Table of Contents

 

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, 2010

 

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.                                                                                                                                            x 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).                                                                                            o 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 x

 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).                                                                                                                                                 o Yes     x No

 

As of May 13, 2010 there were 8,277,160 shares of common stock, par value $0.50, outstanding.

 



Table of Contents

 

BARNWELL INDUSTRIES, INC.

AND SUBSIDIARIES

 

INDEX

 

PART I.

FINANCIAL INFORMATION:

 

 

 

 

Item 1.

Financial Statements

 

 

 

 

 

Condensed Consolidated Balance Sheets - March 31, 2010 and September 30, 2009 (Unaudited)

3

 

 

 

 

Condensed Consolidated Statements of Operations - three and six months ended March 31, 2010 and 2009 (Unaudited)

4

 

 

 

 

Condensed Consolidated Statements of Cash Flows - six months ended March 31, 2010 and 2009 (Unaudited)

5

 

 

 

 

Condensed Consolidated Statements of Equity and Comprehensive Income (Loss) - three months ended March 31, 2010 and 2009 (Unaudited)

6

 

 

 

 

Condensed Consolidated Statements of Equity and Comprehensive Income (Loss) - six months ended March 31, 2010 and 2009 (Unaudited)

7

 

 

 

 

Notes to Condensed Consolidated Financial Statements (Unaudited)

8

 

 

 

Item 2.

Management’s Discussion and Analysis of Financial Condition and Results of Operations

24

 

 

 

Item 4T.

Controls and Procedures

38

 

 

 

PART II.

OTHER INFORMATION:

 

 

 

 

Item 6.

Exhibits

38

 

 

 

 

Signature

39

 

 

 

 

Index to Exhibits

40

 



Table of Contents

 

PART I - FINANCIAL INFORMATION

 

ITEM 1.          FINANCIAL STATEMENTS

 

BARNWELL INDUSTRIES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

 

 

 

 

March 31,

 

 

 

September 30,

 

 

 

 

 

2010

 

 

 

2009

 

 

ASSETS

 

 

 

 

 

 

 

 

 

CURRENT ASSETS:

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

 

$

12,651,000

 

 

 

$

6,879,000

 

 

Accounts receivable, net of allowance for doubtful accounts of:

 

 

 

 

 

 

 

 

 

$49,000 at March 31, 2010; $47,000 at September 30, 2009

 

 

4,871,000

 

 

 

3,978,000

 

 

Current taxes receivable

 

 

1,200,000

 

 

 

653,000

 

 

Prepaid expenses

 

 

1,005,000

 

 

 

1,403,000

 

 

Deferred income taxes

 

 

203,000

 

 

 

272,000

 

 

Real estate held for sale

 

 

13,629,000

 

 

 

13,585,000

 

 

Other current assets

 

 

982,000

 

 

 

591,000

 

 

 

 

 

 

 

 

 

 

 

 

TOTAL CURRENT ASSETS

 

 

34,541,000

 

 

 

27,361,000

 

 

 

 

 

 

 

 

 

 

 

 

INVESTMENT IN RESIDENTIAL PARCELS

 

 

3,800,000

 

 

 

4,598,000

 

 

 

 

 

 

 

 

 

 

 

 

INVESTMENT IN JOINT VENTURES

 

 

1,875,000

 

 

 

1,920,000

 

 

 

 

 

 

 

 

 

 

 

 

INVESTMENT IN LAND INTERESTS

 

 

538,000

 

 

 

538,000

 

 

 

 

 

 

 

 

 

 

 

 

PROPERTY AND EQUIPMENT

 

 

226,511,000

 

 

 

212,215,000

 

 

ACCUMULATED DEPRECIATION, DEPLETION, AND AMORTIZATION

 

 

(173,941,000

)

 

 

(160,528,000

)

 

PROPERTY AND EQUIPMENT, NET

 

 

52,570,000

 

 

 

51,687,000

 

 

 

 

 

 

 

 

 

 

 

 

TOTAL ASSETS

 

 

$

93,324,000

 

 

 

$

86,104,000

 

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND EQUITY

 

 

 

 

 

 

 

 

 

CURRENT LIABILITIES:

 

 

 

 

 

 

 

 

 

Accounts payable

 

 

$

2,437,000

 

 

 

$

3,277,000

 

 

Accrued capital expenditures

 

 

1,989,000

 

 

 

588,000

 

 

Accrued incentive plan costs

 

 

1,433,000

 

 

 

1,427,000

 

 

Other accrued compensation costs

 

 

366,000

 

 

 

546,000

 

 

