-----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, KGuf9/R5swyTydCSw352nMqG/VPTNayugZiIUXYt0+w2/Rzzs85UZgmTgH9NI2jV YQr8KL8dzg1Pro3aB35rRw== 0000010048-99-000002.txt : 19990215 0000010048-99-000002.hdr.sgml : 19990215 ACCESSION NUMBER: 0000010048-99-000002 CONFORMED SUBMISSION TYPE: 10QSB PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19981231 FILED AS OF DATE: 19990212 FILER: COMPANY DATA: COMPANY CONFORMED NAME: BARNWELL INDUSTRIES INC CENTRAL INDEX KEY: 0000010048 STANDARD INDUSTRIAL CLASSIFICATION: CRUDE PETROLEUM & NATURAL GAS [1311] IRS NUMBER: 720496921 STATE OF INCORPORATION: DE FISCAL YEAR END: 0930 FILING VALUES: FORM TYPE: 10QSB SEC ACT: SEC FILE NUMBER: 001-05103 FILM NUMBER: 99535500 BUSINESS ADDRESS: STREET 1: 1100 ALAKEA ST. STREET 2: SUITE 2900 CITY: HONOLULU STATE: HI ZIP: 96813 BUSINESS PHONE: 808-531-8400 MAIL ADDRESS: STREET 1: 1100 ALAKEA ST. STREET 2: SUITE 2900 CITY: HONOLULU STATE: HI ZIP: 96813 FORMER COMPANY: FORMER CONFORMED NAME: BMA CORP/TN DATE OF NAME CHANGE: 19770324 FORMER COMPANY: FORMER CONFORMED NAME: BARNWELL OFFSHORE INC DATE OF NAME CHANGE: 19671101 10QSB 1 UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-QSB X Quarterly Report Pursuant to Section 13 or 15(d) of the Securities --- Exchange Act of 1934 For the quarterly period ended December 31, 1998 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 small business issuer as specified in its charter) DELAWARE 72-0496921 (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) 1100 ALAKEA STREET, SUITE 2900, HONOLULU, HAWAII 96813 (Address of principal executive offices) (Zip code) (808) 531-8400 (Issuer's telephone number, including area code) Check whether the issuer (1) filed all reports required to be filed by Section 13 or 15(d) of the 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 --- --- As of February 5, 1999 there were 1,316,952 shares of common stock, par value $0.50, outstanding. Transitional Small Business Disclosure Format Yes No X --- --- 1 BARNWELL INDUSTRIES, INC. ------------------------- AND SUBSIDIARIES ---------------- INDEX ----- PART I. FINANCIAL INFORMATION: Item 1. Financial Statements Condensed Consolidated Balance Sheets December 31, 1998 and September 30, 1998 (Unaudited) Consolidated Statements of Operations three months ended December 31, 1998 and 1997 (Unaudited) Condensed Consolidated Statements of Cash Flows three months ended December 31, 1998 and 1997 (Unaudited) Consolidated Statements of Stockholders' Equity three months ended December 31, 1998 and 1997 (Unaudited) Notes to Condensed Consolidated Financial Statements (Unaudited) Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations PART II. OTHER INFORMATION: Item 6. Exhibits and reports on Form 8-K 2 BARNWELL INDUSTRIES, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited, see Note A below) ASSETS - ------ DECEMBER 31, September 30, 1998 1998 ------------- ------------- CURRENT ASSETS: Cash and cash equivalents $ 1,669,000 $ 2,178,000 Accounts receivable, net 1,914,000 1,593,000 Other current assets 727,000 855,000 ------------ ------------ TOTAL CURRENT ASSETS 4,310,000 4,626,000 ------------ ------------ INVESTMENT IN LAND 2,881,000 2,710,000 ------------ ------------ OTHER ASSETS 212,000 213,000 ------------ ------------ NET PROPERTY AND EQUIPMENT 23,598,000 24,112,000 ------------ ------------ TOTAL ASSETS $ 31,001,000 $ 31,661,000 ============ ============ LIABILITIES AND STOCKHOLDERS' EQUITY - ------------------------------------ CURRENT LIABILITIES: Accounts payable $ 2,027,000 $ 2,836,000 Accrued expenses 1,788,000 1,963,000 Other current liabilities 1,089,000 851,000 ------------ ------------ TOTAL CURRENT LIABILITIES 4,904,000 5,650,000 ------------ ------------ LONG-TERM DEBT 13,676,000 13,630,000 ------------ ------------ DEFERRED INCOME TAXES 5,643,000 5,637,000 ------------ ------------ STOCKHOLDERS' EQUITY: Common stock, par value $.50 a share: Authorized, 4,000,000 shares Issued, 1,642,797 shares 821,000 821,000 Additional paid-in capital 3,103,000 3,103,000 Retained earnings 11,331,000 11,281,000 Accumulated other comprehensive loss (3,688,000) (3,672,000) Treasury stock, at cost, 325,845 shares (4,789,000) (4,789,000) ------------ ------------ TOTAL STOCKHOLDERS' EQUITY 6,778,000 6,744,000 ------------ ------------ TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 31,001,000 $ 31,661,000 ============ ============ Note A: The condensed consolidated balance sheet at September 30, 1998 has been derived from the audited