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, 1997 Commission File No. 0-17538
WESTAMERICA CORPORATION
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(Exact name of Registrant as specified in its charter)
Oklahoma 73-1322822
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(State or other jurisdiction of (I.R.S. Employer
incorporated or organization) Identification No.)
3300 S.W. 34th Avenue, Suite 148, Ocala, Florida 34474
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code:(352) 861-0012
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. Yes [ X ] No [ ]
As of September 30, 1997, the Registrant had outstanding 11,237,660
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, 1997
TABLE OF CONTENTS
PART I
Item 1. Consolidated Financial Statements (Unaudited)
Balance Sheet as of September 30, 1997
Statement of operations for three months ended
September 30,1997 and 1996 (Unaudited)
Statement of operations for six months ended
September 30, 1997 and 1996 (Unaudited)
Statement of cash flows for six months ended
September 30, 1997 and 1996 (Unaudited)
Notes of Consolidated Financial Statements(Unaudited)
Item 2. Management's Discussion and Analysis
of Financial Condition and Results of Operations
Signatures
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<TABLE>
<CAPTION>
WESTAMERICA CORPORATION
CONSOLIDATED BALANCE SHEET
(Dollars in Thousands)
(Unaudited)
September 30
ASSETS 1997
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<S> <C>
CURRENT ASSETS:
Cash and cash equivalents .................................. $ 127
Investment .................................................. 115
Accounts receivable:
Oil and gas partnership ............................. 313
Trade ............................................... 95
Other ............................................... 58
Notes receivable ........................................... 89
Inventories ................................................ 315
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TOTAL CURRENT ASSETS ................................ 1,112
PROPERTY AND EQUIPMENT:
Oil and gas properties, successful
efforts method ........................................... 4,981
Transportation, drilling and
other equipment .......................................... 601
Land and buildings ......................................... 994
Less: accumulated depreciation,
depletion, and amortization .............................. (3,775)
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2,801
OTHER ASSETS:
Other assets ............................................... 271
Long-term Investment ....................................... 235
TOTAL ASSETS ............................................... $ 4,419
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LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Notes payable and current portion
of long-term debt ................................... $ 94
Accounts payable and accrued expenses ...................... 247
Prepaid drilling and well completion contract .............. 637
TOTAL CURRENT LIABILITIES ........................... 978
DEFERRED INCOME .............................................. 27
LONG-TERM DEBT ............................................... 499
</TABLE>
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<TABLE>
<CAPTION>
WESTAMERICA CORPORATION
CONSOLIDATED BALANCE SHEET
(Dollars in Thousands)
(Unaudited)
(continued)
September 30
1997
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<S> <C>
STOCKHOLDERS' EQUITY:
Preferred stock authorized 1,000,000 shares, $.01 par
value; non-voting convertible preferred stock, redeemable
and cumulative, outstanding 100,000
shares. Nonvoting cumulative non-convertible series B preferred
stock, outstanding 121,700 shares ............................. 2
Common stock, $.01 par value authorized 50,000,000
shares; issued and outstanding 11,237,660 shares ............... 31
Treasury stock, at cost, 1,930 shares ........................... (2)
Additional paid-in capital ...................................... 6,964
Retained Earnings(Deficit) ...................................... (4,080)
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TOTAL EQUITY ............................................. 2,915
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TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY ...................... $ 4,419
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</TABLE>
See notes to consolidated financial statements
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<TABLE>
<CAPTION>
WESTAMERICA CORPORATION
STATEMENT OF OPERATIONS
(Dollars in Thousands)
(Unaudited)
Three Months Ended
SEPTEMBER 30,
-------------------------------
1997 1996
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<S> <C> <C>
REVENUES:
Oil and gas sales ........................ $ 88 $ 80
Drilling, recompletion
and service income ..................... 82 49
Lease sales .............................. 131 146
Interest and other ....................... 6 -0-
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307 275
COSTS AND EXPENSES:
Oil and gas operations ................... 128 153
Selling, general and administrative ...... 406 72
Depreciation, depletion and
amortization ........................... 49 17
Interest ................................. 20 14
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603 256
Net Income(Loss)from continuing operations . (296) 19
Loss from operations of
discontinued business .......... -0- (13)
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NET INCOME(LOSS) ........................... (296) 6
Less: Preferred stock dividend ............. (50) (45)
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Net Income (Loss) .......................... $ (346) $ (39)
============ ============
Net Income (Loss) applicable
to common stock ........................... $ (.03) $ (.00)
============ ============
AVERAGE SHARES OUTSTANDING ................. 11,237,660 2,986,442
============ ============
</TABLE>
See notes to consolidated financial statements.
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<TABLE>
<CAPTION>
WESTAMERICA CORPORATION
STATEMENT OF OPERATIONS
(Dollars in Thousands)
(Unaudited)
Six Months Ended
SEPTEMBER 30,
1997 1996
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REVENUES:
<S> <C> <C>
Oil and gas sales ........................ $ 111 $ 140
Drilling, recompletion
and service income ..................... 149 180
Lease sales .............................. 131 146
Interest and other ....................... 15 2
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406 468
COSTS AND EXPENSES:
Oil and gas operations ................... 243 277
Selling, general and administrative ...... 495 134
Depreciation, depletion and
amortization ........................... 78 47
Interest ................................. 34 31
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850 489
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Net Income(loss)from continuing operations . (444) (21)
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Income from operations of
discontinued business ........... -0- 80
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NET INCOME(LOSS) ........................... (444) 59
Less: Preferred stock dividend ............. (100) (92)
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Net Income (Loss) .......................... $ (544) $ (33)
============ ============
Net Income (Loss) applicable
to common stock ........................... $ (.04) $ (.02)
============ ============
AVERAGE SHARES OUTSTANDING ................. 11,237,660 2,986,442
============ ============
</TABLE>
See notes to consolidated financial statements.
