Form 10-QSB
U.S. Securities and Exchange Commission
Washington, D.C. 20549
(Mark One)
[XX]QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For Quarter Ended September 30, 1996
[ ]TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE
EXCHANGE ACT
For the transition period from to
Commission File Number: 0-7775
WESTLAND DEVELOPMENT CO., INC.
------------------------------
(Exact name of small business issuer as
specified in its charter)
NEW MEXICO 85-0165021
- --------------------------------- -------------------------------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
401 Coors Blvd., N.W.,
Albuquerque, New Mexico 87121
- -------------------------------------------------------------------------------
(Address of principal executive offices)
(505)831-9600
- -------------------------------------------------------------------------------
(Issuer's telephone number)
N/A
- -------------------------------------------------------------------------------
(Former name, former address and former fiscal year, if changed since last
report)
Check whether the issuer (1) filed all reports required to be filed by
Section 13 or 15(d) of the Securities Exchange Act during the past 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 [ ]
State the number of shares outstanding of each of the issuer's classes of
common equity as of November 11, 1996:
No Par Value Common: 716,608
Class A $1.00 Par Value Common: NONE
Class B $1.00 Par Value Common: 86,100
Transitional Small Business Format (check one) Yes [ ] No [ X ]
PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
WESTLAND DEVELOPMENT CO., INC.
BALANCE SHEET
(unaudited)
September 30, 1996
ASSETS
Cash and cash equivalents ........................ $ 1,133,095
Receivables:
Real estate contracts ......................... $ 125,685
Less related deferred profit ............. 89,656
------------
36,029
Note receivable - related party ............... 69,653
Other receivables ............................. 104,784
Accrued interest .............................. 1,797 212,263
------------
Land and improvements held for
future development ............................ 5,185,555
Income producing properties, net ................. 7,223,704
Property and equipment, net of accumulated
depreciation of $363,554 ...................... 400,580
Investment in Partnerships and joint ventures .... 507,529
Other ............................................ 492,017
------------
$ 15,154,743
============
LIABILITIES AND STOCKHOLDER'S EQUITY
Accounts payable, accrued expenses
and other liabilities ......................... $ 49,912
Accrued interest payable ......................... 33,103
Deferred income taxes ............................ 3,233,000
Notes, bonds, mortgages and assessments payable .. 7,342,746
------------
Total liabilities ............... 10,658,761
Stockholders' equity
Common stock - no par value;
authorized, 736,668 shares;
issued and outstanding,
716,608 shares ............................. 8,500
Class A common stock - $1.00 par
value; authorized, 736,668
shares; issued, none ....................... --
Class B common stock - $1.00 par
value; authorized, 491,112
shares; issued and outstanding,
86,100 shares .............................. 86,100
Additional paid-in capital .................... 581,527
Retained earnings ............................. 3,819,855 4,495,982
------------ ------------
$ 15,154,743
============
WESTLAND DEVELOPMENT CO., INC.
STATEMENTS OF OPERATIONS
(unaudited)
For the 3 months ended
September 30,
1996 1995
----------- -----------
Revenues
Land ...................................... $ 218,233 $ 788,323
Deferred profit recognized
on installment sales .................... 6,911 7,051
Rentals ................................... 93,755 71,060
--------- ---------
318,899 866,434
Costs and expenses
Cost of land revenues ..................... 102,693 295,060
Cost of rentals ........................... 19,476 33,533
Other general and administrative .......... 516,581 413,890
Legal ..................................... 818 37,274
--------- ---------
639,568 779,757
--------- ---------
Income(loss)from operations ............ (320,669) 86,677
Other (income) expense
Interest income ........................... (28,129) (44,008)
Gain on sale of property and
equipment ............................ (1,612) (100)
Other income .............................. -- (14,612)
Interest expense .......................... 110,445 74,656
Equity in losses of partnerships .......... 36,705 --
--------- ---------
117,409 15,936
Earnings (loss) before income .......... -- --
taxes ............................... (438,078) 70,741
Income tax expense (benefit) ................. (175,231) 28,700
--------- ---------
NET EARNINGS(LOSS) ..................... $(262,847) $ 42,041
========= =========
Weighted average common and
common equivalent shares
outstanding ............................... 800,670 786,893
========= =========
Net earnings (loss) per common and
common equivalent share ................... $ (.33) $ .05
========= =========
WESTLAND DEVELOPMENT CO., INC.
