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 March 31, 1997
[ ]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 May 12, 1997:
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)
March 31, 1997
ASSETS
Cash and cash equivalents .......................... $ 697,153
Receivables:
Real estate contracts ........................... $ 90,996
Less related deferred profit ............... 69,950
-----------
21,046
Note receivable - related party ................. 68,566
Other receivables ............................... 116,338
Accrued interest ................................ 563 206,513
-----------
Land and improvements held for
future development .............................. 5,655,629
Income producing properties, net ................... 7,154,234
Property and equipment, net of accumulated
depreciation of $388,444 ........................ 388,108
Investment in Partnerships and joint ventures ...... 524,947
Other .............................................. 529,826
-----------
$15,156,410
===========
LIABILITIES AND STOCKHOLDER'S EQUITY
Accounts payable, accrued expenses
and other liabilities ........................... $ 158,462
Accrued interest payable ........................... 65,253
Deferred income taxes .............................. 3,233,000
Notes, bonds, mortgages and assessments payable .... 7,171,588
-----------
Total liabilities ................. 10,628,303
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 ............................... 3,851,980 4,528,107
----------- -----------
$15,156,410
===========
WESTLAND DEVELOPMENT CO., INC.
STATEMENTS OF OPERATIONS
(unaudited)
For the three months ended
March 31,
1997 1996
----------- -----------
Revenues
Land ...................................... $ 34,793 $ 465,617
Deferred profit recognized
on installment sales .................... 4,493 9,049
Rentals ................................... 173,120 117,978
----------- -----------
212,406 592,644
Costs and expenses
Cost of land revenues ..................... (19,321) 158,144
Cost of rentals ........................... 47,817 35,771
Other general and administrative .......... 445,648 416,857
Legal ..................................... 3,125 16,869
----------- -----------
477,269 627,641
----------- -----------
Operating loss ......................... (264,863) (34,997)
Other (income) expense
Interest income ........................... (10,234) (13,966)
Gain on sale of property and
equipment ............................ -- (50)
Other income .............................. -- (17,468)
Interest expense .......................... 153,154 83,949
Equity in losses of partnerships .......... 1,650 4,919
----------- -----------
144,570 57,384
----------- -----------
Loss before income taxes ............... (409,433) (92,381)
Income tax expense (benefit) ................. (163,280) --
----------- -----------
NET LOSS ............................... $ (246,153) $ (92,381)
=========== ===========
Weighted average common and
common equivalent shares
outstanding ............................... 802,708 795,208
=========== ===========
Net earnings (loss) per common and
common equivalent share ................... $ (.31) $ (.12)
=========== ===========
WESTLAND DEVELOPMENT CO., INC.
STATEMENTS OF OPERATIONS
(unaudited)
For the nine months ended
March 31,
1997 1996
----------- -----------
Revenues
Land .................................... $ 1,373,279 $ 1,763,517
Deferred profit recognized
on installment sales .................. 26,616 27,909
Rentals ................................. 442,551 300,234
----------- -----------
1,842,446 2,091,660
Costs and expenses
Cost of land revenues ................... 286,146 648,342
Cost of rentals ......................... 97,968 102,290
Other general and administrative ........ 1,416,350 1,355,105
Legal ................................... 6,258 64,063
----------- -----------
1,806,722 2,169,800
----------- -----------
Operating income (loss) .............. 35,724 (78,140)
Other (income) expense
Interest income ......................... (61,376) (82,186)
Gain on sale of property and
equipment .......................... (1,752) (200)
Other income ............................ -- (50,793)
Interest expense ........................ 444,010 264,598
Equity in losses of partnerships ........ 38,564 6,567
----------- -----------
419,446 137,986
----------- -----------
Loss before income taxes ............. (383,722) (216,126)
Income tax expense (benefit) ............... (153,000) --
----------- -----------
NET LOSS ............................. $ (230,722) $ (216,126)
=========== ===========
Weighted average common and
common equivalent shares
outstanding ............................. 802,024 792,153
=========== ===========
Net earnings (loss) per common and
common equivalent share ................. $ (.29) $ (.27)
=========== ===========
WESTLAND DEVELOPMENT CO., INC.
