Royale Energy, Inc. Reports Positive Cash Flow From Operations for 2012
April 16, 2013: 07:20 PM ET
SAN DIEGO, April 16, 2013 (GLOBE NEWSWIRE) -- Royale Energy, Inc. (Nasdaq:ROYL) announced the filing of its annual financial statements for year-end 2012. These statements reflect a positive cash flow from operations for the third consecutive year. Prior to a negative cash flow from operations in 2009, Royale has reported a positive cash flow from operations since 1996.
Royale's reported net loss of $11,961,026, or (1.07) per share, for the year ending 2012 was largely due to a non-cash valuation allowance of the Company's deferred tax assets. Its $7,434,909 Income Tax Provision is anticipated to be recovered as the Company returns to profitability. Market conditions, including higher drilling costs and the lowest natural gas prices in 10 years, further affected the Company's results.
Royale is actively pursuing plans to drill 3 wells in California's Sacramento Basin in the coming month, and together with the announced plans for a joint venture to develop its key Alaska property, management remains optimistic for the Company's and the industry's outlook.
Forward Looking Statements
In addition to historical information contained herein, this news release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, subject to various risks and uncertainties that could cause the company's actual results to differ materially from those in the "forward-looking" statements. While the company believes its forward looking statements are based upon reasonable assumptions, there are factors that are difficult to predict and that are influenced by economic and other conditions beyond the company's control. Investors are directed to consider such risks and other uncertainties discussed in documents filed by the company with the Securities and Exchange Commission.
ROYALE ENERGY, INC.
STATEMENTS OF COMPREHENSIVE LOSS
FOR THE YEAR ENDED DECEMBER 31, 2012 AND 2011
2012
2011-RESTATED
Revenues:
Sale of Oil and Gas
$1,673,538
$4,879,397
Turnkey drilling
2,028,863
5,794,427
Supervisory Fees and Other
692,344
858,586
Total Revenues
4,394,745
11,532,410
Costs and Expenses:
General and Administrative
3,640,336
4,039,209
Turnkey Drilling and Development
449,536
3,523,372
Lease Operating
1,139,750
1,517,920
Lease Impairment
200,778
4,529,058
Geological and Geophysical Expense
423,459
111,390
Inventory Write Down
62,744
258,043
Bad Debt Expense
263,767
86,294
Legal and Accounting
518,511
933,856
Marketing
594,118
713,495
Depreciation, Depletion and Amortization
1,448,002
2,362,065
Total Costs and Expenses
8,741,001
18,074,702
Gain on Sale of assets
8,100
759,763
Loss From Operations
(4,338,156)
(5,782,529)
Other Income (Expense):
Interest Expense
(195,009)
(138,218)
Gains on Marketable Securities
7,048
0
Loss Before Income Tax Expense
(4,526,117)
(5,920,747)
Income Tax Provision (Benefit)
7,434,909
(1,732,506)
Net Loss
($11,961,026)
($4,188,241)
Basic Earnings Per Share:
Net Loss available to common stock
($1.07)
($0.39)
Diluted Earnings Per Share
($1.07)
($0.39)
Other Comprehensive Income
Unrealized Gain on Equity Securities
$0
$4,275
Less: Reclassification Adjustment for Gains Included in Net Loss
(7,048)
0
Other Comprehensive Income, before tax
7,048
4,275
Income Tax Expense Related to Items of Other Comprehensive Income
0
1,240
Other Comprehensive Income, net of tax
7,048
3,035
Comprehensive Loss
($11,953,978)
($4,185,206)
CONTACT: Royale Energy, Inc.
Chanda Idano, Director of Marketing & PR
619-881-2800
chanda@royl.com
http://www.royl.com
