-----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, EJU6icSS6rC/bvg0DNUc2jKmTARwM0FQuw0o9DtYUsC5TP5NpxDtLqBMmfqvTgIw Ubf6eEcWGlcU2LkCPovJoQ== 0001008878-98-000025.txt : 19980518 0001008878-98-000025.hdr.sgml : 19980518 ACCESSION NUMBER: 0001008878-98-000025 CONFORMED SUBMISSION TYPE: 10QSB PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19980331 FILED AS OF DATE: 19980515 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: SEC FILE NUMBER: 000-07775 FILM NUMBER: 98621762 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 March 31, 1998 [ ]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 13, 1998: 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, 1998 ASSETS Cash and cash equivalents ........................ $ 2,813,448 Receivables: Real estate contracts ......................... $ 68,986 Less related deferred profit ............. 36,585 ------------ 32,401 Income taxes recoverable....................... 155,001 Note receivable - related party ............... 66,225 Other receivables ............................. 217,157 470,784 ------------ Land and improvements held for future development ............................ 6,467,688 Income producing properties, net ................. 6,978,965 Property and equipment, net of accumulated depreciation of $435,674 ...................... 373,095 Investment in Partnerships and joint ventures .... 352,154 Other ............................................ 126,563 ------------ $ 17,582,697 ============ LIABILITIES AND STOCKHOLDER'S EQUITY Accounts payable, accrued expenses and other liabilities ......................... $ 325,325 Deferred income taxes ............................ 4,612,000 Notes, bonds, mortgages and assessments payable .. 6,574,842 ------------ Total liabilities ............... 11,512,167 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 ............................. 5,394,403 6,070,530 ------------ ------------ $ 17,582,697 ============ WESTLAND DEVELOPMENT CO., INC. STATEMENTS OF OPERATIONS (unaudited) For the three months ended March 31, 1998 1997 ---------- ---------- Revenues Land ...................................... $2,286,529 $ 34,793 Deferred profit recognized on installment sales .................... 7,211 4,493 Rentals ................................... 174,096 173,120 ---------- ---------- 2,467,836 212,406 Costs and expenses Cost of land revenues ..................... 192,230 (19,321) Cost of rentals ........................... 54,084 47,817 Other general and administrative .......... 490,126 445,648 Legal ..................................... 415 3,125 ---------- ---------- 736,855 477,269 ---------- ---------- Income (loss) from operations .......... 1,730,981 (264,863) Other (income) expense Interest income ........................... (11,555) (10,234) Loss on sale of property and equipment ............................ 371 -- Other (income) loss ....................... (4,090) 1,650 Interest expense .......................... 158,869 153,154 ---------- ---------- 143,595 144,570 ---------- ---------- Earnings (loss) before income taxes..... 1,587,386 (409,433) Income tax expense (benefit) ................. 635,000 (163,280) ---------- ---------- NET EARNINGS (LOSS) .................... $ 952,386 $ (246,153) ========== ========== Weighted average common and common equivalent shares outstanding, basic and diluted ............ 802,708 802,708 ========== ========== Basic and diluted earnings (loss) per common share ................... $ 1.19 $ (.31) ========== ========== WESTLAND DEVELOPMENT CO., INC. STATEMENTS OF OPERATIONS (unaudited) For the nine months ended March 31, 1998 1997 ---------- ---------- Revenues Land ...................................... $3,943,021 $1,373,279 Deferred profit recognized on installment sales .................... 14,422 26,616 Rentals ................................... 522,689 442,551 ---------- ---------- 4,480,132 1,842,446 Costs and expenses Cost of land revenues ..................... 369,778 286,146 Cost of rentals ........................... 163,559 97,968 Other general and administrative .......... 1,649,976 1,416,350 Legal ..................................... 2,655 6,258 ---------- ---------- 2,185,968 1,806,722 ---------- ---------- Income from operations ................. 2,294,164 35,724 Other (income) expense Interest income ........................... (63,581) (61,376) Gain on sale of property and equipment ............................ (629) (1,752) Other (income) loss ....................... 13,165 38,564 Interest expense .......................... 480,759 444,010 ---------- ---------- 429,714 419,446 ---------- ---------- Earnings (loss) before income taxes..... 1,864,450 (383,722) Income tax expense (benefit) ................. 746,000 (153,000) ---------- ---------- NET EARNINGS (LOSS) .................... $1,118,450 $ (230,722) ========== ========== Weighted average common and common equivalent shares outstanding, basic and diluted ............ 802,708 802,024 ========== ========== Basic and diluted earnings (loss) per common share .................. $ 1.39 $ (.29) ========== ========== WESTLAND DEVELOPMENT CO., INC. STATEMENTS OF CASH FLOWS (unaudited) For the nine months ended March 31, 1998 1997 ------------ ------------ Cash flows from operating activities Cash received from land sales and collections on real estate contracts receivable ................. $ 3,803,977 $ 1,588,331 Development and closing costs paid on land sales ............................... (714,673) (824,545) Cash received from rental operations .......... 