<PAGE>


                                May 7, 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
March 31, 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  March 31, 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                     (I.R.S. Employer
 of 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 May 1, 1999
                                                 -------------------------------

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

An exhibit index is located at page  13  of this report.
                                   ------

<PAGE>



                               AVOCA, INCORPORATED
                               -------------------

                                    I N D E X
                                    ---------



                                                                        Page No.
                                                                        --------

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

                  Condensed Balance Sheet - March 31, 1999                     4

                  Condensed Statements of Operations
                           Three Months Ended March 31, 1999
                           and 1998                                            5

                  Condensed Statements of Cash Flows
                           Three Months Ended March 31, 1999
                           and 1998                                            6

                  Notes to Condensed Financial Statements                      7

                  Management's Discussion and Analysis or
                  Plan of Operation                                         8-10

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

                  Submission of Matters to a Vote of
                  Security Holders                                            11

                  Exhibits and Reports on Form 8-K                            11

                  Signature                                                   12



<PAGE>



                               AVOCA, INCORPORATED

                         PART I - FINANCIAL INFORMATION

                           Item 1 Financial Statements


<PAGE>
                               Avoca, Incorporated

                       Condensed Balance Sheet (Unaudited)

                                 March 31, 1999



Assets
Current assets:
   Cash                                                            $      39,730
   Short-term investments                                              1,501,836
      Accounts receivable                                                 22,363
      Accrued interest receivable                                         30,678
      Prepaid expenses                                                    10,751
                                                                   -------------
Total current assets                                                   1,605,358

Property and equipment, less accumulated depreciation and depletion       74,265

Other assets:
      Long-term investments                                              714,664
      Avoca Drainage Bonds, $415,000, in default -- at nominal amount          1
                                                                   -------------
                                                                   $   2,394,288
                                                                   =============



Liabilities and shareholders' equity 
Current liabilities:
      Accounts payable                                             $      14,030
      Income taxes payable                                                   620
                                                                   -------------
Total current liabilities                                                 14,650

Deferred income taxes                                                     12,761

Shareholders' equity:
      Common stock, no par value -- authorized, issued and outstanding
           830,500 shares                                                 94,483
      Retained earnings                                                2,272,394
                                                                   -------------
Total shareholders' equity                                             2,366,877
                                                                   -------------
                                                                   $   2,394,288
                                                                   =============

See accompanying notes


<PAGE>
<TABLE>
<CAPTION>



                               Avoca, Incorporated

                 Condensed Statements of Operations (Unaudited)




                                                                                                 Three months ended
                                                                                                      March 31
                                                                                              1999                  1998   
                                                                                          ----------            ----------
Revenue:
<S>                                                                                       <C>                   <C>       
      Royalties                                                                           $   39,341            $   32,588
      Less severance taxes                                                                     2,233                 1,302 
                                                                                          ----------            ----------
                                                                                              37,108                31,286
      Interest income                                                                         31,808                32,658 
                                                                                          ----------            ----------
                                                                                              68,916                63,944


Expenses:
      Legal and accounting services                                                           10,212                10,841
      Consultant fees                                                                         19,400                21,000
      Geological and engineering fees                                                          1,933                 4,419
      Insurance                                                                                6,285                 5,637
      Miscellaneous expenses                                                                  24,869                48,490 
                                                                                          ----------            ----------
                                                                                              62,699                90,387 
                                                                                          ----------            ----------


Income (loss) before income taxes                                                              6,217               (26,443)

Income taxes                                                                                   1,824                     -
                                                                                          ----------            ----------
Net income (loss)                                                                         $    4,393            $  (26,443)
                                                                                          ==========            ==========


Net income (loss) per share                                                               $      .01            $     (.03)
                                                                                          ==========            ==========










See accompanying notes.
</TABLE>


<PAGE>
<TABLE>
<CAPTION>



                               Avoca, Incorporated

                 Condensed Statements of Cash Flows (Unaudited)




                                                                                                 Three months ended
                                                                                                       March 31
                                                                                               1999                 1998   
                                                                                           ----------          ------------

<S>                                                                                      <C>                   <C>
Net income (loss)                                                                        $     4,393           $ (  26,443)
Adjustments to reconcile net income (loss) to net cash
       provided by (used in) operating activities:
      Depreciation expense                                                                       940                   684
      Deferred taxes                                                                      (      127)            (     127)
      Changes in operating assets and liabilities:
        Operating assets                                                                  (    7,082)                8,663
        Operating liabilities                                                             (    2,883)                4,999 
                                                                                         -----------           -----------
Net cash used in operating activities                                                     (    4,759)            (  12,224)

Investing activities
Purchase of investments                                                                   (  165,000)            ( 541,567)
Maturity of investments                                                                      160,498               697,044
Purchase of equipment                                                                     (      625)                   - 
                                                                                         -----------           -----------
Net cash provided by (used in) investing activities                                       (    5,127)              155,477

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

Decrease in cash and cash equivalents                                                     (  275,646)            ( 479,622)
Cash and cash equivalents at beginning of period                                             315,376               500,370
                                                                                         -----------           -----------
Cash at end of period                                                                    $    39,730           $    20,748
                                                                                         ===========           ===========



See accompanying notes.

