<PAGE> 1
FORM 10-Q
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarter ended June 30, 1995
Commission File No. 0-10810
KIEWIT ROYALTY TRUST
(Exact name of Registrant as specified in its charter)
Nebraska 47-6131402
- ------------------------------------ --------------------------------------
(State or other jurisdiction of (I.R.S. Employer Identification No.)
incorporation or organization)
FirsTier Bank N.A. Omaha
17th & Farnam Streets
Omaha, Nebraska 68102
----------------------------------------
(Address of Principal Executive Offices)
(402) 348-6275
------------------------------------------------
(Registrant's telephone no. including area code)
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
----- ----
APPLICABLE ONLY TO CORPORATE REGISTRANTS
Indicate the number of shares outstanding of each of the
registrant's classes of common stock, as of the latest practicable date.
As of June 30, 1995, there were 12,633,432 Units of Beneficial
Interest of the registrant outstanding.
<PAGE> 2
PART I - FINANCIAL INFORMATION.
ITEM 1. FINANCIAL STATEMENTS.
KIEWIT ROYALTY TRUST
STATEMENT OF ASSETS, LIABILITY AND TRUST CORPUS
as of June 30, 1995 and December 31, 1994
<TABLE>
<CAPTION>
ASSETS 1995 1994
- ------ ---- ----
<S> <C> <C>
Cash and Short-term investments $ 466,645 $ 398,618
Net royalty and overriding
royalty interests in coal
leases:
Estimated fair market value
at date of transfer to Trust $ 73,878,000 $ 73,878,000
Allowance to reduce carrying
value to Peter Kiewit Sons'
Inc.'s historical book value ( 73,710,183) (73,710,183)
------------- -------------
$ 167,817 $ 167,817
Less accumulated amortization (64,066) (58,995)
Net royalty and overriding
royalty interests in coal
leases $ 103,751 $ 108,822
------------ ------------
Total Assets $ 570,396 $ 507,440
============ ============
LIABILITY AND TRUST CORPUS
- --------------------------
Distributions payable to
Unit Holders $ 466,645 $ 398,618
Trust corpus: 12,633,432
units of beneficial interest
authorized and outstanding $ 103,751 $ 108,822
----------- -----------
Total Liability and Trust Corpus $ 570,396 $ 507,440
============ ============
</TABLE>
The accompanying notes are an integral part
of the financial statements
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<PAGE> 3
KIEWIT ROYALTY TRUST
STATEMENT OF DISTRIBUTABLE INCOME
For the Three Months and Six Months Ended June 30, 1995 and 1994
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
June 30 June 30
--------------------------- ---------------------------
1995 1994 1995 1994
--------- --------- --------- ----------
<S> <C> <C> <C> <C>
Royalty Income $463,928 $298,706 $3,908,751 $3,858,426
Interest Income 17,104 6,784 54,639 25,887
Trust Expenses (14,387) (21,051) (17,387) (26,036)
-------- -------- -------- --------
Distributable
Income $466,645 $284,439 $3,946,003 $3,858,277
Distributable
income per unit
(12,633,432 units) $0.036937 $0.022515 $0.312346 $0.305402
</TABLE>
STATEMENT OF CHANGES IN TRUST CORPUS
For the Six Months Ended June 30, 1995 and 1994
<TABLE>
<CAPTION>
1995 1994
----------- ------------
<S> <C> <C>
Trust Corpus as of
January 1 $ 108,822 $ 129,396
Amortization of
royalty interest (5,071) (8,018)
Distributable Income 3,946,003 3,858,277
Distribution to Unit
Holders (3,946,003) (3,858,277)
------------ ------------
Trust Corpus as of
June 30 $ 103,751 $ 121,378
=========== ===========
</TABLE>
See Accompanying Notes to Financial Statements
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<PAGE> 4
KIEWIT ROYALTY TRUST
Notes to Financial Statements as of
June 30, 1995 and December 31, 1994
BASIS OF PRESENTATION
The accompanying unaudited financial statements have been
prepared in accordance with the instructions for Form 10-Q and do not
necessarily include all of the information and footnotes required by generally
accepted accounting principles for complete financial statements. In the
Trustee's opinion, all adjustments necessary for a fair presentation have been
included. For further information, refer to the financial statements and
footnotes included in the Trust's annual report on Form 10-K for the year ended
December 31, 1994.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The accompanying unaudited financial statements have been
prepared on the following basis:
(a) The royalty income recorded for a month is the amount
computed and paid by the lease holder to the Trustee for
such month.
(b) Trust administration expenses are recorded in the month
they accrue.
This basis for reporting royalty income is thought to be the most
meaningful because distributions to the Unit Holders for a month are based on
net cash receipts for such month. However, these statements differ from
financial statements prepared in accordance with generally accepted accounting
principles because, under such principles, royalty income for a month would be
based on production for such month without regard to when calculated or
received. In addition, amortization of the net royalty and overriding royalty
interests, which is calculated on a units-of-production basis by lease, is
charged directly to trust corpus, since such amount does not affect
distributable income.
