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, 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 December 31, 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 December 31, 1996
TABLE OF CONTENTS
PART I
Page
Item 1. Consolidated Financial Statements (Unaudited):
Balance Sheet as of December 31, 1996. . . . . . . . . . 3
Statement of operations for nine months ended
December 31, 1996 and 1995 (Unaudited) . . . . .. . . 4
Statement of operations for three months ended
December 31, 1996 and 1995 (Unaudited). . . . . . . . 5
Statement of cash flows for nine months ended
December 31, 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
<PAGE>
WESTAMERICA CORPORATION
CONSOLIDATED BALANCE SHEET
(Dollars in Thousands)
(Unaudited)
ASSETS December 31
1996
CURRENT ASSETS:
Cash and cash equivalents $ 478
Marketable securities 9
Accounts receivable:
Affiliates 236
Trade 354
Other 130
Notes receivable 89
Inventories 391
TOTAL CURRENT ASSETS 1,687
PROPERTY AND EQUIPMENT:
Oil and gas properties, successful
efforts method 4,435
Transportation, drilling and
other equipment 663
Land and buildings 950
Less accumulated depreciation,
depletion, and amortization (3,516)
2,532
OTHER ASSETS:
Goodwill, less accumulated amortization 376
Other assets 246
$ 4,841
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Notes payable and current portion
of long-term debt $ 404
Accounts payable 489
Accrued expenses 132
Prepaid drilling/completion contract 611
TOTAL CURRENT LIABILITIES 1,636
DEFERRED INCOME 27
LONG-TERM DEBT 183
NOTES PAYABLE TO STOCKHOLDER 197
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 116,511 shares. 1
Common stock, $.01 par value authorized 10,000,000
shares; issued 3,007,291, outstanding 3,005,361 shares 30
Additional paid-in capital 6,337
Deficit (3,568)
Treasury stock, at cost, 1,930 shares ( 2)
2,798
$ 4,841
See notes to consolidated financial statements
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WESTAMERICA CORPORATION
STATEMENTS OF OPERATIONS
(Dollars in Thousands)
(Unaudited)
Nine Months Ended
December 31,
1996 1995
REVENUES:
Commission income $ 2,596 $ 1,998
Oil and gas sales 237 136
Drilling, Recompletion and Service Income 584 866
Interest and other 4 1
3,421 3,001
COSTS AND EXPENSES:
Brokerage commissions and clearing brokers
charges 1,601 1,279
Brokerage operating expenses 915 780
Oil and gas operations 424 566
Selling, general and administrative 266 230
Depreciation, depletion and
amortization 85 62
Interest 47 42
3,338 2,959
NET INCOME (LOSS) $ 83 $ 42
Per Share:
Net Income (Loss) $ .02 $ .01
AVERAGE SHARES OUTSTANDING 2,995,911 2,936,490
See notes to consolidated financial statements.
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WESTAMERICA CORPORATION
STATEMENT OF OPERATIONS
(Dollars in Thousands)
(Unaudited)
Three Months Ended
December 31,
1996 1995
REVENUES:
Commission income $ 805 $ 834
Oil and gas sales 97 40
Oil field service income 258 578
Interest and other 2 1
1,162 1,453
COSTS AND EXPENSES:
Brokerage commissions and clearing brokers
charges 517 513
Brokerage operating expenses 296 279
Oil and gas operations 147 406
Selling, general and administrative 132 93
Depreciation, depletion and
amortization 31 19
Interest 15 19
1,138 1,329
NET INCOME $ 24 $ 124
Per Share:
Net Income $ .008 $ .04
AVERAGE SHARES OUTSTANDING 2,995,911 2,936,490
See notes to consolidated financial statements.
<PAGE>
WESTAMERICA CORPORATION
NINE MONTHS ENDED DECEMBER 31, 1996
STATEMENT OF CASH FLOWS
(Dollars in Thousands)
(Unaudited)
Nine Months Ended
December 31
1996 1995
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income (Loss) $ 83 $ 42
Adjustments to reconcile net income (loss)
to net cash provided by (used in)
operating activities
Depreciation, depletion and amortization 96 76
Gain on sale of assets (59) (226)
Increase in receivables (191) (208)
Decrease (Increase) in inventory (161) 146
Decrease (Increase) in other assets 4 (65)
Increase in accounts payable,
drilling and well completion advances
and accrued expenses 131 430
Other (2) 51
Net cash provided by (used in)
operating activities (99) 246
Cash Flows from Investing Activities
Purchase of marketable securities (59) -0-
Sale of marketable securities 121 -0-
Expenditures for property and equipment (706) (507)
Proceeds from sales of property
and equipment 78 266
Collection of notes receivable -0- 31
Net cash used in
investing activities (566) (210)
Cash Flows from Financing Activities
Repayment of bank borrowing (75) (4)
Increase in bank borrowing 30 -0-
Increase (Decrease) in notes payable
to stockholders 152 (5)
Proceeds from preferred stock offering 147 691
Dividends paid (136) (72)
Net cash provided by
financing activities 118 610
Net decrease in cash and
cash equivalents (547) 646
Cash and cash equivalents, beginning
of period 1,025 574
Cash and cash equivalents, end of period $ 478 $ 1,220
See noted to consolidated financial statements
<PAGE>
WESTAMERICA CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
NINE MONTHS ENDED DECEMBER 31, 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 nine months ended December 31, 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 increased $387,000 to $1,687,000 at December
31, 1996, compared with $1,300,000 at September 30, 1996. Current
liabilities increased to $1,636,000 at December 31, 1996, from $1,304,000
at September 30, 1996. The current ratio was 1.04:1 at December 31, 1996,
compared to 1.00:1 at September 30, 1996. The decrease in liquidity
resulted primarily from expenditures of $154,000 for inventory and property
and equipment during the quarter ended December 31, 1996. The Registrant
has sufficient liquidity to provide for foreseeable business needs.
RESULTS OF OPERATIONS
Revenues for the three months ended December 31, 1996, were $1,162,000
compared to $1,453,000 for the three month period ended December 31, 1995.
Commission income decreased $29,000 at the Registrant's subsidiary,
WestAmerica Investment Group, Inc. Revenue from oil and gas operations
decreased from $618,000 to $355,000, primarily due to recognizing the
revenue from the completion of a drilling contract in the three months
ended December 31, 1995. Costs and expenses were $1,138,000 for the three
months ended December 31, 1996, compared to $1,329,000 for the three month
period ended December 31, 1995. Brokerage operating expenses at
WestAmerica Investment Group, Inc. increased $4,000 to $517,000 during the
three month period ended December 31, 1996. Oil and gas operating expenses
increased $17,000 to $296,000 during the three months ended December 31,
1996. The Registrant's primary sources of revenue during the three months
ended December 31, 1996 were; commissions and investment management fee
income 69% and oil and gas operations 31%. Net income decreased from
$124,000 to $24,000 as a result of income generated from the recognition of
a drilling contract during the quarter ended December 31, 1995.
<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: Febaury 13, 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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