SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q Quarterly report Under Section 13 or 15(d) Of the Securities Exchange Act of 1934 For Quarter Ended March 31, 2003 Commission file number 0-9669 CALCASIEU REAL ESTATE & OIL CO., INC. (Exact name of registrant as specified in its charter) Louisiana 72-0144530 (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) One Lakeside Plaza Lake Charles, LA 70601 (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code: (337) 494-4256 Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes X No ___ --- Securities registered pursuant to Section 12(b) for the Act: Title of each class Name of each exchange on which registered ------------------- None Not applicable Securities registered pursuant to Section 12(g) of the Act: Common Stock, No Par Value (Title of Class) -------------------------------- As of March 31, 2002, 1,955,044 shares of the registrant's Common Stock, without par value, were issued and outstanding. As of June 30, 2002, the total market value of all outstanding stock was $10,009,825. 1 CALCASIEU REAL ESTATE & OIL CO., INC. Form 10-Q for the Quarter ended March 31, 2003 TABLE OF CONTENTS Part I FINANCIAL INFORMATION Page No. ------ --------------------- -------- Management's Discussion and Analysis of Financial Condition and Results of Operations 3 Balance Sheets March 31, 2003 and December 31, 2002 4-5 Statements of Income and Retained Earnings Three Months Ended March 31, 2003 and March 31, 2002 6 Statements of Cash Flows Three Months Ended March 31, 2003 and March 31, 2002 7 Part II OTHER INFORMATION ------- ----------------- Item 4. Submission of Matters to a Vote of Security Holders 8 Item 6. Exhibits and Reports on Form 8-K 9 Signatures 9 Reference is made to the Notes to Financial Statements contained in the Company's Annual Report on Form 10-K The information furnished is not in connection with any sale or offer for sale of, or solicitation of an offer to buy, any securities. 2 CALCASIEU REAL ESTATE & OIL CO., INC. PART I Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations The Company earned $251,777 net income for the first quarter of 2003 compared to $89,991 for the first quarter of 2002, an increase of 180.8%. This increase was due entirely to the increase of income from oil and gas properties. Oil and gas income increased partly due to higher prices but primarily because of production from one well in the North Gordon field, which began production after the first quarter of 2002. During the second quarter the Company hopes to receive income from the settlement of the Strohe suit. This is a one time event and we are projecting receipt of approximately $70,000. The Company is also pursuing receipt of approximately $120,000 being held in escrow pending proof of mineral ownership. There is currently no new mineral activity on the Company's lands. The enclosed financial statements are unaudited with the exception of the Balance Sheet for December 31, 2002. The unaudited interim financial statements reflect all adjustments which are, in the opinion of management, necessary to a fair statement of the results for the interim periods presented. All such adjustments are of a normal recurring nature. Management believes that the Company's revenues will be sufficient to meet its existing needs and the needs for its anticipated future operations. Long-term trends will depend upon the ability of management to continue to find new production to replace the depletion of the Company's present minerals as well as increasing the Company's income from timber and agriculture. Management does not presently anticipate that the Company will incur material additional liabilities in its future operations. The Company participates in no off-balance sheet entities. 3 CALCASIEU REAL ESTATE & OIL CO., INC. BALANCE SHEET ASSETS CURRENT ASSETS March 31, 2003 December 31, 2002 Cash and cash equivalents $ 785,768 $ 583,327 Accounts receivables 311,642 152,373 Prepaid income tax & expenses 0 64,793 Inventory, crops 0 10,125 ---------- ---------- Total Current Assets 1,097,410 810,618 ---------- ---------- SECURITIES AVAILABLE FOR SALE 1,156,326 1,361,123 ---------- ---------- PROPERTY AND EQUIPMENT, Less accumulated depreciation, Depletion and amortization 90,923 91,949 Timber, less accumulated depletion 503,490 484,161 Land 3,904,851 3,904,851 ---------- ---------- Total Property 4,499,264 4,480,961 ---------- ---------- TOTAL $6,753,000 $6,652,702 ---------- ---------- 4 CALCASIEU REAL ESTATE & OIL CO., INC. BALANCE SHEET LIABILITIES & STOCKHOLDERS' EQUITY CURRENT LIABILITIES March 31, 2003 December 31, 2002 Trade payables and accrued expenses $ 5,284 $ 8,863 Dividends payable 97,989 195,742 Current deferred tax liability, net 22,295 23,370 Income taxes payable 50,531 0 ---------- ---------- Total Current Liabilities 176,099 227,975 ---------- ---------- STOCKHOLDER'S EQUITY Common Stock, no par value 3,000,000 shares authorized; 2,100,000 shares issued $ 72,256 $ 72,256 Retained earnings 6,796,526 6,642,737 Accumulated other comprehensive income 14,948 16,563 ---------- ---------- 6,883,730 6,731,556 Less cost treasury stock (2003 - 144,956 shares; 2002 - 144,956 shares) 306,829 306,829 ---------- ---------- Total Equity 6,576,901 6,424,727 ---------- ---------- TOTAL $6,753,000 $6,652,702 ---------- ---------- 5 CALCASIEU REAL ESTATE & OIL CO., INC. STATEMENTS OF INCOME AND RETAINED EARNINGS Three Months Ended Three Months Ended