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, 1996 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 September 30, 1996 the Registrant had outstanding 3,005,361
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 September 30, 1996
TABLE OF CONTENTS
PART I
Page
Item 1. Consolidated Financial Statements (Unaudited):
Balance Sheet as of September 30, 1996 . . . . . . . . . 3
Statement of operations for six months ended
September 30, 1996 and 1995 (Unaudited) . . . . . . . 4
Statement of operations for three months ended
September 30, 1996 and 1995 (Unaudited) . . . . . . . 5
Statement of cash flows for six months ended
September 30, 1996 and 1995 (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
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WESTAMERICA CORPORATION
CONSOLIDATED BALANCE SHEET
(Dollars in Thousands)
(Unaudited)
ASSETS September 30
1996
CURRENT ASSETS:
Cash and cash equivalents $ 308
Marketable securities 9
Accounts receivable:
Affiliates 194
Trade 204
Other 167
Notes receivable 81
Inventories 337
TOTAL CURRENT ASSETS 1,300
PROPERTY AND EQUIPMENT:
Oil and gas properties, successful
efforts method 4,335
Transportation, drilling and
other equipment 639
Land and buildings 950
Less accumulated depreciation,
depletion, and amortization (3,496)
2,428
OTHER ASSETS:
Goodwill, less accumulated amortization 379
Other assets 229
$ 4,336
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Notes payable and current portion
of long-term debt $ 422
Accounts payable 445
Accrued expenses 90
Prepaid drilling/completion contract 347
TOTAL CURRENT LIABILITIES 1,304
DEFERRED INCOME 27
LONG-TERM DEBT 166
NOTES PAYABLE TO STOCKHOLDER 166
STOCKHOLDERS' EQUITY:
Preferred stock authorized 1,000,000 shares, $.0l par
value; non voting convertible preferred stock, redeem-
able and cumulative, outstanding 100,000 shares. Non-
voting cumulative non-convertible series B preferred
stock, outstanding 97,700 shares. 2
Common stock, $.01 par value authorized 10,000,000
shares; issued 3,007,291, outstanding 3,005,361 shares 29
Additional paid-in capital 6,236
Deficit (3,592)
Treasury stock, at cost, 1,930 shares ( 2)
2,673
$ 4,336
See notes to consolidated financial statements
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WESTAMERICA CORPORATION
STATEMENTS OF OPERATIONS
(Dollars in Thousands)
(Unaudited)
Six Months Ended
September 30,
1996 1995
REVENUES:
Commission income $ 1,791 $ 1,164
Oil and gas sales 140 96
Drilling, Recompletion and Service Income 326 278
Interest and other 2 10
2,259 1,548
COSTS AND EXPENSES:
Brokerage commissions and clearing brokers
charges 1,084 766
Brokerage operating expenses 619 501
Oil and gas operations 277 160
Selling, general and administrative 134 137
Depreciation, depletion and
amortization 54 43
Interest 32 23
2,200 1,630
NET INCOME (LOSS) $ 59 $ (82)
Per Share:
Net Income (Loss) $ .02 $ (.03)
AVERAGE SHARES OUTSTANDING 2,986,442 2,936,490
See notes to consolidated financial statements.
<PAGE>
WESTAMERICA CORPORATION
STATEMENT OF OPERATIONS
(Dollars in Thousands)
(Unaudited)
Three Months Ended
September 30,
1996 1995
REVENUES:
Commission income $ 717 $ 664
Oil and gas sales 69 46
Oil field service income 203 245
Interest and other -0- 5
989 960
COSTS AND EXPENSES:
Brokerage commissions and clearing brokers
charges 416 424
Brokerage operating expenses 314 249
Oil and gas operations 145 78
Selling, general and administrative 72 83
Depreciation, depletion and
amortization 21 21
Interest 15 11
983 866
NET INCOME $ 6 $ 94
Per Share:
Net Income $ .002 $ .03
AVERAGE SHARES OUTSTANDING 3,005,361 2,936,490
See notes to consolidated financial statements.
