-----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, TdpYnXxtwoaiYrj+A9st4X6tgrdzMW6WY+Obx3GnTLxe6FcJ4LBcrh6EJmUlJ9Al ufNrX5WnVTw7wtOvGg5qeA== 0001008878-97-000014.txt : 19970513 0001008878-97-000014.hdr.sgml : 19970513 ACCESSION NUMBER: 0001008878-97-000014 CONFORMED SUBMISSION TYPE: 10QSB PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19970331 FILED AS OF DATE: 19970512 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: 97601106 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 March 31, 1997 [ ]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 May 12, 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) March 31, 1997 ASSETS Cash and cash equivalents .......................... $ 697,153 Receivables: Real estate contracts ........................... $ 90,996 Less related deferred profit ............... 69,950 ----------- 21,046 Note receivable - related party ................. 68,566 Other receivables ............................... 116,338 Accrued interest ................................ 563 206,513 ----------- Land and improvements held for future development .............................. 5,655,629 Income producing properties, net ................... 7,154,234 Property and equipment, net of accumulated depreciation of $388,444 ........................ 388,108 Investment in Partnerships and joint ventures ...... 524,947 Other .............................................. 529,826 ----------- $15,156,410 =========== LIABILITIES AND STOCKHOLDER'S EQUITY Accounts payable, accrued expenses and other liabilities ........................... $ 158,462 Accrued interest payable ........................... 65,253 Deferred income taxes .............................. 3,233,000 Notes, bonds, mortgages and assessments payable .... 7,171,588 ----------- Total liabilities ................. 10,628,303 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 ............................... 3,851,980 4,528,107 ----------- ----------- $15,156,410 =========== WESTLAND DEVELOPMENT CO., INC. STATEMENTS OF OPERATIONS (unaudited) For the three months ended March 31, 1997 1996 ----------- ----------- Revenues Land ...................................... $ 34,793 $ 465,617 Deferred profit recognized on installment sales .................... 4,493 9,049 Rentals ................................... 173,120 117,978 ----------- ----------- 212,406 592,644 Costs and expenses Cost of land revenues ..................... (19,321) 158,144 Cost of rentals ........................... 47,817 35,771 Other general and administrative .......... 445,648 416,857 Legal ..................................... 3,125 16,869 ----------- ----------- 477,269 627,641 ----------- ----------- Operating loss ......................... (264,863) (34,997) Other (income) expense Interest income ........................... (10,234) (13,966) Gain on sale of property and equipment ............................ -- (50) Other income .............................. -- (17,468) Interest expense .......................... 153,154 83,949 Equity in losses of partnerships .......... 1,650 4,919 ----------- ----------- 144,570 57,384 ----------- ----------- Loss before income taxes ............... (409,433) (92,381) Income tax expense (benefit) ................. (163,280) -- ----------- ----------- NET LOSS ............................... $ (246,153) $ (92,381) =========== =========== Weighted average common and common equivalent shares outstanding ............................... 802,708 795,208 =========== =========== Net earnings (loss) per common and common equivalent share ................... $ (.31) $ (.12) =========== =========== WESTLAND DEVELOPMENT CO., INC. STATEMENTS OF OPERATIONS (unaudited) For the nine months ended March 31, 1997 1996 ----------- ----------- Revenues Land .................................... $ 1,373,279 $ 1,763,517 Deferred profit recognized on installment sales .................. 26,616 27,909 Rentals ................................. 442,551 300,234 ----------- ----------- 1,842,446 2,091,660 Costs and expenses Cost of land revenues ................... 286,146 648,342 Cost of rentals ......................... 97,968 102,290 Other general and administrative ........ 1,416,350 1,355,105 Legal ................................... 6,258 64,063 ----------- ----------- 1,806,722 2,169,800 ----------- ----------- Operating income (loss) .............. 35,724 (78,140) Other (income) expense Interest income ......................... (61,376) (82,186) Gain on sale of property and equipment .......................... (1,752) (200) Other income ............................ -- (50,793) Interest expense ........................ 444,010 264,598 Equity in losses of partnerships ........ 38,564 6,567 ----------- ----------- 419,446 137,986 ----------- ----------- Loss before income taxes ............. (383,722) (216,126) Income tax expense (benefit) ............... (153,000) -- ----------- ----------- NET LOSS ............................. $ (230,722) $ (216,126) =========== =========== Weighted average common and common equivalent shares outstanding ............................. 