EXHIBIT 99.1
Contact: Haim Tsuff
Chief Executive Officer
713-621-3882
ISRAMCO@WORDONLINE.NL
/FOR IMMEDIATE RELEASE/
John Swanson
Swanson Communications, Inc.
217-285-4967
ISRAMCO, INC. Reports Fourth Quarter and 2004 Results
HOUSTON, March 30 / -- ISRAMCO, INC. (Nasdaq: ISRL - NEWS) reported today
revenues for the fourth quarter ended December 31, 2004 of $2,038,000 compared
to revenues of $2,041,000 for the fourth quarter a year ago. The company
reported a net loss of ($270,000) or ($0.09) per share for the fourth quarter of
2004 compared to a net loss of ($1,046,000) or ($0.40) per share for the same
quarter a year earlier.
Revenues for the year ended December 31, 2004 were $8,943,000 compared to
revenues of $8,885,000 for 2003. The net loss for 2004 was ($20,000), or ($0.00)
per share compared to net income of $2,256,000 or $0.85 per share for 2003.
The loss in net income in 2004 compared to net income in 2003 is primarily
attributable to a decrease in oil and gas sales due to a decline in gas
production, a decrease in operators fee collected during 2004, a decrease in the
gain on marketable securities and an increase in deferred tax liability.
In 2004 revenues from oil and gas sales were $3,173,000 compared to $3,439,000
in 2003. Operators' fees in 2004 were $137,000 compared to $753,000 in 2003.
Gains on sales of marketable securities and equity in the net income of investee
affiliates were $1,605,000 compared to $1,970,000 in 2003. Deferred tax
liability in 2004 was $2,989,000 compared to $1,169,000 a year earlier. However,
revenues were positively affected in 2004 by leasing revenues of $2,034,000 for
the Mirage 1 Cruise Liner. In 2003 there were no such revenues.
There were 2,639,853 shares of common stock issued and outstanding in both the
2004 and 2003 periods.
The Company's income statement is summarized below:
(in thousands except for per share income)
Three months ended Year Ended
December 31 December 31
2004 2003 2004 2003
STATEMENT OF OPERATIONS
Revenues $2,038 $2,041 $8,943 $8,885
Total expenses 2,245 2,165 7,734 5,177
Net income (loss) (270) (1,046) (20) 2,256
Weighted average shares
Issued and outstanding -- -- 2,639,853 2,639,583
Earnings per Common Share (0.09) (0.40) (0.00) 0.85
CASH FLOW DATA
Net cash provided by
operating activities -- -- 1,573 1,288
Net cash provided by (used in)
Investing activities -- -- (8,195) 476
Net cash provided
By financing activities -- -- 6,277 --
BALANCE SHEET DATA
Current assets -- -- 9,260 8,209
Total Assets -- -- 41,358 32,614
Total Liabilities -- -- 10,842 2,733
Total Shareholders Equity -- -- 30,516 29,881
FORWARD-LOOKING STATEMENTS
ALL STATEMENTS CONTAINED HEREIN, AS WELL AS ORAL STATEMENTS THAT MAY BE MADE BY
THE COMPANY OR BY OFFICERS, DIRECTORS OR EMPLOYEES OF THE COMPANY ACTING ON THE
COMPANY'S BEHALF, THAT ARE NOT STATEMENTS OF HISTORICAL FACT, CONSTITUTE
"FORWARD-LOOKING STATEMENTS" AND ARE MADE PURSUANT TO THE SAFE- HARBOR
PROVISIONS OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995. SUCH
FORWARD-LOOKING STATEMENTS INVOLVE KNOWN AND UNKNOWN RISKS, UNCERTAINTIES AND
OTHER FACTORS THAT COULD CAUSE THE ACTUAL RESULTS OF THE COMPANY TO BE
MATERIALLY DIFFERENT FROM THE HISTORICAL RESULTS OR FROM ANY FUTURE RESULTS
EXPRESSED OR IMPLIED BY SUCH FORWARD-LOOKING STATEMENTS. SUCH RISKS AND
UNCERTAINTIES ARE OUTLINED IN THE COMPANY'S ANNUAL REPORT ON FORM 10-K FOR 2003,
ITS QUARTERLY REPORTS ON FORM-10-Q, AND SUCH OTHER DOCUMENTS AS ARE FILED WITH
THE SECURITIES AND EXCHANGE COMMISSION FROM TIME TO TIME. THE COMPANY IS NOT
OBLIGATED TO REVISE OR UPDATE ANY FORWARD-LOOKING STATEMENTS IN ORDER TO REFLECT
EVENTS OR CIRCUMSTANCES THAT MAY ARISE AFTER THE DATE OF THIS RELEASE.