Form 1O-Q
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Quarterly Report Under Section 13 or
15(d) of the
Securities Exchange Act of 1934
For the Quarter Ended September 30, 1999
Commission File No. 0-1392
Central Coal & Coke Corporation and Subsidiaries
Incorporated in State of Delaware IRS Number: 44-0195290
127 West 10th Street, Room 666
Kansas City, Missouri 64105
Phone: 816-842-2430
Common stock outstanding as of September 30, 1999
$1 par value; 354,398 shares
The Registrant (l) has filed all reports required to be filed by
Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding twelve months, and (2) has been subject to such
filing requirements for the past ninety days.
Yes [X] No [ ]
<PAGE>
CENTRAL COAL & COKE CORPORATION AND SUBSIDIARIES
KANSAS CITY, MISSOURI
TABLE OF CONTENTS
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements:
Consolidated Balance Sheets
- September 30, 1999 and December 31, 1998
Consolidated Statements of Earnings and Retained Earnings
- Nine and three months ended September 30, 1999 and 1998
Consolidated Statements of Comprehensive Income
- Nine and three months ended September 30, 1999 and 1998
Consolidated Statements of Cash Flows
- Nine months ended September 30, 1999 and 1998
Notes to Consolidated Financial Statements
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations
Item 3. Quantitative and Qualitative Disclosures About
Market Risk
PART II - OTHER INFORMATION
Item 1. Legal Proceedings
Item 2. Changes in Securities
Item 3. Defaults Upon Senior Securities
Item 4. Submission of Matters to a Vote of Security Holders
Item 5. Other Information
Item 6. Exhibits and Reports on Form 8-K
SIGNATURES
<PAGE>
<TABLE>
PART I - FINANCIAL INFORMATION ITEM 1. FINANCIAL STATEMENTS
CENTRAL COAL & COKE CORPORATION AND SUBSIDIARIES
KANSAS CITY, MISSOURI
Consolidated Balance Sheets
September 30, 1999 and December 31, 1998
(Unaudited)
(amounts in unit dollars)
<CAPTION>
ASSETS 1999 1998
__________ __________
<S> <C> <C>
Current assets:
Cash and cash equivalents $ 1,853,564 1,606,992
Accounts receivable 32,505 22,500
Securities maturing within one year,
at amortized cost (note 2) (fair value of
$7,467,160 and $7,476,560 at September 30,
1999 and December 31, 1998) 7,466,414 7,474,053
Notes receivable current 14,803 12,465
Income taxes receivable 0 32,505
Other 17,347 4,578
__________ __________
Total current assets 9,384,633 9,153,093
Equity securities, at fair value (note 2) 1,338,527 1,220,167
Notes receivable, noncurrent 103,851 115,409
Coal deposits, real estate, equipment,
and leasehold improvements:
Coal deposits 1,602,882 1,602,882
Mineral rights 39,988 39,988
Surface land 25,837 26,131
Equipment and leasehold improvements 6,053 6,053
__________ __________
1,674,760 1,675,054
Less accumulated depletion, depreciation,
and amortization 581,830 580,636
__________ __________
Net coal deposits, real estate,
equipment, and leasehold improvements 1,092,930 1,094,418
__________ __________
$ 11,919,941 11,583,087
</TABLE>
<TABLE>
<CAPTION>
LIABILITIES AND STOCKHOLDERS' EQUITY
<S> <C> <C>
Current liabilities:
Accounts payable and accrued expenses $ 42,574 25,967
Deferred oil lease bonus 24,339 97,357
Federal and state income taxes 129,288 0
__________ __________
Total current liabilities 196,201 123,324
Deferred income taxes 278,245 188,772
Stockholders' equity:
Common stock of $1 par value; authorized
500,000 shares, issued 376,688 shares 376,688 376,688
Additional capital 1,631,200 1,631,200
Retained earnings 9,649,687 9,591,919
__________ __________
11,657,575 11,599,807
Less cost of 22,290 shares in 1999 and
20,693 in 1998 held in treasury (667,059) (617,632)
Net unrealized appreciation of investments
available-for-sale, net of deferred taxes
of $244,990 and $155,517 at September 30, 1999
and December 31, 1998 454,979 288,816
__________ __________
Total stockholders' equity 11,445,495 11,270,991
__________ __________
$ 11,919,941 11,583,087
<FN>
See accompanying notes to consolidated financial statements.
