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 December 31, 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 December 31, 1995 the Registrant had outstanding 2,936,490
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 December 31, 1995
TABLE OF CONTENTS
PART I
Page
Item 1. Consolidated Financial Statements (Unaudited):
Balance Sheets as of December 31, 1995 . . . . . . . . . 3
Statement of operations for three months ended
December 31, 1995 and 1994 (Unaudited). . . . . . . . 4
Statement of operations for nine months ended
December 31, 1995 and 1994 (Unaudited). . . . . . . . 5
Statement of cash flows for nine months ended
December 31, 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
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WESTAMERICA CORPORATION
CONSOLIDATED BALANCE SHEETS
(Dollars in Thousands)
(Unaudited)
ASSETS December 31
1995
CURRENT ASSETS:
Cash and cash equivalents $ 1,220
Marketable securities, at market which approximates cost 13
Accounts receivable:
Trade 419
Other 129
Notes receivable - current 13
Inventories 62
TOTAL CURRENT ASSETS 1,856
PROPERTY AND EQUIPMENT:
Oil and gas properties, successful
efforts method 3,479
Transportation, drilling and
other equipment 594
Land and buildings 950
Less accumulated depreciation,
depletion, and amortization (3,391)
1,632
OTHER ASSETS:
Goodwill, less accumulated amortization 387
Other assets 346
$ 4,221
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Notes payable and current portion
of long-term debt $ 4
Accounts payable 581
Accrued expenses 125
Prepaid drilling/completion contract 557
TOTAL CURRENT LIABILITIES 1,267
DEFERRED INCOME 88
LONG-TERM DEBT 391
NOTES PAYABLE TO STOCKHOLDER 94
STOCKHOLDERS' EQUITY:
Preferred stock authorized 1,000,000 shares, $.0l par
value; non voting convertable preferred stock, redeem-
able and cumulative, outstanding 100,000 shares. Non-
voting cumulative non-convertable series B preferred
stock, outstanding 82,500 shares. 2
Common stock, $.01 par value authorized 10,000,000
shares; issued 2,936,490, outstanding 2,916,782 shares 29
Additional paid-in capital 6,220
Deficit (3,851)
Treasury stock, at cost, 19,808 shares (19)
2,379
$ 4,221
See notes to consolidated financial statements
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WESTAMERICA CORPORATION
STATEMENTS OF OPERATIONS
(Dollars in Thousands)
(Unaudited)
Three Months Ended
December 31,
1995 1994
REVENUES:
Commission income $ 834 $ 512
Oil and gas sales 40 54
Oil field service income 472 19
Interest and other 107 22
1,453 607
COSTS AND EXPENSES:
Brokerage commissions and clearing brokers
charges 513 276
Brokerage operating expenses 279 251
Oil and gas operations 406 71
Selling, general and administrative 93 54
Depreciation, depletion and
amortization 19 23
Interest 19 11
1,329 686
NET INCOME (LOSS) $ 124 $ (79)
Per Share:
Net Income (Loss) $ .04 $ (.02)
AVERAGE SHARES OUTSTANDING 2,936,490 2,936,940
See notes to consolidated financial statements.
<PAGE>
WESTAMERICA CORPORATION
STATEMENTS OF OPERATIONS
(Dollars in Thousands)
(Unaudited)
Nine Months Ended
December 31,
1995 1994
REVENUES:
Commission income $ 1,998 $ 1,553
Oil and gas sales 136 154
Oil field service income 618 57
Interest and other 249 104
3,001 1,868
COSTS AND EXPENSES:
Brokerage commissions and clearing brokers
charges 1,279 835
Brokerage operating expenses 780 769
Oil and gas operations 566 204
Selling, general and administrative 230 175
Depreciation, depletion and
amortization 62 105
Interest 42 30
2,959 2,118
NET INCOME (LOSS) $ 42 $ (250)
Per Share:
Net Income (Loss) $ .01 $ (.08)
AVERAGE SHARES OUTSTANDING 2,936,490 2,936,940
See notes to consolidated financial statements.