Payable to joint interest owners

 

 

1,326,000

 

 

 

1,001,000

 

 

Income taxes payable

 

 

1,735,000

 

 

 

619,000

 

 

Current portion of long-term debt

 

 

16,000,000

 

 

 

14,335,000

 

 

Other current liabilities

 

 

2,999,000

 

 

 

2,212,000

 

 

 

 

 

 

 

 

 

 

 

 

TOTAL CURRENT LIABILITIES

 

 

28,285,000

 

 

 

24,005,000

 

 

 

 

 

 

 

 

 

 

 

 

LONG-TERM DEBT

 

 

13,000,000

 

 

 

16,665,000

 

 

 

 

 

 

 

 

 

 

 

 

LIABILITY FOR RETIREMENT BENEFITS

 

 

4,889,000

 

 

 

4,848,000

 

 

 

 

 

 

 

 

 

 

 

 

ASSET RETIREMENT OBLIGATION

 

 

4,937,000

 

 

 

4,508,000

 

 

 

 

 

 

 

 

 

 

 

 

DEFERRED INCOME TAXES

 

 

3,454,000

 

 

 

2,858,000

 

 

 

 

 

 

 

 

 

 

 

 

TOTAL LIABILITIES

 

 

54,565,000

 

 

 

52,884,000

 

 

 

 

 

 

 

 

 

 

 

 

EQUITY:

 

 

 

 

 

 

 

 

 

BARNWELL INDUSTRIES, INC. STOCKHOLDERS’ EQUITY:

 

 

 

 

 

 

 

 

 

Common stock, par value $0.50 per share; Authorized, 20,000,000 shares:

 

 

 

 

 

 

 

 

 

8,445,060 issued at March 31, 2010; 8,403,060 issued at September 30, 2009

 

 

4,223,000

 

 

 

4,202,000

 

 

Additional paid-in capital

 

 

1,289,000

 

 

 

1,227,000

 

 

Retained earnings

 

 

33,942,000

 

 

 

30,500,000

 

 

Accumulated other comprehensive income (loss), net

 

 

815,000

 

 

 

(1,349,000

)

 

Treasury stock, at cost:

 

 

 

 

 

 

 

 

 

167,900 shares at March 31, 2010; 162,900 shares at September 30, 2009

 

 

(2,286,000

)

 

 

(2,262,000

)

 

 

 

 

 

 

 

 

 

 

 

TOTAL BARNWELL INDUSTRIES, INC. STOCKHOLDERS’ EQUITY

 

 

37,983,000

 

 

 

32,318,000

 

 

Non-controlling interests

 

 

776,000

 

 

 

902,000

 

 

 

 

 

 

 

 

 

 

 

 

TOTAL EQUITY

 

 

38,759,000

 

 

 

33,220,000

 

 

 

 

 

 

 

 

 

 

 

 

TOTAL LIABILITIES AND EQUITY

 

 

$

93,324,000

 

 

 

$

86,104,000

 

 

 

See Notes to Condensed Consolidated Financial Statements

 

3



Table of Contents

 

BARNWELL INDUSTRIES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

 

 

 

 

Three months ended

 

 

 

Six months ended

 

 

 

 

 

March 31,

 

 

 

March 31,

 

 

 

 

 

2010

 

 

 

2009

 

 

 

2010

 

 

 

2009

 

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Oil and natural gas

 

 

$

   7,559,000

 

 

 

$

 5,549,000

 

 

 

$

  14,703,000

 

 

 

$

 13,260,000

 

 

Contract drilling

 

 

995,000

 

 

 

1,089,000

 

 

 

3,283,000

 

 

 

2,223,000

 

 

Sale of interest in leasehold land, net

 

 

1,128,000

 

 

 

201,000

 

 

 

2,219,000

 

 

 

201,000

 

 

Sale of development rights, net

 

 

-

 

 

 

-

 

 

 

2,497,000

 

 

 

833,000

 

 

Gas processing and other

 

 

78,000

 

 

 

332,000

 

 

 

223,000

 

 

 

576,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

9,760,000

 

 

 

7,171,000

 

 

 

22,925,000

 

 

 

17,093,000

 

 

Costs and expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Oil and natural gas operating

 

 

2,550,000

 

 

 

2,478,000

 

 

 

4,859,000

 

 

 

4,896,000

 

 

Contract drilling operating

 

 

752,000

 

 

 

976,000

 

 

 

2,384,000

 

 

 

2,117,000

 

 

General and administrative

 

 

2,023,000

 

 

 

2,043,000

 

 

 

4,410,000

 

 

