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 June 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:
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 June 30, 2002, 1,955,044 shares of the registrant's Common Stock, without
par value, were issued and outstanding.
CALCASIEU REAL ESTATE & OIL CO., INC.
Form 10-Q for the Quarter ended June 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
June 30, 2002 and December 31, 2001 4-5
Statements of Income and Retained Earnings
Six Months Ended June 30, 2002 and June 30, 2001 6
Statements of Cash Flows
Six Months Ended June 30, 2002 and June 30, 2001 7
Part II OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K 8
Signatures 8
Reference is made to the Notes to Financial Statements contained in
the Company's Annual Report on Form 10
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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 six months ended June 30, 2002, was down 22.6% from the
same six months in 2001, whereas net income for the quarter ended June 30, 2002,
was up 38.4% when compared to the second quarter of 2001. This was caused by
income in 2001 from the North English Bayou Field decreasing each month in 2002,
while in 2002 income from the North Gordon Field increased each month. The North
English Bayou Field is now depleted and wells on property partially owned by
Calcasieu Real Estate and Oil have been plugged and abandoned. We believe that
income from the North Gordon Field has reached its maximum potential and will
begin decreasing in the near future. Income from agriculture and timber was up
13.2% for the first six months of 2002 as compared to 2001. Expenses were down
for the first six months of 2002 as compared to 2001, due to a decrease in legal
fees. The legal fees for both years were to defend a suit which has recently
been settled at no further expense to the Company.
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.
3
CALCASIEU REAL ESTATE & OIL CO., INC.
BALANCE SHEET
ASSETS
CURRENT ASSETS June 30, 2002 December 31, 2001
Cash and cash equivalents $ 572,556 $1,419,084
Accounts receivables 186,757 93,748
Prepaid income taxes & expenses 174,452
Inventory harvested crops 11,042
---------- ----------
Total current assets $ 759,313 $1,698,326
---------- ----------
SECURITIES AVAILABLE FOR SALE $1,389,431 $ 377,732
---------- ----------
PROPERTY AND EQUIPMENT, less
accumulated depreciation, depletion and
amortization. $ 95,094 $ 94,043
Timber, less accumulated depletion 513,495 498,569
Land 3,751,730 3,738,993
---------- ----------
Total Property $4,360,319 $4,331,605
---------- ----------
TOTAL $6,509,063 $6,407,663
---------- ----------
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CALCASIEU REAL ESTATE & OIL CO., INC.
BALANCE SHEET
LIABILITIES & STOCKHOLDERS' EQUITY
CURRENT LIABILITIES June 30, 2002 December 31, 2001
Trade payables and accrued expenses $ 22,786 $ 5,968
Dividends payable 97,991 195,737
Current deferred tax liability, net 30,293 26,893
Income taxes payable 7,131
------------- --------------
Total Current Liabilities $ 158,201 $ 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 6,554,276 6,387,579
Accumulated other comprehensive income 31,159 26,059
------------- --------------
$ 6,657,691 $ 6,485,894
Less cost treasury stock (2002 144,956 shares;
2001 144,956 shares) 306,829 306,829
------------- --------------
Total Equity $ 6,350,862 $ 6,179,065
------------- --------------
TOTAL $ 6,509,063 $ 6,407,663
------------- --------------
5
CALCASIEU REAL ESTATE & OIL CO., INC.
