May 12, 2016 - 4:57 PM EDT
Print Email Article Font Down Font Up
New Concept Energy, Inc. Reports First Quarter 2016 Results

New Concept Energy, Inc. (NYSE MKT: GBR), (the “Company” or “NCE”), a Dallas-based oil and gas company, today reported a net loss for the three months ended March 31, 2016 of $296,000 or ($0.15) per share, compared to net income of $314,000 or $0.16 per share for the three months ended March 31, 2015.

In March 2015 the Company recorded a $738,000 recovery of a note receivable which had been fully reserved in a prior year.

For the three months ended March 31, 2016, the Company recorded oil and gas revenues of $219,000 as compared to $172,000 for the comparable period of 2015. The increase in oil and gas revenue for the three months ended March 31, 2016 was $47,000. The increase is due to the production of more gas in 2016 than 2015. During 2016 the Company has reduced the production of oil from wells that were unprofitable due to the market price of oil.

The Company recorded revenues of $677,000 for the three months ended March 31, 2016 from its retirement property compared to $717,000 for the comparable period in 2014. The decrease is due to reduced occupancy at the facility.

For the three months ended March 31, 2016, the Company recorded oil and gas operating expenses of $396,000 as compared to $470,000 for the comparable period of 2015. The decrease was due to a specific effort by management to reduce operation costs. The decrease represents a $41,000 reduction in payroll costs and a reduction in general operating expenses of $38,000.

For the three months ended March 31, 2016, operating expenses at the retirement property were $348,000, as compared to $394,000 for the comparable period in 2015. The decreases were due to a reduction in general operating expenses.

       
 
NEW CONCEPT ENERGY, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(amounts in thousands)
 

March 31,
2016

December 31,
2015

(unaudited)  
Assets
 
Current assets
Cash and cash equivalents $ 547 $ 473
Accounts receivable from oil and gas sales 95 141
Other current assets   48   37
Total current assets   690   651
 
 
Oil and natural gas properties (full cost accounting method)
Proved developed and undeveloped oil and gas properties, net of depletion 5,779 5,914
 
Property and equipment, net of depreciation
Land, buildings and equipment - oil and gas operations 777 803
Other   130   134
Total property and equipment 907 937
 
Other assets   1,345   1,328
 
Total assets $ 8,721 $ 8,830
       
 
NEW CONCEPT ENERGY, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS - CONTINUED
(amounts in thousands, except share amounts)
 

March 31,
2016

December 31,
2015

(unaudited)  
Liabilities and stockholders' equity
 
Current liabilities
Accounts payable - (including $348 and $168 due to related parties in 2016 and 2015) $ 440 $ 241
Accrued expenses 160 151

Current portion of long-term debt

  831     831  
Total current liabilities 1,431 1,223
 
Long-term debt
Notes payable less current portion 1,145 1,166
Asset retirement obligation   2,770     2,770  
Total liabilities 5,346 5,159
 
Stockholders' equity
Preferred stock, Series B 1 1
Common stock, $.01 par value; authorized, 100,000,000
shares; issued and outstanding, 1,946,935 shares
at March 31, 2016 and December 31, 2015 20 20
Additional paid-in capital 58,838 58,838
Accumulated deficit   (55,484 )   (55,188 )
 
Total shareholders' equity   3,375     3,671  
 
Total liabilities & equity $ 8,721   $ 8,830  
       
 
NEW CONCEPT ENERGY, INC AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF OPERATIONS
(unaudited)
(amounts in thousands, except per share data)
 

For the Three Months ended
March 31,

2016 2015
Revenue
Oil and gas operations, net of royalties $ 219 $ 172
Real estate operations   677     717  
Total Revenues   896     889  
 
 
Operating expenses
Oil and gas operations 396 470
Real estate operations 361 410
Real Estate - lease expense 259 245
Corporate general and administrative   166     154  
Total Operating Expenses   1,182     1,279  
Operating earnings (loss) (286 ) (390 )
 
Other income (expense)
Interest income 6 0
Interest expense (11 ) (26 )
Recovery of bad debt expense - 738
Other income (expense), net   (5 )   (8 )
Expense   (10 )   704  
 
 
Net income (loss) applicable to common shares $ (296 ) $ 314  
 
Net income (loss) per common share-basic and diluted $ (0.15 ) $ 0.16  
 
Weighted average common and equivalent shares outstanding - basic 1,947 1,947

New Concept Energy, Inc.
Gene Bertcher, 800-400-6407
[email protected]


Source: Business Wire (May 12, 2016 - 4:57 PM EDT)

News by QuoteMedia
www.quotemedia.com

Legal Notice