 

3,987,000

 

 

Depreciation, depletion, and amortization

 

 

2,313,000

 

 

 

3,180,000

 

 

 

4,654,000

 

 

 

6,548,000

 

 

Reduction of carrying value of assets

 

 

-

 

 

 

22,088,000

 

 

 

798,000

 

 

 

22,088,000

 

 

Bad debt expense

 

 

-

 

 

 

594,000

 

 

 

-

 

 

 

594,000

 

 

Interest expense, net

 

 

283,000

 

 

 

124,000

 

 

 

580,000

 

 

 

354,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

7,921,000

 

 

 

31,483,000

 

 

 

17,685,000

 

 

 

40,584,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings (loss) before income taxes

 

 

1,839,000

 

 

 

(24,312,000

)

 

 

5,240,000

 

 

 

(23,491,000

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income tax provision (benefit)

 

 

160,000

 

 

 

(7,320,000

)

 

 

1,134,000

 

 

 

(7,063,000

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NET EARNINGS (LOSS)

 

 

1,679,000

 

 

 

(16,992,000

)

 

 

4,106,000

 

 

 

(16,428,000

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Less: Net earnings attributable to non-controlling interests

 

 

189,000

 

 

 

5,000

 

 

 

664,000

 

 

 

145,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NET EARNINGS (LOSS) ATTRIBUTABLE TO BARNWELL INDUSTRIES, INC.

 

 

$

   1,490,000

 

 

 

$

(16,997,000

)

 

 

$

   3,442,000

 

 

 

$

(16,573,000

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

BASIC NET EARNINGS (LOSS) PER COMMON SHARE ATTRIBUTABLE TO BARNWELL INDUSTRIES, INC. STOCKHOLDERS

 

 

$

            0.18

 

 

 

$

           (2.06

)

 

 

$

            0.42

 

 

 

$

           (2.01

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

DILUTED NET EARNINGS (LOSS) PER COMMON SHARE ATTRIBUTABLE TO BARNWELL INDUSTRIES, INC. STOCKHOLDERS

 

 

$

            0.18

 

 

 

$

           (2.06

)

 

 

$

            0.42

 

 

 

$

           (2.01

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

WEIGHTED-AVERAGE NUMBER OF COMMON SHARES OUTSTANDING:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

BASIC

 

 

8,277,160

 

 

 

8,240,160

 

 

 

8,270,518

 

 

 

8,240,729

 

 

DILUTED

 

 

8,277,160

 

 

 

8,240,160

 

 

 

8,270,518

 

 

 

8,240,729

 

 

 

See Notes to Condensed Consolidated Financial Statements

 

4



Table of Contents

 

BARNWELL INDUSTRIES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

 

 

 

 

Six months ended

 

 

 

 

 

March 31,

 

 

 

 

 

2010

 

 

2009

 

 

Cash flows from operating activities:

 

 

 

 

 

 

 

 

Net earnings (loss)

 

 

$

 4,106,000

 

 

$

(16,428,000

)

 

Adjustments to reconcile net earnings (loss) to net cash

 

 

 

 

 

 

 

 

provided by (used in) operating activities:

 

 

 

 

 

 

 

 

Depreciation, depletion, and amortization

 

 

4,654,000

 

 

6,548,000

 

 

Reduction of carrying value of assets

 

 

798,000

 

 

22,088,000

 

 

Deferred income tax expense (benefit)

 

 

522,000

 

 

(6,784,000

)

 

Retirement benefits expense

 

 

405,000

 

 

251,000

 

 

Share-based compensation expense (benefit)

 

 

217,000

 

 

(416,000

)

 

Accretion of asset retirement obligation

 

 

156,000

 

 

132,000

 

 

Bad debt expense

 

 

-

 

 

594,000

 

 

Asset retirement obligation payments

 

 

(36,000

)

 

(128,000

)

 

Retirement benefits payments

 

 

(231,000

)

 

(3,000

)

 

Sale of interest in leasehold land, net

 

 

(2,219,000

)

 

(201,000

)

 

Sale of development rights, net

 

 

(2,497,000

)

 

(833,000

)

 

Additions to real estate held for sale

 

 

(44,000

)

 

(3,635,000

)

 

Decrease from changes in current assets and liabilities

 

 

(589,000

)

 

(5,512,000

)

 

 

 

 

 

 

 

 

 

 

Net cash provided by (used in) operating activities

 

 

5,242,000

 

 

(4,327,000

)

 

 

 

 

 

 

 

 

 

 

Cash flows from investing activities:

 

 

 

 

 

 

 

 

