Edgar Filing: CALCASIEU REAL ESTATE & OIL CO INC

Amendment No. 1 to Form 10-KSB for Year Ended December 31, 2004

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

FORM 10-KSB/A

Amendment No. 1

x	ANNUAL REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended December 31, 2004

¨	TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE ACT

Commission file Number 0-9669

CALCASIEU REAL ESTATE AND OIL CO., INC.

(Exact Name of registrant as specified in its charter)


Louisiana		72-0144530
(State of other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)


One Lakeside Plaza, Lake Charles, Louisiana		70601
(Address of principal executive offices)		(Zip Code)

Registrant’s telephone number, including area code: (337) 494-4256

Securities registered pursuant to Section 12(b) of the Act:


Common Stock with no par value		American Stock Exchange
(Title of each class)		(Name of exchange on which registered)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 of 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 þ No ¨

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein, and will not be contained, to the best of registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-KSB. ¨

Indicate by check mark whether the Registrant is an accelerated filer (as defined in Rule 12-b2 of the Act). Yes ¨ No þ

As of December 31, 2004, the aggregate market value of the common equity held by non-affiliates (based on the closing price on the American Stock Exchange on December 31, 2004) was approximately $17,185,282.

The dollar amount of revenues for fiscal year ended December 31, 2004, was $2,720,258.

Indicate the number of shares outstanding of each of the registrant’s classes of common stock as of the latest practicable date. Common Stock, No Par Value, 1,942,495 shares outstanding at March 11, 2005.

Documents Incorporated by Reference

Portions of the Registrant’s definitive Proxy Statement prepared in connection with the 2005 Annual Meeting of Stockholders are incorporated by reference into Part III, Items 9, 10, 11, 12 and 13 of this Annual Report on Form 10-KSB.

EXPLANATORY NOTE

This amended Form 10-KSB is being filed to correct certain information in the notes to the financial statements contained in Part II, Item 7.

PART II

Item 7. FINANCIAL STATEMENTS

CALCASIEU REAL ESTATE & OIL CO., INC.

Lake Charles, Louisiana

C O N T E N T S


		Page
REPORT OF INDEPENDENT AUDITORS ON THE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION		19

FINANCIAL STATEMENTS

Balance sheets		20
Statements of income		21
Statements of changes in stockholders’ equity		22-23
Statements of cash flows		24-25
Notes to financial statements		26-35

SUPPLEMENTARY INFORMATION

Property, plant and equipment		36
Accumulated depreciation, depletion and amortization		37
Quarterly financial data		38

SCHEDULE OMITTED

Schedules, other than those listed above, have been omitted because of the absence of the conditions under which they are required or because the required information is included in the financial statements or notes thereto.


MCELROY, QUIRK & BURCH
(In Affiliation with - Gus Schram & Co., LTD)	Carl W. Comeaux, CPA Gus W. Schram, III, CPA, CVA Martin L. Chehotsky, CPA, CFE Robert M. Gani, CPA, MT Mollie C. Broussard, CPA Jason L. Guillory, CPA Greg P. Naquin, CPA, CFP^TM Billy D. Fisher, CPA Joe G. Peshoff, II, CPA, CVA
A Professional Corporation Ÿ Certified Public Accountants Ÿ Since 1925		MQB _________ Charles P. Quirk, CPA, Inactive Otray J. Woods, Jr., CPA, Inactive Robert F. Cargile, CPA, Inactive William A. Mancuso, CPA, Retired Barbara Hutson Gonzales, CPA, Retired Judson J. McCann, Jr., CPA, Retired
800 Kirby Street Ÿ P.O. Box 3070 Ÿ Lake Charles, LA 70602-3070
337 433-1063 Ÿ Fax 337 436-6618 Ÿ Web page: www.mqb-cpa.com




		_________
		CFE - Certified Fraud Examiner
		MT - Masters of Taxation
		CVA - Certified Valuation Analyst
		CFP - Certified Financial Planner

REPORT OF INDEPENDENT AUDITORS

To the Board of Directors

Calcasieu Real Estate & Oil Co., Inc.

Lake Charles, Louisiana

We have audited the accompanying balance sheets of Calcasieu Real Estate & Oil Co., Inc. as of December 31, 2004 and 2003, and the related statements of income, changes in stockholders’ equity, and cash flows for the years ended December 31, 2004, 2003 and 2002. These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Calcasieu Real Estate & Oil Co., Inc. as of December 31, 2004 and 2003, and the results of its operations and its cash flows for the years ended December 31, 2004, 2003 and 2002, in conformity with accounting principles generally accepted in the United States of America.

