This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

CorEnergy Releases Fiscal 2012 Financial Results

Stock quotes in this article: CORR

2013 Outlook

During 2013, CorEnergy will continue to focus on acquiring real property assets that are REIT-qualifying. There are opportunities that are in preliminary stages of review, and consummation of any of these opportunities depends on a number of factors beyond our control. With potential transactions ranging in value between $50 million and $200 million, CorEnergy expects to grow over time in order to mitigate risk through diversification. There can be no assurance that any of these acquisition opportunities will result in consummated transactions.

In order to complete possible future transactions, CorEnergy has available to it the following funding mechanisms: issuance of common stock or other equity securities such as convertible or preferred stock, debt issuance, and equity partnerships, like that with Prudential Capital Group. CorEnergy's external manager is committed to structuring acquisitions that are accretive to CorEnergy's distributions to stockholders.

If CorEnergy is able to satisfy the REIT requirements throughout 2013, the Company expects to make an election to be treated as a REIT for tax purposes for 2013. CorEnergy will generally seek to acquire assets that allow for significant tax depreciation in order to shield all or a significant portion of it’s taxable income such that the Company’s ability to pay distributions to stockholders will not be materially impacted by taxes in advance of electing to be taxed as a REIT. Regardless of tax status, an investment in CorEnergy will generally not result in Unrelated Business Taxable Income.

2012 Fiscal Year End Earnings Conference Call

The company will host a conference call on Wednesday, Feb. 13, 2013 at 4:00 p.m. CST to discuss its financial results. Please dial into the call at 877-407-8035 approximately five to ten minutes prior to the scheduled start time.

The call will also be webcast in a listen-only format. A link to the webcast will be accessible at corenergy.corridortrust.com.

A replay of the call will be available until 11:59 p.m. CST March 13, 2013, by dialing 877-660-6853. The Conference ID # is 408822. A replay of the webcast will also be available on the company’s website at corenergy.corridortrust.com through Feb. 13, 2014.

About CorEnergy Infrastructure Trust, Inc.

CorEnergy Infrastructure Trust, Inc. (NYSE: CORR), primarily owns midstream and downstream U.S. energy infrastructure assets subject to long-term triple net participating leases with energy companies. These assets include pipelines, storage tanks, transmission lines and gathering systems. The Company’s principal objective is to provide stockholders with an attractive risk-adjusted total return, with an emphasis on distributions and long-term distribution growth from participating lease terms. Formerly Tortoise Capital Resources Corp., CorEnergy previously traded under the ticker TTO. CorEnergy is managed by Corridor InfraTrust Management, LLC. Corridor is an affiliate of Tortoise Capital Advisors, L.L.C., a registered investment adviser with over $10.4 billion of assets under management in the U.S. energy infrastructure sector as of Jan. 31, 2012. For more information, please visit www.corridortrust.com.

Forward-Looking Statements

This press release contains certain statements that may include "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements, other than statements of historical fact, included herein are "forward-looking statements." Although CorEnergy believes that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. Actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including those discussed in CorEnergy’s reports that are filed with the Securities and Exchange Commission. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Other than as required by law, CorEnergy does not assume a duty to update any forward-looking statement. In particular, any distribution paid in the future to our stockholders will depend on the actual performance of CorEnergy, its costs of leverage and other operating expenses and will be subject to the approval of CorEnergy’s Board of Directors and compliance with leverage covenants.

               
CorEnergy Infrastructure Trust, Inc.
CONSOLIDATED BALANCE SHEETS
 
November 30, 2012 November 30, 2011
Assets
Trading securities, at fair value $ 55,219,411 $ 27,037,642
Other equity securities, at fair value 19,866,621 41,856,730
Leased property, net of accumulated depreciation of $1,131,680, and $294,309, respectively 12,995,169 13,832,540
Cash and cash equivalents 14,333,456 2,793,326
Property and equipment, net of accumulated depreciation of $1,751,202 and $1,483,616, respectively 3,589,022 3,842,675
Escrow receivable 698,729 1,677,052
Accounts receivable 1,570,257 1,402,955
Intangible lease asset, net of accumulated amortization of $413,580 and $121,641, respectively 681,191 973,130
Lease receivable - 474,152
Prepaid expenses 537,184 140,017
Receivable for Adviser expense reimbursement - 121,962
Deferred tax asset - 27,536
Other assets   1,940,793   107,679  
Total Assets $ 111,431,833 $ 94,287,396  
 
