<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, 1997 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, LA 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 OF 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, 1997, 1,997,252 shares of the registrant's Common Stock,
without par value, were issued and outstanding.
<PAGE>
CALCASIEU REAL ESTATE & OIL CO., INC.
FORM 10-Q FOR THE QUARTER ENDED SEPTEMBER 30, 1997
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, 1997 and September 30, 1996 4-5
Statements of Income and Retained Earnings
Nine Months Ended September 30, 1997 and 1996 6
Statements of Cash Flows
Nine Months Ended September 30, 1997 and 1996 7
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
____________________________________________________________
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
<PAGE>
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 properties was up 76.5% for the nine months ending
September 30, 1996, over the same period in 1996. This was due in part to
greater production and higher prices but primarily due to greater income from
mineral leases and seismic permits. Net income from agriculture was up 64.7%
for the nine months compared to the prior year due primarily to higher prices
but also due to changes in lease contracts with the farmers whereby they assumed
more of the expenses. Net timber income was virtually none through September,
1997, compared to $85,723 in 1996 due to timing differences. There are timber
sales scheduled for the fourth quarter of 1997. Oil and gas production costs
were up 133.6% due to reworking costs and greater severance taxes on greater
production. General and administrative expenses increased 12.1% primarily due
to higher office salaries.
During the quarter ended September 30, 1997, two gas wells were completed on
properties in which the Company has an ownership interest. The Company should
begin receiving royalty income from these properties in either the fourth
quarter of 1997 or the first quarter of 1998. At this time, the Company is
unable to project the amount of income.
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.
3
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CALCASIEU REAL ESTATE & OIL CO., INC.
BALANCE SHEET
ASSETS
<TABLE>
<CAPTION>
CURRENT ASSETS SEPTEMBER 30, 1997 SEPTEMBER 30, 1996
-------------- ------------------ ------------------
<S> <C> <C>
Cash and cash equivalents $ 443,450 $ 429,765
Trade Receivables 47,385 51,981
Accrued Interest Income 7,380 3,310
---------- ----------
TOTAL CURRENT ASSETS $ 498,215 $ 778,246
---------- ----------
SECURITIES AVAILABLE FOR SALE $ 771,679 $ 809,611
---------- ----------
PROPERTY AND EQUIPMENT
Less accumulated depreciation, depletion and amortization. $ 14,009 $ 9,250
TIMBER 376,106 345,992
Land 1,681,482 1,662,142
---------- ----------
TOTAL PROPERTY $2,071,597 $2,017,384
---------- ----------
TOTAL $3,341,491 $3,312,051
---------- ----------
</TABLE>
4
<PAGE>
CALCASIEU REAL ESTATE & OIL CO., INC.
BALANCE SHEET
LIABILITIES & SHAREHOLDERS' EQUITY
<TABLE>
<CAPTION>
CURRENT LIABILITIES SEPTEMBER 30, 1997 SEPTEMBER 30, 1996
------------------- ------------------ ------------------
<S> <C> <C>
Trade payables $ 3,766 $ 2,087
Income Taxes Payable 11,978 237,035
Current Deferred Tax Liability Net 13,406 10,348
Dividends Payable 59,918 39,945
---------- ----------
TOTAL CURRENT LIABILITIES $ 89,068 $ 289,415
---------- ----------
SHAREHOLDERS' EQUITY
Common Stock, no par value, 3,000,000 shares authorized $ 72,256 $ 72,256
2,100,000 shares issued
Retained earnings 3,306,505 3,084,035
Unrealized appreciation on Investments available for sale
net of taxes of $5,027 in 1997 and $2,679 in 1996 11,365 3,988
---------- ----------
$3,390,126 $3,160,279
Less cost treasury stock (1996 102,728 shares;
1997 102,748 shares) 137,703 137,643
---------- ----------
TOTAL EQUITY $3,252,423 $3,022,636
---------- ----------
TOTAL $3,341,491 $3,312,051
---------- ----------
</TABLE>
5
<PAGE>
CALCASIEU REAL ESTATE & OIL CO., INC.
STATEMENTS OF INCOME AND RETAINED EARNINGS
<TABLE>
<CAPTION>
THREE MONTHS ENDED NINE MONTHS ENDED
SEPT. 30, 1997 SEPT. 30, 1996 SEPT. 30, 1997 SEPT. 30, 1996
<S> <C> <C> <C> <C>
REVENUES
Income-primarily from oil and gas properties $ 159,438 $ 101,064 $ 516,736 $ 292,827
Agricultural Income 33,131 15,189 56,794 30,414
Timber Income 8,275 86,171 9,443 96,594
---------- ---------- ---------- ----------
TOTAL $ 200,844 $ 202,424 $ 582,973 $ 419,835
---------- ---------- ---------- ----------
COSTS AND EXPENSES
Oil and gas production costs $ 4,999 $ 8,261 $ 52,700 $ 22,563
Farm Costs 3,513 16,315 8,022 28,833
Forestry Expenses 1,998 9,765 8,783 10,871
General and Administrative 22,983 8,364 100,093 89,299
Depreciation and depletion 1,546 17,010 3,437 21,886
---------- ---------- ---------- ----------
TOTAL $ 35,039 $ 59,715 $ 173,035 $ 173,452
---------- ---------- ---------- ----------
OTHER INCOME (EXPENSE):
Interest Income $ 13,947 $ 6,330 $ 46,744 $ 13,886
Dividends on Common Stock 136 11,776 394 26,293
Gain on sale of assets 11,401 751,410 11,401 752,087
Interest Expense (2,225)
----------
TOTAL $ 25,484 $ 769,516 $ 58,539 $ 790,041
---------- ---------- ---------- ----------
INCOME OR LOSS BEFORE
INCOME TAXES AND
EXTRAORDINARY CREDITS $ 191,289 $ 912,225 $ 468,477 $1,036,424
PROVISION FOR INCOME TAXES:
Current 65,916 338,689 153,978 371,920
---------- ---------- ---------- ----------
NET INCOME $ 125,373 $ 573,536 $ 314,499 $ 664,504
RETAINED EARNINGS,
BEGINNING OF PERIOD 3,241,049 2,550,443 3,164,703 2,539,367
DIVIDENDS (59,917) (39,944) (172,697) (119,836)
---------- ---------- ---------- ----------
RETAINED EARNINGS END OF
PERIOD $3,306,505 $3,084,035 $3,306,505 $3,084,035
---------- ---------- ---------- ----------
NET INCOME PER COMMON SHARE $.07 $.29 $.16 $.33
</TABLE>
6
<PAGE>
CALCASIEU REAL ESTATE & OIL CO., INC.
