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New Concept Energy, Inc. Reports Third Quarter 2012 Results

The Company recorded revenues of $702,000 in 2012 from its retirement property compared to $690,000 for the comparable period 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.

The Company has a long term lease to operate the facility. Operating costs including lease expense was $590,000 in 2012 as compared to $562,000 in 2011. The increase was principally due to an increase in the lease rate the Company pays to operate the facility.

For 2012, interest income was $0 as compared to $121,000 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 it be unable to collect.

For the three months ended September 30, 2012, the Company recorded interest expense of $52,000 as compared to $31,000 for the comparable period in 2011. The increase is due to additional interest on financing obtained in late 2011 to drill wells.

         
 
NEW CONCEPT ENERGY, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATION
(unaudited)
(amounts in thousands, except per share data)
 

 

For the Three Months ended September 30,

For the Nine Months ended September 30,

2012 2011 2012 2011
Revenue
Oil and gas operations, net of royalties $ 274 $ 313 $ 889 $ 873
Real estate operations   702     690     2,039     2,152  
  976     1,003     2,928     3,025  
 
 
Operating expenses
Oil and gas operations 432 325 1,356 1,025
Real estate operations 359 440 1,078 1,151
Lease expense 231 192 693 576
Corporate general and administrative 108 101 402 351
Accretion of asset retirement obligation - 32 68 96
Impairment of natural gas and oil properties   -     -     912     -  
  1,130     1,090     4,509     3,199  
Operating earnings (loss) (154 ) (87 ) (1,581 ) (174 )
 
Other income (expense)
Interest income - 121 - 360
Interest expense (52 ) (31 ) (170 ) (93 )
Other income (expense), net   1,726     (60 )   1,835     13  
Income/(Expense)   1,674     30     1,665     280  
 
 
Net income (loss) applicable to common shares $ 1,520   $ (57 ) $ 84   $ 106  
 
Net income (loss) per common share-basic and diluted $ 0.78   $ (0.03 ) $ 0.04   $ 0.05  
 

Weighted average common and equivalent shares outstanding - basic

1,947 1,947 1,947 1,947
     
 

NEW CONCEPT ENERGY, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS
(unaudited)
(amounts in thousands)
 
September 30, December 31,
2012 2011
Assets
 
Current assets
Cash and cash equivalents $ 235 $ 109
Accounts receivable from oil and gas sales 177 167
Other current assets   5   20
Total current assets   417   296
 
Oil and natural gas properties (full cost accounting method)
Proved developed and undeveloped oil and gas properties, net of depletion 9,856 11,141
 
Property and equipment, net of depreciation
Land, buildings and equipment - oil and gas operations 1,429 1,486
Other   184   150
Total property and equipment 1,613 1,636
 
Other assets   635   377
 
Total assets   12,521 $ 13,450
     
 
NEW CONCEPT ENERGY, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS - CONTINUED
(unaudited)
(amounts in thousands, except share amounts)
 
September 30, December 31,
2012 2011
 
Liabilities and stockholders' equity
 
Current liabilities
Accounts payable - trade $ 110 $ 422
Accrued expenses   242     417  
Total current liabilities 352 839
 
Long-term debt
Notes payable 2,347 2,249
Payable - related parties - 691
Asset retirement obligation 2,770 2,702
Other long-term liabilities   490     491  
Total liabilities 5,959 6,972
 
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 March 31, 2012 and December 31, 2011 20 20
Additional paid-in capital 58,838 58,838
Accumulated deficit   (52,297 )   (52,381 )
 
  6,562     6,478  
 
Total liabilities & equity $ 12,521   $ 13,450  




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