Crystal Oil Co. announces year-end results.SHREVEPORT, La.--(BUSINESS WIRE)--March 12, 1996--Crystal Oil Co. (AMEX AMEX See: American Stock Exchange :COR cor (kor) [L.] heart. acute cor pulmonale acute overload of the right ventricle due to pulmonary hypertension, usually due to acute pulmonary embolism. ) today announced its results for the year ended Dec. 31, 1995. The company noted that 1995 was the first year following the company's strategic decision in late 1994 to dispose of To determine the fate of; to exercise the power of control over; to fix the condition, application, employment, etc. of; to direct or assign for a use. See also: Dispose substantially all of its producing oil and gas properties for approximately $98 million and apply a portion of those proceeds to prepay pre·pay tr.v. pre·paid, pre·pay·ing, pre·pays To pay or pay for beforehand. pre·pay  ment n. all of its indebtedness INDEBTEDNESS. The state, of being in debt, without regard to the ability or inability of the party to pay the same. See 1 Story, Eq. 343; 2 Hill. Ab. 421.2. . Since such disposition, the company acquired in June 1995 First Reserve Gas Co. ("FRGC FRGC Face Recognition Grand Challenge "), a gas storage company in Hattiesburg, Miss., for approximately $78 million. This acquisition was funded with the company's available cash and a $60 million bridge loan that was refinanced in November 1995 through a sale of five years of future gas storage receivables and debt financing Debt Financing When a firm raises money for working capital or capital expenditures by selling bonds, bills, or notes to individual and/or institutional investors. In return for lending the money, the individuals or institutions become creditors and receive a promise to repay . These transactions provided the company with approximately $58 million net of expenses. For accounting purposes, income from the receivable sale is being deferred and will be recognized over the life of the receivables sold. Because of the changes in the company's business, financial and operating results for 1995 and 1994 may not be comparable. For the year ended Dec. 31, 1995, the company reported net income before extraordinary item of $1.4 million, or $.52 per share, compared to $4.4 million, or $1.68 per share, for the year ended Dec. 31, 1995. Net income for 1995 was $1.4 million compared to $2.1 million for 1994. Income for 1995 was primarily attributable to six months of operations of FRGC's gas storage facility and interest income, while 1994 income was primarily attributable to a one-time $12.5 million net gain from the sale of the company's oil and gas properties in late 1994. Results for 1994 also included a $2.3 million extraordinary charge relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the company's redemption of its non-interest bearing convertible subordinated notes. Revenues for 1995 were $11.5 million compared to $43.5 million. As noted above, the company's results for 1995 include only six months of operations from the company's gas storage operations. Revenues and direct operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. from gas storage and related services for the second half of 1995 were $6.3 million and $587 thousand, respectively. 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. from gas storage and related services, which included $1.5 million in depreciation and amortization, was $4.1 million. Operating income is expected to continue to benefit from the company's 1995 acquisition of First Reserve Gas Co. At Dec. 31, 1995, the company had $65 million of funds available for future acquisitions, with its only debt being essentially limited to and recourse The right of an individual who is holding a Commercial Paper, such as a check or promissory note, to receive payment on it from anyone who has signed it if the individual who originally made it is unable, or refuses, to tender payment. against its gas storage facility assets. The completion of the company's acquisition of FRGC and the subsequent financing therefor there·for adv. For that: ordering goods and enclosing payment therefor. Adv. 1. therefor (including the sale of receivables) also resulted in the company adjusting its tax assets in light of the 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. generated or to be generated from the operation of the Hattiesburg facility during the life of the company's tax loss carryforwards tax loss carryforward See carryforward. and from the 1995 accounts receivable accounts receivable n. the amounts of money due or owed to a business or professional by customers or clients. Generally, accounts receivable refers to