TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT |
Louisiana | 72-0144530 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |
700 Pujo Street, Suite 200 | ||
Lake Charles, LA | 70601 | |
(Address of principal executive offices) | (Zip Code) | |
(337) 493-2399 | ||
(Registrant’s telephone number) |
Large accelerated filer o | |||
Non-accelerated filer o | Smaller reporting company x |
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). |
Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date: | 1,942,495 |
Page | ||||
Part I. | Financial Information | |||
Item 1. | Financial Statements | |||
a. | Balance Sheets as of | 1 | ||
b. | Statements of Income and Comprehensive Income for the quarter and | 2 | ||
c. | Statements of Changes in Stockholders’ Equity for the | 3 | ||
d. | Statements of Cash Flows for the | 4 | ||
e. | Notes to Financial Statements (Unaudited) | 5-6 | ||
Item 2. | Management’s Discussion and Analysis of Financial Condition and Results of Operations | 7-8 | ||
Item 4. | Controls and Procedures | 8 | ||
Part II. | Other Information | |||
Item 6. | Exhibits | 9 | ||
Signature | 10 |
2012 | 2011 | 2012 | 2011 | |||||||||||||
Assets | Assets | Assets | ||||||||||||||
Current Assets: | ||||||||||||||||
Cash and cash equivalents | $ | 4,628,568 | $ | 4,124,908 | $ | 5,109,103 | $ | 4,124,908 | ||||||||
1031 trust account | 159,003 | -- | ||||||||||||||
Certificates of deposit | 501,384 | 495,625 | 741,384 | 495,625 | ||||||||||||
Accounts receivable | 219,774 | 276,217 | 300,847 | 276,217 | ||||||||||||
Prepaid expense and other assets | 109,060 | 20,828 | 93,774 | 20,828 | ||||||||||||
Total current assets | 5,617,789 | 4,917,578 | 6,245,108 | 4,917,578 | ||||||||||||
Securities available for sale | -- | -- | ||||||||||||||
Certificates of deposit | 480,000 | 480,000 | -- | 480,000 | ||||||||||||
Property and equipment: | ||||||||||||||||
Building and equipment less accumulated depreciation of $74,162 and $70,818, respectively | 16,270 | 19,614 | ||||||||||||||
Timber less accumulated depletion of $691,823 and $691,436, respectively | 1,150,522 | 1,146,743 | ||||||||||||||
Building and equipment less accumulated depreciation of $75,833 and $70,818, respectively | 14,599 | 19,614 | ||||||||||||||
Timber less accumulated depletion of $694,929 and $691,436, respectively | 1,241,425 | 1,146,743 | ||||||||||||||
Land | 4,396,034 | 4,431,034 | 4,434,081 | 4,431,034 | ||||||||||||
Total property and equipment, net | 5,562,826 | 5,597,391 | 5,690,105 | 5,597,391 | ||||||||||||
Total assets | $ | 11,660,615 | $ | 10,994,969 | $ | 11,935,213 | $ | 10,994,969 | ||||||||
Liabilities and Stockholders’ Equity | Liabilities and Stockholders’ Equity | Liabilities and Stockholders’ Equity | ||||||||||||||
Current Liabilities: | ||||||||||||||||
Trade payables and accrued expenses | $ | 54,435 | $ | 58,662 | $ | 98,562 | $ | 58,662 | ||||||||
Income tax payable: | ||||||||||||||||
Current | -- | 87,419 | -- | 87,419 | ||||||||||||