financial statements at that date. See Notes to Condensed Consolidated Financial Statements 3 BARNWELL INDUSTRIES, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) Three months ended December 31, ----------------------------- 1998 1997 ----------- ------------ Revenues: Oil and natural gas $ 2,350,000 $ 2,930,000 Contract drilling 750,000 180,000 Gas processing and other 200,000 260,000 ----------- ------------ 3,300,000 3,370,000 ----------- ------------ Costs and expenses: Oil and natural gas operating 817,000 808,000 Contract drilling operating 576,000 259,000 General and administrative 764,000 792,000 Depreciation, depletion and amortization 694,000 796,000 Interest expense 206,000 157,000 ----------- ----------- 3,057,000 2,812,000 ----------- ----------- Earnings before income taxes 243,000 558,000 Income tax provision 193,000 438,000 ----------- ----------- NET EARNINGS $ 50,000 $ 120,000 =========== =========== BASIC AND DILUTED EARNINGS PER COMMON SHARE $0.04 $0.09 ===== ===== See Notes to Condensed Consolidated Financial Statements 4
BARNWELL INDUSTRIES, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) Three months ended December 31, -------------------------- 1998 1997 ----------- ----------- Cash Flows from Operating Activities: Net earnings $ 50,000 $ 120,000 Adjustments to reconcile net earnings to net cash used in operating activities: Depreciation, depletion, and amortization 694,000 796,000 Deferred income taxes 15,000 141,000 ----------- ----------- 759,000 1,057,000 Decrease from changes in current assets and liabilities (931,000) (1,287,000) ----------- ----------- Net cash used in operating activities (172,000) (230,000) ----------- ----------- Cash Flows from Investing Activities: Capital expenditures - oil and natural gas (211,000) (1,574,000) Additions to investment in land (171,000) (159,000) Capital expenditures - contract drilling and other (24,000) (137,000) Proceeds from sale of oil and natural gas properties 18,000 - Decrease in other assets 1,000 5,000 ----------- ----------- Net cash used in investing activities (387,000) (1,865,000) ----------- ----------- Cash Flows from Financing Activities: Long-term debt borrowings 150,000 - Repayments of long-term debt (100,000) - ----------- ----------- Net cash provided by financing activities 50,000 - ----------- ----------- Effect of exchange rate changes on cash and cash equivalents - (37,000) ----------- ----------- Net decrease in cash and cash equivalents (509,000) (2,132,000) Cash and cash equivalents at beginning of period 2,178,000 4,402,000 ----------- ----------- Cash and cash equivalents at end of period $ 1,669,000 $ 2,270,000 =========== =========== Supplemental disclosures of cash flow information: Cash paid during the period for: Interest (net of amounts capitalized) $ 195,000 $ 107,000 =========== =========== Income taxes $ 52,000 $ 229,000 =========== =========== See Notes to Condensed Consolidated Financial Statements
5
BARNWELL INDUSTRIES, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Unaudited) Accumulated Additional Comprehensive Other Total Common Paid-In Income Retained Comprehensive Treasury Stockholders' Stock Capital (Loss) Earnings Loss Stock Equity -------- ---------- ------------ ----------- ------------ ------------ ------------ At September 30, 1997 $821,000 $3,103,000 $15,171,000 $ (2,240,000) $ (4,705,000) $ 12,150,000 Comprehensive loss: Net earnings $ 120,000 120,000 120,000 --------- Other comprehensive loss: Foreign currency translation adjustments (376,000) Unrealized holding gain on securities 2,000 --------- Other comprehensive loss (374,000) (374,000) (374,000) --------- Total comprehensive loss $(254,000) -------- ---------- ========= ----------- ------------ ------------ ------------ At December 31, 1997 $821,000 $3,103,000 $15,291,000 $ (2,614,000) $ (4,705,000) $ 11,896,000 ======== ========== =========== ============ ============ ============ At September 30, 1998 $821,000 $3,103,000 $11,281,000 $ (3,672,000) $ (4,789,000) $ 6,744,000 Comprehensive income: Net earnings $ 50,000 50,000 50,000 Other comprehensive loss - Foreign currency translation adjustments (16,000) (16,000) (16,000) --------- Total comprehensive income $ 34,000 -------- ---------- ========= ----------- ------------ ------------ ------------ At December 31, 1998 $821,000 $3,103,000 $11,331,000 $ (3,688,000) $ (4,789,000) $ 6,778,000 ======== ========== =========== ============ ============ ============ See Notes to Condensed Consolidated Financial Statements
