-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, T6NEoCOqEHaKdnFPyn1+76sWs/jIOUEOdosxK+0w47nt9CzmdCgtVLKaf8+MeXLF chyMv/4ySkDDkPH5HHxQTA== 0001008878-00-000005.txt : 20000214 0001008878-00-000005.hdr.sgml : 20000214 ACCESSION NUMBER: 0001008878-00-000005 CONFORMED SUBMISSION TYPE: 10QSB PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19991231 FILED AS OF DATE: 20000211 FILER: COMPANY DATA: COMPANY CONFORMED NAME: WESTLAND DEVELOPMENT CO INC CENTRAL INDEX KEY: 0000106423 STANDARD INDUSTRIAL CLASSIFICATION: LAND SUBDIVIDERS & DEVELOPERS (NO CEMETERIES) [6552] IRS NUMBER: 850165021 STATE OF INCORPORATION: NM FISCAL YEAR END: 0630 FILING VALUES: FORM TYPE: 10QSB SEC ACT: SEC FILE NUMBER: 000-07775 FILM NUMBER: 533254 BUSINESS ADDRESS: STREET 1: 401 COORS BOULEVARD S W CITY: ALBUQUERQUE STATE: NM ZIP: 87121 BUSINESS PHONE: 5058319600 MAIL ADDRESS: STREET 1: 401 COORS BLVD S W CITY: ALBUQUERQUE STATE: NM ZIP: 87121 10QSB 1 Form 10-QSB U.S. Securities and Exchange Commission Washington, D.C. 20549 (Mark One) [XX]QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For Quarter Ended December 31, 1999 [ ]TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE ACT For the transition period from to Commission File Number: 0-7775 WESTLAND DEVELOPMENT CO., INC. ------------------------------ (Exact name of small business issuer as specified in its charter) NEW MEXICO 85-0165021 - --------------------------------- ------------------------------- (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) 401 Coors Blvd., N.W., Albuquerque, New Mexico 87121 - ------------------------------------------------------------------------------- (Address of principal executive offices) (505)831-9600 - ------------------------------------------------------------------------------- (Issuer's telephone number) N/A - ------------------------------------------------------------------------------- (Former name, former address and former fiscal year, if changed since last report) Check whether the issuer (1) filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act during the past 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 [ ] State the number of shares outstanding of each of the issuer's classes of common equity as of February 11, 2000: No Par Value Common: 716,608 Class B $1.00 Par Value Common: 86,100 Transitional Small Business Format (check one) Yes [ ] No [ X ] PART I. FINANCIAL INFORMATION ITEM 1. FINANCIAL STATEMENTS WESTLAND DEVELOPMENT CO., INC. BALANCE SHEET (unaudited) December 31, 1999 ASSETS Cash and cash equivalents ........................ $ 503,282 Short-term investments ........................... 4,629,552 Receivables: Real estate contracts ......................... $ 71,018 Note receivable - related party ............... 104,624 Other receivables ............................. 151,674 327,316 ------------ Land and improvements held for future development ............................ 6,359,429 Income producing properties, net ................. 8,212,817 Property and equipment, net of accumulated depreciation of $510,197 ...................... 389,828 Investment in Partnerships and joint ventures .... 241,173 Other ............................................ 146,644 ------------ $ 20,810,041 ============ LIABILITIES AND STOCKHOLDERS' EQUITY Accounts payable, accrued expenses and other liabilities ......................... $ 410,516 Current income taxes ............................. 617,000 Deferred income taxes ............................ 5,312,000 Notes, bonds, mortgages and assessments payable .. 7,005,617 ------------ Total liabilities ............... 13,345,133 Stockholders' equity Common stock - no par value; authorized, 736,668 shares; issued and outstanding, 716,608 shares ............................. 8,500 Class B common stock - $1.00 par value; authorized, 491,112 shares; issued and outstanding, 86,100 shares .............................. 86,100 Additional paid-in capital .................... 581,527 Retained earnings ............................. 6,788,781 7,464,908 ------------ ------------ $ 20,810,041 ============ WESTLAND DEVELOPMENT CO., INC. STATEMENTS OF OPERATIONS (unaudited) For the 3 months ended December 31, 1999 1998 ----------- ----------- Revenues Land ...................................... $ 377,944 $ 3,103,827 Deferred profit recognized on installment sales .................... -- 28,766 Rentals ................................... 199,176 174,985 ----------- ----------- 577,120 3,307,578 Costs and expenses Cost of land revenues ..................... 116,295 150,015 Cost of rentals ........................... 111,831 47,654 General and administrative ................ 472,933 462,295 ----------- ----------- 701,059 659,964 ----------- ----------- (Loss) income from operations .......... (123,939) 2,647,614 Other (income) expense Interest income ........................... (62,305) (25,740) Other income .............................. 62,956 (4,406) Interest expense .......................... 