New Concept Energy, Inc. Reports Fourth Quarter and Full Year 2020 Results

Rhea-AI Summary

New Concept Energy, Inc. (NYSE American: GBR) reported its fourth quarter and full-year results for 2020. The company recorded a gain of $2.1 million from the sale of its oil and gas operation, despite a net loss of $170,000 from discontinued operations compared to $2.4 million in 2019. Continuing operations saw a net loss of $32,000 in Q4 and $52,000 for the year, down from a profit of $60,000 in 2019. Revenues from real estate rentals slightly increased to $101,000, while general and administrative expenses decreased. The company holds total assets of $4.6 million as of December 31, 2020.

Positive

• Gain of $2.1 million from the sale of oil and gas operation.
• Decrease in net loss from discontinued operations, down from $2.4 million in 2019.

Negative

• Net loss from continuing operations of $52,000, compared to a net income of $60,000 in 2019.
• Operating expenses for real estate increased to $72,000 in 2020 from $61,000 in 2019.

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

FAQ

What were the financial results of New Concept Energy, Inc. for 2020?

New Concept Energy reported a net loss from discontinued operations of $170,000 and a net loss from continuing operations of $52,000 for the year 2020.

How much did New Concept Energy gain from the sale of its oil and gas operation?

The company recorded a gain of $2.1 million from the sale of its oil and gas operation.

What was the total revenue from rent for New Concept Energy in 2020?

Total revenues from rent for the leased property were $101,000 in 2020.

How did general and administrative expenses change for New Concept Energy in 2020?

General and administrative expenses decreased to $396,000 in 2020 from $418,000 in 2019.

What is the asset value of New Concept Energy as of December 31, 2020?

The total asset value of New Concept Energy as of December 31, 2020, is $4.6 million.