Our audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplementary information on pages 35 through 37 is presented for the purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole.

Ms Elroy, Quick & Burch

Lake Charles, Louisiana

March 4, 2005

Members American Institute of Certified Public Accountants Ÿ Society of Louisiana Certified Public Accountants

CALCASIEU REAL ESTATE & OIL CO., INC.

BALANCE SHEETS

December 31, 2004 and 2003


	2004		2003
ASSETS
CURRENT ASSETS
Cash and cash equivalents	$	1,214,405	$	527,219
Accounts receivable		330,636		239,815
Prepaid income taxes		—		26,475
Prepaid expense and other		20,065		4,860

Total current assets		1,565,106		798,369

SECURITIES AVAILABLE-FOR-SALE		2,242,683		1,922,870

PROPERTY AND EQUIPMENT (less accumulated depreciation, depletion and amortization of $65,351 in 2004 and $67,223 in 2003)		11,970		12,680
Timber (less accumulated depletion of $377,187 in 2004 and $343,459 in 2003)		475,755		498,975
Land		3,887,776		3,891,610

		4,375,501		4,403,265

	$	8,183,290	$	7,124,504

LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES
Trade payables and accrued expenses	$	9,424	$	13,256
Dividends payable		135,975		136,204
Income taxes payable:
Current		2,948		—
Deferred, net		66,920		52,535

Total current liabilities		215,267		201,995

STOCKHOLDERS’ EQUITY
Common stock, no par value; 3,000,000 shares authorized; 2,100,000 shares issued		72,256		72,256
Retained earnings		8,220,502		7,169,864
Accumulated other comprehensive income		50,781		55,905

		8,343,539		7,298,025
Less cost of treasury stock (2004 157,505 shares and 2003 157,505 shares)		375,516		375,516

		7,968,023		6,922,509

	$	8,183,290	$	7,124,504

See Notes to Financial Statements.

CALCASIEU REAL ESTATE & OIL CO., INC.

STATEMENTS OF INCOME

Years Ended December 31, 2004, 2003 and 2002


	2004		2003		2002
Revenues	$	2,720,258	$	2,111,141	$	1,454,498

Costs and expenses:
Oil and gas production		169,068		203,183		102,654
Agricultural		5,511		13,278		10,515
Timber		28,529		39,014		40,741
General and administrative		332,841		296,295		245,786
Depreciation, depletion and amortization		38,900		34,403		38,886

		574,849		586,173		438,582

Income from operations		2,145,409		1,524,968		1,015,916

Other income (expense):
Interest income		59,690		10,647		23,760
Dividends on stock		15,871		36,604		27,595
Realized gain on sale of investments in available-for-sale securities		87,458		5,187		—
Gain on sale of assets		15		3,931		2,167

		163,034		56,369		53,522

Income before income taxes		2,308,443		1,581,337		1,069,438

Federal and state income taxes:
Current		712,428		486,474		330,063
Deferred		19,709		1,858		2,807

		732,137		488,332		332,870

Net income (per common share) - 2004 $.81; 2003 $.56; 2002 $.38	$	1,576,306	$	1,093,005	$	736,568

See Notes to Financial Statements.

CALCASIEU REAL ESTATE & OIL CO., INC.

STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY

Years Ended December 31, 2004, 2003 and 2002


	Comprehensive Income			Retained Earnings			Accumulated Other Comprehensive Income			Capital Stock Issued		Treasury Stock
Balance, January 1, 2002	$	—		$	6,387,579		$	26,059		$	72,256	$	306,829
Comprehensive income:
Net income		736,568			736,568			—			—		—
Other comprehensive income:
Unrealized gains on securities available for sale:
Unrealized holding gains occurring during period net of taxes of $6,330		(9,496	)		—			—			—		—

Other comprehensive income, net of tax		(9,496	)		—			(9,496	)		—		—

Total comprehensive income	$	727,072			—			—			—		—

Dividends					(481,410	)		—			—		—

Balance, December 31, 2002					6,642,737			16,563			72,256		306,829
Comprehensive income:
Net income	$	1,093,005			1,093,005			—			—		—
Other comprehensive income:
Unrealized gains on securities available for sale:
Unrealized holding gains occurring during period net of taxes of $37,269		42,454			—			—			—		—
Less reclassification adjustments for gains included in net income, net of taxes of $2,075		(3,112	)		—			—			—		—

Other comprehensive income, net of tax		39,342			—			39,342			—		—

Total comprehensive income	$	1,132,347			—			—			—		—

Purchase of treasury stock					—			—			—		68,687
Dividends					(565,878	)		—			—		—

(continued on next page)

CALCASIEU REAL ESTATE & OIL CO., INC.

STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY

Years Ended December 31, 2004, 2003 and 2002

(Continued)


	Comprehensive Income			Retained Earnings			Accumulated Other Comprehensive Income			Capital Stock Issued		Treasury Stock
Balance, December 31, 2003					7,169,864			55,905			72,256		375,516
Comprehensive income:
Net income	$	1,576,306			1,576,306			—			—		—
Other comprehensive income:
Unrealized gains on securities available for sale:
Unrealized holding gains occurring during period net of taxes of $31,567		47,351			—			—			—		—
Less reclassification adjustments for gains included in net income, net of taxes of $34,983		(52,475	)		—			—			—		—

Other comprehensive income, net of tax		(5,124	)		—			(5,124	)		—		—

Total comprehensive income	$	1,571,182

Purchase of treasury stock					—			—			—		—
Dividends					(525,668	)		—			—		—

Balance, December 31, 2004				$	8,220,502		$	50,781		$	72,256	$	375,516

See Notes to Financial Statements.

CALCASIEU REAL ESTATE & OIL CO., INC.

STATEMENTS OF CASH FLOWS

Years Ended December 31, 2004, 2003 and 2002


	2004			2003			2002
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$	1,576,306		$	1,093,005		$	736,568
Noncash (income) expenses included in net income:
Depreciation, depletion and amortization		38,900			34,403			38,886
Realized (gains) on sale of available-for-sale securities		(87,458	)		(5,187	)		—
(Gain) on sale of assets		(15	)		(3,799	)		(2,572	)
Loss on asset retirement		3,304			77,215			375
Deferred income tax		19,709			1,858			2,807
Change in assets and liabilities:
(Increase) in trade accounts and other receivables		(90,822	)		(87,442	)		(58,625	)
Decrease in inventory		—			10,125			917
Decrease in prepaid income taxes		26,475			34,638			110,030
(Increase) in prepaid expenses		(15,205	)		(1,180	)		(371	)
Increase (decrease) in trade payables		(3,831	)		4,393			2,895
Increase in income taxes payable		2,948			—			—

Net cash provided by operating activities		1,470,311			1,158,029			830,910

CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from rights of way		—			3,000			—
Proceeds from sale of timber and land		5,454			16,858			4,655
Available-for-sale securities:
Purchases		(2,065,760	)		(2,143,912	)		(1,692,887	)
Sales		1,822,955			1,654,000			700,000
Purchase of land, property and equipment		(19,877	)		(49,980	)		(197,025	)

Net cash provided by (used in) investing activities		(257,228	)		(520,034	)		(1,185,257	)

CASH FLOWS FROM FINANCING ACTIVITIES
Dividends paid, net of refunds		(525,897	)		(625,416	)		(481,410	)
Payments to acquire treasury stock		—			(68,687	)		—

Net cash (used in) financing activities		(525,897	)		(694,103	)		(481,410	)

Net increase (decrease) in cash and cash equivalents		687,186			(56,108	)		(835,757	)
Cash and cash equivalents:
Beginning		527,219			583,327			1,419,084

Ending	$	1,214,405		$	527,219		$	583,327

(continued on next page)

CALCASIEU REAL ESTATE & OIL CO., INC.

STATEMENTS OF CASH FLOWS

Years Ended December 31, 2004, 2003 and 2002

(Continued)


	2004			2003		2002
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
Cash payments for:
Interest	$	—		$	—	$	—
Income taxes		683,004			404,548		238,120

SUPPLEMENTAL SCHEDULE OF NONCASH INVESTING AND FINANCING ACTIVITIES
Net change in unrealized and realized gains on available-for-sale securities		(5,124	)		39,342		(9,496	)

See Notes to Financial Statements.

CALCASIEU REAL ESTATE & OIL CO., INC.

