SOURCE: GeoMet, Inc.

GeoMet, Inc.

February 18, 2015 16:15 ET

GeoMet Announces Financial and Operating Results for the Quarter and Year Ended December 31, 2014

HOUSTON, TX--(Marketwired - Feb 18, 2015) - GeoMet, Inc. (OTC PINK: GMET) (OTC PINK: GMETP) ("GeoMet" or the "Company") today announced its financial and operating results for the quarter and year ended December 31, 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 year ended December 31, 2014 and 2013.

As of December 31, 2014, our primary asset as a public "shell company" is cash in the amount of $22.9 million. On a go forward basis, we believe we are incurring the minimum overhead expenses necessary to sustain a public registrant.

Quarter Ended December 31, 2014

For the quarter ended December 31, 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 December 31, 2014 were non-cash charges of $0.8 million for accretion of preferred stock and $0.5 million for paid-in-kind ("PIK") dividends paid on preferred stock. For the quarter ended December 31, 2013, GeoMet reported a net loss available to common stockholders of $4.3 million, or $0.11 per fully diluted share. Included in net loss available to common stockholders for the quarter ended December 31, 2013 were non-cash charges of $0.6 million for accretion of preferred stock and $1.6 million for PIK dividends paid on preferred stock.

For the quarter ended December 31, 2014, GeoMet reported income from discontinued operations of $84 thousand, including a tax benefit of $24 thousand, or $0.00 per fully diluted share. For the quarter ended December 31, 2013, GeoMet reported a loss from discontinued operations of $359 thousand, net of tax of $0, or $0.01 per fully diluted share.

Year Ended December 31, 2014

For the year ended December 31, 2014, GeoMet reported net income available to common stockholders of $53.3 million, or $1.32 per fully diluted share. Included in net income available to common stockholders for the year ended December 31, 2014 were non-cash charges of $3.0 million for accretion of preferred stock and $2.3 million for PIK dividends paid on preferred stock. For the year ended December 31, 2013, GeoMet reported a net income available to common stockholders of $27.8 million, or $0.69 per fully diluted share. Included in net income available to common stockholders for the year ended December 31, 2013 were non-cash charges of $2.3 million for accretion of preferred stock and $5.3 million for PIK dividends paid on preferred stock.

For the year ended December 31, 2014, GeoMet reported income from discontinued operations of $63.0 million, net of tax of $0.7 million, or $1.56 per fully diluted share. Included in income from discontinued operations was a $61.3 million gain resulting from the Asset Sale. For the year ended December 31, 2013, GeoMet reported income from discontinued operations of $40.8 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. 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)
 
    Quarter Ended
December 31,
    Year Ended
December 31,
 
    2014     2013     2014     2013  
Expenses:                                
  Depreciation, depletion and amortization   $ --     $ 24,674     $ 113,817     $ 125,897  
  General and administrative     686,132       1,555,519       3,846,142       5,011,645  
  Lease termination costs     --       --       427,722       --  
  Restructuring costs     --       --       --       93,584  
Total operating expenses     686,132       1,580,193       4,387,681       5,231,126  
                                 
Other income (expense)     2,780       (182,172 )     (14,966 )     (227,082 )
                                 
Loss before income taxes from continuing operations     (683,352 )     (1,762,365 )     (4,402,647 )     (5,458,208 )
                                 
Income tax expense     6,250       6,250       25,000       25,000  
                                 
Loss from continuing operations     (689,602 )     (1,768,615 )     (4,427,647 )     (5,483,208 )
                                 
Discontinued operations     84,022       (358,714 )     63,033,319       40,802,282  
                                 
Net (loss) income   $ (605,580 )   $ (2,127,329 )   $ 58,605,672     $ 35,319,074  
Accretion of Preferred Stock     (841,943 )     (632,984 )     (2,964,762 )     (2,257,968 )
Paid-in-kind dividends on Preferred Stock     (503,739 )     (1,574,076 )     (2,306,466 )     (5,295,138 )
Cash dividends paid on Preferred Stock     (397 )     (737 )     (1,960 )     (2,572 )
Net (loss) income available to common stockholders   $ (1,951,659 )   $ (4,335,126 )   $ 53,332,484     $ 27,763,396  
                                 
Net (loss) income per common share -- basic and diluted:                                
Continuing operations   $ (0.05 )   $ (0.10 )   $ (0.24 )   $ (0.32 )
Discontinued operations     --       (0.01 )     1.56       1.01  
Total   $ (0.05 )   $ (0.11 )   $ 1.32     $ 0.69  
                                 
Weighted average number of common shares:                                
Basic and diluted     40,513,373       40,504,684       40,513,373       40,481,330  
                                 
                                 
 
GEOMET, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
 
    December 31,  
    2014     2013  
ASSETS                
Current Assets:                
  Cash and cash equivalents   $ 22,894,405     $ 8,108,272  
  Other current assets     148,302       3,593,547  
Total current assets     23,042,707       11,701,819  
Property and equipment -- net     --       42,329,051  
Other noncurrent assets     --       769,384  
TOTAL ASSETS   $ 23,042,707     $ 54,800,254  
LIABILITIES, MEZZANINE AND STOCKHOLDERS' DEFICIT                
Current Liabilities:                
  Current portion of long-term debt   $ --     $ 71,550,000  
  Asset retirement obligations     --       265,470  
  Other current liabilities     277,893       9,105,846  
Total current liabilities     277,893       80,921,316  
Asset retirement obligations     --       8,915,407  
Other long-term accrued liabilities     --       823,005  
TOTAL LIABILITIES     277,893       90,659,728  
Series A Convertible Redeemable Preferred Stock     48,676,221       43,404,993  
Total stockholders' deficit     (25,911,407 )     (79,264,467 )
TOTAL LIABILITIES, MEZZANINE AND STOCKHOLDERS' DEFICIT   $ 23,042,707     $ 54,800,254  
                 
                 
 
GEOMET, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
 
    2014     2013  
                 
Net cash (used in) provided by operating activities   $ (10,779,911 )   $ 8,797,808  
                 
Net cash provided by investing activities     97,118,004       59,832,639  
                 
Net cash used in financing activities     (71,551,960 )     (67,756,400 )
                 
Increase in cash and cash equivalents     14,786,133       874,047  
                 
Cash and cash equivalents at beginning of period     8,108,272       7,234,225  
                 
Cash and cash equivalents at end of period   $ 22,894,405     $ 8,108,272  
                 
                 

Contact Information

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