EX-99.1 2 d73193exv99w1.htm EX-99.1 exv99w1
Exhibit 99.1

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New Concept Energy, Inc. Reports First Quarter 2010 Results | Business Wire
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May 17, 2010 08:54 PM Eastern Daylight Time (TIME LOGO)
New Concept Energy, Inc. Reports First Quarter 2010 Results
DALLAS — (BUSINESS WIRE) — New Concept Energy, Inc. (AMEX: GBR), (“the Company” or “NCE”), a Dallas-based oil and gas company, today reported results of operations for the first quarter ended March 31, 2010. NCE announced today that the Company reported a net loss applicable to common shares of $40,000 or $(0.02) per share for the three months ended March 31, 2010, as compared to net income of $23,000 or 0.01 per share for the same period ended 2009.
The Company recorded oil and gas revenues of $270,000 as compared to $394,000 for the comparable period of 2009. The decrease in oil & gas revenue was due entirely to lower prices in 2010.
The Company recorded revenues of $703,000 for the three months ended March 31, 2010 from its retirement property compared to $674,000 for the comparable periods in 2009. The principal reason for the increase was additional fees collected in 2010.
The Company recorded oil and gas operating expenses of $356,000 as compared to $386,000 for the comparable period of 2009. The decrease was due to a decrease in payroll costs.
Operating expenses and lease expense at the retirement property were $536,000 as compared to $551,000 for the comparable periods in 2009.
Corporate general & administrative expenses were $199,000 as compared to $262,000 for the comparable periods in 2009. The decrease is primarily due to decreased payroll costs.
Interest income was $139,000 as compared to $181,000. The decrease is primarily due to decreases in the prime lending rate and the decreased receivable on which interest is computed over the comparable periods. Interest expense for the three months ended March 31, 2010 was $31,000.
New Concept Energy, Inc. and Subsidiaries
CONSOLIDATED STATEMENTS OF OPERATIONS
(amounts in thousands, except per share amounts)
                 
    For the three months ended  
    March 31,  
    2010     2009  
Revenue
                
Oil and gas operations, net of royalties
   $ 270     $ 394  
Real estate operations
     703       674  
 
            
 
     973       1,068  
 
                
Operating expenses
                
Oil and gas operations
     356       386  
Real estate operations
     325       340  
Lease expense
     239       239  
Corporate general and administrative
     199       262  
Accretion of asset retirement obligation
     30       —  
 
            
 
     1,149       1,227  
 
            

 

 

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New Concept Energy, Inc. Reports First Quarter 2010 Results | Business Wire
                 
    For the three months ended  
    March 31,  
    2010     2009  
Operating earnings (loss)
     (176 )     (159 )
 
                
Other income (expense)
                
Interest income
     139       181  
Interest expense
     (31 )     (30 )
Gain on sale of assets, net
     10       —  
Other income, net
     18       31  
 
            
 
     136       182  
 
            
 
                
Net income (loss) from continuing operations
     (40 )     23  
 
            
 
                
Net income (loss) applicable to common shares
   $ (40 )   $ 23  
 
            
Net income (loss) per common share — basic and diluted
   $ (0.02 )   $ 0.01  
 
            
 
                
Weighted average common and equivalent shares outstanding — basic
     1,947       1,947  
NEW CONCEPT ENERGY, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(amounts in thousands, except share amounts)
                 
    March 31,     December 31,  
    2010     2009  
Assets
                
 
                
Current assets:
                
 
                
Cash and cash equivalents
   $ 123     $ 155  
Accounts receivable from oil and gas sales
     201       203  
Note and interest receivable — related party
     9,920       11,206  
Other current assets
     550       567  
 
            
 
                
Total current assets
     10,794       12,131  
 
                
Oil and natural gas properties (full cost accounting method):
                
 
                
Proved developed and undeveloped oil and gas properties, net of depletion
     11,350       11,372  
 
                
Property and equipment, net of depreciation:
                
 
                
Land, buildings and equipment — oil and gas operations
     1,330       1,337  
Other
     152       149  
 
                
 
            
Total property and equipment
     1,482       1,486  
 
                
Other assets
     162       132  
 
            
 
                
Total assets
   $ 23,788     $ 25,121  
 
            

 

 

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New Concept Energy, Inc. Reports First Quarter 2010 Results | Business Wire
New Concept Energy Inc. and Subsidiaries
CONSOLIDATED BALANCE SHEETS — CONTINUED
(amounts in thousands, except share amounts)
                 
    March 31, 2010     December 31, 2009  
Liabilities and stockholders’ equity
                
 
                
Current liabilities:
                
 
                
Accounts payable — trade
   $ 200     $ 154  
Accrued expenses (including $661 and $638 to related parties in 2010 and 2009
     1,352       2,711  
 
            
 
                
Total current liabilities
     1,552       2,865  
 
                
Long-term debt:
                
Notes payable
     1,226       1,198  
Asset retirement obligation
     2,480       2,450  
Other long-term liabilities
     288       326  
 
            
Total liabilities
     5,546       6,839  
 
                
Stockholders’ equity:
                
Preferred stock, Series B
     1       1  
Common stock, $.01 par value; authorized, 100,000,000 shares; issued and outstanding, 1,946,939 shares at December 31, 2009 and 2008
     20       20  
Additional paid-in capital
     58,838       58,838  
Accumulated deficit
     (40,617 )     (40,577 )
 
            
 
                
 
     18,242       18,282  
 
            
 
                
Total liabilities & equity
   $ 23,788     $ 25,121  
 
            
Contacts
New Concept Energy, Inc.
Gene Bertcher, 972-407-8400
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