NOTES TO FINANCIAL STATEMENTS

Note 1. Nature of Business and Significant Accounting Policies

Nature of business:

The Company’s business is the ownership and management of land. The primary activities consist of leasing its properties for mineral (oil and gas) and agriculture and raising timber.

Significant accounting policies:

Cash and cash equivalents:

For purposes of the statement of cash flows, cash equivalents include time deposits, certificates of deposit, and all highly liquid debt instruments with original maturities of three months or less.

Inventory:

Inventory consists of harvested crops valued at estimated selling price at the date of the balance sheet.

Pervasiveness of estimates:

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Investment securities:

The Company complies with the provisions of Financial Accounting Standards Board Statement No. 115, Accounting for Certain Investments in Debt and Equity Securities. Under the provisions of this statement, management must make a determination at the time of acquisition whether certain investments in debt and equity securities are to be held as investments to maturity, held as available for sale, or held for trading. Management, under a policy adopted by the board of directors of the Company, made a determination that all debt and equity securities owned at that date and subject to the provisions of the statement would be classified as held available-for-sale.

Under the accounting policies provided for investments classified as held available-for-sale, all such debt securities and equity securities that have readily determinable fair value shall be measured at fair value in the balance sheet. Unrealized holding gains and losses for available-for-sale securities shall be excluded from earnings and reported as a net amount (net of income taxes) as a separate component of retained earnings until realized. Realized gains and losses on available-for-sale securities are included in income. The cost of securities sold is based on the specific identification method. Interest on debt securities is recognized in income as earned, and dividends on marketable equity securities are recognized in income when declared.

Declines in the fair value of available-for-sale securities below their cost that are deemed to be other-than-temporary are reflected in earnings as realized losses. In estimating other-than-temporary impairment losses, management considers (1) length of time and the extent to which the fair value has been less than cost, (2) the financial condition and near-term prospects of the issuer, and (3) the intent and ability of the Company to retain its investment in the issuer for a period of time sufficient to allow for any anticipated recovery in fair value.

Property and equipment:

Property and equipment is stated at cost. Major additions are capitalized; maintenance and repairs are charged to income currently. Depreciation is computed on the straight-line and accelerated methods over the estimated useful lives of the assets.

Timber:

When timber land is purchased with standing timber, the cost is divided between land and timber based on timber cruises contracted by the Company. The costs of reforestation are capitalized. The timber asset is amortized when the timber is sold based on the percentage of the timber sold from a particular tract applied to the amount capitalized for timber for that tract.

Oil and gas:

Oil and gas income is booked when the Company is notified by the well’s operators as to the Company’s share of the sales proceeds together with the withheld severance taxes. The Company has no capitalized costs relating to oil and gas producing activities and no costs for property acquisition, exploration and development activities.

Earnings per share:

Earnings per share is based on the weighted average number of common shares outstanding during the years.

Income taxes:

Deferred income tax assets and liabilities are determined using the liability (or balance sheet) method. Under this method, the net deferred tax asset or liability is determined based on the tax effects of the temporary differences between the book and tax bases of the various balance sheet assets and liabilities and gives current recognition to changes in tax rates and laws.


Note 2.		Securities Available-for-Sale

		Debt and equity securities have been classified in the balance sheet according to management’s intent in the noncurrent asset sections under the headings securities available-for-sale. The carrying amount of securities and their approximate fair values at December 31, 2004 and 2003 follow:


	Gross Amortized Cost		Gross Unrealized Gains		Unrealized Losses		Fair Value
December 31, 2004
Available-for-sale securities:
Equity securities	$	612,712	$	94,909	$	8,452	$	699,169
Corporate bonds		200,003		785		—		200,788
US government securities		1,347,645		—		4,919		1,342,726

	$	2,160,360	$	95,694	$	13,371	$	2,242,683

December 31, 2003
Available-for-sale securities:
Equity securities	$	155,861	$	46,689	$	—	$	202,550
Preferred equity securities		329,373		46,887		—		376,260
US government securities (maturing within one year)		1,344,861		—		801		1,344,060

	$	1,830,095	$	93,576	$	801	$	1,922,870

Gross realized gains and gross realized losses on sales of available-for-sale securities during 2004 and 2003 are presented below. There were no gross realized gains and gross realized losses on sales of available-for-sale securities during 2002.


