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
Period Ended: March 31, 1998
Business Overview: The company operates in oil and gas, timber, and agriculture sectors. As of March 31, 1998, 1,997,252 shares of Common Stock were issued and outstanding.
Key Financial Metrics
| Metric | Q1 1998 | Q1 1997 |
|---|---|---|
| Total Revenue | $228,719 | $137,148 |
| Net Income | $98,633 | $53,064 |
| Earnings Per Share | $0.05 | $0.03 |
| Cash and Equivalents | $195,433 | $548,627 |
| Net Cash from Operations | $57,947 | $(185,932) |
| Total Debt (Current + Long-term) | $785,709 | Filing text does not provide a clear total for 1997 |
| Total Assets | $4,306,072 | $3,197,941 |
Material Changes vs. Prior Period
- Revenue Growth: Gross income increased 66.8% ($91,571) year-over-year, driven primarily by approximately $80,000 in oil and gas income from wells that began production in 1997.
- Profitability: Net income increased 85.9% to $98,633. Operating expenses remained virtually unchanged from the prior year.
- Other Income: Experienced a negative swing of $26,663 due to the liquidation of investment securities to fund an acreage downpayment and associated interest costs.
- Liquidity: Cash and cash equivalents decreased significantly from $548,627 to $195,433, largely due to investing activities and dividend payments.
- Asset Base: Total assets grew by over $1.1 million, with significant increases in Land ($3.35M vs $1.66M) and Timber assets.
Guidance, Outlook, and Risks
- Outlook: Management believes current revenues are sufficient to meet existing and anticipated future needs. No material additional liabilities are anticipated.
- Long-term Strategy: Future trends depend on replacing depleting mineral production and increasing income from timber and agriculture.
- Capital Allocation: The company liquidated investment securities to purchase acreage, indicating a shift in asset composition.
- Dividends: Dividends declared were $59,918 for the quarter, consistent with the prior year.
Investor Verification Checklist
- Verify the sustainability of the $80,000 oil and gas income increase from new wells.
- Confirm the valuation and future yield of the newly purchased acreage funded by security liquidation.
- Monitor the significant reduction in cash reserves ($353k decrease) against future debt maturities ($55,604 current).
- Review the specific terms of the long-term debt ($730,105) and interest rate exposure.
- Assess the depletion schedule for timber and mineral assets to gauge long-term revenue replacement needs.