SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-QSB
QUARTERLY REPORT UNDER SECTION 13 OR 15 (d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For Quarter Ended September 30, 1995 Commission File No. 0-17538
WESTAMERICA CORPORATION
(Exact name of Registrant as specified in its charter)
Oklahoma 73-1322822
(State or other jurisdiction of (I.R.S. Employer
incorporated or organization) Identification No.)
Highway 75 North, Dewey, Oklahoma 74029
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (918) 534-1700
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.
As of June 30, 1995 the Registrant had outstanding 2,936,940
shares of Common stock, par value $.01 per share, which is the
Registrant's only class of common stock.
PAGE 1
<PAGE> WESTAMERICA CORPORATION
QUARTERLY REPORT ON FORM 10-QSB
For the Quarter ended September 30, 1995
TABLE OF CONTENTS
PART I
Page
Item 1. Consolidated Financial Statements (Unaudited):
Balance Sheets as of September 30, 1995. . . . . . . . . 3
Statement of operations for three months ended
September 30, 1995 and 1994 (Unaudited) . . . . . . . 4
Statement of operations for six months ended
September 30, 1995 and 1994 (Unaudited. . . . . . . . 5
Statement of cash flows for six months ended
September 30, 1995 and 1994 (Unaudited) . . . . . . . 6
Notes to Consolidated Financial Statements (Unaudited) . 7
Item 2. Management's Discussion and Analysis
of Financial Condition and Results of Operations . . . . 8
Signatures . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
PAGE 2
<PAGE> WESTAMERICA CORPORATION
CONSOLIDATED BALANCE SHEETS
(Dollars in Thousands)
(Unaudited)
ASSETS September 30
1995
CURRENT ASSETS:
Cash and cash equivalents $ 289
Marketable securities, at market which approximates cost 13
Accounts receivable:
Trade 359
Other 127
Notes receivable - current 25
Inventories 190
TOTAL CURRENT ASSETS 1,003
PROPERTY AND EQUIPMENT:
Oil and gas properties, successful
efforts method 3,172
Transportation, drilling and
other equipment 572
Land and buildings 950
Less accumulated depreciation,
depletion, and amortization (3,375)
1,319
OTHER ASSETS:
Goodwill, less accumulated amortization 391
Other assets 308
$ 3,021
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Notes payable and current portion
of long-term debt $ 7
Accounts payable 309
Accrued expenses 151
Prepaid drilling contract 462
TOTAL CURRENT LIABILITIES 929
DEFERRED INCOME 32
LONG-TERM DEBT 373
NOTES PAYABLE TO STOCKHOLDER 94
STOCKHOLDERS' EQUITY:
Non voting convertible preferred stock, redeemable and
cumulative, par value of $.01 per share, authorized
1,000,000 shares; outstanding 100,000 shares 1
Common stock, $.01 par value authorized 10,000,000
shares; issued 2,936,490, outstanding 2,916,782 shares 29
Additional paid-in capital 5,557
Deficit (3,975)
Treasury stock, at cost, 19,808 shares (19)
1,593
$ 3,021
See notes to consolidated financial statements
PAGE 3
<PAGE> WESTAMERICA CORPORATION
STATEMENTS OF OPERATIONS
(Dollars in Thousands)
(Unaudited)
Three Months Ended
September 30,
1995 1994
REVENUES:
Commission income $ 664 $ 527
Oil and gas sales 46 50
Oil field service income 113 17
Interest and other 137 52
960 646
COSTS AND EXPENSES:
Brokerage commissions and clearing brokers
charges 424 268
Brokerage operating expenses 249 265
Oil and gas operations 78 65
Selling, general and administrative 83 58
Depreciation, depletion and
amortization 21 37
Interest 11 10
866 703
Income (Loss) from continuing operations 94 (57)
Discontinued operations:
Loss from operations of discontinued
business -0- (1)
NET INCOME (LOSS) $ 94 $ (58)
Per Share:
Income (Loss) from continuing operations $ .03 $ (.02)
Net Income (Loss) $ .03 $ (.02)
AVERAGE SHARES OUTSTANDING 2,936,490 2,936,940
See notes to consolidated financial statements.
