DALLAS--(BUSINESS WIRE)--
New Concept Energy, Inc. (NYSE MKT: GBR), (the “Company” or “NCE”) a Dallas-based oil and gas company, today reported a net loss from continuing operations for the three months ended March 31, 2017 of $172,000 or ($0.09) per share, compared to net loss from continuing operations of $351,000 or ($0.18) per share for the three months ended March 31, 2016.
On March 30, 2017 the owners sold the property which triggered the termination of the Company’s lease to operate the 114 unit retirement center located in King City, Oregon. The operations of the retirement center, which is reflected as discontinued operations resulted in net earnings of $13,000 ($0.01 per share) and $55,000 ($0.03 per share) for the periods ended March 31, 2017 and 2016, respectively.
For the three months ended March 31, 2017, the Company recorded oil and gas revenues of $195,000 as compared to $219,000 for the comparable period of 2016. The decrease in oil & gas revenue for the three months ended March 31, 2017 was principally due to the production and price the Company received for oil.
For the three months ended March 31, 2017, the Company recorded oil and gas operating expenses of $256,000 as compared to $396,000 for the comparable period of 2016. The decrease was due to a specific effort by management to reduce operation costs. The decrease represents a $28,000 reduction in payroll costs and a reduction in general operating expenses of $38,000.
For the three months ended March 31, 2017, corporate general and administrative expenses were $100,000, as compared to $169,000 for the comparable period in 2016. The decreases was principally due to a decrease in corporate payroll.
NEW CONCEPT ENERGY, INC. AND SUBSIDIARIES | |||||||||
CONSOLIDATED BALANCE SHEETS | |||||||||
(amounts in thousands) | |||||||||
March 31, 2017 | December 31, 2016 | ||||||||
Assets | |||||||||
Current assets | |||||||||
Cash and cash equivalents | $ | 520 | $ | 113 | |||||
Accounts receivable from oil and gas sales | 122 | 119 | |||||||
Other current assets | 73 | 206 | |||||||
Total current assets | 715 | 438 | |||||||
Oil and natural gas properties (full cost accounting method) | |||||||||
Proved developed and undeveloped oil and gas properties, net of depletion | 5,551 | 5,608 | |||||||
Property and equipment, net of depreciation | |||||||||
Land, buildings and equipment - oil and gas operations | 703 | 706 | |||||||
Other | - | 25 | |||||||
Total property and equipment | 703 | 731 | |||||||
Other assets | 322 | 401 | |||||||
Total assets | $ | 7,291 | $ | 7,178 | |||||
NEW CONCEPT ENERGY, INC. AND SUBSIDIARIES | |||||||||||
CONSOLIDATED BALANCE SHEETS - CONTINUED | |||||||||||
(amounts in thousands, except share amounts) | |||||||||||
March 31, 2017 | December 31, 2016 | ||||||||||
Liabilities and stockholders' equity | |||||||||||
Current liabilities | |||||||||||
Accounts payable - (including $463 and $160 due to related parties in 2017 and 2016) | $ | 526 | $ | 238 | |||||||
Accrued expenses | 53 | 59 | |||||||||
Current portion of long term debt | 89 | 96 | |||||||||
Total current liabilities | 668 | 393 | |||||||||
Long-term debt | |||||||||||
Notes payable less current portion | 293 | 296 | |||||||||
Asset retirement obligation | 2,770 | 2,770 | |||||||||
Total liabilities | 3,731 | 3,459 | |||||||||
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, 2017 and December 31, 2016 | 20 | 20 | |||||||||
Additional paid-in capital | 58,838 | 58,838 | |||||||||
Accumulated deficit | (55,299 | ) | (55,140 | ) | |||||||
Total shareholders' equity | 3,560 | 3,719 | |||||||||
Total liabilities & equity | $ | 7,291 | $ | 7,178 | |||||||
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, | |||||||||||
2017 | 2016 | ||||||||||
Revenue | |||||||||||
Oil and gas operations, net of royalties | $ | 195 | $ | 219 | |||||||
Total Revenues | 195 | 219 | |||||||||
Operating expenses | |||||||||||
Oil and gas operations | 256 | 396 | |||||||||
Corporate general and administrative | 100 | 167 | |||||||||
Total Operating Expenses | 356 | 563 | |||||||||
Operating earnings (loss) | (161 | ) | (344 | ) | |||||||
Other income (expense) | |||||||||||
Interest income | 4 | 6 | |||||||||
Interest expense | (7 | ) | (11 | ) | |||||||
Other income (expense), net | (8 | ) | (2 | ) | |||||||
Expense | (11 | ) | (7 | ) | |||||||
Earnings (loss) from continuing operations |
(172 | ) | (351 | ) | |||||||
Earnings from discontinued operations | 13 | 55 | |||||||||
Net income (loss) applicable to common shares | $ | (159 | ) | $ | (296 | ) | |||||
Net (loss) per common share from continuing operations | $ | (0.09 | ) | $ | (0.18 | ) | |||||
Net income per common share from discontinued operations | $ | 0.01 | $ | 0.03 | |||||||
Net income (loss) per common share-basic and diluted | $ | (0.08 | ) | $ | (0.15 | ) | |||||
Weighted average common and equivalent shares outstanding - basic | 1,947 | 1,947 |
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