-----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, R9v5WvUReH2zcW+hDFXqvcgvETXSR9TLYXupJvq4U4IoUObb1l/cJknUJ8Fn5334 /Axmq0tof3vqz8hHY2inNg== 0001008878-97-000002.txt : 19970222 0001008878-97-000002.hdr.sgml : 19970222 ACCESSION NUMBER: 0001008878-97-000002 CONFORMED SUBMISSION TYPE: 10QSB PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19961231 FILED AS OF DATE: 19970213 SROS: NONE 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: 1934 Act SEC FILE NUMBER: 000-07775 FILM NUMBER: 97530251 BUSINESS ADDRESS: STREET 1: 401 COORS BOULEVARD NW CITY: ALBUQUERQUE STATE: NM ZIP: 87121 BUSINESS PHONE: 5058319600 MAIL ADDRESS: STREET 1: 401 COORS BLVD NW 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, 1996 [ ]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 13, 1997: No Par Value Common: 716,608 Class A $1.00 Par Value Common: NONE 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, 1996 ASSETS Cash and cash equivalents .......................... $ 916,842 Receivables: Real estate contracts ........................... $ 99,506 Less related deferred profit ............... 74,444 ----------- 25,062 Note receivable - related party ................. 69,116 Other receivables ............................... 103,128 Accrued interest ................................ 903 198,209 ----------- Land and improvements held for future development .............................. 5,328,006 Income producing properties, net ................... 7,201,466 Property and equipment, net of accumulated depreciation of $375,301 ........................ 397,880 Investment in Partnerships and joint ventures ...... 518,909 Other .............................................. 505,816 ----------- $15,067,128 =========== LIABILITIES AND STOCKHOLDER'S EQUITY Accounts payable, accrued expenses and other liabilities ........................... $ 233,793 Accrued interest payable ........................... 44,229 Deferred income taxes .............................. 3,233,000 Notes, bonds, mortgages and assessments payable .... 6,888,896 ----------- Total liabilities ................. 10,399,918 Stockholders' equity Common stock - no par value; authorized, 736,668 shares; issued and outstanding, 716,608 shares ............................... 8,500 Class A common stock - $1.00 par value; authorized, 736,668 shares; issued, none ......................... -- 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 ............................... 3,991,083 4,667,210 ----------- ----------- $15,067,128 =========== WESTLAND DEVELOPMENT CO., INC. STATEMENTS OF OPERATIONS (unaudited) For the 3 months ended December 31, 1996 1995 ----------- ----------- Revenues Land ...................................... $ 940,253 $ 509,578 Deferred profit recognized on installment sales .................... 15,212 11,809 Rentals ................................... 175,676 111,195 ----------- ----------- 1,131,141 632,582 Costs and expenses Cost of land revenues ..................... 200,991 195,138 Cost of rentals ........................... 30,675 32,986 Other general and administrative .......... 454,121 524,357 Legal ..................................... 2,315 9,921 ----------- ----------- 688,102 762,402 ----------- ----------- Operating income (loss) ................ 443,039 (129,820) Other (income) expense Interest income ........................... (23,013) (24,211) Gain on sale of property and equipment ............................ (140) (50) Other income .............................. -- (18,713) Interest expense .......................... 180,411 105,992 Equity in losses of partnerships .......... 209 1,648 ----------- ----------- 157,467 64,666 ----------- ----------- Earnings (loss) before income taxes .... 285,572 (194,486) Income tax expense (benefit) ................. 114,344 (28,700) ----------- ----------- NET EARNINGS(LOSS) ..................... $ 171,228 $ (165,786) =========== =========== Weighted average common and common equivalent shares outstanding ............................... 802,708 794,393 =========== =========== Net earnings (loss) per common and common equivalent share ................... $ .21 $ (.21) =========== =========== WESTLAND DEVELOPMENT CO., INC. STATEMENTS OF OPERATIONS (unaudited) For the 6 months ended December 31, 1996 1995 ----------- ----------- Revenues Land .................................... $ 1,158,486 $ 1,297,900 Deferred profit recognized on installment sales .................. 22,123 18,860 Rentals ................................. 269,431 182,256 ----------- ----------- 1,450,040 1,499,016 Costs and expenses Cost of land revenues ................... 303,684 490,198 Cost of rentals ......................... 50,151 66,519 Other general and administrative ........ 970,702 938,248 Legal ................................... 3,133 47,194 ----------- ----------- 1,327,670 1,542,159 ----------- ----------- Operating income (loss) .............. 122,370 (43,143) Other (income) expense Interest income ......................... (51,142) (68,220) Gain on sale of property and equipment .......................... (1,752) (150) Other income ............................ -- (33,325) Interest expense ........................ 290,856 180,649 Equity in losses of partnerships ........ 36,914 1,648 ----------- ----------- 274,876 80,602 ----------- ----------- Loss before income taxes ............. (152,506) (123,745) Income tax expense (benefit) ............... (60,887) -- ----------- ----------- NET LOSS ............................. $ (91,619) $ (123,745) =========== =========== Weighted average common and common equivalent shares outstanding ............................. 801,689 790,643 =========== =========== Net earnings (loss) per common and common equivalent share ................. $ (.11) $ (.16) =========== =========== WESTLAND DEVELOPMENT CO., INC. STATEMENTS OF CASH FLOWS (unaudited) For the six months ended December 31, 1996 1995 ------------- ------------- Cash flows from operating activities Cash received from land sales and collections on real estate contracts receivable ............... $ 1,393,672 $ 1,931,595 Cash paid to develop real estate ............ (514,467) (433,976) Cash received from rental operations ........ 265,250 213,850 Cash paid for rental operations ............. (3,918) (5,099) Cash paid for property taxes and maintenance .......................... (55,603) (92,115) Interest received ........................... 75,208 57,246 Interest paid ............................... (305,307) (188,128) Income taxes paid ........................... (261,999) (200,050) Legal and other general and administrative costs paid ................. (865,793) (1,186,458) Other ....................................... 985 36,677 ----------- ----------- Net cash provided (used) by operating activities ...................... (271,972) 133,542 ----------- ----------- Cash flows from investing activities Capital expenditures for income producing and other properties ............ (994,178) (440,297) Proceeds from sale of assets ................ 1,873 150 ----------- ----------- Net cash used by investing activities ...... (992,305) (440,147) ----------- ----------- Cash flows from financing activities Borrowing on notes, mortgages and assessments payable ...................... 1,473,785 646,200 Proceeds from sale of stock .................. 41,325 96,425 Repayments of bonds, mortgages, notes and assessments payable ............. (1,021,607) (78,496) Payment of dividends ......................... (480,125) (475,625) ----------- ----------- Net cash provided by (used) in financing activities ................... 13,378 188,504 ----------- ----------- NET INCREASE (DECREASE)IN CASH AND CASH EQUIVALENTS ....................... (1,250,899) (118,101) Cash and cash equivalents at beginning of period ........................ 2,167,741 1,917,803 ----------- ----------- Cash and cash equivalents at end of period .............................. $ 916,842 $ 1,799,702 =========== =========== Reconciliation of net earnings (loss) to net cash used in operating activities Net loss ..................................... $ (91,619) $ (123,745) Adjustments to reconcile net earnings(loss)to net cash used in operating activities Depreciation ............................ 71,905 85,125 Collection on real estate contracts receivable .................. 264,154 457,982 Profit recognized on prior years' installment sales .............. (22,123) (18,860) Gain on sale of assets .................. (1,752) (150) Change in Rents receivable, accrued interest, property tax and other ................ (31,004) 163,827 Land and improvements held for future development and income producing properties .................. (211,585) 141,351 Other assets ............................ 92,849 (92,863) Accounts and retainages payable, accrued interest and other liabilities .......................... (342,797) (479,125) ----------- ----------- Net cash provided (used) by operating activities ....................... $ (271,972) $ 133,542 =========== =========== WESTLAND DEVELOPMENT CO., INC. NOTES TO THE FINANCIAL STATEMENTS (unaudited) December 31, 1996 1. The balance sheet at December 31, 1996, statements of cash flows for the six months ended December 31, 1996 and 1995 and statements of operations for the six and three month periods ended December 31, 1996 and 1995 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 principals 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, 1996. The results of operations for the six months ended December 31, 1996 are not necessarily indicative of operating results for the full year. 2. The computation of net earnings (loss) per common and common equivalent share has been based on the weighted average number of shares of outstanding common stock and common stock issuable without further consideration (referred to as equivalents), which for the six and three month periods ended December 31, 1996 were 801,689 and 802,708, respectively and for the six and three month periods ended December 31, 1995 were 790,643 and 794,393, respectively. ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS During the six months ended December 31, 1996, the Company's cash and cash equivalents decreased by $1,250,899. During this period, the Company received $41,325 from the sale of stock, invested $992,305, net, in fixed and other assets, retired $1,021,607 of debt, borrowed $1,473,785 and paid dividends in the amount of $480,125. Operations used $271,992. During the second quarter of the current fiscal year, the Company had revenue of $1,131,141 compared to $632,582 for the same quarter in the prior fiscal year. Operating expenses for the quarter were $688,102 compared to $762,402 for the same period in 1995. Revenue for the six months ended December 31, 1996 was $1,450,040 compared to $1,499,016 in 1995 and operating expenses were $1,327,670 in 1996 and $1,542,159 in 1995. In April 1995, the Company began selling small improved residential lots in addition to the large tracts it had sold in the past. These sales amounted to approximately $747,000 and added $444,000 to the cost of sales in 1995, but increased sales and cost of sales by $239,000 and $115,000, respectively, in 1996. The Company may expend approximately $900,000 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. 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-K. (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 13, 1996 By: Barbara Page --------------------------- Barbara Page, President, Chief Executive Officer and Chief Accounting Officer EX-27 2
5 6-MOS JUN-30-1997 DEC-31-1996 916842 0 198209 0 5328006 0 8211696 612350 15067128 0 6888896 94600 0 0 4572610 15067128 1158486 1450040 303684 353835 1264691 0 290856 (152506) (60887) (91619) 0 0 0 (91619) (0.11) (0.11)
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