the total amount due and is considered in calculating the value of a business or the business' problems in paying sale. This evaluation resulted in an upward adjustment to the company's 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. , net of certain reserves, of $22.8 million. Of such increase $14.4 million related to tax benefits realized in 1995. This adjustment to the company's tax assets did not affect income for 1995 due to the accounting treatment required for the company's quasi-reorganization in 1986 and the fact that the company's tax loss carryforwards relate primarily to events prior to such reorganization. Joe Averett, president of the company, stated that he was very pleased with the company's achievements in 1995 and the success of the company in redeploying its assets to generate greater income. He noted that the FRGC acquisition had required the use of only $20 million of the company's cash from the 1994 asset sale and has provided the company with a steady source of income for the future with minimum operating costs operating costs npl → gastos mpl operacionales . Averett further noted that the company was actively reviewing other acquisitions for the deployment of the company's available cash as well as means for enhancing the value of FRGC and its assets. Crystal Oil Co. is an acquisition company that currently owns and operates through wholly owned subsidiaries Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. a natural gas storage facility in Hattiesburg, Miss., and holds various interests in oil and gas properties in Texas and Louisiana. The company actively reviews acquisition opportunities, both within and outside the energy industry, with a focus on acquisitions that will maximize the return on the company's existing capital resources and benefit from the company's large net operating loss carryforwards Net operating loss carryforwards Application of losses to offset earnings in future years. and tax benefits. The operating results and financial summary for the year ended Dec. 31, 1995 were as follows: -0-
Three Months Ended Year Ended
December 31 December 31
1995 1994 1995 1994
Revenues (1) $4,112,000 $20,410,000 $11,518,000 $43,523,000 Income from operations before provision for income taxes and extraordinary items $ 776,000 $ 9,297,000 $ 2,366,000 $ 7,266,000 Net income before extraordinary items $ 434,000 $ 5,664,000 $ 1,404,000 $ 4,426,000 Net income $ 434,000 $ 3,344,000 $ 1,404,000 $ 2,106,000 Income before extraordinary item per common equivalent share $ .16 $ 2.14 $ .52 $ 1.68 Income per common equivalent share $ .16 $ 1.26 $ .52 $ .80 Weighted average of common and common equivalent shares outstanding 2,709,000 2,651,000 2,703,000 2,635,000
Year Ended December 31,
1995 1994
Current assets $ 66,320,000 $ 81,195,000 Property, plant & equipment (2) 96,281,000 3,982,000 Other assets (2) 10,844,000 6,763,000 Total assets $173,445,000 $ 91,940,000 Current liabilities $ 2,876,000 $ 5,472,000 Long-term obligation 37,860,000 181,000 Deferred revenues 22,160,000 -- Stockholders' equity (2) 110,549,000 86,287,000 Total liabilities & stockholders' equity $173,445,000 $ 91,940,000
Note: On June 19, 1995, the company acquired First Reserve Gas
Co., a gas storage company located in Hattiesburg, Miss., for a
cash purchase price of approximately $78 million. Accordingly, the
results of operations for the year ended Dec. 31, 1995, includes
revenues and expenses from June 19, 1995, the date of ownership, to
Dec. 31, 1995.
(1) Revenues for the three months and year ended Dec. 31, 1995,
reflect the effect of the sale of substantially all of the company's
oil and gas assets on Dec. 30, 1994, and therefore are not
comparable to the three months and year ended Dec. 31, 1994.
(2) The company has determined, with reasonable certainty, that
it will be able to utilize a significant portion of its net
operating loss carryforwards and, in accordance with Financial
Accounting Standards, established a deferred tax asset in the amount
of approximately $22,800,000. The corresponding offset to this
asset, in accordance quasi accounting rules, is a direct increase to
additional paid-in capital of the Company. In addition, the
company recorded a deferred tax liability associated with the
temporary differences in the tax bases of the assets of First
Reserve Gas Company and the purchase price of the net assets. Such
net liability of approximately $15,770,000 was recorded as an
increase to the carrying value of the assets and a reduction in the
net deferred tax assets.
CONTACT: Crystal Oil Co., Shreveport Jeff Ballew, 318/222-7791 |
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