American Resources Offshore, Inc. Announces Second Quarter 1999 Results of Operations.VERSAILLES, Ky.--(BUSINESS WIRE)--Aug. 24, 1999-- American Resources Offshore, Inc. (OTC OTC See: Over-the-counter. OTC See over-the-counter market (OTC). :GASS GASS Greenland Air Surveillance System GASS Gas Analyzing Sensor System GASS Guidance Accuracy Study for SPRINT GASS Google AdSense Stats Syndrome GASS Generic Application Simulation System (Boeing Rotocraft) )("ARO") today announced results of operations for its second quarter ended June 30, 1999. Financial highlights were as follows: Gross revenues for the second quarter of 1999 decreased 40% to $6.5 million from the $10.8 million reported for the same period in 1998. ARO-owned production revenues decreased 65% to $2.9 million as compared with $8.5 million for the second quarter of 1998, due primarily to a decrease in oil and gas production volumes, a decrease in gas prices and a loss on ARO's hedging contracts amounting to approximately $607,000. Operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. was a loss of ($842,000) for the second quarter of 1999 after having been a loss of ($2.2 million) for the same period in 1998. The improved operating income for the period was the result of: a) impairment Impairment 1. A reduction in a company's stated capital. 2. The total capital that is less than the par value of the company's capital stock. Notes: 1. This is usually reduced because of poorly estimated losses or gains. 2. of assets of $0 as compared with $2.2 million for the same period in 1998; b) exploration costs of $315,000 compared with $1.8 million for the second quarter of the previous year; c) a 43% decrease in depreciation, depletion depletion n. when a natural resource (particularly oil) is being used up. The annual amount of depletion may, ironically, provide a tax deduction for the company exploiting the resource because if the resource they are exploiting runs out, they will no longer be able and amortization expense to $2.9 million compared with $5 million for the second quarter of 1998 primarily as a result of the impairment of assets recognized as of December 31, 1998. Operating income was negatively impacted by a 38% increase in administrative expense to $1.1 million compared with $819,000 for the second quarter of 1998, primarily due to a significant increase in legal and professional fees and travel expenses resulting from ARO's involvement in several litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. matters and the cost associated with additional staff in the Louisiana office. As a result of the above, ARO reports a net loss of ($3.4 million) as compared with a loss of ($2.5 million) for the second quarter of 1998. The attendant loss per share (diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. ) for the second quarter of 1999 was ($0.32) on 11,062,000 shares as compared with a loss per share for the same period in 1998 of ($0.25) on 10,023,000 shares. During the quarter ended June 30, 1999, ARO produced 1.8 billion cubic feet of gas equivalent (bcfe) for average daily production of 19.5 million cubic feet of gas equivalent (mmcfe), compared with total production of 3.7 bcfe and average daily production of 41 mmcfe during the second quarter of 1998. As of June 30, 1999, ARO had current liabilities Current Liabilities Usually appearing on a company's balance sheet, it represents the amount owed for interest, accounts payable, short-term loans, expenses incurred but unpaid, and other debts due within one year. in excess of current assets Current Assets Appearing on a company's balance sheet, it represents cash, accounts receivable, inventory, marketable securities, prepaid expenses, and other assets that can be converted to cash within one year. (excluding the current portion of long-term debt Current Portion Of Long-Term Debt A portion of the balance sheet that represents the total amount of long-term debt that must be paid within the next year. The balance sheet has a liability section, which is broken down into long-term and current debt. ) of approximately $6.3 million, was in default under its primary credit facility and bridge loans with DNB DNB Dictionary of National Biography DNB Drum N Bass (music) DNB De Nederlandsche Bank DNB Dun & Bradstreet (stock symbol) DNB Den Norske Bank DNB David Nelson Band Energy Assets, Inc. ("DNB"), of approximately $48 million and $15.6 million, respectively, was in default under its $18.5 million loan with TECO (Text Editor and COrrector) A text editor written in 1963 by Dan Murphy at MIT for editing paper tape on a Digital PDP-1 computer (it was originally called "Tape Editor and Corrector"). and has immediate needs with regard to its capital expenditure budget. ARO has reached an agreement in principle for the divestiture The breakup of AT&T. By federal court order, AT&T divested itself on January 1, 1984 of its 23 operating companies, which became known as the Regional Bell Operating Companies (RBOCs). of its Appalachian properties to a third party in exchange for the assumption of $12.5 million of indebtedness from DNB; and on August 3, 1999, ARO executed a Purchase and Sale Agreement for the divestiture of 80% of its Gulf of Mexico Noun 1. Gulf of Mexico - an arm of the Atlantic to the south of the United States and to the east of Mexico Golfo de Mexico Atlantic, Atlantic Ocean - the 2nd largest ocean; separates North and South America on the west from Europe and Africa on the east properties to Fidelity Oil Holdings, Inc. and an Investment Agreement for the sale of a 75% ownership interest in ARO through the issuance of new shares of common stock to Blue Dolphin Blue Dolphin may refer to:
EARNINGS RECAP:
Quarter Ended
June 30
(Thousands)
1999 1998
---- ----
Revenue $6,463 $10,833
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Net income (loss) attributable
to common shares $(3,444) $(2,541)
======= =======
Net income (loss) per share (diluted) $(0.32) ($0.25)
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Weighted average number of common
shares outstanding and dilutive
potential common shares 11,062 10,023
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American Resources Offshore, Inc. is a fully integrated producer of oil and gas. ARO owns pipelines and production located primarily in the Gulf Coast region. For information, contact ARO's Investor Relations Investor relations The process by which the corporation communicates with its investors. Department at 606/873-5455, or visit our website at www.arisgc.com. -0-
AMERICAN RESOURCES OFFSHORE, INC.
AND SUBSIDIARY
CONDENSED, CONSOLIDATED STATEMENT OF OPERATIONS
Quarter Ended
June 30
-------
(Dollars in thousands
except per share data)
1999 1998
---- ----
Revenues $6,463 $10,833
====== =======
Income (loss) from
operations $(842) $(2,159)
Other income (expense) $(2,602) $(2,154)
Income tax benefit - $ 1,801
Preferred dividends $(-) $(29)
Net income (loss) $(3,444) $(2,541)
======== ========
EARNINGS PER SHARE:
Diluted:
Income (loss) from
operations $(0.08) $(0.22)
Other income (expense) $(0.24) $(0.21)
Income tax benefit - $0.18
------- -------
Net income (loss) $(0.32) $(0.25)
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