Capital Properties, Inc. Announces Second Quarter 2013 Results
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EAST PROVIDENCE, R.I.,
Aug. 5, 2013 /PRNewswire/
-- Today, Capital Properties, Inc. (OTCQX: CPTP) reported net
income of $251,000 and $591,000 for the three and six months ended
June 30, 2013. Based upon
6,599,912 shares outstanding, the basic income per common share for
the same periods was $.04 and
$.09. For the three and six
months ended June 30, 2012, the
Company had reported net income of $578,000 and $1,089,000, respectively. Based upon
6,599,912 shares outstanding, the basic income per common share for
the same periods was $.09 and
$.17, respectively.
For the three months and six months ended June 30, 2013, leasing revenue increased
$119,000 and $171,000, respectively, from 2012 principally due
to scheduled increases in rentals under long-term land leases and
increases under short-term leases. For the three months and
six ended June 30, 2013, leasing
expense decreased $121,000 and
$108,000, respectively, from 2012
principally due to a decrease in real property taxes resulting from
a reassessment of the downtown Providence parcels; the adjustment to the
property tax accrual was made in June
2013 when the tax bills were received from the City of
Providence.
For the first four months of 2013, the Company operated the
petroleum storage facility ("the Facility") for Global Companies,
LLC ("Global") under a lease which expired on April 30, 2013. In addition, Global had an
option to purchase which terminated on June
3, 2013.
For the three months and six months ended June 30, 2013, petroleum storage facility
revenues decreased $645,000 and
$622,000, respectively, due to the
expiration of the Global lease. For the three months ended
June 30, 2013, petroleum storage
facility expense remained at the 2012 level. An increase in
real property taxes was offset by a decrease in repairs and
maintenance. For the six months ended June 30, 2013, petroleum storage facility expense
increased $107,000 due to increases
in professional fees in connection with the Global Option
Agreement, payroll and related costs and insurance costs, offset in
part by a decrease in repairs and maintenance. In the second
quarter of both years, the Company received reimbursement for costs
expended in a prior year, which reimbursements were recorded as a
reduction of expense. In 2013, the Company was reimbursed
$96,000 for costs incurred for the
appraisal of the Facility in accordance with the Global Option
Agreement. In 2012, the Company was reimbursed $90,000 for costs associated with a pipeline
breach.
For the three months ended June 30,
2013, general and administrative expense remained at the
2012 level. For the six months ended June 30, 2013, general and administrative expense
increased $101,000 due principally to
legal and consulting fees incurred in connection with the marketing
of the Facility.
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 balance of the 2010 debt to the Bank
and borrowed an additional $3,025,000
which was used to pay part of the extraordinary dividend described
below. The existing note was amended and now bears interest
at an annual rate of 3.34%, has a 10-year term with repayments on a
20-year amortization schedule (monthly payments of $24,000 plus interest) and a balloon payment of
$2,869,000 in December 2022 when it matures. In
December 2012, the Board of Directors
of the Company declared the extraordinary dividend of $2.25 per share, which the Company paid out in
cash ($3,063,000) and issued
$11,787,000 in principal face amount
of 5% dividend notes due in December
2022, bearing interest at the annual rate of 5% payable
semi-annually on June 15 and
December 15.
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Financial Summary
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Three Months
Ended
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Six Months Ended
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June 30
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June 30
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2013
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2012
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2013
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2012
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Revenues:
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Leasing
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$ 1,210,000
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$ 1,091,000
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$ 2,274,000
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$ 2,103,000
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Petroleum storage
facility
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340,000
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985,000
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1,339,000
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1,961,000
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Total
revenues
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1,550,000
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2,076,000
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3,613,000
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4,064,000
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Expenses:
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Leasing
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149,000
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270,000
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432,000
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540,000
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Petroleum storage
facility
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513,000
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516,000
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1,174,000
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1,067,000
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General and
administrative
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279,000
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270,000
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634,000
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533,000
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Interest on
notes:
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Bank
loan
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50,000
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61,000
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99,000
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122,000
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Dividend
notes
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144,000
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--
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296,000
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--
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1,135,000
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1,117,000
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2,635,000
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2,262,000
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Income before income taxes
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$ 415,000
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$ 959,000
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$ 978,000
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$ 1,802,000
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Net income
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$ 251,000
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$ 578,000
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$ 591,000
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$ 1,089,000
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Basic income per common share,
based
upon 6,599,912 shares
outstanding
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$
.04
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$
.09
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$
.09
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$
.17
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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
petroleum storage terminal and the Wilkesbarre Pier in East Providence, Rhode Island, collectively
referred to as the "Facility." For the first four months of
2013, the Company operated the Facility for Global under a lease
which expired April 30, 2013.
The Company is currently marketing the Facility for lease to one or
more petroleum storage and distribution users.
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.