Castle Energy Announces First Quarter Results for Fiscal 2003.Business Editors RADNOR Radnor may refer to:
Castle Energy Corporation(a) (Nasdaq:CECX) (the "Company") announced today its results for the first quarter fiscal 2003. For the three months ended December 31 2002, the Company earned net income of $245,000 ($.04 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. ) versus a loss of $272,000 ($.04 per share diluted) for the corresponding three month period ended December 31, 2001. Mr. Joseph L. Castle II, Chairman and Chief Executive Officer, noted that the Company had sold all of its domestic oil and gas properties to Delta Petroleum Corporation ("Delta") on May 31, 2002 and all of its interests in several Romanian concessions to the operator of those concessions in September of 2002. As a result of these sales, the Company had no operating revenue operating revenue Revenue from any regular source. Revenue from sales is adjusted for discounts and returns when calculating operating revenue. Compare other revenue. for the quarter ended December 31, 2002. Mr. Castle attributed the net income earned by the Company for the quarter primarily to the excess of three sources of accounting income over the Company's general and administrative expenses. Such accounting income consisted of income derived from a $198,000 decrease in the fair market value of an option the Company granted to Delta to reacquire shares of its own stock now held by the Company, a $428,000 tax benefit and $188,000 of equity in the earnings of Delta. The Company currently owns 44% of Delta and three of its directors are also Delta directors. Mr. Castle also reported that a number of shareholders of the Company had recommended that the Company be liquidated DAMAGES, LIQUIDATED, contracts. When the parties to a contract stipulate for the payment of a certain sum, as a satisfaction fixed and agreed upon by them, for the not doing of certain things particularly mentioned in the agreement, the sum so fixed upon is called liquidated damages. (q.v. at this time but the Company has been precluded from doing so because of a lawsuit lawsuit: see procedure; tort. filed against the Company and outside parties concerning contamination of the Indian Refinery by ChevronTexaco. One of the Company's inactive in·ac·tive adj. 1. Not active or tending to be active. 2. a. Not functioning or operating; out of use: inactive machinery. b. subsidiaries previously owned that refinery for approximately five years, whereas Texaco owned the refinery for approximately 75 years. Forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. in this announcement are made pursuant to the safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. provisions of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. Investors are cautioned that all forward-looking statements involve risks and uncertainty, including without limitation, 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. risks, tax risks, risks related to the public market for the Company's stock, as well as general business risks Please refer to the Company's Securities and Exchange Commission filings for additional information. (a)Castle Energy Corporation is not affiliated with Castle Oil Corporation.
CASTLE ENERGY CORPORATION
CECX (NASDAQ)
Quarter Ended
December 31,
------------------------
2002 2001
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(Unaudited) (Unaudited)
Revenues 0 $3,441,000
Net income (loss) $ 245,000 ($272,000)
Share earnings:
Net income (loss) (basic) $ 0.04 ($0.04)
Average shares (basic) 6,592,884 6,632,884
Net income (loss) (diluted) $ 0.04 ($0.04)
Average shares (diluted) 6,603,302 6,753,630
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