SOURCE: GeoMet, Inc.

GeoMet, Inc.

November 02, 2015 16:47 ET

GeoMet Announces Financial and Operating Results for the Quarter and Nine Months Ended September 30, 2015

HOUSTON, TX--(Marketwired - Nov 2, 2015) - GeoMet, Inc. (OTC PINK: GMET) (OTC PINK: GMETP) ("GeoMet" or the "Company") today announced its financial and operating results for the quarter and nine months ended September 30, 2015.

Financial and Operating Results

On May 12, 2014, GeoMet closed the sale of substantially all of its remaining assets (the "Asset Sale"). As a result of the Asset Sale, all operating activities are presented as discontinued operations in the Condensed Consolidated Statements of Operations (Unaudited) for each of the quarter and nine month periods ended September 30, 2015 and 2014.

As of September 30, 2015, our primary asset as a public "shell company" is cash in the amount of approximately $18.6 million. On a go forward basis, we will continue to incur general and administrative expenses necessary to sustain a public registrant and professional fees while assessing strategic opportunities.

Quarter Ended September 30, 2015

For the quarter ended September 30, 2015, GeoMet reported a net loss available to common stockholders of $3.8 million, or $0.09 per fully diluted common share. Included in net loss available to common stockholders for the quarter ended September 30, 2015 was a cash dividend paid on preferred stock of approximately $1.7 million and a non-cash charge of $1.1 million for accretion of preferred stock.

For the quarter ended September 30, 2014, GeoMet reported a net loss available to common stockholders of $2.0 million, or $0.05 per fully diluted common share. Included in net loss available to common stockholders for the quarter ended September 30, 2014 were non-cash charges of $0.8 million for accretion of preferred stock and $0.6 million for paid-in-kind ("PIK") dividends paid on preferred stock.

For the quarter ended September 30, 2015, GeoMet reported no income from discontinued operations.

For the quarter ended September 30, 2014, GeoMet reported income from discontinued operations of $0.6 million, including a tax benefit of $0.03 million, or $0.02 per fully diluted common share. 

Nine months Ended September 30, 2015

For the nine months ended September 30, 2015, GeoMet reported a net loss available to common stockholders of $8.2 million, or $0.20 per fully diluted common share. Included in net loss available to common stockholders for the nine months ended September 30, 2015 were a cash dividend paid on preferred stock of approximately $1.7 million and non-cash charges of $3.0 million for accretion of preferred stock and $1.1 million for PIK dividends paid on preferred stock.

For the nine months ended September 30, 2014, GeoMet reported net income available to common stockholders of $55.3 million, or $1.36 per fully diluted common share. Included in net income available to common stockholders for the nine months ended September 30, 2014 were non-cash charges of $2.1 million for accretion of preferred stock and $1.8 million for PIK dividends paid on preferred stock.

For the nine months ended September 30, 2015, GeoMet reported no income from discontinued operations.

For the nine months ended September 30, 2014, GeoMet reported income from discontinued operations of $62.9 million, net of tax of $0.7 million, or $1.55 per fully diluted common share. Included in income from discontinued operations was a $62.4 million gain resulting from the Asset Sale.

Forward-Looking Statements Notice

This press release may contain "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Except for statements of historical facts, all statements included in the document, including those preceded by, followed by or that otherwise include the words "believe," "expects," "anticipates," "intends," "estimates," "projects," "target," "goal," "plans," "objective," "should" or similar expressions or variations on such words, are forward-looking statements. These forward-looking statements are subject to certain risks, trends and uncertainties that could cause actual results to differ materially from those projected. In particular, careful consideration should be given to cautionary statements made in the various reports the Company has filed with the Securities and Exchange Commission ("SEC"). Additional information concerning factors that could cause actual results to differ materially from those in the forward-looking statements is contained from time to time in the Company's SEC filings, which may be obtained by contacting the Company or the SEC. These filings are also available through the Company's web site at http://www.geometinc.com or through the SEC's Electronic Data Gathering and Analysis Retrieval System (EDGAR) at http://www.sec.gov. GeoMet undertakes no duty to update or revise these forward-looking statements.

