HOUSTON, Aug. 23, 2004 (PRIMEZONE) -- CAPCO Energy, Inc. (OTCBB:CGYN), today announced increased revenues and profits from continuing operations for the second quarter ended June 30, 2004.
The Company had gross sales and income from continuing operations, consisting principally of oil and gas production activities, of $1.2 million and $154,000, respectively, for the second quarter of 2004. For the comparable period of 2003, the Company reported gross sales of $846,000 and income from continuing operations of $58,000.
For the six month period ended June 30, 2004, the Company reported gross sales of $2.6 million versus $1.5 million for the same period of 2003. Income from continuing operations increased from $5,000 for the six months ended June 30, 2003, to $242,000 for the six months ended June 30, 2004.
Property acquisitions in Montana and the Texas Gulf Coast that closed in the fourth quarter of 2003 were primarily responsible for the increases in revenue and profitability. Revenues from the acquired properties totaled $518,000 and $1.2 million for the three and six month periods ended June 30, 2004, respectively.
Operations from the Company's petroleum products distribution activities, reported as discontinued operations, resulted in losses of $(442,000) and $(959,000) for the three and six month periods ended June 30, 2003, respectively. The Company divested of the discontinued business interests effective September 30, 2003.
Ilyas Chaudhary, CEO of CAPCO, said, "The reported operating results from our oil and gas production activities mark the fifth consecutive quarter of reporting operating income. Our acquisitions in Montana and the Texas Gulf Coast continue to make significant contributions to the increases in revenue, profitability and cash flow."
Statements of Operations Summary
Three and Six Month Periods Ended June 30, 2004 and 2003
(Dollars in thousands, except per share data)
Three Months Ended Six Months Ended
June 30, June 30,
2004 2003 2004 2003
------ ------ ------ ------
Sales $ 1,193 $ 846 $ 2,557 $ 1,535
Gross profit 614 491 1,276 770
Income from
continuing
operations 154 58 242 5
Loss from
discontinued
operations -- (442) -- (959)
Net income
(loss) 154 (384) 242 (954)
Earnings
(loss) per
share-basic:
Continuing
operations $ 0.00 $ 0.00 $ 0.00 $ 0.00
Net income
(loss) $ 0.00 $ (0.01) $ 0.00 $ (0.01)
Weighted
average
common share
and common
share
equivalents-
basic 95,082,059 77,090,536 94,968,894 77,102,824
Balance Sheet Summary
June 30, 2004
(Dollars in thousands)
Current assets $ 988
Oil and gas property, full cost
pool method 10,564
Assets attributable to
businesses sold under contract 4,013
Other assets 1,638
Total assets $17,203
Current liabilities $ 2,799
Long-term debt and liabilities 5,381
Liabilities attributable to
businesses sold under contract 4,346
Deferred tax liability 501
Total stockholders' equity 4,176
Total liabilities and
stockholders' equity $17,203
For further information please contact Brenda@capcoenergy.com or visit CAPCO's website at www.capcoenergy.com.
Safe Harbor Statement under the Private Securities Litigation reform Act: Statements in this release looking forward in time involve risks and uncertainties discussed here and in the company's filings with the Securities and Exchange Commission, including uncertainty regarding future revenue and integration. This and other risks are identified in our SEC filings and should be considered in evaluating the forward-looking statements made herein. These risks could cause actual financial results to vary from those anticipated.