Castle Energy Announces Fiscal 2005 Results.KING OF PRUSSIA King of Prussia, industrialized suburban area (1990 pop. 18,406), Montgomery co., SE Pa. It has glass and steel fabricating, food processing, printing and publishing, and varied manufacturing (textiles, liquified petroleum gas, water-treatment and electrical , Pa. -- Castle Energy Corporation(1) (Nasdaq:CECX) (the "Company") announced today its results for fiscal 2005. For the year ended September 30, 2005, the Company incurred a loss of $1,591,000 ($.23 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. ). This compared to a net income of $13,620,000 ($1.96 per share diluted) for the year ended September 30, 2004. For the quarter ended September 30, 2005, the Company incurred a loss of $4,318,000 ($.61 per share diluted) versus a loss of $13,000 ($.00 per share diluted) for the quarter ended September 30, 2004. Mr. Sidney F. Wentz, Chairman, noted that the fiscal 2005 loss was primarily attributable to a $3,392,000 net loss from discontinued dis·con·tin·ue v. dis·con·tin·ued, dis·con·tin·u·ing, dis·con·tin·ues v.tr. 1. To stop doing or providing (something); end or abandon: refining refining, any of various processes for separating impurities from crude or semifinished materials. It includes the finer processes of metallurgy, the fractional distillation of petroleum into its commercial products, and the purifying of cane, beet, and maple sugar operations. This loss consisted of a pre-tax loss of $4,897,000 and a tax recovery of $1,505,000. The loss resulted from the Company's settlement of its long-standing 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. with Chevron for $5,750,000 on September 19, 2005. At the time, the Company had accrued ac·crue v. ac·crued, ac·cru·ing, ac·crues v.intr. 1. To come to one as a gain, addition, or increment: interest accruing in my savings account. 2. $853,000 related to contingent environmental liabilities of its refining business which it discontinued 10 years ago. Mr. Richard E. Staedtler, Chief Executive Officer, indicated that the Company earned $1,801,000 from continuing operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the , net of $1,012,000 of related deferred taxes. The net income from continuing operations in 2005 included a $3,066,000 gain from the sale of 300,000 shares of the common stock of Delta Petroleum Corporation ("DPTR DPTR Data Pointer Register DPTR Division of Pediatric Translational Research and Treatment Development (US National Institute of Mental Health) DPTR Diplomatic Pouch Tournament Ratings DPTR Dynamic Progressive Transmission of Resolution " on Nasdaq) ("Delta"). In fiscal 2004, the Company's net income included an $18,211,000 gain from the sale of 2,948,289 shares of Delta. Mr. Staedtler also reported that the Company's board of directors had declared a regular quarterly dividend of $.05 per share payable on January 13, 2006 to holders of record on January 9, 2006. On November 8, 2005, the Company entered into a merger agreement with Delta. Pursuant to the terms of that agreement, the Company expects to merge into a subsidiary of Delta and Delta will be the surviving entity. The merger is structured to be a tax-free transaction whereby the Company's stockholders are to receive 1.164 shares of Delta's common stock for each share of the Company's stock. The merger is subject to shareholder approval by the Company's stockholders and other customary terms and conditions. Although the Company believes a February 28, 2006 closing is possible, it could close after that, but before the end of March 2006 or not close at all. 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 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. (1) Castle Energy Corporation is not affiliated with Castle Oil Corporation.
Castle Energy Corporation
CECX (Nasdaq)
Quarter Ended September 30,
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2005 2004
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Revenues $594,000 $596,000
Net income (loss) ($4,318,000) ($13,000)
Share earnings:
Average shares (diluted) 7,215,360 7,039,248
Net income (loss) per share (diluted) ($.61) ($.00)
Year Ended September 30,
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2005 2004
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Revenues $2,561,000 $1,087,000
Net income (loss) ($1,591,000) $13,620,000
Share earnings:
Average shares (diluted) 7,052,693 6,933,982
Net income (loss) per share (diluted) ($.23) $1.96
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