<PAGE>
WESTAMERICA CORPORATION
SIX MONTHS ENDED SEPTEMBER 30, 1996
STATEMENT OF CASH FLOWS
(Dollars in Thousands)
(Unaudited)
Six Months Ended
September 30
1996 1995
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income (Loss) $ 59 $ (82)
Adjustments to reconcile net income (loss)
to net cash provided by (used in)
operating activities
Depreciation, depletion and amortization 54 43
Gain on sale of assets (31) (121)
Increase in receivables (35) (146)
Decrease (Increase) in inventory (107) 18
Decrease (Increase) in other assets 21 (27)
Increase (decrease) in accounts payable,
drilling and well completion advances
and accrued expenses (219) 89
Other (2) (5)
Net cash used in
operating activities (260) (231)
Cash Flows from Investing Activities
Purchase of marketable securities (59) -0-
Sale of marketable securities 121 -0-
Expenditures for property and equipment (556) (165)
Proceeds from sales of property
and equipment 42 161
Collection of notes receivable 8 19
Net cash provided by (used in)
investing activities (444) 15
Cash Flows from Financing Activities
Repayment of bank borrowing (44) (19)
Increase (Decrease) in notes payable
to stockholders 121 (5)
Dividends paid (90) (45)
Net cash used in
financing activities (13) (69)
Net decrease in cash and
cash equivalents (717) (285)
Cash and cash equivalents, beginning
of period 1,025 574
Cash and cash equivalents, end of period $ 308 $ 289
See noted to consolidated financial statements
<PAGE>
WESTAMERICA CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
THREE MONTHS ENDED SEPTEMBER 30, 1996
(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, 1996. 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, 1996 may not be
indicative of the results that may be expected for the year ending March
31, 1997.
<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 $366,000 to $1,300,000 at September
30, 1996, compared with $1,666,000 at June 30, 1996. Current liabilities
decreased to $1,304,000 at September 30, 1996, from $1,428,000 at June 30,
1996. The current ratio was 1.00:1 at September 30, 1996, compared to
1.17:1 at June 30, 1996. The decrease in liquidity resulted primarily from
expenditures of $287,000 for inventory and property and equipment during
the quarter ended September 30, 1996. The Registrant has sufficient
liquidity to provide for foreseeable business needs.
RESULTS OF OPERATIONS
Revenues for the three months ended September 30, 1996, were $989,000
compared to $960,000 for the three month period ended September 30, 1995.
Commission income increased $53,000 due to normal growth in business at the
Registrant's subsidiary, WestAmerica Investment Group, Inc. Oil and gas
operations contributed $279,000 compared to $291,000 for the three months
ended September 30, 1995. Costs and expenses were $983,000 for the three
months ended September 30, 1996, compared to $866,000 for the three month
period ended September 30, 1995. Brokerage operating expenses at
WestAmerica Investment Group, Inc. increased $65,000 to $314,000 during the
three month period ended September 30, 1996. The increase in operating
cost was primarily the result of increased expenditures for professional
services associated with recruiting and the installation of a new computer
and quotation system at WestAmerica Investment Group, Inc. Oil and gas
operating expenses increased $67,000 to $145,000 during the three months
ended September 30, 1996, primarily as a result of a generally higher level
of business activity in the oil and gas division. The Registrant's primary
sources of revenue during the three months ended September 30, 1996 were;
commissions and investment management fee income 72% and oil and gas
operations 28%. Net income decreased $88,000 to $6,000 for the three
months ended September 30, 1996, primarily due to the increased costs of
operations encountered in improving staff and systems in both the
investment and oil and gas businesses.
On September 27, 1996, the Registrant canceled the agreement entered into
with Casmyn Corporation on May 24, 1996, whereby WestAmerica Corporation
had issued 5,680,514 shares of it's restricted common stock to Casmyn
Corporation in exchange for 606,061 shares of restricted common stock of
Casmyn Corporation. The Registrant has returned the 606,061 shares of
Casmyn Corporation common stock to Casmyn Corporation and has received and
canceled the 5,680,514 shares of its common stock issued to Casmyn
Corporation.
<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, 1996 By: /s/ Edward R. Foraker
Edward R. Foraker
President and Director,
Principle Executive Officer,
Principle Financial Officer, and
Principle Accounting Officer
/s/ William F. Groszkruger
William F. Groszkruger, Director
/s/ Stewart Smith
Stewart Smith, Director
/s/ Michael C. Pryor
Michael C. Pryor, Director
/s/ Robert M. Coleman
Robert M. Coleman, Director
<PAGE>
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