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New Concept Energy, Inc. Reports Third Quarter 2020 Results

·4 min read

New Concept Energy, Inc. (NYSE American: GBR), ( the "Company" or "NCE") a Dallas-based company, today reported net income for the three months ended September 30, 2020 of $2,182,000 or ($0.43) per share, compared to a net loss of $2,320,000 or ($0.45) per share for the three months ended September 30, 2019.

For the three months ended September 30, 2020, the Company recorded net revenue from continuing operations of $82,000 and net income from discontinued operations of $2,100,000. For the three months ended September 30, 2019, the Company recorded $22,000 from continuing operations and a loss of $2,342,000 from discontinued operations.

On August 31, 2020 the Company sold its entire oil and gas operation for $85,000 to an independent third party. In prior years the Company has accrued a liability of $2,745,000 to plug and abandon the existing wells. This obligation was assumed by the buyer. Upon the sale of the wells the Company recorded a gain of $2,138,000.

In September 2019 the Company wrote down the accounting value of its oil and gas reserves by $2,285,000.

For the three months ended September 30, 2020 the Company reported other income of $84,000 which represents a tax refund for taxes paid in prior years.

The Company continues to own approximately 190 acres of land located in Parkersburg West Virginia. Located on the land are four structures totaling approximately 53,000 square feet. Of this total area the main industrial / office building contains approximately 24,800 square feet of which approximately 16,000 square feet is leased at a rate of $101,000 per annum.

NEW CONCEPT ENERGY, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(unaudited)

(dollars in thousands, except par value amount)

September 30,
2020

December 31,
2019

(unaudited)

(audited)

Assets

Current assets

Cash and cash equivalents

$

42

$

22

Current portion notes receivable (including $3,578 and $4,005 due to related parties in 2020 and 2019)

3,618

4,046

Other current assets

104

-

Total current assets

3,764

4,068

Property and equipment, net of depreciation

Land, buildings and equipment

659

668

Assets held for sale

-

840

Other assets

181

214

Total assets

$

4,604

$

5,790

NEW CONCEPT ENERGY, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS - CONTINUED

(unaudited)

(dollars in thousands, except par value amount)

September 30,
2020

December 31,
2019

Liabilities and stockholders' equity

Current liabilities

Accounts payable (includes $32 and $180 due to related parties in 2020 and 2019)

$

39

$

226

Accrued expenses

18

20

Current portion of long term debt

40

44

Total current liabilities

97

290

Long-term debt

Notes payable less current portion

150

177

Liabilities of assets held for sale

-

2,914

Total liabilities

247

3,381

Stockholders' equity

Preferred stock, Series B

1

1

Common stock, $.01 par value; authorized, 100,000,000 shares; issued and outstanding, 5,131,934 shares at September 30, 2020 and December 31, 2019

51

51

Additional paid-in capital

63,579

63,579

Accumulated deficit

(59,274

)

(61,222

)

Total Shareholder Equity

4,357

2,409

Total liabilities & equity

$

4,604

$

5,790

NEW CONCEPT ENERGY, INC AND SUBSIDIARIES

CONSOLIDATED STATEMENT OF OPERATIONS

(unaudited)

(amounts in thousands, except per share data)

For the Three Months ended September 30,

For the Nine Months ended September 30,

2020

2019

2020

2019

Revenue

Rent

$

25

$

25

$

76

$

76

Operating expenses

Operating expenses

15

17

46

53

Corporate general and administrative

65

92

296

314

Total operating expenses

80

109

342

367

Operating loss

(55

)

(84

)

(266

)

(291

)

Other income (expense)

Interest income from related parties

54

60

172

180

Interest Income from third parties

3

3

12

12

Interest expense

(3

)

(3

)

(9

)

(12

)

Income other

83

46

83

199

Other income

137

106

258

379

Net income (loss) from continuing operations

82

22

(8

)

88

Discontinued Operations

Gain (loss) from discontinued operations

(38

)

(2,342

)

(182

)

(2,423

)

Gain (loss) from disposal of Oil & Gas Operations

2,138

-

2,138

-

2,100

(2,342

)

1,956

(2,423

)

Net income (loss) applicable to common shares

2,182

(2,320

)

1,948

(2,335

)

Net income (loss) per common share-basic and diluted

$

0.43

$

(0.45

)

$

0.38

$

(0.45

)

Weighted average common and equivalent shares outstanding - basic

5,132

5,132

5,132

5,132

View source version on businesswire.com: https://www.businesswire.com/news/home/20201116006053/en/

Contacts

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