Deferred | 3,976 | 5,153 | 5,153 | 5,153 | ||||||||||||
Total current liabilities | 58,411 | 151,234 | 103,715 | 151,234 | ||||||||||||
Deferred income tax payable | 181,818 | 181,818 | 181,818 | 181,818 | ||||||||||||
Total liabilities | 240,229 | 333,052 | 285,533 | 333,052 | ||||||||||||
Stockholders’ Equity: | ||||||||||||||||
Common stock, no par value: 3,000,000 shares authorized; 2,100,000 shares issued | 72,256 | 72,256 | 72,256 | 72,256 | ||||||||||||
Retained earnings | 11,723,646 | 10,965,177 | 11,952,940 | 10,965,177 | ||||||||||||
Accumulated other comprehensive income | -- | -- | -- | -- | ||||||||||||
Less cost of treasury stock (157,505 shares) | (375,516 | ) | (375,516 | ) | (375,516 | ) | (375,516 | ) | ||||||||
Total stockholders’ equity | 11,420,386 | 10,661,917 | 11,649,680 | 10,661,917 | ||||||||||||
Total liabilities and stockholders’ equity | $ | 11,660,615 | $ | 10,994,969 | $ | 11,935,213 | $ | 10,994,969 |
Quarter Ended June 30, | Six Months Ended June 30, | Quarter Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||
2012 | 2011 | 2012 | 2011 | 2012 | 2011 | 2012 | 2011 | |||||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||||||||||
Oil and gas | $ | 520,682 | $ | 338,834 | $ | 1,425,324 | $ | 634,613 | $ | 676,782 | $ | 565,573 | $ | 2,102,106 | $ | 1,200,186 | ||||||||||||||||
Agriculture | 284,510 | 16,738 | 310,043 | 24,464 | 17,379 | 22,124 | 327,422 | 46,588 | ||||||||||||||||||||||||
Timber | 70 | -- | 5,005 | 3,439 | 32,499 | 83,193 | 37,504 | 86,632 | ||||||||||||||||||||||||
Total revenues | 805,262 | 355,572 | 1,740,372 | 662,516 | 726,660 | 670,890 | 2,467,032 | 1,333,406 | ||||||||||||||||||||||||
Costs and Expenses: | ||||||||||||||||||||||||||||||||
Oil and gas production | 57,939 | 28,256 | 122,979 | 51,244 | 60,672 | 38,794 | 183,651 | 90,208 | ||||||||||||||||||||||||
Agriculture | 1,047 | 2,455 | 1,854 | 2,962 | 2,098 | 2,258 | 3,952 | 5,220 | ||||||||||||||||||||||||
Timber | 6,057 | 4,986 | 14,226 | 14,637 | 13,717 | 17,778 | 27,943 | 32,414 | ||||||||||||||||||||||||
General and administrative | 115,493 | 128,187 | 216,969 | 219,843 | 127,101 | 99,712 | 344,070 | 319,387 | ||||||||||||||||||||||||
Depreciation and depletion | 1,615 | 738 | 3,731 | 21,298 | 4,777 | 30,210 | 8,507 | 51,507 | ||||||||||||||||||||||||
Total cost and expenses | 182,151 | 164,622 | 359,759 | 309,984 | 208,365 | 188,752 | 568,123 | 498,736 | ||||||||||||||||||||||||
Income from operations | 623,111 | 190,950 | 1,380,613 | 352,532 | 518,295 | 482,138 | 1,898,909 | 834,670 | ||||||||||||||||||||||||
Other Income / (Expense): | ||||||||||||||||||||||||||||||||
Interest income | 4,706 | 10,276 | 5,244 | 20,469 | 4,712 | 9,817 | 10,010 | 30,286 | ||||||||||||||||||||||||
Dividend income | 55 | 4,664 | 55 | 9,527 | -- | 3,854 | -- | 13,381 | ||||||||||||||||||||||||
Gain/(Loss) on securities available-for-sale | 10,688 | 10,688 | ||||||||||||||||||||||||||||||
Gain on sale of land and other assets | -- | -- | 124,000 | 306 | -- | -- | 124,000 | 306 | ||||||||||||||||||||||||
