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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
FORM 10-Q
[X] Quarterly Report Pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934
For the quarterly period ended June 30, 1996.
[ ] 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.)
3033 N. 44TH STREET, SUITE 270, PHOENIX, ARIZONA 85018-7228
(Address of principal executive offices) (Zip Code)
602/952-8836
(Registrant's telephone number, including area code)
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 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___
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 3,007,656
Class Outstanding at July 31, 1996
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NEW MEXICO AND ARIZONA LAND COMPANY AND SUBSIDIARIES FORM 10-Q
For the Quarter Ended June 30, 1996
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Number
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PART I - FINANCIAL INFORMATION
Item 1. Financial Statements
Consolidated Statements of Income for the three
and six months ended June 30, 1996 and 1995 3
Consolidated Balance Sheets as of
June 30, 1996 and December 31, 1995 4
Consolidated Statements of Cash Flows for the
six months ended June 30, 1996 and 1995 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
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New Mexico and Arizona Land Company and Subsidiaries FORM 10-Q
Consolidated Statements of Income (Unaudited)
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Three months ended June 30, Six months ended June 30,
(in thousands, except per share data) 1996 1995 1996 1995
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Revenue:
Property sales $2,005 $3,588 $5,451 $6,357
Property rentals 750 739 1,499 1,493
Investment income 307 453 648 982
Other 59 1,227 131 1,270
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3,121 6,007 7,729 10,102
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Expenses:
Cost of property sales 1,165 2,480 3,194 3,901
Rental property 270 268 519 523
General and administrative 324 371 646 662
Interest 212 229 467 473
Depreciation, depletion and amortization 116 120 234 242
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2,087 3,468 5,060 5,801
Income Before Joint Ventures, Minority
Interests and Income Taxes 1,034 2,539 2,669 4,301
Gain from joint ventures 1 701 8 1,594
Minority interests (116) (251) (362) (506)
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Income Before Income Taxes 919 2,989 2,315 5,389
Income taxes 368 1,186 927 2,140
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Net Income $ 551 $1,803 $1,388 $3,249
=====================================================================================================
Earnings per Share of Common Stock $ 0.18 $ 0.60 $ 0.46 $ 1.08
=====================================================================================================
Weighted Average Number of Common Shares 3,008 2,996 3,008 2,996
=====================================================================================================
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See accompanying Notes to Consolidated Financial Statements.
Shares and earnings per share for 1995 have been restated to reflect a 10%
Stock Dividend declared May 20, 1996.
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New Mexico and Arizona Land Company and Subsidiaries FORM 10-Q
Consolidated Balance Sheets
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Unaudited
June 30, December 31,
(in thousands) 1996 1995
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Assets
Properties, net $42,927 $41,327
Receivables, net 10,047 9,690
Cash and cash equivalents 6,308 5,301
Other 1,613 1,364
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Total assets $60,895 $57,682
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Liabilities and Shareholders' Equity
Notes payable and lines of credit $15,506 $14,080
Accounts payable and accrued liabilities 1,354 999
Deferred revenue 5,363 5,330
Deferred income taxes 4,347 4,188
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Total liabilities 26,570 24,597
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Minority interests 2,220 2,364
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Shareholders' equity:
Preferred stock, no par value; 10,000,000
shares authorized; none issued
Common stock, no par value; 30,000,000
shares authorized; 3,007,656 shares
issued and outstanding 13,673 10,051
Additional paid-in capital 967 966
Retained earnings 17,465 19,736
Treasury stock, at cost, 4,908 shares at 12/31/95 -- (32)
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Total shareholders' equity 32,105 30,721
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Total liabilities and shareholders' equity $60,895 $57,682
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</TABLE>
See accompanying Notes to Consolidated Financial Statements.
