New Concept Energy, Inc. - FORM 8-K - EX-99.1 - May 16, 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@pillarincome.com
New Concept Energy, Inc. Reports First Quarter 2011 Results
Dallas (May 13, 2011) — New Concept Energy, Inc. (AMEX:GBR), (the Company” or “NCE”) a Dallas-based oil and gas company, today reported net income for the three months ended March 31, 2011 of $97,000 or $ (0.05) per share, compared to net loss of $40,000 or $0.02 per share for the three months ended March 31, 2010.
For the three months ended March 31, 2011, the Company recorded oil and gas revenues of $280,000 as compared to $270,000 for the comparable period of 2010. The changes in oil & gas revenue was due changes in the price of oil and gas in the marketplace.
During the same periods in 2011, the Company recorded revenues of $729,000 for the three months ended March 31, 2011 from its retirement property compared to $703,000 for the comparable period in 2010. The increase was a rise in the occupancy rate of the properties from prior periods.
For the three months ended March 31, 2011, the Company recorded oil and gas operating expenses of $335,000 as compared to $356,000 for the comparable period of 2010. The decrease was due to a decrease in overall administrative expenses during the year.
For the three months ended March 31, 2011, operating expenses and lease expense at the retirement property were $581,000 as compared to $564,000 for the comparable period in 2010. The increase was a rise in the occupancy rate of the properties from prior periods.
For the three months ended March 31, 2011, corporate general & administrative expenses were $124,000 as compared to $199,000 for the comparable periods in 2010. The decrease is primarily due to payroll costs and administrative overhead.
For the three months ended March 31, 2011, interest income was $119,000 as compared to $139,000 for the comparable period in 2010. The decrease is due to a reduction in the receivable on which interest is computed over the comparable periods.

 

 

NEW CONCEPT ENERGY ENERGY, INC. AND SUBSIDARIES
CONSOLIDATED BALANCE SHEETS
(unaudited)
(amounts in thousands)
                 
    March 31,     December 31,  
    2011     2010  
Assets
               
 
                
Current assets
               
Cash and cash equivalents
   $ 68     $ 59  
Accounts receivable from oil and gas sales
     209       223  
Other current assets
     106       101  
 
            
Total current assets
     383       383  
 
            
 
                
Note and interest receivable — related party
     9,771       10,361  
 
                
Oil and natural gas properties (full cost accounting method)
                
Proved developed and undeveloped oil and gas properties, net of depletion
     11,776       11,789  
 
                
Property and equipment, net of depreciation
                
Land, buildings and equipment — oil and gas operations
     1,301       1,308  
Other
     154       156  
 
            
Total property and equipment
     1,455       1,464  
 
                
Other assets
     430       70  
 
            
 
                
Total assets
   $ 23,815     $ 24,067  
 
            
The accompanying notes are an integral part of these consolidated financial statements.

 

 

NEW CONCEPT ENERGY, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS - CONTINUED
(unaudited)
(amounts in thousands, except share amounts)
                 
    March 31,     December 31,  
    2011     2010  
Liabilities and stockholders’ equity
                
 
                
Current liabilities
                
Accounts payable — trade
   $ 194     $ 83  
Accrued expenses
     67       156  
 
            
Total current liabilities
     261       239  
 
                
Long-term debt
                
Notes payable
     1,336       1,308  
Payable — related parties
     486       953  
Asset retirement obligation
     2,605       2,573  
Other long-term liabilities
     760       723  
 
            
Total liabilities
     5,448       5,796  
 
                
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, 2011 and December 31, 2010
     20       20  
Additional paid-in capital
     58,838       58,838  
Accumulated deficit
     (40,492 )     (40,588 )
 
            
 
 
     18,367       18,271  
 
            
 
Total liabilities & equity
   $ 23,815     $ 24,067  
 
            
The accompanying notes are an integral part of these consolidated financial statements.

 

 

NEW CONCEPT ENERGY, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATION
(unaudited)
(amounts in thousands, except per share data)
                 
    For the Three Months ended March  
    2011     2010  
Revenue
                
Oil and gas operations, net of royalties
   $ 280     $ 270  
Real estate operations
     729       703  
 
            
 
     1,009       973  
 
            
 
                
Operating expenses
                
Oil and gas operations
     335       356  
Real estate operations
     390       325  
Lease expense
     191       239  
Corporate general and administrative
     124       199  
Accretion of asset retirement obligation
     32       30  
 
            
 
     1,072       1,149  
 
            
Operating earnings (loss)
     (63 )     (176 )
 
                
Other income (expense)
                
Interest income
     119       139  
Interest expense
     (31 )     (31 )
Gain on sale of assets, net
     —       10  
Other income (expense), net
     72       18  
 
            
Income/(Expense)
     160       136  
 
            
 
                
Net income (loss) applicable to common shares
   $ 97     $ (40 )
 
            
 
                
Net income (loss) per common share-basic and diluted
   $ 0.05     $ (0.02 )
 
            
 
                
Weighted average common and equivalent shares outstanding — basic
     1,947       1,947  
The accompanying notes are an integral part of these consolidated financial statements.
Contact
New Concept Energy, Inc.
Investor Relations, 800-400-6407
investor.relations@pillarincome.com

 

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