HOUSTON, Nov. 16, 2004 (PRIMEZONE) -- CAPCO Energy, Inc. (OTCBB:CGYN) today announced results of operations for the third quarter ended September 30, 2004.
The Company had gross sales and a loss from continuing operations, consisting principally of oil and gas production activities, of $1.1 million and $195,000, respectively, for the third quarter of 2004. For the comparable period of 2003, the Company reported gross sales of $819,000 and income from continuing operations of $153,000.
For the nine month period ended September 30, 2004, the Company reported gross sales of $3.7 million versus $2.4 million for the same period of 2003. Income from continuing operations decreased from $158,000 for the nine months ended September 30, 2003, to $47,000 for the nine months ended September 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. Revenues from the acquired properties totaled $466,000 and $1.7 million for the three and nine month periods ended September 30, 2004, respectively.
Operations from the Company's petroleum products distribution activities, reported as discontinued operations, resulted in losses of $305,000 and $1.3 million for the three and nine month periods ended September 30, 2003, respectively. The Company divested of the discontinued business interests effective September 30, 2003, and recorded a loss on the disposal of $730,000 in the third quarter of 2003.
Ilyas Chaudhary, CEO of CAPCO, said, "The reported operating results from our oil and gas production activities for the third quarter of 2004 were affected by interruptions to our Texas Gulf Coast production as we continued our workover program on wells in that area. Some of this work experienced delays due to inclement weather caused by Hurricane Ivan. Our production volumes from this area decreased 18% from the previous quarter. However, now that this phase of our workover program is completed production levels have increased significantly and will contribute to future results of operations, beginning in the fourth quarter of 2004. In addition, the loss for the current quarter includes certain non-recurring general and administrative expenses and other expenses of approximately $190,000. We anticipate a significant improvement in our results of operations, beginning as soon as the fourth quarter of 2004."
Statements of Operations Summary
Three and Nine Month Periods Ended September 30, 2004 and 2003
(Dollars in thousands, except per share data)
Three Months Ended Nine Months Ended
September 30, September 30,
2004 2003 2004 2003
---- ---- ---- ----
Sales $ 1,145 $ 819 $ 3,702 $ 2,354
Gross profit 512 484 1,788 1,254
(Loss) income
from continuing
operations (195) 153 47 158
Loss from
discontinued
operations -- (305) -- (1,264)
Loss on disposal
of discontinued
operations -- (730) -- (730)
Net (loss)
income (195) (882) 47 (1,852)
Earnings (loss)
per share-basic:
Continuing
operations $ 0.00 $ 0.00 $ 0.00 $ 0.00
Net income
(loss) $ 0.00 $(0.01) $ 0.00 $ (0.02)
Weighted average
common share
and common share
equivalents-
basic 95,363,332 77,091,108 95,101,333 77,098,876
Balance Sheet Summary
September 30, 2004
(Dollars in thousands)
Current assets $ 855
Oil and gas property, full
cost pool method 12,061
Assets attributable to
businesses sold under contract 4,013
Other assets 1,139
Total assets $ 18,068
Current liabilities $ 3,813
Long-term debt and liabilities 5,763
Liabilities attributable to
businesses sold under contract 4,346
Deferred tax liability 27
Total stockholders' equity 4,119
Total liabilities and
stockholders' equity $ 18,068
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.