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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, 2002 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: (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:
Name of each exchange
Title of each class 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, 2002, 1,955,044 shares of the registrant's Common Stock,
without par value, were issued and outstanding.
As of June 30, 2002, the total market value of all outstanding stock was
$9,775,220.
CALCASIEU REAL ESTATE & OIL CO., INC.
Form 10-Q for the Quarter ended September 30, 2002
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, 2002 and December 31, 2001 4-5
Statements of Income and Retained Earnings
Nine Months Ended September 30, 2002 and September 30, 2001 6
Statements of Cash Flows
Nine Months Ended September 30, 2002 and September 30, 2001 7
Part II OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K 8
Signatures 9
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
Net income for the first nine months ended September 30, 2002, was down 26.6%
from the same nine months in 2001, and net income for the quarter ended
September 30, 2002, was down 32.5% when compared to the third quarter of 2001.
All sources of revenues were lower in 2002 both for the nine months as well as
the third quarter when compared to the corresponding periods in 2001. Income for
the nine months for oil and gas properties was down 19% compared to 2001, but
down only 8.5% for the third quarter when compared to the third quarter of 2001.
The primary source of oil and gas income in 2001 was the North English Bayou
field which became depleted in 2002. The principle source in 2002 is from the
Company's interest in the North Gordon field. This production is from one well
which has a relatively short life.
Timber income for the nine months was down 44.9% from 2001 and agriculture
income was down 18.7% from 2001. We do not project either our timber or our
agriculture income to be as much in 2002 as in 2001. Oil and gas, agriculture
and forestry expenses were all higher for the nine months ended September 30,
2002, compared to 2001 but they were more than offset by lower general and
administrative expenses and depletion expense.
In September, 2001, the Company received an invoice from the National Pollution
Funds Center for cleanup of an old oil well site. The Company protested as an
innocent landowner since the spill occurred long before the Company's ownership
and the Company did not participate in the mineral production. We received no
further communications until September, 2002, when another invoice was received
for charges overlooked on the first bill. Our share of the costs is
approximately $100,000. Our legal counsel feels we have strong defenses and we
are contesting the charges.
The Company is in the process of closing on the purchase of 280 acres of land at
a cost of $157,000 plus expenses.
The enclosed financial statements are unaudited with the exception of the
Balance Sheet for December 31, 2001. 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. 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.
3
CALCASIEU REAL ESTATE & OIL CO., INC.
BALANCE SHEET
ASSETS
CURRENT ASSETS September 30, 2002 December 31, 2001
Cash and cash equivalents $ 534,964 $ 1,419,084
Accounts receivables 199,916 93,748
Prepaid income taxes & expenses 26,144 174,452
Inventory harvested crops 11,042
------------ -----------
Total current assets $ 761,024 $ 1,698,326
------------ -----------
SECURITIES AVAILABLE FOR SALE $ 1,344,769 $ 377,732
------------ -----------
PROPERTY AND EQUIPMENT, less
accumulated depreciation, depletion and
amortization of $449,684 in 2002 and
$454,674 in 2001. $ 95,044 $ 94,043
Timber, less accumulated depletion of
$286,969 in 2002 and $269,170 in 2001. 511,723 498,569
Land 3,751,730 3,738,993
------------ -----------
Total Property $ 4,358,497 $ 4,331,605
------------ -----------
TOTAL $ 6,464,290 $ 6,407,663
------------ -----------
4
CALCASIEU REAL ESTATE & OIL CO., INC.
BALANCE SHEET
LIABILITIES & STOCKHOLDERS' EQUITY
CURRENT LIABILITIES September 30, 2002 December 31, 2001
Trade payables and accrued expenses $ 13,430 $ 5,968
Dividends payable 195,737
Current deferred tax liability, net 13,191 26,893
---------- ----------
Total Current Liabilities $ 26,621 $ 228,598
---------- ----------
SHAREHOLDERS' EQUITY
Common Stock, no par value, 3,000,000 shares
authorized; 2,100,000 shares issued $ 72,256 $ 72,256
Retained earnings 6,666,736 6,387,579
Accumulated other comprehensive income 5,506 26,059
---------- ----------
$6,744,498 $6,485,894
Less cost treasury stock (2002 144,956 shares;
2001 144,956 shares) 306,829 306,829
---------- ----------
Total Equity $6,437,669 $6,179,065
---------- ----------
TOTAL $6,464,290 $6,407,663
---------- ----------
5
CALCASIEU REAL ESTATE & OIL CO., INC.
