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, 2016 of $164,000 or $0.08 per share, compared to a net loss of $75,000 or $0.04 per share for the three months ended September 30, 2015. Included in 2015 was income for a recovery of bad debt expense of $306,000.
For the three months ended September 30, 2016, the Company recorded oil and gas revenues, net of royalty expenses of $190,000 as compared to $232,000 for the comparable period of 2015. The decline in oil and gas revenue was principally due to the price the Company was receiving for its oil sales in 2016 as compared to 2015.
The Company recorded revenues of $653,000 for the three months ended September 30, 2016 from its retirement property compared to $772,000 for the comparable period in 2015. The decrease was primarily due to a drop in occupancy at the facility caused principally by the opening of a competing facility in the community where our facility is located.
For the three months ended September 30, 2016, the Company recorded oil and gas operating expenses of $295,000 as compared to $527,000 for the comparable period of 2015. The decrease was due to a decrease in overall operating expenses as the Company has actively been reducing costs to compensate for the reduction in revenue.
For the three months ended September 30, 2016, operating expenses at the retirement property were $396,000 as compared to $423,000 for the comparable period in 2015. The decrease in operating expenses were due to an overall decrease in non-payroll related expenses.
For the three months ended September 30, 2016, corporate general & administrative expenses were $52,000 as compared to $176,000 for the comparable periods in 2015. The decrease is primarily due to a reduction in wages and overall operating expenses.
| NEW CONCEPT ENERGY, INC. AND SUBSIDIARIES | ||||||||
| CONSOLIDATED BALANCE SHEETS | ||||||||
| (unaudited) | ||||||||
| (amounts in thousands) | ||||||||
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September 30, |
December 31, |
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| Assets | ||||||||
| Current assets | ||||||||
| Cash and cash equivalents | $ | 530 | $ | 473 | ||||
| Accounts receivable from oil and gas sales | 105 | 141 | ||||||
| Other current assets | 47 | 37 | ||||||
| Total current assets | 682 | 651 | ||||||
| Oil and natural gas properties (full cost accounting method) | ||||||||
| Proved developed and undeveloped oil and gas properties, net of depletion | 5,658 | 5,914 | ||||||
| Property and equipment, net of depreciation | ||||||||
| Land, buildings and equipment - oil and gas operations | 722 | 803 | ||||||
| Other | 142 | 134 | ||||||
| Total property and equipment | 864 | 937 | ||||||
| Other assets | 1,344 | 1,373 | ||||||
| Total assets | $ | 8,548 | $ | 8,875 | ||||
| NEW CONCEPT ENERGY, INC. AND SUBSIDIARIES | ||||||||||
| CONSOLIDATED BALANCE SHEETS - CONTINUED | ||||||||||
| (unaudited) | ||||||||||
| (amounts in thousands, except share amounts) | ||||||||||
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September 30, |
December 31, |
|||||||||
| Liabilities and stockholders' equity | ||||||||||
| Current liabilities | ||||||||||
| Accounts payable - trade (including $580,000 and $165,000 in 2016 and 2015 due to related parties) | $ | 605 | $ | 241 | ||||||
| Accrued expenses | 148 | 151 | ||||||||
| Current portion of long term debt | 828 | 831 | ||||||||
| Total current liabilities | 1,581 | 1,223 | ||||||||
| Long-term debt | ||||||||||
| Notes payable less current portion | 1,119 | 1,211 | ||||||||
| Asset retirement obligation | 2,770 | 2,770 | ||||||||
| Total liabilities | 5,470 | 5,204 | ||||||||
| Stockholders' equity | ||||||||||
| 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, 2016 and December 31, 2015 | 20 | 20 | ||||||||
| Additional paid-in capital | 58,838 | 58,838 | ||||||||
| Accumulated deficit | (55,781 | ) | (55,188 | ) | ||||||
| 3,078 | 3,671 | |||||||||
| Total liabilities & equity | $ | 8,548 | $ | 8,875 | ||||||
| NEW CONCEPT ENERGY, INC AND SUBSIDIARIES | ||||||||||||||||||||
| CONSOLIDATED STATEMENT OF OPERATIONS | ||||||||||||||||||||
| (unaudited) | ||||||||||||||||||||
| (amounts in thousands, except per share data) | ||||||||||||||||||||
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For the Three Months |
For the Nine Months |
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| 2016 | 2015 | 2016 | 2015 | |||||||||||||||||
| Revenue | ||||||||||||||||||||
| Oil and gas operations, net of royalties | $ | 190 | $ | 232 | $ | 579 | $ | 663 | ||||||||||||
| Real estate operations | 653 | 772 | 1,995 | 2,233 | ||||||||||||||||
| 843 | 1,004 | 2,574 | 2,896 | |||||||||||||||||
| Operating expenses | ||||||||||||||||||||
| Oil and gas operations | 295 | 527 | 924 | 1,437 | ||||||||||||||||
| Real estate operations | 396 | 423 | 1,146 | 1,248 | ||||||||||||||||
| Lease expense | 251 | 245 | 748 | 735 | ||||||||||||||||
| Corporate general and administrative | 52 | 176 | 319 | 485 | ||||||||||||||||
| 994 | 1,371 | 3,137 | 3,905 | |||||||||||||||||
| Operating earnings (loss) | (151 | ) | (367 | ) | (563 | ) | (1,009 | ) | ||||||||||||
| Other income (expense) | ||||||||||||||||||||
| Interest income | 6 | 6 | 17 | 6 | ||||||||||||||||
| Interest expense | (8 | ) | (12 | ) | (26 | ) | (54 | ) | ||||||||||||
| Recovery of bad debt expense | - | 306 | 0 | 1,430 | ||||||||||||||||
| Other income (expense), net | (11 | ) | (8 | ) | (21 | ) | (24 | ) | ||||||||||||
| Other income (expense) | (13 | ) | 292 | (30 | ) | 1,358 | ||||||||||||||
| Net income (loss) applicable to common shares | $ | (164 | ) | $ | (75 | ) | $ | (593 | ) | $ | 349 | |||||||||
| Net income (loss) per common share-basic and diluted | $ | (0.08 | ) | $ | (0.04 | ) | $ | (0.30 | ) | $ | 0.18 | |||||||||
| Weighted average common and equivalent shares outstanding - basic | 1,947 | 1,947 | 1,947 | 1,947 | ||||||||||||||||
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