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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 June 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   (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   ü   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, 2003, 1,952,294 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 June 30, 2003

 

TABLE OF CONTENTS

 

          Page
No.


Part I

   FINANCIAL INFORMATION     
     Management’s Discussion and Analysis of Financial Condition and Results of Operations Balance Sheets    3
     June 30, 2003 and December 31, 2002 Statements of Income and Retained Earnings Six Months Ended June 30, 2003 and June 30, 2002    4-5
     Statements of Cash Flows Six Months Ended June 30, 2003 and June 30, 2002    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-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 and 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, which was derived from audited financial statements. 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 $198,683 net income for the second quarter of 2003 compared to $264,384 for the second quarter of 2002 and $251,777 for the first quarter of 2003. Net income for the first six months of 2003 was $450,460 compared to $354,375 for the first six months of 2002 or an increase of 27.1%. The differences were almost totally due to changes in revenues from oil and gas properties. The decrease in the current quarter from the second quarter of 2002 was due to lower mineral lease income and decrease in receipts from the Company’s small working interests in two wells in the Woodlawn field. The decrease in the current quarter from the first quarter of 2003 was due to decrease in receipts from the Woodlawn field and lower prices. The difference in general and administrative expenses for the three months ended June 30, 2003, and June 30, 2002, was due to the timing of the payment of the franchise tax.

 

Included in oil and gas income for the second quarter was $36,324, first payment from settlement of the Strohe suit. Total remaining payments are presently unknown.

 

The Board of Directors has decided to disburse as dividends all income that is determined unnecessary for prudent future operations. This was decided as a consequence of changes in the federal taxation of dividends.

 

 

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Table of Contents

CALCASIEU REAL ESTATE & OIL CO., INC.

 

BALANCE SHEET

 

ASSETS

 

CURRENT ASSETS    June 30,
2003


   December 31,
2002


Cash and cash equivalents

   $ 432,812    $ 583,327

Accounts receivables

     173,533      152,373

Prepaid income tax & expenses

     22,518      64,793

Inventory, crops

     0      10,125
    

  

Total Current Assets

     628,863      810,618
    

  

SECURITIES AVAILABLE FOR SALE

     1,499,478      1,361,123
    

  

PROPERTY AND EQUIPMENT,

             

Less accumulated depreciation, Depletion and amortization

     89,896      91,949

Timber, less accumulated depletion

     502,535      484,161

Land

     3,904,419      3,904,851
    

  

Total Property

     4,496,850      4,480,961
    

  

TOTAL

   $ 6,625,191    $ 6,652,702
    

  

 

 

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Table of Contents

CALCASIEU REAL ESTATE & OIL CO., INC.

 

BALANCE SHEET

 

LIABILITIES & STOCKHOLDERS’ EQUITY

 

CURRENT LIABILITIES    June 30,
2003


   December 31,
2002


Trade payables and accrued expenses

   $ 5,184    $ 8,863

Dividends payable

     0      195,742

Current deferred tax liability, net

     39,812      23,370
    

  

Total Current Liabilities

     44,996      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

     6,799,920      6,642,737

Accumulated other comprehensive income

     41,228      16,563
    

  

       6,913,404      6,731,556

Less cost treasury stock (2003 – 147,706 shares;

             

2002 – 144,956 shares)

     333,209      306,829
    

  

Total Equity

     6,580,195      6,424,727
    

  

TOTAL

   $ 6,625,191    $ 6,652,702
    

  

 

 

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CALCASIEU REAL ESTATE & OIL CO., INC.

 

STATEMENTS OF INCOME AND RETAINED EARNINGS

 

     Three Months Ended

    Six Months Ended

 
     June 30,
2003


    June 30,
2002


    June 30,
2003


    June 30,
2002


 

REVENUES

                                

Income-primarily from oil and gas properties

   $ 300,246     $ 387,640     $ 678,743     $ 525,653  

Agriculture Income

     43,750       13,754       102,036       77,335  

Timber Income

     19,091       51,596       32,514       77,090  
    


 


 


 


TOTAL

   $ 363,087     $ 452,990     $ 813,293     $ 680,078  
    


 


 


 


COSTS AND EXPENSES

                                

Forestry expenses

   $ 4,549     $ 3,794     $ 12,356     $ 10,637  

Agriculture expense

     1,001       2,684       3,837       5,855  

Oil and gas production costs

     16,276       24,078       35,621       35,868  

General and Administrative

     63,535       48,728       130,810       130,219  

Depreciation and depletion

     2,330       2,629       4,376       3,954  
    


 


 


 


TOTAL

   $ 87,691     $ 81,913     $ 187,000     $ 186,533  
    


 


 


