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, 2000
Business Overview: The company derives revenue primarily from oil and gas properties, with additional income from timber and agricultural operations. As of June 30, 2000, 1,969,642 shares of common stock were issued and outstanding.
Key Financial Metrics
| Metric | Six Months Ended June 30, 2000 |
Six Months Ended June 30, 1999 |
|---|---|---|
| Total Revenue | $1,180,394 | $795,856 |
| Net Income | $682,538 | $425,615 |
| Net Income Per Share | $0.34 | $0.22 |
| Operating Cash Flow | $700,809 | $589,042 |
| Cash and Equivalents (Ending) | $951,423 | $91,748 |
| Total Assets | $5,527,411 | $4,689,545 |
| Total Liabilities | $637,691 | $282,403 |
| Long-Term Debt | $503,070 | $0 |
Note: Total Liabilities calculated as Current Liabilities ($134,621) + Long-Term Debt ($503,070). Prior year long-term debt was not explicitly listed as a separate line item in the provided text, though current maturities were $73,523.
Material Changes vs. Prior Period
- Profitability Surge: Net income increased 90.1% year-over-year for the six-month period. Second-quarter 2000 net income was up 11% compared to the first quarter of 2000.
- Revenue Drivers: The increase in income was entirely due to oil and gas properties, driven by higher commodity prices and new discoveries. Oil and gas income rose from $484,489 in the prior year to $971,928.
- Expense Growth: Total expenses increased 16.1% year-over-year, primarily due to higher severance taxes resulting from increased oil and gas revenues.
- Liquidity Improvement: Cash and cash equivalents grew significantly from $91,748 to $951,423, driven by strong operating cash flows of $700,809.
- Debt Structure: The balance sheet shows a long-term debt balance of $503,070 as of June 30, 2000, whereas the prior year balance sheet did not list a long-term debt figure (only current maturities of $73,523).
Guidance, Outlook, and Risks
- Management Outlook: Management believes current revenues are sufficient to meet existing and anticipated future operational needs.
- Liability Expectations: The company does not anticipate incurring material additional liabilities in future operations.
- Unusual Items: The six-month period included a one-time gain on the sale of land of $30,703.
- Risks: The filing does not explicitly detail specific risk factors beyond the inherent volatility of oil and gas prices which drove the current period's performance.
Investor Verification Checklist
- Verify the sustainability of oil and gas price increases and the longevity of new discoveries cited as revenue drivers.
- Confirm the nature and terms of the $503,070 long-term debt reported in the current period, as it was not present in the prior year's balance sheet presentation.
- Assess the impact of the one-time $30,703 gain on land sales on the reported net income.
- Review the significant increase in income tax payable ($117,577) and deferred tax liabilities to ensure adequate cash reserves for future tax obligations.