</TABLE>
<PAGE>
<TABLE>
CENTRAL COAL & COKE CORPORATION AND SUBSIDIARIES
KANSAS CITY, MISSOURI
Consolidated Statements of Earnings and Retained Earnings
Nine months ended September 30, 1999 and 1998 and
three months ended September 30, 1999 and 1998
(Unaudited)
(amounts in unit dollars)
<CAPTION>
Nine months ended Three months ended
September 30, September 30,
1999 1998 1999 1998
_________ _________ _________ _________
<S> <C> <C> <C> <C>
Operating revenue:
Coal royalties $ 50,551 51,514 23,242 23,616
Oil and gas royalties 249,475 329,241 117,457 40,018
Oil and other mineral lease
rentals and bonuses 99,152 100,920 34,876 34,877
_________ _________ _________ _________
Total operating revenue 399,178 481,675 175,575 98,511
General and administrative
expenses 485,876 218,613 181,768 51,660
Operating income (loss) (86,698) 263,062 (6,193) 46,851
Nonoperating income:
Investment income 417,904 378,133 197,564 113,106
Gain on sales of real estate 24,207 71,719 24,207 34,530
Other 54 467 9 15
_________ _________ _________ _________
Total nonoperating income 442,165 450,319 221,780 147,651
Earnings from continuing
operations before income
taxes 355,467 713,381 215,587 194,502
Income taxes 120,500 243,651 76,021 69,260
_________ _________ _________ _________
Earnings from continuing
operations 234,967 469,730 139,566 125,242
Discontinued operations, net
of income taxes (note 3) 0 (75,858) 0 (20,108)
Net earnings 234,967 393,872 139,566 105,134
Retained earnings at
beginning of period 9,591,919 9,252,798 9,510,121 9,363,238
Deduct cash dividends declared
of $.50 per share in 1999
and 1998 (177,199) (178,298) 0 0
_________ _________ _________ _________
Retained earnings at end
of period $ 9,649,687 9,468,372 9,649,687 9,468,372
Earnings per share-
basic and diluted $ 0.66 1.10 0.39 0.29
Weighted average number
of shares of common
stock outstanding 354,874 356,595 354,398 356,595
<FN>
See accompanying notes to consolidated financial statements.
</TABLE>
<PAGE>
<TABLE>
CENTRAL COAL & COKE CORPORATION AND SUBSIDIARIES
KANSAS CITY, MISSOURI
Consolidated Statements of Comprehensive Income
Nine months ended September 30, 1999 and 1998
three months ended September 30, 1999 and 1998
(amounts in unit dollars)
<CAPTION>
Nine months ended Three months ended
September 30, September 30,
1999 1998 1999 1998
_________ _________ _________ _________
<S> <C> <C> <C> <C>
Net earnings $ 234,967 393,872 139,566 105,134
_________ _________ _________ _________
Other comprehensive income:
Realized gains and unrealized
appreciation on investments 346,849 (140,312) (94,945) (238,238)
Income taxes (121,398) 49,110 35,230 83,384
_________ _________ _________ _________
Realized gains and
unrealized appreciation
on investments, net 225,451 (91,202) (59,715) (154,854)
Less:
Realized investment gains
included in net earnings 91,213 19,124 84,857 (7,456)
Income taxes (31,925) (6,693) (27,700) 2,610
_________ _________ _________ _________
59,288 12,431 57,157 (4,846)
_________ ________ _________ _________
Realized investment
gains included in
net earnings, net 166,163 (103,633) (116,872) (150,008)
Comprehensive income 401,130 290,239 22,694 (44,874)
<FN>
See accompanying notes to consolidated financial statements.