Liabilities and Stockholders' Equity
Liabilities
Management fees payable to Adviser $ 249,326 $ 365,885
Accounts payable and other accrued liabilities 2,636,305 1,107,765
Line of credit 120,000 -

Long-term debt

-

2,279,883

Lease obligation 27,522 107,550
Deferred tax liability 7,172,133 -
Unearned Income   2,370,762   -  
Total Liabilities $ 12,576,048 $ 3,861,083  
 
Stockholders' Equity

Warrants, no par value; 945,594 issued and outstanding at November 30, 2012 and November 30, 2011 (5,000,000 authorized)

$ 1,370,700 $ 1,370,700

Capital stock, non-convertible, $0.001 par value; 9,190,667 shares issued and outstanding at November 30, 2012 and 9,176,889 shares issued and outstanding at November 30, 2011 (100,000,000 shares authorized)

9,191 9,177
Additional paid-in capital 91,763,475 95,682,738
Accumulated retained earnings (deficit)   5,712,419   (6,636,302 )
Total Stockholders' Equity $ 98,855,785 $ 90,426,313  
Total Liabilities and Stockholders' Equity $ 111,431,833 $ 94,287,396  
 
 
                 
CorEnergy Infrastructure Trust, Inc.
CONSOLIDATED STATEMENTS OF INCOME
   

For the Year

Ended

November 30,

2012

For the Year

Ended

November 30,

2011

For the Year

Ended

November 30,

2010

Revenue
Sales revenue $ 8,021,022 $ 2,161,723 $ -
Lease income   2,552,975     1,063,740     -  
Total Revenue   10,573,997     3,225,463     -  
 
Expenses
Cost of sales (excluding depreciation expense) 6,078,102 1,689,374 -
Management fees, net of expense reimbursements 1,046,796 968,163 925,820
Asset acquisition expenses 377,834 638,185 -
Professional fees 1,141,045 548,759 590,486
Depreciation expense 1,118,269 364,254 -
Operating expenses 739,519 196,775 -
Directors' fees 85,050 70,192 92,053
Other expenses   231,086     183,674     244,398  
Total Expenses   10,817,701     4,659,376     1,852,757  
 
Loss from Operations, before Income Taxes   (243,704 )   (1,433,913 )   (1,852,757 )
 
Other Income and Expense
Net distributions and dividend income (279,395 ) 651,673 1,853,247
Net realized and unrealized (loss) gain on trading securities 4,009,933 2,299,975 (894,531 )
Net realized and unrealized gain on other equity securities 16,171,944 2,283,773 20,340,602
Other Income - 40,000 38,580
Interest Expense   (81,123 )   (36,508 )   (45,619 )
Total Other Income and Expense   19,821,359     5,238,913     21,292,279  
Income before income taxes   19,577,655     3,805,000     19,439,522  
 
Taxes
Current tax expense (29,265 ) (253,650 ) -
Deferred tax expense   (7,199,669 )   (629,207 )   (4,772,648 )
Income tax expense, net   (7,228,934 )   (882,857 )   (4,772,648 )
Net Income $ 12,348,721   $ 2,922,143   $ 14,666,874  
 
Earnings Per Common Share:
Basic and Diluted $ 1.34 $ 0.32 $ 1.61
 
Weighted Average Shares of Common Stock Outstanding:
Basic and Diluted 9,182,425 9,159,809 9,107,070
Dividends declared per share $ 0.44 $ 0.41 $ 0.43
 
 
                         
CorEnergy Infrastructure Trust, Inc.
CONSOLIDATED STATEMENTS OF EQUITY
 
Capital Stock
Shares     Amount     Warrants    

Additional

Paid-in Capital

   

Retained Earnings

(Accumulated

Deficit)

    Total
Balance at November 30, 2009 9,078,090     $ 9,078     $ 1,370,700     $ 101,929,307       $ (19,012,500 )     $ 84,296,585  
Net Income 14,666,874 14,666,874
Distributions to stockholders sourced as return of capital (3,915,124 ) (3,915,124 )
Reinvestment of distributions to stockholders 68,416       69             430,769               430,838  
Balance at November 30, 2010 9,146,506       9,147       1,370,700       98,444,952         (4,345,626 )       95,479,173  
Net Income 2,922,143 2,922,143
Distributions to stockholders sourced as return of capital (3,755,607 ) (3,755,607 )
Reinvestment of distributions to stockholders 30,383 30 252,212 252,242
Consolidation of wholly-owned subsidiary                     741,181         (5,212,819 )       (4,471,638 )
Balance at November 30, 2011 9,176,889       9,177       1,370,700       95,682,738         (6,636,302 )       90,426,313  
Net Income

