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: March 31, 1999
Business Overview: The company operates in oil and gas, timber, and agriculture sectors. As of March 31, 1999, 1,978,752 shares of Common Stock were issued and outstanding.
Key Financial Metrics
| Metric | Q1 1999 | Q1 1998 |
|---|---|---|
| Total Revenue | $477,633 | $228,719 |
| Net Income | $232,438 | $98,633 |
| Earnings Per Share | $0.12 | $0.05 |
| Operating Cash Flow | $387,911 | $57,947 |
| Cash and Equivalents (Ending) | $233,235 | $195,433 |
| Total Debt (Current + Long-Term) | $919,211 | $785,709 |
| Total Assets | $4,785,051 | $4,306,072 |
Material Changes vs. Prior Period
- Revenue Growth: Gross income increased 108.8% ($248,914) compared to Q1 1998. This was driven primarily by timber sales, which rose from $14,142 to $203,688. Oil and gas income increased 19.8%, and agriculture income increased 84.1%.
- Profitability: Net income after tax increased 135.7% to $232,438.
- Expenses: Total costs increased 32.4% to $109,437, attributed to higher timber expenses and general and administrative costs.
- Cash Flow: Net cash provided by operating activities surged to $387,911 from $57,947 in the prior year.
- Debt: Long-term debt decreased by $267,853 during the quarter, though current maturities of long-term debt increased significantly from $55,604 to $181,415.
Outlook, Risks, and Management Commentary
- Management Outlook: Management believes current revenues are sufficient for existing and anticipated future needs. No material additional liabilities are anticipated.
- Long-Term Trends: Future performance depends on replacing depleting mineral production and increasing income from timber and agriculture.
- Dividends: Dividends of $59,918 were declared and paid during the quarter.
- Corporate Governance: An annual meeting was held on April 22, 1999, electing nine directors. No opposition was solicited.
- Risks: The filing notes dependency on finding new production to replace mineral depletion.
Investor Verification Checklist
- Verify the sustainability of the 1,340% increase in timber sales revenue ($203,688 vs $14,142) and whether this represents a one-time event or a new trend.
- Confirm the classification of the $267,853 decrease in long-term debt versus the increase in current maturities to assess near-term liquidity pressure.
- Review the composition of "Securities Available for Sale" which dropped from $262,940 to $62,597, and the associated unrealized gains/losses.
- Validate the accuracy of the company name discrepancy between the metadata request ("CKX Lands, Inc.") and the filing text ("Calcasieu Real Estate & Oil Co., Inc.").