</TABLE>
<PAGE>
<TABLE>
CENTRAL COAL & COKE CORPORATION AND SUBSIDIARIES
KANSAS CITY, MISSOURI
Consolidated Statements of Cash Flows
Nine months ended September 30, 1999 and 1998
(Unaudited)
(amounts in unit dollars)
<CAPTION>
1999 1998
_________ _________
<S> <C> <C>
Cash flows from operating activities:
Net earnings $ 234,967 393,872
Adjustments to reconcile net earnings to
net cash provided by operating activities:
Depletion, depreciation,
and amortization 1,194 38,830
Amortization of premiums and
discounts of securities, net (272,553) (303,622)
Gain on sales of real estate (24,207) (91,213)
Gain on sales of equity securities (91,213) (19,124)
Changes in assets and liabilities:
Accounts receivable (10,005) 22,500
Other assets 19,736 35,661
Deferred oil lease bonus (73,018) 121,696
Accounts payable and accrued expenses 16,607 31,497
Federal and state income taxes payable 129,288 (1,425)
__________ _________
Total adjustments (304,171) (165,200)
Net cash provided by (used in)
operating activities (69,204) 228,672
Cash flows from investing activities:
Capital expenditures 0 (16,521)
Proceeds from note receivable 9,220 (135,000)
Proceeds from matured/called investment
debt securities 23,000,000 22,500,000
Purchases of investment debt securities (22,719,808) (22,170,062)
Proceeds from sales of land 24,501 73,066
Purchases of equity securities (40,743) (389,617)
Proceeds from sales of equity
securities 269,232 111,624
Proceeds from sale of
subsidiary 0 69,468
_________ _________
Net cash provided by
investing activities 542,402 42,958
Cash flows from financing activities:
Purchase of treasury stock (49,427) 0
Payment of dividends (177,199) (178,298)
_________ _________
Net cash used in financing activities (226,626) (178,298)
Net increase in cash and
cash equivalents 246,572 93,332
Cash and cash equivalents,
beginning of year 1,606,992 1,493,966
Cash and cash equivalents,
end of period $ 1,853,564 1,587,298
<FN>
See accompanying notes to consolidated financial statements.
</TABLE>
<PAGE>
CENTRAL COAL & COKE CORPORATION AND SUBSIDIARIES
KANSAS CITY, MISSOURI
Notes to Consolidated Financial Statements
September 30, 1999
Note (1) Basis of Presentation
In the opinion of the Central Coal & Coke Corporation (the
Company), the accompanying unaudited consolidated financial statements
contain all adjustments (consisting of only normal recurring accruals)
necessary to present fairly the financial position as of September 30, 1999,
and the results of operations and cash flows for the periods ended
September 30, 1999 and 1998.
Oil Lease Bonuses
Oil lease bonuses which relate to future periods are deferred and
recognized as income over the related future periods (generally one
year).
Note (2) Investment Securities
The amortized cost, gross unrealized holding gains, gross
unrealized holding losses, and fair value for held-to-maturity and
available-for-sale securities by major security type at September 30, 1999
and December 31, 1998 are as follows:
<TABLE>
<CAPTION>
Gross Gross
unrealized unrealized
Amortized holding holding Fair
September 30, 1999 cost gains losses value
__________________ __________ __________ __________ __________
<S> <C> <C> <C> <C>
Held-to-maturity:
U. S. government
securities $ 7,466,414 746 0 7,467,160
Available-for-sale:
Equity securities $ 638,559 709,180 (9,212) 1,338,527
</TABLE>
<TABLE>
<CAPTION>
December 31, 1998
_________________
<S> <C> <C> <C> <C>
Held-to-maturity:
U. S. government
securities $ 7,474,053 2,507 0 7,476,560
Available-for-sale:
Equity securities $ 775,834 525,664 (81,331) 1,220,167
</TABLE>
Note (3) Segment/Discontinued Operations Information
The Company has operated in two segments-energy and food. On
September 1, 1998, the Company sold its remaining food operations and, as
a result, the accompanying 1998 consolidated financial statements have
been reclassified to present the food operations as discontinued operations.
The Company now operates in only one segment, the energy segment, which
consists of the leasing of real properties and mineral interests in the
midwestern and southern United States to operating leasees. The Company has
no foreign revenues.
<PAGE>
CENTRAL COAL & COKE CORPORATION
KANSAS CITY, MISSOURI
Notes to Consolidated Financial Statements
Note (3) (a) Segment/Discontinued Operations Information, Continued
The loss from the Company's discontinued food business is comprised
of the following for the nine months and three months ended
September 30, 1998:
<TABLE>
<CAPTION>
Nine months Three months
ended ended
September 30, 1998 September 30, 1998
------------------ ------------------
<S> <C> <C>
Revenues $ 428,637 33,722
Cost of food sales 172,630 15,796
__________________ __________________
Gross margin 256,007 17,926
Food operations expense:
Salaries and wages 145,968 23,509
Occupancy expense 59,446 13,560
Depreciation and
amortization expense 32,021 4,007
Utility expense 22,630 5,339
Other expenses 130,372 21,472
__________________ __________________
390,437 67,887
Loss from food operations
before income taxes (134,430) (49,961)
Income tax benefit 45,706 16,987
Loss from food
Operations $ (88,724) (32,974)
</TABLE>
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
There was no significant change in the financial condition of the
Registrant during the first nine months of 1999 from the end of the
last fiscal year, and it continues very strong. The liquidity of the
Registrant continues to be high.
