UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
[X] Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
For the quarterly period ended March 31, 2013
or
[ ] Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Commission File Number 1-5103
BARNWELL INDUSTRIES, INC.
(Exact name of registrant as specified in its charter)
|
DELAWARE |
|
72-0496921 |
|
(State or other jurisdiction of incorporation or organization) |
|
(I.R.S. Employer Identification No.) |
|
|
1100 Alakea Street, Suite 2900, Honolulu, Hawaii |
96813 |
|
|
|
(Address of principal executive offices) |
(Zip code) |
|
(808) 531-8400
(Registrant’s telephone number, including area code)
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. S Yes o No
Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). S Yes o No
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.
|
Large accelerated filer |
o |
Accelerated filer o |
|
Non-accelerated filer |
o (Do not check if a smaller reporting company) |
Smaller reporting company S |
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). o Yes S No
As of May 10, 2013 there were 8,277,160 shares of common stock, par value $0.50, outstanding.
BARNWELL INDUSTRIES, INC.
AND SUBSIDIARIES
PART I - FINANCIAL INFORMATION
BARNWELL INDUSTRIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
|
|
March 31, |
|
September 30, | ||||||
|
|
2013 |
|
2012 | ||||||
|
ASSETS |
|
|
|
|
|
|
| ||
|
Current assets: |
|
|
|
|
|
|
| ||
|
Cash and cash equivalents |
|
$ |
8,316,000 |
|
|
|
$ |
8,845,000 |
|
|
Accounts receivable, net of allowance for doubtful accounts of: |
|
|
|
|
|
|
| ||
|
$44,000 at March 31, 2013; $45,000 at September 30, 2012 |
|
4,363,000 |
|
|
|
3,600,000 |
| ||
|
Prepaid expenses |
|
496,000 |
|
|
|
361,000 |
| ||
|
Real estate held for sale |
|
5,448,000 |
|
|
|
5,309,000 |
| ||
|
Other current assets |
|
649,000 |
|
|
|
770,000 |
| ||
|
|
|
|
|
|
|
|
| ||
|
Total current assets |
|
19,272,000 |
|
|
|
18,885,000 |
| ||
|
|
|
|
|
|
|
|
| ||
|
Investments |
|
2,381,000 |
|
|
|
2,381,000 |
| ||
|
|
|
|
|
|
|
|
| ||
|
Property and equipment |
|
252,009,000 |
|
|
|
256,153,000 |
| ||
|
Accumulated depletion, depreciation, and amortization |
|
(210,580,000 |
) |
|
|
(207,529,000 |
) | ||
|
Property and equipment, net |
|
41,429,000 |
|
|
|
48,624,000 |
| ||
|
|
|
|
|
|
|
|
| ||
|
Total assets |
|
$ |
63,082,000 |
|
|
|
$ |
69,890,000 |
|
|
|
|
|
|
|
|
|
| ||
|
LIABILITIES AND EQUITY |
|
|
|
|
|
|
| ||
|
Current liabilities: |
|
|
|
|
|
|
| ||
|
Accounts payable |
|
$ |
2,965,000 |
|
|
|
$ |
2,680,000 |
|
|
Accrued capital expenditures |
|
1,757,000 |
|
|
|
341,000 |
| ||
|
Accrued incentive and other compensation |
|
1,469,000 |
|
|
|
1,593,000 |
| ||
|
Payable to joint interest owners |
|
682,000 |
|
|
|
854,000 |
| ||
|
Income taxes payable |
|
78,000 |
|
|
|
- |
| ||
|
Current portion of long-term debt |
|
4,903,000 |
|
|
|
5,764,000 |
| ||
|
Other current liabilities |
|
3,381,000 |
|
|
|
3,083,000 |
| ||
|
|
|
|
|
|
|
|
| ||
|
Total current liabilities |
|
15,235,000 |
|
|
|
14,315,000 |
| ||
|
|
|
|
|
|
|
|
| ||
|
Long-term debt |
|
12,000,000 |
|
|
|
11,400,000 |
| ||
|
|
|
|
|
|
|
|
| ||
|
Liability for retirement benefits |
|
5,039,000 |
|
|
|
5,114,000 |
| ||
|
|
|
|
|
|
|
|
| ||
|
Asset retirement obligation |
|
5,554,000 |
|
|
|
5,629,000 |
| ||
|
|
|
|
|
|
|
|
| ||
|
Deferred income taxes |
|
1,563,000 |
|
|
|
3,307,000 |
| ||
|
|
|
|
|
|
|
|
| ||
|
Total liabilities |
|
39,391,000 |
|
|
|
39,765,000 |
| ||
|
|
|
|
|
|
|
|
| ||
|
Commitments and contingencies (Note 11) |
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
| ||
|
Equity: |
|
|
|
|
|
|
| ||
|
Common stock, par value $0.50 per share; authorized, 20,000,000 shares: |
|
|
|
|
|
|
| ||
|
8,445,060 issued at March 31, 2013 and September 30, 2012 |
|
4,223,000 |
|
|
|
4,223,000 |
| ||
|
Additional paid-in capital |
|
1,289,000 |
|
|
|
1,289,000 |
| ||
|
Retained earnings |
|
18,405,000 |
|
|
|
24,095,000 |
| ||
|
Accumulated other comprehensive income, net |
|
1,482,000 |
|
|
|
2,322,000 |
| ||
|
Treasury stock, at cost: |
|
|
|
|
|
|
| ||
|
167,900 shares at March 31, 2013 and September 30, 2012 |
|
(2,286,000 |
) |
|
|
(2,286,000 |
) | ||
|
|
|
|
|
|
|
|
| ||
|
Total stockholders’ equity |
|
23,113,000 |
|
|
|
29,643,000 |
| ||
|
Non-controlling interests |
|
578,000 |
|
|
|
482,000 |
| ||
|
|
|
|
|
|
|
|
| ||
|
Total equity |
|
23,691,000 |
|
|
|
30,125,000 |
| ||
|
|
|
|
|
|
|
|
| ||
|
Total liabilities and equity |
|
$ |
63,082,000 |
|
|
|
$ |
69,890,000 |
|
