Exhibit 99.1
For Immediate Release | Contact: Gene Bertcher | |
(972)407-8400 |
NEW CONCEPT ENERGY, INC.
REPORTS 3rdQUARTER 2010 RESULTS
REPORTS 3rdQUARTER 2010 RESULTS
Dallas, Texas (Business Wire) November 15, 2010: New Concept Energy, Inc. (AMEX: GBR), (“the Company” or “NCE”), a Dallas-based oil and gas company, today reported a net gain of $188,000 and a loss of $127,000 for the three and nine months ended September 30, 2010, as compared to a net gain of $49,000 and a loss of $12,000 for the comparable periods of 2009.
For the three and nine months ended September 30, 2010, the Company recorded oil and gas revenues of $349,000 and $950,000 as compared to $285,000 and $966,000 for the comparable periods of 2009. The changes in oil and gas revenue were due to changes in the price of oil and gas in the marketplace.
For the three and nine months ended September 30, 2010, the Company recorded revenues of $763,000 and $2,217,000 for the three and nine months ended September 30, 2010 from its retirement property compared to $685,000 and $2,121,000 for the comparable periods in 2009. The increase was a rise in the occupancy rate of the property from prior periods.
For the three and nine months ended September 30, 2010, the Company recorded oil and gas operating expenses of $320,000 and $992,000 as compared to $329,000 and $1,086,000 for the comparable periods of 2009.
For the three and nine months ended September 30, 2010, operating expenses and lease expense at the retirement property were $330,000 and $1,023,000 as compared to $293,000 and $1,016,000 for the comparable periods in 2009.
For the three and nine months ended September 30, 2010, corporate general and administrative expenses were $124,000 and $447,000 as compared to $169,000 and $666,000 for the comparable periods in 2009. The decrease is primarily due to decreased payroll costs and administrative overhead.
For the three and nine months ended September 30, 2010, interest income was $122,000 and $375,000 as compared to $138,000 and $432,000 for the comparable periods in 2009. The decrease is due to a reduction in the receivable on which interest is computed over the comparable periods.
For the three and nine months ended September 30, 2010 interest expense for the three and nine months ended September 30, 2010, was $31,000 and $93,000 as compared to $31,000 and $92,000 for the comparable periods in 2009.
The Company recorded other expense of $350,000 for the nine months ended September 30, 2010. In 2009, the Company was considering an association with an oil and gas company in South Texas that was operating under Chapter 11 of the bankruptcy code. During 2009, we invested $350,000 in the South Texas company through both a loan and other costs. In 2010, the bankruptcy court converted the bankruptcy filing to chapter 7 and ordered the liquidation of the South Texas company. It is unlikely our company will recover any of its investment.
NEW CONCEPT ENERGY, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF OPERATIONS
(amounts in thousands, except per share data)
CONSOLIDATED STATEMENT OF OPERATIONS
(amounts in thousands, except per share data)
For the Three Months | For the Nine Months | |||||||||||||||
ended September 30, | ended September 30, | |||||||||||||||
2010 | 2009 | 2010 | 2009 | |||||||||||||
Revenue | ||||||||||||||||
Oil and gas operations, net of royalties | $ | 349 | $ | 285 | $ | 950 | $ | 966 | ||||||||
Real estate operations | 763 | 685 | 2,217 | 2,121 | ||||||||||||
1,112 | 970 | 3,167 | 3,087 | |||||||||||||
Operating expenses | ||||||||||||||||
Oil and gas operations | 320 | 329 | 992 | 1,086 | ||||||||||||
Real estate operations | 330 | 293 | 1,023 | 1,016 | ||||||||||||
Lease expense | 211 | 242 | 684 | 719 | ||||||||||||
Corporate general and administrative | 124 | 169 | 447 | 666 | ||||||||||||
Accretion of asset retirement obligation | 30 | — | 90 | — | ||||||||||||
1,015 | 1,033 | 3,236 | 3,487 | |||||||||||||
Operating earnings (loss) | 97 | (63 | ) | (69 | ) | (400 | ) | |||||||||
Other income (expense) | ||||||||||||||||
Interest income | 122 | 138 | 375 | 432 | ||||||||||||
Interest expense | (31 | ) | (31 | ) | (93 | ) | (92 | ) | ||||||||
Gain on sale of assets, net | — | — | 10 | — | ||||||||||||
Other income (expense), net | — | 5 | (350 | ) | 48 | |||||||||||
Income/(Expense) | 91 | 112 | (58 | ) | 388 | |||||||||||
Net income (loss) applicable to common shares | $ | 188 | $ | 49 | $ | (127 | ) | $ | (12 | ) | ||||||
Net income (loss) per common share-basic and diluted | $ | 0.10 | $ | 0.03 | $ | (0.07 | ) | $ | (0.01 | ) | ||||||
Weighted average common and equivalent shares outstanding — basic | 1,947 | 1,947 | 1,947 | 1,947 |
NEW CONCEPT ENERGY, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(amounts in thousands)
CONSOLIDATED BALANCE SHEETS
(amounts in thousands)
September 30, | December 31, | |||||||
2010 | 2009 | |||||||
Assets | ||||||||
Current assets | ||||||||
Cash and cash equivalents | $ | 134 | $ | 155 | ||||
Accounts receivable from oil and gas sales | 244 | 203 | ||||||
Note and interest receivable — related party | 10,217 | 11.206 | ||||||
Other current assets | 88 | 567 | ||||||
Total current assets | 10,683 | 12,131 | ||||||
Oil and natural gas properties (full cost accounting method) | ||||||||
Proved developed and undeveloped oil and gas properties, net of depletion | 11,353 | 11,372 | ||||||
Property and equipment, net of depreciation | ||||||||
Land, buildings and equipment — oil and gas operations | 1,316 | 1,337 | ||||||
Other | 152 | 149 | ||||||
Total property and equipment | 1,468 | 1,486 | ||||||
Other assets | 173 | 132 | ||||||
Total assets | $ | 23,677 | $ | 25,121 | ||||
NEW CONCEPT ENERGY, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS — CONTINUED
(amounts in thousands, except share amounts)
CONSOLIDATED BALANCE SHEETS — CONTINUED
(amounts in thousands, except share amounts)
September 30, | December 31, | |||||||
2010 | 2009 | |||||||
Liabilities and stockholders’ equity | ||||||||
Current liabilities | ||||||||
Accounts payable — trade | $ | 176 | $ | 154 | ||||
Accrued expenses | 1,283 | 2,711 | ||||||
Total current liabilities | 1,459 | 2,865 | ||||||
Long-term debt | ||||||||
Notes payable | 1,281 | 1,198 | ||||||
Asset retirement obligation | 2,540 | 2,450 | ||||||
Other long-term liabilities | 243 | 326 | ||||||
Total liabilities | 5,523 | 6,839 | ||||||
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 December 31, 2009 and 2008 | 20 | 20 | ||||||
Additional paid-in capital | 58,838 | 58,838 | ||||||
Accumulated deficit | (40,705 | ) | (40.577 | ) | ||||
18,154 | 18,282 | |||||||
Total liabilities & equity | $ | 23,677 | $ | 25,121 | ||||