2004	Gains		Losses
Gross realized gains:
Equity securities	$	37,820	$	—
Preferred equity securities		49,638		—

	$	87,458	$	—


2003	Gains		Losses
Gross realized gains:
Preferred equity securities	$	5,187	$	—

Information pertaining to available-for-sale securities with gross unrealized losses at December 31, 2004, aggregated by investment category and length of time that individual securities have been in a continuous loss position, follows:


	Less Than 12 Months				12 Months or More
	Fair Value		Gross Unrealized Loss		Fair Value		Gross Unrealized Loss
Equity securities	$	26,890	$	8,452	$	—	$	—
US government securities		1,342,727		4,919		—		—

	$	1,369,617	$	13,371	$	—	$	—

Management evaluates securities for other-than-temporary impairment at least on a quarterly basis, and more frequently when economic or market concerns warrant such evaluation. Consideration is given to (1) the length of time and the extent to which the fair value has been less than cost, (2) the financial condition and near-term prospects of the issues, and (3) the intent and ability of the Company to retain its investment in the issues for a period of time sufficient to allow for any anticipated recovery in fair value.

The securities are considered not other-than-temporarily impaired because of the short period of time the fair value has been less than cost and the Company has the intent and ability to retain its investments for a period of time sufficient to allow for anticipated recovery of fair value.

The following table shows scheduled maturities of securities (other than equity securities) available-for-sale at December 31, 2004:


Years Ending	Fair Value
2005	$	996,090
2006		346,636
2007		—
2008		—
2009		—
Thereafter		200,788

	$	1,543,514

Note 3. Oil and Gas Properties

Results of operations for oil and gas producing activities at December 31, 2004, 2003 and 2002 is as follows:


	2004		2003		2002
Gross revenues:
Royalty interests	$	2,291,804	$	1,793,639	$	1,096,175
Working interests		853		1,806		22,573

		2,292,657		1,795,445		1,118,748
Less:
Production costs		169,068		203,183		102,654

Results before income tax expenses		2,123,589		1,592,262		1,016,094
Income tax expenses		672,581		484,950		316,266

Results of operations from producing activities (excluding corporate overhead)	$	1,451,008	$	1,107,312	$	699,828

Costs incurred in oil and gas activities:

There were no major costs, with the exception of severance taxes, incurred in connection with the Company’s oil and gas operations (which are conducted entirely within the United States) at December 31, 2004, 2003 and 2002.

Reserve quantities (unaudited):

Reserve information relating to estimated quantities of the Company’s interest in proved reserves of natural gas and crude (including condensate and natural gas liquids) is not available. Such reserves are located entirely within the United States. A schedule indicating such reserve quantities is, therefore, not presented. All oil and gas royalties come from Company owned properties that were developed and produced by other partners under lease agreements.

Company’s share of oil and gas produced from royalty interests:


	2004	2003	2002
Net gas produced (MCF)	159,889	153,046	112,492
Net oil produced (Bbl)	28,265	25,618	22,194


Note 4.		Income Taxes

		The Company files federal income tax returns on a calendar year basis. The net deferred tax liability in the accompanying balance sheet includes the following components at December 31, 2004 and 2003:


	2004			2003
Deferred tax assets	$	230		$	720
Deferred tax liabilities		(34,556	)		(15,337	)
Deferred tax liabilities on unrealized appreciation of securities available for sale		(32,594	)		(37,918	)

Net deferred tax liability	$	(66,920	)	$	(52,535	)


		A reconciliation between income taxes, computed by applying statutory tax rates to income before income taxes and income taxes provided at December 31, 2004, 2003 and 2002 is as follows:


	2004			2003			2002
Tax at statutory rates	$	784,871		$	537,655		$	363,609
Tax effect of the following:
Statutory depletion		(110,549	)		(86,281	)		(52,480	)
Dividend exclusion		(3,777	)		(1,673	)		(6,567	)
State income tax		58,607			39,240			26,756
Investment tax credit		—			(1,000	)		(1,000	)
Other		2,985			391			2,552

	$	732,137		$	488,332		$	332,870


		Deferred income taxes result from timing differences in the recognition of revenue and expenses for tax and financial statement purposes. The effect of these timing differences at December 31, 2004 and 2003 is as follows:


	2004			2003
Conversion of investment from tax cash basis to accrual basis for financial reporting	$	(33,726	)	$	(14,205	)
Excess of depreciation and depletion expensed for tax purposes (under) amount expensed for financial statement purposes		(600	)		(412	)
Unrealized gain on marketable securities		(32,594	)		(37,918	)

	$	(66,920	)	$	(52,535	)


Note 5. Line of Credit

		As of December 31, 2004, the Company had available an unsecured line of credit in the amount of $1,000,000. The balance on this line of credit was $-0- at December 31, 2004 and 2003.


