<PAGE>
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 ENDED SEPTEMBER 30, 1996 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, Louisiana 70601
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (318) 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 X NO
----- -----
Securities registered pursuant to Section 12(b) for the Act:
Title of each class Name or 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 September 30, 1996, 1,997,272 shares of the registrant's Common Stock,
without par value, were issued and outstanding.
1
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CALCASIEU REAL ESTATE & OIL CO., INC.
FORM 10-Q FOR THE QUARTER ENDED SEPTEMBER 30, 1996
TABLE OF CONTENTS
Part I FINANCIAL INFORMATION Page No.
- ------ --------------------- --------
Management's Discussion and Analysis of Financial
Condition and Results of Operations 3
Balance Sheets
September 30, 1996 and September 30, 1995 4-5
Statements of Income and Retained Earnings
Nine Months Ended September 30, 1996 and 1995 6
Statements of Cash Flows
Nine Months Ended September 30, 1996 and 1995 7-8
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
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The information furnished is not in connection with any sale or offer
for sale of, or solicitation of an offer to buy, any securities.
2
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CALCASIEU REAL ESTATE & OIL CO., INC.
PART I
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of Operations
Income from oil and gas was up 44.1% for the nine months ending September 30,
1996, over the same period in 1995. This was due to higher oil and gas prices,
income from land rent and right of ways and increases in mineral leases and
seismic fees. Agriculture income was down 15% while agriculture expenses
increased 54.2%. Timber income was down 78.3% due to clear-cutting of a net 138
acre tract in 1995. All categories of costs and expenses were down in 1996
except for farm costs. Operating income before taxes decreased 50.3% in 1996
from 1995 solely due to the decrease in timber income.
In the quarter ended September 30, 1996, the Company had a $751,410 gain on the
sale of its CM Bank stock. The bank was purchased by another bank in an all
cash transaction. The proceeds after tax have been invested in U.S. Treasury
notes and bonds pending investment opportunities that are related to the
Company's operations.
Management believes that the Company's revenues will be sufficient to meet its
existing needs and the needs for its anticipated future operations. Management
does not presently anticipate that the Company will incur material additional
liabilities in its future operations. Long-term trends will be more dependent on
the Company's development of income from its properties, such as timber sales,
than from oil and gas operations.
3
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CALCASIEU REAL ESTATE & OIL CO., INC.
BALANCE SHEET
ASSETS
CURRENT ASSETS SEPT. 30, 1996 SEPT. 30, 1995
- -------------- -------------- --------------
Cash and Cash Equivalents $ 429,765 $ 447,961
Investment Securities 293,190
Trade Receivables 51,981 65,477
Inventory - Crops 566
Accrued Interest Income 3,310
Prepaid Expenses 1,525
---------- ----------
TOTAL CURRENT ASSETS $ 778,246 $ 515,529
---------- ----------
SECURITIES AVAILABLE FOR SALE
At market value $ 516,421 $ 296,142
---------- ----------
PROPERTY & EQUIPMENT
Less accumulated depreciation,
depletion and amortization $ 9,250 $ 20,460
TIMBER
Less accumulated depletion 345,992 425,731
LAND 1,662,142 1,661,209
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TOTAL PROPERTY $2,017,384 $2,107,400
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TOTAL $3,312,051 $2,919,071
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4
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CALCASIEU REAL ESTATE & OIL CO., INC.
BALANCE SHEET
LIABILITIES AND SHAREHOLDERS EQUITY
CURRENT LIABILITIES SEPT. 30, 1996 SEPT. 30, 1995
- ------------------- -------------- --------------
Trade Payables $ 2,087 $ 2,354
Income Taxes Payable 237,035 159,463
Accrued Interest Payable 3,306
Note Payable, Current 93,018
Current Deferred Tax Liability Net 10,348 55,883
Dividend Payable 39,945 39,946
---------- ----------
TOTAL CURRENT LIABILITIES $ 289,415 $ 354,060
---------- ----------
SHAREHOLDER'S EQUITY
Common Stock, no par value
3,000,000 shares authorized;
2,100,000 shares issued $ 72,256 $ 72,256
Retained earnings 3,084,035 2,563,543
Unrealized appreciation on
Investments available for sale
net of taxes of $44,521 in 1995
and $2,679 in 1996 3,988 66,781
---------- ----------
$3,160,279 $2,702,580
Less cost treasury stock (1996
102,728 shares; 1995 102,699
shares) 137,643 137,569
---------- ----------
TOTAL $3,022,636 $2,565,011
---------- ----------
TOTAL $3,312,051 $2,919,071
---------- ----------
5
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CALCASIEU REAL ESTATE & OIL CO., INC.
