SOURCE: GeoMet, Inc.

GeoMet, Inc.

November 12, 2014 07:30 ET

GeoMet Announces Financial and Operating Results for the Quarter and Nine Months Ended September 30, 2014

HOUSTON, TX--(Marketwired - Nov 12, 2014) -  GeoMet, Inc. (OTCQB: GMET) (PINKSHEETS: GMETP) ("GeoMet" or the "Company") today announced its financial and operating results for the quarter and nine months ended September 30, 2014.

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 the quarter and nine months ended September 30, 2014 and 2013.

Quarter Ended September 30, 2014

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 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, 2013, GeoMet reported a net loss available to common stockholders of $1.0 million, or $0.03 per fully diluted share. Included in net loss available to common stockholders for the quarter ended September 30, 2013 were non-cash charges of $0.6 million for accretion of preferred stock and $1.3 million for PIK dividends paid on preferred stock.

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 share. For the quarter ended September 30, 2013, GeoMet reported income from discontinued operations of $1.9 million, net of tax of $0, or $0.04 per fully diluted share.

Nine months Ended September 30, 2014

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 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, 2013, GeoMet reported a net income available to common stockholders of $32.1 million, or $0.79 per fully diluted share. Included in net income available to common stockholders for the nine months ended September 30, 2013 were non-cash charges of $1.6 million for accretion of preferred stock and $3.7 million for PIK dividends paid on preferred stock.

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 share. Included in income from discontinued operations was a $62.4 million gain resulting from the Asset Sale. For the nine months ended September 30, 2013, GeoMet reported income from discontinued operations of $41.2 million, net of tax of $0, or $1.01 per fully diluted share. Included in income from discontinued operations was a $36.9 million gain resulting from the June 2013 sale of GeoMet's Alabama assets.

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. Among those risks, trends and uncertainties are volatility of future natural gas prices, our estimate of the sufficiency of our existing capital sources and our ability to raise additional capital to fund cash requirements for future operations. 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.

About GeoMet, Inc.

Through the closing of the Asset Sale, GeoMet was engaged in the production of natural gas from coal seams. Prior to the Asset Sale, GeoMet's core area of operations was the Central Appalachian Basin of Virginia and West Virginia.

   
GEOMET, INC. AND SUBSIDIARIES  
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)  
   
    Quarter Ended September 30,     Nine Months Ended September 30,  
    2014     2013     2014     2013  
Expenses:                                
  Depreciation, depletion and amortization   $ --     $ 32,212     $ 113,817     $ 101,223  
  General and administrative     1,212,887       1,049,372       3,160,010       3,456,126  
  Lease termination costs     --       --       427,722       --  
  Restructuring costs     --       6,000       --       93,584  
Total operating expenses     1,212,887       1,087,584       3,701,549       3,650,933  
                                 
Other income (expense)     2,457       (9,565 )     (17,746 )     (44,910 )
                                 
Loss before income taxes from continuing operations     (1,210,430 )     (1,097,149 )     (3,719,295 )     (3,695,843 )
                                 
Income tax expense     6,250       6,250       18,750       18,750  
                                 
Loss from continuing operations     (1,216,680 )     (1,103,399 )     (3,738,045 )     (3,714,593 )
                                 
Discontinued operations     605,008       1,935,067       62,949,297       41,160,996  
                                 
Net (loss) income   $ (611,672 )   $ 831,668     $ 59,211,252     $ 37,446,403  
Accretion of Preferred Stock     (772,910 )     (598,611 )     (2,122,819 )     (1,624,984 )
Paid-in-kind dividends on Preferred Stock     (649,937 )     (1,277,889 )     (1,802,727 )     (3,721,062 )
Cash dividends paid on Preferred Stock     (505 )     (634 )     (1,563 )     (1,835 )
Net (loss) income available to common stockholders   $ (2,035,024 )   $ (1,045,466 )   $ 55,284,143     $ 32,098,522  
                                 
Net (loss) income per common share--basic and diluted:                                
Continuing operations   $ (0.07 )   $ (0.07 )   $ (0.19 )   $ (0.22 )
Discontinued operations     0.02       0.04       1.55       1.01  
Total   $ (0.05 )   $ (0.03 )   $ 1.36     $ 0.79  
                                 
Weighted average number of common shares:                                
Basic and diluted     40,513,373       40,485,875       40,513,093       40,473,460  
   
   
   
GEOMET, INC. AND SUBSIDIARIES  
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)  
   
    September 30,
2014
    December 31, 2013  
ASSETS                
Current Assets:                
  Cash and cash equivalents   $ 24,118,090     $ 8,108,272  
  Other current assets     305,155       3,593,547  
Total current assets     24,423,245       11,701,819  
Property and equipment--net     --       42,329,051  
Other noncurrent assets     10,832       769,384  
TOTAL ASSETS   $ 24,434,077     $ 54,800,254  
LIABILITIES, MEZZANINE AND STOCKHOLDERS' DEFICIT                
Current Liabilities:                
  Payable to purchaser of assets   $ 346,606     $ --  
  Current portion of long-term debt     --       71,550,000  
  Derivative liability--natural gas contracts     --       834,151  
  Asset retirement obligations     173,524       265,470  
  Income taxes payable     126,444       --  
  Other current liabilities     416,712       8,271,695  
Total current liabilities     1,063,286       80,921,316  
Asset retirement obligations     --       8,915,407  
Derivative liability--natural gas contracts     --       709,571  
Other long-term accrued liabilities     --       113,434  
TOTAL LIABILITIES     1,063,286       90,659,728  
Series A Convertible Redeemable Preferred Stock     47,330,539       43,404,993  
Stockholders' deficit     (23,959,748 )     (79,264,467 )
TOTAL LIABILITIES, MEZZANINE AND STOCKHOLDERS' DEFICIT   $ 24,434,077     $ 54,800,254  
   
   
   
GEOMET, INC.  
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS  
   
    Nine months Ended September 30, 2014     Nine months Ended September 30, 2013  
                 
Net cash (used in) provided by operating activities   $ (7,733,919 )   $ 7,604,340  
                 
Net cash provided by investing activities     95,295,299       60,171,728  
                 
Net cash used in financing activities     (71,551,562 )     (65,305,663 )
                 
Increase in cash and cash equivalents     16,009,818       2,470,405  
                 
Cash and cash equivalents at beginning of period     8,108,272       7,234,225  
                 
Cash and cash equivalents at end of period   $ 24,118,090     $ 9,704,630  
                 

Contact Information

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