6 BARNWELL INDUSTRIES, INC. AND SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) 1. CONDENSED CONSOLIDATED FINANCIAL STATEMENTS ------------------------------------------- The Condensed Consolidated Balance Sheet as of December 31, 1998, and the Consolidated Statements of Operations, the Condensed Consolidated Statements of Cash Flows, and the Consolidated Statements of Stockholders' Equity for the three months ended December 31, 1998 and 1997 have been prepared by Barnwell Industries, Inc. (referred to herein together with its subsidiaries as "Barnwell" or the "Company") without audit. In the opinion of management, all adjustments (which include only normal recurring adjustments) necessary to present fairly the financial position, results of operations and changes in cash flows at December 31, 1998 and for all periods presented have been made. The Condensed Consolidated Balance Sheet as of September 30, 1998 has been derived from audited financial statements. 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 condensed consolidated financial statements be read in conjunction with the financial statements and notes thereto included in the Company's September 30, 1998 annual report to stockholders. The results of operations for the period ended December 31, 1998 are not necessarily indicative of the operating results for the full year. The preparation of financial statements in conformity with generally accepted accounting principles requires management 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. 2. EARNINGS PER COMMON SHARE ------------------------- Basic earnings per share ("EPS") excludes dilution and is computed by dividing net earnings by the weighted-average number of common shares outstanding for the period. The weighted-average number of common shares outstanding for three months ended December 31, 1998 and 1997 was 1,316,952 and 1,322,052, respectively. Diluted EPS includes the potentially dilutive effect of outstanding common stock options and securities which are convertible to common shares. The weighted-average number of common and potentially dilutive common shares outstanding for the three months ended December 31, 1998 and 1997 was 1,316,952 and 1,325,504, respectively. Assumed conversion of common stock options was excluded from the computation of diluted EPS for the three months ended December 31, 1998 because its effect would be antidilutive. As of December 31, 1998, options to acquire 55,000 shares of the Company's common stock were outstanding. 7 A reconciliation between the numerators and denominators of the basic and diluted EPS computations for the three months ended December 31, 1997 is as follows: Three months ended December 31, 1997 --------------------------------------- Net Earnings Shares Per-Share (Numerator) (Denominator) Amount ------------ ------------ --------- Basic earnings per share $ 120,000 1,322,052 $0.09 Effect of dilutive securities - common stock options - 3,452 - ------------ ------------ --------- Diluted earnings per share $ 120,000 1,325,504 $0.09 ============ ============ ========= Assumed conversion of the convertible debentures to 95,000 and 100,000 shares of common stock was excluded from the computation of diluted EPS for the three months ended December 31, 1998 and 1997, respectively, because its effect would be antidilutive. 3. INCOME TAXES ------------ The components of the income tax provision for the three months ended December 31, 1998 and 1997 are as follows: Three months ended December 31, --------------------------- 1998 1997 ---------- ---------- Current - U.S. $ - $ - Current - Foreign 178,000 297,000 ---------- ---------- Total - Current 178,000 297,000 ---------- ---------- Deferred - U.S. 15,000 25,000 Deferred - Foreign - 116,000 ---------- ---------- Total - Deferred 15,000 141,000 ---------- ---------- $ 193,000 $ 438,000 ========== ========== 8 4. NEW STATEMENTS OF FINANCIAL ACCOUNTING STANDARDS ------------------------------------------------ In June 1997, the Financial Accounting Standards Board ("FASB") issued SFAS No. 130, "Reporting Comprehensive Income." SFAS No. 130 establishes standards for reporting and display of comprehensive income and its components (revenues, expenses, gains and losses) in a full set of general-purpose financial statements. This statement requires that all items currently recognized under accounting standards as components of comprehensive income be reported in a financial statement that is displayed with the same prominence as other