ALAMCO, INC., REPORTS FIRST QUARTER 1992 RESULTS
ALAMCO, INC., REPORTS FIRST QUARTER 1992 RESULTS CLARKSBURG, W.Va., May 8 /PRNewswire/ -- Today Alamco, Inc.
(AMEX: AXO) announced net income of $212,000 for its first quarter ended March 31, 1992.
The company also reported higher gas sales volumes and lower general and administrative expenses which contributed significantly to improved operating income for the first quarter 1992 as compared to last year. Income from operations for the first quarter 1992 totaled $269,000 vs. $80,000 last year. The company reported net income for the first quarter of 1992 of $212,000 or $0.08 per share (including an extraordinary tax benefit of $21,000 or $0.01 per share) compared to first quarter 1991 net income of $645,000 or $0.25 per share (including extraordinary gain on debt extinguishment of $550,000 or $0.21 per share). Total revenues increased $39,000 to $2,631,000 compared to $2,592,000 for first quarter 1991. Lower gas and oil prices realized by the company in the first quarter 1992 adversely affected revenues and net income by about $200,000. Higher gas sales volumes more than offset the effect of lower product prices and were 15 percent higher in the first quarter 1992 compared to last year due to gas sales from wells acquired in October 1991. Total expenses decreased $150,000 to $2,362,000 for the first quarter 1992 compared to last year. General and administrative expenses decreased $374,000 or 41 percent primarily due to lower salary and other related employee expenses and the absence of expenses incurred in establishing the company's new revolving credit facility in the first quarter of 1991. Interest expense increased $147,000, since interest on borrowings under the credit facility is being charged to expense as it accrues whereas under the former loan agreement the company was required to record interest payments as reductions to long-term debt. The first quarter 1992 provision for income tax increased $70,000 due to higher income from operations as compared to last year. The company used net cash flows from operating activities to fund first quarter 1992 gas and oil investments of approximately $250,000. Barring any significant decline in spot market gas prices, the company anticipates a 1992 capital investment program exceeding $2,000,000. The company also reported the prices it receives for spot market gas sales have strengthened since a low point was reached in February 1992 but that the general level of spot market natural gas prices paid to producers remains weak. Alamco, headquartered in Clarksburg, is an independent producer of gas and oil in the Appalachian Basin with a major operating concentration in West Virginia gas fields. The company's stock is traded on the American Stock Exchange under the symbol AXO. ALAMCO, INC., AND SUBSIDIARY Condensed Consolidated Statement of Operations (Unaudited; in thousands, except share data) Three Months Ended March 31 1992 1991 Revenues $2,631 $2,592 Operating expenses 934 879 General and administrative expenses 528 902 Depreciation, depletion and amortization 708 686 Interest expense 192 45 Total expenses 2,362 2,512 Income from operations 269 80 Other non-operating income, net 40 63 Income before income taxes & extraordinary item 309 143 Provision for income tax 118 48 Income before extraordinary items 191 95 Extraordinary items: Gain on debt extinguishment -- 550 Income tax benefit 21 -- Net income 212 645 Earnings per share: Income before extraordinary items $0.07 $0.04 Extraordinary items $0.01 $0.21 Net income per share $0.08 $0.25 Weighted avg. no. of shares outstanding 2,543,966 2,589,991 -0- 5/7/92 /CONTACT: Jane Merandi of Alamco, 304-623-6671/ (AXO) CO: Alamco, Inc. ST: West Virginia IN: OIL SU: ERN
DM-JG -- PG001 -- 7938 05/08/92 08:01 EDT
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|Date:||May 8, 1992|
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