UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-QSB
X Quarterly Report Pursuant to Section 13 or 15(d) of the Securities
--- Exchange Act of 1934
For the Quarterly Period Ended June 30, 1997
--- Transition Report Pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934
Commission File Number 1-5103
BARNWELL INDUSTRIES, INC.
(Exact name of registrant as specified in its charter)
DELAWARE 72-0496921
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
1100 Alakea Street, Suite 2900, Honolulu, Hawaii 96813
(Address of principal executive offices) (Zip code)
(808) 531-8400
(Registrant's telephone number, including area code)
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
requirement for the past 90 days.
Yes X No
--- ---
As of August 12, 1997, there were 1,322,052 shares of common stock, par value
$0.50 per share, outstanding.
<PAGE>
BARNWELL INDUSTRIES, INC.
-------------------------
AND SUBSIDIARIES
----------------
INDEX
-----
PART I. FINANCIAL INFORMATION:
Item 1. Financial Statements
Condensed Consolidated Balance Sheets
June 30, 1997 and September 30, 1996 (Unaudited)
Consolidated Statements of Operations and Retained Earnings
three and nine months ended June 30, 1997 and 1996 (Unaudited)
Condensed Consolidated Statements of Cash Flows
nine months ended June 30, 1997 and 1996 (Unaudited)
Notes to Condensed Consolidated Financial Statements (Unaudited)
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of Operations
PART II. OTHER INFORMATION:
Item 6. Exhibits and reports on Form 8-K
<PAGE>
<TABLE>
<CAPTION>
BARNWELL INDUSTRIES, INC.
-------------------------
AND SUBSIDIARIES
----------------
CONDENSED CONSOLIDATED BALANCE SHEETS
-------------------------------------
(Unaudited, see Note A below)
<S> <C> <C>
ASSETS June 30, September 30,
1997 1996
------------- ------------
CURRENT ASSETS:
Cash $ 3,656,000 $ 3,553,000
Accounts receivable 1,093,000 2,288,000
Other current assets 448,000 710,000
------------- ------------
TOTAL CURRENT ASSETS 5,197,000 6,551,000
INVESTMENT IN LAND 1,606,000 1,115,000
OTHER ASSETS 459,000 445,000
NET PROPERTY AND EQUIPMENT 24,397,000 22,669,000
------------- ------------
TOTAL ASSETS $ 31,659,000 $ 30,780,000
============= ============
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable $ 1,094,000 $ 1,694,000
Accrued expenses 1,170,000 678,000
Other current liabilities 968,000 815,000
------------- ------------
TOTAL CURRENT LIABILITIES 3,232,000 3,187,000
------------- ------------
LONG-TERM DEBT 11,100,000 11,100,000
------------- ------------
DEFERRED INCOME TAXES 5,291,000 5,090,000
------------- ------------
STOCKHOLDERS' EQUITY:
Common stock, par value $.50 per share:
Authorized, 4,000,000 shares
Issued, 1,642,797 shares 821,000 821,000
Additional paid-in capital 3,103,000 3,103,000
Retained earnings 15,061,000 14,121,000
Foreign currency translation adjustments and other (2,244,000) (1,937,000)
Treasury stock, at cost, 320,745 shares (4,705,000) (4,705,000)
------------- ------------
TOTAL STOCKHOLDERS' EQUITY 12,036,000 11,403,000
------------- ------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 31,659,000 $ 30,780,000
============= ============
<FN>
Note A: The balance sheet at September 30, 1996 has been taken from the audited
financial statements at that date and condensed.
See Notes to Condensed Consolidated Financial Statements
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
BARNWELL INDUSTRIES, INC.