Net other income / (expense) | 4,761 | 14,940 | 129,299 | 30,302 | 4,712 | 24,359 | 134,010 | 54,661 | ||||||||||||||||||||||||
Income before income taxes | 627,872 | 205,890 | 1,509,912 | 382,834 | 523,007 | 506,497 | 2,032,919 | 889,331 | ||||||||||||||||||||||||
Federal and state income taxes: | ||||||||||||||||||||||||||||||||
Current | 255,026 | 54,537 | 485,325 | 99,531 | 162,848 | 160,247 | 648,173 | 259,779 | ||||||||||||||||||||||||
Deferred | (45,800 | ) | (12,575 | ) | (5,831 | ) | (12,427 | ) | 3,003 | 863 | (2,828 | ) | (11,565 | ) | ||||||||||||||||||
Total income taxes | 209,226 | 41,962 | 479,494 | 87,104 | 165,851 | 161,110 | 645,345 | 248,214 | ||||||||||||||||||||||||
Net Income | 418,646 | 163,928 | 1,030,418 | 295,730 | 357,156 | $ | 345,387 | 1,387,574 | 641,117 | |||||||||||||||||||||||
Other Comprehensive Income, Net of Taxes: | ||||||||||||||||||||||||||||||||
Change in unrealized net holding gains occurring during period, net of taxes of $1,813 and $2,321, respectively for 2011 | -- | 2,718 | -- | 3,481 | ||||||||||||||||||||||||||||
Change in unrealized net holding gains occurring during period, net of taxes of $6,042 and $3,721, respectively for 2011 | -- | (9,062 | ) | -- | (5,581 | ) | ||||||||||||||||||||||||||
Other comprehensive income | -- | 2,718 | -- | 3,481 | -- | (9,062 | -- | (5,581 | ) | |||||||||||||||||||||||
Comprehensive Income | $ | 418,646 | $ | 166,646 | $ | 1,030,418 | $ | 299,211 | $ | 357,156 | $ | 336,325 | $ | 1,387,574 | $ | 635,536 | ||||||||||||||||
Per Common Stock (1,942,495 shares): | ||||||||||||||||||||||||||||||||
Net Income | $ | 0.22 | $ | 0.08 | $ | 0.53 | $ | 0.15 | $ | 0.18 | $ | 0.18 | $ | 0.71 | $ | 0.33 | ||||||||||||||||
Dividends | $ | 0.07 | $ | 0.07 | $ | 0.14 | $ | 0.14 | $ | 0.07 | $ | 0.07 | $ | 0.21 | $ | 0.21 |
Six Months Ended June 30, 2012: | ||||||||||||||||||||||||||||||||||||||||
Total | Retained Earnings | Accumulated Other Comprehensive Income | Capital Stock Issued | Treasury Stock | Total | Retained Earnings | Accumulated Other Comprehensive Income | Capital Stock Issued | Treasury Stock | |||||||||||||||||||||||||||||||
December 31, 2011 Balance | $ | 10,661,917 | $ | 10,965,177 | $ | -- | $ | 72,256 | $ | 375,516 | $ | 10,661,917 | $ | 10,965,177 | $ | -- | $ | 72,256 | $ | 375,516 | ||||||||||||||||||||
Net income | 1,030,418 | 1,030,418 | -- | -- | -- | 1,387,574 | 1,387,574 | -- | -- | -- | ||||||||||||||||||||||||||||||
Other comprehensive income | -- | -- | -- | -- | -- | -- | -- | -- | -- | -- | ||||||||||||||||||||||||||||||
Dividends | (271,949 | ) | (271,949 | ) | -- | -- | -- | (407,924 | ) | (407,924 | ) | -- | -- | -- | ||||||||||||||||||||||||||
June 30, 2012 Balance | $ | 11,420,386 | $ | 11,723,646 | $ | -- | $ | 72,256 | $ | 375,516 | ||||||||||||||||||||||||||||||
Dividend reversion | 8,113 | 8,113 | -- | -- | -- | |||||||||||||||||||||||||||||||||||
September 30, 2012 Balance | $ | 11,649,680 | $ | 11,952,940 | $ | -- | $ | 72,256 | $ | 375,516 |