 
GEOMET, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
 
    Three Months Ended
September 30,
    Nine Months Ended
September 30,
 
    2015     2014     2015     2014  
Expenses:                                
  Depreciation, depletion and amortization   $ --     $ --     $ --     $ 113,817  
  General and administrative     925,010       1,212,887       2,381,936       3,160,010  
  Lease termination costs     --       --       --       427,722  
Total operating expenses     925,010       1,212,887       2,381,936       3,701,549  
                                 
  Other income (expense)     8,598       2,457       57,094       (17,746 )
                                 
Loss before income taxes from continuing operations     (916,412 )     (1,210,430 )     (2,324,842 )     (3,719,295 )
                                 
  Income tax expense     5,789       6,250       18,289       18,750  
                                 
Loss from continuing operations     (922,201 )     (1,216,680 )     (2,343,131 )     (3,738,045 )
                                 
Discontinued operations     --       605,008       --       62,949,297  
                                 
Net (loss) income   $ (922,201 )   $ (611,672 )   $ (2,343,131 )   $ 59,211,252  
Accretion of Preferred Stock     (1,107,407 )     (772,910 )     (2,999,449 )     (2,122,819 )
Paid-in-kind dividends on Preferred Stock     --       (649,937 )     (1,141,636 )     (1,802,727 )
Cash dividends paid on Preferred Stock     (1,732,083 )     (505 )     (1,732,990 )     (1,563 )
Net (loss) income available to common stockholders   $ (3,761,691 )   $ (2,035,024 )   $ (8,217,206 )   $ 55,284,143  
                                 
Net (loss) income per common share--basic and diluted:                                
Net loss per common share from continuing operations   $ (0.09 )   $ (0.07 )   $ (0.20 )   $ (0.19 )
Net income per common share from discontinued operations     --       0.02       --       1.55  
Net (loss) income per common share--basic and diluted   $ (0.09 )   $ (0.05 )   $ (0.20 )   $ 1.36  
                                 
Weighted average number of common shares:                                
Basic and diluted     40,513,373       40,513,373       40,513,373       40,513,093  
                                 
                                 
 
GEOMET, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
 
    September 30,
2015
    December 31,
2014
 
ASSETS                
Current Assets:                
  Cash and cash equivalents   $ 18,626,835     $ 22,894,405  
  Other current assets     199,858       148,302  
Total current assets     18,826,693       23,042,707  
TOTAL ASSETS   $ 18,826,693     $ 23,042,707  
LIABILITIES, MEZZANINE AND STOCKHOLDERS' DEFICIT                
Current Liabilities:                
  Income taxes payable   $ --     $ 2,543  
  Other current liabilities     138,000       275,350  
Total current liabilities     138,000       277,893  
TOTAL LIABILITIES     138,000       277,893  
Series A Convertible Redeemable Preferred Stock     52,817,306       48,676,221  
Total stockholders' deficit     (34,128,613 )     (25,911,407 )
TOTAL LIABILITIES, MEZZANINE AND STOCKHOLDERS' DEFICIT   $ 18,826,693     $ 23,042,707  
                 
                 
 
GEOMET, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE NINE MONTHS ENDED SEPTEMBER 30,
 
    2015       2014  
                   
Net cash used in operating activities   $ (2,534,580 )     $ (7,733,919 )
                   
Net cash provided by investing activities     --         95,295,299  
                   
Net cash used in financing activities     (1,732,990 )       (71,551,562 )
                   
(Decrease) increase in cash and cash equivalents     (4,267,570 )       16,009,818  
                   
Cash and cash equivalents at beginning of period     22,894,405         8,108,272  
                   
Cash and cash equivalents at end of period   $ 18,626,835       $ 24,118,090  
                   
                   

Contact Information

  • For more information please contact
    William A. Wiederkehr, Jr.
    Treasurer and Secretary
    (713) 600-4310
    wwiederkehr@geometcbm.com