Total operating revenue was down approximately 17% in the first
nine months of 1999 from the first nine months of 1998, however,
it was up substantially in the third quarter of 1999 over the third
quarter of 1998. The reason for these results was less revenue from
oil and gas royalties during the first two quarters of 1999. Oil
prices increased materially during the course of the year, particularly
in the third quarter of 1999, and that, coupled with somewhat increased
production, resulted in more revenue from that source in the third
quarter of 1999 and, in turn, greater total operating revenues in
the third quarter.
With respect to nonoperating income, revenue from investment
income increased materially both in the first nine months of 1999
over the corresponding period in 1998, and also in the third quarter
of 1999 over the third quarter of 1998. This was due to increased
capital gains realized on sales of equities during the current
periods over the corresponding periods under comparison, and
reduced by slightly lower rates of return on temporary fixed
income investments during the current periods. Additionally,
the portfolio of income earning investments was somewhat larger
in the current quarter than in the preceding periods under
comparison. Additionally, in the category of nonoperating
income, gain on sales of real estate decreased both in the first
nine months of 1999 from the first nine months of 1998, and also
in the third quarter of 1999 from the third quarter of 1998
because there were less sales of surface land during the current
periods than in the prior periods under comparison.
General and administrative expenses were up significantly in the
first nine months of 1999 over the first nine months of 1998, and
also in the third quarter of 1999 over the third quarter of 1998.
The increase was attributable primarily to significant fees paid to
outside service providers during the first nine months of
1999, particularly to financial advisors and appraisers of the
Registrant's real estate and mineral assets, and legal fees
incurred in connection with the litigation described in Item 1
of Part II of this report.
Income taxes were down somewhat in the first nine months
of 1999 from the first nine months of 1998 as a result of decreased
earnings before income taxes. However, earnings from continuing
operations before income taxes increased approximately 11% in the
third quarter of 1999 over the third quarter of 1998 and, therefore,
income taxes for the quarter alone show a corresponding increase.
The accompanying consolidated statements of earnings shows a
loss from discontinued operations, net of income taxes, in the
first nine months of 1998 and the third quarter of 1998, and
no gain or loss from that category in the corresponding periods
of 1999. Losses from that source resulted during prior periods
from the operation of Beekman's Deli Systems, Limited Liability
Company, a limited liability company in which the Registrant is a
majority member (hereinafter "Beekman's"). Beekman's operated
fast food and delicatessen facilities in four different locations
throughout the country, however, sales and profitability of this
operation were disappointing and all of the operations were
terminated by September 1, 1998, and Beekman's now has no
active operations. As described in more detail in note 3 to the
accompanying consolidated financial statements, as a result of
the operations of Beekman's during the first nine months of 1998
and the third quarter of 1998, a loss was incurred, however,
since the operations were terminated later in the year 1998, there
were no activities in 1999, and thus no income or loss during that
later year.
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS, Continued
There was a substantial increase in cash and cash equivalents in the
first nine months of 1998, and also in the first nine months
of 1999, but the increase was substantially greater in the 1999
period. The most significant components of the changes between
the periods were lower net earnings in the first nine months of 1999
than in the first nine months of 1998, and decreased deferred oil
lease bonuses in the current period, partially offset by differences
in federal and state income tax liabilities, differences in the amount
of proceeds from matured/called investment debt securities which were
reinvested, and the timing of purchases and sales of equity securities
during the respective periods. Also contributing to the change were
accounting for the proceeds from the sale of the subsidiary's
operations in the third quarter of 1998, a decrease in the proceeds
from the sale of land in the current period, and the purchases of
treasury stock during the current period.
A cash dividend of $.50 per share was paid June 30, 1999 to
Stockholders of record as of June 1, 1999, and a dividend of
the same amount was paid on May 1, 1998.
On January 1, 1998 the Registrant adopted Statement of
Financial Accounting Standards (SFAS) No. 130,
Reporting Comprehensive Income, which established
standards for reporting and presentation of comprehensive
income and its components in a full set of financial
statements. The application of this statement is shown in
the consolidated statements of comprehensive income in
the accompanying consolidated financial statements.
