Business Context and Reporting Period
Company: Calcasieu Real Estate & Oil Co., Inc. (Note: Metadata referenced "CKX Lands, Inc." but the filing text identifies Calcasieu Real Estate & Oil Co., Inc.)
Filing Type: Form 10-Q
Period Ended: September 30, 2000
Business Overview: The company operates in oil and gas production, agriculture, and timber. As of September 30, 2000, 1,966,044 shares of common stock were issued and outstanding.
Key Financial Metrics (Nine Months Ended Sept 30, 2000)
| Metric | 2000 (9 Months) | 1999 (9 Months) |
|---|---|---|
| Total Revenue | $1,712,130 | $1,845,006 |
| Net Income | $1,003,000 | $1,084,830 |
| Net Income Per Share | $0.51 | $0.55 |
| Operating Cash Flow | $1,074,189 | $1,241,918 |
| Cash and Equivalents (Ending) | $927,898 | $505,549 |
| Total Assets | $5,723,671 | $5,346,128 |
| Total Liabilities | $437,686 | $454,039 |
| Shareholders' Equity | $5,597,329 | $4,580,745 |
Note: Long-term debt of $311,344 is listed under liabilities for 2000; no long-term debt was reported for 1999.
Material Changes vs. Prior Period
- Net Income Decline: Net income for the nine months ended September 30, 2000, decreased by 7.54% compared to the same period in 1999. For the quarter alone, net income dropped 51.39%.
- Revenue Drivers:
- Oil & Gas: Revenue declined due to decreased production from the North English Bayou Field, despite rising oil and gas prices.
- Agriculture: Net income increased by $56,361.
- Timber: Net income decreased by $139,593.
- Liquidity: Cash and cash equivalents increased significantly from $505,549 to $927,898, driven by strong operating cash flows and a reduction in accounts receivable.
- Investments: The company purchased $279,257 in securities available for sale during the period.
Outlook, Risks, and Management Commentary
- Management Outlook: Management believes current revenues are sufficient to meet existing and anticipated future needs.
- Long-Term Strategy: Future trends depend on replacing depleting mineral production with new finds and increasing income from timber and agriculture.
- Risks: The primary risk identified is the depletion of current mineral reserves (specifically the North English Bayou Field) without immediate replacement production.
- Dividends: The company paid $295,737 in dividends during the nine-month period.
Investor Verification Checklist
- Verify the specific production rates and remaining reserves of the North English Bayou Field to assess the sustainability of oil and gas revenue.
- Confirm the timeline and capital requirements for identifying new mineral production to replace current depletion.
- Review the valuation and liquidity of the $359,021 in securities available for sale.
- Monitor the volatility of timber and agricultural income, which showed significant divergence in performance during the period.