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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 June 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		(I.R.S. Employer
incorporation or organization)		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   ü   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)

 

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As of June, 2003, 1,952,294 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.

 

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CALCASIEU REAL ESTATE & OIL CO., INC.

 

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

 

TABLE OF CONTENTS

 

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

 

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

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

 

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CALCASIEU REAL ESTATE & OIL CO., INC.

 

PART I

 

Item  2.

Management’s Discussion and 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, which was derived from audited financial statements. 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 $198,683 net income for the second quarter of 2003 compared to $264,384 for the second quarter of 2002 and $251,777 for the first quarter of 2003. Net income for the first six months of 2003 was $450,460 compared to $354,375 for the first six months of 2002 or an increase of 27.1%. The differences were almost totally due to changes in revenues from oil and gas properties. The decrease in the current quarter from the second quarter of 2002 was due to lower mineral lease income and decrease in receipts from the Company’s small working interests in two wells in the Woodlawn field. The decrease in the current quarter from the first quarter of 2003 was due to decrease in receipts from the Woodlawn field and lower prices. The difference in general and administrative expenses for the three months ended June 30, 2003, and June 30, 2002, was due to the timing of the payment of the franchise tax.

 

Included in oil and gas income for the second quarter was $36,324, first payment from settlement of the Strohe suit. Total remaining payments are presently unknown.

 

The Board of Directors has decided to disburse as dividends all income that is determined unnecessary for prudent future operations. This was decided as a consequence of changes in the federal taxation of dividends.

 

 

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CALCASIEU REAL ESTATE & OIL CO., INC.

 

BALANCE SHEET

 

ASSETS

 

CURRENT ASSETS		June 30, 2003			December 31, 2002
Cash and cash equivalents		$	432,812		$	583,327
Accounts receivables			173,533			152,373
Prepaid income tax & expenses			22,518			64,793
Inventory, crops			0			10,125
Total Current Assets			628,863			810,618
SECURITIES AVAILABLE FOR SALE			1,499,478			1,361,123
PROPERTY AND EQUIPMENT,
Less accumulated depreciation, Depletion and amortization			89,896			91,949
Timber, less accumulated depletion			502,535			484,161
Land			3,904,419			3,904,851
Total Property			4,496,850			4,480,961
TOTAL		$	6,625,191		$	6,652,702

 

 

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CALCASIEU REAL ESTATE & OIL CO., INC.

 

BALANCE SHEET

 

LIABILITIES & STOCKHOLDERS’ EQUITY

 

CURRENT LIABILITIES		June 30, 2003			December 31, 2002
Trade payables and accrued expenses		$	5,184		$	8,863
Dividends payable			0			195,742
Current deferred tax liability, net			39,812			23,370
Total Current Liabilities			44,996			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			6,799,920			6,642,737
Accumulated other comprehensive income			41,228			16,563
			6,913,404			6,731,556
Less cost treasury stock (2003 – 147,706 shares;
2002 – 144,956 shares)			333,209			306,829
Total Equity			6,580,195			6,424,727
TOTAL		$	6,625,191		$	6,652,702

 

 

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CALCASIEU REAL ESTATE & OIL CO., INC.

 

STATEMENTS OF INCOME AND RETAINED EARNINGS

 