Proceeds from sale of development rights, net of fees paid

 

 

2,497,000

 

 

833,000

 

 

Proceeds from sale of interest in leasehold land, net of fees paid

 

 

2,243,000

 

 

201,000

 

 

Proceeds from sale of oil and natural gas properties

 

 

704,000

 

 

-

 

 

Proceeds from gas over bitumen royalty adjustments

 

 

53,000

 

 

116,000

 

 

Return of capital distribution from joint venture

 

 

45,000

 

 

-

 

 

Refund of deposits on residential parcels

 

 

-

 

 

200,000

 

 

Investment in joint ventures

 

 

-

 

 

(77,000

)

 

Capital expenditures - oil and natural gas

 

 

(2,150,000

)

 

(6,237,000

)

 

Capital expenditures - all other

 

 

(130,000

)

 

(12,000

)

 

 

 

 

 

 

 

 

 

 

Net cash provided by (used in) investing activities

 

 

3,262,000

 

 

(4,976,000

)

 

 

 

 

 

 

 

 

 

 

Cash flows from financing activities:

 

 

 

 

 

 

 

 

Proceeds from long-term debt borrowings

 

 

-

 

 

4,445,000

 

 

Repayments of long-term debt

 

 

(2,000,000

)

 

(603,000

)

 

Contributions from non-controlling interests

 

 

128,000

 

 

15,000

 

 

Proceeds from exercise of stock options

 

 

59,000

 

 

-

 

 

Payment of loan commitment fee

 

 

-

 

 

(60,000

)

 

Purchases of common stock for treasury

 

 

-

 

 

(97,000

)

 

Distributions to non-controlling interests

 

 

(918,000

)

 

(181,000

)

 

 

 

 

 

 

 

 

 

 

Net cash (used in) provided by financing activities

 

 

(2,731,000

)

 

3,519,000

 

 

 

 

 

 

 

 

 

 

 

Effect of exchange rate changes on cash and cash equivalents

 

 

(1,000

)

 

(646,000

)

 

 

 

 

 

 

 

 

 

 

Net increase (decrease) in cash and cash equivalents

 

 

5,772,000

 

 

(6,430,000

)

 

Cash and cash equivalents at beginning of period

 

 

6,879,000

 

 

13,618,000

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents at end of period

 

 

$

 12,651,000

 

 

$

  7,188,000

 

 

 

See Notes to Condensed Consolidated Financial Statements

 

5


 


Table of Contents

 

BARNWELL INDUSTRIES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF EQUITY AND COMPREHENSIVE INCOME (LOSS)

Three months ended March 31, 2010 and 2009

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accumulated

 

 

 

 

 

 

 

 

 

 

 

 

Additional

 

 

 

 

 

Other

 

 

 

 

 

 

 

 

Shares

 

Common

 

Paid-In

 

Comprehensive

 

Retained

 

Comprehensive

 

Treasury

 

Non-controlling

 

Total

 

 

Outstanding

 

Stock

 

Capital

 

Income (Loss)

 

Earnings

 

Income (Loss)

 

Stock

 

Interests

 

Equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at December 31, 2008

 

 

8,240,160

 

 

 

$

4,202,000

 

 

 

$

1,227,000

 

 

 

 

 

 

 

$

55,286,000

 

 

 

$

(3,080,000

)

 

 

$

(2,262,000

)

 

 

$

1,222,000

 

 

 

$

56,595,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Distributions to non-controlling interests

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(181,000

)

 

 

(181,000

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Comprehensive loss:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

(16,992,000

)

 

 

(16,997,000

)

 

 

 

 

 

 

 

 

 

 

5,000

 

 

 

(16,992,000

)

Other comprehensive loss —

foreign currency translation adjustments,

net of $901,000 tax benefit

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(410,000

)

 

 

 

 

 

 

(410,000

)

 

 

 

 

 

 

 

 

 

 

(410,000

)

Other comprehensive income —

retirement plans - amortization of accumulated

other comprehensive loss into net periodic

benefit cost, net of $12,000 of taxes

 

 

 

 

 

 

 

 

 

 

 

 

 

 

23,000

 

 

 

 

 

 

 

23,000

 

 

 

 

 

 

 

 

 

 

 

23,000

 

Total comprehensive loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(17,379,000

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Comprehensive income attributable to non-controlling interests

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(5,000

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Comprehensive loss attributable to Barnwell Industries, Inc.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

(17,384,000

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

At March 31, 2009

 

 

8,240,160

 

 

 

$

4,202,000

 

 

 

$

1,227,000

 

 

 

