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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 March 31, 1996
Commission File No. 0-10810
KIEWIT ROYALTY TRUST
(Exact name of Registrant as specified in its charter)
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<S> <C>
Nebraska 47-6131402
- ----------------------------------- -----------------------------
(State or other jurisdiction of (I.R.S. Employer Identification No.)
incorporation or organization)
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First Bank, National Association
(Successor to FirsTier Bank N.A. Omaha)
1700 Farnam Street
Omaha, Nebraska 68102
----------------------------------------
(Address of Principal Executive Offices)
(402) 348-6000
------------------------------------------------
(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
------- -------
As of May 10, 1996, there were 12,633,432 Units of Beneficial
Interest of the registrant outstanding.
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PART I - FINANCIAL INFORMATION.
ITEM 1. FINANCIAL STATEMENTS.
KIEWIT ROYALTY TRUST
STATEMENT OF ASSETS, LIABILITY AND TRUST CORPUS
as of March 31, 1996 and December 31, 1995
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<CAPTION>
ASSETS 1996 1995
- ------ ---- ----
<S> <C> <C>
Cash and Short-term investments $ 2,251,369 $ 162,011
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 (73,968) (70,897)
Net royalty and overriding
royalty interests in coal
leases $ 93,849 $ 96,920
------------ ------------
Total Assets $ 2,345,218 $ 258,931
============ ============
LIABILITY AND TRUST CORPUS
- --------------------------
Distributions payable to
Unit Holders $ 2,251,369 $ 162,011
Trust corpus: 12,633,432
units of beneficial interest
authorized and outstanding $ 93,849 $ 96,920
------------ ------------
Total Liability and Trust
Corpus $ 2,345,218 $ 258,931
============ ============
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The accompanying notes are an integral part
of the financial statements
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KIEWIT ROYALTY TRUST
STATEMENT OF DISTRIBUTABLE INCOME
For the Three Months Ended March 31
1996 1995
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<S> <C> <C>
Royalty Income $ 2,243,681 $ 3,444,823
Interest Income 23,206 37,535
Trust Expenses (15,518) ( 3,000)
------------ ------------
Distributable
Income $ 2,251,369 $ 3,479,358
Distributable Income
Per Unit (12,633,432
Units) 0.1782072 0.27540877
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STATEMENT OF CHANGES IN TRUST CORPUS
For the Three Months ended March 31,
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<CAPTION>
1996 1995
---- ----
<S> <C> <C>
Trust Corpus as of
January 1 $ 96,920 $ 108,822
Amortization of
royalty interest (3,071) (3,232)
Distributable Income 2,251,369 3,479,358
Distribution to Unit
Holders (2,251,369) (3,479,358)
------------ ------------
Trust Corpus as of
March 31 $ 93,849 $ 105,590
========== ===========
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See Accompanying Notes to Financial Statements
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KIEWIT ROYALTY TRUST
Notes to Financial Statements
as of March 31, 1996 and December 31, 1995
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, 1995.
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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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 first quarter of 1996, the Trust received a total
$2,243,681 of royalty and overriding royalty payments. The following schedule
reflects the royalty and overriding royalty amounts received by the Trust from
each mine for the three months ended March 31, 1996 and 1995.
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<CAPTION>
Mine First Quarter
---- -----------------------------------
1996 1995
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<S> <C> <C>
Decker $2,104,649 $3,075,256
Big Horn 1,493 73,798
Black Butte 137,539 295,769
Spring Creek --- ---
--------- ---------
$2,243,681 $3,444,823
========== ==========
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i. DECKER MINE.
The amount of royalties and overriding royalties received by
the Trust with respect to the Decker Mine decreased to $2,104,649 in the first
quarter of 1996 compared to $3,075,256 during the same period in 1995. The
decrease for the first quarter of 1996 was 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 decreased
production from the applicable leases.
ii. BIG HORN MINE.
Royalties received from the Big Horn Mine decreased to $1,493
during the first quarter of 1996 from $73,798 in 1995. This decrease reflects
decreased production from the applicable lease.
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iii. BLACK BUTTE MINE.
The Trust received $137,539 from the Black Butte Mine during
the first quarter of 1996, as compared to $295,769 during the first quarter of
1995. The decrease in royalties received during the first quarter of 1996
reflects decreased production from the mine.
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 was 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 this lease.
iv. SPRING CREEK MINE.
No royalties were received from the Spring Creek Mine during
the first quarters of 1996 or 1995 because royalties are typically paid by the
mine operators on an annual basis during the second-half of a calendar year.
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) Exhibits.
27.1 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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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: First Bank, National Association
in its capacity as Trustee and not
in its individual capacity or otherwise
By /s/ Susan K. Rosburg
------------------------------------
Susan K. Rosburg
Trust Officer
Dated: May 10, 1996
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<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> MAR-31-1996
<CASH> 2,251,369
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 2,345,218
<CURRENT-LIABILITIES> 2,251,369
<BONDS> 0
0
0
<COMMON> 0
<OTHER-SE> 93,849
<TOTAL-LIABILITY-AND-EQUITY> 2,345,218
<SALES> 0
<TOTAL-REVENUES> 2,266,887
<CGS> 0
<TOTAL-COSTS> 2,251,369
<OTHER-EXPENSES> 15,518
<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> 0.18
<EPS-DILUTED> 0.18
</TABLE>
