Exhibit 99.1
GeoMet Announces Financial and Operating Results
for the Quarter and Year Ended December 31, 2014
Houston, Texas—February 18, 2015—GeoMet, Inc. (OTC: GMET; OTC: GMETP) (“GeoMet” or the “Company”) today announced its financial and operating results for the quarter and year ended December 31, 2014.
Financial and Operating Results
On May 12, 2014, GeoMet closed the sale of substantially all of its remaining assets (the “Asset Sale”). As a result of the Asset Sale, all operating activities are presented as discontinued operations in the Condensed Consolidated Statements of Operations (Unaudited) for the quarter and year ended December 31, 2014 and 2013.
As of December 31, 2014, our primary asset as a public “shell company” is cash in the amount of $22.9 million. On a go forward basis, we believe we are incurring the minimum overhead expenses necessary to sustain a public registrant.
Quarter Ended December 31, 2014
For the quarter ended December 31, 2014, GeoMet reported a net loss available to common stockholders of $2.0 million, or $0.05 per fully diluted share. Included in net loss available to common stockholders for the quarter ended December 31, 2014 were non-cash charges of $0.8 million for accretion of preferred stock and $0.5 million for paid-in-kind (“PIK”) dividends paid on preferred stock. For the quarter ended December 31, 2013, GeoMet reported a net loss available to common stockholders of $4.3 million, or $0.11 per fully diluted share. Included in net loss available to common stockholders for the quarter ended December 31, 2013 were non-cash charges of $0.6 million for accretion of preferred stock and $1.6 million for PIK dividends paid on preferred stock.
For the quarter ended December 31, 2014, GeoMet reported income from discontinued operations of $84 thousand, including a tax benefit of $24 thousand, or $0.00 per fully diluted share. For the quarter ended December 31, 2013, GeoMet reported a loss from discontinued operations of $359 thousand, net of tax of $0, or $0.01 per fully diluted share.
Year Ended December 31, 2014
For the year ended December 31, 2014, GeoMet reported net income available to common stockholders of $53.3 million, or $1.32 per fully diluted share. Included in net income available to common stockholders for the year ended December 31, 2014 were non-cash charges of $3.0 million for accretion of preferred stock and $2.3 million for PIK dividends paid on preferred stock. For the year ended December 31, 2013, GeoMet reported a net income available to common stockholders of $27.8 million, or $0.69 per fully diluted share. Included in net income available to common stockholders for the year ended December 31, 2013 were non-cash charges of $2.3 million for accretion of preferred stock and $5.3 million for PIK dividends paid on preferred stock.
For the year ended December 31, 2014, GeoMet reported income from discontinued operations of $63.0 million, net of tax of $0.7 million, or $1.56 per fully diluted share. Included in income from discontinued operations was a $61.3 million gain resulting from the Asset Sale. For the year ended December 31, 2013,
GeoMet reported income from discontinued operations of $40.8 million, net of tax of $0, or $1.01 per fully diluted share. Included in income from discontinued operations was a $36.9 million gain resulting from the June 2013 sale of GeoMet’s Alabama assets.
Forward-Looking Statements Notice
This press release may contain “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Except for statements of historical facts, all statements included in the document, including those preceded by, followed by or that otherwise include the words “believe,” “expects,” “anticipates,” “intends,” “estimates,” “projects,” “target,” “goal,” “plans,” “objective,” “should” or similar expressions or variations on such words, are forward-looking statements. These forward-looking statements are subject to certain risks, trends and uncertainties that could cause actual results to differ materially from those projected. In particular, careful consideration should be given to cautionary statements made in the various reports the Company has filed with the Securities and Exchange Commission (“SEC”). Additional information concerning factors that could cause actual results to differ materially from those in the forward-looking statements is contained from time to time in the Company’s SEC filings, which may be obtained by contacting the Company or the SEC. These filings are also available through the Company’s web site at http://www.geometinc.com or through the SEC’s Electronic Data Gathering and Analysis Retrieval System (EDGAR) at http://www.sec.gov. GeoMet undertakes no duty to update or revise these forward-looking statements.
For more information please contact William A. Wiederkehr, Jr., Treasurer and Secretary, at (713) 600-4310 or wwiederkehr@geometcbm.com.
