2011 June (Form 10-Q)

 

 

 

 

 

Louisiana		72-0144530
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)
700 Pujo Street, Suite 200
Lake Charles, LA		70601
(Address of principal executive offices)		(Zip Code)
	(337) 493-2399
	(Registrant’s telephone number)

 

 

Large accelerated filer	o	Accelerated filer	o
Non-accelerated filer	o	Smaller reporting company	x

                                                                                                                                                                 
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).Yes o No   x

 

 

			Page
Part I. Financial Information
	Item 1.	Financial Statements
	a.	Balance Sheets as of June 30, 2011 and December 31, 2010 (Unaudited)	1
	b.	Statements of Income for the quarter and six months ended June 30, 2011 and 2010 (Unaudited)	2
	c.	Statements of Changes in Stockholders’ Equity for the six months ended June 30, 2011 and 2010 (Unaudited)	3
	d.	Statements of Cash Flows for the six months ended June 30, 2011 and 2010 (Unaudited)	4
	e.	Notes to Financial Statements (Unaudited)	5-6
	Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	7-8
	Item 4.	Controls and Procedures	8
Part II. Other Information
	Item 6.	Exhibits	9
		Signature	10

 

 

Item 1.

FINANCIAL STATEMENTS

 

	2011				2010
Assets
Current Assets:
Cash and cash equivalents		$	4,582,288			$	5,182,316
Certificates of deposit			495,625				240,000
Accounts receivable			172,528				149,795
Prepaid expense and other assets			139,517				114,232
Total current assets			5,389,958				5,686,343
Securities available for sale			799,044				783,772
Certificates of deposit			--				250,000
Property and equipment:
Building and equipment less accumulated depreciation of  $76,321 and $72,794, respectively			13,666				17,193
Timber less accumulated depletion of $650,336 and $632,565, respectively			801,567				557,253
Land			3,522,989				3,192,491
Total property and equipment, net			4,338,222				3,766,937
Total assets		$	10,527,224			$	10,487,052
Liabilities and Stockholders’ Equity
Current Liabilities:
Trade payables and accrued expenses		$	49,230			$	58,520
Income tax payable:
Current			--				469
Deferred			9,294				--
Total current liabilities			58,524				58,989
Noncurrent Liabilities:
Deferred income tax payable			181,818				181,818,
Total liabilities			240,342				240,807
Stockholders’ Equity:
Common stock, no par value: 3,000,000 shares authorized; 2,100,000 shares issued			72,256				72,256
Retained earnings			10,581,080				10,543,924
Accumulated other comprehensive income			9,062				5,581
Less cost of treasury stock (157,505 shares)			(375,516	)			(375,516	)
Total stockholders’ equity			10,286,882				10,246,245
Total liabilities and stockholders’ equity		$	10,527,224			$	10,487,052

The accompanying notes are an integral part of these financial statements.

 

		Quarter Ended June 30,								Six Months Ended June 30,
		2011				2010				2011				2010
Revenues:
Oil and gas		$	338,834			$	404,191			$	634,613			$	740,762
Agriculture			16,738				20,761				24,464				43,567
Timber			--				112,472				3,439				114,125
Total revenues			355,572				537,424				662,516				898,454
Costs and Expenses:
Oil and gas production			28,256				27,932				51,244				55,734
Agriculture			2,455				2,230				2,962				2,949
Timber			4,986				11,948				14,637				12,525
General and administrative			128,187				111,012				219,843				202,549
Depreciation and depletion			738				66,055				21,298				69,244
Total cost and expenses			164,622				219,177				309,984				343,001
Income from operations			190,950				318,247				352,532				555,453
Other Income / (Expense):
Interest income			10,276				8,706				20,469				18,394
Dividend income			4,664				13,089				9,527				25,297
Gain/(Loss) on securities available-for-sale			--				28,526				--				28,526
Gain on sale of land and other assets			--				--				306				255
Net other income / (expense)			14,940				50,321				30,302				72,472
Income before income taxes			205,890				368,568				382,834				627,925
Federal and state income taxes:
Current			54,537				117,151				99,531				190,548
Deferred			(12,575	)			(16,727	)			(12,427	)			(15,330	)
Total income taxes			41,962				100,424				87,104				175,218
Net Income		$	163,928			$	268,144			$	295,730			$	452,707
Per Common Stock (1,942,495 shares):
Net Income		$	0.08			$	0.14			$	0.15			$	0.23
Dividends		$	0.07			$	0.07			$	0.14			$	0.14

The accompanying notes are an integral part of these financial statements.

