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, 2001
                               -------------------------------------------------

[ ]  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 May 1, 2001
                                           -------------------------------------

Transitional Small Business Disclosure Former (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 - March 31, 2001                     4

                  Condensed Statements of Income
                           Three Months Ended March 31, 2001
                           and 2000                                            5

                  Condensed Statements of Cash Flows
                           Three Months Ended March 31, 2001
                           and 2000                                            6

                  Notes to Condensed Financial Statements                      7

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

Part II.          Other Information
                  -----------------
                  Legal Proceedings                                        10-11

                  Submission of Matters to a Vote of
                  Security Holders                                         11-12

                  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>
                               Avoca, Incorporated

                       Condensed Balance Sheet (Unaudited)

                                 March 31, 2001



Assets
Current assets:
     Cash and cash equivalents                                        $  315,014
     Short-term investments                                            2,185,005
     Accounts receivable                                                 499,414
     Accrued interest receivable                                          33,429
     Prepaid expenses                                                     17,693
                                                                      ----------
Total current assets                                                   3,050,555

Property and equipment, less accumulated
   depreciation and depletion                                             67,846

Other assets:
     Long-term investments                                             1,050,000
     Avoca Drainage Bonds, $415,000, in default -- at nominal amount           1
                                                                      ----------
                                                                      $4,168,402
                                                                      ==========


Liabilities and shareholders' equity
Current liabilities:
     Accounts payable and accrued expenses                            $    9,396
     Income taxes payable                                                477,087
                                                                      ----------
Total current liabilities                                                486,483

Deferred income taxes                                                     11,747

Shareholders' equity:
     Common stock, no par value -- authorized, issued and outstanding
          830,500 shares                                                  94,483
     Retained earnings                                                 3,575,689
                                                                      ----------
Total shareholders' equity                                             3,670,172
                                                                      ----------
                                                                      $4,168,402
                                                                      ==========


See accompanying notes

                                                                    Page 4 of 14
<PAGE>
                               Avoca, Incorporated

                   Condensed Statements of Income (Unaudited)


                                                        Three months ended
                                                             March 31
                                                      2001               2000
                                                   -----------------------------
Revenue:
   Royalties                                       $1,651,213         $  316,599
   Less severance taxes                                31,462             16,228
                                                   ----------         ----------
                                                    1,619,751            300,371

   Interest income                                     43,019             34,707
   Rental income                                            -                 10
                                                   ----------         ----------
                                                    1,662,770            335,088

Expenses:
   Legal and accounting services                       16,118             24,806
   Consultant fees                                     27,963             22,825
   Geological and engineering fees                     15,477              9,931
   Insurance                                            6,840              6,510
   Miscellaneous expenses                              31,043             29,853
                                                   ----------         ----------
                                                       97,441             93,925
                                                   ----------         ----------

Income before income taxes                          1,565,329            241,163

Income taxes                                          483,043             73,604
                                                   ----------         ----------

Net income                                         $1,082,286         $  167,559
                                                   ==========         ==========

Net income per share                                   $ 1.30             $ 0.20
                                                   ==========         ==========


See accompanying notes

                                                                    Page 5 of 14
<PAGE>
                               Avoca, Incorporated

                 Condensed Statements of Cash Flows (Unaudited)


                                                        Three months ended
                                                             March 31
                                                      2001               2000
                                                   -----------------------------
Operating activities
Net income                                         $1,082,287        $  167,559
Adjustments to reconcile net income to net cash
  provided by operating activities:
     Depreciation expense                               1,097             1,097
     Deferred taxes                                      (127)             (127)
     Changes in operating assets and liabilities:
         Operating assets                            (303,771)            8,506
         Operating liabilities                        463,901            60,866
                                                   ----------         ---------
Net cash provided by operating activities           1,243,387           237,901

Investing activities
     Purchase of investments                       (1,569,811)         (125,000)
     Maturity of investments                        1,402,123                 -
                                                   ----------         ----------
Net cash used in investing activities                (167,688)         (125,000)

Financing activities
Dividends paid                                     (1,287,275)         (705,925)
                                                   ----------         ---------
Net cash used in financing activities              (1,287,275)         (705,925)

Net decrease in cash and cash equivalents            (211,576)         (593,024)