SFAS No. 133, Accounting for Derivative Instruments and
Hedging Activities, was issued by the Financial Accounting
Standards Board in June, 1998. SFAS No. 133 standardizes the
accounting for derivative instruments. Under the statement, entities
are required to carry all derivative instruments in the statement
of financial position at fair value. The Registrant must adopt
SFAS No. 133 by January 1, 2000, however, early adoption is permitted.
On adoption, the provisions of SFAS No. 133 must be applied prospectively.
The Registrant anticipates that the adoption of SFAS No. 133 will
not have a material impact on its financial position or results
of operations.
As the year 2000 approaches, issues have emerged regarding
how existing computer application software programs and
operating systems can accommodate this date because
certain computer programs being utilized use two digits
rather than four digits to define the applicable year. As
a result, it is possible that computer programs that have
date-sensitive software may recognize a date using "00"
as the year 1900 rather than the year 2000, which, in turn,
could result in system failure or miscalculation causing
disruption of the business of the Registrant or its suppliers
and customers. Management of the Registrant is confident
that its state of readiness with respect to this matter is high.
The Registrant utilizes only one stand-alone personal
computer in the administration of its business operations
and internal accounting, and it is not anticipated that any
significant modifications or upgrades will be necessary to
its existing computer hardware or software. However, the
cost to address the Registrant's own year 2000 issues would
not be material, even if it would become necessary to replace
the entire hardware and software currently utilized, as this
could be done for less than $5,000. However, the Registrant
has relationships with third parties that utilize computer systems
that may not be year 2000 compliant. Thus, there is a possible
risk that to the extent such third parties' systems are not fully
year 2000 compliant, there could be potential systems
interruption causing disruptions in operations of such third
parties which, in turn, could effect normal business activities
of the Registrant. Given the nature of the Registrant's business
activities, management does not anticipate that there will be any
such potential systems interruptions of operation or business prospects.
The foregoing may constitute "forward looking statements" about
matters that are inherently difficult to predict. These statements
include statements regarding the intent, belief, or current expectations
of the Registrant and its management. Some of the important factors
that effect these statements have been described above, but such
forward looking statements involve risks and uncertainties that may
possibly affect future developments, such as the ability to deal with
year 2000 problems experienced by third parties with whom the
Registrant does business and over which it has no control. If
modifications and conversions required by third parties to make
their computer systems year 2000 compliant are not made or are
not completed on a timely basis, the resulting problems could have
a material impact on the operations of the Registrant even though
not presently anticipated. The Registrant has not, to date, implemented
a year 2000 contingency plan. As reported above, it is not anticipated
that compliance will create any systems interruptions or material costs
to the Registrant. If conditions develop as a result of failure of third
parties to be year 2000 compliant on a timely basis, the Registrant may
hereafter need to develop a contingency plan, such as changing third
parties with whom it does business, but that is not currently contemplated.
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS, Continued
The Registrant has no specific commitment for material capital
expenditures at the present time. Management continues to actively
pursue other business opportunities which will result in a more
productive deployment of its assets and ultimately increase earnings.
Management continues to aggressively pursue development of increased
income from its oil and gas and coal properties, and continues to
attempt to lease more of its mineral properties in order to generate
additional rental, bonus, and royalty income.
<PAGE>
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES
ABOUT MARKET RISK
The primary market risk exposures of the Registrant relate to
changes in interest rates, changes in equity security prices,
and changes in certain commodity prices.
The Registrant's exposure to market risk for changes in
interest rates relates solely to its fixed income investment portfolio
which consists of U. S. government agency securities. All such
securities are held-to-maturity and have original maturities of less
than one year. The Registrant does not use derivative financial
instruments to hedge interest rates on its fixed income investment
securities.
The Registrant's exposure to market risk for changes in equity
security prices relates solely to its marketable equity investment
portfolio which consists primarily of common stocks of domestic,
publicly held enterprises. The Registrant periodically enters into
equity option contracts on a limited basis primarily relating to
marketable equity securities held in its investment portfolio.
At September 30, 1999, the Registrant held 103 option contracts
with a short position relating primarily to marketable equity
security held by it. The fair value of option contracts at
September 30, 1999 was approximately $24,575.
