Castle Energy announces third quarter earnings.RADNOR, Pa.--(BUSINESS WIRE)--Aug. 14, 1996--Castle Energy Corp.(a) (NASDAQ/NNM:CECX) (the "Company") reported earnings of $1,816,000 (27 cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. ) for the quarter ended June 30, 1996. This compared to a loss of $1,873,000 (28 cents per share) for the corresponding quarter in 1995. Joseph L. Castle II, chairman and chief executive officer, noted that earnings from the Company's 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 (natural gas marketing and transmission and exploration and production) accounted for all of the Company's $1,816,000 earnings in 1996. In 1995, the $1,873,000 loss consisted of pretax pre·tax adj. Existing before tax deductions: pretax income. pretax adj [profit] → vor (Abzug der) Steuern earnings of $3,981,000 from natural gas marketing and transmission and exploration and production, a tax benefit of $1,158,000 (together constituting $5,139,000 (77 cents per share) of earnings from continuing operations) and a $7,012,000 ($1.05 per share) loss from discontinued refining operations. The Company, as previously reported, had sold or retired both of its refineries by Sept. 30, 1995 and is no longer engaged in the refining business. For the nine months ended June 30, 1996 the Company reported net income of $12,444,000 ($1.85 per share) versus net income of $12,247,000 ($1.80 per share) for the nine months ended June 30, 1995. The 1996 net income was comprised entirely of continuing operations. The 1995 net income consisted of $12,146,000 of pretax income pretax income Reported income before the deduction of income taxes. Pretax income is sometimes considered a better measure of a firm's performance than aftertax income because taxes in one period may be influenced by activities in earlier periods. from natural gas marketing and transmission and exploration and production less a tax provision of $32,246,000, resulting in a $20,100,000 ($2.96 per share) loss from continuing operations, and $32,347,000 ($4.76 per share) of net income from refining operations. The tax provision for continuing operations in 1995 resulted from the application of accounting pronouncements and does not represent the Company's current or future expected tax rates. The zero tax provision for the nine months ended June 30, 1996 resulted because of the Company's tax carryforwards (approximately $69,000,000) and increases in estimated taxable income Under the federal tax law, gross income reduced by adjustments and allowable deductions. It is the income against which tax rates are applied to compute an individual or entity's tax liability. The essence of taxable income is the accrual of some gain, profit, or benefit to a taxpayer. for the current year. In July 1996, an owner of oil and gas interests in wells operated by one of the Company's oil and gas subsidiaries filed a suit against the Company and three of its subsidiaries. The plaintiff claims, among other things, that the subsidiaries have underpaid un·der·paid v. Past tense and past participle of underpay. underpaid Adjective not paid as much as the job deserves underpaid adj → non-operating owners with respect to gas production from oil and gas properties and attempts to bring a class action on behalf of all such owners based upon various legal theories. The Company has responded to the lawsuit and has asserted that the suit is not a proper class action and that the named plaintiff A named plaintiff is one of the small group of individual plaintiffs in a class action who are identified by name and who stand in for and represent the interests of the larger group of people who comprise the plaintiff class. is not an appropriate class representative. Management of the Company and special counsel retained by the Company believe that there are a number of meritorious mer·i·to·ri·ous adj. Deserving reward or praise; having merit. [Middle English, from Latin merit defenses to the claims being asserted. Among other defenses, the Company has asserted that many of the matters which form the basis for the plaintiff's claims were resolved adversely to certain of the members of the purported class in prior 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. involving the predecessors in title to the Company's subsidiaries. Based upon a review of the pleadings which have been filed, the Company believes that the claims are without merit, and intends to vigorously defend the lawsuit. In July 1996, a refining subsidiary previously owned by the Company was served with a suit concerning operations of the Powerine Refinery. The suit claims the Powerine Refinery is a public nuisance public nuisance n. a nuisance which affects numerous members of the public or the public at large, as distinguished from a nuisance which only does harm to a neighbor or a few private individuals. , that it has released excessive toxic and noxious noxious adj. harmful to health, often referring to nuisances. emissions and caused physical and emotional distress emotional distress n. an increasingly popular basis for a claim of damages in lawsuits for injury due to the negligence or intentional acts of another. Originally damages for emotional distress were only awardable in conjunction with damages for actual physical harm. on residents living nearby. The Company is also named as a plaintiff in the suit but has not as yet been served with the lawsuit. The Company believes it is not properly a defendant in the lawsuit, since it did not operate the Powerine Refinery. Furthermore, when the Company sold Powerine in January 1996, the buyer assumed all liabilities, including environmental liabilities. The Company, through its various subsidiaries, owns a gas sales contract Sales Contract Contract between a seller and buyer for the sale of goods, services, or both. with Lone Star Lone Star (or Lonestar) may refer to:
adj. Relating to or existing within the boundaries of a state. Adj. 1. intrastate - relating to or existing within the boundaries of a state; "intrastate as well as interstate commerce" pipeline in Rusk County, Texas Rusk County is a county located in the U.S. state of Texas. Originally a part of Nacogdoches County, Rusk was established as its own county by the Congress of the Republic of Texas on January 16, 1843. In 2000, its population was 47,372. and related gas contracts and interests. The Company also owns interests in over 425 wells and is the operator of approximately 350 wells throughout the 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. . -0-
Castle Energy Corp.
Quarter Ended June 30
1995
1996 Reclassified(b)
---- ---------------
Revenues $16,616,000 $20,766,000
=========== ===========
Net income - continuing operations $ 1,816,000 $ 5,139,000
Net (loss) - discontinued operations -- (7,012,000)
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Net income (loss) $ 1,186,000 $(1,873,000)
----------- -----------
Average shares 6,729,827 6,712,505
=========== ===========
Share earnings (loss):
Continuing operations $ .27 $ .77
Discontinued operations -- (1.05)
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$ .27 $ (.28)
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Nine months ended June 30
1995
1996 Reclassified(b)
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Revenues $57,082,000 $66,095,000
=========== ===========
Net income (loss) - continuing
operations $12,444,000 ($20,100,000)
Net income - discontinued operations -- 32,347,000
----------- -----------
Net income $12,444,000 $12,247,000
----------- -----------
Average shares 6,729,172 6,785,861
=========== ===========
Share earnings (loss):
Continuing operations $ 1.85 ($ 2.95)
Discontinued operations -- 4.75
----------- -----------
$ 1.85 $ 1.80
=========== ===========-0- (a) Castle Energy Corp. is not affiliated with Castle Oil Corp. (b) Reclassified to reflect discontinued operations
CONTACT: Castle Energy Corp., Radnor Joseph L. Castle II, 610/995-9400 |
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