PAGE 4
<PAGE> WESTAMERICA CORPORATION
STATEMENTS OF OPERATIONS
(Dollars in Thousands)
(Unaudited)
Six Months Ended
September 30,
1995 1994
REVENUES:
Commission income $ 1,164 $ 1,041
Oil and gas sales 96 100
Oil field service income 146 38
Interest and other 142 82
1,548 1,261
COSTS AND EXPENSES:
Brokerage commissions and clearing brokers
charges 766 559
Brokerage operating expenses 501 518
Oil and gas operations 160 132
Selling, general and administrative 137 122
Depreciation, depletion and
amortization 43 82
Interest 23 19
1,630 1,432
Loss from continuing operations (82) (171)
Discontinued operations:
Loss from operations of discontinued
business -0- (15)
NET LOSS $ ( 82) $ (186)
Per Share:
Loss from continuing operations $ (.03) $ (.06)
Net loss $ (.03) $ (.07)
AVERAGE SHARES OUTSTANDING 2,936,490 2,936,940
See notes to consolidated financial statements.
PAGE 5
<PAGE> WESTAMERICA CORPORATION
SIX MONTHS ENDED SEPTEMBER 30, 1995
STATEMENT OF CASH FLOWS
(Dollars in Thousands)
(Unaudited)
Six Months Ended
September 30, 1995
1995 1994
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Loss $ ( 82) $ (186)
Adjustments to reconcile net loss to net
cash in operating activities:
Depreciation, depletion and amortization 43 82
Gain on sale of assets (121) -0-
(Increase) Decrease in receivables (146) (60)
(Increase) Decrease in inventory 18 (11)
(Increase) Decrease in other assets (27) (93)
(Decrease) increase in accounts payable
and contract drilling advances 89 (48)
Other ( 5) 2
Total adjustments (149) (128)
Net cash provided by (used in) operating
activities (231) (314)
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from sale
of property and equipment 161 -0-
Purchase of property and equipment (165) (209)
Purchase of marketable securities -0- (15)
Collection of notes receivable 19 -0-
Net cash provided by investing activities 15 (224)
CASH FLOWS FROM FINANCING ACTIVITIES:
Repayment of borrowing (19) (15)
Proceeds from preferred stock offering -0- 87
Dividends paid (45) (43)
Decrease in notes payable to stockholders ( 5) ( 4)
Net cash provided by (used in)
financing activities (69) 25
NET INCREASE (DECREASE) IN CASH AND CASH
EQUIVALENTS (285) (513)
CASH AND CASH EQUIVALENTS, beginning of year 574 762
CASH AND CASH EQUIVALENTS, end of period $ 289 $ 249
See noted to consolidated financial statements
PAGE 6
<PAGE> WESTAMERICA CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
SIX MONTHS ENDED SEPTEMBER 30, 1995
(Unaudited)
1. Basis of Presentation.
The financial statements presented herein were prepared in accordance with
the instructions to Form 10-QSB. Accordingly the statements presented do
not include all the information and note disclosure required by generally
accepted accounting principles. The statements should be read in
conjunction with the financial statements and notes thereto included in the
Registrant's Form 10-KSB for the year ended March 31, 1995. The
accompanying financial statements have not been audited by independent
accountants but, in the opinion of management, contain all adjustments, all
of which were of a normal recurring nature, necessary to summarize fairly
the Registrant's financial position and results of operations. The results
of operations for the six months ended September 30, 1995 may not be
indicative of the results that may be expected for the year ending March
31, 1996.
PAGE 7
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS.
