<PAGE> 1
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
FORM 10-Q
/X/ Quarterly Report Under Section 13 or 15(d)of the Securities
Exchange Act of 1934.
For the quarterly period ended March 31, 1995.
/ / Transition Report Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934.
For the transition period from n/a to n/a.
Commission File Number: 0-497
NEW MEXICO AND ARIZONA LAND COMPANY
(Exact name of registrant as specified in its charter)
Arizona 43-0433090
(State or other jurisdiction of ( I.R.S. Employer
incorporation or organization) Identification No.)
3030 North 44th Street, Suite 270, Phoenix, Arizona 850018-7228
(Address of principal executive offices) (Zip Code)
602/952-8836
(Registrant's telephone number,including area code)
2810 North 3rd Street, Phoenix, AZ 85004
(Former name, former address and former fiscal year if changed
since last report)
Indicate by check mark whether the registrant (1) has filed all
reports to be filed by Section 13 or 15(d) of the Securities
Exchange Act of 1934 during the preceding twelve 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 / /
Indicate the number of shares outstanding of each of the issuer's
classes of common stock, as of the latest practicable date.
Common Stock, no par value 2,727,517
Class Outstanding at April 24, 1995*
*Adjusted for 10% stock dividend declared March 4, 1995.
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NEW MEXICO AND ARIZONA LAND COMPANY AND SUBSIDIARIES
For the Quarter Ended March 31, 1995
INDEX
Page
Number
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements
Consolidated Statements of Operations for the
three months ended March 31, 1995 and 1994 3
Consolidated Balance Sheets as of
March 31, 1995 and December 31, 1994 4
Consolidated Statements of Cash Flows for the
three months ended March 31,1995 and 1994 5
Notes to Consolidated Financial Statements 6
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of Operations 7
PART II - OTHER INFORMATION 8
SIGNATURES 8
<PAGE> 3
<TABLE>
NEW MEXICO AND ARIZONA LAND COMPANY AND SUBSIDIARIES
Consolidated Statements of Operations (Unaudited)
<CAPTION>
Three Months ended March 31,
(In thousands, except per share data) 1995 1994
- ---------------------------------------------------------------
Revenues:
<S> <C> <C>
Property sales $2,769 $2,144
Property rentals 754 772
Investment income 529 440
Other 43 50
------ ------
4,095 3,406
Expenses:
Cost of property sales 1,421 1,286
Rental property 255 283
General and administrative 289 362
Interest 244 276
Depreciation, depletion & amortization 122 138
Other 2 2
------ ------
2,333 2,347
------ ------
Income Before Joint Ventures, Minority
Interests and Income Taxes 1,762 1,059
Gain (loss) from joint ventures 893 4
Minority interests (255) (56)
------ ------
Income Before Income Taxes 2,400 1,007
Provision for income taxes 954 412
------ ------
Net Income $1,446 $595
====== ======
Net Income Per Share of Common Stock $0.53 $0.22
====== ======
Average Number of Common Shares 2,728 2,728
====== ======
See accompanying Notes to Consolidated Financial Statements.
Shares and earnings per share have been restated to reflect a
10% stock dividend declared March 4, 1995.
</TABLE>
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<TABLE>
NEW MEXICO AND ARIZONA LAND COMPANY AND SUBSIDIARIES
Consolidated Balance Sheets
<CAPTION>
Unaudited
(Dollars in thousands) March 1995 December 1994
- -----------------------------------------------------------------
Assets
<S> <C> <C>
Properties, net $35,599 $35,432
Receivables, net 10,032 10,224
Cash and cash equivalents 7,519 5,111
Other 1,509 1,540
------- -------
Total Assets $54,659 $52,307
======= =======
Liabilities and Shareholders' Equity
Notes payable and lines of credit $14,949 $14,546
Accounts payable & accrued liabilities 3,826 3,417
Deferred revenue and commissions 5,540 5,494
Deferred income taxes 3,767 3,723
------- -------
Total liabilities 28,082 27,180
Shareholders' Equity:
Common stock, no par value; 30,000,000
shares authorized; 2,739,425 shares
issued; 2,727,517 shares outstanding 10,051 7,812
Additional paid-in capital 937 929
Retained earnings 15,681 16,478
Treasury stock, at cost, 10,826 shares (92) (92)
------- -------
Total shareholders' equity 26,577 25,127
------- -------
Total Liabilities and
Shareholders' Equity $54,659 $52,307
======= =======
See Accompanying Notes to Consolidated Financial Statements.
All shares of common stock have been restated to reflect a
10% stock dividend declared March 4, 1995.