STATEMENTS OF INCOME AND RETAINED EARNINGS
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
Sept 30, 1996 Sept 30, 1995 Sept 30, 1996 Sept 30, 1995
<S> <C> <C> <C> <C>
REVENUES
Income-primarily from oil & gas
properties $ 101,064 $ 70,448 $ 292,827 $ 203,166
Agriculture income 15,189 20,564 30,414 35,767
Timber Income 86,171 1,680 96,594 444,162
---------- ---------- ---------- ----------
TOTAL $ 202,424 $ 92,692 $ 419,835 $ 683,095
---------- ---------- ---------- ----------
COSTS AND EXPENSES
Oil and gas production costs $ 8,261 $ 8,498 $ 22,563 $ 24,761
Farm Costs 16,315 7,956 28,833 18,693
Forestry Expenses 9,765 243 10,871 12,053
General and administrative 8,364 23,003 89,299 96,120
Depreciation and depletion 17,010 1,026 21,886 36,012
---------- ---------- ---------- ----------
TOTAL $ 59,715 $ 40,726 $ 173,452 $ 187,639
---------- ---------- ---------- ----------
OTHER INCOME (EXPENSE)
Interest Income $ 6,330 $ 4,523 $ 13,886 $ 5,837
Dividends on Common Stock 11,776 7,326 26,293 18,117
Gain on sale of assets 751,410 752,087
Interest Expense (1,878) (2,225) (8,407)
---------- ---------- ---------- ----------
TOTAL $ 769,516 $ 9,971 $ 790,041 $ 15,547
----------- ---------- ---------- ----------
INCOME OR LOSS BEFORE INCOME TAXES AND
EXTRAORDINARY CREDITS $ 912,225 $ 61,937 $1,036,424 $ 511,003
PROVISION FOR INCOME TAXES
Current 338,689 18,165 371,920 177,993
---------- ---------- ---------- ----------
NET INCOME 573,536 43,772 664,504 333,010
RETAINED EARNINGS, BEGINNING OF PERIOD 2,550,443 2,559,717 2,539,367 2,310,426
DIVIDENDS (39,944) (39,946) (119,836) (79,893)
---------- ---------- ---------- ----------
RETAINED EARNINGS END OF PERIOD $3,084,035 $2,563,543 $3,084,035 $2,563,543
---------- ---------- ---------- ----------
NET INCOME PER COMMON SHARE $.29 $.02 $.33 $.17
</TABLE>
6
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CALCASIEU REAL ESTATE & OIL CO., INC.