 

 

The accompanying notes are an integral part of these financial statements

 

 

		2011				2010
Cash Flows From Operating Activities:
Net Income		$	295,730			$	452,707
Less non-cash (income) expenses included in net income:
Depreciation, depletion and amortization			21,298				69,244
Deferred income tax expense			(12,427	)			(15,330	)
Less non-operating activities:
Unrealized (gain) loss on securities			--				(28,526	)
Gain from sale of land and other assets			(306	)			(255	)
Change in operating assets and liabilities:
(Increase) decrease in current assets			(88,587	)			(108,191	)
Increase (decrease) in current liabilities			(9,290	)			72,313
Net cash provided from operating activities			206,418				441,962
Cash Flows From Investing Activities:
Certificates of Deposit:
Maturity proceeds			--				240,000
Purchases			(5,625	)			(250,000	)
Securities:
Sales proceeds			--				153,359
Purchases			(9,470	)			(308,111	)
Proceeds from dissolution of partnership			--				255
Land, timber, equipment and other assets:
Sales proceeds			167				--
Purchases			(532,944	)			(601,079	)
Net cash provided from (used in) investing activities			(547,872	)			(765,576	)
Cash Flows From Financing Activities:
Dividends paid, net of reversion			(258,574	)			(271,949	)
Net cash used in financing activities			(258,574	)			(271,949	)
Net increase (decrease) in cash and cash equivalents			(600,028	)			(595,563	)
Cash and cash equivalents:
Beginning			5,182,316				3,977,106
Ending		$	4,582,288			$	3,381,543
Supplemental disclosures of cash flow information:
Cash payments for:
Interest		$	--			$	--
Income taxes		$	112,160			$	133,500
Supplemental schedule of non-cash investing and financing activities:
Net change in recognized and unrecognized unrealized  gains (losses) on available-for-sale securities		$	5,802			$	(83,853	)

 

 

Note 1.

Basis of Presentation

Note 2.

Disclosures About Fair Value:

 

 

 

 

 

 

 

Note 3:

Income taxes:

Note 4:

Land and Timber Purchases:

 

 

 

		Six Months Ended 06/30/11				Six Months Ended 06/30/10
Net gas produced (MCF)			32,665				33,502
Average gas sales price (per MCF)(1)		$	4.74			$	5.59
Net oil produced (Bbl)(2)			4,064				5,259
Average oil sales price (per Bbl)(1,2)		$	100.05			$	77.00

 

 

 

 

Item 3.

Not applicable.

 

Item 4.

CONTROLS AND PROCEDURES

 

 

 

 

Item 1 – 5.

Not Applicable

 

Item 6.

EXHIBITS

 

3.1

Restated/Articles of Incorporation of the Registrant are incorporated by reference to Exhibit (3)-1 to Form 10 filed April 29, 1981.

3.2

Amendment to Articles of Incorporation of the Registrant is incorporated by reference to Exhibit (3.2) to Form 10-K for year ended December 31, 2003.

3.3

By-Laws of the Registrant are incorporated by reference to Exhibit (3.3) to Form 10-K for year ended December 31, 2003.

10

Contract to Purchase and Sell approximately 3,495 acres in Cameron Parish, Louisiana effective July 3, 2007 is incorporated by reference to Exhibit (10) to Form 10-QSB filed August 13, 2007.

31.1

Certification of Joseph K. Cooper, President and Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 filed herewith.

31.2

Certification of Brian R. Jones, Treasurer and Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 filed herewith.

32

Certifications of Chief Executive Officer and Chief Financial Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 filed herewith.

 

101.INS**

XBRL Instance

 

101.SCH**

XBRL Taxonomy Extension Schema

 

101.CAL**

XBRL Taxonomy Extension Calculation

 

101.DEF**

XBRL Taxonomy Extension Definition

101.LAB**

XBRL Taxonomy Extension Labels

 

101.PRE**

XBRL Taxonomy Extension Presentation

 

 

 

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