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New Concept Energy, Inc. (GBR)·Q4 2024 Earnings Summary

Executive Summary

  • Q4 2024 net loss was $0.019M, improving year over year from a $0.039M loss in Q4 2023, with FY 2024 net loss of $0.018M vs $0.021M in FY 2023 .
  • Q4 revenue was $0.036M, composed of rent $0.025M and management fees $0.011M, derived from FY 2024 ($0.146M) minus nine months ($0.110M) figures; interest income was $0.048M, derived from FY 2024 ($0.213M) minus nine months ($0.165M) .
  • Management attributed lower management fees to “a decline in oil and gas prices,” highlighting sensitivity of fee revenue to commodity prices .
  • No formal guidance or earnings call transcript was provided for Q4 2024 in the company’s filings and press release, limiting forward-looking visibility .

What Went Well and What Went Wrong

What Went Well

  • Year-over-year improvement: Q4 2024 net loss narrowed to $0.019M vs $0.039M in Q4 2023, and FY net loss improved to $0.018M vs $0.021M .
  • Revenue stability: Quarterly revenues were steady at ~$0.036–$0.037M across Q2–Q4 2024; Q4 rent was $0.025M and fees $0.011M, matching Q3 mix .
  • Property operating expenses were lower in Q4 ($0.009M) vs Q3 ($0.014M), reflecting contained real estate costs .

What Went Wrong

  • Sequential deterioration in bottom line: net loss widened from $(0.004)M in Q3 to $(0.019)M in Q4, driven by higher corporate G&A .
  • Corporate G&A rose to $0.100M in Q4 vs $0.079M in Q3, pressuring operating results despite flat revenues .
  • Management fees were under pressure due to lower oil and gas prices: “The decrease in management fees is due to a decrease in revenue due to a decline in oil and gas prices.” .

Financial Results

Quarterly P&L Summary ($USD Thousands)

MetricQ2 2024Q3 2024Q4 2024
Rent Revenue25 26 25 (FY 101 − 9M 76)
Management Fee Revenue12 11 11 (FY 45 − 9M 34)
Total Revenues37 37 36 (FY 146 − 9M 110)
Operating Expenses (Property)12 14 9 (FY 48 − 9M 39)
Corporate G&A78 79 100 (FY 335 − 9M 235)
Total Operating Expenses90 93 109 (FY 383 − 9M 274)
Interest Income (Total)56 52 48 (FY 213 − 9M 165)
Net Income (Loss)3 (4) (19)

EPS by Quarter

MetricQ2 2024Q3 2024Q4 2024
EPS (Basic & Diluted)$0.01 $(0.01) n/a (not provided in Q4 release)

Margins vs Prior Periods

MetricQ2 2024Q3 2024Q4 2024
Net Income Margin %8.1% (3/37) (10.8)% ((4)/37) (52.8)% ((19)/36)

Segment/Revenue Mix ($USD Thousands)

MetricQ2 2024Q3 2024Q4 2024
Rent25 26 25 (FY 101 − 9M 76)
Management Fee12 11 11 (FY 45 − 9M 34)
Total37 37 36

KPIs / Balance Sheet Snapshot ($USD Thousands)

MetricQ2 2024 (6/30)Q3 2024 (9/30)Q4 2024 (12/31)
Cash & Equivalents416 430 363
Accounts Payable21 22 20
Accrued Expenses39 39 37
Note Receivable (Related Party)3,542 3,542 3,542
Total Assets4,620 4,617 4,594

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
RevenueFY/QuarterNone providedNone providedMaintained (no guidance)
MarginsFY/QuarterNone providedNone providedMaintained (no guidance)
OpExFY/QuarterNone providedNone providedMaintained (no guidance)
OI&E / TaxFY/QuarterNone providedNone providedMaintained (no guidance)
DividendsFY/QuarterNone providedNone providedMaintained (no guidance)

Earnings Call Themes & Trends

Note: No Q4 2024 earnings call transcript was found; themes below reflect disclosures in Q2–Q4 press releases/8-Ks.

TopicPrevious Mentions (Q2 2024)Previous Mentions (Q3 2024)Current Period (Q4 2024)Trend
Management fee sensitivity to oil & gas pricesMgmt fees $12K; no commentary Mgmt fees $11K; no commentary “Decrease in management fees…due to a decline in oil and gas prices.” Deteriorating fee environment tied to commodity prices
Interest income reliance$56K interest income $52K interest income $48K interest income (FY–9M) Sequential decline across quarters
Corporate G&A$78K $79K $100K (FY–9M) Higher in Q4, pressuring profitability
Property operating expenses$12K $14K $9K (FY–9M) Improved in Q4

Management Commentary

  • “The decrease in management fees is due to a decrease in revenue due to a decline in oil and gas prices.”
  • Company profile reminder: New Concept owns 191 acres in Parkersburg, WV with four structures (~53,000 sq ft) and provides management services to a third-party oil & gas operator .

Q&A Highlights

  • No Q4 2024 earnings call transcript or Q&A was published alongside the press release/8-K, so there were no analyst questions or clarifications available .

Estimates Context

  • Wall Street consensus (S&P Global) for Q4 2024 revenue and EPS was unavailable for GBR; as a result, we cannot assess beats/misses vs consensus for the quarter (Values retrieved from S&P Global).*
  • Given coverage constraints and micro-cap status, estimates appear limited, implying muted estimate-driven trading catalysts for this name (Values retrieved from S&P Global).*

Actual vs Consensus (Q4 2024)

MetricActualConsensus (S&P Global)Surprise
Revenue ($USD Millions)$0.036 (FY 0.146 − 9M 0.110) N/A*N/A*
EPS ($USD)n/a (not provided) N/A*N/A*

Key Takeaways for Investors

  • Results remain driven by a small, stable rent base (~$0.025–$0.026M/quarter) and variable management fees tied to oil & gas prices ($0.011–$0.012M/quarter) .
  • Interest income from a related-party note is a meaningful support to earnings ($0.056M in Q2, $0.052M in Q3, $0.048M in Q4), but is sequentially declining .
  • Q4 operating performance weakened sequentially: higher corporate G&A ($0.100M in Q4 vs $0.079M in Q3) drove the net loss to $(0.019)M despite flat revenues .
  • Fee revenue is directly exposed to commodity prices; management explicitly tied lower fees to weaker oil & gas pricing, an external factor investors should monitor .
  • Liquidity eased modestly with cash at $0.363M on 12/31/24 vs $0.430M at 9/30/24 and $0.416M at 6/30/24, reflecting limited cash generation in Q4 .
  • No formal guidance or earnings call limits near-term visibility and reduces the likelihood of guidance-driven catalysts; trading likely hinges on oil price trends and interest income stability .
  • For medium-term positioning, the thesis rests on cost control (property expenses improved in Q4), stability of rental income, and any potential changes in the related-party interest stream and oil & gas price environment .
Footnote: *Values retrieved from S&P Global.