The Registrant's exposure to market risk for changes in commodity
prices relates to changes in the prices of coal, oil, and natural gas
and the effect thereof on its royalties and rentals relating to coal
deposits and mineral rights, as is discussed in more detail in
Management's Discussion and Analysis of Financial Condition and
Results of Operations set forth in Part 1, Item 2, of this report. The
Registrant does not use derivative commodity instruments to hedge
its commodity risk exposures.
<PAGE>
PART II - OTHER INFORMATION
Item 1. Legal Proceedings - Attached
Item 2. Changes in Securities - None
Item 3. Defaults Upon Senior Securities - None
Item 4. Submission of Matters to a Vote of Security Holders - Attached
Item 5. Other Information - None
Item 6. Exhibits and Reports on Form 8-K - None
<PAGE>
PART II, ITEM 1. - LEGAL PROCEEDINGS
Following the election of Directors at the annual meeting of
Stockholders held April 21, 1999, as discussed in more detail
in Part II, Item 4, of this Report 10-Q for the quarter ended
June 30, 1999, a few Stockholders, including former Director
Beekman Winthrop, filed on May 14, 1999 a lawsuit in Delaware
challenging the results of the election of Directors. The action
styled Winthrop, et al. v. Central Coal and Coke
Corporation, et al., C.A. No. 17162, was pending in the Court
of Chancery of the State of Delaware in and for New Castle County.
The Registrant and all newly elected Directors were named as defendants,
and the plaintiffs asked the Court to invalidate the election of the
new Board. On July 29, 1999, the record owners of 179,009 shares of
the common stock of the Registrant (a majority of the outstanding shares)
executed written consents which were delivered to the Registrant on
July 29, 1999. Pursuant to the consents, Phelps M. Wood, Phelps C. Wood,
Bruce L. Franke, Ray Infantino, Patrick J. Moran, and James R. Ukropina
were elected Directors of the Registrant, confirming the results of the
election held at the annual meeting on April 21, 1999. The action
taken by the written consents was done pursuant to Section 228 of
the Delaware General Corporation Law.
Subsequently, on August 5, 1999, the Court issued its Order of
Dismissal, dismissing the lawsuit with prejudice, but retaining
jurisdiction for purposes of entertaining any application for
attorneys' fees and/or costs. On or about November 2, 1999 the
plaintiffs filed a Motion for Costs and Attorneys Fees in the action
requesting the Court grant their motion in the amount of $106,956.65.
Management of the Registrant intends to contest this motion vigorously.
Also, the Registrant has been advised by its Delaware legal counsel that
in early November, 1999, a suit was filed in the United States District
Court for the District of Delaware by the same plaintiffs against the
Directors of the Registrant individually, and the Registrant as
a "Nominal Defendant." This new suit also seeks the removal of the
Directors of the Registrant and seeks other relief against the
individual Directors, but does not otherwise appear to seek relief
against the Registrant itself.
<PAGE>
PART II, ITEM 4. - SUBMISSION OF MATTERS TO A
VOTE OF SECURITY HOLDERS
There were no meetings of the Stockholders held during the third
quarter of 1999, however, as described in Part II, Item 1 above, a
lawsuit had been filed in the Court of Chancery of the State of
Delaware in and for Newcastle County contesting the election of
Directors at the annual meeting held April 21, 1999. As described
in Part II, Item 1, the record owners of 179,009 shares of common
stock (a majority of the outstanding shares) executed written consents
which were delivered to the Registrant on July 29, 1999 electing the
same slate of Directors elected at the annual meeting held on
April 21, 1999, with the addition of Mr. Franke, thus confirming the
results of that election.
<PAGE>
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.
CENTRAL COAL & COKE CORPORATION
(Registrant)
Date: November 15, 1999
____________________________
By: /s/ Gary J. Pennington
____________________________
Gary J. Pennington,
Assistant Treasurer-
General Manager, Principal
Financial and Accounting Officer
Date: November 15, 1999
____________________________
By: /s/ Phelps M. Wood
____________________________
Phelps M. Wood
President
<TABLE> <S> <C>
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<S> <C>
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<FISCAL-YEAR-END> DEC-31-1999
<PERIOD-START> JAN-01-1999
<PERIOD-END> SEP-30-1999
<CASH> 1853564
<SECURITIES> 7466414
<RECEIVABLES> 0
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<PP&E> 1674760
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<COMMON> 376688
0
0
<OTHER-SE> 11068807
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<INCOME-CONTINUING> 234967
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 234967
<EPS-BASIC> 0.66
<EPS-DILUTED> 0.66
</TABLE>
