New Concept Energy, Inc. Reports Third Quarter 2021 Results

Rhea-AI Summary

New Concept Energy, Inc. (NYSE American: GBR) reported a net loss of $8,000 for Q3 2021, a stark contrast to a net income of $82,000 in Q3 2020. Rental revenue remained stable at $25,000 for both periods. Although corporate general and administrative expenses decreased to $53,000 from $65,000, the absence of other income and a previous gain of $2,100,000 from discontinued operations significantly impacted the results. As of September 30, 2021, total assets were $4,530,000 with total liabilities at $85,000.

Positive

• Corporate general and administrative expenses decreased from $65,000 to $53,000.
• Total assets remained relatively stable at $4,530,000 compared to $4,611,000 in the previous year.

Negative

• Net loss from continuing operations of $8,000 compared to net income of $82,000 in the same quarter last year.
• Significant drop in total earnings attributable to common shares, down from $2,182,000 to $8,000.

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 third quarter ended September 30, 2021.

The Company reported net loss from continuing operations of $8,000 for three months ended September 30, 2021, as compared to net income of $82,000 for the similar period in 2020.

For the three months ended September 30, 2021 and 2020, the Company recorded rental revenue of $25,000.

For the three months ended September 30, 2021, corporate general & administrative expenses were $53,000 as compared to $65,000 for the comparable periods in 2020.

For the three months ended September 30, 2020 the Company reported other income of $83,000 which represents a tax refund for taxes paid in prior years.

For the three months ended September 30, 2020 the Company recorded a gain from discontinued operation of $2,100,000. Included in 2020 is a gain from the sale of the oil and gas business of $2,138,000.

NEW CONCEPT ENERGY, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(unaudited)
(amounts in thousands)
		September 30, 2021			December 31, 2020
Assets
Current assets
Cash and cash equivalents		$	249		$	27
Current portion note receivable (including $3,637 and $3,631 in 2021 and 2020 from related parties			3,596			3,683
Other current assets			38			92
Total current assets		$	3,883		$	3,802
Property and equipment, net of depreciation
Land, buildings and equipment			647			656
Note receivable			-			153
Total assets		$	4,530		$	4,611

NEW CONCEPT ENERGY, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS - CONTINUED
(unaudited)
(dollars in thousands, except par value amount)
	September 30, 2021				December 31, 2020
Liabilities and stockholders' equity
Current liabilities
Accounts payable - (including $33 and $55 due to related parties in 2021 and 2020)	$	66			$	80
Accrued expenses		19				32
Current portion of long term debt		-				52
Total current liabilities		85				164
Long-term debt
Notes payable less current portion		-				122
Total liabilities		85				286
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, 2021 and December 31, 2020		51				51
Additional paid-in capital		63,579				63,579
Accumulated deficit		(59,186	)			(59,306	)
Total shareholder equity		4,445				4,325
Total liabilities & equity	$	4,530			$	4,611

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,
	2021				2020				2021				2020
Revenue
Rent	$	25			$	25			$	76			$	76
Operating expenses
Operating Expenses		34				15				71				46
Corporate general and administrative		53				65				238				296
Total operating expenses		87				80				309				342
Operating earnings (loss)		(62	)			(55	)			(233	)			(266	)
Other income (expense)
Interest income from a related party		53				54				159				172
Interest income from a third party		2				3				8				12
Interest expense		(1	)			(3	)			(5	)			(9	)
Other income (expense), net		-				83				191				83
		54				137				353				258
Earnings (loss) from continuing operations	$	(8	)		$	82			$	120			$	(8	)
Discontinued Operations
Loss from discontinued operations		-				(38	)			-				(182	)
Gain from disposal of oil & gas operations		-				2,138				-				2,138
		-				2,100				-				1,956
Earnings (loss) applicable to common shares	$	(8	)		$	2,182			$	120				1,948
Net income (loss) per common share-basic and diluted	$	0.01			$	0.43			$	0.02			$	0.38
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/20211110006396/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 net loss for Q3 2021?

New Concept Energy reported a net loss of $8,000 for Q3 2021.

How did rental revenue perform for New Concept Energy in Q3 2021?

Rental revenue remained stable at $25,000 for both Q3 2021 and 2020.

What were the corporate expenses for New Concept Energy in Q3 2021?

Corporate general and administrative expenses were $53,000 for Q3 2021.

What impact did discontinued operations have on New Concept Energy's financials?

New Concept Energy did not report any gains from discontinued operations in Q3 2021, contrasting with a $2,100,000 gain in Q3 2020.

How did New Concept Energy's total assets change from 2020 to 2021?

Total assets decreased slightly from $4,611,000 in December 2020 to $4,530,000 in September 2021.