This discussion should be read in conjunction with the financial statements
of WestAmerica Corporation and the notes related thereto included under
Item 1 of this report.
MD&A CAPITAL RESOURCES & LIQUIDITY
Consolidated current assets decreased $4,000 to $1,003,000 at September 30,
1995, compared with $1,007,000 at June 30, 1995. Current liabilities
increased from $850,000 at June 30, 1995 to $929,000 at September 30, 1995.
The current ratio was 1.08:1 at September 30, 1995 compared to 1.18:1 at
June 30, 1995. The decrease in liquidity resulted primarily from an
increase in account payable of $107,000 and an increase in accrued expenses
of $75,000 during the period ending September 30, 1995. The Registrant has
sufficient liquidity to provide for foreseeable business needs, however it
is currently raising additional capital by offering privately a new issue
of preferred stock and by selling working interest in producing and non
producing coal bed methane gas wells.
RESULTS OF OPERATIONS
Revenues for the three months ended September 30, 1995 were $960,000
compared to $646,000 for the three month period ended September 30, 1994.
Commission income increased $137,000 due to an increased number of
investment representatives being employed by the company's subsidiary,
WestAmerica Investment Group, Inc. Oil and gas operations contributed
$306,000 compared to $119,000 for the three months ended September 30,
1994. The $187,000 increase in revenue from oil and gas operations was
primarily due to recognizing the partial completion of a $760,000 drilling
contract entered into with Oklahoma Resources General Partnership on
December 31, 1994. Additionally revenues were generated by the sale of
working interests in completed coal bed methane gas wells. Cost and
expenses were $876,000 for the three month period ended September 30, 1995
compared to $703,000 for the three month period ended September 30, 1994.
Brokerage commissions and clearing broker charges increased $156,000 from
$268,000 in the period ended September 30, 1994 to $424,000 in the period
ended September 30, 1995. This increase was due primarily to the increase
in commission income for the period ended September 30, 1995 which caused
broker commissions to increase as well as to a change in business mix
whereby transactional business increased relative to financial planning and
insurance type business. The increase in transaction business caused
clearing brokers charges to increase disproportionately to the increase in
commission income. The registrant's primary sources of revenue during the
period September 30, 1995 were; commission and investment management fee
income 68%, oil and gas operations 31% and other income 1%. Income from
continuing operations increased from a loss of $57,000 for the three months
ended September 30, 1994 to income of $94,000 for the three months ended
September 30, 1995. This change to profitability was primarily the result
of selling working interests in coal bed methane gas wells and partially
completing the drilling contract mentioned above.
PAGE 8
<PAGE> SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Resistant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
ECC ENERGY CORPORATION
Date: November 14, 1995 By: /s/ Edward R. Foraker
Edward R. Foraker
President and Director,
Principle Executive Officer,
Principle Financial Officer, and
Principle Accounting Officer
<PAGE>
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1,000
<S> <C>
<FISCAL-YEAR-END> MAR-31-1996
<PERIOD-END> SEP-30-1995
<PERIOD-TYPE> 6-MOS
<CASH> 289
<SECURITIES> 13
<RECEIVABLES> 486
<ALLOWANCES> 0
<INVENTORY> 190
<CURRENT-ASSETS> 1003
<PP&E> 4694
<DEPRECIATION> 3375
<TOTAL-ASSETS> 3021
<CURRENT-LIABILITIES> 929
<BONDS> 0
<COMMON> 29
0
1
<OTHER-SE> 1563
<TOTAL-LIABILITY-AND-EQUITY> 3021
<SALES> 1406
<TOTAL-REVENUES> 1548
<CGS> 1427
<TOTAL-COSTS> 1427
<OTHER-EXPENSES> 180
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 23
<INCOME-PRETAX> 0
<INCOME-TAX> 0
<INCOME-CONTINUING> (82)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (82)
<EPS-PRIMARY> (.03)
<EPS-DILUTED> 0
</TABLE>
