Crystal Oil Company Reports Operating Results.SHREVEPORT, La.--(BUSINESS WIRE)--Nov. 11, 1997--Crystal Oil Company (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 reported the operating results for the three and nine months ended Sept. 30, 1997 and 1996. -0-
Three Months Ended Nine Months Ended
Sept. 30, Sept. 30,
1997 1996 1997 1996
Revenues $ 4,660,000 $ 4,213,000 $ 13,317,000 $ 12,790,000
Income before
provision for
income taxes (1) $ 267,000 $ 1,031,000 $ 2,417,000 $ 3,137,000
Net Income (1) $ 163,000 $ 626,000 $ 1,472,000 $ 1,908,000
Income per common
share $ .06 $ .23 $ .55 $ .72
Weighted average
of common shares
outstanding 2,666,022 2,665,372 2,665,755 2,660,610
Sept. 30, Dec. 31,
1997 1996
Current assets $ 79,050,000 $ 63,605,000
Marketable securities (2) 72,548,000 2,999,000
Property, plant & equipment 103,503,000 92,965,000
Other assets (2) 30,272,000 10,024,000
Total assets $285,373,000 $169,593,000
Current Liabilities $ 3,842,000 $ 1,577,000
Long-term obligation 36,955,000 36,879,000
Deferred revenues 111,674,000 17,861,000
Stockholders' equity (2) 132,902,000 113,276,000
Total liabilities &
stockholders' equity $285,373,000 $169,593,000
(1) Includes a nonrecurring charge of $710,000 in the three and
nine months ended Sept. 30, 1997, relating to expenses incurred in
connection with an unsuccessful bid for certain crude oil and
natural gas properties.
(2) The Company has also announced that in connection with its
ongoing acquisition program and as a means to provide available
funds therefor, the Company had sold on Sept. 30, 1997,
approximately 16.4 billion cubic feet of natural gas and 1.6 million
barrels of crude oil to be delivered during 1998 at a discounted
cash price of $70,000,000. The Company has the right to modify and
extend the delivery schedule beyond 1998 under certain circumstances
if it acquires additional producing properties.
-0- The Company currently intends to satisfy its obligation under this forward sale contract with a combination of its existing production and reserves and various properties which the Company is actively seeking to acquire as well as with crude oil and natural gas that may be purchased in the future. The proceeds of the sale will be recognized as deliveries are made. The Company will also recognize a charge of approximately $3,800,000 over the period of the current delivery schedule for the amortization of the discount on the undiscounted reference prices of the crude oil and natural gas sold. Such expense, however is expected to be substantially offset by an increase in interest income, pending the use of the funds received from the forward sale. To protect against price volatility, the Company has entered into hedge contracts covering the crude oil and natural gas sold. The forward sale resulted in the Company recognizing approximately $70,000,000 in 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. . A portion of the Company's net operating loss operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. carry forwards will be applied against a substantial portion of the gain. The application of such tax loss carryforwards tax loss carryforward See carryforward. resulted in an increase in 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. and net deferred tax assets at Sept. 30, 1997. The Company has determined, with reasonable certainty, that it will be able to utilize a significant portion of its net operating loss carryforwards Net operating loss carryforwards Application of losses to offset earnings in future years. associated with its sale forward of natural gas and, in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with Financial Accounting Standards, established a deferred tax asset in the amount of approximately $18,800,000 and recorded a corresponding increase to additional paid-in capital additional paid-in capital Stockholder contributions that are in excess of a stock's stated or par value. For example, if a firm issues stock with a par value of $1 per share but sells the stock to investors at $10 per share, the firm's financial statements of the Company, in accordance with quasi [Latin, Almost as it were; as if; analogous to.] In the legal sense, the term denotes that one subject has certain characteristics in common with another subject but that intrinsic and material differences exist between them. accounting rules. Crystal Oil Company 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 Louisiana Louisiana (ləwē'zēăn`ə, l  ē'–), state in the S central United States. It is bounded by Mississippi, with the Mississippi R. , Mississippi and Texas. 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 and tax
benefits.CONTACT: Crystal Oil Co., Shreveport Jeff Ballew, 318/222-7791 |
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