DALLAS--(BUSINESS WIRE)--New Concept Energy, Inc. (NYSE MKT: GBR), (the “Company” or “NCE”) a Dallas-based oil and gas company, today reported net loss for the three months ended September 30, 2015 of $75,000 or $0.04 per share, compared to a net loss of $204,000 or $0.10 per share for the three months ended September 30, 2014. Included in 2015 was income for a recovery of bad debt expense of $306,000.
For the nine months ended September 30, 2015 the Company reported net income of $349,000, as compared to a net loss of $343,000 for the similar period in 2014.
For the three months ended September 30, 2015, the Company recorded oil and gas revenues, net of royalty expenses of $232,000 as compared to $410,000 for the comparable period of 2014. The decline in oil and gas revenue was principally due to the price the Company was receiving for its oil sales in 2015 as compared to 2014.
The Company recorded revenues of $772,000 for the three months ended September 30, 2015 from its retirement property compared to $771,000 for the comparable period in 2014.
For the three months ended September 30, 2015, the Company recorded oil and gas operating expenses of $527,000 as compared to $447,000 for the comparable period of 2014. The increase is principally additional depreciation and depletion recorded in 2015. Included in operating expenses are non-cash depletion, depreciation and amortization of $230,515.
For the three months ended September 30, 2015, operating expenses at the retirement property were $423,000 as compared to $400,000 for the comparable period in 2014. The increases in operating expenses were due to an overall increase in non-payroll related expenses.
For the three months ended September 30, 2015, corporate general & administrative expenses were $176,000 as compared to $208,000 for the comparable periods in 2014. The decrease is primarily due to a reduction in legal costs.
In 2011 the Company had a $10.3 million note receivable and determined that the financial condition of the debtor had deteriorated and there could be no assurance that the amount owed would or could be collected. At that time the Company recorded a loss and established a reserve of $10.3 million. In 2013 and 2012 the Company recorded a gain from the partial recovery of the previously reserved note receivable of $1.6 million and $2.1 million respectively. For the third months and nine months ended September 30, 2015 the company recorded an additional recovery of $306,000 and $1,430,000, respectively.
|NEW CONCEPT ENERGY, INC. AND SUBSIDIARIES|
|CONSOLIDATED BALANCE SHEETS|
|(amounts in thousands)|
|Cash and cash equivalents||$||581||$||300|
|Accounts receivable from oil and gas sales||120||216|
|Other current assets||421||182|
|Total current assets||1,122||698|
|Oil and natural gas properties (full cost accounting method)|
|Proved developed and undeveloped oil and gas properties, net of depletion||8,585||8,809|
|Property and equipment, net of depreciation|
|Land, buildings and equipment - oil and gas operations||820||1,476|
|Total property and equipment||966||1,638|
|Other assets (including $125 due from related parties in 2014)||1,247||1,129|
|NEW CONCEPT ENERGY, INC. AND SUBSIDIARIES|
|CONSOLIDATED BALANCE SHEETS - CONTINUED|
|(amounts in thousands, except share amounts)|
|Liabilities and stockholders' equity|
|Accounts payable - trade||$||160||$||673|
|Current portion of long term debt||
|Total current liabilities||1,285||1,783|
|Notes payable less current portion||1,223||1,428|
|Asset retirement obligation||2,770||2,770|
|Preferred stock, Series B||1||1|
|Common stock, $.01 par value; authorized, 100,000,000|
|shares; issued and outstanding, 1,946,934 shares|
|at September 30, 2015 and December 31, 2014||20||20|
|Additional paid-in capital||58,838||58,838|
|Total liabilities & equity||$||11,920||$||12,274|
NEW CONCEPT ENERGY, INC. AND SUBSIDIARIES
|CONSOLIDATED STATEMENT OF OPERATIONS|
|(amounts in thousands, except per share data)|
For the Three Months
For the Nine Months
|Oil and gas operations, net of royalties||$||232||$||410||$||663||$||1,239|
|Real estate operations||772||721||2,233||2,174|
|Oil and gas operations||527||447||1,437||1,355|
|Real estate operations||423||400||1,248||1,183|
|Corporate general and administrative||176||208||485||605|
|Operating earnings (loss)||(367||)||(164||)||(1,009||)||(451||)|
|Other income (expense)|
|Recovery of bad debt expense||306||-||1430||0|
|Other income (expense), net||(8||)||(19||)||(24||)||180|
|Other income (expense)||292||(40||)||1,358||108|
|Net income (loss) applicable to common shares||$||(75||)||$||(204||)||$||349||$||(343||)|
|Net income (loss) per common share-basic and diluted||$||(0.04||)||$||(0.10||)||$||0.18||$||(0.18||)|
|Weighted average common and equivalent shares outstanding - basic||1,947||1,947||1,947||1,947|