<PAGE>
<TABLE>
<CAPTION>
WESTAMERICA CORPORATION
SIX MONTHS ENDED SEPTEMBER 30, 1997
STATEMENT OF CASH FLOWS
(Dollars in Thousands)
(Unaudited)
Six Months Ended
SEPTEMBER 30,
1997 1996
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<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income (Loss) ................................. $ (444) $ 59
Adjustments to reconcile net income (loss)
to net cash used in operating activities
Depreciation, depletion and amortization ....... 78 54
Gain on sale of assets ......................... (131) (31)
Decrease (Increase) in receivables ............. 26 (35)
Decrease (Increase) in inventory ............... (51) (107)
Decrease (Increase) in other assets ............ (290) 21
Decrease in accounts payable,
drilling and well completion advances
and accrued expenses ..................... 63 (219)
Other .......................................... -0- (2)
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Net cash used in operating activities .............. (749) (260)
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Cash Flows from Investing Activities
Purchase of marketable securities ................ (115) (59)
Sale of marketable securities .................... -- 121
Expenditures for property and equipment .......... (311) (556)
Proceeds from discontinued business .............. 443 -0-
Proceeds from sales of property
and equipment .................................. 145 50
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Net cash used provided by (used in)
investing activities ............................. 162 (444)
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</TABLE>
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<TABLE>
<CAPTION>
WESTAMERICA CORPORATION
SIX MONTHS ENDED SEPTEMBER 30, 1997
STATEMENT OF CASH FLOWS
(Dollars in Thousands)
(Unaudited)
(continued)
Six Months Ended
SEPTEMBER 30,
1997 1996
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<S> <C> <C>
Cash Flows from Financing Activities
Repayment of bank borrowing .................... (36) (44)
Increase in bank borrowing ..................... 14 -0-
Increase (Decrease) in notes payable
to stockholders .......................... (73) 121
Additional paid-in capital ..................... 631 -0-
Purchase of preferred stock .................... (14) -0-
Dividends paid ................................. (100) (90)
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Net cash used in
financing activities ............................. 422 (13)
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Net decrease in cash and
cash equivalents ................................. (165) (717)
Cash and cash equivalents, beginning
of period ........................................ 292 1,025
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Cash and cash equivalents, end of period ........... $ 127 $ 308
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</TABLE>
See notes to consolidated financial statements.
<PAGE>
WESTAMERICA CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
THREE MONTHS ENDED SEPTEMBER 30, 1997
(Unaudited)
Item 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, 1997. 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 September
30,1997 may not be indicative of the results that may be expected for the year
ending March 31, 1998.
<PAGE>
Item 2/3. 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 $200,000 to $1,112,000 at September
30,1997, compared to $912,000 at June 30, 1997. Current liabilities increased
$313,000 to $978,000 at September 30, 1997, compared to $665,000 at June 30,
1997. The current ratio was 1.13:7 at September 30, 1997, compared to 1.30:1 at
June 30, 1997. The increase in current liabilities and decrease in the current
ratio was primarily the result of an increase in prepaid drilling contract
balances which were $637,000 at September 30, 1997, compared to $402,000 at June
30, 1997, an increase of $235,000 and accrued payroll of $70,000. The Registrant
has sufficient liquidity to provide for foreseeable business needs.
RESULTS OF OPERATIONS
Revenues for the three months ended September 30, 1997, were $307,000 compared
to oil and gas operating revenues of $275,000 for the three months ended
September 30, 1996. The $32,000 increase in revenue was due to an increase in
drilling, recompletion and service income.
Expenses attributable to oil and gas operations increased from $256,000 for the
three months ended September 30, 1996, to $603,000 for the three months ended
September 30, 1997. Costs and Expenses increased primarily due to a $289,000
advance for the preparation and development of the company's entry into the
destination/leisure resort business, and a $45,000 increase at the oil and gas
operations, which increased the selling, general and administrative expenses,
and a $32,000 increase in depreciation, depletion and amortization. Net gain
from oil and gas operations decreased from $19,000 for the three months ended
September 30, 1996, to a net loss of $7,000 for the three months ended September
30, 1997. Sales of natural gas were curtailed during July 1997 due to a gas
curtailment at the Company which purchases over 95% of the Registrant's gas
production.
PART II
OTHER INFORMATION
Item 4
On August 13, 1997, WestAmerica Corporation purchased 350 shares of Series A
Preferred stock at a purchase price of $1,000 per share for a total of $350,000
of Madison Capital Markets Corporation, ("Madison"), (formerly Wolf A. Popper,
Inc.), a 40 year old NASD Licensed Broker/Dealer. Additionally $100,000 was paid
by WestAmerica Corporation as a investment banking fee to Madison.
Item 5
For the period August 11, 1997 through September 30, 1997, Capital Investment
Partners, Inc., ("Capital") a Delaware Corporation, paid into equity the sum of
$631,000 which is a partial payment towards Capital's commitment to cause the
delivery of up to $4,000,000 to the Registrant by year end.
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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.
WESTAMERICA CORPORATION
DATE: November 7, 1997 By: /s/Daniel M. Boyar
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Daniel M. Boyar
Chairman, President, and
Chief (Principal)
Executive Officer,
/s/Douglas W. Moore
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Douglas W. Moore
Chief (Principal)
Financial Officer, and
Principal Accounting Officer