STATEMENTS OF CASH FLOWS
<TABLE>
<CAPTION>
THREE MONTHS ENDED NINE MONTHS ENDED
SEPT. 30, 1997 SEPT. 30, 1996 SEPT. 30, 1997 SEPT. 30, 1996
<S> <C> <C> <C> <C>
CASH FLOWS FROM
OPERATING ACTIVITIES
Net Income $125,373 $ 573,536 $ 314,499 $ 664,504
Non cash (income) expenses
included in net income:
Depreciation, depletion and
amortization 1,546 17,010 3,437 21,886
CHANGE IN ASSETS
AND LIABILITIES:
(Increase) decrease in 128,773 7,675 26,170 8,853
accounts receivable
(Increase) decrease in 2,878 2,850 10,542
inventory
(Increase) decrease in 10,158 1,157
prepaid expenses
(Increase) decrease in 33,938 58,399
prepaid income taxes
(Increase) decrease in (7,380) (3,310) (7,380) (3,310)
accrued interest received
Increase (decrease) in trade (606) (264) (4,080) (8,571)
payables and accrued interest
Increase (decrease) in
income tax payable 11,978 237,035 (249,091) 78,949
-------- --------- --------- ---------
NET CASH PROVIDED BY (USED IN) $293,622 $ 892,959 $ 96,563 $ 774,010
OPERATING ACTIVITIES -------- --------- --------- ---------
CASH FLOWS FROM
INVESTING ACTIVITIES:
Net Accretion on Securities $ 2,130 $ $ (687) $
Purchase of Property and
equipment and reforestation (20,924) (46,169)
Increase in investment securities (56,123) (293,190) (250,623) (95,567)
Maturity of securities 495,500
Sale of Securities, cost 8,160 176,680 8,160 176,680
Purchase of U. S. Bonds & Notes (501,594) (501,594)
-------- --------- --------- ---------
Net cash provided (used in)
investing activities $(66,757) $(618,104) $ 206,181 $(420,481)
-------- --------- --------- ---------
CASH FLOWS FROM
FINANCING ACTIVITIES:
Principal payments on long- $ $ $ $ (93,108)
term borrowing
Dividends paid (59,917) (39,944) (172,697) (119,836)
Payments to acquire
treasury stock (60)
-------- --------- --------- ---------
Net cash provided by (used in) $(59,917) $ (39,944) $(172,757) $(212,944)
financing activities _________ _________ _________ _________
Net increase (decrease) in $166,948 $ 234,911 $ 129,987 $ 140,585
cash & cash equivalents
Beginning Cash 276,502 194,854 313,463 289,180
-------- --------- --------- ---------
Ending Cash $443,450 $ 429,765 $ 443,450 $ 429,765
-------- --------- --------- ---------
</TABLE>
7
<PAGE>
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 October 29, 1997,
Company purchased 3,496 acres of farm land from Amoco Production
Company for $1,663,000.
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.
CALCASIEU REAL ESTATE & OIL CO., INC.
(Registrant)
/s/ Arthur Hollins, III
---------------------------------------
Arthur Hollins, III
President
/s/ Charles D. Viccellio
----------------------------------------
Charles D. Viccellio
Vice-President and Secretary
Dated October 31, 1997
8
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM SEPTEMBER
30, 1997, 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-31-1997
<PERIOD-START> JAN-01-1997
<PERIOD-END> SEP-30-1997
<CASH> 443,450
<SECURITIES> 771,679
<RECEIVABLES> 47,385
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 498,215
<PP&E> 2,722,394
<DEPRECIATION> 650,797
<TOTAL-ASSETS> 3,341,491
<CURRENT-LIABILITIES> 89,068
<BONDS> 0
0
0
<COMMON> 72,256
<OTHER-SE> 3,180,167
<TOTAL-LIABILITY-AND-EQUITY> 0
<SALES> 0
<TOTAL-REVENUES> 582,973
<CGS> 0
<TOTAL-COSTS> 69,505
<OTHER-EXPENSES> 103,530
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 468,477
<INCOME-TAX> 153,978
<INCOME-CONTINUING> 314,499
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 314,499
<EPS-PRIMARY> .16
<EPS-DILUTED> .16
</TABLE>