STATEMENTS OF CASH FLOWS
(unaudited)
For the nine months ended
March 31,
1997 1996
----------- -----------
Cash flows from operating activities
Cash received from land sales
and collections on real
estate contracts receivable ............... $ 1,588,331 $ 2,411,213
Cash paid to develop real estate ............ (824,545) (522,298)
Cash received from rental operations ........ 441,420 292,510
Cash paid for rental operations ............. (3,975) (3,336)
Cash paid for property taxes
and maintenance .......................... (57,828) (97,440)
Interest received ........................... 81,021 70,192
Interest paid ............................... (434,096) (260,804)
Income taxes paid ........................... (262,000) (214,113)
Legal and other general and
administrative costs paid ................. (1,295,883) (1,508,744)
Other ....................................... 6,600 49,226
----------- -----------
Net cash provided (used) by
operating activities ...................... (760,955) 216,406
----------- -----------
Cash flows from investing activities
Capital expenditures for income
producing and other properties ............ (893,790) (53,683)
Proceeds from sale of assets ................ 1,873 200
Investment in Partnerships .................. (110,445) (486,166)
----------- -----------
Net cash used by investing activities ...... (1,002,362) (539,649)
----------- -----------
Cash flows from financing activities
Borrowing on notes, mortgages and
assessments payable ...................... 1,811,148 646,200
Proceeds from sale of stock .................. 41,325 96,425
Repayments of bonds, mortgages,
notes and assessments payable ............. (1,079,619) (142,656)
Payment of dividends ......................... (480,125) (475,625)
----------- -----------
Net cash provided by (used)
in financing activities ................... 292,729 124,344
----------- -----------
NET DECREASE IN CASH
AND CASH EQUIVALENTS ....................... (1,470,588) (198,899)
Cash and cash equivalents at
beginning of period ........................ 2,167,741 1,917,803
----------- -----------
Cash and cash equivalents at
end of period .............................. $ 697,153 $ 1,718,904
=========== ===========
Reconciliation of net earnings
(loss) to net cash used in
operating activities
Net loss ..................................... $ (230,722) $ (216,126)
Adjustments to reconcile net
earnings(loss)to net cash used in
operating activities
Depreciation ............................ 132,808 127,971
Collection on real estate
contracts receivable .................. 272,664 471,983
Profit recognized on prior
years' installment sales .............. (26,617) (27,909)
Gain on sale of assets .................. (1,752) (200)
Change in
Rents receivable, accrued interest,
property tax and other ................ (43,323) 174,456
Land and improvements held for
future development and income
producing properties .................. (539,208) 203,110
Other assets ............................ 67,958 (143,967)
Accounts and retainages payable,
accrued interest and other
liabilities .......................... (393,763) (372,912)
----------- -----------
Net cash provided (used) by
operating activities ....................... $ (760,955) $ 216,406
=========== ===========
WESTLAND DEVELOPMENT CO., INC.
NOTES TO THE FINANCIAL STATEMENTS
(unaudited)
March 31, 1997
1. The balance sheet at March 31, 1997, statements of cash flows for the
nine months ended March 31, 1997 and 1996 and statements of operations for the
nine and three month periods ended March 31, 1997 and 1996 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 nine months ended March 31, 1997 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 on the weighted average number of shares of outstanding
common stock and common stock issuable without further consideration (referred
to as equivalents), which for the nine and three month periods ended March 31,
1997 were 802,024 and 802,708, respectively and for the nine and three month
periods ended March 31, 1996 were 792,153 and 795,208, respectively.
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS
During the nine months ended March 31, 1997, the Company's cash and cash
equivalents decreased by $1,470,587. During this period, the Company received
$41,325 from the sale of stock, invested $1,002,362, net, in fixed and other
assets, retired $1,079,619 of debt, borrowed $1,811,148 and paid dividends in
the amount of $480,125. Operations used $760,955.
During the third quarter of the current fiscal year, the Company had
revenue of $212,406 compared to $592,644 for the same quarter in the prior
fiscal year. Operating expenses for the quarter were $496,590 compared to
$627,641 for the same period in 1996. Revenue for the nine months ended March
31, 1997 was $1,842,446 compared to $2,091,660 in 1996 and operating expenses
were $1,806,722 in 1997 and $2,169,800 in 1996. Revenue in 1997 is lower due to
decreased levels of land sales.
The Company may expend approximately $830,000 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: May 12, 1997 By: Barbara Page
---------------------------
Barbara Page, President,
Chief Executive Officer and
Chief Accounting Officer
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