Six Months Ended June 30, 2011: | ||||||||||||||||||||
Total | Retained Earnings | Accumulated Other Comprehensive Income | Capital Stock Issued | Treasury Stock | ||||||||||||||||
December 31, 2010 Balance | $ | 10,246,245 | $ | 10,543,924 | $ | 5,581 | $ | 72,256 | $ | 375,516 | ||||||||||
Net income | 295,730 | 295,730 | -- | -- | -- | |||||||||||||||
Other comprehensive income | 3,481 | -- | 3,481 | -- | -- | |||||||||||||||
Dividends | (271,949 | ) | (271,949 | ) | -- | -- | -- | |||||||||||||
Dividend reversion | 13,375 | 13,375 | -- | -- | -- | |||||||||||||||
June 30, 2011 Balance | $ | 10,286,882 | $ | 10,581,080 | $ | 9,062 | $ | 72,256 | $ | 375,516 |
Total | Retained Earnings | Accumulated Other Comprehensive Income | Capital Stock Issued | Treasury Stock | ||||||||||||||||
December 31, 2010 Balance | $ | 10,246,245 | $ | 10,543,924 | $ | 5,581 | $ | 72,256 | $ | 375,516 | ||||||||||
Net income | 641,117 | 641,117 | -- | -- | -- | |||||||||||||||
Other comprehensive income | (5,581 | ) | -- | (5,581 | ) | -- | -- | |||||||||||||
Dividends | (407,924 | ) | (407,924 | ) | -- | -- | -- | |||||||||||||
Dividend reversion | 13,375 | 13,375 | -- | -- | -- | |||||||||||||||
September 30, 2011 Balance | $ | 10,487,232 | $ | 10,790,492 | $ | -- | $ | 72,256 | $ | 375,516 |
2012 | 2011 | 2012 | 2011 | |||||||||||||
Cash Flows From Operating Activities: | ||||||||||||||||
Net Income | 1,030,418 | 295,730 | $ | 1,387,574 | $ | 641,117 | ||||||||||
Less non-cash (income) expenses included in net income: | ||||||||||||||||
Depreciation, depletion and amortization | 3,731 | 21,298 | 8,507 | 51,507 | ||||||||||||
Deferred income tax expense | (5,831 | ) | (12,427 | ) | (2,828 | ) | (11,565 | ) | ||||||||
Less non-operating activities: | ||||||||||||||||
Gain from sale of land and other assets | (124,000 | ) | (306 | ) | (124,000 | ) | (306 | ) | ||||||||
Change in operating assets and liabilities: | ||||||||||||||||
Increase in current assets | (27,135 | ) | (88,587 | ) | ||||||||||||
Decrease in current liabilities | (91,646 | ) | (9,290 | ) | ||||||||||||
(Increase) decrease in current assets | (94,748 | ) | 7,724 | |||||||||||||
Increase (decrease) in current liabilities | (47,519 | ) | 11,551 | |||||||||||||
Net cash provided from operating activities | 785,537 | 206,418 | 1,126,986 | 700,028 | ||||||||||||
Cash Flows From Investing Activities: | ||||||||||||||||
Certificates of deposit: | ||||||||||||||||
Maturity proceeds | 255,625 | -- | 495,625 | -- | ||||||||||||
Purchases | (261,384 | ) | (5,625 | ) | (261,384 | ) | (725,625 | ) | ||||||||
Securities: | ||||||||||||||||
Sales proceeds | 787,841 | |||||||||||||||
Purchases | -- | (9,470 | ) | -- | (12,560 | ) | ||||||||||
Land, timber, equipment and other assets: | ||||||||||||||||
Sales proceeds | 159,000 | 167 | 159,000 | 167 | ||||||||||||
Purchases | (4,166 | ) | (532,944 | ) | (136,221 | ) | (604,483 | ) | ||||||||
