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 RIVERTON, Wyo., Sept. 20 /PRNewswire/ -- U.S. Energy Corp. (NASDAQ-NMS: USEG) today announced operating results for its 1993 fiscal year.
 For the 12 months ended May 31, 1993, the company reported a loss of $221,900 ($0.05 per share), on revenues of $9,045,500. This compared with net income (excluding extraordinary items) of $594,200 ($0.14 per share), on revenues of $6,353,600 during the fiscal year ended May 31, 1992.
 The 42 percent increase in revenues during FY1993 resulted primarily from the consolidation of U.S. Energy Corp.'s 52 percent-owned subsidiary, Crested Corp. Operations of Crested Corp. were not consolidated with U.S. Energy Corp. during fiscal 1992.
 The modest loss which was recorded for the most recent fiscal year was primarily due to lower margins on uranium sales, reduced profitability from construction contracts at one of the company's subsidiaries, a reduction in contract drilling income from the Green Mountain Mining Venture (GMMV) and non-recurring expenses in the fourth quarter related to the abandonment of certain unpatented mining claims.
 "The past 12 months have proved to be a watershed period for U.S. Energy Corp.," noted John L. Larsen, chief executive officer of the company. "In concert with our joint venture partner in the Green Mountain, Wyo., uranium project (Kennecott Uranium Co.), we made considerable progress in seeking the necessary permits to start running the declines into the uranium ore body at our Jackpot Mine property. During the first quarter of FY1994, we received a long-awaited conditional use permit for the Lincoln Project at our Sutter Gold Venture in California, which is scheduled to become final on Sept. 27, 1993. This will allow construction of a gravity mill to begin in early 1994 with production of gold to commence after its completion. Also, during August 1993, we acquired Plateau Resources Ltd. from Consumers Power Co." The Plateau Resources acquisition, which is not reflected on U.S. Energy Corp.'s May 31 balance sheet, brought with it the ownership of the Shootaring Canyon uranium mill (and related infrastructure) in southern Utah and significantly increased the company's cash reserves. According to Larsen, "U.S. Energy Corp. and its joint venture partners now own two of the remaining four uranium processing mills in the United States, which should provide us with a significant competitive advantage when uranium prices recover in response to declining worldwide inventories."
 U.S. Energy Corp. is a diversified minerals exploration and development company, with primary interests in major uranium resources in Wyoming and Utah. The company and its subsidiary, Crested Corp., share a 90 percent interest in the Sutter Gold Venture discussed above, and hold royalty and other interests in a world-class molybdenum deposit in Colorado, oil producing properties and other base and precious metals properties.
 Condensed Consolidated Statements of Operations
 Year Ended May 31,
 1993 1992 1991
 Revenues 9,045,500 6,353,600 9,569,100
 Costs and expenses 9,680,600 5,831,200 3,486,200
 Income before minority
 interest in loss, equity
 in income (loss) of
 affiliates, provision
 for income taxes and
 extraordinary item (635,100) 522,400 6,082,900
 Minority interest in
 loss of consolidated
 subsidiaries 325,900 58,900 ---
 Equity in (loss) income
 of affiliates 87,300 210,200 (96,100)
 (Loss) income before
 provision for income
 taxes and extraordinary
 item (221,900) 791,500 5,986,800
 Provision for income
 taxes --- 197,300 2,276,100
 Income (loss) before
 extraordinary item (221,900) 594,200 3,710,700
 Extraordinary item
 Utilization of net
 operating loss
 carry forward --- 276,000 2,454,200
 Net (loss) income ($221,900) $870,200 $6,164,900
 Earnings per share
 Income (loss) before
 extraordinary items ($.05) $.14 $.93
 Extraordinary item --- .07 .62
 Net income per share ($.05) $.21 $1.55
 This statement includes accounts of U.S. Energy Corp. and certain subsidiaries.
 -0- 9/20/93
 /CONTACT: John L. Larsen or Keith G. Larsen, 307-856-9271/

CO: U.S. Energy Corp. ST: California IN: MNG SU: ERN

EH-JB -- LA017 -- 3605 09/20/93 11:07 EDT
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Publication:PR Newswire
Date:Sep 20, 1993

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