Note 6. Company Operations

		The Company’s operations are classified into three principal operating segments which are all located in the United States: oil and gas properties, agricultural properties and timber properties. The Company’s reportable business segments are strategic business units that offer income from different products. They are managed separately due to the unique aspects of each area.

Following is a summary of segmented information for 2004, 2003 and 2002:


	2004		2003		2002
REVENUES
Oil and gas properties	$	2,292,657	$	1,795,445	$	1,118,748
Agricultural properties		174,203		179,960		175,282
Timber properties		253,398		135,736		160,468

	$	2,720,258	$	2,111,141	$	1,454,498

COSTS AND EXPENSES
Oil and gas properties	$	169,068	$	203,183	$	102,654
Agricultural properties		5,511		13,278		16,085
Timber properties		62,257		67,814		74,057

	$	236,836	$	284,275	$	192,796


	2004			2003			2002
INCOME FROM OPERATIONS
Oil and gas properties	$	2,123,589		$	1,592,262		$	1,016,094
Agricultural properties		168,692			166,682			159,197
Timber properties		191,141			67,922			86,411

		2,483,422			1,826,866			1,261,702
OTHER INCOME (EXPENSE)		(174,979	)		(245,529	)		(192,264	)

INCOME BEFORE INCOME TAXES	$	2,308,443		$	1,581,337		$	1,069,438

IDENTIFIABLE ASSETS
Oil and gas properties	$	322,225		$	233,813		$	213,493
Agricultural properties		2,364,591			2,372,124			2,372,029
Timber properties		1,499,806			1,516,918			1,507,513
GENERAL CORPORATE ASSETS		3,996,668			3,001,649			2,559,667

TOTAL ASSETS	$	8,183,290		$	7,124,504		$	6,652,702

CAPITAL EXPENDITURES
Oil and gas properties	$	—		$	—		$	—
Agricultural properties		1,195			—			165,859
Timber properties		13,812			43,614			18,908

	$	15,007		$	43,614		$	184,767

DEPRECIATION, DEPLETION AND AMORTIZATION
Agricultural properties	$	—		$	—		$	—
Timber properties		33,728			28,800			33,316

	$	33,728		$	28,800		$	33,316

There are no intersegment sales reported in the accompanying income statements. The accounting policies of the segments are the same as those described in the summary of significant accounting policies. The Company evaluates performance based on profit or loss from operations before income taxes excluding nonrecurring gains and losses on securities held available for sale. Income before income tax represents net sales less operating expenses and other income and expenses of a general corporate nature. Identifiable assets by segment are those assets that are used in the Company’s operations within that industry.

The following summarizes major customer information at December 31, 2004, 2003 and 2002 from oil and gas revenues:


	Sales to Purchaser as a Percentage of Total Revenues
Purchaser	2004		2003		2002
Cox and Perkins	34	%	41	%	41	%
Kerr-McGee			13	%
Unit Petroleum	15	%

Note 7. Related Party Transactions

In 1990, the Company purchased interests in properties managed by Walker Louisiana Properties (WLP), such properties being subject to a management agreement.

Note 8. Supplementary Income Statement Information

Taxes, other than income taxes, of $238,215, $195,687 and $138,451, were charged to expense during 2004, 2003 and 2002, respectively.

Note 9. Concentration of Credit Risk

The Company maintains its cash balances in one financial institution. The amount on deposit in the financial institution is insured by the Federal Deposit Insurance Corporation up to $100,000.

Note 10. Disclosures About Fair Value of Financial Instruments

The following methods and assumptions were used to estimate the fair value of each class of financial instruments for which it was practical to estimate that value:

Cash and cash equivalents:

For these short-term instruments, the carrying amount is a reasonable estimate of fair value.

Securities available-for-sale:

Debt and equity securities were valued at fair value, which equals quoted market price.

The estimated fair value of the Company’s financial instruments at December 31, 2004 and 2003 are as follows. Amounts are presented in thousands.