See Notes to Condensed Consolidated Financial Statements
BARNWELL INDUSTRIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
|
|
Three months ended |
|
Six months ended | ||||||||||||||||
|
|
March 31, |
|
March 31, | ||||||||||||||||
|
|
2013 |
|
2012 |
|
2013 |
|
2012 | ||||||||||||
|
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
Oil and natural gas |
|
$ |
5,605,000 |
|
|
|
$ |
6,408,000 |
|
|
|
$ |
11,245,000 |
|
|
|
$ |
14,197,000 |
|
|
Contract drilling |
|
703,000 |
|
|
|
281,000 |
|
|
|
1,420,000 |
|
|
|
706,000 |
| ||||
|
Sale of interest in leasehold land, net |
|
282,000 |
|
|
|
353,000 |
|
|
|
282,000 |
|
|
|
353,000 |
| ||||
|
Gas processing and other |
|
179,000 |
|
|
|
124,000 |
|
|
|
373,000 |
|
|
|
412,000 |
| ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
|
|
6,769,000 |
|
|
|
7,166,000 |
|
|
|
13,320,000 |
|
|
|
15,668,000 |
| ||||
|
Costs and expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
Oil and natural gas operating |
|
3,049,000 |
|
|
|
2,792,000 |
|
|
|
5,042,000 |
|
|
|
5,533,000 |
| ||||
|
Contract drilling operating |
|
653,000 |
|
|
|
460,000 |
|
|
|
1,261,000 |
|
|
|
1,097,000 |
| ||||
|
General and administrative |
|
2,107,000 |
|
|
|
2,367,000 |
|
|
|
4,249,000 |
|
|
|
4,213,000 |
| ||||
|
Depletion, depreciation, and amortization |
|
2,332,000 |
|
|
|
2,806,000 |
|
|
|
5,011,000 |
|
|
|
5,715,000 |
| ||||
|
Reduction of carrying value of assets |
|
2,179,000 |
|
|
|
1,854,000 |
|
|
|
4,506,000 |
|
|
|
1,854,000 |
| ||||
|
Interest expense |
|
144,000 |
|
|
|
219,000 |
|
|
|
296,000 |
|
|
|
438,000 |
| ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
|
|
10,464,000 |
|
|
|
10,498,000 |
|
|
|
20,365,000 |
|
|
|
18,850,000 |
| ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
Loss before income taxes |
|
(3,695,000 |
) |
|
|
(3,332,000 |
) |
|
|
(7,045,000 |
) |
|
|
(3,182,000 |
) | ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
Income tax (benefit) provision |
|
(772,000 |
) |
|
|
(3,000 |
) |
|
|
(1,336,000 |
) |
|
|
487,000 |
| ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
Net loss |
|
(2,923,000 |
) |
|
|
(3,329,000 |
) |
|
|
(5,709,000 |
) |
|
|
(3,669,000 |
) | ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
Less: Net earnings (loss) attributable to non-controlling interests |
|
21,000 |
|
|
|
(348,000 |
) |
|
|
(19,000 |
) |
|
|
(406,000 |
) | ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
Net loss attributable to Barnwell Industries, Inc. |
|
$ |
(2,944,000 |
) |
|
|
$ |
(2,981,000 |
) |
|
|
$ |
(5,690,000 |
) |
|
|
$ |
(3,263,000 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic net loss per common share attributable to Barnwell Industries, Inc. stockholders |
|
$ |
(0.36 |
) |
|
|
$ |
(0.36 |
) |
|
|
$ |
(0.69 |
) |
|
|
$ |
(0.39 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
Diluted net loss per common share attributable to Barnwell Industries, Inc. stockholders |
|
$ |
(0.36 |
) |
|
|
$ |
(0.36 |
) |
|
|
$ |
(0.69 |
) |
|
|
$ |
(0.39 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
Weighted-average number of common shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
Basic |
|
8,277,160 |
|
|
|
8,277,160 |
|
|
|
8,277,160 |
|
|
|
8,277,160 |
| ||||
|
Diluted |
|
8,277,160 |
|
|
|
8,277,160 |
|
|
|
8,277,160 |
|
|
|
8,277,160 |
| ||||
See Notes to Condensed Consolidated Financial Statements
BARNWELL INDUSTRIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS
(Unaudited)
|
|
Three months ended |
|
Six months ended | ||||||||||||||||
|
|
March 31, |
|
March 31, | ||||||||||||||||
|
|
2013 |
|
2012 |
|
2013 |
|
2012 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
Net loss |
|
$ |
(2,923,000 |
) |
|
|
$ |
(3,329,000 |
) |
|
|
$ |
(5,709,000 |
) |
|
|
$ |
(3,669,000 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
Other comprehensive (loss) income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
Foreign currency translation adjustments, net of taxes of $0 |
|
(600,000 |
) |
|
|
662,000 |
|
|
|
(970,000 |
) |
|
|
1,443,000 |
| ||||
|
Retirement plans - amortization of accumulated other comprehensive loss into net periodic benefit cost, net of taxes of $0 |
|
65,000 |
|
|
|
65,000 |
|
|
|
130,000 |
|
|
|
130,000 |
| ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
Total other comprehensive (loss) income |
|
(535,000 |
) |
|
|
727,000 |
|
|
|
(840,000 |
) |
|
|
1,573,000 |
| ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
Total comprehensive loss |
|
(3,458,000 |
) |
|
|
(2,602,000 |
) |
|
|
(6,549,000 |
) |
|
|
(2,096,000 |
) | ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
Less: Comprehensive income (loss) attributable to non-controlling interests |
|
21,000 |
|
|
|
(348,000 |
) |
|
|
(19,000 |
) |
|
|
(406,000 |
) | ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
Comprehensive loss attributable to Barnwell Industries, Inc. |
|
$ |
(3,479,000 |
) |
|
|
$ |
(2,254,000 |
) |
|
|
$ |
(6,530,000 |
) |
|
|
$ |
(1,690,000 |
) |
See Notes to Condensed Consolidated Financial Statements
BARNWELL INDUSTRIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
|
|
Six months ended | ||||||||
|
|
March 31, | ||||||||
|
|
2013 |
|
2012 | ||||||
|
Cash flows from operating activities: |
|
|
|
|
|
|
| ||
|
Net loss |
|
$ |
(5,709,000 |
) |
|
|
$ |
(3,669,000 |
) |
|
Adjustments to reconcile net loss to net cash provided by operating activities: |
|
|
|
|
|
|
| ||
|
Depletion, depreciation, and amortization |
|
5,011,000 |
|
|
|
5,715,000 |
| ||
|
Reduction of carrying value of assets |
|
4,506,000 |
|
|
|
1,854,000 |
| ||
|
Retirement benefits expense |
|
308,000 |
|
|
|
364,000 |
| ||
|
Accretion of asset retirement obligation |
|
190,000 |
|
|
|
174,000 |
| ||
|
Gain on sale of drilling equipment |
|
- |
|
|
|
(40,000 |
) | ||
|
Deferred income tax benefit |
|
(1,680,000 |
) |
|
|
(176,000 |
) | ||
|
Asset retirement obligation payments |
|
(133,000 |
) |
|
|
(281,000 |
) | ||
|
Share-based compensation benefit |
|
(41,000 |
) |
|
|
(68,000 |
) | ||
|
Retirement plan contributions |
|
(253,000 |
) |
|
|
(673,000 |
) | ||
|
Sale of interest in leasehold land, net |
|
(282,000 |
) |
|
|
(353,000 |
) | ||
|
Real estate held for sale |
|
(139,000 |
) |
|
|
- |
| ||
|
(Decrease) increase from changes in current assets and liabilities |
|
(270,000 |
) |
|
|
180,000 |
| ||
|
|
|
|
|
|
|
|
| ||
|
Net cash provided by operating activities |
|
1,508,000 |
|
|
|
3,027,000 |
| ||
|
|
|
|
|
|
|
|
| ||
|
Cash flows from investing activities: |
|
|
|
|
|
|
| ||
|
Proceeds from sale of interest in leasehold land, net of fees paid |
|
282,000 |
|
|
|
375,000 |
| ||
|
Proceeds from gas over bitumen royalty adjustments |
|
24,000 |
|
|
|
40,000 |
| ||
|
Proceeds from sale of drilling equipment, net |
|
- |
|
|
|
59,000 |
| ||
|
Capital expenditures - oil and natural gas |
|
(2,127,000 |
) |
|
|
(4,304,000 |
) | ||
|
Capital expenditures - all other |
|
(2,000 |
) |
|
|
(27,000 |
) | ||
|
|
|
|
|
|
|
|
| ||
|
Net cash used in investing activities |
|
(1,823,000 |
) |
|
|
(3,857,000 |
) | ||
|
|
|
|
|
|
|
|
| ||
|
Cash flows from financing activities: |
|
|
|
|
|
|
| ||
|
Proceeds from long-term debt borrowings |
|
503,000 |
|
|
|
- |
| ||
|
Repayments of long-term debt |
|
(757,000 |
) |
|
|
(670,000 |
) | ||
|
Contributions from non-controlling interests |
|
115,000 |
|
|
|
240,000 |
| ||
|
|
|
|
|
|
|
|
| ||
|
Net cash used in financing activities |
|
(139,000 |
) |
|
|
(430,000 |
) | ||
|
|
|
|
|
|
|
|
| ||
|
Effect of exchange rate changes on cash and cash equivalents |
|
(75,000 |
) |
|
|
25,000 |
| ||
|
|
|
|
|
|
|
|
| ||
|
Net decrease in cash and cash equivalents |
|
(529,000 |
) |
|
|
(1,235,000 |
) | ||
|
Cash and cash equivalents at beginning of period |
|
8,845,000 |
|
|
|
9,834,000 |
| ||
|
|
|
|
|
|
|
|
| ||
|
Cash and cash equivalents at end of period |
|
$ |
8,316,000 |
|
|
|
$ |
8,599,000 |
|
See Notes to Condensed Consolidated Financial Statements
BARNWELL INDUSTRIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF EQUITY
Three months ended March 31, 2013 and 2012
(Unaudited)
|
|
|
|
|
|
|
|
|
|
Accumulated |
|
|
|
|
|
|
| |||||||||||||||||||||||
|
|
|
|
|
|
Additional |
|
|
|
Other |
|
|
|
|
|
| ||||||||||||||||||||||||
|
|
Shares |
|
Common |
|
Paid-In |
|
Retained |
|
Comprehensive |
|
Treasury |
|
Non-controlling |
|
Total | ||||||||||||||||||||||||
|
|
Outstanding |
|
Stock |
|
Capital |
|
Earnings |
|
Income |
|
Stock |
|
Interests |
|
Equity | ||||||||||||||||||||||||
|
Balance at December 31, 2011 |
|
|
8,277,160 |
|
|
|
$ |
4,223,000 |
|
|
|
$ |
1,289,000 |
|
|
|
$ |
33,949,000 |
|
|
|
$ |
1,136,000 |
|
|
|
$ |
(2,286,000 |
) |
|
|
$ |
1,029,000 |
|
|
|
$ |
39,340,000 |
|
|
Contributions from non-controlling interests |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
120,000 |
|
|
|
120,000 |
| |||||||
|
Net loss |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2,981,000 |
) |
|
|
|
|
|
|
|
|
|
|
(348,000 |
) |
|
|
(3,329,000 |
) | |||||||
|
Foreign currency translation adjustments, net of taxes of $0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
662,000 |
|
