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 June 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.
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WESTAMERICA CORPORATION
QUARTERLY REPORT ON FORM 10-QSB
For the Quarter ended June 30, 1995
TABLE OF CONTENTS
PART I
Page
Item 1. Consolidated Financial Statements (Unaudited):
Balance Sheets as of June 30, 1995 . . . . . . . . . . . 3
Statement of operations for quarter ended
June 30, 1995 and 1994 (Unaudited). . . . . . . . . . 4
Statement of cash flows for three months ended
June 30, 1995 and 1994 (Unaudited). . . . . . . . . . 5
Notes to Consolidated Financial Statements (Unaudited) . 6
Item 2. Management's Discussion and Analysis
of Financial Condition and Results of Operations . . . . 7
Signatures . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
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WESTAMERICA CORPORATION
CONSOLIDATED BALANCE SHEETS
(Dollars in Thousands)
(Unaudited)
ASSETS June 30,
1995
CURRENT ASSETS:
Cash and cash equivalents $ 390
Marketable securities, at market which approximates cost 13
Accounts receivable:
Trade 235
Other 167
Notes receivable - current 44
Inventories 158
TOTAL CURRENT ASSETS 1,007
PROPERTY AND EQUIPMENT:
Oil and gas properties, successful
efforts method 3,028
Transportation, drilling and
other equipment 567
Land and buildings 950
Less accumulated depreciation,
depletion, and amortization (3,358)
1,187
OTHER ASSETS:
Goodwill, less accumulated amortization 397
Other assets 282
$ 2,873
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Notes payable and current portion
of long-term debt $ 11
Accounts payable 202
Accrued expenses 76
Prepaid drilling contract 561
TOTAL CURRENT LIABILITIES 850
DEFERRED INCOME 37
LONG-TERM DEBT 370
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 5,580
Deficit (4,069)
Treasury stock, at cost, 19,808 shares (19)
1,522
$ 2,873
See notes to consolidated financial statements
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<PAGE> WESTAMERICA CORPORATION
STATEMENTS OF OPERATIONS
(Dollars in Thousands)
(Unaudited)
Three Months Ended
June 30,
1995 1994
REVENUES:
Commission income $ 500 $ 514
Oil and gas sales 50 50
Oil field service income 33 21
Interest and other 5 30
588 615
COSTS AND EXPENSES:
Brokerage commissions and clearing brokers
charges 342 291
Brokerage operating expenses 252 253
Oil and gas operations 82 68
Selling, general and administrative 55 63
Depreciation, depletion and
amortization 21 45
Interest 12 9
763 729
Loss from coninuing operations (176) (114)
Discontinued operations:
Loss from operations of discontinued
business -0- (14)
NET LOSS $ (176) $ (128)
Per Share:
Loss from continuing operations $ (.06) $ (.04)
Net loss $ (.06) $ (.05)
AVERAGE SHARES OUTSTANDING 2,936,490 2,637,828
See notes to consolidated financial statements.
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<PAGE> WESTAMERICA CORPORATION
THREE MONTHS ENDED JUNE 30, 1995
STATEMENT OF CASH FLOWS
(Dollars in Thousands)
(Unaudited)
1995 1994
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Loss $ (176) $ (128)
Adjustments to reconcile net loss to net
cash in operating activities:
Depreciation, depletion and amortization 21 45
(Increase) Decrease in receivables (62) (69)
(Increase) Decrease in inventory 50 ( 4)
(Increase) Decrease in other assets ( 1) (18)
(Decrease) increase in accounts payable
and contract drilling advances 6 ( 8)
Other -0- (16)
Total adjustments 14 (70)
Net cash provided by (used in) operating
activities (162) (198)
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from sale
of property and equipment 73 -0-
Purchase of property and equipment (50) -0-
Collection of notes receivable -0- 7
Net cash provided by investing activities 23 7
CASH FLOWS FROM FINANCING ACTIVITIES:
Repayment of borrowing (18) (12)
Proceeds from preferred stock offering -0- 87
Dividends paid (22) (20)
Decrease in notes payable to stockholders ( 5) -0-
Net cash provided by (used in)
financing activities (45) 55
NET INCREASE (DECREASE) IN CASH AND CASH
EQUIVALENTS (184) (136)
CASH AND CASH EQUIVALENTS, beginning of year 574 762
CASH AND CASH EQUIVALENTS, end of period $ 390 $ 626
See noted to consolidated financial statements
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<PAGE> WESTAMERICA CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
THREE MONTHS ENDED JUNE 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 three months ended June 30, 1995 may not be
indicative of the results that may be expected for the year ending March
31, 1996.
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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 $172,000 to $1,007,000 at June 30,
1995, compared with $1,179,000 at March 31, 1995. Current liabilities
increased $4,000 from $846,000 at March 31, 1995 to $850,000 at June 30,
1995. The current ratio was 1.18:1 at June 30, 1995 compared to 1.39:1 at
March 31, 1995. The decrease in liquidity resulted from the acquisition of
property and equipment which increased the Registrant's acreage under lease
from 14,789 gross acres on March 31, 1995 to 18,645 on June 30, 1995. The
Registrant has sufficient liquidity to provide for foreseeable business
needs, however it intends during the current fiscal year to raise capital
by offering privately a new issue of preferred stock and by selling to
investor IRS Code Section 29 tax credit qualified coal bed methane gas
wells.
RESULTS OF OPERATIONS
Revenues for the three months ended June 30, 1995 were $588,000 compared to
$615,000 for the three month period ended June 30, 1994. Oil and gas
operations contributed $83,000 compared to $71,000 for the three months
ended June 30, 1994. Commission and investment management fee income at
WestAmerica Investment Group, Inc. was $500,000 down $14,000 from the
$514,000 generated in the three months ended June 30, 1994. Costs and
expenses for the three month period ended June 30, 1995 were $763,000
compared to $729,000 for the three months ended June 30, 1994. The $34,000
increase in cost and expenses was due entirely to increased brokerage
commissions and clearing brokers charges. This increase was the result of
a change in WestAmerica Investment Group, Inc.'s business mix whereby
transactional business increased relative to financial planning and
insurance type business. The Registrant's primary sources of revenue
during the period ended June 30, 1995 were; commission and investment
management fee income 85%, oil and gas operations 14%, interest and other
1%. Six new registered representatives were added to WestAmerica
Investment Group, Inc.'s staff during the quarter June 30, 1995. This
increased revenue producing staff members 25% during the quarter ended June
30, 1995. These staff additions will result in additional revenues in
future quarters.
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<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: August 11, 1995 By: /s/ Edward R. Foraker
Edward R. Foraker
President and Director,
Principle Executive Officer,
Principle Financial Officer, and
Principle Accounting Officer
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