New Concept Energy, Inc. Reports Fourth Quarter and Full Year 2012 Results

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New Concept Energy, Inc. Reports Fourth Quarter and Full Year 2012 Results

DALLAS--(BUSINESS WIRE)-- New Concept Energy, Inc. (NYSE MKT:GBR), (the "Company" or "NCE") a Dallas-based oil and gas company, today reported Results of Operations for the fourth quarter ended December 31, 2012. During the three months ended December 31, 2012 the Company reported net income of $84,000 or $0.045 per share, compared to a net loss of $11.9 million or $6.11 loss per share for the same period ended December 31, 2011.

For the twelve months ended December 31, 2012 the Company had net income of $168,000 or $0.09 per share, compared to a net loss of $11.8 million or $6.06 loss per share for the twelve months ended December 31, 2011.


In the fourth quarter of 2011 the Company had a $10.3 million note receivable and determined that the financial condition of the debtor had deteriorated and there could be no assurance that the amount owed would or could be collected. At that time the company recorded a loss and established a reserve of $10.3 million. In 2012 the Company recorded a $2.1 million gain from the partial recovery of the previously reserved note receivable. The Company will continue to attempt to collect the balance of the receivable.

The Company recorded net revenues from its oil and gas operation for the years 2012 and 2011 of $1.2 million and $1.0 million respectively. In early 2012 the Company entered into a five year contract to sell its gas at an agreed upon price. The company sells its oil production based upon the prevailing market price. The increase in revenue was due to an increase in the production and sale of oil.

Operating expenses for the oil and gas operations were $1.8 million and $1.4 million for the years of 2012 and 2011 respectively. Included in operations were depreciation, depletion and amortization expense of $727,000 in 2012 and $335,000 in 2011.

In 2012 the Company recorded a non-cash charge to operations of $912,000 pursuant to the requirements of the "full cost ceiling test." In 2011 the Company recorded a similar write down of $1.4 million

Revenue at our Retirement Center was $2.8 million in 2012 and $2.9 million in 2011. Occupancy decreased from 91% in 2011 to 85% during the same period in 2012. The decrease was offset by an increase in the rates charged at the facility.

For 2012, interest income was $0 as compared to $360,000 for the comparable period in 2011. In December 2011 the Company became concerned about the collectability of a certain note receivable and determined that the note and any accrued interest be fully reserved. The company continues to accrue interest but provides a full reserve. Should the Company collect the interest in the future the collected funds will be recorded as income at that time.

NEW CONCEPT ENERGY, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATION
(amounts in thousands, except per share data)
     
Year Ended December 31,
201220112010
Revenue
Oil and gas operations, net of royalties$1,182$1,020$1,248
Real estate operations 2,762  2,881  2,965 
 3,944  3,901  4,213 
 
 
Operating expenses
Oil and gas operations1,8201,4301,292
Real estate operations1,4651,2901,225
Lease expense924906886
Corporate general and administrative577579731
Accretion of asset retirement obligation68129123

Impairment of natural gas and oil properties

 912  1,428  - 
 5,766  5,762  4,257 
Operating earnings (loss)(1,822)(1,861)(44)
 
Other income (expense)
Interest income-360497
Interest expense(208)(131)(124)
Bad debt expense (recovery) - note receivable2,076(10,006)-
Other income (expense), net 122  (155) (340)
1,990(9,932)33
 
Earnings from continuing operations168(11,793)(11)
 
Net income (loss) applicable to common shares$168 $(11,793)$(11)
 

Net income (loss) per common share - basic and diluted

$0.09 $(6.06)$(0.01)
 
Weighted average common and equivalent shares outstanding - basic1,9471,9471,947
 
NEW CONCEPT ENERGY, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(amounts in thousands)
   

December 31,

20122011
Assets
 
Current assets
Cash and cash equivalents$398$109
Accounts receivable from oil and gas sales210167
Other current assets 2 20
Total current assets 610 296
 
 
Oil and natural gas properties (full cost accounting method)
Proved developed and undeveloped oil and gas properties, net of depletion9,71711,141
 
Property and equipment, net of depreciation
Land, buildings and equipment - oil and gas operations1,4101,486
Other 204 150
Total property and equipment1,6141,636
 

Other assets (including $161,300 in 2012 due from related parties)

 543 377
 
Total assets$12,484$13,450
 
 
NEW CONCEPT ENERGY, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS - CONTINUED
(amounts in thousands, except share amounts)
   

December 31,

20122011
Liabilities and stockholders' equity
 
Current liabilities
Accounts payable - trade$38$422
Accrued expenses 173  417 
Total current liabilities211839
 
Long-term debt
Notes payable2,3662,249
Payable - related parties-691
Asset retirement obligation2,7702,702
Other long-term liabilities 491  491 
Total liabilities5,8386,972
 
Stockholders' equity
Series B convertible preferred stock, $10 par value, liquidation value
of $100 authorized 100 shares, issued and outstanding one share11
Common stock, $.01 par value; authorized, 100,000,000
shares; issued and outstanding, 1,946,935 shares
at December 31, 2010 and 20092020
Additional paid-in capital58,83858,838
Accumulated deficit (52,213) (52,381)
 
 6,646  6,478 
 
Total liabilities & equity$12,484 $13,450 



New Concept Energy, Inc.
Gene Bertcher, 972-407-8400
info@newconceptenergy.com

KEYWORDS:   United States  North America  Texas

INDUSTRY KEYWORDS:

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