|
|
|
|
|
|
|
|
|
|
662,000 |
| |||||||
|
Retirement plans - amortization of accumulated other comprehensive loss into net periodic benefit cost, net of taxes of $0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
65,000 |
|
|
|
|
|
|
|
|
|
|
|
65,000 |
| |||||||
|
Balance at March 31, 2012 |
|
|
8,277,160 |
|
|
|
$ |
4,223,000 |
|
|
|
$ |
1,289,000 |
|
|
|
$ |
30,968,000 |
|
|
|
$ |
1,863,000 |
|
|
|
$ |
(2,286,000 |
) |
|
|
$ |
801,000 |
|
|
|
$ |
36,858,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
|
Balance at December 31, 2012 |
|
|
8,277,160 |
|
|
|
$ |
4,223,000 |
|
|
|
$ |
1,289,000 |
|
|
|
$ |
21,349,000 |
|
|
|
$ |
2,017,000 |
|
|
|
$ |
(2,286,000 |
) |
|
|
$ |
497,000 |
|
|
|
$ |
27,089,000 |
|
|
Contributions from non-controlling interests |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
60,000 |
|
|
|
60,000 |
| |||||||
|
Net (loss) earnings |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2,944,000 |
) |
|
|
|
|
|
|
|
|
|
|
21,000 |
|
|
|
(2,923,000 |
) | |||||||
|
Foreign currency translation adjustments, net of taxes of $0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(600,000 |
) |
|
|
|
|
|
|
|
|
|
|
(600,000 |
) | |||||||
|
Retirement plans - amortization of accumulated other comprehensive loss into net periodic benefit cost, net of taxes of $0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
65,000 |
|
|
|
|
|
|
|
|
|
|
|
65,000 |
| |||||||
|
Balance at March 31, 2013 |
|
|
8,277,160 |
|
|
|
$ |
4,223,000 |
|
|
|
$ |
1,289,000 |
|
|
|
$ |
18,405,000 |
|
|
|
$ |
1,482,000 |
|
|
|
$ |
(2,286,000 |
) |
|
|
$ |
578,000 |
|
|
|
$ |
23,691,000 |
|
See Notes to Condensed Consolidated Financial Statements
BARNWELL INDUSTRIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF EQUITY
Six months ended March 31, 2013 and 2012
(Unaudited)
|
|
|
|
|
|
|
|
|
|
Accumulated |
|
|
|
|
|
|
| |||||||||||||||||||||||
|
|
|
|
|
|
Additional |
|
|
|
Other |
|
|
|
|
|
|
| |||||||||||||||||||||||
|
|
Shares |
|
Common |
|
Paid-In |
|
Retained |
|
Comprehensive |
|
Treasury |
|
Non-controlling |
|
Total | ||||||||||||||||||||||||
|
|
Outstanding |
|
Stock |
|
Capital |
|
Earnings |
|
Income |
|
Stock |
|
Interests |
|
Equity | ||||||||||||||||||||||||
|
Balance at September 30, 2011 |
|
|
8,277,160 |
|
|
|
$ |
4,223,000 |
|
|
|
$ |
1,289,000 |
|
|
|
$ |
34,231,000 |
|
|
|
$ |
290,000 |
|
|
|
$ |
(2,286,000 |
) |
|
|
$ |
967,000 |
|
|
|
$ |
38,714,000 |
|
|
Contributions from non-controlling interests |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
240,000 |
|
|
|
240,000 |
| |||||||
|
Net loss |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(3,263,000 |
) |
|
|
|
|
|
|
|
|
|
|
(406,000 |
) |
|
|
(3,669,000 |
) | |||||||
|
Foreign currency translation adjustments, net of taxes of $0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,443,000 |
|
|
|
|
|
|
|
|
|
|
|
1,443,000 |
| |||||||
|
Retirement plans - amortization of accumulated other comprehensive loss into net periodic benefit cost, net of taxes of $0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
130,000 |
|
|
|
|
|
|
|
|
|
|
|
130,000 |
| |||||||
|
Balance at March 31, 2012 |
|
|
8,277,160 |
|
|
|
$ |
4,223,000 |
|
|
|
$ |
1,289,000 |
|
|
|
$ |
30,968,000 |
|
|
|
$ |
1,863,000 |
|
|
|
$ |
(2,286,000 |
) |
|
|
$ |
801,000 |
|
|
|
$ |
36,858,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
|
Balance at September 30, 2012 |
|
|
8,277,160 |
|
|
|
$ |
4,223,000 |
|
|
|
$ |
1,289,000 |
|
|
|
$ |
24,095,000 |
|
|
|
$ |
2,322,000 |
|
|
|
$ |
(2,286,000 |
) |
|
|
$ |
482,000 |
|
|
|
$ |
30,125,000 |
|
|
Contributions from non-controlling interests |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
115,000 |
|
|
|
115,000 |
| |||||||
|
Net loss |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(5,690,000 |
) |
|
|
|
|
|
|
|
|
|
|
(19,000 |
) |
|
|
(5,709,000 |
) | |||||||
|
Foreign currency translation adjustments, net of taxes of $0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(970,000 |
) |
|
|
|
|
|
|
|
|
|
|
(970,000 |
) | |||||||
|
Retirement plans - amortization of accumulated other comprehensive loss into net periodic benefit cost, net of taxes of $0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
130,000 |
|
|
|
|
|
|
|
|
|
|
|
130,000 |
| |||||||
|
Balance at March 31, 2013 |
|
|
8,277,160 |
|
|
|
$ |
4,223,000 |
|
|
|
$ |
1,289,000 |
|
|
|
$ |
18,405,000 |
|
|
|
$ |
1,482,000 |
|
|
|
$ |
(2,286,000 |
) |
|
|
$ |
578,000 |
|
|
|
$ |
23,691,000 |
|
See Notes to Condensed Consolidated Financial Statements
BARNWELL INDUSTRIES, INC.
AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Principles of Consolidation
The condensed consolidated financial statements include the accounts of Barnwell Industries, Inc. and all majority-owned subsidiaries (collectively referred to herein as “Barnwell,” “we,” “our,” “us,” or the “Company”), including a 77.6%-owned land investment general partnership (Kaupulehu Developments) and two 80%-owned joint ventures (Kaupulehu 2007, LLLP and Kaupulehu Investors, LLC). All significant intercompany accounts and transactions have been eliminated.
Unless otherwise indicated, all references to “dollars” in this Form 10-Q are to U.S. dollars.
Unaudited Interim Financial Information
The accompanying unaudited condensed consolidated financial statements and notes have been prepared by Barnwell in accordance with the rules and regulations of the United States (“U.S.”) Securities and Exchange Commission. Accordingly, certain information and footnote disclosures normally included in the annual financial statements prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) have been condensed or omitted pursuant to those rules and regulations, although the Company believes that the disclosures made are adequate to make the information not misleading. These condensed consolidated financial statements and notes should be read in conjunction with the consolidated financial statements and notes thereto included in Barnwell’s September 30, 2012 Annual Report on Form 10-K. The Condensed Consolidated Balance Sheet as of September 30, 2012 has been derived from audited consolidated financial statements.
In the opinion of management, all adjustments (which include only normal recurring adjustments) necessary to present fairly the financial position at March 31, 2013, results of operations, comprehensive loss, and equity for the three and six months ended March 31, 2013 and 2012, and cash flows for the six months ended March 31, 2013 and 2012, have been made. The results of operations for the period ended March 31, 2013 are not necessarily indicative of the operating results for the full year.
Use of Estimates
The preparation of the financial statements in conformity with U.S. GAAP requires management of Barnwell to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses and the disclosure of contingent assets and liabilities. Actual results could differ significantly from those estimates.
Significant Accounting Policies
Barnwell’s significant accounting policies are described in the Notes to Consolidated Financial Statements included in Item 8 of the Company’s most recently filed Annual Report on Form 10-K.
2. LOSS PER COMMON SHARE
Basic earnings (loss) per share excludes dilution and is computed by dividing net earnings (loss) attributable to Barnwell stockholders by the weighted-average number of common shares outstanding for the period. Diluted earnings (loss) per share includes the potentially dilutive effect of outstanding common stock options, to the extent their inclusion would be dilutive. Potentially dilutive shares are excluded from the computation of diluted earnings (loss) per share if their effect is anti-dilutive.
Reconciliations between net loss attributable to Barnwell stockholders and common shares outstanding of the basic and diluted net loss per share computations are detailed in the following tables:
|
|
Three months ended March 31, 2013 | ||||||||||||
|
|
Net Loss |
|
Shares |
|
Per-Share | ||||||||
|
|
(Numerator) |
|
(Denominator) |
|
Amount | ||||||||
|
Basic net loss per share |
|
$ |
(2,944,000 |
) |
|
|
8,277,160 |
|
|
|
$ |
(0.36 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
Effect of dilutive securities - common stock options |
|
- |
|
|
|
- |
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
Diluted net loss per share |
|
$ |
(2,944,000 |
) |
|
|
8,277,160 |
|
|
|
$ |
(0.36 |
) |
|
|
| ||||||||||||
|
|
Six months ended March 31, 2013 | ||||||||||||
|
|
Net Loss |
|
Shares |
|
Per-Share | ||||||||
|
|
(Numerator) |
|
(Denominator) |
|
Amount | ||||||||
|
Basic net loss per share |
|
$ |
(5,690,000 |
) |
|
|
8,277,160 |
|
|
|
$ |
(0.69 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
Effect of dilutive securities - common stock options |
|
- |
|
|
|
- |
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
Diluted net loss per share |
|
$ |
(5,690,000 |
) |
|
|
8,277,160 |
|
|
|
$ |
(0.69 |
) |
|
|
| ||||||||||||
|
|
Three months ended March 31, 2012 | ||||||||||||
|
|
Net Loss |
|
Shares |
|
Per-Share | ||||||||
|
|
(Numerator) |
|
(Denominator) |
|
Amount | ||||||||
|
Basic net loss per share |
|
$ |
(2,981,000 |
) |
|
|
8,277,160 |
|
|
|
$ |
(0.36 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
Effect of dilutive securities - common stock options |
|
- |
|
|
|
- |
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
Diluted net loss per share |
|
$ |
(2,981,000 |
) |
|
|
8,277,160 |
|
|
|
$ |
(0.36 |
) |
|
|
Six months ended March 31, 2012 | ||||||||||||
|
|
Net Loss |
|
Shares |
|
Per-Share | ||||||||
|
|
(Numerator) |
|
(Denominator) |
|
Amount | ||||||||
|
Basic net loss per share |
|
$ |
(3,263,000 |
) |
|
|
8,277,160 |
|
|
|
$ |
(0.39 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
Effect of dilutive securities - common stock options |
|
- |
|
|
|
- |
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
Diluted net loss per share |
|
$ |
(3,263,000 |
) |
|
|
8,277,160 |
|
|
|
$ |
(0.39 |
) |
Potentially dilutive shares consist of the common shares issuable upon the exercise of outstanding stock options (both vested and non-vested) using the treasury stock method. Options to purchase 777,250 and 815,375 shares of common stock were excluded from the computation of diluted shares for the three and six months ended March 31, 2013 and 2012, respectively, as their inclusion would have been antidilutive due to the net loss attributable to Barnwell stockholders.