-------------------------
AND SUBSIDIARIES
----------------
CONSOLIDATED STATEMENTS OF OPERATIONS AND RETAINED EARNINGS
-----------------------------------------------------------
(Unaudited)
Three months ended Nine months ended
June 30, June 30,
------------------------------- --------------------------------
1997 1996 1997 1996
---- ---- ---- ----
<S> <C> <C> <C> <C>
Revenues:
Oil and natural gas $ 2,420,000 $ 2,710,000 $ 8,860,000 $ 7,980,000
Contract drilling 590,000 480,000 1,330,000 1,890,000
Gas processing and other 270,000 230,000 920,000 630,000
----------- ----------- ----------- -----------
3,280,000 3,420,000 11,110,000 10,500,000
----------- ----------- ----------- -----------
Costs and expenses:
Oil and natural gas operating 869,000 825,000 2,618,000 2,571,000
Contract drilling operating 430,000 332,000 1,123,000 1,357,000
General and administrative 797,000 773,000 2,467,000 2,317,000
Depreciation, depletion and
amortization 629,000 794,000 2,077,000 2,405,000
Interest expense 150,000 180,000 478,000 550,000
----------- ----------- ----------- -----------
2,875,000 2,904,000 8,763,000 9,200,000
----------- ----------- ----------- -----------
Earnings before income taxes 405,000 516,000 2,347,000 1,300,000
Provision for income taxes 295,000 236,000 1,407,000 460,000
----------- ----------- ----------- -----------
NET EARNINGS 110,000 280,000 940,000 840,000
Retained earnings -
beginning of period 14,951,000 13,451,000 14,121,000 12,891,000
----------- ----------- ----------- -----------
Retained earnings - end of period $15,061,000 $13,731,000 $15,061,000 $13,731,000
=========== =========== =========== ===========
NET EARNINGS PER COMMON SHARE $ 0.08 $ 0.21 $ 0.71 $ 0.63
=========== =========== =========== ===========
<FN>
See Notes to Condensed Consolidated Financial Statements
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
BARNWELL INDUSTRIES, INC.
-------------------------
AND SUBSIDIARIES
----------------
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
-----------------------------------------------
(Unaudited)
Nine months ended
June 30,
-------------------------------------
1997 1996
----------- -----------
<S> <C> <C>
Cash Flows from Operating Activities:
Net earnings $ 940,000 $ 840,000
Adjustments to reconcile net earnings to
net cash provided by operating activities:
Depreciation, depletion, and amortization 2,077,000 2,405,000
Deferred income taxes 394,000 (192,000)
----------- -----------
3,411,000 3,053,000
All other 1,296,000 1,073,000
----------- -----------
Net cash provided by operating activities 4,707,000 4,126,000
----------- -----------
Cash Flows from Investing Activities:
Capital expenditures - oil and gas segment (4,892,000) (3,861,000)
Additions to investment in land (491,000) (536,000)
Capital expenditures - contract drilling and other (119,000) (60,000)
(Increase) decrease in long-term other assets (18,000) 208,000
Proceeds from sale of oil and natural gas
properties 981,000 410,000
----------- -----------
Net cash used in investing activities (4,539,000) (3,839,000)
----------- -----------
Cash Flows from Financing Activities:
Net contributions from
joint venture minority interest owner - 140,000
----------- -----------
Net cash provided by financing activities - 140,000
----------- -----------
Effect of exchange rate changes on cash (65,000) (38,000)
----------- -----------
Net increase in cash 103,000 389,000
Cash at beginning of period 3,553,000 2,976,000
----------- -----------
Cash at end of period $ 3,656,000 $ 3,365,000
=========== ===========
Supplemental disclosures of cash flow information:
Cash paid during the period for:
Interest (net of amounts capitalized) $ 439,000 $ 578,000
=========== ===========
Income taxes $ 1,047,000 $ 161,000
=========== ===========
<FN>
See Notes to Condensed Consolidated Financial Statements
</TABLE>
<PAGE>
BARNWELL INDUSTRIES, INC.
-------------------------
AND SUBSIDIARIES
----------------
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
----------------------------------------------------
(Unaudited)
1. CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
-------------------------------------------
The Condensed Consolidated Balance Sheet as of June 30, 1997, the
Consolidated Statements of Operations and Retained Earnings for the three and
nine months ended June 30, 1997 and 1996, and the Condensed Consolidated
Statements of Cash Flows for the nine months ended June 30, 1997 and 1996 have
been prepared by Barnwell Industries, Inc. (referred to herein together with its
subsidiaries as "Barnwell" or the "Company") without audit. In the opinion of
management, all adjustments (which include only normal recurring adjustments)
necessary to present fairly the financial position, results of operations and
cash flows at June 30, 1997 and for all periods presented have been made. The
Condensed Consolidated Balance Sheet as of September 30, 1996 has been derived
from audited financial statements.