</TABLE>

<PAGE>



                               Avoca, Incorporated

               Notes to Condensed Financial Statements (Unaudited)

                        Three months ended March 31, 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 three-month period ended March 31, 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.

<PAGE>


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

         The  unaudited  condensed  statements of  operations  reflect  that net
income  for  the first  quarter  of 1999 was $4,393,  as compared with a loss of
$26,443 for the first quarter of 1998.
         Total revenues,  net of severance  taxes,  rose from $63,944 to $68,916
due to a 19%  increase in royalty  income  from the Avoca No. 1 well.  Since the
second quarter of 1997, the well has been  responsible  for virtually all of the
Company's royalty income. Although the average sales price of gas decreased from
$2.43 per Mcf for the three months ended March 31, 1998 to $2.02 per Mcf for the
three months ended March 31, 1999, gas production  from the Avoca No. 1 well for
the first  quarter  of 1999 was  approximately  24% higher  than the  comparable
period of 1998.  The  operator has informed the Company that the increase in gas
production   results  from  a  successful   chemical   treatment  to  clean  the
perforations  and the  producing  formation  near the well bore in  September of
1998.
         The Meridian  Resource & Exploration  Company,  Inc. recently drilled a
deep gas well  (Meridian  Resources-Thibodaux  No. 1 well) in the  Ramos  Field,
across Bayou Chene just north of the eastern end of Avoca  Island.  According to
the operator,  the well  encountered  three  objective sands and found all three
productive  of gas.  The Operc B Sand from 17,704' to 17,828' has 79' of net gas
sand by measured depth.  The Operc 3 Sand from 18,309' to 18,372' has 29' of net
gas sand by measured depth.  The Operc 5 Sand from 19,128' to 19,192' has 48' of
net  gas  sand  by  electric  log  measurements.  The  participation  of  Avoca,
Incorporated in this unit has not formally been determined.
         Interest  income,  derived  from U.S.  Government  and U.S.  Government
agency securities, decreased slightly because of lower interest rates.


<PAGE>



         As compared with the first quarter of 1998,  total  expenses  decreased
$27,688 or approximately  31%. Reduced  remedial  maintenance  operations on the
northern part of Avoca Island  resulted in a $23,621  decrease in  miscellaneous
expenses.  Geological and  engineering  fees were reduced by $2,486 because of a
decreased  need for these  services  during the first qurter of 1999. The $1,600
decrease in consultant fees results from the smaller bonus paid to the Company's
general  manager in recognition  of results  achieved in 1998,  which  partially
offset fees paid to the Company's new part-time land manager.
         The change in income tax expense for the three  months  ended March 31,
1999 resulted  from an increase in taxable  income for the first quarter of 1999
as compared to the first quarter 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.  The Company is largely a passive royalty company,  which derives most
of its income from  royalties,  bonus and delay rentals under oil and gas leases
covering its Avoca Island acreage.


<PAGE>



         One  independent   oil  and  gas  company   represents  the  source  of
substantially  all  of  the  Company's  royalty  income.  Management  of  Avoca,
Incorporated has been informed by this company that the Y2K issue would not have
a significant impact on their 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.
         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.
         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 it has  adequately  addressed the risks  associated  with the Y2K
issue.


<PAGE>



                           Part II - OTHER INFORMATION

Item 4 - Submission of Matters to a Vote of Security Holders

         The  Company's  Annual  Meeting of  Shareholders  was held on March 16,
1999. Management's proposal to fix at five the number of directors to be elected
for the ensuing year was approved by the following vote:

              For          Against          Abstain          Broker Nonvotes
            -------        -------          -------          ---------------
            666,579          65              2,466                 -0-

          Messrs. Baird,  Fox, Lyman,  Powell and Tucker were  elected directors
for the ensuing year by the following vote:

                                          Withhold
                                For         Vote          Broker Nonvotes
                              -------     --------        ---------------
 Robert C. Baird, Jr.         668,368       742                 -0-
 Richard W. Fox               668,388       722                 -0-
 Guy C. Lyman, Jr.            668,368       742                 -0-
 M. Cleland Powell, III       668,368       742                 -0-
 J. Scott Tucker              668,388       722                 -0-


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:

                  Two  reports  were  filed  during the  quarter  for which this
report is filed.  The first,  dated February 4, 1999, dealt with the decision of
Ernst & Young LLP not to stand for  reappointment  as the Company's  independent
accountants.  The second,  dated March 23, 1999, dealt with engagement of Arthur
Andersen LLP as the Company's independent accountants for 1999.





<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


May 3, 1999                                      /s/ Robert C. Baird, Jr.
------------------------------                   -------------------------------
                                                 Robert C. Baird, Jr.
                                                 President and Principal
                                                 Financial Officer




<PAGE>



                                  EXHIBIT INDEX


                                                               Sequentially
 Exhibit                                                         Numbered
 Number          Description                                       Page


  27             Financial Data Schedule