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CKX(CKX) - 2024 Q2 - Quarterly Report
CKXCKX(CKX)2024-08-12 21:08

Financial Performance - Total revenue for the three months ended June 30, 2024, was 1,027,434,asignificantincreaseof177.61,027,434, a significant increase of 177.6% compared to 370,380 for the same period in 2023[6] - Net income for the three months ended June 30, 2024, was 565,278,comparedtoanetincomeof565,278, compared to a net income of 103,228 for the same period in 2023, representing a year-over-year increase of 448.5%[6] - Basic net income per share for the three months ended June 30, 2024, was 0.28,comparedto0.28, compared to 0.05 for the same period in 2023, indicating a year-over-year increase of 460%[6] - Net income for the six months ended June 30, 2024, was 163,949,comparedtoanetlossof163,949, compared to a net loss of 134,411 for the same period in 2023[10] - The company’s income before income taxes for the first half of 2024 was 710,756,asignificantincreasefrom710,756, a significant increase from 137,637 in 2023, reflecting a growth of 417%[26] Revenue Breakdown - Oil and gas revenues reached 161,148forthethreemonthsendedJune30,2024,up58.8161,148 for the three months ended June 30, 2024, up 58.8% from 101,361 in the same period last year[6] - Surface revenue increased to 866,286forthethreemonthsendedJune30,2024,comparedto866,286 for the three months ended June 30, 2024, compared to 258,237 for the same period in 2023, marking a growth of 235.5%[6] - Oil and gas revenues for the first half of 2024 were 161,148,comparedto161,148, compared to 101,361 in 2023, marking a 59% increase[26] - Oil and gas revenues accounted for 21% of total revenues for the six months ended June 30, 2024, compared to 28% in the same period of 2023[49] - The company’s five largest customers generated revenues of 536,615and536,615 and 175,020 for the six months ended June 30, 2024, and 2023, respectively, showing a substantial increase of 206%[29] Expenses and Liabilities - General and administrative expenses rose to 503,118forthethreemonthsendedJune30,2024,comparedto503,118 for the three months ended June 30, 2024, compared to 253,991 in the same period last year, reflecting an increase of 97.8%[6] - The company reported total segment costs and expenses of 17,705forthefirsthalfof2024,comparedto17,705 for the first half of 2024, compared to 13,222 in 2023, indicating a rise of 34%[26] - Cash and cash equivalents at the end of the period were 7,866,811,downfrom7,866,811, down from 8,386,252 at the end of the previous year[10] - The company had no outstanding debt as of June 30, 2024, with current assets totaling 9,688,496[54]AssetManagement−Totalstockholders′equityasofJune30,2024,was9,688,496[54] Asset Management - Total stockholders' equity as of June 30, 2024, was 18,484,163, an increase from 18,318,058asofDecember31,2023[5]−Thetotalliabilitiesandstockholders′equityasofJune30,2024,amountedto18,318,058 as of December 31, 2023[5] - The total liabilities and stockholders' equity as of June 30, 2024, amounted to 18,950,450, compared to 18,813,406asofDecember31,2023[5]−TotalidentifiableassetsasofJune30,2024,were18,813,406 as of December 31, 2023[5] - Total identifiable assets as of June 30, 2024, were 18,950,450, compared to 18,813,406attheendof2023[25]ShareholderActivities−Thecompanyrepurchased39,012sharesoftreasurystockatacostof18,813,406 at the end of 2023[25] Shareholder Activities - The company repurchased 39,012 shares of treasury stock at a cost of 472,602 as of June 30, 2024, compared to 22,946 shares at a cost of 263,748asofDecember31,2023[5]−Share−basedcompensationexpenserecognizedforthesixmonthsendedJune30,2024,was263,748 as of December 31, 2023[5] - Share-based compensation expense recognized for the six months ended June 30, 2024, was 211,010 for restricted stock units, compared to 209,864inthesameperiodof2023[31]StrategicInitiatives−Thecompanyactivelysearchesforadditionalrealestateforpurchase,focusingonsouthwestLouisiana,withanemphasisontimberlandandagriculturalland[40]−ThecompanyisactivelyseekingadditionalundevelopedacresinSouthwestLouisianaforpotentialresidentialsubdivisions[43]−Thecompanyhasreceivedpreliminaryindicationsofinterestfrommultiplepartiesregardingthepotentialacquisitionofthecompanyoritsassets,aspartofastrategicevaluationprocessinitiatedonAugust21,2023[41]OtherInformation−ThecompanydidnotdeclareanydividendsduringthesixmonthsendedJune30,2024,and2023[17]−Depreciationexpenseremainedconsistentat209,864 in the same period of 2023[31] Strategic Initiatives - The company actively searches for additional real estate for purchase, focusing on southwest Louisiana, with an emphasis on timberland and agricultural land[40] - The company is actively seeking additional undeveloped acres in Southwest Louisiana for potential residential subdivisions[43] - The company has received preliminary indications of interest from multiple parties regarding the potential acquisition of the company or its assets, as part of a strategic evaluation process initiated on August 21, 2023[41] Other Information - The company did not declare any dividends during the six months ended June 30, 2024, and 2023[17] - Depreciation expense remained consistent at 2,130 for both the six months ended June 30, 2024, and 2023[24] - No impairment charges were recorded during the six months ended June 30, 2024, and 2023, indicating stable asset valuations[14] - The company has not made any further awards under the 2021 Stock Incentive Plan during the six months ended June 30, 2024[15] - The company has restated its Articles of Incorporation and amended its By-Laws as of August 10, 2023[63] - The certifications of the President and Chief Financial Officer were filed pursuant to the Sarbanes-Oxley Act of 2002[63] - The report was signed on behalf of CKX Lands, Inc. by W. Gray Stream, the President and Principal Executive Officer[64]