152,971 135,189 ----------- ----------- 153,622 105,043` ----------- ----------- (Loss) earnings before income taxes..... (277,561) 2,542,571 Income tax (benefit) expense ................. (121,000) 1,017,000 ----------- ----------- NET (LOSS) EARNINGS .................... $ (156,561) $ 1,525,571 =========== =========== Weighted average common shares outstanding ............................... 802,708 802,708 =========== =========== (Loss) Earnings per common share ............. $ (.20) $ 1.90 =========== =========== WESTLAND DEVELOPMENT CO., INC. STATEMENTS OF OPERATIONS (unaudited) For the 6 months ended December 31, 1999 1998 ----------- ----------- Revenues Land ...................................... $ 4,333,201 $ 3,407,232 Deferred profit recognized on installment sales .................... -- 29,984 Rentals ................................... 404,773 358,295 ----------- ----------- 4,737,974 3,795,511 Costs and expenses Cost of land revenues ..................... 831,747 321,943 Cost of rentals ........................... 163,170 93,630 General and administrative ................ 903,923 986,971 ----------- ----------- 1,898,840 1,402,544 ----------- ----------- Income from operations ................. 2,839,134 2,392,967 Other (income) expense Interest income ........................... (107,424) (54,520) Other income .............................. (7,737) (6,561) Interest expense .......................... 328,779 300,555 ----------- ----------- 213,618 239,474 ----------- ----------- Earnings before income taxes ........... 2,625,516 2,153,493 Income tax expense ........................... 1,050,000 861,000 ----------- ----------- NET EARNINGS ........................... $ 1,575,516 $ 1,292,493 =========== =========== Weighted average common shares outstanding ............................... 802,708 802,708 =========== ========== Earnings per common share .................... $ 1.96 $ 1.61 =========== ========== WESTLAND DEVELOPMENT CO., INC. STATEMENTS OF CASH FLOWS (unaudited) For the six months ended December 31, 1999 1998 ------------- ------------- Cash flows from operating activities Cash received from land sales and collections on real estate contracts receivable ................. $ 4,299,539 $ 3,462,469 Development and closing costs paid on land sales ............................... (285,861) (507,964) Cash received from rental operations .......... 409,050 365,434 Cash paid for rental operations ............... (69,064) (5,642) Cash paid for property taxes .................. (43,286) (76,592) Interest received ............................. 107,510 54,531 Interest paid ................................. (330,205) (294,283) Income taxes paid ............................. (428,000) (147,000) General and administrative costs paid ......... (1,102,797) (904,663) Other ......................................... (9,260) 3,752 ------------ ------------ Net cash provided by operating activities ........................ 2,547,626 1,950,042 ------------ ------------ Cash flows from investing activities Capital expenditures for income producing and other properties .............. (119,325) (43,789) Investment in partnerships and joint ventures . (1,585) (187) Change in short-term investments .............. (2,051,533) -- Proceeds from note receivable-related party ... 1,609 -- Proceeds from sale of assets .................. 50 -- ------------ ------------ Net cash used in investing activities ........ (2,170,784) (43,976) ------------ ------------ Cash flows from financing activities Borrowing on notes, mortgages and assessments payable ......................... 581,475 800,000 Repayments of bonds, mortgages, notes and assessments payable ............... (952,509) (1,029,546) Payment of dividends .......................... (802,708) (802,708) ------------ ------------ Net cash used in financing activities ....................... (1,173,742) (1,032,254) ------------ ------------ NET DECREASE IN CASH AND CASH EQUIVALENTS ......................... (796,900) 873,812 Cash and cash equivalents at beginning of period .......................... 1,300,182 3,209,893 ------------ ------------ Cash and cash equivalents at end of period ................................ $ 503,282 $ 4,083,705 ============ ============ Reconciliation of net earnings (loss) to net cash used in operating activities Net earnings ................................... $ 1,574,516 $ 1,292,493 Adjustments to reconcile net earnings to net cash provided (used) in operating activities Depreciation .............................. 128,905 113,474 Profit recognized on prior years' installment sales ................ -- (29,984) Deferred income tax ....................... 1,034,000 Loss on retirement/gain on sale of assets . (50) 2,071 Change in Rents receivable, accrued interest, property tax and other assets ........... (112,343) 10,863 Real estate contracts ..................... (46,727) 33,466 Land and improvements held for future development and income producing properties .................... 