March 31, 2003 March 31, 2002 REVENUES Income-primarily from oil and gas properties $ 378,497 $ 138,013 Income-agricultural properties 58,286 63,581 Income-timber properties 13,423 25,494 ----------- ----------- Total $ 450,206 $ 227,088 ----------- ----------- COSTS AND EXPENSES Forestry expenses $ 7,807 $ 6,843 Agriculture expense 2,836 3,171 Oil and gas production costs 19,345 11,790 General and administrative 67,275 81,491 Depreciation and depletion 2,046 1,325 ----------- ----------- Total $ 99,309 $ 104,620 ----------- ----------- OTHER INCOME (EXPENSE) Interest income $ 4,607 $ 4,784 Dividends on common stock 7,917 2,704 ----------- ----------- Total $ 12,524 $ 7,488 ----------- ----------- INCOME BEFORE INCOME TAXES AND EXTRAORDINARY CREDITS $ 363,421 $ 129,956 PROVISION FOR INCOME TAXES: Current 111,644 39,965 Deferred 0 0 ----------- ----------- Total $ 111,644 $ 39,965 ----------- ----------- NET INCOME $ 251,777 $ 89,991 RETAINED EARNINGS, BEGINNING OF PERIOD 6,642,737 6,387,579 DIVIDENDS DECLARED (97,988) (97,961) ----------- ----------- RETAINED EARNINGS END OF PERIOD $ 6,796,526 $ 6,379,609 ----------- ----------- Earnings per share $ .13 $ .05 OTHER COMPREHENSIVE INCOME Three Months Ended Three Months Ended March 31, 2003 March 31, 2002 Unrealized gain (loss) on securities available for sale, net of taxes $ (1,615) $ 0 Other Comprehensive Income, Beginning of Period 16,563 26,059 ----------- ----------- Other Comprehensive Income, End of Period $ 14,948 $ 26,059 ----------- ----------- 6 CALCASIEU REAL ESTATE & OIL CO., INC. STATEMENTS OF CASH FLOWS Three Months Ended Three Months Ended March 31, 2003 March 31, 2002 CASH FLOWS FROM OPERATING ACTIVITIES: Net income $ 251,777 $ 89,991 Non cash (income) expenses included in net income: Depreciation, depletion and amortization 2,046 1,325 Change in assets and liabilities: (Increase) decrease in accounts receivable (159,269) (43,938) (Increase) decrease in inventory 10,125 11,042 (Increase) decrease in prepaid expenses 3,680 3,309 (Increase) decrease in prepaid income taxes 61,113 58,052 Increase (decrease) in trade payable (3,579) 10,902 Increase (decrease) in income tax payable 50,531 0 ----------- ----------- Net cash provided by operating activities $ 216,424 $ 130,683 ----------- ----------- CASH FLOWS FROM INVESTING ACTIVITIES: Maturity of securities available for sale $ 700,657 $ 0 Reforestation expenditures (20,000) 0 Investment in land & fixed assets (349) (7,173) Purchase of securities available for sale (498,550) (899,933) ----------- ----------- $ 181,758 $ (907,106) ----------- ----------- CASH FLOWS FROM FINANCING ACTIVITIES: Dividends paid $ (195,741) $ (195,725) ----------- ----------- Net cash provided by (used in) financing activities $ (195,741) $ (195,725) ----------- ----------- Net increase (decrease) in cash and cash equivalents: $ 202,441 $ (972,148) Cash and cash equivalents: Beginning 583,327 1,419,084 ----------- ----------- Ending $ 785,768 $ 446,936 ----------- ----------- 7 CALCASIEU REAL ESTATE & OIL CO., INC. PART II OTHER INFORMATION Item 4. Submission of Matters to a Vote of Security Holders. (a) The Annual Meeting was held on April 25, 2003. (b) The following were elected Directors: Henry C. Alexander William D. Blake Troy A. Freund Arthur Hollins, III Laura A. Leach Frank O. Pruitt B. James Reaves, III Mary W. Savoy Charles D. Viccellio No other director's term of office continued after the meeting. (c) There were 1,435,023 shares represented at the meeting of whom 1,432,873 voted in favor of both propositions. The Company furnished its security holders proxy soliciting material pursuant to Regulation 14 under the Act and there was no solicitation in opposition to either the nominees for directors nor any other matters. 8 CALCASIEU REAL ESTATE & OIL CO., INC. PART II OTHER INFORMATION Item 6. EXHIBITS AND REPORTS ON FORM 8-K. (A) Exhibits None (B) Management's Certification This is to certify that we, the officers signing below, have reviewed this report and based on our knowledge, the report does not contain any untrue statement of a material fact or omit to state a material fact necessary in order to make the statements made, in light of the circumstances under which such statements were made, not misleading. Based on our knowledge, the financial statements, and other financial information included in the report, fairly present in all material respects the financial condition and results of operations of the issuer, as of, and for, the periods presented in the report. We are responsible for establishing and maintaining internal controls; have designed such controls to ensure that material information relating to the issuer is made known to such officers by others within the Company, particularly during the period in which these reports are prepared. We have evaluated the effectiveness of the Company's internal controls and believe that said controls are effective and sufficient. We have disclosed to the Company's auditors and audit committee the operation of the internal controls and have stated to same that we are unaware of any material weakness in said controls nor are we aware of any fraud. There have been no significant changes in the Company's internal controls. Dated: May 5, 2003 /s/ Arthur Hollins, III ------------------------------------ Arthur Hollins, III President /s/ William D. Blake ------------------------------------ William D. Blake Vice-President and Treasurer 9