Table of Contents

---

 

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

---

 

FORM 10-Q

 

Quarterly report Under Section 13 or 15(d)

Of the Securities Exchange Act of 1934

 

For Quarter September 30, 2003

 

Commission file number 0-9669

 

---

 

CALCASIEU REAL ESTATE & OIL CO., INC.

(Exact name of registrant as specified in its charter)

 

Louisiana		72-0144530
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)

 

One Lakeside Plaza
Lake Charles, LA		70601
(Address of principal executive offices)		(Zip Code)

 

Registrant’s telephone number, including area code: (337) 494-4256

 

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 ¨

 

---

 

Securities registered pursuant to Section 12(b) for the Act:

 

Title of each class		Name of each exchange on which registered
None		Not applicable

 

Securities registered pursuant to Section 12(g) of the Act:

 

Common Stock, No Par Value

(Title of Class)

 

---

 

 

As of September 30, 2003, 1,944,745 shares of the registrant’s Common Stock, without par value, were issued and outstanding.

 

As of June 30, 2003, the total market value of all outstanding stock was $10,737,617.

 

---

 

---

Table of Contents

CALCASIEU REAL ESTATE & OIL CO., INC.

 

Form 10-Q for the Quarter ended September 30, 2003

 

TABLE OF CONTENTS

 

				Page No.
Part I		FINANCIAL INFORMATION
		Management’s Discussion and Analysis of Financial Condition and Results of Operations		3
		Balance Sheets September 30, 2003 and December 31, 2002		4-5
		Statements of Income and Retained Earnings Nine Months Ended September 30, 2003 and September 30, 2002		6
		Statements of Cash Flows Nine Months Ended September 30, 2003 and September 30, 2002		7
Part II		OTHER INFORMATION
		Item 6. Exhibits and Reports on Form 8-K		8-11
		Signatures		8-11

 

Reference is made to the Notes to Financial Statements contained in the Company’s Annual Report on Form 10-K

 

The information furnished is not in connection with any sale or offer for sale of, or solicitation of an offer to buy, any securities.

 

 

2

---

Table of Contents

CALCASIEU REAL ESTATE & OIL CO., INC.

 

PART I

 

Item 2.

Management’s Discussion a nd Analysis of Financial Condition and Results of Operations

 

The enclosed financial statements are unaudited with the exception of the Balance Sheet for December 31, 2002. The unaudited interim financial statements reflect all adjustments which are, in the opinion of management, necessary to a fair statement of the results for the interim periods presented. All such adjustments are of a normal recurring nature.

 

Management believes that the Company’s revenues will be sufficient to meet its existing needs and the needs for its anticipated future operations. Long-term trends will depend upon the ability of management to continue to find new production to replace the depletion of the Company’s present minerals as well as increasing the Company’s income from timber and agriculture. Management does not presently anticipate that the Company will incur material additional liabilities in its future operations. The Company participates in no off-balance sheet entities.

 

The Company earned $333,348 net income in the third quarter ended September 30, 2003, up 67.8% from the second quarter of 2003 and up 58.4% from the third quarter of 2002. This was due to increased oil and gas income from royalties and also leases. Oil and gas revenues for the first nine months of 2003 were up 50.5% over the same period in 2002 due to greater production and to higher prices. Timber income was down from 2002, however, a timber contract has be let for cuttings on one company tract and timber income should be higher in the fourth quarter.

 

The Company has applied for listing on the American Stock Exchange. All of the increase in general and administrative expenses is due to the application fee for listing. The Board of Directors adopted a policy of paying 7¢ per quarter per share in dividends as long as financially prudent.

 

 

3

---

Table of Contents

CALCASIEU REAL ESTATE & OIL CO., INC.

 

BALANC E SHEET

 

ASSETS

 

		September 30, 2003			December 31, 2002
CURRENT ASSETS
Cash and cash equivalents		$	1,136,867		$	583,327
Accounts receivables			219,320			152,373
Prepaid income tax & expenses			15,093			64,793
Inventory, crops			0			10,125
Total Current Assets			1,371,280			810,618
SECURITIES AVAILABLE FOR SALE			882,864			1,361,123
PROPERTY AND EQUIPMENT,
Less accumulated depreciation, Depletion and amortization			88,521			91,949
Timber, less accumulated depletion			517,065			484,161
Land			3,904,419			3,904,851
Total Property			4,510,005			4,480,961
TOTAL		$	6,764,149		$	6,652,702

 

 

4

---

Table of Contents

CALCASIEU REAL ESTATE & OIL CO., INC.

 

BALANCE SHEET

 

LIABILITIES & STOCKHOLDERS’ EQUITY

 

		September 30, 2003			December 31, 2002
CURRENT LIABILITIES
Trade payables and accrued expenses		$	5,881		$	8,863
Dividends payable			0			195,742
Current deferred tax liability, net			33,260			23,370
Total Current Liabilities			39,141			227,975
STOCKHOLDER’S EQUITY
Common Stock, no par value 3,000,000 shares authorized; 2,100,000 shares issued		$	72,256		$	72,256
Retained earnings			6,996,872			6,642,737
Accumulated other comprehensive income			31,396			16,563
			7,100,524			6,731,556
Less cost treasury stock (2003 – 155,255 shares; 2002 – 144,956 shares)			375,516			306,829
Total Equity			6,725,008			6,424,727
TOTAL		$	6,764,149		$	6,652,702

 

 

5

---

Table of Contents

CALCASIEU REAL ESTATE & OIL CO., INC.