Proceeds held in 1031 trust account | (159,003 | ) | -- | -- | -- | |||||||||||
Net cash used in investing activities | (9,928 | ) | (547,872 | ) | ||||||||||||
Net cash provided from (used in) investing activities | 257,020 | (554,660 | ) | |||||||||||||
Cash Flows From Financing Activities: | ||||||||||||||||
Dividends paid, net of reversion | (271,949 | ) | (258,574 | ) | (399,811 | ) | (394,549 | ) | ||||||||
Net cash used in financing activities | (271,949 | ) | (258,574 | ) | (399,811 | ) | (394,549 | ) | ||||||||
Net increase (decrease) in cash and cash equivalents | 503,660 | (600,028 | ) | 984,195 | (249,181 | ) | ||||||||||
Cash and cash equivalents: | ||||||||||||||||
Beginning | 4,124,908 | 5,182,316 | 4,124,908 | 5,182,316 | ||||||||||||
Ending | 4,628,568 | 4,582,288 | $ | 5,109,103 | $ | 4,933,135 | ||||||||||
Supplemental disclosures of cash flow information: | ||||||||||||||||
Cash payments for: | ||||||||||||||||
Interest | -- | -- | $ | -- | $ | -- | ||||||||||
Income taxes | 606,641 | 112,160 | $ | 781,641 | $ | 139,660 | ||||||||||
Supplemental schedule of non-cash investing and financing activities: | ||||||||||||||||
Net change in recognized and unrecognized unrealized gains (losses) on available-for-sale securities | -- | 5,802 | $ | -- | $ | (9,302 | ) |
June 30, 2012 | September 30, 2012 | |||||||||||||||||||||||||||||||||||||||||||||||
Current | Non-Current | Total | Current | Non-Current | Total | |||||||||||||||||||||||||||||||||||||||||||
Fair Value | Unrealized Gain/(Loss) | Fair Value | Unrealized Gain/(Loss) | Fair Value | Unrealized Gain/(Loss) | Fair Value | Unrealized Gain/(Loss) | Fair Value | Unrealized Gain/(Loss) | Fair Value | Unrealized Gain/(Loss) | |||||||||||||||||||||||||||||||||||||
Certificate of Deposits | $ | 501,384 | -- | 480,000 | -- | 981,384 | -- | $ | 741,384 | -- | -- | -- | 741,384 | -- | ||||||||||||||||||||||||||||||||||
Mutual Funds | -- | -- | -- | -- | -- | -- | -- | -- | -- | -- | -- | -- | ||||||||||||||||||||||||||||||||||||
Equity Securities | -- | -- | -- | -- | -- | -- | -- | -- | -- | -- | -- | -- | ||||||||||||||||||||||||||||||||||||
Total | $ | 501,384 | -- | 480,000 | -- | 981,384 | -- | $ | 741,384 | -- | -- | -- | 741,384 | -- |
June 30, 2011 | September 30, 2012 | |||||||||||||||||||||||||||||||||||||||||||||||
Current | Non-Current | Total | Current | Non-Current | Total | |||||||||||||||||||||||||||||||||||||||||||
Fair Value | Unrealized Gain/(Loss) | Fair Value | Unrealized Gain/(Loss) | Fair Value | Unrealized Gain/(Loss) | Fair Value | Unrealized Gain/(Loss) | Fair Value | Unrealized Gain/(Loss) | Fair Value | Unrealized Gain/(Loss) | |||||||||||||||||||||||||||||||||||||
Certificate of Deposits | $ | 495,625 | -- | -- | -- | 495,625 | -- | $ | 735,625 | -- | 480,000 | -- | 1,215,625 | -- | ||||||||||||||||||||||||||||||||||
Mutual Funds | -- | -- | 799,044 | 13,078 | 799,044 | 13,078 | -- | -- | -- | -- | -- | -- | ||||||||||||||||||||||||||||||||||||