Certain information and footnote disclosures normally included in
financial statements prepared in accordance with generally accepted accounting
principles have been condensed or omitted. It is suggested that these condensed
consolidated financial statements be read in conjunction with the financial
statements and notes thereto included in the Company's September 30, 1996 annual
report to stockholders. The results of operations for the period ended June 30,
1997 are not necessarily indicative of the operating results for the full year.
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, liabilities, revenues
and expenses and the disclosure of contingent assets and liabilities. Actual
results could differ significantly from those estimates.
2. EARNINGS PER COMMON SHARE
-------------------------
Earnings per share are based on weighted average outstanding common
shares of 1,325,671 and 1,325,833, respectively, for the three and nine months
ended June 30, 1997 and 1,324,373 and 1,324,521, respectively, for the three and
nine months ended June 30, 1996, after consideration of the dilutive effect of
outstanding stock options and convertible securities.
<PAGE>
3. INCOME TAXES
------------
The components of the provision for income taxes for the three and
nine months ended June 30, 1997 and 1996 are as follows:
Three months ended Nine months ended
June 30, June 30,
------------------------- ------------------------
1997 1996 1997 1996
---------- ---------- ---------- ----------
Current - U.S. $ - $ 10,000 $ - $ 35,000
Current - Foreign 217,000 551,000 1,013,000 617,000
---------- ---------- ---------- ---------
Total - Current 217,000 561,000 1,013,000 652,000
---------- ---------- ---------- ---------
Deferred - U.S. (15,000) (10,000) (40,000) (35,000)
Deferred - Foreign 93,000 (315,000) 434,000 (157,000)
---------- ---------- ---------- ---------
Total - Deferred 78,000 (325,000) 394,000 (192,000)
---------- ---------- ---------- ---------
$ 295,000 $ 236,000 $1,407,000 $ 460,000
========== ========== ========== =========
In the first quarter of fiscal 1996, officials of the U.S. and Canada
formally ratified a new agreement amending the Canada-U.S. Tax Treaty that
reduced the Canadian Branch tax. This change resulted in the recognition of a
deferred income tax benefit of $290,000 in the nine months ended June 30, 1996.
4. STOCK OPTIONS
-------------
The Company adopted the disclosure-only provisions of Statement of
Financial Accounting Standards No. 123, "Accounting for Stock-Based
Compensation" ("SFAS 123") effective October 1, 1996, and intends to provide the
required disclosures in its financial statements for the year ending September
30, 1997. Adoption of the fair value method of measuring stock-based
compensation prescribed by SFAS 123 would not have had an impact on the
Company's net earnings or earnings per share for the three and nine months ended
June 30, 1997 and 1996.
There were no stock option transactions during the three and nine
months ended June 30, 1997 and 1996.
5. IMPACT OF RECENTLY ISSUED PRONOUNCEMENTS
----------------------------------------
In February 1997, the Financial Accounting Standards Board ("FASB")
issued Statement of Financial Accounting Standards ("SFAS") No. 128, "Earnings
Per Share." SFAS No. 128 is effective for both interim and annual periods ending
after December 15, 1997. The Company will adopt SFAS No. 128 in the first
quarter of fiscal 1998. SFAS No. 128 requires the presentation of "Basic"
earnings per share, representing income available to common shareholders divided
by the weighted average number of common shares outstanding for the period, and
"Diluted" earnings per share, which is similar to the current presentation of
fully diluted earnings per share. SFAS No. 128 requires restatement of all prior
period earnings per share data presented. Management does not expect adoption of
SFAS No. 128 to have a material impact on the Company's previously or currently
reported earnings per share, financial position or results of operations.
<PAGE>
In February 1997, the FASB also issued SFAS No. 129, "Disclosure of
Information about Capital Structure," which lists required disclosures about
capital structure that had been included in a number of previously existing
statements and opinions. SFAS No. 129 is effective for periods ending after
December 15, 1997. The Company will adopt the provisions of SFAS No. 129 on
October 1, 1997. Management does not expect adoption of SFAS No. 129 to have a
material impact on the Company's financial condition, results of operations or
liquidity.