 

12,348,721 12,348,721
Distributions to stockholders sourced as return of capital (4,040,273 ) (4,040,273 )
Reinvestment of distributions to stockholders 13,778       14             121,010               121,024  

Balance at November 30, 2012

9,190,667     $ 9,191     $ 1,370,700     $ 91,763,475       $ 5,712,419       $ 98,855,785  
 
 
                 
CorEnergy Infrastructure Trust, Inc.
CONSOLIDATED STATEMENTS OF CASH FLOWS
 

For the Year Ended

November 30, 2012

For the Year Ended

November 30, 2011

For the Year Ended

November 30, 2010

Operating Activities
Net Income $ 12,348,721 $ 2,922,143 $ 14,666,874
Adjustments:
Distributions received from investment securities 4,985,370 2,845,434 3,064,204
Deferred income tax, net 7,199,669 629,207 4,772,648
Depreciation expense 1,118,269 364,254 -
Amortization of intangible lease asset 291,939 121,641 -
Amortization of assumed debt premium (91,883 ) (94,611 ) -
Realized and unrealized (gain) loss on trading securities (4,009,933 ) (2,299,975 ) 894,531
Realized and unrealized gain on other equity securities (16,171,944 ) (2,283,773 ) (20,340,602 )
Changes in assets and liabilities:
Decrease (increase) in interest, dividend and distribution receivable - 42,778 (42,774 )
Decrease in lease receivable 474,152 237,077 -
Increase in accounts receivable (167,302 ) (92,473 ) -
(Increase) decrease in prepaid expenses and other assets (233,272 ) 70,109 (13,429 )
Increase (decrease) in management fees payable to Adviser, net of expense reimbursement 5,403 25,632 (30,926 )
Increase (decrease) in accounts payable and other accrued liabilities 1,528,541 275,003 (47,625 )
Increase in unearned income   2,370,762     -     -  
Net cash provided by operating activities $ 9,648,492   $ 2,762,446   $ 2,922,901  
 
Investing Activities

Purchases of long-term investments of trading and other equity securities

$ - $ (38,060,281 ) $ (10,633,882 )

Proceeds from sale of long-term investment of trading and other equity securities

9,354,306 53,950,583 15,762,612
Proceeds from receipt of escrow receivable 628,863 - -

Acquisition expenditures and deferred lease costs

(942,707 ) - -
Cash paid in business combination - (12,250,000 ) -
Proceeds from sale of property and equipment 3,076 - -
Purchases of property and equipment   (30,321 )   (1,045 )   -  
Net cash provided by (used in) investing activities $ 9,013,217   $ 3,639,257   $ 5,128,730  
 
Financing Activities
Payments on long-term debt $ (2,188,000 ) $ (1,221,000 ) $ -
Payments on lease obligation (80,028 ) (44,816 ) -
Deferred financing costs (1,054,302 ) - -
Advances from revolving line of credit 5,285,000 - -
Repayments on revolving line of credit (5,165,000 ) (400,000 ) (4,600,000 )
Distributions paid to common stockholders   (3,919,249 )   (3,503,365 )   (3,484,284 )
Net cash used in financing activities $ (7,121,579 ) $ (5,169,181 ) $ (8,084,284 )
 
Net Change in Cash and Cash Equivalents $ 11,540,130 $ 1,232,522 $ (32,653 )
Consolidation of wholly-owned subsidiary - 94,611 -
Cash and Cash Equivalents at beginning of year   2,793,326     1,466,193     1,498,846  
Cash and Cash Equivalents at end of period $ 14,333,456   $ 2,793,326   $ 1,466,193  
 
Supplemental Disclosure of Cash Flow Information
Interest paid $ 203,611 $ 176,595 $ 66,703
Income taxes paid $ 96,000 $ 253,650 $ -
Non-Cash Investing Activities
Security proceeds from sale of long-term investment of other equity securities $ 26,565,400 $ - $ -
Non-Cash Financing Activities
Reinvestment of distributions by common stockholders in additional common shares $ 121,024 $ 252,242 $ 430,838




6 of 7

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,804.71 -238.19 -1.40%
S&P 500 1,946.16 -26.13 -1.32%
NASDAQ 4,422.0850 -71.3050 -1.59%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs