<PAGE>


                                 November 8, 1999







Securities and Exchange Commission
450 Fifth St., N.W.
Judiciary Plaza
Washington, D.C.  20549-1004

Via Edgar Electronic Filing System

                                                      In Re:  File Number 0-9219
                                                              ------------------

Gentlemen:

                Pursuant  to   regulations   of  the   Securities  and  Exchange
Commission,   submitted  herewith for  filing on behalf  of  Avoca, Incorporated
(the "Company")  is the Company's  Report  on  Form  10-QSB for the period ended
September 30, 1999.

                This  filing is being  effected  by direct  transmission  to the
Commission's EDGAR System.

                                               Sincerely,


                                               /s/ Robert C. Baird, Jr.
                                               ---------------------------------
                                               Robert C. Baird, Jr.
                                               President and
                                               Principal Financial Officer
                                               (504) 599-3069

RCB/drm
<PAGE>

                     U.S. 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  September 30, 1999
                              --------------------------------------------------

[ ]  TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
                         SECURITIES EXCHANGE ACT OF 1934

For the transition period from                        to
                              -----------------------    -----------------------

Commission file number 0-9219
                      ----------------------------------------------------------

                               AVOCA, INCORPORATED
--------------------------------------------------------------------------------
       (Exact name of small business issuer as specified in its charter)

            Louisiana                                 72-0590868
-------------------------------                  -------------------
(State or other jurisdiction of                   (I.R.S. Employer
 incorporation or organization)                  Identification No.)

         228 St. Charles Avenue, Suite 838, New Orleans, Louisiana 70130
--------------------------------------------------------------------------------
                    (Address of principal executive offices)

                                 (504) 552-4720
--------------------------------------------------------------------------------
                           (Issuer's telephone number)


--------------------------------------------------------------------------------
                     (Former name, former address and former
                    fiscal year, if changed since last report

Check  whether  the issuer (1) filed all reports required to be filed by Section
13 or 15(d) of  the  Exchange Act during the past 12 months (or for such shorter
period that the registrant was required  to file such reports), and (2) has been
subject to such filing requirements for the past 90 days.  Yes  X    No
                                                              -----    -----

State the number of shares outstanding of each of the issuer's classes of common
equity, as of the latest practicable date:   830,500 shares on October 31, 1999
                                          --------------------------------------

Transitional Small Business Disclosure Format (check one);  Yes      No  X
                                                               -----   -----

An exhibit index is located at page 14 of this report.


                                    Page 1 of 14

<PAGE>



                               AVOCA, INCORPORATED

                                    I N D E X




                                                                        Page No.

Part I.           Financial Information (Unaudited)
                  ---------------------

                  Condensed Balance Sheet - September 30, 1999                 4

                  Condensed Statements of Income
                           Three Months Ended September 30, 1999
                           and 1998 and Nine Months Ended
                           September 30, 1999 and 1998                         5

                  Condensed Statements of Cash Flows
                           Nine Months Ended September 30, 1999
                           and 1998                                            6

                  Notes to Condensed Financial Statements                      7

                  Management's Discussion and Analysis or
                  Plan of Operation                                         8-12

Part II.          Other Information
                  -----------------

                  Exhibits and Reports on Form 8-K                            12

                  Signature                                                   13



                                    Page 2 of 14

<PAGE>



                               AVOCA, INCORPORATED

                         PART I - FINANCIAL INFORMATION

                           Item 1 Financial Statements




                                    Page 3 of 14

<PAGE>

<TABLE>
<CAPTION>
                                               Avoca, Incorporated

                                       Condensed Balance Sheet (Unaudited)

                                                September 30, 1999



Assets
Current assets:
<S>                                                                                                     <C>
     Cash                                                                                               $   52,233
     Short-term investments                                                                                929,771
     Accounts receivable                                                                                    38,512
     Accrued interest receivable                                                                            35,074
     Prepaid expenses                                                                                       14,296
                                                                                                        ----------
Total current assets                                                                                     1,069,886

Property and equipment, less accumulated depreciation and depletion                                         72,385

Other assets:
     Long-term investments                                                                               1,653,180
     Avoca Drainage Bonds, $415,000, in default -- at nominal amount                                             1
                                                                                                        ----------
                                                                                                        $2,795,452
                                                                                                        ==========


Liabilities and shareholders' equity

Current liabilities:

     Accounts payable and accrued expenses                                                              $    5,340
     Income taxes payable                                                                                   30,611
                                                                                                        ----------
Total current liabilities                                                                                   35,951

Deferred income taxes                                                                                       12,508

Shareholders' equity:
     Common stock, no par value -- authorized, issued and outstanding
          830,500 shares                                                                                    94,483
     Retained earnings                                                                                   2,652,510
                                                                                                        ----------
Total shareholders' equity                                                                               2,746,993
                                                                                                        ----------
                                                                                                        $2,795,452
                                                                                                        ==========

See accompanying notes
</TABLE>

                                    Page 4 of 14

<PAGE>

<TABLE>
<CAPTION>


                               Avoca, Incorporated

                   Condensed Statements of Income (Unaudited)



                                                               Three months ended                    Nine months ended
                                                                 September 30                          September 30
                                                             1999               1998              1999               1998
                                                         ----------------------------------------------------------------
Revenue:
<S>                                                      <C>                <C>               <C>                <C>
   Royalties                                             $ 52,832           $ 40,164          $124,944           $112,247
   Less severance taxes                                     3,050              1,949             6,742              5,218
                                                         --------           --------          --------           --------
                                                           49,782             38,215           118,202            107,029

   Lease bonuses and delay rentals                        327,510             46,200           408,855            269,118
   Lease option payments                                        -                  -            79,938                  -
   Interest income                                         33,581             34,567            96,688             99,070
   Rental and other income                                  3,145              6,916            26,728             27,916
                                                         --------           --------          --------           --------
                                                          414,018            125,898           730,411            503,133

Expenses:
   Legal and accounting services                            2,442              4,006            19,556             19,430
   Consultant fees                                         10,894             11,929            43,482             43,676
   Geological and engineering fees                          2,216              3,630             6,464             12,291
   Insurance                                                6,192              5,852            18,786             17,088
   Miscellaneous expenses                                  17,893              5,815            49,552             65,408
                                                         --------           --------          --------           --------
                                                           39,637             31,232           137,840            157,893

Income before income taxes                                374,381             94,666           592,571            345,240

Income taxes                                              138,534             35,724           208,062            115,900
                                                         --------           --------          --------           --------

Net income                                               $235,847           $ 58,942          $384,509           $229,340
                                                         ========           ========          ========           ========


Net income per share                                       $ 0.28             $ 0.07            $ 0.46             $ 0.28
                                                         ========           ========          ========           ========
</TABLE>
See accompanying notes

                                    Page 5 of 14

<PAGE>
<TABLE>
<CAPTION>


                               Avoca, Incorporated

                 Condensed Statements of Cash Flows (Unaudited)



                                                                                              Nine months ended
                                                                                                 September 30
                                                                                         1999                        1998
                                                                                  ---------------------------------------

Operating activities
<S>                                                                               <C>                         <C>
Net income                                                                        $   384,509                 $   229,340
Adjustments to reconcile net income to net cash
  provided by (used in) operating activities:
     Depreciation expense                                                               2,820                       2,052
     Deferred taxes                                                                      (380)                       (380)
     Changes in operating assets and liabilities:
         Operating assets                                                             (31,172)                     (1,557)
         Operating liabilities                                                         18,418                      23,598
                                                                                   ----------                  ----------
Net cash provided by operating activities                                             374,195                     253,053

Investing activities
Maturity of investments                                                             1,281,687                   1,616,624
Purchase of investments                                                            (1,652,640)                 (1,741,021)
Purchase of equipment                                                                    (625)                          -
                                                                                   ----------                  ----------
Net cash provided by (used in) investing activities                                  (371,578)                   (124,397)

Financing activities
Dividend paid                                                                        (265,760)                   (622,875)
                                                                                   ----------                  ----------
Net cash used in financing activities                                                (265,760)                   (622,875)

Decrease in cash and cash equivalents                                                (263,143)                   (494,219)
Cash and cash equivalents at beginning of period                                      315,376                     500,370
                                                                                   ----------                  ----------
Cash and cash equivalents at end of period                                         $   52,233                  $    6,151
                                                                                   ==========                  ==========


See accompanying notes
</TABLE>

                                    Page 6 of 14

<PAGE>


                               Avoca, Incorporated

               Notes to Condensed Financial Statements (Unaudited)

                      Nine months ended September 30, 1999



1.  Basis of Accounting

The accompanying  unaudited condensed financial statements have been prepared in
accordance with generally accepted  accounting  principles for interim financial
information  and  with the  instructions  of Form  10-QSB  and  Item  310(b)  of
Regulation  S-B.  Accordingly,  they do not include all of the  information  and
footnotes  required by generally  accepted  accounting  principles  for complete
financial statements. In the opinion of management,  all adjustments (consisting
of normal recurring accruals)  considered necessary for a fair presentation have
been included.  Operating  results for the nine-month period ended September 30,
1999 are not necessarily  indicative of the results that may be expected for the
year ended  December 31, 1999. For further  information,  refer to the financial
statements and footnotes thereto included in the Company's annual  shareholders'
report  incorporated by reference in the Form 10-KSB for the year ended December
31, 1998.

The  Company  considers  its United  States  Government  securities  held with a
maturity of three  months or less when  purchased  to be cash  equivalents.  The
Company's United States  Government  obligations which do not meet this criteria
are  included  in,  and  represent  substantially  all of,  the  short-term  and
long-term investment balances.




                                    Page 7 of 14

<PAGE>



Item 2 -          Management's Discussion and
                  Analysis or Plan of Operation

         The unaudited  condensed  statements of income show that net income for
the third quarter of 1999, as compared with the third quarter of 1998, increased
from $58,942 to $235,847.
         Lease bonuses and delay rentals for the third quarter of 1999 increased
by $281,310,  or  approximately  609% as a result of the bonus  received for the
granting of an oil, gas and mineral lease to CNG Producing  Company.  The lease,
covering  1,637.55  acres  on the  southwest  part of the  island,  was  granted
pursuant  to an option to lease  granted in the second  quarter of 1999 to Kevin
Caliva & Associates, Inc. and assigned to CNG Producing Company.
         Royalty income net of severance taxes increased from $38,215 to $49,782
or approximately 30%  because of royalties received from The Meridian Resource &
Exploration Co. on  the  C.M.  Thibodeaux No. 1 well.  The C.M. Thibodeaux No. 1
well  was  placed  on production  June 15, 1999  from the Operc 5 Sand, went off
production  June 25  due  to  the  blowout of the C.M. Thibodeaux No. 2 well and
returned  to  production  August 24  after the successful  plugging of the No. 2
well.  The  C.M.  Thibodeaux  No. 3  well (a replacement for the No. 2 well) has
been  drilled  to  its  total  depth  and the  operator is commencing completion
operations.  The operator has advised the Company that its  net royalty interest
in the No. 1 and the No. 3 wells is approximately 2.87%.
        On  August 12, 1999,  Burlington  Resources  Oil and Gas Co. spudded the
Conrad Industries  No. 1 well opposite the northeastern part of the island.  The
well is presently drilling at about 16,800 feet to a total depth of 19,200 feet.
Avoca, Incorporated will have an interest in this unit.
         As  compared  with the third  quarter  of 1998,  royalty  income net of
severance  taxes from the Delta  Operating  Company  Avoca No. 1 well  decreased
$2,134 or approximately 6% because of a

                                    Page 8 of 14

<PAGE>



20% decline in  production.  The decrease  would have been greater but for a 13%
increase  in the average  sales  price of gas,  from $2.25 per Mcf for the three
months  ended  September  30, 1998 to $2.54 per Mcf for the three  months  ended
September  30, 1999.  The well was shut in August 29, 1999 to treat scale in the
producing formation.  According to the well's operator, performance is improving
and an additional treatment is scheduled to further improve  performance.  Since
the second quarter of 1997, the well has been  responsible  for virtually all of
the Company's royalty income.
         Interest  income  on  U. S.  Government  and  U. S.  Government  agency
securities decreased slightly due to lower interest rates.
         As compared with the third quarter of 1998,  total  expenses  increased
$8,405  or  approximately  27%.  Decreases  in legal  and  accounting  services,
consultant fees and geological and engineering  fees offset a slight increase in
insurance and partially  offset a $12,078  increase in  miscellaneous  expenses.
Most of the increase in miscellaneous expenses is attributable to recommencement
of special surface maintenance on the northern part of the island.
         The change in income tax expense for the three months  ended  September
30, 1999  resulted  from an increase in taxable  income for the third quarter of
1999 as compared to the third quarter of 1998.
         Total  revenue  for the nine month  period  ended  September  30,  1999
increased  $227,278  or  approximately  45% due to  increased  income from lease
bonuses and delay rentals, lease option payments and royalty income.
         Revenue from lease  bonuses and delay rentals for the first nine months
of 1999 increased  $139,737 or  approximately  52% as compared to the first nine
months of 1998. The increase results