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WESTAMERICA CORPORATION
NINE MONTHS ENDED DECEMBER 30, 1995
STATEMENT OF CASH FLOWS
(Dollars in Thousands)
(Unaudited)
Nine Months Ended
December 31
1995 1994
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income $ 42 $ (250)
Adjustments to reconcile net loss to net
cash in operating activities:
Depreciation, depletion and amortization 76 105
Gain on sale of assets (226) -0-
(Increase) Decrease in receivables (208) (130)
(Increase) Decrease in inventory 146 (7)
(Increase) Decrease in other assets (65) (100)
(Decrease) increase in accounts payable
and contract drilling advances 430 717
Other 51 (15)
Total adjustments 204 570
Net cash provided by (used in) operating
activities 246 320
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from sale
of property and equipment 266 -0-
Purchase of property and equipment (507) (264)
Purchase of marketable securities -0- (15)
Collection of notes receivable 31 -0-
Net cash provided by investing activities (210) (279)
CASH FLOWS FROM FINANCING ACTIVITIES:
Increase (decrease) borrowing (4) 70
Proceeds from preferred stock offering 691 87
Dividends paid (72) (65)
Decrease in notes payable to stockholders ( 5) ( 4)
Net cash provided by (used in)
financing activities 610 88
NET INCREASE (DECREASE) IN CASH AND CASH
EQUIVALENTS 646 129
CASH AND CASH EQUIVALENTS, beginning of year 574 762
CASH AND CASH EQUIVALENTS, end of period $ 1,220 $ 891
See noted to consolidated financial statements
<PAGE>
WESTAMERICA CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
NINE MONTHS ENDED DECEMBER 31, 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 nine months ended December 31, 1995 may not be
indicative of the results that may be expected for the year ending March
31, 1996.
<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 increased $853,000 to $1,856,000 at December
31, 1995, compared with $1,003,000 at September 30, 1995. Current
liabilities increased from $929,000 at September 30, 1995 to $1,267,000 at
December 31, 1995. The current ratio was 1.46:1 at December 31, 1995
compared to 1.08:1 at September 30, 1995. The increase in liquidity
resulted primarily from cash received from an offering of non convertible
Series B Preferred Stock and from well recompletion contracts entered into
during the three months ended December 31, 1995. Net proceeds from the
preferred offering during the three months ended December 31, 1995 totaled
$691,000. The Registrant has sufficient liquidity to provide for
foreseeable business needs.
RESULTS OF OPERATIONS
Revenues for the three months ended December 31, 1995 were $1,453,000
compared to $607,000 for the three month period ended December 31, 1995.
Commission income increased $322,000 due to an increased number of
investment representatives being employed by the company's subsidiary,
WestAmerica Investment Group, Inc. and a generally favorable market
environment for securities. Oil and gas activities contributed $512,000
compared to $73,000 for the three months ended December 31, 1994. The
$439,000 increase in revenue from oil and gas activities was primarily due
to recognizing the completion of a $760,000 drilling contract entered into
with Oklahoma Resources General Partnership on December 31, 1994. Costs
and expenses were $1,329,000 for the three month period ended December 31,
1995 compared to $686,000 for the three month period ended December 31,
1994. Brokerage commissions and clearing broker charges increased $237,000
from $276,000 in the period ended December 31, 1994 to $513,000 in the
period ended December 31, 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. Costs associated with oil and gas activities increased
$335,000 from $71,000 in the period ended December 31, 1994, to $406,000 in
the period ended December 31, 1995 primarily as a result of costs
associated with completing drilling and completion contracts. The
Registrant's primary sources of revenue during the period December 31, 1995
were; commission and investment management fee income 57%, oil and gas
operations 35% and other income 7%. Net income from operations increased
from a loss of $79,000 for the three months ended December 31, 1994 to
income of $124,000 for the three months ended December 31, 1995. This
change to profitability was primarily the result of completing drilling and
recompletion contracts and the Registrants financial services subsidiary
earning $48,000 during the three month period ended December 31, 1995
compared to posting a loss of $11,000 during the three month period ended
December 31, 1994.
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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: February 14, 1996 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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