financial statements and is effective for fiscal years beginning after December 15, 1997. SFAS No. 130 requires reclassification of financial statements presented for earlier periods. The Company adopted the provisions of SFAS No. 130 in the first quarter of fiscal 1999. In June 1997, the FASB also issued SFAS No. 131, "Disclosures about Segments of an Enterprise and Related Information." This statement provides guidance for public business enterprises in reporting information about operating segments in annual financial statements and requires that those enterprises report selected information about operating segments in interim financial reports to shareholders. This statement also establishes standards for related disclosures about products and services, geographic areas and major customers. This statement is effective for fiscal years beginning after December 15, 1997. SFAS No. 131 need not be applied to interim financial statements in the initial year of its application. The Company will adopt the provisions of SFAS No. 131 in its fiscal 1999 consolidated financial statements. Management does not expect adoption of SFAS No. 131 will have a material effect on the Company's reported financial information. In February 1998, the FASB issued SFAS No. 132, "Employers' Disclosures about Pensions and Other Postretirement Benefits," which amends the disclosure requirements of SFAS No. 87, "Employers' Accounting for Pensions," SFAS No. 88, "Employers' Accounting for Settlements and Curtailments of Defined Benefit Pension Plans and for Termination Benefits," and SFAS No. 106, "Employers' Accounting for Postretirement Benefits Other Than Pensions." This statement standardizes the disclosure requirements of SFAS No.'s 87 and 106 to the extent practicable and recommends a parallel format for presenting information about pensions and other postretirement benefits. SFAS No. 132 addresses disclosure only and does not change any of the measurement or recognition provisions provided for in SFAS No.'s 87, 88 or 106. This statement is effective for fiscal years beginning after December 15, 1997. The Company will adopt the provisions of SFAS No. 132 in its fiscal 1999 consolidated financial statements. Management does not expect adoption of SFAS No. 132 will have a material effect on the Company's reported financial information. In March 1998, the American Institute of Certified Public Accountants ("AICPA") Accounting Standards Executive Committee issued Statement of Position ("SOP") 98-1, "Accounting for the Costs of Computer Software Developed or Obtained for Internal Use," which requires that certain costs, including certain payroll and payroll-related costs, be capitalized and amortized over the estimated useful life of the software. The provisions of SOP 98-1 are effective for fiscal years beginning after December 31, 1998. The Company adopted the provisions of SOP 98-1 in the first quarter of fiscal 1999. The adoption of SOP 98-1 did not have a material effect on the Company's financial condition, results of operations or liquidity. 9 In June 1998, the FASB issued SFAS No. 133, "Accounting for Derivative Instruments and Hedging Activities," which establishes accounting and reporting standards for derivative instruments and hedging activities and requires that an entity recognize all derivatives as either assets or liabilities in the statement of financial position and measure those instruments at fair value. The provisions of SFAS No. 133 are effective for all fiscal quarters of fiscal years beginning after June 15, 1999. The Company has not determined when it will adopt SFAS No. 133. The Company currently holds no derivative instruments, nor is it currently participating in hedging activities. Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS ------------------------------------------------------------------------ OF OPERATIONS ------------- FORWARD-LOOKING STATEMENTS - -------------------------- This Form 10-QSB contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, including various forecasts, projections of the Company's future performance, statements of the Company's plans and objectives or other similar types of information. Although the Company believes that its expectations are based on reasonable assumptions, it cannot assure that the expectations contained in such forward-looking statements will be achieved. Such statements involve risks, uncertainties and assumptions which could cause actual results to differ materially from those contained in such