STATEMENTS OF INCOME AND RETAINED EARNINGS
Three Months Ended Nine Months Ended
September 30, 2002 September 30, 2001 September 30, 2002 September 30, 2001
REVENUES
Income-primarily from oil and gas properties $ 274,455 $ 299,880 $ 800,108 $ 987,438
Agricultural Income 61,355 99,466 138,690 170,490
Timber Income 35,427 141,093 112,517 204,053
---------- ----------- ----------- -----------
TOTAL $ 371,237 $ 540,439 $ 1,051,315 $ 1,361,981
---------- ----------- ----------- -----------
COSTS AND EXPENSES
Oil and gas production costs $ 17,691 $ 15,208 $ 53,559 $ 46,510
Agriculture expense 2,444 2,249 8,299 5,193
Forestry expenses 27,137 9,663 37,774 19,978
General and Administrative 36,307 50,254 166,526 201,031
Depreciation and depletion 1,822 8,804 5,776 15,452
---------- ----------- ----------- -----------
TOTAL $ 85,401 $ 86,178 $ 271,934 $ 288,164
---------- ----------- ----------- -----------
OTHER INCOME (EXPENSE):
Interest Income $ 7,902 $ 12,896 $ 17,653 $ 39,995
Dividends 11,498 6,147 22,764 17,497
Gain on Sale of Assets 4,991
---------- ----------- ----------- -----------
TOTAL $ 19,400 $ 19,043 $ 40,417 $ 62,483
---------- ----------- ----------- -----------
INCOME OR LOSS BEFORE INCOME TAXES AND
EXTRAORDINARY CREDITS $ 305,236 $ 473,304 $ 819,798 $ 1,136,300
PROVISION FOR INCOME TAXES:
Current 94,785 161,432 254,972 366,607
---------- ----------- ----------- -----------
NET INCOME OR (LOSS) $ 210,451 $ 311,872 $ 564,826 $ 769,693
RETAINED EARNINGS,
BEGINNING OF PERIOD 6,554,276 6,266,506 6,387,579 6,004,642
DIVIDENDS (97,991) (97,976) (285,669) (293,933)
---------- ----------- ----------- -----------
RETAINED EARNINGS END OF PERIOD $6,666,736 $ 6,480,402 $ 6,666,736 $ 6,480,402
---------- ----------- ----------- -----------
NET INCOME PER COMMON SHARE $ .11 $ .16 $ .29 $ .39
OTHER COMPREHENSIVE INCOME
Three Months Ended Nine Months Ended
September 30, 2002 September 30, 2001 September 30, 2002 September 30, 2001
Unrealized gain (loss) on securities
available for sale, net of taxes $ (25,653) $ 2,342 $ (20,553) $ 9,244
Other comprehensive income
Beginning of Period 31,159 31,350 26,059 24,448
---------- ----------- ----------- -----------
Other comprehensive income
End of Period $ 5,506 $ 33,692 $ 5,506 $ 33,692
---------- ----------- ----------- -----------
6
CALCASIEU REAL ESTATE & OIL CO., INC.
STATEMENTS OF CASH FLOWS
Nine Months Ended
September 30, 2002 September 30, 2001
CASH FLOWS FROM OPERATING ACTIVITIES
Net Income (or Loss) $ 564,826 $ 769,693
Non cash (income) expenses
included in net income:
Depreciation, depletion and amortization 5,776 15,452
CHANGE IN ASSETS
AND LIABILITIES:
(Increase) decrease in accounts receivable (106,168) (43,436)
(Increase) decrease in inventory 11,042 4,427
(Increase) decrease in prepaid expenses 3,309 3,309
(Increase) decrease in
prepaid income taxes 144,999 32,721
Increase (decrease) in trade payables 7,462 1,002
Increase (decrease) in dividends payable (195,737) (195,504)
----------- -----------
Net Cash Provided by
Operating Activities $ 435,509 $ 587,664
----------- -----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Maturity of Securities available for sale $ 694,073 $ 688,654
Purchase of Securities available for sale (1,695,365) (596,502)
Purchase of Property and
equipment and reforestation (19,931) (11,265)
Purchase of land (12,737) (228,910)
----------- -----------
Net cash provided (used in)
Investing Activities $(1,033,960) $ (148,023)
----------- -----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Dividends paid $ (285,669) $ (293,933)
Payments to acquire
treasury stock
----------- -----------
Net cash provided by (used in)
financing activities $ (285,669) $ (293,933)
----------- -----------
Net increase (decrease) in
cash & cash equivalents $ (884,120) $ 145,708
CASH AND CASH EQUIVALENTS:
Beginning 1,419,084 638,063
----------- -----------
Ending $ 534,964 $ 783,771
----------- -----------
7
CALCASIEU REAL ESTATE & OIL CO., INC.
PART II OTHER INFORMATION
Item 6. EXHIBITS AND REPORTS ON FORM 8-K
(A) Exhibits
None
(B) Management's Certification
This is to certify that we, the officers signing below, have reviewed this
report and based on our knowledge, the report does not contain any untrue
statement of a material fact or omit to state a material fact necessary in order
to make the statements made, in light of the circumstances under which such
statements were made, not misleading. Based on our knowledge, the financial
statements, and other financial information included in the report, fairly
present in all material respects the financial condition and results of
operations of the issuer, as of, and for, the periods presented in the report.
We are responsible for establishing and maintaining internal controls; have
designed such controls to ensure that material information relating to the
issuer is made known to such officers by others within the Company, particularly
during the period in which these reports are prepared. We have evaluated the
effectiveness of the Company's internal controls and believe that said controls
are effective and sufficient. We have disclosed to the Company's auditors and
audit committee the operation of the internal controls and have stated to same
that we are unaware of any material weakness in said controls nor are we aware
of any fraud. There have been no significant changes in the Company's internal
controls.
/s/ Arthur Hollins, III
-----------------------------------------
Arthur Hollins, III
President
/s/ William D. Blake
-----------------------------------------
William D. Blake
Vice-President and Treasurer
8
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 October 29, 2002
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