New Concept Energy, Inc. Reports First Quarter 2024 Results

Rhea-AI Summary

New Concept Energy, Inc. reported its first-quarter 2024 results, showing net income applicable to common shares of $2,000, a decrease from $17,000 in the same period in 2023. Revenue for the quarter was $36,000, with $25,000 from rental income and $11,000 from management fees. The company's corporate general & administrative expenses increased to $78,000 compared to $68,000 in 2023. Interest income for the quarter was $57,000. New Concept Energy, Inc. is a Dallas-based company with real estate holdings in West Virginia and provides management services for an oil and gas company.

Positive

• Stable interest income of $57,000 for the first quarter of 2024.

• Ownership of real estate in West Virginia provides potential asset value.

• Continued provision of management services for an oil and gas company contributes to revenue.

Negative

• Decrease in net income applicable to common shares from $17,000 in Q1 2023 to $2,000 in Q1 2024.

• Reduction in total revenue from $45,000 in Q1 2023 to $36,000 in Q1 2024.

• Increased corporate general & administrative expenses to $78,000 from $68,000 in Q1 2023.

Insights

Financial Analyst

Examining New Concept Energy, Inc.'s first quarter 2024 financial results, a key takeaway is the decline in net income to $2,000 from $17,000 the previous year, a notable drop of over 88%. This decrease could signal underperformance or escalating expenses, which should be closely monitored. While the revenue has also decreased by 20% from $45,000 to $36,000, the consistency of rental income at $25,000 offers some stability in cash flow. However, the decrease in management fees from $20,000 to $11,000 suggests potentially diminished service demand or client base. Corporate general and administrative expenses have risen by 14.7%, which could indicate inefficiencies or increased investment in administrative infrastructure. The steady interest income growth from $52,000 to $57,000 may buffer some financial strain, but it's not enough to offset the operational loss. Additionally, there are no significant changes in total assets and liabilities & equity from the previous quarter, which suggests a relatively stable balance sheet. Investors should weigh the short-term operational challenges against the long-term prospects and stability shown in the balance sheet.

Market Research Analyst

From a market perspective, the performance of New Concept Energy suggests a potential reassessment of the company's market position might be warranted. The reduction in net income and total revenues, particularly the cut in management fees, could indicate a shift in industry dynamics or increased competition affecting the company's operations. For investors, understanding the broader market trends in real estate and management services for the oil and gas sector is crucial. The company's ability to maintain rental income could be seen as a positive indicator of asset quality, but the decrease in management fee revenue raises questions about their competitive advantage and scalability. It is essential to analyze these results alongside industry benchmarks and competitors' performance to gauge New Concept Energy's standing in the market. While current liabilities have decreased slightly, suggesting good short-term financial management, the underlying causes of reduced revenue streams need to be considered for long-term investment decisions.

DALLAS--(BUSINESS WIRE)-- New Concept Energy, Inc. (NYSE American: GBR), (the “Company” or “NCE”) a Dallas-based company, today reported Results of Operations for the first quarter ended March 31, 2024.

During the three months ended March 31, 2024, the Company reported net income applicable to common shares of $2,000, compared to net income of $17,000 for the three months ended March 31, 2023.

For the three months ended March 31,2024 the Company had revenue of $36,000 including $25,000 for rental income and $11,000 in management fees. Revenue for the three months ended March 31,2023 was $45,000.

For the three months ended March 31, 2024, corporate general & administrative expenses were $78,000 as compared to $68,000 for the comparable periods in 2023.

For the three months ended March 31, 2024 and 2023 interest income was $57,000 and $52,000.

About New Concept Energy, Inc.

New Concept Energy, Inc. is a Dallas-based company which owns real estate in West Virginia and provides management services for a third party oil and gas company. For more information, visit the Company’s website at www.newconceptenergy.com.

NEW CONCEPT ENERGY, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(amounts in thousands)
	March 31, 2024			December 31, 2023
Assets	(Unaudited)			(Audited)
Current assets
Cash and cash equivalents	$	395		$	447
Other current assets		61			12
Total current assets		456			459
Property and equipment, net of depreciation
Land, buildings and equipment		626			629
Note Receivable - Related Party		3,542			3,542
Total assets	$	4,624		$	4,630

NEW CONCEPT ENERGY, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS - CONTINUED
(dollars in thousands, except par value amount)
	March 31, 2024				December 31, 2023
	(Unaudited)				(Audited)
Liabilities and stockholders' equity
Current liabilities
Accounts payable - (including $8 due to related parties in 2024 and 2023)	$	25			$	36
Accrued expenses		42				39
Total current liabilities		67				75
Stockholders' equity
Preferred stock, Series B, $10 par value; authorized 100,000 shares, 1 issued and		1				1
outstanding at March 31, 2024 and December 31, 2023
Common stock, $.01 par value; authorized, 100,000,000
shares; issued and outstanding, 5,131,934 shares
at March 31, 2024 and December 31, 2023		51				51
Additional paid-in capital		63,579				63,579
Accumulated deficit		(59,074	)			(59,076	)
Total shareholders' equity		4,557				4,555
Total liabilities & equity	$	4,624			$	4,630

NEW CONCEPT ENERGY, INC AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
(amounts in thousands, except per share data)
	For the Three Months ended March 31,
		2024				2023
Revenue
Rent	$	25			$	25
Management fees		11				20
Total Revenues		36				45
Operating Expenses
Operating expenses		13				12
Corporate general and administrative		78				68
Total Operating Expenses		91				80
Operating loss		(55	)			(35	)
Other Income
Interest income from related parties		57				52
Total Other Income		57				52
Net Income applicable to common shares		2				17
Net income per common share-basic and diluted	$	0.01			$	0.01
Weighted average common and equivalent shares outstanding - basic and diluted		5,132				5,132

 

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New Concept Energy, Inc.

Gene Bertcher, (800) 400-6407

info@newconceptenergy.com

Source: New Concept Energy, Inc.

FAQ

What was New Concept Energy, Inc.'s net income for the first quarter of 2024?

New Concept Energy, Inc. reported a net income applicable to common shares of $2,000 for the first quarter of 2024.

Where is New Concept Energy, Inc. based?

New Concept Energy, Inc. is a Dallas-based company.

What were the total revenues for New Concept Energy, Inc. in the first quarter of 2024?

The total revenues for New Concept Energy, Inc. in the first quarter of 2024 were $36,000, including $25,000 from rental income and $11,000 from management fees.

What are the main services provided by New Concept Energy, Inc.?

New Concept Energy, Inc. provides management services for a third party oil and gas company.