                                    Page 9 of 14

<PAGE>



from a new oil, gas and mineral  lease on 1,637.55  acres  executed in the third
quarter with CNG Producing Company. No drilling operations were conducted on the
island during the first nine months of 1999.
         Lease option  payments  for the first nine months of 1999  increased by
$79,938  because of the granting of two oil, gas and mineral lease options.  The
first  option,  covering  1,459.30  acres on the  northwest  part of the island,
allows McRae  Exploration & Production  Inc. to lease all or part (not less than
729.65 acres) on or before  December 20, 1999. The second option  covering 2,893
acres was granted to Kevin Caliva & Associates,  Inc., assigned to CNG Producing
Company and resulted in the oil, gas and mineral lease previously discussed.
         Revenues  from  royalties  net  of  severance  taxes for the first nine
months of 1999 increased $11,173  or approximately  10% as a result of royalties
received from the  C.M. Thibodeaux No. 1 well.  Production volume from the Delta
Avoca  No. 1  well  was  2%  higher for  the first  nine months of 1999, but the
average natural gas price was 7% lower as compared with the corresponding period
of 1998.
         Interest  income  on  U.S.  Government  and  U. S.  Government   agency
securities decreased  $2,382 for the nine month period because of lower interest
rates.
         Rental income and other income for the nine months ending September 30,
1999  decreased  $1,188 or  approximately  4% due to the early renewal of a long
standing surface lease in 1998.
         Expenses for the nine months ended September 30, 1999 decreased $20,053
or approximately 13%. The $15,856 decrease in miscellaneous expenses was largely
due to the expenditure of less funds on special surface  maintenance  operations
on the  northern  part of Avoca  Island  than  the  comparable  period  of 1998.
Geological and engineering fees were reduced by $5,827 because of a

                                   Page 10 of 14

<PAGE>



decrease in the need for engineering services. Slight increases in insurance and
legal and accounting services offset the slight decrease in consultant fees.
         The change in income tax expense for the nine  months  ended  September
30, 1999 resulted  from an increase in taxable  income for the first nine months
of 1999 as compared to the same period of 1998.
         The  Company's  continued  liquidity  is  evidenced  by the  fact  that
approximately  94% of its assets,  as measured by book value,  are cash and U.S.
Government and U.S. Government agency securities.
         In addition to interest income and the leasing of hunting  rights,  the
Company  customarily  derives  essentially all of its other income from bonuses,
delay  rentals and  royalties  under oil,  gas and  mineral  leases of its Avoca
Island acreage.  The Company's business is passive and all capital  requirements
for exploration,  development and production of the Company's  mineral resources
are funded by its lessees.
         The Company has completed its  assessment of the potential  impact that
the Year 2000 (Y2K) issue may have with respect to its  operations and financial
position.  Due  to the  nature  of  the  Company's  operations,  the  volume  of
accounting  transactions  is limited and the  Company's  accounting  records are
maintained through manual input to a non-complex  financial  accounting software
application  that is Y2K  compliant.  The Company has not  incurred and does not
expect to incur any significant costs with respect to Y2K issues.
         Two  independent  oil  and  gas  companies  represent  the   source  of
substantially   all   of   the  Company's royalty income.  Management  of Avoca,
Incorporated has been informed by these

                                   Page 11 of 14

<PAGE>



companies  that  the Y2K  issue  would  not  have a  significant  impact  on its
respective oil and gas operations.
         The Company  deals with a limited  number of vendors who are  primarily
geologists,  engineers,  attorneys  and  accountants.  Services  provided by the
Company's primary vendors are not expected to be significantly  disrupted by the
Y2K issue.
         Companies,  including Avoca,  Incorporated,  cannot make Y2K Compliance
certifications  because  the  ability  of any  organization's  systems  (and the
systems of other outside  organizations)  to operate  reliably after midnight on
December 31, 1999 is dependent  upon factors that may be outside the control of,
or unknown  to,  the  organization.  While  there can be no  assurance  that the
Company will not be materially  adversely affected by Y2K problems,  the Company
believes  that is has  adequately  addressed the risks  associated  with the Y2K
issue.

                           Part II - OTHER INFORMATION

Item 6 - Exhibits and Reports on Form 8-K
         (a)      Exhibits required by Item 601 of Regulation S-B:
         Exhibit 27 - Financial Data Schedule.
         (b)      Reports on Form 8-K
         Reports on Form 8-K: No reports  have been filed during the quarter for
which this report is filed.


                                   Page 12 of 14

<PAGE>



                                   SIGNATURES
                                   ----------

                  Pursuant to the requirements of the Securities Exchange Act of
1934,  the  registrant has duly caused this report to be signed on its behalf by
the undersigned thereunto duly authorized.


                                                AVOCA, INCORPORATED
                                                    Registrant



                                       /s/ Robert C. Baird, Jr.
                                       -----------------------------------------
                                       Robert C. Baird, Jr.
                                       President and Principal Financial Officer




                                       November 2, 1999
                                       -----------------------------------------
                                       Date Signed



                                   Page 13 of 14

<PAGE>


                                  EXHIBIT INDEX


                                                                   Sequentially
 Exhibit                                                             Numbered
 Number              Description                                       Page


     27             Financial Data Schedule








                                   Page 14 of 14