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
---------------------------------------------------------------
RESULTS OF OPERATIONS
---------------------
FORWARD-LOOKING STATEMENTS
- --------------------------
This Form 10-QSB contains forward-looking statements within the meaning
of Section 27A of the Securities Act of 1933 and Section 21E of the Securities
Exchange Act of 1934, including various forecasts, projections of the Company's
future performance, statements of the Company's plans and objectives or other
similar types of information. Although the Company believes that its
expectations are based on reasonable assumptions, it cannot assure that the
expectations contained in such forward-looking statements will be achieved. Such
statements involve risks, uncertainties and assumptions which could cause actual
results to differ materially from those contained in such statements. These
forward-looking statements speak only as of the date of filing of this Form
10-QSB, and the Company expressly disclaims any obligation or undertaking to
publicly release any updates or revisions to any forward-looking statements
contained herein.
LIQUIDITY AND CAPITAL RESOURCES
- -------------------------------
Cash flows from operations for the nine months ended June 30, 1997
totaled $4,707,000, a $581,000 or 14% increase over cash flows from operations
for the same period in the prior year. The increase was due to higher earnings
generated by the Company's oil and natural gas segment due to higher product
prices and an increase in collections of receivables, partially offset by an
$886,000 increase in income taxes paid.
During the nine months ended June 30, 1997, the Company invested
$1,156,000 in a natural gas and oil exploration program in the Central Basin in
Michigan. The Company has a 5% working interest in this prospect. Additionally,
the Company raised approximately $1,575,000 from participants who purchased a
7.5% working interest in this prospect. Under the terms of the agreements with
the participants, 30% of the participants' interest will revert to the Company
after the participants receive a return of their entire investment. To date, one
well has been drilled and seven existing well bores have been re-entered with
the goal of producing natural gas. One is a commercial well producing at the
rate of approximately one million cubic feet per day, three are non-commercial
wells and four are currently awaiting further evaluation. The Company, together
with other working interest owners, are currently reviewing the completion
protocol for these four wells, specifically the fracture procedures, with a view
towards re-entering one or more of these four wells in the hope that a new
fracture protocol may enable the production of natural gas in commercial
quantities. These four wells are not included in the tables below.
<PAGE>
In January 1997, the Company exchanged a portion of its approximately
17.5% working interest in a developed natural gas property and a gas plant in
the Thornbury area for a working interest in undeveloped lands in the Thornbury
area plus approximately $830,000 in cash. As a result, the Company's interest in
both the developed and undeveloped properties in the Thornbury area is now
12.5%. No revenue or gain was recognized from this transaction; proceeds were
credited against the full cost pool. The Company spent approximately $930,000
for the nine months ended June 30, 1997 towards the development of 11 wells
(1.38 net wells), all successful, and the completion of new compressor stations
at Thornbury.
During the nine months ended June 30, 1997, the Company invested a
total of $4,892,000 in oil and natural gas properties, as compared to $3,861,000
during the prior year period. For the nine months ended June 30, 1997, the
Company participated in the drilling of 52 wells in Alberta, Canada, Michigan,
North Dakota and Louisiana as follows:
Productive Productive Productive
Oil Wells Gas Wells Oil / Gas Dry Holes Total Wells
----------- ----------- ----------- ----------- ------------
Exp. Dev. Exp. Dev. Exp. Dev. Exp. Dev. Exp. Dev.
---- ----- ---- ---- ---- ---- ---- ---- ---- ----
CANADA
- ------
Gross 2.00 18.00 1.00 12.00 - 4.00 1.00 5.00 4.00 39.00
Net 0.35 1.67 0.04 1.46 - 0.67 0.29 0.71 0.68 4.51
U.S.A.
- ------
Gross - 2.00 1.00 - - - 4.00 2.00 5.00 4.00
Net - 0.27 0.05 - - - 0.19 0.17 0.24 0.44
During the three months ended June 30, 1997, the Company invested
$1,239,000 in oil and natural gas properties, as compared to $1,051,000 during
the prior year's third quarter. For the three months ended June 30, 1997, the
Company participated in the drilling of 19 wells in Alberta, Canada, Michigan
Productive Productive Productive
Oil Wells Gas Wells Oil / Gas Dry Holes Total Wells
----------- ----------- ----------- ----------- ------------
Exp. Dev. Exp. Dev. Exp. Dev. Exp. Dev. Exp. Dev.
---- ----- ---- ---- ---- ---- ---- ---- ---- ----
CANADA
- ------
Gross - 10.00 - 1.00 - 1.00 1.00 2.00 1.00 14.00
Net - 1.06 - 0.09 - 0.11 0.29 0.20 0.29 1.46
U.S.A.