<PAGE>
</TABLE>
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<TABLE>
NEW MEXICO AND ARIZONA LAND COMPANY AND SUBSIDIARIES
Consolidated Statements of Cash Flows (Unaudited)
<CAPTION>
Three Months ended March 31, 1995 1994
(Dollars in thousands)
- ---------------------------------------------------------------
CASH FLOW FROM OPERATING ACTIVITIES:
<S> <C> <C>
Net income $1,446 $595
Non-cash items included above:
Depreciation, depletion & amortization 122 138
Deferred revenue (117) (291)
Deferred income taxes 44 (5)
(Gain) loss from joint ventures (893) (4)
Minority interests 255 56
Employee restricted stock plan 8 10
Net change in:
Receivables 105 (83)
Land held for sale (365) 68
Other assets 6 (95)
Accounts payable & accrued liabilities 288 (49)
------ ------
Net cash flow from operating activities 899 340
CASH FLOW FROM INVESTING ACTIVITIES:
Additions to properties (123) (47)
Proceeds from sale of properties 198 0
Proceeds from notes receivable 250 314
Distribution to minority interest partners (137) 0
Distributions from joint ventures 918 0
------ ------
Net cash flow from investing activities 1,106 267
CASH FLOW FROM FINANCING ACTIVITIES:
Proceeds from debt 923 839
Payment of debt (520) (980)
Capital contribution from minority
interest partners 0 6
------ ------
Net cash flow from financing activities 403 (135)
------ ------
Net increase (decrease) in cash and
cash equivalents 2,408 472
Cash and cash equivalents at
beginning of period 5,111 534
------ ------
Cash and cash equivalents at
end of period $7,519 $1,006
====== ======
See accompanying Notes to Consolidated Financial Statements.
</TABLE>
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NEW MEXICO AND ARIZONA LAND COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
1. In the opinion of the Company, the accompanying unaudited
consolidated financial statements contain all adjustments
necessary to present fairly the financial position, the
results of operations and cash flows for the periods
presented. The accompanying statements do not include all
disclosures considered necessary for a fair presentation in
conformity with generally accepted accounting principles.
Therefore, it is recommended that these accompanying
statements be read in conjunction with the consolidated
financial statements appearing in the Company's 1994 annual
report on Form 10-K.
2. The results of operations for the three months ended March
31, 1995 and 1994, are not necessarily indicative of the
results to be expected for the full year.
3. During the three months ended March 31, 1995 and 1994, the
Company sold land in exchange for notes receivable in the
amount of $178,000 and $255,000 respectively, all of which
was deferred.
4. The Company's consolidated financial statements include those
of its wholly-owned subsidiaries, NZ Properties, Inc., NZ
Development Corporation and NZU Inc., along with three joint
ventures in which the Company holds a majority ownership.
5. Certain amounts have been reclassified for comparative
purposes.
6. Earnings per share are based on 2,727,517 shares in 1995 and
1994, which represents the weighted average number of shares
outstanding and which have been restated to reflect a 10%
stock dividend declared March 4,1995.
<PAGE> 7
NEW MEXICO AND ARIZONA LAND COMPANY AND SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
LIQUIDITY AND CAPITAL RESOURCES
Cash flow from sales of land, single-family and recreational
lots, distributions from its joint ventures and other ongoing
operations, along with unused borrowing capacity, should be
adequate for continuing operations and considerable future
investments.
Financing, at the joint venture level, is being utilized to
develop single-family lots. This loan is secured by the
property involved, along with guarantees from the Company and
its partner. At March 31, 1995, there was $923,000 borrowed
against the $2,800,000 development loan. The Company has a line
of credit, which converted to a reducing revolving term loan,
with a commitment base of $1,250,000. The line, which is
expected to be extended, matures June 30, 1995, is secured by
various real estate holdings and notes receivable. At March 31,
1995 the Company had no borrowings against this line.
RESULTS OF OPERATIONS
For the three months ended March 31, 1995 net income was
$1,446,000 ($0.53 per share) compared to $595,000 ($0.22 per
share) for the same period of 1994. The 1995 increased earnings
are a result of the sale of a 12-acre school site and continued
strong sales of single-family lots in our Seven Bar and
WillowWood subdivisions in Albuquerque. The first quarter also
included a cash distribution from a joint venture property
located in Tempe, Arizona. This distribution resulted from the
sale of the office building and adjoining vacant 8-acre parcel
that was the only asset of the joint venture. NZ's investment
in this joint venture had been written off in 1991 due to the
soft real estate market at that time. With the resurgence of
the real estate market, the sale of this property was possible
and NZ will receive cash of approximately $1,600,000 in total.
$900,000 of this amount was received and recorded as income in
this reporting period.
NOTE: Earnings per share have been restated to reflect a 10%
stock dividend declared March 4, 1995.
<PAGE> 8
NEW MEXICO AND ARIZONA LAND COMPANY AND SUBSIDIARIES
PART II - OTHER INFORMATION
There were no proceedings, changes, occurrences or other matters
occurring during the three month period ended March 31, 1995,
requiring a response to Items 1 through 6.
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.
New Mexico and Arizona Land Company
s/E.M.Bedewi
E. M. Bedewi,
Sr. Vice President and Treasurer
s/William A. Pope
William A. Pope,
President and Chief Executive Officer
Date: April 25, 1995
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> MAR-31-1995
<CASH> 7,519
<SECURITIES> 0
<RECEIVABLES> 10,032
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 40,156
<DEPRECIATION> 4,557
<TOTAL-ASSETS> 54,659
<CURRENT-LIABILITIES> 0
<BONDS> 0
<COMMON> 10,051
0
0
<OTHER-SE> 16,526
<TOTAL-LIABILITY-AND-EQUITY> 54,659
<SALES> 2,769
<TOTAL-REVENUES> 4,095
<CGS> 1,421
<TOTAL-COSTS> 546
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 244
<INCOME-PRETAX> 2,400
<INCOME-TAX> 954
<INCOME-CONTINUING> 1,446
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 1,446
<EPS-PRIMARY> 0.53
<EPS-DILUTED> 0.53
</TABLE>