Equity Securities | -- | -- | -- | -- | -- | -- | -- | -- | -- | -- | -- | -- | ||||||||||||||||||||||||||||||||||||
Total | $ | 495,625 | -- | 799,044 | 13,078 | 1,294,669 | 13,078 | $ | 735,625 | -- | 480,000 | -- | 1,215,625 | -- |
June 30, 2012 | September 30, 2011 | |||||||||||||||||||||||
Quoted Prices in Active Markets for | Significant Other | Significant Unobservable | Quoted Prices in Active Markets for | Significant Other | Significant Unobservable | |||||||||||||||||||
Certificate of Deposit | $ | 981,384 | -- | -- | $ | 741,384 | -- | -- | ||||||||||||||||
Mutual Funds | -- | -- | -- | -- | -- | -- | ||||||||||||||||||
Equity Securities | $ | -- | -- | -- | $ | -- | -- | -- |
June 30, 2011 | September 30, 2011 | |||||||||||||||||||||||
Quoted Prices in Active Markets for | Significant Other | Significant Unobservable | Quoted Prices in Active Markets for | Significant Other | Significant Unobservable | |||||||||||||||||||
Certificate of Deposit | $ | 495,625 | -- | -- | $ | 1,215,625 | -- | -- | ||||||||||||||||
Mutual Funds | 799,044 | -- | -- | -- | -- | -- | ||||||||||||||||||
Equity Securities | $ | -- | -- | -- | $ | -- | -- | -- |
Six Months Ended 06/30/12 | Six Months Ended 06/30/11 | Nine Months Ended 09/30/12 | Nine Months Ended 09/30/11 | |||||||||||||
Net gas produced (MCF) | 42,868 | 32,665 | 60,205 | 48,372 | ||||||||||||
Average gas sales price (per MCF)(1) | $ | 3.47 | $ | 4.74 | $ | 3.34 | $ | 5.05 | ||||||||
Net oil produced (Bbl)(2) | 9,988 | 4,064 | 15,074 | 7,279 | ||||||||||||
Average oil sales price (per Bbl)(1,2) | $ | 109.22 | $ | 100.05 | $ | 106.20 | $ | 103.15 |
3.1 | Restated/Articles of Incorporation of the Registrant are incorporated by reference to Exhibit (3)-1 to Form 10 filed April 29, 1981. |
3.2 | Amendment to Articles of Incorporation of the Registrant is incorporated by reference to Exhibit (3.2) to Form 10-K for year ended December 31, 2003. |
3.3 | By-Laws of the Registrant |
10 | Contract to Purchase and Sell approximately 3,495 acres in Cameron Parish, Louisiana effective July 3, 2007 is incorporated by reference to Exhibit (10) to Form 10-QSB filed August 13, 2007. |
31.1 | Certification of Joseph K. Cooper, President and Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 filed herewith. |
31.2 | Certification of Brian R. Jones, Treasurer and Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 filed herewith. |
32 | Certifications of Chief Executive Officer and Chief Financial Officer Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 filed herewith. |
101.INS** | XBRL Instance | |
101.SCH** | XBRL Taxonomy Extension Schema | |
101.CAL** | XBRL Taxonomy Extension Calculation | |
101.DEF** | XBRL Taxonomy Extension Definition | |
101.LAB** | XBRL Taxonomy Extension Labels | |
101.PRE** | XBRL Taxonomy Extension Presentation |
CKX Lands, Inc. | |||
Date: | /s/ Joseph K. Cooper | ||
Joseph K. Cooper | |||
President and Chief Executive Officer | |||
Date: | /s/ | ||
Brian R. Jones | |||
Brian R. Jones | |||
Treasurer and Chief Financial Officer |