	2004				2003
	Carrying Value		Fair Value		Carrying Value		Fair Value
Financial Assets
Cash and cash equivalents	$	1,214	$	1,214	$	527	$	527
Securities available for sale		2,243		2,243		1,923		1,923

	$	3,457	$	3,457	$	2,450	$	2,450

CALCASIEU REAL ESTATE & OIL CO., INC.

PROPERTY, PLANT AND EQUIPMENT

Years Ended December 31, 2004, 2003 and 1999


	Balance, Beginning of Period		Additions		Adjustments and Retirements		Balance, End of Period
2004
Other property:
Buildings and equipment	$	79,904	$	7,785	$	10,368	$	77,321
Timber		842,434		13,812		3,304		852,942
Land		3,891,610		1,195		5,029		3,887,776

	$	4,813,948	$	22,792	$	18,701	$	4,818,039


2003
Oil and gas properties-proved	$	456,751	$	—	$	456,751	$	—

Other property:
Buildings and equipment		83,718		—		3,814		79,904
Timber		798,820		43,614		—		842,434
Land		3,904,851		—		13,241		3,891,610

	$	5,244,140	$	43,614	$	473,806	$	4,813,948


2002
Oil and gas properties-proved	$	456,751	$	—	$	—	$	456,751

Other property:
Buildings and equipment		86,825		6,999		10,106		83,718
Timber		779,912		18,908		—		798,820
Land		3,738,992		165,859		—		3,904,851

	$	5,062,480	$	191,766	$	10,106	$	5,244,140

CALCASIEU REAL ESTATE & OIL CO., INC.

ACCUMULATED DEPRECIATION, DEPLETION AND AMORTIZATION

Years Ended December 31, 2004, 2003 and 2002


	Balance, Beginning of Period		Additions		Adjustments and Retirements		Balance, End of Period
2004
Other property:
Buildings and equipment	$	67,224	$	5,172	$	7,045	$	65,351
Timber		343,459		33,728		—		377,187

	$	410,683	$	38,900	$	7,045	$	442,538


2003
Oil and gas properties-proved	$	379,535	$	—	$	379,535	$	—

Other property:
Buildings and equipment		68,985		5,603		7,364		67,224
Timber		314,659		28,800		—		343,459

	$	763,179	$	34,403	$	386,899	$	410,683


2002
Oil and gas properties-proved	$	379,535	$	—	$	—	$	379,535

Other property:
Buildings and equipment		69,999		5,570		6,584		68,985
Timber		281,343		33,316		—		314,659

	$	730,877	$	38,886	$	6,584	$	763,179

CALCASIEU REAL ESTATE & OIL CO., INC.

QUARTERLY FINANCIAL DATA

(UNAUDITED)

Amounts in thousands, except per share:


	First Quarter		Second Quarter		Third Quarter		Fourth Quarter		Total Year
Total revenues:
2004	$	528	$	615	$	810	$	767	$	2,720
2003		450		363		587		711		2,111

Operating income:
2004		382		494		670		599		2,145
2003		351		275		468		431		1,525

Net income:
2004		275		412		467		422		1,576
2003		252		199		333		309		1,093

Net income per share:
2004		.14		.21		.24		.22		.81
2003		.13		.10		.17		.16		.56

Cash dividends per share:
2004		.07		.07		.07		.07		.28
2003		.05		.10		.07		.07		.29

Shares outstanding:
2004		1,945		1,945		1,945		1,945		1,945
2003		1,955		1,952		1,945		1,945		1,945

SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this annual report to be signed on its behalf by the undersigned, thereunto duly authorized on April 14, 2005


CALCASIEU REAL ESTATE AND OIL CO., INC.

BY:	/s/ William D. Blake

	Name:	William D. Blake
	Title:	Vice-President & Treasurer, Chief Financial Officer and Director

EXHIBIT INDEX



3.1		Restated/Articles of Incorporation of the Registrant is 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.

23.1		Consent of McElroy, Quirk & Burch filed herewith.

31.1		Certification of Arthur Hollins, III, President and Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 filed herewith.

31.2		Certification of William D. Blake, Vice-President and Treasurer and Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 filed herewith.

32.1		Certification of Arthur Hollins, III, President and Chief Executive Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 filed herewith.

32.2		Certification of William D. Blake, Vice-President and Treasurer and Chief Financial Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 filed herewith.