525,019 441,420 Cash paid for rental operations ............... (4,554) (3,975) Cash received (paid) for property taxes ....... 2,347 (57,828) Interest received ............................. 64,473 81,021 Interest paid ................................. (515,950) (434,096) Income taxes paid ............................. (150,000) (262,000) Legal and other general and administrative costs paid ................... (1,405,965) (1,295,883) Other ......................................... (18,585) 6,600 ------------ ------------ Net cash provided (used) by operating activities ........................ 1,586,089 (760,955) ------------ ------------ Cash flows from investing activities Capital expenditures for income producing and other properties .............. (40,714) (893,790) Proceeds from sale of assets .................. 3,000 1,873 Cash distributions from (investment in) partnerships, net ............. 13,000 (110,445) ------------ ------------ Net cash used by investing activities ........ (24,714) (1,002,362) ------------ ------------ Cash flows from financing activities Borrowing on notes, mortgages and assessments payable ......................... 692,064 1,811,148 Proceeds from sale of stock ................... -- 41,325 Repayments of bonds, mortgages, notes and assessments payable ............... (1,169,110) (1,079,619) Payment of dividends .......................... (602,031) (480,125) ------------ ------------ Net cash provided by (used in) financing activities ....................... (1,079,077) 292,729 ------------ ------------ NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS .................... 482,298 (1,470,588) Cash and cash equivalents at beginning of period .......................... 2,331,150 2,167,741 ------------ ------------ Cash and cash equivalents at end of period ................................ $ 2,813,448 $ 697,153 ============ ============ Reconciliation of net earnings (loss) to net cash provided (used) by operating activities Net earnings (loss) ............................ $ 1,118,450 $ (230,722) Adjustments to reconcile net earnings (loss) to net cash provided (used) by operating activities Depreciation .............................. 201,730 132,808 Profit recognized on prior years' installment sales ................ (14,422) (26,617) Gain on sale of assets..................... (629) (1,752) Change in assets and liabilities Income taxes recoverable/payable .......... 596,000 -- Rents receivable, accrued interest, property tax and other assets ........... (73,335) (43,323) Real estate contracts ..................... 47 272,664 Land and improvements held for future development ...................... (435,058) (539,208) Other assets .............................. 86,414 68,958 Accounts and retainages payable, accrued interest and other liabilities ............................. 106,892 (393,763) ------------ ------------ Net cash provided (used) by operating activities ......................... $ 1,586,089 $ (760,955) ============ ============ WESTLAND DEVELOPMENT CO., INC. NOTES TO THE FINANCIAL STATEMENTS (unaudited) March 31, 1998 1. The balance sheet at March 31, 1998, statements of cash flows for the nine month periods ended March 31, 1998 and March 31, 1997 and statements of operations for the three and nine month periods ended March 31, 1998 and March 31, 1997 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, 1997. The results of operations for the nine months ended March 31, 1998 are not necessarily indicative of operating results for the full year. 2. The computation of net earnings (loss) 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 nine and three month periods ended March 31, 1998 and three month period ended March 31, 1997 were 802,708 and for the nine month period ended March 31, 1997 were 802,024. 3. The Company adopted Statement of Financial Accounting Standards number 128, Earnings Per Share, during the quarter ended December 31, 1997. Since the Company has only common stock outstanding, the adoption had no effect on the Company's financial statements. ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS During the nine months ended March 31, 1998, the Company's cash and cash equivalents increased by $ 482,298. During this period, operations provided $1,586,089, the Company invested $24,714, net, in fixed and other assets, retired $1,169,110 of debt, borrowed $692,064 and paid dividends in the amount of $602,031. During the third quarter of the current fiscal year, the Company had revenues of $2,467,836 compared to $212,406 during the same period in the prior fiscal year. Operating costs and expenses during the three months ended March 31, 1998, were $736,855 compared to $477,269 during the comparable period in 1997. For the year to date, the Company earned revenues of $4,480,132 compared to $1,842,446 in 1997. The primary reason for the increase is the sale to the National Park Service of a single tract for $1,507,600. Operating costs and expenses for the current fiscal year to date are $2,185,968 compared to $1,806,722 in 1997. The difference arises from increased non recurring expenses in the 1st quarter of this fiscal year. The Company may expend approximately $2,300,000 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-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: May 13, 1998 By: Barbara Page --------------------------- Barbara Page, President, Chief Executive Officer and Chief Accounting Officer EX-27 2
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