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/
New Concept Energy Inc.
Gene Bertcher
(800) 400-6407
info@newconceptenergy.com