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<PAGE> 5
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS.
a. MATERIAL CHANGES IN FINANCIAL CONDITION.
Kiewit Royalty Trust is a royalty trust with royalty and
overriding royalty interests in certain coal leases. The Trust was formed for
the purposes of (1) administering the income received from such coal leases and
(2) distributing such income (together with interest earned thereon less
payment of or provision for obligations) to the holders of the Units of
Beneficial Interest.
b. MATERIAL CHANGES IN RESULTS OF OPERATIONS.
During the six months ended June 30, 1995, the Trust received
a total of $3,908,751 of royalty and overriding royalty payments; during the
three months ended June 30, it received a total of $463,928 of such payments.
The following schedule reflects the royalty and overriding royalty amounts
received by the Trust from each mine.
<TABLE>
<CAPTION>
Six Months Ended
Mine Second Quarter June 30
---- -------------------------- ----------------------------
1995 1994 1995 1994
--------- ----------- ----------- ------------
<S> <C> <C> <C> <C>
Black Butte $ 198,890 $ --- $ 494,659 ---
Decker 230,314 241,758 3,305,570 3,736,702
Big Horn 34,724 56,948 108,522 121,724
Spring Creek --- --- --- ---
-------- -------- ---------- ----------
$ 463,928 $298,706 $3,908,751 $3,858,426
========= ======== ========== ==========
</TABLE>
i. BLACK BUTTE MINE.
The Trust received $494,659 from the Black Butte Mine during the first
six months of 1995, as compared to no royalties during the first six months of
1994. Royalties in the amount of $363,236 that would otherwise have been paid
to the Trust during the first six months of 1994 were paid into an escrow
account, which has since been terminated and the proceeds distributed to Unit
Holders. The increase in royalties received during the first six months of
1995 as compared to the amount paid into escrow during the first six months of
1994 reflects increased production from Lease number W-6266, which is a normal
result of a mining plan encompassing several leases.
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<PAGE> 6
Lease number W-6266 provides that the terms and conditions of the lease
are subject to "reasonable readjustment" effective on April 1, 1996. At that
time, the royalty rate payable to the United States will be increased to 12-
1/2%, which is the currently prevailing federal royalty rate. Because of the
cap on the amount of the overriding royalty payable to the Trust with respect
to this lease, the increased royalty rate will effectively eliminate further
payments to the Trust with respect to that lease.
ii. DECKER MINE.
The amount of royalties and overriding royalties received by the Trust
with respect to the Decker Mine decreased to $3,305,570 in the first six months
of 1995 compared to $3,736,702 during the same period in 1994. For the second
quarter, the amounts received decreased to $230,314 compared to the $241,758
received during the second quarter of 1994. These decreases in royalty and
overriding royalty amounts received were due to changes in the relative amounts
of coal mined under leases bearing high and low overriding royalty rates per
ton, which are a normal result of the execution of a mining plan encompassing
several coal leases bearing different royalty rates and increased production
from the applicable leases.
iii. BIG HORN MINE.
Royalties received from the Big Horn Mine decreased to $34,724 during
the second quarter of 1995 from $56,948 in 1994, and overall receipts for the
first six months of 1995 decreased to $108,522 compared to $121,724 during the
corresponding period in 1994. This decrease during the first six months of
1995 reflects decreased production in the relative amounts of coal mined under
leases bearing high and low overriding royalty rates per ton. The relatively
small amount of receipts generally reflects minimal current production at the
mine.
iv. SPRING CREEK MINE.
No royalties were received from the Spring Creek Mine during the first
six months of 1995 or 1994 because royalties are typically paid by the mine
operators on an annual basis during the second half of a calendar year.
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<PAGE> 7
PART II - OTHER INFORMATION.
ITEM 1. LEGAL PROCEEDINGS.
There are no material pending legal proceedings to which the Trust is a
party or of which any of its property is the subject.
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K.
(a) Financial Data Schedule
(b) No reports on Form 8-K were filed during the quarter for which this
report is filed.
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<PAGE> 8
SIGNATURE
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.
KIEWIT ROYALTY TRUST
(Registrant)
By: FirsTier Bank N.A. Omaha in its
capacity as Trustee and not in its individual
capacity or otherwise
By /s/ Susan K. Rosburg
--------------------------------
Susan K. Rosburg
Trust Officer
Dated: August 11, 1995
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> JUN-30-1995
<CASH> 466,645
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 570,396
<CURRENT-LIABILITIES> 466,645
<BONDS> 0
<COMMON> 0
0
0
<OTHER-SE> 103,751
<TOTAL-LIABILITY-AND-EQUITY> 570,396
<SALES> 0
<TOTAL-REVENUES> 3,963,390
<CGS> 0
<TOTAL-COSTS> 3,946,003
<OTHER-EXPENSES> 17,387
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 0
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 0
<EPS-PRIMARY> 0.31
<EPS-DILUTED> 0.31
</TABLE>