- ------
Gross - 1.00 - - - - 3.00 - 3.00 1.00
Net - 0.23 - - - - 0.14 - 0.14 0.23
"Net well" refers to Barnwell's aggregate participating interest in a
given number of gross wells. For example, a 50% interest in a well represents
one gross well, but 0.50 net well. The gross figure includes Barnwell's
interest, as well as the portion owned by others.
The Company invested $491,000 towards the rezoning of the North Kona,
Hawaii, property interest held by Kaupulehu Developments, a 50.1% owned joint
venture, and invested $119,000 in contract drilling and other assets for the
nine months ended June 30, 1997.
<PAGE>
The Company's revolving credit facility with its bank was renewed
through March 1, 1998 for $14,000,000 ($19,000,000 Canadian dollars). This
represents an increase in the credit facility of approximately $3,000,000. The
Company had approximately $5,000,000 of available credit under the facility at
June 30, 1997. Cash at June 30, 1997 totaled $3,656,000 and working capital
totaled $1,965,000. The Company anticipates that it will fund its planned
capital expenditures for drilling for the remainder of the fiscal year with
existing cash balances and future cash flows from operations.
RESULTS OF OPERATIONS
- ---------------------
Oil and Gas
- -----------
SELECTED OPERATING STATISTICS
-------------------------------------------------
Average Prices
-------------------------------------------------
Three months ended Increase
June 30, (Decrease)
------------------------- -----------------
1997 1996 $ %
--------- ---------- -------- ---
Oil (Bbls)* $ 18.13 $ 18.57 (0.44) (2)
Liquids (Bbls)* $ 16.38 $ 14.55 1.83 13
Gas (MCF)** $ 1.39 $ 1.19 0.20 17
Nine months ended Increase
June 30, (Decrease)
------------------------ -----------------
1997 1996 $ %
--------- --------- ------- ---
Oil (Bbls)* $ 20.17 $ 16.38 3.79 23
Liquids (Bbls)* $ 19.04 $ 12.96 6.08 47
Gas (MCF)** $ 1.54 $ 1.12 0.42 38
Net Sales Volumes
-------------------------------------------------
Three months ended Increase
June 30, (Decrease)
------------------------ -----------------
1997 1996 Units %
--------- --------- --------- ---
Oil (Bbls)* 44,000 52,000 (8,000) (15)
Liquids (Bbls)* 14,000 17,000 (3,000) (18)
Gas (MCF)** 874,000 1,008,000 (134,000) (13)
Nine months ended Increase
June 30, (Decrease)
------------------------ -----------------
1997 1996 Units %
--------- --------- --------- ---
Oil (Bbls)* 142,000 153,000 (11,000) (7)
Liquids (Bbls)* 46,000 60,000 (14,000) (23)
Gas (MCF)** 2,844,000 3,416,000 (572,000) (17)
*Bbls = stock tank barrel equivalent to 42 U.S. gallons
**MCF = 1,000 cubic feet
Oil and natural gas revenues decreased $290,000 (11%) for the three
months ended June 30, 1997, as compared to the same period in 1996, due to
production decreases in oil, natural gas liquids and natural gas of 15%, 18% and
13%, respectively, partially offset by price increases of 17% and 13% for
natural gas and natural gas liquids, respectively. The decline in production for
all products was due to normal production declines in the Company's properties
and to the reduction of its interest in the Thornbury property due to the
rationalization of the Company's Thornbury property, discussed above, with
surrounding undeveloped land.
<PAGE>
Oil and natural gas revenues increased $880,000 (11%) for the nine
months ended June 30, 1997, as compared to the same period in 1996, due to price
increases of 47%, 38% and 23% for natural gas liquids, natural gas and oil,
respectively. This increase due to higher prices was partially offset by
production decreases in natural gas liquids, natural gas and oil of 23%, 17% and
7%, respectively. The decline in production of all products was due to normal
production declines in the Company's properties and to the reduction of its
interest in the Thornbury property due to the rationalization of the Company's
Thornbury property, discussed above, with surrounding undeveloped land.
Oil and natural gas operating expenses increased $44,000 (5%) for the
three months ended June 30, 1997, as compared to the same period in 1996, due to
operating expenses related to new prospects in Michigan. This increase was
partially offset by lower operating expenses due to decreased natural gas
production. Oil and natural gas operating expenses were relatively comparable
for the nine months ended June 30, 1997, as compared to the same period in 1996,
increasing by $47,000 (2%).