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New Mexico and Arizona Land Company and Subsidiaries FORM 10-Q
Consolidated Statements of Cash Flows (Unaudited)
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Six months ended June 30,
(in thousands) 1996 1995
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Cash Flow from Operating Activities:
Net income $ 1,388 $3,249
Non-cash items included above:
Depreciation, depletion and amortization 234 242
Deferred revenue (294) (366)
Deferred income taxes 159 461
Gain from joint ventures (8) (1,594)
Minority interests 362 506
Employee restricted stock plan 1 10
Net change in:
Receivables 45 1,295
Land held for sale (1,423) (1,762)
Other assets (244) (112)
Accounts payable and accrued liabilities 350 (912)
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Net cash flow from operating activities 570 1,017
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Cash Flow From Investing Activities:
Additions to properties (411) (192)
Proceeds from sale of properties -- 4,565
Proceeds from notes receivable 752 501
Addition to notes receivable (827) --
Distribution to minority interest partners (546) (197)
Distributions from joint ventures 3 1,632
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Net cash flow from investing activities (1,029) 6,309
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Cash Flow From Financing Activities:
Proceeds from debt 2,599 1,623
Payment of debt (1,173) (2,567)
Capital contribution minority interest partner 40 --
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Net cash flow from financing activities 1,466 (944)
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Net increase in cash and cash equivalents 1,007 6,382
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Cash and cash equivalents at beginning of period 5,301 5,111
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Cash and cash equivalents at end of year $6,308 $11,493
==========================================================================
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See accompanying Notes to Consolidated Financial Statements.
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New Mexico and Arizona Land Company and Subsidiaries FORM 10-Q
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 1995
annual report on Form 10-K
2. The results of operations for the six months ended June 30, 1996
and 1995, are not necessarily comparable and may not be indicative
of the results which may be expected for future quarters or future
years.
3. During the six months ended June 30, 1996 and 1995, the Company
sold land in exchange for notes receivable in the amount of
$1,154,000 and $338,000, respectively, of which $327,000 and
$338,000, respectively, 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 five joint ventures in which
the Company holds a majority ownership.
5. Certain amounts have been reclassified for comparative purposes.
6. Earnings per share computations are based on the weighted average
number of shares outstanding of 3,007,656 and 2,995,748 in 1996 and
1995 respectively, which have been restated to reflect a 10% stock
dividend declared May 20, 1996.
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New Mexico and Arizona Land Company and Subsidiaries FORM 10-Q
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
LIQUIDITY AND CAPITAL RESOURCES
Cash flow from sales of land 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. These loans are secured by the property involved,
along with guarantees from the Company and its partner. At June 30,
1996, there was $29,000 borrowed against a $2,800,000 development loan
and $2,134,000 borrowed against a $3,850,000 development line of credit.
The Company has a $1,000,000 line of credit, which matures October 31,
1996, and is secured by certain real estate holdings. At June 30, 1996,
there were no funds borrowed on this line.
RESULTS OF OPERATIONS
For the six months ended June 30, 1996, net income was $1,388,000
(46 cents per share) compared to $3,249,000 ($1.08 per share, restated
for the 1996 stock dividend) for the same period of 1995. In 1995 the
Company recorded two one-time payments that affected income by the
following amounts: $1,600,000 from the sale of a joint venture property
located in Tempe, Arizona and $1,084,000 from the sale of a mortgage
note secured by a Tucson hotel. Revenue from investment income is less
in 1996 due to the sale of this mortgage note. Earnings from sales of
single-family lots in 1996 were down by approximately $600,000 from the
same period in 1995. This downward trend was expected as the rate of
absorbtion of single family lots begins to come more in line with
supply. 1996 earnings include the sales of several of the 40-acre
parcels from our recreational lots sales program in southern Arizona,
while 1995 earnings included income from the sale of two commercial
parcels in Albuquerque.
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New Mexico and Arizona Land Company and Subsidiaries FORM 10-Q
PART II - OTHER INFORMATION
There were no proceedings, changes, occurrences or other matters
occurring during the six month period ended June 30, 1996, 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
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E. M. Bedewi,
Sr. Vice President and Treasurer
/s/ William A. Pope
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William A. Pope,
President and Chief Executive Officer
Date: August 7, 1996
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<MULTIPLIER> 1,000
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<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> JUN-30-1996
<CASH> 6,308
<SECURITIES> 0
<RECEIVABLES> 10,047
<ALLOWANCES> 0
<INVENTORY> 0
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<PP&E> 48,006
<DEPRECIATION> 5,079
<TOTAL-ASSETS> 60,895
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0
0
<COMMON> 13,673
<OTHER-SE> 18,432
<TOTAL-LIABILITY-AND-EQUITY> 60,895
<SALES> 5,451
<TOTAL-REVENUES> 7,729
<CGS> 3,194
<TOTAL-COSTS> 3,713
<OTHER-EXPENSES> 880
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 467
<INCOME-PRETAX> 2,315
<INCOME-TAX> 927
<INCOME-CONTINUING> 1,388
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 1,388
<EPS-PRIMARY> .46
<EPS-DILUTED> .46
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