American Resources of Delaware announces year-end results of operations.VERSAILLES Versailles (vərsī`, Fr. vĕrsī`), city (1990 pop. 91,029), capital of Yvelines dept., N central France. It was an insignificant village made famous by Louis XIV, who built (mid-17th cent. , Ky.--(BUSINESS WIRE)--March 17, 1997--American Resources of Delaware Delaware, state, United States Delaware (dĕl`əwâr, –wər), one of the Middle Atlantic states of the United States, the country's second smallest state (after Rhode Island). Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on Small Cap: 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) ) (the "company") today announced results of operations for its fiscal year ended Dec. 31, 1996. Revenue for fiscal 1996 increased 92 percent to $33,039,173, up from $17,214,299 for the comparable period in 1995. 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. in 1996 was $3,211,826, compared with a loss of ($1,060,265) in 1995. Net income for the year ended Dec. 31, 1996 was $911,755 or $0.14 per share compared with $266,163 or $0.07 per share for 1995. Company-owned production revenues increased 167 percent in 1996 to $8,540,569 from $3,198,987 in 1995. More than 45 percent of the production revenues were recognized in the fourth quarter, primarily as a result of the company's increased production in the Gulf Coast region for the last 45 days of the quarter. Volumetrically vol·u·met·ric adj. Of or relating to measurement by volume. [volu(me) + -metric.] vol , production increased to 3.3 billion cubic feet (bcf) equivalent compared with 1.4 bcf equivalent in 1995. At year-end year-end also year·end n. The end of a year. adj. Occurring or done at the end of the year: a year-end audit. Noun 1. 1996 and 1995, the company's present value of future cash flow (discounted 10 percent) from proved reserves proved reserves The quantity of minerals expected to be recoverable under current economic and operating conditions. The amount of proved reserves is important in valuing the stock of a company with significant holdings in natural resources. , as calculated by independent petroleum engineering firms, increased more than 103 percent as follows: -0-
Gulf Coast (1) Kentucky (2) Michigan (3) Total (4)
1996 $41,678,600 $16,972,496 $ 1,298,910 $59,950,006
1995 $10,728,200 $17,327,392 $ 1,392,500 $29,448,092
(1) Calculated by Netherland, Sewell & Associates, International
Petroleum Consultants
(2) Calculated by Richard M. Russell & Associates, Nashville, Tenn.
(3) Calculated by McConnell Consulting Inc., Traverse City, Mich.
(4) Unaudited
EARNINGS RECAP:
Quarter Ended Year Ended
December 31, December 31,
1996 1995 1996 1995
Revenue $11,033,666 $ 5,905,612 $33,039,173 $17,214,299
Net income $ 364,512 $(1,549,419) $ 911,755 $ 266,153
Net income per
share $ 0.05 $ (0.30) $ 0.14 $ 0.07
Primary weighted
average shares
outstanding 7,728,561 5,113,883 6,548,409 4,067,677
OTHER FINANCIAL DATA:
EBITDA/a $ 3,126,821 $ (131,092) $ 7,411,093 $ 4,512,974
EBITDA per share $ 0.40 $ (0.03) $ 1.13 $ 1.11
a: EBITDA is earnings before interest, taxes, depreciation and
amortization. EBITDA is presented because it is a widely accepted
financial indication of a company's ability to service and incur
debt. EBITDA should not be considered as an alternative to earnings
(loss) as an indicator of the company's operating performance or to
cash flow as a measure of liquidity.
Other significant results were: Assets increased to $64.8 MM in 1996, up from $44.2MM in 1995. Stockholders' equity Stockholders' Equity The portion of the balance sheet that includes capital received from investors in exchange for stock (paid-in capital), donated capital, and retained earnings. This is equal to total assets minus liabilities, preferred stock and intangible assets. increased to $26.1MM in 1996, up from $18.7MM in 1995. As a percentage of total revenue less related marketing expenses, G&A expense was 22 percent in 1996 vs. 44 percent in 1995. Rick G. Avare, president and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. , stated, "Management is very pleased with the year-end results, particularly in light of the large investments which were made during the year to expand the company's holdings in the Gulf. These investment decisions were validated val·i·date tr.v. val·i·dat·ed, val·i·dat·ing, val·i·dates 1. To declare or make legally valid. 2. To mark with an indication of official sanction. 3. by the year-end Gulf Coast reserve analysis which reflects a 400% increase." Avare further added, "Since the recently acquired and developed Gulf properties on South Timbalier were not fully operative OPERATIVE. A workman; one employed to perform labor for another. 2. This word is used in the bankrupt law of 19th August, 1841, s. 5, which directs that any person who shall have performed any labor as an operative in the service of any bankrupt shall be until mid-November n. 1. the middle part of November. Noun 1. mid-November - the middle part of November period, period of time, time period - an amount of time; "a time period of 30 years"; "hastened the period of time of his recovery"; "Picasso's blue of 1996, we are looking forward to the results for the first quarter of 1997 which should more accurately reflect the positive effect the increased production will have on our earnings. It is also notable that American Resources currently enjoys a more diverse and significantly increased inventory of drilling prospects than at any other time in its history." American Resources of Delaware Inc. is a fully integrated producer of oil and gas. The Company owns and operates pipelines, produces and markets gas to commercial and industrial end users as well as certain utilities in the Eastern United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. , and owns a major interest in an offshore turn-key drilling company. For information, contact Chris Zafiroff of Corporate Relations Group at 800/444-4980, or the company's investor relations Investor relations The process by which the corporation communicates with its investors. department at 606/873-5455. -0-
American Resources of Delaware, Inc.
And Subsidiary
Condensed, Consolidated Statement of Operations
Quarter Ended Year Ended
December 31, December 31,
1996 1995 1996 1995
Revenues $11,033,666 $5,905,612 $33,039,173 $17,214,299
Income (loss)
from operations $1,464,384 $(1,732,600)/b $3,211,826 $(1,060,265)/b
Other income
(expense) $(803,522) $(752,707) $(1,661,131) $1,469,731
Income taxes $(296,350) $935,878 $(638,940)/c $(143,313)
Net Income $ 364,512 $(1,549,429) $ 911,755 $ 266,153
Quarter Ended Year Ended
December 31, December 31,
1996 1995 1996 1995
Earnings per share:
Primary:
Income (loss) from
operations $0.19 $(0.34)/b $0.49 $(0.26)/b
Other income
(expense) $(0.10) $(0.15) $(0.25) $0.36
Income taxes $(0.04) $0.18 $(0.10) $(0.03)
Net income per
common share
equivalent $0.05 $(0.30) $0.14 $0.07
b: Includes one-time charge of $1,488,259 for termination of
certain contracts and accruals of executive severance obligation,
a $(0.37) pretax effect on earnings per share from operations.
c: $613,281 is deferred.
CONTACT: American Resources of Delaware Inc., Versailles Investor Relations, 606/873-5455 or Corporate Relations Group Chris Zafiroff, 800/444-4980 |
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