802,024 792,153 =========== =========== Net earnings (loss) per common and common equivalent share ................. $ (.29) $ (.27) =========== =========== WESTLAND DEVELOPMENT CO., INC. STATEMENTS OF CASH FLOWS (unaudited) For the nine months ended March 31, 1997 1996 ----------- ----------- Cash flows from operating activities Cash received from land sales and collections on real estate contracts receivable ............... $ 1,588,331 $ 2,411,213 Cash paid to develop real estate ............ (824,545) (522,298) Cash received from rental operations ........ 441,420 292,510 Cash paid for rental operations ............. (3,975) (3,336) Cash paid for property taxes and maintenance .......................... (57,828) (97,440) Interest received ........................... 81,021 70,192 Interest paid ............................... (434,096) (260,804) Income taxes paid ........................... (262,000) (214,113) Legal and other general and administrative costs paid ................. (1,295,883) (1,508,744) Other ....................................... 6,600 49,226 ----------- ----------- Net cash provided (used) by operating activities ...................... (760,955) 216,406 ----------- ----------- Cash flows from investing activities Capital expenditures for income producing and other properties ............ (893,790) (53,683) Proceeds from sale of assets ................ 1,873 200 Investment in Partnerships .................. (110,445) (486,166) ----------- ----------- Net cash used by investing activities ...... (1,002,362) (539,649) ----------- ----------- Cash flows from financing activities Borrowing on notes, mortgages and assessments payable ...................... 1,811,148 646,200 Proceeds from sale of stock .................. 41,325 96,425 Repayments of bonds, mortgages, notes and assessments payable ............. (1,079,619) (142,656) Payment of dividends ......................... (480,125) (475,625) ----------- ----------- Net cash provided by (used) in financing activities ................... 292,729 124,344 ----------- ----------- NET DECREASE IN CASH AND CASH EQUIVALENTS ....................... (1,470,588) (198,899) Cash and cash equivalents at beginning of period ........................ 2,167,741 1,917,803 ----------- ----------- Cash and cash equivalents at end of period .............................. $ 697,153 $ 1,718,904 =========== =========== Reconciliation of net earnings (loss) to net cash used in operating activities Net loss ..................................... $ (230,722) $ (216,126) Adjustments to reconcile net earnings(loss)to net cash used in operating activities Depreciation ............................ 132,808 127,971 Collection on real estate contracts receivable .................. 272,664 471,983 Profit recognized on prior years' installment sales .............. (26,617) (27,909) Gain on sale of assets .................. (1,752) (200) Change in Rents receivable, accrued interest, property tax and other ................ (43,323) 174,456 Land and improvements held for future development and income producing properties .................. (539,208) 203,110 Other assets ............................ 67,958 (143,967) Accounts and retainages payable, accrued interest and other liabilities .......................... (393,763) (372,912) ----------- ----------- Net cash provided (used) by operating activities ....................... $ (760,955) $ 216,406 =========== =========== WESTLAND DEVELOPMENT CO., INC. NOTES TO THE FINANCIAL STATEMENTS (unaudited) March 31, 1997 1. The balance sheet at March 31, 1997, statements of cash flows for the nine months ended March 31, 1997 and 1996 and statements of operations for the nine and three month periods ended March 31, 1997 and 1996 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 nine months ended March 31, 1997 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 nine and three month periods ended March 31, 1997 were 802,024 and 802,708, respectively and for the nine and three month periods ended March 31, 1996 were 792,153 and 795,208, respectively. ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS During the nine months ended March 31, 1997, the Company's cash and cash equivalents decreased by $1,470,587. During this period, the Company received $41,325 from the sale of stock, invested $1,002,362, net, in fixed and other assets, retired $1,079,619 of debt, borrowed $1,811,148 and paid dividends in the amount of $480,125. Operations used $760,955. During the third quarter of the current fiscal year, the Company had revenue of $212,406 compared to $592,644 for the same quarter in the prior fiscal year. Operating expenses for the quarter were $496,590 compared to $627,641 for the same period in 1996. Revenue for the nine months ended March 31, 1997 was $1,842,446 compared to $2,091,660 in 1996 and operating expenses were $1,806,722 in 1997 and $2,169,800 in 1996. Revenue in 1997 is lower due to decreased levels of land sales. The Company may expend approximately $830,000 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: May 12, 1997 By: Barbara Page --------------------------- Barbara Page, President, Chief Executive Officer and Chief Accounting Officer EX-27 2
5 9-MOS JUN-30-1997 MAR-31-1997 697153 0 206513 0 5655629 0 8215594 673253 15156410 0 7171588 94600 0 0 4433507 15156410 1373279 1842446 286146 384114 1866618 0 444010 (383722) (153000) (230722) 0 0 0 (230722) (0.29) (0.29)
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