Business Context and Reporting Period
This Form 10-Q covers the quarterly period ended March 31, 2000, for CALCASIEU REAL ESTATE & OIL CO., INC. (not CKX LANDS, INC.). The company operates in the oil and gas, timber, and agriculture sectors. As of the reporting date, 1,974,352 shares of Common Stock were issued and outstanding.
Key Financial Metrics
| Metric | Q1 2000 | Q1 1999 |
|---|---|---|
| Total Revenues | $585,995 | $477,633 |
| Net Income | $323,473 | $232,438 |
| Earnings Per Share | $0.16 | $0.12 |
| Net Cash from Operating Activities | $641,301 | $387,911 |
| Cash and Cash Equivalents (Ending) | $915,267 | $233,235 |
| Long-Term Debt | $737,796 | $0 |
| Current Liabilities | $215,297 | $262,837 |
Note: The filing does not explicitly state gross or net profit margins as percentages.
Material Changes vs. Prior Period
- Revenue Growth: Total revenues increased by 22.7% ($108,362) compared to the prior year quarter.
- Oil and Gas: Income from oil and gas properties surged from $225,838 to $480,492, driven by higher commodity prices and new production in the North English Bayou Field.
- Timber Decline: Timber income dropped 75.5% ($153,878) to $49,810 due to reduced harvesting activity.
- Expenses: Total expenses rose 6.4% ($7,005), primarily due to higher severance taxes associated with increased oil and gas production.
- Liquidity: Cash and cash equivalents more than quadrupled from $233,235 to $915,267.
- Debt Structure: The company reported $737,796 in long-term debt for 2000, whereas no long-term debt was listed for the 1999 period.
Outlook, Risks, and Management Commentary
- Outlook: Management believes current revenues are sufficient for existing and anticipated future needs. Long-term trends depend on replacing depleting mineral production and increasing income from timber and agriculture.
- Dividends: Dividends declared for the quarter were $98,917. Dividends paid during the period totaled $197,855.
- Corporate Governance: An Annual Meeting was held on April 20, 2000, electing nine directors. No opposition was solicited.
- Risks: The filing highlights dependency on finding new production to replace mineral depletion and the volatility of timber harvesting volumes.
Investor Verification Checklist
- Verify the source of the new long-term debt ($737,796) and its terms, as it was not present in the prior year's balance sheet.
- Confirm the sustainability of the oil and gas revenue increase given the reliance on the North English Bayou Field.
- Assess the timeline for the resumption of timber harvesting to recover the 75.5% revenue drop in that segment.
- Review the cash flow statement to understand the timing difference between dividends declared ($98,917) and dividends paid ($197,855).