 


OTHER INCOME (EXPENSE)

                                

Interest

   $ 3,879     $ 4,967     $ 8,486     $ 9,751  

Dividends on Common Stock

     7,916       8,562       15,833       11,266  
    


 


 


 


TOTAL

   $ 11,795     $ 13,529     $ 24,319     $ 21,017  
    


 


 


 


INCOME OR LOSS BEFORE

                                

INCOME TAXES AND

                                

EXTRAORDINARY CREDITS

   $ 287,191     $ 384,606     $ 650,612     $ 514,562  

PROVISION FOR INCOME TAXES:

                                

Current

     88,508       120,222       200,152       160,187  
    


 


 


 


NET INCOME OR (LOSS)

   $ 198,683     $ 264,384     $ 450,460     $ 354,375  

RETAINED EARNINGS, BEGINNING OF PERIOD

     6,796,526       6,379,609       6,642,737       6,387,579  

DIVIDENDS

     (195,289 )     (89,717 )     (293,277 )     (187,678 )
    


 


 


 


RETAINED EARNINGS, END OF PERIOD

   $ 6,799,920     $ 6,554,276     $ 6,799,920     $ 6,554,276  
    


 


 


 


NET INCOME PER COMMON SHARE

   $ .10     $ .13     $ .23     $ .18  

OTHER COMPREHENSIVE INCOME

                                

BEGINNING OF PERIOD

   $ 14,948     $ 26,059     $ 16,563     $ 26,059  

Unrealized Securities Gains (Losses)

                                

Net of income taxes

     26,280       5,100       24,665       5,100  
    


 


 


 


OTHER COMPREHENSIVE INCOME

                                

END OF PERIOD

   $ 41,228     $ 31,159     $ 41,228     $ 31,159  
    


 


 


 


 

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Table of Contents

CALCASIEU REAL ESTATE & OIL CO., INC.

 

STATEMENTS OF CASH FLOWS

 

     Three Months Ended

    Six Months Ended

 
     June 30,
2003


    June 30,
2002


    June 30,
2003


    June 30, 2002

 

CASH FLOWS FROM OPERATING ACTIVITIES:

                                

Net income (or Loss)

   $ 198,683     $ 264,384     $ 450,460     $ 354,375  

Non cash (income) expenses included in net income: Depreciation, depletion and amortization

     2,330       2,629       4,376       3,954  

CHANGE IN ASSETS AND LIABILITIES:

                                

Increase) decrease in accounts receivable

     138,109       (49,071 )     (21,160 )     (93,009 )

(Increase) decrease in inventory

                     10,125       11,042  

(Increase) decrease in prepaid expenses and prepaid income taxes

     (22,518 )     113,091       42,275       174,452  

Increase (decrease) in trade payables

     (100 )     5,916       (3,679 )     16,818  

Increase (decrease) in income tax payable

     (50,531 )     7,131       0       7,131  
    


 


 


 


Net Cash Provided by Operating Activities

   $ 265,973     $ 344,080     $ 482,397     $ 474,763  
    


 


 


 


CASH FLOWS FROM INVESTING ACTIVITIES:

                                

Purchase of securities available for sale

   $ (300,355 )   $ (103,266 )   $ (798,905 )   $ (1,003,199 )

Maturity of securities available for sale

     1,000       0       701,657       0  

Reforestation expenditure

     0       (18,780 )     (20,000 )     (18,780 )

Land (purchase) or refund

     432       (5,564 )     432       (12,737 )

Purchase of equipment

     (348 )     (1,151 )     (697 )     (1,151 )
    


 


 


 


     $ (299,271 )   $ (128,761 )   $ (117,513 )   $ (1,035,867 )
    


 


 


 


CASH FLOWS FROM FINANCING ACTIVITIES:

                                

Dividends paid

   $ (293,278 )   $ (89,699 )   $ (489,019 )   $ (285,424 )

Payments to acquire treasury stock

     (26,380 )     0       (26,380 )     0  
    


 


 


 


Net cash provided by (used in)

                                

financing activities

   $ (319,658 )   $ (89,699 )   $ (515,399 )   $ (285,424 )
    


 


 


 


Net increase (decrease) in cash & cash equivalents

   $ (352,956 )   $ 125,620     $ (150,515 )   $ (846,528 )

CASH AND CASH EQUIVALENTS:

                                

Beginning

     785,768       446,936       583,327       1,419,084  
    


 


 


 


Ending

   $ 432,812     $ 572,556     $ 432,812     $ 572,556  
    


 


 


 


 

 

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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

 

 

Charles D. Viccellio


Charles D. Viccellio

Vice-President and Secretary

 

Dated August 6, 2003

 

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