Cash and cash equivalents at beginning of period      526,590           761,573
                                                   ----------         ----------

Cash and cash equivalents at end of period         $  315,014         $ 168,549
                                                   ==========         ==========


See accompanying notes

                                                                    Page 6 of 14
<PAGE>
                              Avoca, Incorporated

              Notes to Condensed Financial Statements (Unaudited)

                        Three months ended March 31, 2001


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 10QSB 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 normal and recurring
adjustments and accruals considered  necessary for a fair presentation have been
included.  Operating results for the three-month period ended March 31, 2001 are
not  necessarily  indicative  of the results  that may be expected  for the year
ended December 31, 2001.  For further information, refer to the financial
statements and footnotes thereto included in the Company's annual shareholder's
report incorporated by reference in the Form 10-KSB for the year ended
December 31, 2000.

        The Company considers its United States Government securities  held with
a maturity of three months or less when purchased to be cash equivalents.



                                                                    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 first quarter of 2001 as compared  with the first quarter of 2000  increased
from $167,559 to $1,082,286 or approximately 546%.
         Total   revenues,  net  of  severance  taxes,  rose  from  $335,088  to
$1,662,770 because of increased royalties received from The Meridian Resources &
Exploration  Company on the C.M.  Thibodaux  No. 1 and No. 3 wells.  As compared
with the first quarter of 2000,  total  production from the two wells during the
first quarter of 2001 was substantially  unchanged,  but the average sales price
of gas  increased  260% from these  wells.  The  increase in  revenues  was also
attributable to royalties received from Meridian on the new Avoca No. 47-1 well,
which went on production December 4, 2000. All the wells are in the Ramos Field,
across Bayou Chene just north of the eastern end of Avoca Island.  The Thibodaux
No. 1 well produces from the Operc 5 sand at the  approximate  rate of 5,550 Mcf
of gas and 440 barrels of condensate  per day. The Thibodaux No. 3 well produces
from the Operc B sand at the approximate daily rate of 19,000 Mcf of gas and 350
barrels of  condensate.  The  Company's  net  revenue  interest in both wells is
approximately 2.87%.
         The  Avoca  No.  47-1  well  (in  which  the  Company has a net revenue
interest  of  approximately  12.41%)  bottom  holed  in  Section  47 west of the
Thibodaux  No. 1 and No. 3 wells and was placed on  production  December 4, 2000
from the Operc 3 sand. The approximate daily production is 12,500 Mcf of gas and
180  barrels  of  condensate.  Production  from the  three  Meridian  wells  was
responsible  for 95% of the  Company's  royalty  income for the first quarter of
2001.
         Royalty income from  the Delta Operating Corporation (formerly Alliance
Operating  Company)  Avoca  No. 1  well, also  in the Ramos Field, for the first
quarter of 2001 was $84,909 as

                                                                    Page 8 of 14
<PAGE>
compared  to $34,390  for the first  quarter  of 2000.  A 217%  increase  in the
average  sales  price  of  gas  from  this  well  offset  a 20%  decline  in gas
production.  According  to  the  well's  operator,  a  recently  completed  acid
treatment  to the well's  producing  formation is intended to improve its future
performance.  The Conrad Industries No. 1 well, drilled by Burlington  Resources
Oil & Gas Company and located in the Wyandotte  Field opposite the northern part
of Avoca Island,  was placed on production April 29, 2000 and generated $156,007
in royalty  income for the Company before it "watered out" on August 20, 2000. A
representative  of  Burlington on April 23, 2001 advised the Company that it was
abandoning  sidetracking  operations  and had applied for a state permit to plug
and abandon the well.
         On  March 29,  2001, Burlington spudded the Avoca No. 1 well which will
bottom hole in Section 36 near the eastern end of the island.  The Avoca #1 well
is a 20,500-foot test of the Cris A-2 sand, which is below the Operc B and Operc
5 sands producing from the Meridian wells.
         On December 9, 2000  Meridian spudded  the Avoca No. 47-2 well with the
expectation that it would bottom hole approximately  1,700 feet south of the No.
47-1  well in  Section  47 on the  northeast  end of the  island.  A May 4, 2001
Meridian  press release  indicates that the well was drilled to a total depth of
20,675 feet and logged,  but the  objective  Operc 5 sand was faulted  out.  The
press  release  further  states  that  Meridian  will use the well bore to drill
another well to test the Operc sands in an adjacent fault block.
         Interest  income  on  U. S.  Government  and  U. S.  Government  agency
securities  increased  $8,312  or  approximately  24%  due  to  increased  funds
available for investment.
         As  compared  with  the first quarter of 2000, total expenses increased
$3,516  or  approximately 4%.  A  reduction in the need for legal and accounting
services offset an increased need for geological


