New Concept Energy, Inc. (NYSE American: GBR), (the “Company” or “NCE”) a Dallas based company, today reported Results of Operations for the fourth quarter and the full year ended December 31, 2020.
Discontinued Operations:
In August 2020 the Company sold its oil and gas operation and recorded a gain from the sale of $2.1 million. The sales price was $85,000 however the Company had previously established a reserve for plug and abandonment costs of $2 million. Upon the sale the Company was relieved of any plug and abandonment obligations.
For the full year ended December 31, 2020 the Company reported a net loss from discontinued operations of $170,000 as compared to net loss of $2.4 million for the same period ended December 31, 2019. Included in the loss in 2019 is an impairment loss of $2.3 million whereby the Company had reduced the recorded value of its oil and gas operation.
Continuing Operations:
During the three months ended December 31, 2020 the Company reported a net loss from continuing operations of $32,000 compared to a net loss of $17,000 for the same period ended December 31, 2019.
For the full year ended December 31, 2020 the Company reported a net loss from continuing operations of $52,000 as compared to net income of $60,000 for the same period ended December 31, 2019.
Revenues: Total revenues from rent for the leased property was $101,000 in 2020 and $98,000 in 2019.
Operating Expenses: Operating expenses for the real estate property was $72,000 in 2020 and $61,000 in 2019. General and administrative expenses were $396,000 in 2020 and 418,000 in 2019.
Interest Income: Interest Income was $242,000 in 2020 as compared to $257,000 in 2019. The decrease was due to the reduction in the principal balance outstanding due to payments received.
Other Income: Other income was $85,000 in 2020 which is an income tax refund for prior years. Other income was $199,000 in 2019 which is comprised of a gain on sale of equipment of $46,000 and the settlement of a legal claim of $153,000.
Discontinued Operations: During the first nine months of 2020 the Company recorded a net loss from its oil and gas operations of $170,000. In August 2020 the Company sold the oil and gas operation and recorded a gain of $2,138,000.
About New Concept Energy, Inc.
New Concept Energy, Inc. is a Dallas-based company which owns real estate in West Virginia. For more information, visit the Company’s website at www.newconceptenergy.com.
| NEW CONCEPT ENERGY, INC. AND SUBSIDIARIES | |||||
| CONSOLIDATED BALANCE SHEETS | |||||
| (amounts in thousands) | |||||
| December 31, | |||||
2020 | 2019 | ||||
| Assets | |||||
| Current assets | |||||
| Cash and cash equivalents | $ | 27 | $ | 22 | |
| Current portion note receivable (including $ $3,631 and $4,005 in 2020 and 2019 from related parties) | 3,683 | 4,046 | |||
| Other current assets | 92 | - | |||
| Total current assets | 3,802 | 4,068 | |||
| Property and equipment, net of depreciation | |||||
| Land, buildings and equipment | 656 | 668 | |||
| Note Receivable | 153 | 214 | |||
| Assets held for sale | - | 840 | |||
| Total assets | $ | 4,611 | $ | 5,790 | |
| NEW CONCEPT ENERGY, INC. AND SUBSIDIARIES | |||||||
| CONSOLIDATED BALANCE SHEETS - CONTINUED | |||||||
| (amounts in thousands, except share amounts) | |||||||
| December 31, | |||||||
2020 | 2019 | ||||||
| Liabilities and stockholders' equity | |||||||
| Current liabilities | |||||||
| Accounts payable - trade (including $55 and $180 in 2020 and 2019 due to related parties) | $ | 80 | $ | 226 | |||
| Accrued expenses | 32 | 20 | |||||
| Current portion of long term debt | 52 | 44 | |||||
| Total current liabilities | 164 | 290 | |||||
| Long-term debt | |||||||
| Notes payable less current portion | 122 | 177 | |||||
| Liabilities of assets held for sale | - | 2,914 | |||||
| Total liabilities | 286 | 3,381 | |||||
| Stockholders' equity | |||||||
| Series B convertible preferred stock, $10 par value, liquidation value | |||||||
| of $100 authorized 100 shares, issued and outstanding one share | 1 | 1 | |||||
| Common stock, $.01 par value; authorized, 100,000,000 | |||||||
| shares; issued and outstanding, 5,131,934 shares | |||||||
| at December 31, 2020 and 2019 | 51 | 51 | |||||
| Additional paid-in capital | 63,579 | 63,579 | |||||
| Accumulated deficit | (59,306 | ) | (61,222 | ) | |||
4,325 | 2,409 | ||||||
| Total liabilities & stockholders' equity | $ | 4,611 | $ | 5,790 | |||
| NEW CONCEPT ENERGY, INC. AND SUBSIDIARIES | |||||||||||
| CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||
| (amounts in thousands, except per share data) | |||||||||||
| Year Ended December 31, | |||||||||||
2020 | 2019 | 2018 | |||||||||
| Revenue | |||||||||||
| Rent | $ | 101 | $ | 98 | $ | 123 | |||||
101 | 98 | 123 | |||||||||
| Operating expenses | |||||||||||
| Operating Expenses | 72 | 61 | 59 | ||||||||
| Corporate general and administrative | 396 | 418 | 359 | ||||||||
468 | 479 | 418 | |||||||||
| Operating loss | (367 | ) | (381 | ) | (295 | ) | |||||
| Other income (expense) | |||||||||||
| Interest income (including $226 and $240 for the year ended 2020 and 2019 from related parties) | 242 | 257 | 37 | ||||||||
| Interest expense | (12 | ) | (15 | ) | (18 | ) | |||||
| Other income (expense), net | 85 | 199 | 11 | ||||||||
315 | 441 | 30 | |||||||||
| Net income (loss) from continuing operations | (52 | ) | 60 | (265 | ) | ||||||
| Net income (loss) from discontinued operations | |||||||||||
| Gain (loss) from discontinued operations | (170 | ) | (2,412 | ) | (219 | ) | |||||
| Gain from Disposal of oil and gas operations | 2,138 | ||||||||||
1,968 | (2,412 | ) | (219 | ) | |||||||
| Net income (loss) applicable to common shares | $ | 1,916 | $ | (2,352 | ) | $ | (484 | ) | |||
| Net income (loss) per common share-basic and diluted | $ | 0.37 | $ | (0.46 | ) | $ | (0.21 | ) | |||
| Weighted average common and equivalent shares outstanding - basic | 5,132 | 5,132 | 2,358 | ||||||||
View source version on businesswire.com: https://www.businesswire.com/news/home/20210331005990/en/
Contacts:
Gene Bertcher
(800) 400-6407
info@newconceptenergy.com