STATEMENTS OF CASH FLOWS
(unaudited)
For the three months ended
September 30,
1996 1995
------------- -------------
Cash flows from operating activities
Cash received from land sales
and collections on real
estate contracts receivable ................. $ 424,302 $ 1,406,436
Cash paid to develop real estate .............. (171,040) (87,463)
Cash received from rental operations .......... 88,640 85,611
Cash paid for rental operations ............... (1,350) (1,466)
Cash received for property taxes
and maintenance ............................ 8,892 1,590
Interest received ............................. 56,022 39,455
Interest paid ................................. (138,874) (98,463)
Income taxes paid ............................. (262,000) (160,050)
Legal and other general and
administrative costs paid ................... (544,265) (672,931)
Other ......................................... (90,638) 19,712
------------ ------------
Net cash provided (used) by
operating activities ........................ (630,311) 532,431
------------ ------------
Cash flows from investing activities
Capital expenditures for income
producing and other properties .............. (874,414) (85,278)
------------ ------------
Net cash used by investing activities ........ (874,414) (85,278)
------------ ------------
Cash flows from financing activities
Borrowing on notes, mortgages and
assessments payable ........................ 936,484 --
Repayments of bonds, mortgages,
notes and assessments payable ............... (27,605) (53,233)
Exercise of stock options ..................... 41,325 82,650
Payment of dividends .......................... (480,125) (475,625)
------------ ------------
Net cash provided by (used)
in financing activities ..................... 470,079 (446,208)
------------ ------------
NET INCREASE (DECREASE)IN CASH
AND CASH EQUIVALENTS ......................... (1,034,646) 945
Cash and cash equivalents at
beginning of period .......................... 2,167,741 1,917,803
------------ ------------
Cash and cash equivalents at
end of period ................................ $ 1,133,095 $ 1,918,748
============ ============
Reconciliation of net earnings
(loss) to net cash used in
operating activities
Net earnings (loss) ............................ $ (262,847) $ 42,041
Adjustments to reconcile net
earnings(loss)to net cash used in
operating activities
Depreciation .............................. 31,911 42,470
Collection on real estate
contracts receivable .................... 237,976 442,400
Profit recognized on prior
years' installment sales ................ (6,911) (7,051)
Change in
Rents receivable, accrued interest,
property tax and other .................. (34,391) 109,391
Land and improvements held for
future development and income
producing properties .................... (69,134) 329,817
Other assets .............................. 13,741 (24,886)
Accounts and retainages payable,
accrued interest and other
liabilities ............................ (540,656) (401,751)
------------ ------------
Net cash provided (used) by
operating activities ......................... $ (630,311) $ 532,431
============ ============
WESTLAND DEVELOPMENT CO., INC.
NOTES TO THE FINANCIAL STATEMENTS
(unaudited)
September 30, 1996
1. The balance sheet at September 30, 1996, statements of cash flows and
statements of operations for the three months ended September 30, 1996 and
September 30, 1995 have been prepared by the Company, without audit. In the
opinion of management, all adjustments, including normal recurring adjustments
necessary to present fairly the financial position, results of operations and
cash flows, have been made. Certain information and footnote disclosures
normally included in financial statements prepared in accordance with generally
accepted accounting principals have been condensed or omitted. It is suggested
that these financial statements be read in conjunction with the Company's
audited financial statements at June 30, 1996. The results of operations for the
three months ended September 30, 1996 are not necessarily indicative of
operating results for the full year.
2. The computation of net earnings (loss) per common and common equivalent
share has been based upon the weighted average number of shares of outstanding
common stock and common stock issuable without further consideration (referred
to as equivalents), which for the three month period ended September 30, 1996
was 800,670 and for the three month period ended September 30, 1995 was 786,893.
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS
During the three months ended September 30, 1996, the Company's cash and
cash equivalents decreased by $1,034,646. During this period, operations used
$630,311, received $41,325 from the sale of stock, invested $874,414 in fixed
and other assets, retired $27,605 of debt, borrowed $936,484 and paid dividends
in the amount of $480,125.
During the first quarter of the current fiscal year, the Company had
revenue of $318,899 compared to $866,434 during the same period in the prior
fiscal year. Operating expenses during the three months ended September 30,
1996, were $639,568 compared to $779,757 during the comparable period in 1995.
In April 1995, the Company began selling small improved residential lots in
addition to the large tracts it had sold in the past. These sales amounted to
$145,600 in the first quarter and added $86,213 to the cost of sales for the
period.
The Company may expend approximately $900,000 or more to acquire
replacement lands and property for the land sold to the National Park Service
under threat of condemnation. In the event the Company does not replace the
property sold to the National Park Service, it may need to utilize a substantial
portion of its liquid investments for federal and state income taxes.
PART II. OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
Other than the ordinary routine litigation incidental to the Company's
business, neither the Company nor any member of management is the subject of any
pending or threatened legal proceeding.
ITEM 2. CHANGES IN SECURITIES
NONE
ITEM 3. DEFAULTS IN SENIOR SECURITIES
NONE
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
NONE
ITEM 5. OTHER INFORMATION
NONE
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) There are no exhibits required by Item 601 of Regulation S-K.
(b) Reports on Form 8-K. State whether any reports on Form 8-K have been
filed during the quarter for which this report is filed, listing the items
reported, any financial statements filed, and the dates of any such reports.
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.
WESTLAND DEVELOPMENT CO., INC.
DATE: November 12, 1996 By: Barbara Page
---------------------------
Barbara Page, President,
Chief Executive Officer and
Chief Accounting Officer
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