		Three Months Ended								Six Months Ended
		June 30, 2003				June 30, 2002				June 30, 2003				June 30, 2002
REVENUES
Income-primarily from oil and gas properties		$	300,246			$	387,640			$	678,743			$	525,653
Agriculture Income			43,750				13,754				102,036				77,335
Timber Income			19,091				51,596				32,514				77,090
TOTAL		$	363,087			$	452,990			$	813,293			$	680,078
COSTS AND EXPENSES
Forestry expenses		$	4,549			$	3,794			$	12,356			$	10,637
Agriculture expense			1,001				2,684				3,837				5,855
Oil and gas production costs			16,276				24,078				35,621				35,868
General and Administrative			63,535				48,728				130,810				130,219
Depreciation and depletion			2,330				2,629				4,376				3,954
TOTAL		$	87,691			$	81,913			$	187,000			$	186,533
OTHER INCOME (EXPENSE)
Interest		$	3,879			$	4,967			$	8,486			$	9,751
Dividends on Common Stock			7,916				8,562				15,833				11,266
TOTAL		$	11,795			$	13,529			$	24,319			$	21,017
INCOME OR LOSS BEFORE
INCOME TAXES AND
EXTRAORDINARY CREDITS		$	287,191			$	384,606			$	650,612			$	514,562
PROVISION FOR INCOME TAXES:
Current			88,508				120,222				200,152				160,187
NET INCOME OR (LOSS)		$	198,683			$	264,384			$	450,460			$	354,375
RETAINED EARNINGS, BEGINNING OF PERIOD			6,796,526				6,379,609				6,642,737				6,387,579
DIVIDENDS			(195,289	)			(89,717	)			(293,277	)			(187,678	)
RETAINED EARNINGS, END OF PERIOD		$	6,799,920			$	6,554,276			$	6,799,920			$	6,554,276
NET INCOME PER COMMON SHARE		$	.10			$	.13			$	.23			$	.18
OTHER COMPREHENSIVE INCOME
BEGINNING OF PERIOD		$	14,948			$	26,059			$	16,563			$	26,059
Unrealized Securities Gains (Losses)
Net of income taxes			26,280				5,100				24,665				5,100
OTHER COMPREHENSIVE INCOME
END OF PERIOD		$	41,228			$	31,159			$	41,228			$	31,159

 

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CALCASIEU REAL ESTATE & OIL CO., INC.

 

STATEMENTS OF CASH FLOWS

 

		Three Months Ended								Six Months Ended
		June 30, 2003				June 30, 2002				June 30, 2003				June 30, 2002
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (or Loss)		$	198,683			$	264,384			$	450,460			$	354,375
Non cash (income) expenses included in net income: Depreciation, depletion and amortization			2,330				2,629				4,376				3,954
CHANGE IN ASSETS AND LIABILITIES:
Increase) decrease in accounts receivable			138,109				(49,071	)			(21,160	)			(93,009	)
(Increase) decrease in inventory											10,125				11,042
(Increase) decrease in prepaid expenses and prepaid income taxes			(22,518	)			113,091				42,275				174,452
Increase (decrease) in trade payables			(100	)			5,916				(3,679	)			16,818
Increase (decrease) in income tax payable			(50,531	)			7,131				0				7,131
Net Cash Provided by Operating Activities		$	265,973			$	344,080			$	482,397			$	474,763
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of securities available for sale		$	(300,355	)		$	(103,266	)		$	(798,905	)		$	(1,003,199	)
Maturity of securities available for sale			1,000				0				701,657				0
Reforestation expenditure			0				(18,780	)			(20,000	)			(18,780	)
Land (purchase) or refund			432				(5,564	)			432				(12,737	)
Purchase of equipment			(348	)			(1,151	)			(697	)			(1,151	)
		$	(299,271	)		$	(128,761	)		$	(117,513	)		$	(1,035,867	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Dividends paid		$	(293,278	)		$	(89,699	)		$	(489,019	)		$	(285,424	)
Payments to acquire treasury stock			(26,380	)			0				(26,380	)			0
Net cash provided by (used in)
financing activities		$	(319,658	)		$	(89,699	)		$	(515,399	)		$	(285,424	)
Net increase (decrease) in cash & cash equivalents		$	(352,956	)		$	125,620			$	(150,515	)		$	(846,528	)
CASH AND CASH EQUIVALENTS:
Beginning			785,768				446,936				583,327				1,419,084
Ending		$	432,812			$	572,556			$	432,812			$	572,556

 

 

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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 August 6, 2003

 

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