Exhibit 99.1
WILSHIRE OIL COMPANY FOR IMMEDIATE RELEASE
REPORTS YEAR END EARNINGS AMEX: WOC
Jersey City, New Jersey, March 31, 2003 - Wilshire Oil Company of Texas
(Wilshire) reported its results for the fourth quarter and year ended
December 31, 2002.
Net income for the quarter ended December 31, 2002 was $350,000 or $ .04 per
share compared to a net loss of $1,893,000 or $ (0.24) per share for the same
period in 2001. The fourth quarter in 2001 included a one-time net of tax charge
of $1,111,000 for the accounting write-down of a marketable security whose
decline was deemed to be other than temporary.
Total revenues for the fourth quarter increased to $5,313,000 from $4,768,000
for the same period last year. The increase was mainly due to an increase in oil
and gas revenue resulting from year high prices experienced during the quarter.
Net income for the year ended December 31, 2002 was $1,076,000 or $0.14 per
share compared to $452,000 or $0.06 per share in 2001. Calendar year 2001
included a one-time net of tax charge of $1,111,000 for the accounting
write-down of a marketable security whose decline was deemed to be other than
temporary.
Income from operations for the year ended December 31, 2002 decreased to
$3,324,000 from $4,722,000 in 2001 due mainly to the Company's oil and gas
operations. Oil and gas revenue declined to $5,729,000 in 2002 from $8,534,000
in 2001. During most of the year, Wilshire experienced a decline in the average
sales price received for its production. Real estate revenue increased to
$14,739,000 in 2002 from $14,095,000 in 2001 as a result of an acquisition of an
additional residential real estate property in March 2001 and increased rental
rates, offset by an overall increase in vacancies and concessions across most of
its portfolio.
Dividend and interest income, gains from sales of securities and real estate and
other income increased in 2002 to $2,600,000 from $2,426,000 in 2001. Interest
expense also improved for 2002 declining to $4,518,000 from $4,805,000 in 2001.
"Overall this was a very difficult year due to the weak economy and lower demand
for oil and gas for most of the year, " said S. Wilzig Izak, Chairman of
Wilshire. "We have always had to deal with the volatility of the oil and gas
industry. As a relatively small player in a very large industry, we are very
limited as to what we can do to offset economic and market volatility. It was
for this reason that we began to diversify our operations and build a
predominantly residential real estate operation. This year the economy drove
many of our younger tenants to move back home and some of our older ones to
relocate due to job losses. Couple that with historically low interest rates, we
saw many of our more affluent tenants leave to purchase their own homes rather
than continue to rent. We, like others in the industry, needed to step up
concessions to control the increases in vacancies. Looking forward we would hope
for a more stable environment, but unfortunately we cannot control this either."
Wilshire had previously announced that it had engaged Deloitte & Touche
Corporate Finance LLC as its investment bankers to assist it in exploring
various alternatives and potential opportunities regarding the future course of
its business. Ms. Izak indicated that she would expect that the Board of
Directors would be meeting shortly with its investment bankers to review their
findings and recommendations.
(000) Omitted
Twelve Months Ended Quarter Ended
December 31 December 31
2002 2001 2002 2001
------ ------ ------ ------
Revenues $20,468 $22,629 $5,313 $4,768
Income (loss) from Operations $ 3,324 $ 4,722 $1,238 $ (417)
Net Income (loss) $ 1,076 $ 452 $ 350 $(1,893)
Earnings per share $ 0.14 $ 0.06 $ 0.04 $ (0.24)
Wilshire is an American Stock Exchange listed corporation
engaged in oil and gas exploration and real estate investment operations.
The projections in this press release are "forward-looking statements" within
the meaning of the Private Securities Litigation Reform Act of 1995. Such
forward-looking statements are subject to several risks and uncertainties that
could cause actual results to differ materially from such projections. Such
risks and uncertainties include the possibility that the new drilling effort may
not be successful, that the actual amount of reserves to be found will be
substantially less than anticipated and that the actual annual production
realized will be substantially less than anticipated, that the timing of the
anticipated cash flow and the future demand and prices for oil and gas will
differ from Company expectations. A discussion of these and other risks and
uncertainties are disclosed in the Company's 2002 Form 10-K filed with the
Securities and Exchange Commission.
WILSHIRE OIL COMPANY OF TEXAS 921 Bergen Avenue, Jersey City, New Jersey 07306
Tel: (201) 420-2796