OREANDA-NEWS. Barnwell Industries, Inc. (NYSE:BRN) today reported net income of $775,000 ($0.09 per share) and a net loss of $2,242,000 ($0.27 per share) for the three and nine months ended June 30, 2016, respectively, as compared to net income of $971,000 ($0.12 per share) and a net loss of $1,513,000 ($0.18 per share) for the three and nine months ended June 30, 2015, respectively.

Mr. Morton H. Kinzler, Chairman and Chief Executive Officer of Barnwell, commented, “This quarter’s net income was largely due to increased land investment profits, due to an increase in revenues from lots sold this quarter as compared to the prior year quarter and a corresponding increase in equity in earnings from affiliates, which increased $1,212,000, due to the sale of one lot for $20,000,000 by the Kukio Resort land development partnerships in which the Company indirectly owns a 19.6% non-controlling ownership interest. As a result of the success of the Kukio Resort land development partnerships, the Company received $5,320,000 in distributions in the quarter ended June 30, 2016.

“During the quarter ended June 30, 2016 the Company had a $1,154,000 impairment of our oil and natural gas properties due to low oil and natural gas prices and our 80%-owned Kaupulehu 2007, LLLP venture closed on the sale of the remaining home it built for a $190,000 gain, due to the venture having previously written down the carrying value of the house. Due to this sale the venture repaid in full all of its outstanding debt and now owns only one vacant residential lot which is held for sale. With Kaupulehu 2007, LLLP’s repayment of all of its debt this past quarter, the Company now has no bank debt and at June 30, 2016 Barnwell’s cash and cash equivalents and working capital stood at $17,433,000 and $17,107,000, respectively, as the Company pursues new opportunities.

“The loss for the nine months ended June 30, 2016 increased as compared to the nine months ended June 30, 2015 despite a $1,465,000, 23%, reduction in general and administrative expenses, due to the aforementioned $1,154,000 impairment of our oil and natural gas properties, and decreased oil and gas operating results as oil and natural gas prices decreased 36% and 48%, respectively, from the nine months ended June 30, 2015.”

 

COMPARATIVE OPERATING RESULTS
(Unaudited)
                 
    Three months ended   Nine months ended
    June 30,   June 30,
      2016       2015       2016       2015  
                 
Revenues   $   8,216,000     $   4,931,000     $ 11,591,000     $ 14,455,000  
                 
Net income (loss)   $  775,000     $   971,000     $ (2,242,000 )   $ (1,513,000 )
                 
Net income (loss) per share - basic and diluted    $    0.09     $   0.12     $   (0.27 )   $   (0.18 )
                 
Weighted-average shares and equivalent shares outstanding - basic and diluted       8,277,160         8,277,160         8,277,160         8,277,160