New Concept Energy, Inc. Reports Third Quarter 2024 Results

Rhea-AI Summary

New Concept Energy (NYSE American: GBR) reported Q3 2024 financial results with a net loss of ($4,000), compared to net income of $7,000 in Q3 2023. Total revenue increased slightly to $37,000, including $26,000 from rental revenue and $11,000 from management fees. Corporate G&A expenses rose to $79,000 from $70,000 year-over-year, while interest income decreased to $52,000 from $57,000. The company's balance sheet shows total assets of $4.617 million, including $430,000 in cash and cash equivalents, and a note receivable from a related party of $3.542 million.

Positive

• Slight revenue increase to $37,000 in Q3 2024 from $35,000 in Q3 2023
• Stable balance sheet with $4.617 million in total assets

Negative

• Net loss of $4,000 in Q3 2024 compared to net income of $7,000 in Q3 2023
• Corporate G&A expenses increased 12.9% to $79,000
• Interest income declined to $52,000 from $57,000 year-over-year

Insights

Financial Analyst

The Q3 2024 results reveal concerning trends for New Concept Energy. Revenue growth was minimal at $37,000, up just $2,000 from Q3 2023. More worrying is the shift from a $7,000 profit to a $4,000 loss, primarily due to increased corporate expenses. The company's cash position declined to $430,000 from $447,000 at year-end 2023.

The balance sheet shows growth potential with static assets and minimal operational activity. The $3.54M related-party note receivable represents 76.7% of total assets, making the company heavily dependent on this single financial instrument. With operating losses widening and interest income declining, the current business model appears unsustainable without significant strategic changes.

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, 2024.

The Company reported a net loss of ($4,000) for the three months ended September 30, 2024, as compared to net income of $7,000 for the similar period in 2023.

For the three months ended September 30, 2024 the Company had revenue of $37,000 including $26,000 for rental revenue and $11,000 for management fees as compared to revenue of $35,000 including $25,000 for rental revenue and $10,000 for management fees for the comparative period in 2023.

For the three months ended September 30, 2024, corporate general & administrative expenses were $79,000 as compared to $70,000 for the comparable periods in 2023.

For the three months ended September 30, 2024, interest income was $52,000 as compared to $57,000 for the comparable periods 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)
		September 30, 2024				December 31, 2023
		(Unaudited)				(Audited)
Assets
Current assets
Cash and cash equivalents		$	430			$	447
Other current assets			26				12
Total current assets			456				459
Property and equipment, net of depreciation
Land, buildings and equipment			619				629
Note receivable - related party			3,542				3,542
Total assets		$	4,617			$	4,630

NEW CONCEPT ENERGY, INC. AND SUBSIDIARY
CONDENSED CONSOLIDATED BALANCE SHEETS - CONTINUED
(dollars in thousands, except par value amount)
		September 30, 2024				December 31, 2023
		(Unaudited)				(Audited)
Liabilities and stockholders' equity
Current liabilities
Accounts payable		$	22			$	36
Accrued expenses			39				39
Total current liabilities			61				75
Stockholders' equity
Preferred stock, Series B, $10 par value; authorized 100,000 shares, 1 issued and			1				1
outstanding at September 30, 2024 and December 31, 2023
Common stock, $.01 par value; authorized, 100,000,000
shares; issued and outstanding, 5,131,934 shares
at September 30, 2024 and December 31, 2023			51				51
Additional paid-in capital			63,579				63,579
Accumulated deficit			(59,075	)			(59,076	)
Total stockholders' equity			4,556				4,555
Total liabilities & equity		$	4,617			$	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 September 30,								For the Nine Months ended September 30,
	2024				2023				2024				2023
Revenue
Rent	$	26			$	25			$	76			$	76
Management Fee		11				10				34				39
Total Revenues		37				35				110				115
Operating Expenses
Operating Expenses		14				15				39				41
Corporate general and administrative		79				70				235				219
Total Operating Expenses		93				85				274				260
Operating loss		(56	)			(50	)			(164	)			(145	)
Other Income
Interest income from related parties		50				53				160				158
Interest income from a third party		2				4				5				5
Total Other Income		52				57				165				163
Net income (loss) applicable to common shares	$	(4	)		$	7			$	1			$	18
Net income (loss) per common share-basic and diluted	$	(0.01	)		$	0.01			$	0.01			$	0.03
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/20241113616375/en/

New Concept Energy Inc.

Investor Relations

Gene Bertcher, (800) 400-6407

info@newconceptenergy.com

Source: New Concept Energy, Inc.

FAQ

What was New Concept Energy's (GBR) net income for Q3 2024?

New Concept Energy reported a net loss of ($4,000) for Q3 2024, compared to a net income of $7,000 in Q3 2023.

How much revenue did GBR generate in Q3 2024?

GBR generated total revenue of $37,000 in Q3 2024, consisting of $26,000 in rental revenue and $11,000 in management fees.

What are New Concept Energy's (GBR) total assets as of September 30, 2024?

As of September 30, 2024, GBR's total assets were $4.617 million, including $430,000 in cash and cash equivalents.