statements. These forward-looking statements speak only as of the date of filing of this Form 10-QSB, and the Company expressly disclaims any obligation or undertaking to publicly release any updates or revisions to any forward-looking statements contained herein. LIQUIDITY AND CAPITAL RESOURCES - ------------------------------- Cash flows used by operations decreased $58,000 for the three months ended December 31, 1998, as compared to the same period in the prior year, due primarily to a $395,000 increase in cash flows attributable to the timing of receivable collections and payables disbursements. This decrease in cash flows used by operations was partially offset by a decrease in operating profit generated by the Company's oil and natural gas segment. At December 31, 1998, the Company had $1,669,000 in cash and cash equivalents, and approximately $700,000 of available credit under its credit facility with a Canadian bank and approximately $500,000 of available credit under Kaupulehu Developments' (a 50.1% owned joint venture) land rezoning credit facility with a Hawaii bank. During the quarter ended December 31, 1998, the Company invested $211,000 in oil and natural gas properties (all in Canada), as compared to $1,574,000 ($1,333,000 in Canada and $241,000 in the U.S.) during the prior year's first quarter. Capital expenditures have decreased due to the completion of several development projects in fiscal 1998, no capital expenditures in the U.S. in the current period, and a reduction of the Company's oil and natural gas capital expenditures budget for fiscal 1999, as compared to the level of capital expenditures for fiscal 1998, due to the decline in oil prices. 10 The Company participated in the drilling of 4 successful wells, one with two producing zones, in Alberta, Canada, during the three months ended December 31, 1998 as follows: Productive Productive Oil Wells Gas Wells Dry Holes Total Wells ------------- ------------- ------------- ------------- Exp. Dev. Exp. Dev. Exp. Dev. Exp. Dev. ---- ---- ---- ---- ---- ---- ---- ---- Gross - - 1.00 3.00 - - 1.00 3.00 Net - - 0.10 0.28 - - 0.10 0.28 The Company also invested $171,000 (including interest costs capitalized) towards the rezoning of the North Kona, Hawaii property held by Kaupulehu Developments, a 50.1% owned joint venture. The Company's computer systems are in the process of being upgraded. The Company expects to complete its information systems upgrades, which are represented to be Year 2000 compliant by respective vendors, by the summer of 1999. The Company estimates that the total combined internal and external cost of upgrading information systems specifically for Year 2000 compliance to be less than $30,000, and expects to fund these costs by utilizing cash flows from operations. Analysis of embedded technology issues, including, but not limited to, such items as microprocessors in petroleum and water pump controls, and potential impacts relating to third parties with which the Company has a material relationship is ongoing and to date has not brought to light evidence of potential negative impacts. Expenditures related to Year 2000 compliance in the three months ended December 31, 1998 and 1997 were not significant and were expensed as incurred. No amount of preparation and testing can guarantee Year 2000 compliance. Accordingly, the Company is developing contingency plans to overcome the most reasonably likely worst case scenarios which may result from failure by the Company or third parties to complete their Year 2000 initiatives on a timely basis. The Company expects to complete its contingency plans by September of 1999. Such contingency plans may include using alternative processes, such as manual procedures or work-around applications to substitute for non-compliant systems; arranging for alternate marketers, operators, and suppliers and service providers; and developing procedures internally and in collaboration with significant third parties to address compliance issues as they arise. There is particular difficulty in the assessment of Year 2000 compliance of third parties. Accordingly, the Company considers the potential disruptions caused by such parties to present the most reasonably likely worst case scenarios. Adverse effects on the Company could include business disruption, increased costs, delays of sales and other similar ramifications. The costs to address Year 2000 issues, the dates on which the Company believes that it will complete activities to address such issues and the Company's evaluation of third-party effects are estimates and subject to change. Actual results could differ from those currently anticipated. Factors that could cause such differences include, but are not limited to, the availability of key Year 2000 project personnel, the ability of systems vendors to meet their represented specifications and timetables, the Company's ability to respond to unforeseen Year 2000 complications, the readiness of third parties, the accuracy of third party assurances regarding Year 2000 compliance and similar uncertainties. 