3. REAL ESTATE HELD FOR SALE
Kaupulehu 2007 constructs and sells single-family homes. Kaupulehu 2007 currently owns one luxury residence that is available for sale in the Lot 4A Increment I area located in the North Kona District of the island of Hawaii, north of Hualalai Resort at Historic Ka’upulehu, between the Queen Kaahumanu Highway and the Pacific Ocean.
In April 2012, Kaupulehu 2007 entered into a contract to sell one of the luxury residences at a price below carrying value. Accordingly, during the three and six months ended March 31, 2012, Barnwell recorded a $1,854,000 reduction in the carrying value of real estate held for sale to reflect this decline in the estimated market value. No reduction was necessary during the three and six months ended March 31, 2013.
4. INVESTMENTS
A summary of Barnwell’s investments as of March 31, 2013 and September 30, 2012 is as follows:
|
Investment in two residential parcels |
|
$ |
2,331,000 |
|
|
Investment in land interest – Lot 4C |
|
50,000 |
| |
|
|
|
|
| |
|
Total investments |
|
$ |
2,381,000 |
|
Investment in two residential parcels
Kaupulehu 2007 owns two residential parcels in the Lot 4A Increment I area located in the North Kona District of the island of Hawaii, north of Hualalai Resort at Historic Ka’upulehu, between the Queen Kaahumanu Highway and the Pacific Ocean.
Lot 4C
Kaupulehu Developments holds an interest in Lot 4C, an area of approximately 1,000 acres of vacant leasehold land zoned conservation located adjacent to Lot 4A. WB KD Acquisition, LLC (“WB”) and/or WB KD Acquisition II, LLC (“WBKD”), entities not affiliated with Barnwell and its subsidiaries, have the exclusive right to negotiate with Kaupulehu Developments with respect to Lot 4C until June 2013 unless extended by Barnwell.
There is no assurance that the required land use reclassification and rezoning from regulatory agencies will be obtained, that the necessary development terms and agreements will be successfully negotiated for Lot 4C, or that WB and/or WBKD will enter into an agreement with Kaupulehu Developments regarding Lot 4C.
5. LONG-TERM DEBT
A summary of Barnwell’s long-term debt is as follows:
|
|
March 31, |
|
September 30, | ||||||
|
|
2013 |
|
2012 | ||||||
|
|
|
|
|
|
|
|
| ||
|
Canadian revolving credit facility |
|
$ |
12,000,000 |
|
|
|
$ |
12,000,000 |
|
|
Real estate loan |
|
4,903,000 |
|
|
|
5,164,000 |
| ||
|
|
|
|
|
|
|
|
| ||
|
|
|
16,903,000 |
|
|
|
17,164,000 |
| ||
|
Less: current portion |
|
(4,903,000 |
) |
|
|
(5,764,000 |
) | ||
|
|
|
|
|
|
|
|
| ||
|
Total long-term debt |
|
$ |
12,000,000 |
|
|
|
$ |
11,400,000 |
|
Canadian revolving credit facility
In March 2013, Barnwell’s credit facility at Royal Bank of Canada was renewed through April 2014 for $20,000,000 Canadian dollars, unchanged from the prior year amount, or US$19,692,000 at the March 31, 2013 exchange rate. Unused credit available under this facility was US$7,692,000 and the interest rate on the facility was 2.70% at March 31, 2013.
The renewed facility is available in U.S. dollars at the London Interbank Offer Rate plus 2.50%, at the Royal Bank of Canada’s U.S. base rate plus 1.50%, or in Canadian dollars at the Royal Bank of Canada’s prime rate plus 1.50%. A standby fee of 0.625% per annum is charged on the unused facility balance. Under the financing agreement with Royal Bank of Canada, the facility is reviewed annually, with the next review planned for April 2014. Subject to that review, the facility may be renewed for one year with no required debt repayments or converted to a two-year term loan by the bank. If the facility is converted to a two-year term loan, Barnwell has agreed to the following repayment schedule of the then outstanding loan balance: first year of the term period – 20% (5% per quarter), and in the second year of the term period – 80% (5% per quarter for the first three quarters and 65% in the final quarter). Based on the terms of this agreement, if Royal Bank of Canada were to convert the facility to a two-year term loan upon its next review in April 2014, Barnwell would be obligated to make quarterly principal and interest repayments beginning in July 2014. As no debt repayments will be required on or before March 31, 2014, the entire outstanding loan balance at March 31, 2013 is classified as long-term debt.
Real estate loan
Barnwell, together with its real estate joint venture, Kaupulehu 2007, has a non-revolving real estate loan with a Hawaii bank. Principal and interest are paid monthly and are determined based on a loan amortization schedule. The monthly payment will change as a result of an annual change in the interest rate, the sale of a house or the sale of a residential parcel. The interest rate adjusts each April for the remaining term of the loan to the lender’s then prevailing interest rate for similarly priced commercial mortgage loans or a floating rate equal to the lender’s base rate. The interest rate at March 31, 2013 was 3.57%, and was adjusted to 3.53% effective April 1, 2013. Any unpaid principal balance and accrued interest will be due and payable on April 1, 2018.
The loan is collateralized by, among other things, a first mortgage on Kaupulehu 2007’s lots together with all improvements thereon. Kaupulehu 2007 will be required to make a principal payment upon the sale of a house or a residential parcel in the amount of the net sales proceeds of the house or residential parcel; the loan agreement defines net sales proceeds as the gross sales proceeds for the house or residential parcel, less reasonable commissions and normal closing costs.
The loan agreement contains provisions requiring us to maintain compliance with certain covenants including a consolidated debt service coverage ratio and a consolidated total liabilities to tangible net worth ratio. As of March 31, 2013, we were in compliance with the loan covenants.
The home collateralizing the loan is currently available for sale; therefore, the entire balance outstanding at March 31, 2013 under the term loan has been classified as a current liability.
6. RETIREMENT PLANS
Barnwell sponsors a noncontributory defined benefit pension plan (“Pension Plan”) covering substantially all of its U.S. employees. Additionally, Barnwell sponsors a Supplemental Employee Retirement Plan (“SERP”), a noncontributory supplemental retirement benefit plan which covers certain current and former employees of Barnwell for amounts exceeding the limits allowed under the Pension Plan, and a postretirement medical insurance benefits plan (“Postretirement Medical”) covering eligible U.S. employees.
The following tables detail the components of net periodic benefit cost for Barnwell’s retirement plans:
|
|
Pension Plan |
|
SERP |
|
Postretirement Medical | ||||||||||||||||||||||||
|
|
Three months ended March 31, | ||||||||||||||||||||||||||||
|
|
2013 |
|
2012 |
|
2013 |
|
2012 |
|
2013 |
|
2012 | ||||||||||||||||||
|
Service cost |
|
$ |
68,000 |
|
|
|
$ |
76,000 |
|
|
|
$ |
13,000 |
|
|
|
$ |
12,000 |
|
|
|
$ |
3,000 |
|
|
|
$ |
3,000 |
|
|
Interest cost |
|
74,000 |
|
|
|
81,000 |
|
|
|
15,000 |
|
|
|
15,000 |
|
|
|
13,000 |
|
|
|
12,000 |
| ||||||
|
Expected return on plan assets |
|
(97,000 |
) |
|
|
(82,000 |
) |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
| ||||||
|
Amortization of prior service cost (credit) |
|
2,000 |
|
|
|
2,000 |
|
|
|
(2,000 |
) |
|
|
- |
|
|
|
34,000 |
|
|
|
34,000 |
| ||||||
|
Amortization of net actuarial loss (gain) |
|
26,000 |
|
|
|
27,000 |
|
|
|
5,000 |
|
|
|
4,000 |
|
|
|
- |
|
|
|
(2,000 |
) | ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Net periodic benefit cost |
|
$ |
73,000 |
|
|
|
$ |
104,000 |
|
|
|
$ |
31,000 |
|
|
|
$ |
31,000 |
|
|
|
$ |
50,000 |
|
|
|
$ |
47,000 |
|
|
|
|
|
|
|
| ||||||||||||||||||||||||
|
|
|
|
|
|
| ||||||||||||||||||||||||
|
|
Pension Plan |
|
SERP |
|
Postretirement Medical | ||||||||||||||||||||||||
|
|
Six months ended March 31, | ||||||||||||||||||||||||||||
|
|
2013 |
|
2012 |
|
2013 |
|
2012 |
|
2013 |
|
2012 | ||||||||||||||||||
|
Service cost |
|
$ |
136,000 |
|
|
|
$ |
151,000 |
|
|
|
$ |
26,000 |
|
|
|
$ |
25,000 |
|
|
|
$ |
7,000 |
|
|
|
$ |
6,000 |
|
|
Interest cost |
|
149,000 |
|
|
|
162,000 |
|
|
|
29,000 |
|
|
|
30,000 |
|
|
|
25,000 |
|
|
|
24,000 |
| ||||||
|
Expected return on plan assets |
|
(194,000 |
) |
|
|
(164,000 |
) |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
| ||||||
|
Amortization of prior service cost (credit) |
|
3,000 |
|
|
|
3,000 |
|
|
|
(3,000 |
) |
|
|
- |
|
|
|
68,000 |
|
|
|
68,000 |
| ||||||
|
Amortization of net actuarial loss (gain) |
|
52,000 |
|
|
|
56,000 |
|
|
|
10,000 |
|
|
|
8,000 |
|
|
|
- |
|
|
|
(5,000 |
) | ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
Net periodic benefit cost |
|
$ |
146,000 |
|
|
|
$ |
208,000 |
|
|
|
$ |
62,000 |
|
|
|
$ |
63,000 |
|
|
|
$ |
100,000 |
|
|
|
$ |
93,000 |
|
Barnwell contributed $250,000 to the Pension Plan during the six months ended March 31, 2013 and does not expect to make any further contributions during the remainder of fiscal 2013. The SERP and Postretirement Medical plans are unfunded, and Barnwell will fund benefits when payments are made. Barnwell does not expect to make any benefit payments under the Postretirement Medical plan during fiscal 2013 and expected payments under the SERP for fiscal 2013 are not material. Fluctuations in actual equity market returns as well as changes in general interest rates will result in changes in the market value of plan assets and may result in increased or decreased retirement benefits costs and contributions in future periods.
