Royale Energy, Inc. Reports Positive Cash Flow From Operations for 2012 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 (7,048) 0 Included in Net Loss Other Comprehensive Income, before tax 7,048 4,275 Income Tax Expense Related to Items of Other 0 1,240 Comprehensive Income 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 firstname.lastname@example.org http://www.royl.com
Royale Energy, Inc. Reports Positive Cash Flow From Operations for 2012
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