11 RESULTS OF OPERATIONS - --------------------- Oil and Natural Gas - ------------------- SELECTED OPERATING STATISTICS ----------------------------------------------- Average Price Per Unit ----------------------------------------------- Three months ended Increase December 31, (Decrease) --------------------- ------------------ 1998 1997 $ % ------ ------ ------ ----- Liquids (Bbls)* $ 8.44 $15.38 $(6.94) (45%) Oil (Bbls)* $12.15 $17.36 $(5.21) (30%) Natural gas (MCF)** $ 1.42 $ 1.48 $(0.06) (4%) Net Production ----------------------------------------------- Three months ended Increase December 31, (Decrease) ---------------------- ------------------ 1998 1997 Units % ------- ------- ------ ----- Liquids (Bbls)* 18,000 18,000 - - Oil (Bbls)* 57,000 48,000 9,000 19% Natural gas (MCF)** 890,000 973,000 (83,000) (9%) *Bbls = stock tank barrel equivalent to 42 U.S. gallons **MCF = 1,000 cubic feet Oil and natural gas revenues decreased $580,000 (20%) for the three months ended December 31, 1998, as compared to the same period in 1997, due to 45%, 30% and 4% decreases in natural gas liquids, oil and natural gas prices, respectively. In addition to these price decreases, natural gas production declined 9% owing to production declines at Dunvegan and other properties and to certain gas gathering system workovers at Dunvegan, the Company's principal natural gas property, which have since been completed. These decreases were partially offset by a 19% increase in oil production from new wells. Contract Drilling - ----------------- Contract drilling revenues and costs increased $570,000 (317%) and $317,000 (122%), respectively, for the three months ended December 31, 1998, as compared to the same period in 1997, as two drilling rigs were operating concurrently during the current quarter, as compared to none in the same period in 1997. Accordingly, operating results before depreciation increased to an operating profit of $174,000 for the three months ended December 31, 1998, as compared to an operating loss before depreciation of $79,000 for the same period in 1997. 12 Gas Processing and Other - ------------------------ Gas processing and other income decreased $60,000 (23%) for the three months ended December 31, 1998, as compared to the same period in 1997, primarily due to a decrease in interest income as a result of lower average cash balances. Depreciation, Depletion and Amortization - ---------------------------------------- Depreciation, depletion and amortization decreased $102,000 (13%) for the three months ended December 31, 1998, as compared to the same period in 1997, due to both lower natural gas production and the fact that depletion in the prior year period included approximately $40,000 of depletion of U.S. oil and natural gas properties; there was no depletion of U.S. oil and natural gas properties in the current year period as the Company wrote off its investments in U.S. oil and natural gas properties at September 30, 1998. Interest Expense - ---------------- Interest expense increased $49,000 (31%) for the three months ended December 31, 1998, as compared to the same period in 1997, due to an increase in average loan balances during the current quarter. 13 PART II. OTHER INFORMATION Item 6. Exhibits and reports on Form 8-K None. SIGNATURE --------- 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. BARNWELL INDUSTRIES, INC. ------------------------- (Registrant) /s/ Russell M. Gifford ---------------------- Russell M. Gifford Executive Vice President, Chief Financial Officer Date: February 12, 1999 EX-27 2
5 This schedule contains summary financial information extracted from Barnwell Industries Inc.'s 1999 first quarter 10-QSB and is qualified in its entirety by reference to such 10-QSB. 1000 3-MOS SEP-30-1999 DEC-31-1998 1669 0 2000 86 92 4310 56358 32760 31001 4904 14076 0 0 821 5957 31001 3100 3300 1393 1393 694 0 206 243 193 50 0 0 0 50 .04 .04
-----END PRIVACY-ENHANCED MESSAGE-----