Universal Bioenergy Files its First Quarter Report – Achieves Revenues of $22.24 Million
IRVINE, Calif., August 26, 2011 – Universal Bioenergy Inc. (Pink Sheets: UBRG), a natural and alternative energy company, announced today that it has filed its First Quarter Report on Form-10Q for the financial results of operations, for the three months ended March 31, 2011 with the Securities and Exchange Commission. The quarterly report was reviewed by its new independent registered public accounting firm, and contains the Company’s financial statements, management's discussion and analysis (MD&A), and its future plans.
The Company posted record revenues of $22,247,354 for the three months ended March 31, 2011, as compared to $0 for the same period in 2010. Universal incurred losses of $577,034 as compared to $172,872 for the same period ended March 31, 2010. Excluding the value of common stock that was issued for services, and interest expenses which together totaled $478,609, would correspondingly reduce the net loss of $577,034 to an adjusted net loss of $98,425 for the period ending March 31, 2011. An adjusted net loss of $98,425, equals only 0.44% of their total revenues of $22,247,354 for this period.
Universal’s total operating expenses for the three months ended March 31, 2011 were $337,088 as compared to $167,694 for the same period in 2010. Its total assets increased $4,074,717, or by 1,390.21% to $4,367,817 for the period ending March 31, 2011, compared to $293,100 for the same period in 2010. This was primarily due to an increase in accounts receivables from the sales of natural gas. Their long-term liabilities are $248,912 for this reporting period, compared to $70,000 for the same period last year.
Universal’s Senior Vice President Solomon Ali says, “We are extremely pleased with the great strides we have made for this first quarter. Our revenues for the first quarter of 2011 grew at a phenomenal rate from the previous year. In 2010 the company achieved revenues of $41,320,647 for the entire year. However, during the first three months of 2011 alone, we generated revenues of $22,247,354, or 54% of the total revenues for all of 2010. This is a monumental increase for a company in any industry. Many companies are considered high growth companies if their revenues increase by 10% to 15% annually. At a 54% growth rate, we have already exceeded that benchmark by nearly four times, which means we are a hyper growth company right now. We look forward to continued rapid growth, with more and larger contract awards for the sales of natural gas, propane and other energy products. Our goal is to generate even greater revenues and move the company to solid profitability, to the benefit of our shareholders.”
The full Form 10-Q Annual Report is available for viewing on the SEC's website, and it is also available at our website at www.universalbioenergy.com Investor Relations, SEC Filings section.
About The Company
Universal Bioenergy Inc. is an alternative energy company, and intends to create and market natural and alternative energy sources including natural gas, petroleum, solar, biofuels, wind, synthetic fuels and related energy technology products. It plans to build the company into a prominent player in alternative energy.
For inquiries contact: Media Relations: Solomon Ali at 949-559-5017
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More excerpts from that 10-Q:
1) Universal Bioenergy and Progas Energy "Strikes Oil & Gas":
On March 3, 2011, we announced that Progas had stuck oil and gas on several wells that it had drilled in Texas. Progas is our joint venture partner in developing an oil and gas field in Jim Wells County, Texas. According to Progas, the field possibly houses 20,000,000 Bbls of oil, with an estimated value of $1.68 billion based on the, August 10, 2011 NYMEX, West Texas Intermediate (WTI) price of, $84.37, and over 20,000,000 mcf of natural gas, with an estimated value of $79.80 million, based on the, August 10, 2011 NYMEX price of $3.99. No guarantees can be provided that the oil and gas field can be developed, profitable, or that the price of oil will be similar to the August 10, 2011 price discussed.
2) Approval of Stock Dividend:
On June 6, 2011, our Board of Directors passed a resolution and declared a stock dividend to distribute to all registered shareholders of record on or before July 1, 2011, on a 10 for 1 basis. On July 12, 2011, our transfer agent, issued 11,415,311 shares of common stock to all registered shareholders of record in accordance with the resolution and declaration.
Our management contends that the payment of a dividend in stock instead of cash allows our company to maintain our cash and still reward our shareholders with a dividend. We feel this will reward our loyal shareholders for their ongoing support, and to give them a greater stake in our company.
3) Standard & Poor's Initiates Factual Stock Report Coverage on Universal Bioenergy:
On April 7, 2011, Standard & Poor's announced that it has commenced Factual Stock Report coverage our company. S&P's Factual Stock Report coverage will be accessible on an ongoing basis to the investment community by scores of buy-side institutions, and sell-side firms that utilize S&P research and information platforms daily. S&P's Report will be distributed to an estimated 85,000 brokers and financial consultants, scores of global institutional fund managers, and over 24 million self-directed online individual investors. The weekly Report covers the latest pricing, trading volume, recent developments, a financial review, key operating information, Industry and peer comparisons, institutional holdings analysis, Street Consensus and opinions, performance charts, business summary, fundamental data, and news.
1) Since the company announced on March 12 that UBRG and Progas struck oil and gas on SEVERAL wells on a field with huge reserves, where are the press releases showing HOW MUCH oil and gas they did recover? I think that they could not even fill up their gas tank once with the oil they recoved and that Ali and Vince produce more gas from their intestines that they extracted from the ground.
2) Since everybody got that 10% stock dividend, each investor still has the identical ownership interest in the company right after the dividend. The investor therefore does not have an increased stake in the company. Send Ali and Vince back to 2nd grade math. Furthermore this ownership interest is being rapidly diluted by the tens of millions of shares issued to who knows who.
3) Where is the big payoff from that increased exposure by those S&P factual stock reports? Purportely 85,000 stock brokers and financial adviser and 24 million Internet users are now aware of UBRG. You mean to tell me that they could not find a single sucker among these masses?
1.) Let me remind you of their 'disclosure' that there are some forward looking statement? Do you seriously expect everything is 100% going to happen? Let me refrain what they mentioned in #1 "No guarantees can be provided that the oil and gas field can be developed"
2.) I agree on this one, well "somehow". My position is still 10% better after the dividend, so mathematically, that varies to individual investor.
3.) WTfark? You kidding me right? There are no 100% guarantees that it S&P coverage will benefit it. Its like you saying, "If I wore nike, I'd jump like Michael Jordan"....
More excerpts from that 10-Q (continued):
4) Universal Signs Agreement With International Monetary:
On April 13, 2011, we announced we signed an agreement to retain the services of International Monetary ("IM"), based in Newport Beach, California, as our investment banking consulting firm. "IM" will also provide strategic advisory services, proprietary investor relations services (IR), financial solutions, debt/equity sources, and advise our management on other strategic decisions.
5) Business Strategy:
Our primary objective is be one of the top independent energy companies in the United States, and to deliver maximum value to our shareholders, and generate increasing revenues and solid earnings for the long-term growth of our company . By building on our successes in 2010, we plan, although we cannot provide assurances as to timing and attainment, to achieve these future objectives by pursuing the following strategies; Blah, blah, blah, etc.
4) UBRG will leave no stone unturned. Who will be next? BTW, is that not the all of the jobs Ali and Vince were hired to do and get paid about $174,000 per year to perform. Does that mean we pay twice for the same product. Either that's double dipping or the officers are incompetent to perform their jobs on their own and need some underlings to do it for them.
5) OK, WHERE ARE THOSE SOLID EARNINGS INCREASES WHICH HAVE BEEN PROMISED NOW FOR YEARS? I only see increasing losses.
Wilma. what the hell are you talking about? They had revenues of about $24 million in the 4th quater 2010, and only $22 million in the first quarter 2011. That's a decraese in my books of about 10% and that's while gas consumption in these winter months was at its highest.
Back to 2nd grade math for you.