Capital Properties, Inc. Announces First Quarter 2013 Results
EAST PROVIDENCE, R.I.,
April 25, 2013 /PRNewswire/
-- Today, Capital Properties, Inc. (OTCQX: CPTP) reported net
income of $340,000 for the three
months ended March 31, 2013; the net
income for the three months ended March 31,
2012 was $511,000. Based
upon 6,599,912 shares outstanding, the basic income per common
share for the three months ended March 31,
2013 and 2012 was $.05 and
$.08, respectively.
For the three months ended March 31,
2013, leasing revenue increased $52,000 from 2012 due to scheduled increases in
rentals under long-term land leases and increases under short-term
leases. Leasing expense increased $13,000 from 2012 due to increases in expenses
for the Steeple Street Building, offset in part by a decrease in
legal fees.
For the three months ended March 31,
2013, petroleum storage facility revenue increased
$23,000 due to the May 1, 2012 annual cost-of-living adjustment of
$99,000 under the lease for the
petroleum storage facility ("the Facility"). Petroleum
storage facility expense increased due to increases in professional
fees in connection with the preliminary exercise in April 2012 by the tenant of the Facility of its
option to purchase the Facility.
On May 1, 2012, the Company gave
the tenant of the Facility notice of non-extension of its lease and
the lease will expire on April 30,
2013. The Tenant is solely responsible for the removal of its
inventory and the cleaning of the tanks prior to May 1, 2013 and the costs associates with these
activities, which activities were commenced by the tenant in late
March 2013. The Company is
marketing the Facility for lease to a single or multiple users for
temporary storage and distribution of heating oil and Ultra Low
Sulfur Diesel.
For the three months ended March 31,
2013, general and administrative expense increased
$92,000 due to legal and consulting
fees incurred in connection with the marketing of the
Facility.
Interest expense from bank borrowing decreased $12,000 from 2012. In December 2012, the Company and the bank entered
into an Amended and Restated Loan Agreement pursuant to which the
Company refinanced the $2,700,000
remaining on the 2010 debt to the Bank and borrowed an additional
$3,025,000. However, the
interest rate decreased from 6% to 3.34% for the first five years
resulting in a reduction in bank interest expense. Interest
expense related to dividend notes results from the issuance by the
Company in December 2012 of
$11,787,000 in principal face amount
of 5% dividend notes in connection with the payment of a special
dividend.
At the Annual Meeting of shareholders held on April 23, 2013, the shareholders approved Amended
and Restated Articles of Incorporation which, among other things,
converted all outstanding Class B common stock into an equivalent
number of shares of Class A common stock, removed class voting for
directors and certain ownership restrictions.
Financial
Summary
|
Three Months Ended March
31, 2013 and 2012
|
|
|
|
|
|
|
|
2013
|
|
2012
|
Revenues:
|
|
|
|
|
Leasing
|
|
$ 1,064,000
|
|
$ 1,012,000
|
Petroleum storage
facility
|
|
999,000
|
|
976,000
|
Total revenues
|
|
2,063,000
|
|
1,988,000
|
|
|
|
|
|
Expenses:
|
|
|
|
|
Leasing
|
|
283,000
|
|
270,000
|
Petroleum storage
facility
|
|
661,000
|
|
551,000
|
General and
administrative
|
|
355,000
|
|
263,000
|
Interest on
notes:
|
|
|
|
|
Bank
|
|
49,000
|
|
61,000
|
Dividend notes
|
|
152,000
|
|
--
|
Total expenses
|
|
1,500,000
|
|
1,145,000
|
|
|
|
|
|
Income before income
taxes
|
|
$ 563,000
|
|
$
843,000
|
|
|
|
|
|
Net income
|
|
$ 340,000
|
|
$
511,000
|
|
|
|
|
|
Basic income per share, based
upon 6,599,912
|
|
|
|
|
shares
outstanding
|
|
$.05
|
|
$.08
|
Capital Properties, Inc. and its subsidiaries operate in two
segments: (1) Leasing and (2) Petroleum Storage. The
leasing segment consists of the long-term leasing of certain of its
real estate interests in downtown Providence, Rhode Island for commercial
development, the leasing of a portion of a building and the leasing
of locations along interstate and primary highways in Rhode Island and Massachusetts for outdoor advertising
purposes. The petroleum storage segment consists of the
operating of its petroleum storage facility in East Providence, Rhode Island.
Certain written statements made in this press release may
contain "forward-looking statements" which represent the Company's
expectations or beliefs concerning future events. Certain
risks, uncertainties and other important factors are detailed in
reports filed by the Company with the Securities and Exchange
Commission, including Forms 8-K, 10-K and 10-Q. The Company
cautions that these statements are further qualified by important
factors that could cause actual results to differ materially from
those in the forward-looking statements.
CONTACT:
Barbara J. Dreyer, Treasurer
(401) 435-7171
SOURCE Capital Properties, Inc.