7. INCOME TAXES
The components of loss before income taxes, after adjusting the loss for non-controlling interests, are as follows:
|
|
Three months ended |
|
Six months ended | ||||||||||||||||
|
|
March 31, |
|
March 31, | ||||||||||||||||
|
|
2013 |
|
2012 |
|
2013 |
|
2012 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
United States |
|
$ |
(1,014,000 |
) |
|
|
$ |
(2,972,000 |
) |
|
|
$ |
(2,302,000 |
) |
|
|
$ |
(4,302,000 |
) |
|
Canada |
|
(2,702,000 |
) |
|
|
(12,000 |
) |
|
|
(4,724,000 |
) |
|
|
1,526,000 |
| ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
|
|
$ |
(3,716,000 |
) |
|
|
$ |
(2,984,000 |
) |
|
|
$ |
(7,026,000 |
) |
|
|
$ |
(2,776,000 |
) |
The components of the income tax (benefit) provision are as follows:
|
|
Three months ended |
|
Six months ended | ||||||||||||||||
|
|
March 31, |
|
March 31, | ||||||||||||||||
|
|
2013 |
|
2012 |
|
2013 |
|
2012 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
Current |
|
$ |
(214,000 |
) |
|
|
$ |
105,000 |
|
|
|
$ |
344,000 |
|
|
|
$ |
663,000 |
|
|
Deferred |
|
(558,000 |
) |
|
|
(108,000 |
) |
|
|
(1,680,000 |
) |
|
|
(176,000 |
) | ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
|
|
$ |
(772,000 |
) |
|
|
$ |
(3,000 |
) |
|
|
$ |
(1,336,000 |
) |
|
|
$ |
487,000 |
|
Barnwell’s effective consolidated income tax rate for the three and six months ended March 31, 2013, after adjusting loss before income taxes for non-controlling interests, was 21% and 19%, respectively, as compared to 0% and (18%) for the three and six months ended March 31, 2012, respectively.
Consolidated taxes do not bear a customary relationship to pretax (losses) earnings due primarily to the fact that Canadian income taxes are not sheltered by current period U.S. source losses, Canadian income taxes are not estimated to have a current or future benefit as foreign tax credits or deductions for U.S. tax purposes, and U.S. consolidated net operating losses are not estimated to have any future U.S. tax benefit prior to expiration.
The Canada Revenue Agency is currently examining the Company’s Canadian federal income tax returns for fiscal 2010 and 2011.
8. SEGMENT INFORMATION
Barnwell operates the following segments: 1) exploring for, developing, producing and selling oil and natural gas in Canada (oil and natural gas); 2) investing in land interests in Hawaii (land investment); 3) drilling wells and installing and repairing water pumping systems in Hawaii (contract drilling); and 4) developing homes for sale in Hawaii (residential real estate).
The following table presents certain financial information related to Barnwell’s reporting segments. All revenues reported are from external customers with no intersegment sales or transfers.
|
|
Three months ended |
|
Six months ended | ||||||||||||||||
|
|
March 31, |
|
March 31, | ||||||||||||||||
|
|
2013 |
|
2012 |
|
2013 |
|
2012 | ||||||||||||
|
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
Oil and natural gas |
|
$ |
5,605,000 |
|
|
|
$ |
6,408,000 |
|
|
|
$ |
11,245,000 |
|
|
|
$ |
14,197,000 |
|
|
Land investment |
|
282,000 |
|
|
|
353,000 |
|
|
|
282,000 |
|
|
|
353,000 |
| ||||
|
Contract drilling |
|
703,000 |
|
|
|
281,000 |
|
|
|
1,420,000 |
|
|
|
706,000 |
| ||||
|
Other |
|
178,000 |
|
|
|
121,000 |
|
|
|
344,000 |
|
|
|
397,000 |
| ||||
|
Total before interest income |
|
6,768,000 |
|
|
|
7,163,000 |
|
|
|
13,291,000 |
|
|
|
15,653,000 |
| ||||
|
Interest income |
|
1,000 |
|
|
|
3,000 |
|
|
|
29,000 |
|
|
|
15,000 |
| ||||
|
Total revenues |
|
$ |
6,769,000 |
|
|
|
$ |
7,166,000 |
|
|
|
$ |
13,320,000 |
|
|
|
$ |
15,668,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
Depletion, depreciation, and amortization: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
Oil and natural gas |
|
$ |
2,195,000 |
|
|
|
$ |
2,649,000 |
|
|
|
$ |
4,730,000 |
|
|
|
$ |
5,402,000 |
|
|
Contract drilling |
|
108,000 |
|
|
|
128,000 |
|
|
|
223,000 |
|
|
|
257,000 |
| ||||
|
Other |
|
29,000 |
|
|
|
29,000 |
|
|
|
58,000 |
|
|
|
56,000 |
| ||||
|
Total depletion, depreciation, and amortization |
|
$ |
2,332,000 |
|
|
|
$ |
2,806,000 |
|
|
|
$ |
5,011,000 |
|
|
|
$ |
5,715,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
Reduction of carrying value of assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
Oil and natural gas |
|
$ |
2,179,000 |
|
|
|
$ |
- |
|
|
|
$ |
4,506,000 |
|
|
|
$ |
- |
|
|
Residential real estate |
|
- |
|
|
|
1,854,000 |
|
|
|
- |
|
|
|
1,854,000 |
| ||||
|
Total reduction of carrying value of assets |
|
$ |
2,179,000 |
|
|
|
$ |
1,854,000 |
|
|
|
$ |
4,506,000 |
|
|
|
$ |
1,854,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||