New Concept Energy, Inc. - FORM 8-K - EX-99.1 - April 5, 2011

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Exhibit 99.1
     
NEWS RELEASE
    
 
    
FOR IMMEDIATE RELEASE
  Contact:
 
  New Concept Energy Inc.
 
  Investor Relations
 
  (800) 400-6407
 
  investor.relations@primeasset.com
New Concept Energy, Inc. Reports Fourth Quarter and Full Year 2010 Results
Dallas (April 1. 2011) — New Concept Energy, Inc. (AMEX:GBR), ( the Company” or “NCE”) a Dallas-based oil and gas company, today reported a net loss for the twelve months ended December 31, 2010 of $11,000 or $(0.01) per share, compared to net loss of $2.2 million or $1.14 per share for the twelve months ended December 31, 2009. Net income for the three months ended December 31 2010 was $116,000 as compared to a net loss of $2.2 million for the three months ended December 31, 2009.
The loss in 2009 is primarily attributed to a non-cash charge to operations of $1.7 million to impairment of the Company’s oil and gas reserves.
Revenues and Operating Expenses: Total revenues for 2010 totaled $4.2 million compared to $4.1 million in 2009. The primary reason for the increase is higher occupancy in our retirement facility. Operating expenses totaled $4.3 million for 2010 compared to $6.8 million for 2009. In 2010, oil and gas operating costs totaled $1.3 million compared to $1.5 million in 2009 due to the cost reductions and efficiency in well production. Also in 2010, the Company recorded accretion of discount related to its asset retirement obligation of $123,000. Real estate operating expenses remained relatively constant. Corporate general and administrative expenses decreased from $1.2 million to $731,000, due primarily to the write-down of receivables of approximately $200,000 and the accrual of $200,000 in interest and penalties on unpaid taxes in 2009 that were one time in nature and did not reoccur in 2010.
Interest Income & Expense: Interest income decreased approximately $77,000 from 2009 to 2010 due to the reduction of the principle during 2010. Interest expense remained relatively unchanged from 2009 to 2010.
Other Income & Expense: Other income expense changed from $68,000 in income for 2009 to a $340,000 expense in 2010. The company had a write-off of $350,000 for an attempted acquisition that did not occur.

 

 

NEW CONCEPT ENERGY ENERGY, INC. AND SUBSIDARIES
CONSOLIDATED BALANCE SHEETS
(amounts in thousands)
                 
    December 31,     December 31,  
    2010     2009  
Assets
                
 
                
Current assets
                
Cash and cash equivalents
   $ 59     $ 155  
Accounts receivable from oil and gas sales
     223       203  
Other current assets
     101       555  
 
            
Total current assets
     383       913  
 
            
 
                
Note and interest receivable — related party
     10,361       11,206  
 
                
Oil and natural gas properties (full cost accounting method)
                
Proved developed and undeveloped oil and gas properties, net of depletion
     11,789       11,384  
 
                
Property and equipment, net of depreciation
                
Land, buildings and equipment — oil and gas operations
     1,308       1,337  
Other
     156       149  
 
            
Total property and equipment
     1,464       1,486  
 
                
Other assets
     70       132  
 
            
 
                
Total assets
   $ 24,067     $ 25,121  
 
            

 

 

NEW CONCEPT ENERGY, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS — CONTINUED
(amounts in thousands, except share amounts)
                 
    December 31,     December 31,  
    2010     2009  
Liabilities and stockholders’ equity
                
 
                
Current liabilities
                
Accounts payable — trade
   $ 83     $ 154  
Accrued expenses (including $690 and $798 to related parties in 2010 and 2009)
     156       1,903  
 
            
Total current liabilities
     239       2,057  
 
                
Long-term debt
                
Notes payable
     1,308       1,198  
Payable — related parties
     953       808  
Asset retirement obligation
     2,573       2,450  
Other long-term liabilities
     723       326  
 
            
Total liabilities
     5,796       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, 2010 and 2009
     20       20  
Additional paid-in capital
     58,838       58,838  
Accumulated deficit
     (40,588 )     (40,577 )
 
            
 
                
 
     18,271       18,282  
 
            
 
                
Total liabilities & equity
   $ 24,067     $ 25,121  
 
            

 

 

NEW CONCEPT ENERGY, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATION
(amounts in thousands, except per share data)
                         
    Year Ended December 31,  
    2010     2009     2008  
Revenue
                        
Oil and gas operations, net of royalties
   $ 1,248     $ 1,206     $ 672  
Real estate operations
     2,965       2,892       2,888  
 
                  
 
     4,213       4,098       3,560  
 
                  
 
                        
Operating expenses
                        
Oil and gas operations
     1,292       1,498       494  
Real estate operations
     1,225       1,217       1,158  
Lease expense
     886       958       954  
Corporate general and administrative
     731       1,342       1,096  
Accretion of asset retirement obligation
     123       117       —  
Impariment of natural gas and oil properties
     —       1,695       —  
 
                  
 
     4,257       6,827       3,702  
 
                  
Operating earnings (loss)
     (44 )     (2,729 )     (142 )
 
                        
Other income (expense)
                        
Interest income
     497       574       785  
Interest expense
     (124 )     (123 )     (270 )
Gain on sale of assets, net
     —       —       16,432  
Other income (expense), net
     (340 )     68       464  
 
                  
 
     33       519       17,411  
 
                        
Earnings from continuing operations
     (11 )     (2,210 )     17,269  
Income tax expense
     —       —       —  
Provision for income taxes
     —       —       (1,774 )
 
                  
 
                        
Net income (loss) applicable to common shares
   $ (11 )   $ (2,210 )   $ 15,495  
 
                  
 
                        
Net income (loss) per common share-basic and diluted
   $ (0.01 )   $ (1.14 )   $ 8.92  
 
                  
 
                        
Weighted average common and equivalent shares outstanding — basic
     1,947       1,947       1,737  
Contacts
New Concepts Energy, Inc.
Investor Relations, 800-400-6407
investor.relations@primeasset.com

 

New Concept Energy, Inc. Reports