Boston, MA 08/14/2014 (wallstreetpr) – New Concept Energy, Inc. (NYSEMKT:GBR) posted the net loss of $0.05 per share as compared to the net income of $0.07 per share. The net loss came at $99,000 comparable to net income of $138,000 in 2Q2013. The net income of prior-year quarter included the recovery of bad debt expenses amounting to $394,000. It was an overall disappointment coming from all the segments. The poor performance was seen in the net loss as well in the higher expenses in the second-quarter.
The Financial Figures
New Concept Energy, Inc. (NYSEMKT:GBR) reported the operating expenses at $338,000 comparable to $431,000 in 2013. It was inclusive of the depreciation, non-cash depletion and amortization expenses. The net of royalty expenses came at $485,000 comparable to $384,000 in the prior-year quarter. The oil and gas revenues were affected by the new oil wells drilled in late 2013. The revenues came at $728,000 from its retirement property comparable to $666,000 in 2Q2013.The higher revenues were a result of increased rates in the quarter.
The Expenses
New Concept reported the oil and gas operating expenses at $425,000 comparable to $493,000 in 2Q2013. The lower expenses were a result of the lower depletion expenses. There was a decrease of $55,000 in the depletion expenses. The operating expenses from the retirement property came at $628,000 comparable to $619,000 in 2Q2013. The slight increase in operating expenses was a result of higher non-payroll related expenses.
The corporate G&A expenses came at $205,000 comparable to $170,000 in 2Q2013. The significant rise in the corporate G&A expenses was a result of higher consulting fees paid in the efforts made for identifying the new oil and gas opportunities. The consulting fees of $36,000 was paid to assist New Concept Energy, Inc. (NYSEMKT:GBR) in its operations.The performance can stay at lower side in the coming quarters. At this time, it is better for the investors to stay away from the stock.