 

STATEMENTS OF INCOME AND RETAINED EARNINGS

 

		Three Months Ended								Nine Months Ended
		September 30, 2003				September 30, 2002				September 30, 2003				September 30, 2002
REVENUES
Income-primarily from oil and gas properties		$	525,152			$	274,455			$	1,203,895			$	800,108
Agriculture Income			41,803				61,355				143,839				138,690
Timber Income			19,714				35,427				52,228				112,517
TOTAL		$	586,669			$	371,237			$	1,399,962			$	1,051,315
COSTS AND EXPENSES
Oil and gas production costs		$	26,256			$	17,691			$	61,877			$	53,559
Agriculture expense			6,552				2,444				10,389				8,299
Forestry expenses			13,441				27,137				25,797				37,774
General and Administrative			70,263				36,307				201,073				166,526
Depreciation and depletion			2,360				1,822				6,736				5,776
TOTAL		$	118,872			$	85,401			$	305,872			$	271,934
OTHER INCOME (EXPENSE)
Interest Income		$	3,830			$	7,902			$	12,316			$	17,653
Dividends			9,286				11,498				25,119				22,764
TOTAL		$	13,116			$	19,400			$	37,435			$	40,417
INCOME OR LOSS BEFORE INCOME TAXES AND EXTRAORDINARY CREDITS		$	480,913			$	305,236			$	1,131,525			$	819,798
PROVISION FOR INCOME TAXES:
Current			147,565				94,785				347,717				254,972
NET INCOME OR (LOSS)		$	333,348			$	210,451			$	783,808			$	564,826
RETAINED EARNINGS, BEGINNING OF PERIOD			6,799,920				6,554,276				6,642,737				6,387,579
DIVIDENDS			(136,396	)			(97,991	)			(429,673	)			(285,669	)
RETAINED EARNINGS, END OF PERIOD		$	6,996,872			$	6,666,736			$	6,996,872			$	6,666,736
NET INCOME PER COMMON SHARE		$	.17			$	.11			$	.40			$	.29

 

OTHER COMPREHENSIVE INCOME

 

		Three Months Ended								Nine Months Ended
		September 30, 2003				September 30, 2002				September 30, 2003			September 30, 2002
Other comprehensive income
Beginning of Period		$	41,228			$	31,159			$	16,563		$	26,059
Unrealized gain (loss) on securities available for sale, net of taxes			(9,832	)			(25,653	)			14,833			(20,553	)
Other comprehensive income
End of Period		$	31,396			$	5,506			$	31,396		$	5,506

 

6

---

Table of Contents

CALCASIEU REAL ESTATE & OIL CO., INC.

 

STATEMENTS OF CASH FLOWS

 

		Nine Months Ended
		September 30, 2003				September 30, 2002
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (or Loss)		$	783,808			$	564,826
Non cash (income) expenses included in net income:
Depreciation, depletion and amortization			6,736				5,776
CHANGE IN ASSETS AND LIABILITIES:
(Increase) decrease in accounts receivable			(66,947	)			(106,168	)
(Increase) decrease in inventory			10,125				11,042
(Increase) decrease in prepaid expenses			3,680				3,309
(Increase) decrease in prepaid income taxes			46,020				144,999
Increase (decrease) in trade payables			(2,982	)			7,462
Net Cash Provided by Operating Activities		$	780,440			$	631,246
CASH FLOWS FROM INVESTING ACTIVITIES:
Maturity of securities available for sale		$	1,301,887			$	694,073
Purchase of securities available for sale			(798,905	)			(1,695,365	)
Purchase of Property and equipment and reforestation			(36,212	)			(19,931	)
Land (purchase) or refund			432				(12,737	)
Net Cash Provided (used in) Investing Activities		$	467,202			$	(1,033,960	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Dividends paid		$	(625,415	)		$	(481,406	)
Payments to acquire treasury stock			(68,687	)			0
Net cash provided by (used in) financing activities		$	(694,102	)		$	(481,406	)
Net increase (decrease) in cash & cash equivalents		$	553,540			$	(884,120	)
CASH AND CASH EQUIVALENTS:
Beginning			583,327				1,419,084
Ending		$	1,136,867			$	534,964

 

 

7

---

Table of Contents

CALCASIEU REAL ESTATE & OIL CO., INC.

 

PART II OTHER INFORMATION

 

Item 6.

EXHIBITS AND REPORTS ON FORM 8-K.

 

(A)

Exhibits

 

Exhibit 31.1

 

Exhibit 31.2

 

Exhibit 32

 

(B)

Reports on Form 8-K

 

None

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the under-signed thereunto duly authorized.

 

 

 

Dated: October 28, 2003

 

8