STATEMENTS OF CASH FLOWS
<TABLE>
<CAPTION>
THREE MONTHS ENDED NINE MONTHS ENDED
Sept 30, 1996 Sept 30, 1995 Sept 30, 1996 Sept 30, 1995
<S> <C> <C> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES
Net Income $ 573,536 $ 43,772 $ 664,504 $ 333,010
Non cash (income) expenses included in
net income:
Depreciation, depletion and amortization 17,010 1,026 21,886 36,012
CHANGE IN ASSETS AND LIABILITIES
(Increase)decrease in accounts
receivable 7,675 (7,710) 8,853 2,827
(Increase)decrease in inventory 2,878 2,000 10,542 3,000
(Increase)decrease in prepaid expenses 1,525 1,157 (1,079)
(Increase) decrease in prepaid income
taxes 58,399 43,340
Increase (decrease) in accrued interest (3,310) (3,310)
Increase (decrease) in trade payables &
accrued interest (264) 1,908 (8,571) (11,269)
Increase (decrease) in income tax
payable 237,035 18,165 78,949 159,463
--------- -------- --------- ---------
NET CASH PROVIDED BY (USED IN)
OPERATING ACTIVITIES $ 892,959 $ 60,686 $ 774,010 $ 565,304
--------- -------- ---------- ---------
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of property and equipment $ $ 402 $ $ (4,672)
Increase in investment securities (293,190) (95,567)
Sale of Securities, cost 176,680 176,680
Purchase of U. S. Bonds & Notes (501,594) (501,594)
--------- -------- --------- ---------
Net cash provided (used in) investing
activities $(618,104) $ 402 $(420,481) $ (4,672)
CASH FLOWS FROM FINANCING ACTIVITIES
Principal payments on long-term
borrowing $ $ $ (93,108) $ (95,000)
Dividends paid (39,944) (39,947) (119,836) (39,947)
Payments to acquire treasury stock (10) (14,268)
--------- -------- --------- ---------
Net cash provided by (used in)
financing activities $ (39,944) $(39,957) $(212,944) $(149,215)
--------- -------- --------- ---------
Net increase (decrease) in cash & cash
equivalents $ 234,911 $ 21,131 $ 140,585 $ 411,417
Beginning Cash 194,854 426,830 289,180 36,544
--------- -------- --------- ---------
Ending Cash $ 429,765 $447,961 $ 429,765 $ 447,961
--------- -------- --------- ---------
</TABLE>
7
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CALCASIEU REAL ESTATE & OIL CO., INC.
PART II OTHER INFORMATION
Item 6. EXHIBITS AND REPORTS ON FORM 8-K
(A) Exhibits
None
(B) Reports on Form 8-K
Item 2. Acquisition or Disposition of Assets
On August 19, 1996, Company received $928,069.98 in cash for its 4,796
shares in CM Bank Company (Calcasieu Marine National Bank). Hibernia
National Bank acquired all of the shares of CM Bank in an all cash
transaction. The proceeds were invested in U. S. Treasury securities.
Item 5. Other Events
Director Adolph Marx died during the quarter. The Board of Directors
increased the number of directors to ten and elected Charles D.
Viccellio, attorney, and Laura A. Leach, oil company executive to the
two vacancies. Mrs. Leach is a sister of director Henry Alexander.
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 under-
signed thereunto duly authorized.
CALCASIEU REAL ESTATE & OIL CO., INC.
(Registrant)
/s/ ARTHUR HOLLINS, III
____________________________________
Arthur Hollins, III
President
/s/ CARL G. PATTON
____________________________________
Carl G. Patton
Vice-President and Secretary
Dated: October 31, 1996
8
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<LEGEND>
THIS SCHEDLE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM SEPTEMBER 30,
1996 UNAUDITED FINANCIAL STATEMENTS AND IS QUALIFIED IN ITS ENTIRETY BY
REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-START> JAN-01-1996
<PERIOD-END> SEP-30-1996
<CASH> 429,765
<SECURITIES> 293,190
<RECEIVABLES> 51,981
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 778,246
<PP&E> 2,683,200
<DEPRECIATION> 665,816
<TOTAL-ASSETS> 3,312,051
<CURRENT-LIABILITIES> 289,415
<BONDS> 0
0
0
<COMMON> 72,256
<OTHER-SE> 2,950,380
<TOTAL-LIABILITY-AND-EQUITY> 0
<SALES> 0
<TOTAL-REVENUES> 419,835
<CGS> 0
<TOTAL-COSTS> 62,267
<OTHER-EXPENSES> 111,185
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 2,225
<INCOME-PRETAX> 284,337
<INCOME-TAX> 108,690
<INCOME-CONTINUING> 195,880
<DISCONTINUED> 0
<EXTRAORDINARY> 468,624
<CHANGES> 0
<NET-INCOME> 664,504
<EPS-PRIMARY> .33
<EPS-DILUTED> .33
</TABLE>