GEOMET, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
| | Quarter Ended December 31, | | Year Ended December 31, | |
| | 2014 | | 2013 | | 2014 | | 2013 | |
Expenses: | | | | | | | | | |
Depreciation, depletion and amortization | | $ | — | | $ | 24,674 | | $ | 113,817 | | $ | 125,897 | |
General and administrative | | 686,132 | | 1,555,519 | | 3,846,142 | | 5,011,645 | |
Lease termination costs | | — | | — | | 427,722 | | — | |
Restructuring costs | | — | | — | | — | | 93,584 | |
Total operating expenses | | 686,132 | | 1,580,193 | | 4,387,681 | | 5,231,126 | |
| | | | | | | | | |
Other income (expense) | | 2,780 | | (182,172 | ) | (14,966 | ) | (227,082 | ) |
| | | | | | | | | |
Loss before income taxes from continuing operations | | (683,352 | ) | (1,762,365 | ) | (4,402,647 | ) | (5,458,208 | ) |
| | | | | | | | | |
Income tax expense | | 6,250 | | 6,250 | | 25,000 | | 25,000 | |
| | | | | | | | | |
Loss from continuing operations | | (689,602 | ) | (1,768,615 | ) | (4,427,647 | ) | (5,483,208 | ) |
| | | | | | | | | |
Discontinued operations | | 84,022 | | (358,714 | ) | 63,033,319 | | 40,802,282 | |
| | | | | | | | | |
Net (loss) income | | $ | (605,580 | ) | $ | (2,127,329 | ) | $ | 58,605,672 | | $ | 35,319,074 | |
Accretion of Preferred Stock | | (841,943 | ) | (632,984 | ) | (2,964,762 | ) | (2,257,968 | ) |
Paid-in-kind dividends on Preferred Stock | | (503,739 | ) | (1,574,076 | ) | (2,306,466 | ) | (5,295,138 | ) |
Cash dividends paid on Preferred Stock | | (397 | ) | (737 | ) | (1,960 | ) | (2,572 | ) |
Net (loss) income available to common stockholders | | $ | (1,951,659 | ) | $ | (4,335,126 | ) | $ | 53,332,484 | | $ | 27,763,396 | |
| | | | | | | | | |
Net (loss) income per common share—basic and diluted: | | | | | | | | | |
Continuing operations | | $ | (0.05 | ) | $ | (0.10 | ) | $ | (0.24 | ) | $ | (0.32 | ) |
Discontinued operations | | — | | (0.01 | ) | 1.56 | | 1.01 | |
Total | | $ | (0.05 | ) | $ | (0.11 | ) | $ | 1.32 | | $ | 0.69 | |
| | | | | | | | | |
Weighted average number of common shares: | | | | | | | | | |
Basic and diluted | | 40,513,373 | | 40,504,684 | | 40,513,373 | | 40,481,330 | |
GEOMET, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
| | December 31, | |
| | 2014 | | 2013 | |
ASSETS | | | | | |
Current Assets: | | | | | |
Cash and cash equivalents | | $ | 22,894,405 | | $ | 8,108,272 | |
Other current assets | | 148,302 | | 3,593,547 | |
Total current assets | | 23,042,707 | | 11,701,819 | |
Property and equipment—net | | — | | 42,329,051 | |
Other noncurrent assets | | — | | 769,384 | |
TOTAL ASSETS | | $ | 23,042,707 | | $ | 54,800,254 | |
LIABILITIES, MEZZANINE AND STOCKHOLDERS’ DEFICIT | | | | | |
Current Liabilities: | | | | | |
Current portion of long-term debt | | $ | — | | $ | 71,550,000 | |
Asset retirement obligations | | — | | 265,470 | |
Other current liabilities | | 277,893 | | 9,105,846 | |
Total current liabilities | | 277,893 | | 80,921,316 | |
Asset retirement obligations | | — | | 8,915,407 | |
Other long-term accrued liabilities | | — | | 823,005 | |
TOTAL LIABILITIES | | 277,893 | | 90,659,728 | |
Series A Convertible Redeemable Preferred Stock | | 48,676,221 | | 43,404,993 | |
Total stockholders’ deficit | | (25,911,407 | ) | (79,264,467 | ) |
TOTAL LIABILITIES, MEZZANINE AND STOCKHOLDERS’ DEFICIT | | $ | 23,042,707 | | $ | 54,800,254 | |
GEOMET, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
| | 2014 | | 2013 | |
| | | | | |
Net cash (used in) provided by operating activities | | $ | (10,779,911 | ) | $ | 8,797,808 | |
| | | | | |
Net cash provided by investing activities | | 97,118,004 | | 59,832,639 | |
| | | | | |
Net cash used in financing activities | | (71,551,960 | ) | (67,756,400 | ) |
| | | | | |
Increase in cash and cash equivalents | | 14,786,133 | | 874,047 | |
| | | | | |
Cash and cash equivalents at beginning of period | | 8,108,272 | | 7,234,225 | |
| | | | | |
Cash and cash equivalents at end of period | | $ | 22,894,405 | | $ | 8,108,272 | |