538,987 (145,324) Other assets .............................. (2,284) (48,936) Accounts and retainages payable, accrued interest and other liabilities ............................ (155,378) 9,919 Income taxes payable/recoverable .......... 622,000 (320,000) ------------ ------------ Net cash (used in) provided by operating activities ......................... $ 2,547,626 $ 1,950,042 ============ ============ WESTLAND DEVELOPMENT CO., INC. NOTES TO THE FINANCIAL STATEMENTS (unaudited) December 31, 1999 1. The balance sheet at December 31, 1999, statements of operations for the three and six month periods ended December 31, 1999 and 1998 and statements of cash flows for six month periods ended December 31, 1999 and 1998 have been prepared by the Company, without audit. In the opinion of management, all adjustments, including normal recurring adjustments necessary to present fairly the financial position, results of operations and cash flows, have been made. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted. It is suggested that these financial statements be read in conjunction with the Company's audited financial statements at June 30, 1999. The results of operations for the three months and six months ended December 31, 1999 are not necessarily indicative of operating results for the full year. 2. The computation of earnings per common share has been based upon the weighted average number of shares of outstanding common stock and common stock issuable without further consideration, which for the three and six month periods ended December 31, 1999 and December 31, 1998 were 802,708. ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS During the six months ended December 31, 1999, the Company's cash and cash equivalents decreased by $796,900. During this period, operations provided $2,547,626, the Company invested $2,170,784 in fixed and other assets, primarily in short-term investments, retired $371,034 of debt, net and paid dividends in the amount of $802,708. During the second quarter of the current fiscal year, the Company had revenues of $577,120 compared to $3,307,578 during the same period in the prior fiscal year. Land revenues decreased significantly primarily due to the sale in 1998 of a parcel to the National Park Service for approximately $2,605,000. Operating costs and expenses during the three months ended December 31, 1999, were $701,059 compared to $659,964 during the comparable period in 1998. For the year to date, revenues were $4,737,974 in 1999 and $3,795,511 in 1998. Operating costs and expenses were $1,898,840 in 1999 and $1,402,544 in 1998. The differences arise from significantly higher large parcel and small lot land sales and related costs of sales in 1999 compared to 1998. The Company may expend approximately $1,500,000 or more to acquire replacement lands and property for the land sold to the National Park Service under threat of condemnation. In the event the Company does not replace the property sold to the National Park Service, it may need to utilize a substantial portion of its liquid investments for federal and state income taxes. To date, the Company has noted no adverse consequences related to year 2000 issues. Management will continue to monitor the Company's internal systems and exchanges with third party vendors, suppliers, service providers and customers. The total cost of compliance in both information and non-information technology systems has been approximately $30,000. Since a substantial portion of this cost has been third party hardware and software, the effect on net earnings has been immaterial. Changes in internal systems are complete and any remaining costs will be insignificant. Determination of level of risk in the Company's material relationships with third parties is considered negligible. Therefore, contingency plans have not been made. PART II. OTHER INFORMATION ITEM 1. LEGAL PROCEEDINGS Other than the ordinary routine litigation incidental to the Company's business, neither the Company nor any member of management is the subject of any pending or threatened legal proceeding. ITEM 2. CHANGES IN SECURITIES NONE ITEM 3. DEFAULTS IN SENIOR SECURITIES NONE ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS NONE ITEM 5. OTHER INFORMATION NONE ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K (a) There are no exhibits required by Item 601 of Regulation S-B. (b) Reports on Form 8-K. State whether any reports on Form 8-K have been filed during the quarter for which this report is filed, listing the items reported, any financial statements filed, and the dates of any such reports. NONE SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. WESTLAND DEVELOPMENT CO., INC. DATE: February 11, 2000 By: Barbara Page --------------------------- Barbara Page, President, Chief Executive Officer and Chief Accounting Officer EX-27 2
5 6-MOS JUN-30-2000 DEC-31-1999 503282 4629552 327316 0 6359429 0 900025 510197 20810041 0 7005617 0 0 94600 7370308 20810041 4333201 4737974 831747 994917 1117541 0 328779 2625516 1050000 1575516 0 0 0 1575516 1.96 1.96
-----END PRIVACY-ENHANCED MESSAGE-----