 

 

 

 

$

38,289,000

 

 

 

$

(3,467,000

)

 

 

$

(2,262,000

)

 

 

$

1,046,000

 

 

 

$

39,035,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at December 31, 2009

 

 

8,277,160

 

 

 

$

4,223,000

 

 

 

$

1,289,000

 

 

 

 

 

 

 

$

32,452,000

 

 

 

$

(318,000

)

 

 

$

(2,286,000

)

 

 

$

1,233,000

 

 

 

$

36,593,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Contributions from non-controlling interests

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

41,000

 

 

 

41,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Distributions to non-controlling interests

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(687,000

)

 

 

(687,000

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Comprehensive income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net earnings

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

1,679,000

 

 

 

1,490,000

 

 

 

 

 

 

 

 

 

 

 

189,000

 

 

 

1,679,000

 

Other comprehensive income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency translation adjustments, net of taxes of $0

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,066,000

 

 

 

 

 

 

 

1,066,000

 

 

 

 

 

 

 

 

 

 

 

1,066,000

 

Retirement plans - amortization of accumulated

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

other comprehensive loss into net periodic

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

benefit cost, net of taxes of $0

 

 

 

 

 

 

 

 

 

 

 

 

 

 

67,000

 

 

 

 

 

 

 

67,000

 

 

 

 

 

 

 

 

 

 

 

67,000

 

Total comprehensive income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2,812,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Comprehensive income attributable to non-controlling interests

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(189,000

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Comprehensive income attributable to Barnwell Industries, Inc.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

2,623,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

At March 31, 2010

 

 

8,277,160

 

 

 

$

4,223,000

 

 

 

$

1,289,000

 

 

 

 

 

 

 

 

$

33,942,000

 

 

 

$

815,000

 

 

 

$

(2,286,000

)

 

 

$

776,000

 

 

 

$

38,759,000

 

 

See Notes to Condensed Consolidated Financial Statements

 

6



Table of Contents

 

BARNWELL INDUSTRIES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF EQUITY AND COMPREHENSIVE INCOME (LOSS)

Six months ended March 31, 2010 and 2009

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

Accumulated

 

 

 

 

 

 

 

 

 

 

 

 

 

Additional

 

 

 

 

 

Other

 

 

 

 

 

 

 

 

 

Shares

 

Common

 

Paid-In

 

Comprehensive

 

Retained

 

Comprehensive

 

Treasury

 

Non-controlling

 

Total

 

 

 

Outstanding

 

Stock

 

Capital

 

Income (Loss)

 

Earnings

 

Income (Loss)

 

Stock

   

Interests

 

Equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at September 30, 2008

 

 

8,252,860

 

 

 

$

4,202,000

 

 

 

$

1,222,000

 

 

 

 

 

 

 

 

$

54,862,000

 

 

 

$

3,143,000

 

 

 

$

(2,165,000

)

 

 

$

1,067,000

 

 

 

$

62,331,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Share-based compensation costs

 

 

 

 

 

 

 

 

 

 

 

 

5,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

5,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Purchases of 12,700 common shares for treasury

 

 

(12,700

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(97,000

)

 

 

 

 

 

 

 

 

(97,000

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Contributions from non-controlling interests

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

15,000

 

 

 

 

15,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Distributions to non-controlling interests

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(181,000

)

 

 

 

(181,000

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Comprehensive loss:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

(16,428,000

)

 

 

 

(16,573,000

)

 

 

 

 

 

 

 

 

 

 

 

 

 

145,000

 

 

 

 

(16,428,000

)

 

Other comprehensive loss — foreign currency translation adjustments, net of $3,078,000 tax benefit

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(6,657,000

)

 

 

 

 

 

 

 

 

(6,657,000

)

 

 

 

 

 

 

 

 

 

 

 

 

 

(6,657,000

)

 

Other comprehensive income — retirement plans - amortization of accumulated other comprehensive loss into net periodic benefit cost, net of $24,000 of taxes

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

47,000

 

 

 

 

 

 

 

 

 

47,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

47,000

 

 

Total comprehensive loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(23,038,000

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Comprehensive income attributable to non-controlling interests

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(145,000

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Comprehensive loss attributable to Barnwell Industries, Inc.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

(23,183,000

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

At March 31, 2009

 

 

8,240,160

 

 

 

$

4,202,000

 

 

 

$

1,227,000

 

 

 

 

 

 

 

 

$

38,289,000

 

 

 

$

(3,467,000

)

 

 

$

(2,262,000

)

 

 

$

1,046,000

 

 

 

$

39,035,000