                                                                    Page 9 of 14
<PAGE>
and   engineering   services.   Consultant  fees  increased  due  to  additional
compensation paid to the Company's general manager.

         The change in income tax expense  for  the three months ended March 31,
2001 resulted  from an increase in taxable  income for the first quarter of 2001
as compared to the first quarter of 2000. The Company's  continued  liquidity is
evidenced by the fact that  approximately 85% 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.

                           Part II - OTHER INFORMATION

Item 3 - Legal Proceedings
         Avoca,  Incorporated  on  December 29, 1999 filed in the 16th  Judicial
District Court for the Parish of St. Mary (Docket No. 105195) a lawsuit to evict
a former  lessee,  Ernest  Singleton,  from a small parcel of land (less than 10
acres) located in the northeast part of Avoca Island.  The parcel is included in
The  Meridian  Resource &  Exploration,  Inc.'s  647.504  acre unit for the C.M.
Thibodaux Nos. 1 and 3 wells.
         Having  answered  the Company's petition, the defendant and other heirs
of John  Singleton  filed a Notice of Lis  Pendens,  Reconventional  Demand  and
Petition  in  Nullity  claiming  ownership  of the parcel  (and other  lands not
claimed  by  the  Company)  and  asserting  that  a 1970  court  judgment

                                                                   Page 10 of 14
<PAGE>
which  recognized  the  Company's  title  to the  disputed  area  is a  nullity.
Responsive  Peremptory Exceptions of Prescription and Res Judicata were filed by
the Company on March 3, 2000. On June 7, 2000, the court  rendered  judgment  in
favor of the Company in the eviction proceedings and  ordered  Ernest  Singleton
to vacate the  premises. Although Mr. Singleton has left Avoca Island, an appeal
has been filed.
         In  December,  2000, thirty-four named individuals, alleging themselves
to be  descendants  of the  original  owners of the  property  described  in the
petition  and  reconventional  demand,  were  allowed  to  intervene  and assert
ownership  claims in the  proceedings.  In  response,  a Dilatory  Exception  of
Vagueness was filed.
         On  March  13,  2001,  the  court  issued  Reasons  for Judgment, which
includes seven pages of scholarly  reasons,  upholding  Avoca's exception of res
judicata and dismissing the  Singletons'  Reconventional  Demand and Petition in
Nullity at the reconvenors'  cost.  Notwithstanding  the intervenors'  claim and
pending appeal of the court's earlier  eviction ruling,  as a practical  matter,
the judgment  entered in accordance with the March 13, 2001 Reasons For Judgment
should put an end to the litigation.  Nevertheless,  a notice of appeal has been
filed.

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

         The  Company's  Annual  Meeting  of  Shareholders was held on March 20,
2001. 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
               ---          -------          -------          ---------------
             743,759         None              562                5,753


                                                                   Page 11 of 14
<PAGE>

Messrs. Baird, Boudreaux,  Lyman,  Powell  and Tucker were elected directors for
the ensuing year by the following vote:
                                               Withhold
                                     For         Vote         Broker Nonvotes
                                     ---       --------       ---------------

   Robert C. Baird, Jr.            743,718       603               5,753
   Bernard E. Boudreaux, Jr.       743,718       603               5,753
   Guy C. Lyman, Jr.               743,718       603               5,753
   M. Cleland Powell, III          743,718       603               5,753
   J. Scott Tucker                 743,718       603               5,753


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.
May 2, 2001                            -----------------------------------------
                                       Robert C. Baird, Jr.
                                       President and Principal Financial Officer


                                                                   Page 13 of 14
<PAGE>



                                  EXHIBIT INDEX


                                                              Sequentially
 Exhibit                                                        Numbered
 Number             Description                                   Page


   27               Financial Data Schedule





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