STATEMENTS OF INCOME AND RETAINED EARNINGS
Three Months Ended Six Months Ended
June 30, 2002 June 30, 2001 June 30, 2002 June 30, 2001
REVENUES
Income-primarily from oil and gas properties $ 387,640 $ 266,584 $ 525,653 $ 687,558
Agricultural Income 13,754 19,108 77,335 71,024
Timber Income 51,596 62,818 77,090 62,960
--------------- ------------- ------------- -------------
TOTAL $ 452,990 $ 348,510 $ 680,078 $ 821,542
--------------- ------------- ------------- -------------
COSTS AND EXPENSES
Forestry expenses $ 3,794 $ 6,441 $ 10,637 $ 10,315
Agriculture expense 2,684 383 5,855 2,944
Oil and gas production costs 24,078 11,315 35,868 31,302
General and Administrative 48,728 74,228 130,219 150,777
Depreciation and depletion 2,629 4,891 3,954 6,648
--------------- ------------- ------------- -------------
TOTAL $ 81,913 $ 97,258 $ 186,533 $ 201,986
--------------- ------------- ------------- -------------
OTHER INCOME (EXPENSE):
Interest $ 4,967 $ 17,810 $ 9,751 $ 27,099
Dividends on Common Stock 8,562 5,146 11,266 11,350
Gain on sale of land 4,991 4,991
--------------- ------------- ------------- -------------
TOTAL $ 13,529 $ 27,947 $ 21,017 $ 43,440
--------------- ------------- ------------- -------------
INCOME OR LOSS BEFORE
INCOME TAXES AND
EXTRAORDINARY CREDITS $ 384,606 $ 279,199 $ 514,562 $ 662,996
PROVISION FOR INCOME TAXES:
Current 120,222 88,199 160,187 205,175
--------------- ------------- ------------- -------------
NET INCOME OR (LOSS) $ 264,384 $ 191,000 $ 354,375 $ 457,821
RETAINED EARNINGS,
BEGINNING OF PERIOD 6,379,609 6,173,482 6,387,579 6,004,642
DIVIDENDS (89,717) (97,976) (187,678) (195,957)
--------------- ------------- ------------- -------------
RETAINED EARNINGS,
END OF PERIOD $ 6,554,276 $ 6,266,506 $ 6,554,276 $ 6,266,506
--------------- ------------- ------------- -------------
NET INCOME PER COMMON SHARE $.13 $.09 $.18 $.23
OTHER COMPREHENSIVE INCOME
BEGINNING OF PERIOD $ 26,059 $ 31,866 $ 26,059 $ 24,448
Unrealized Securities Gains(Losses)
Net of income taxes 5,100 (516) 5,100 6,902
--------------- ------------- ------------- -------------
OTHER COMPREHENSIVE INCOME
END OF PERIOD $ 31,159 $ 31,350 $ 31,159 $ 31,350
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CALCASIEU REAL ESTATE & OIL CO., INC.
STATEMENTS OF CASH FLOWS
Three Months Ended Six Months Ended
June 30, 2002 June 30, 2001 June 30, 2002 June 30, 2001
CASH FLOWS FROM OPERATING
ACTIVITIES
Net Income (or Loss) $ 264,384 $ 191,000 $ 354,375 $ 457,821
Non cash (income) expenses
included in net income:
Depreciation, depletion and
amortization 2,629 4,891 3,954 6,648
CHANGE IN ASSETS
AND LIABILITIES:
(Increase) decrease in
accounts receivable (49,071) 7,192 (93,009) (80,291)
(Increase) decrease in
inventory 11,042 4,427
(Increase) decrease in
prepaid expenses 3,309 3,309
(Increase) decrease in
prepaid income taxes 113,091 (65,679) 171,143 9,199
Increase (decrease) in trade payables 5,916 (21,922) 16,818 (12,524)
Increase (decrease) in
income tax payable 7,131 (42,098) 7,131
------------- ------------ ------------- -------------
Net Cash Provided by
Operating Activities $ 344,080 $ 73,384 $ 474,763 $ 388,589
------------- ------------ ------------- -------------
CASH FLOWS FROM
INVESTING ACTIVITIES:
Purchase of securities available for sale $ (103,266) $ $ (1,003,199) $
Maturity of securities available for sale 491,833 688,654
Reforestation expenditure (18,780) (18,780) (6,829)
Purchase land (5,564) (12,737)
Purchase of equipment (1,151) (1,151)
------------- ------------ ------------- -------------
$ (128,761) $ 491,833 $ (1,035,867) $ 681,825
------------- ------------ ------------- -------------
CASH FLOWS FROM
FINANCING ACTIVITIES:
Dividends paid $ (89,699) $ (97,981) $ (285,424) $ (293,484)
Payments to acquire
treasury stock
------------- ------------ ------------- -------------
Net cash provided by (used in)
financing activities $ (89,699) $ (97,981) $ (285,424) $ (293,484)
------------- ------------ ------------- -------------
Net increase (decrease) in
cash & cash equivalents $ 125,620 $ 467,236 $ (846,528) $ 776,930
CASH AND CASH EQUIVALENTS:
Beginning 446,936 947,757 1,419,084 638,063
------------- ------------ ------------- -------------
Ending $ 572,556 $ 1,414,993 $ 572,556 $ 1,414,993
------------- ------------ ------------- -------------
7
CALCASIEU REAL ESTATE & OIL CO., INC.
PART II OTHER INFORMATION
Item 6. EXHIBITS AND REPORTS ON FORM 8-K
(A) Exhibits
None
(B) Reports on Form 8-K
None
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 July 25, 2002
8