Contract Drilling
- -----------------
Contract drilling revenues and costs are associated with water well
drilling and water pump installation, replacement and repair in Hawaii. Demand
for well drilling and pump installation services is dependent upon land
development activities in Hawaii, which has decreased significantly from prior
years' levels. Demand for water pump replacement and repair is primarily
dependent upon the timing of water system renovations and replacements by water
utilities and other entities.
For the three months ended June 30, 1997, contract drilling revenues
increased $110,000 (23%) and operating profit before depreciation increased
$12,000 (8%), as compared to the same period in the prior year, due to increased
revenue and profits generated by pump repair operations.
For the nine months ended June 30, 1997, contract drilling revenues
decreased $560,000 (30%) and operating profit before depreciation decreased
$326,000 (61%), as compared to the same period in the prior year, due primarily
to the fact that work performed on a significant pump renovation contract
contributed $403,000 of revenues in the prior year period; this job contributed
only $58,000 in revenues in the current year period as the job was nearly
complete as of the end of the previous fiscal year. Operating results also
decreased as compared to the prior year period due to lower demand for water
well drilling and pump installation work.
Included in contract drilling revenues for the nine months ended June
30, 1997 is $230,000 of revenues resulting from the receipt of payment in full
on a well drilling contract which was completed in 1994; the contract had been
discounted due to risks associated with the length of time between completion of
the contract and the due date of the final payment. Gross margin before
depreciation related to this item amounted to $150,000 for the nine months ended
June 30, 1997.
<PAGE>
Gas Processing and Other
- ------------------------
Gas processing and other income increased $40,000 (17%) and $290,000
(46%) for the three and nine months ended June 30, 1997, respectively, as
compared to the same period in 1996, due to an increase in non-unit gas
processed at the Dunvegan gas plants.
General and Administrative Expenses
- -----------------------------------
General and administrative expenses increased $24,000 (3%) and $150,000
(6%) for the three and nine months ended June 30, 1997, respectively, as
compared to the same periods in 1996, due to increased personnel costs and
general inflationary increases.
Depreciation, Depletion and Amortization
- ----------------------------------------
Depreciation, depletion and amortization decreased $165,000 (21%) and
$328,000 (14%) for the three and nine months ended June 30, 1997, respectively,
as compared to the same periods in 1996. The decrease was due to lower natural
gas, oil and natural gas liquids production in the current year periods,
partially offset by an increase in the U.S. depletion rate.
Interest Expense
- ----------------
Interest expense decreased $30,000 (17%) and $72,000 (13%), for the
three and nine months ended June 30, 1997, respectively, as compared to the same
periods in 1996, due primarily to higher capitalized interest costs related to
the Company's development of land in Hawaii and natural gas and oil properties
in the Central Basin in Michigan.
<PAGE>
PART II. OTHER INFORMATION
Item 6. Exhibits and reports on Form 8-K
None.
SIGNATURE
---------
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.
BARNWELL INDUSTRIES, INC.
-------------------------
(Registrant)
/s/ Russell M. Gifford
------------------------
Russell M. Gifford
Vice President and
Chief Financial Officer
Date: August 12, 1997
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
This schedule contains summary financial information extracted from
Barnwell Industries Inc.'s third quarter 10-QSB and is
qualified in its entirety by reference to such 10-QSB.
</LEGEND>
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> SEP-30-1997
<PERIOD-END> JUN-30-1997
<CASH> 3656
<SECURITIES> 0
<RECEIVABLES> 1103
<ALLOWANCES> 10
<INVENTORY> 70
<CURRENT-ASSETS> 5197
<PP&E> 56558
<DEPRECIATION> 32161
<TOTAL-ASSETS> 31659
<CURRENT-LIABILITIES> 3232
<BONDS> 11100
0
0
<COMMON> 821
<OTHER-SE> 11215
<TOTAL-LIABILITY-AND-EQUITY> 31659
<SALES> 10190
<TOTAL-REVENUES> 11110
<CGS> 3741
<TOTAL-COSTS> 3741
<OTHER-EXPENSES> 2077
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 478
<INCOME-PRETAX> 2347
<INCOME-TAX> 1407
<INCOME-CONTINUING> 940
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 940
<EPS-PRIMARY> .71
<EPS-DILUTED> 0
</TABLE>
