New Concept Energy, Inc. Reports Second Quarter 2024 Results

Rhea-AI Summary

New Concept Energy (NYSE American: GBR) reported its Q2 2024 results, showing a net income of $3,000 compared to a net loss of $6,000 in Q2 2023. Revenue increased slightly to $37,000, including $25,000 from rental income and $12,000 in management fees. Corporate G&A expenses decreased to $78,000 from $81,000 year-over-year. Interest income rose to $56,000 from $54,000. The company's balance sheet as of June 30, 2024, showed total assets of $4.62 million, with $416,000 in cash and cash equivalents. NCE owns real estate in West Virginia and provides management services for a third-party oil and gas company.

Positive

• Net income improved from a $6,000 loss in Q2 2023 to a $3,000 profit in Q2 2024
• Revenue increased from $35,000 in Q2 2023 to $37,000 in Q2 2024
• Corporate general & administrative expenses decreased from $81,000 to $78,000 year-over-year
• Interest income rose from $54,000 to $56,000 compared to Q2 2023

Negative

• Rental income decreased slightly from $26,000 in Q2 2023 to $25,000 in Q2 2024
• Cash and cash equivalents decreased from $447,000 at the end of 2023 to $416,000 as of June 30, 2024

Insights

Financial Analyst

New Concept Energy's Q2 2024 results show a marginal improvement in profitability, with a $3,000 net income compared to a $6,000 loss in Q2 2023. However, the company's overall financial position remains relatively stagnant. Revenue increased slightly by $2,000, primarily due to higher management fees. The cost-cutting measures in corporate expenses, albeit minor, contributed to the positive bottom line.

The company's cash position has weakened slightly, decreasing from $447,000 to $416,000 over six months. The note receivable from a related party, at $3.54 million, remains unchanged and represents a significant portion of the company's assets. This concentration of assets in a single receivable poses a potential risk if the related party encounters financial difficulties.

Overall, while the company has managed to turn a small profit, its growth prospects appear . The minimal change in revenues and assets suggests that New Concept Energy is struggling to find new avenues for expansion in its current business model.

Real Estate Expert

New Concept Energy's real estate portfolio, primarily in West Virginia, shows minimal movement in value. The property and equipment net value decreased slightly from $629,000 to $622,000, indicating minimal investment in property improvements or new acquisitions. The stable rental income of $25,000 per quarter suggests the company is maintaining its current tenant base but not expanding its real estate operations.

The lack of growth in the property segment is concerning for a company with real estate as a core business. In a dynamic real estate market, stagnation can lead to missed opportunities and potential depreciation of assets. The company should consider strategies to diversify its real estate holdings or explore value-add opportunities within its existing portfolio to drive growth and increase shareholder value.

The management services provided to a third-party oil and gas company offer a supplementary revenue stream, but at $12,000 per quarter, it's not substantial enough to drive significant growth. The company might benefit from exploring opportunities to expand this service to additional clients in the energy sector.

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 second quarter ended June 30, 2024.

During the three months ended June 30, 2024, the Company reported a net income of $3,000 compared to a net loss of $6,000 for the similar period in 2023.

For the three months ended June 30, 2024 the Company had revenue of $37,000 including $25,000 for rental income and $12,000 in management fees. For the three months ended June 30, 2023 the Company had revenue of $35,00 including $26,000 for rental income and $9,000 in management fees.

For the three months ended June 30, 2024, corporate general & administrative expenses were $78,000 as compared to $81,000 for the comparable period in 2023.

For the three months ended June 30, 2024, interest income was $56,000 as compared to $54,000 for the comparable period in 2023.

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 SUBSIDIARY
CONDENSED CONSOLIDATED BALANCE SHEETS
(amounts in thousands)
		June 30, 2024				December 31, 2023
		(Unaudited)				(Audited)
Assets
Current assets
Cash and cash equivalents		$	416			$	447
Other current assets			40				12
Total current assets		$	456			$	459
Property and equipment, net of depreciation
Land, buildings and equipment			622				629
Note receivable - related party			3,542				3,542
Total assets		$	4,620			$	4,630

NEW CONCEPT ENERGY, INC. AND SUBSIDIARY
CONDENSED CONSOLIDATED BALANCE SHEETS - CONTINUED
(dollars in thousands, except par value amount)
		June 30, 2024				December 31, 2023
		(Unaudited)				(Audited)
Liabilities and stockholders' equity
Current liabilities
Accounts payable		$	21			$	36
Accrued expenses			39				39
Total current liabilities			60				75
Stockholders' equity
Preferred stock, Series B, $10 par value; authorized 100,000 shares, 1 issued and outstanding at June 30, 2024 and December 31, 2023			1				1
Common stock, $.01 par value; authorized, 100,000,000 shares; issued and outstanding, 5,131,934 shares at June 30, 2024 and December 31, 2023			51				51
Additional paid-in capital			63,579				63,579
Accumulated deficit			(59,071	)			(59,076	)
Total shareholders' equity			4,560				4,555
Total liabilities & equity		$	4,620			$	4,630

NEW CONCEPT ENERGY, INC AND SUBSIDIARY
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(amounts in thousands, except per share data)
		For the Three Months ended June 30,								For the Six Months ended June 30,
			2024				2023				2024				2023
Revenue
Rent		$	25			$	26			$	50			$	51
Management Fee			12				9				23				29
Total Revenues			37				35				73				80
Operating Expenses
Operating Expenses			12				14				25				26
Corporate general and administrative			78				81				156				149
Total Operating Expenses			90				95				181				175
Operating loss			(53	)			(60	)			(108	)			(95	)
Other Income
Interest income from related parties			56				54				113				106
Total Other Income			56				54				113				106
Net income (loss) applicable to common shares		$	3			$	(6	)		$	5			$	11
Net income (loss) per common share-basic and diluted		$	0.01			$	(0.01	)		$	0.01			$	0.01
Weighted average common and equivalent shares outstanding - basic and diluted			5,132				5,132				5,132				5,132

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20240814051487/en/

New Concept Energy, Inc.

Gene Bertcher, (800) 400-6407

info@newconceptenergy.com

Source: New Concept Energy, Inc.

FAQ

What was New Concept Energy's (GBR) net income for Q2 2024?

New Concept Energy (GBR) reported a net income of $3,000 for Q2 2024, compared to a net loss of $6,000 in Q2 2023.

How much revenue did New Concept Energy (GBR) generate in Q2 2024?

New Concept Energy (GBR) generated total revenue of $37,000 in Q2 2024, including $25,000 from rental income and $12,000 in management fees.

What were New Concept Energy's (GBR) corporate general & administrative expenses in Q2 2024?

New Concept Energy's (GBR) corporate general & administrative expenses were $78,000 in Q2 2024, down from $81,000 in Q2 2023.

How much interest income did New Concept Energy (GBR) earn in Q2 2024?

New Concept Energy (GBR) earned $56,000 in interest income during Q2 2024, compared to $54,000 in the same period of 2023.