Business Context and Reporting Period
Company: Calcasieu Real Estate & Oil Co., Inc. (Note: Input metadata referenced "CKX Lands, Inc." but the filing text identifies Calcasieu Real Estate & Oil Co., Inc.)
Filing Type: Form 10-Q
Reporting Period: Quarter and six months ended June 30, 1999
Operations: The company generates revenue from oil and gas properties, agriculture, and timber sales.
Key Financial Metrics (Six Months Ended June 30, 1999)
| Metric | Value |
|---|---|
| Total Revenue | $795,856 |
| Net Income | $425,615 |
| Net Income Per Share | $0.22 |
| Operating Cash Flow | $589,042 |
| Cash and Cash Equivalents (Ending) | $91,748 |
| Total Debt (Current + Long-Term) | $576,593 |
| Total Assets | $4,689,545 |
| Total Equity | $3,977,595 |
Material Changes vs. Prior Period
- Net Income: Increased 152.5% compared to the six months ended June 30, 1998 ($425,615 vs. $168,593).
- Revenue Growth:
- Oil and Gas: Up 51.5% ($484,489 vs. $319,716), driven by the Prairie Land Company #2 well.
- Agriculture: Up 123.5% ($65,632 vs. $29,372).
- Timber: Up 477.7% ($245,735 vs. $42,536), primarily due to a large timber sale in Q1 1999.
- Cash Position: Cash and cash equivalents decreased from $162,623 to $91,748, a reduction of $70,875.
- Debt Reduction: Long-term debt decreased significantly from $717,810 to $503,070 due to principal payments of $610,471.
- Investments: Securities available for sale dropped from $280,772 to $62,597.
Outlook, Risks, and Management Commentary
- Future Operations: Management believes current revenues are sufficient for existing and anticipated future needs. No material additional liabilities are anticipated.
- Production Updates: Neumin Oil has completed the Prairie Land Company #3 well, in which the company holds an interest, though production figures are not yet available.
- Dividends: The company declared and paid dividends of $59,917 during the period.
- Risks/Contingencies: The filing does not explicitly detail specific risk factors or contingencies beyond standard operational dependencies on commodity prices and production volumes.
Investor Verification Checklist
- Verify the sustainability of the 477.7% timber revenue increase, as it was driven by a single sale in Q1 1999.
- Confirm the production start date and expected output for the new Prairie Land Company #3 well.
- Review the maturity schedule of the remaining $576,593 in total debt.
- Assess the impact of the significant reduction in "Securities Available for Sale" on future investment income.
- Validate the cash burn rate given the $24,429 decrease in cash over six months despite strong operating cash flow.