Universal Bioenergy Announces 2013 Financial and Operating Results With Revenues of $60.21 Million
Universal Bioenergy Announces 2013 Financial and Operating Results With Revenues of $60.21 Million
Revenues Increased 5.04%, and Company Posts Adjusted Net Profit of $1,346,891
IRVINE, CA -- (Marketwired) -- 11/06/13 -- Universal Bioenergy Inc., (OTCQB: UBRG), a publicly traded independent diversified energy company, announced today that it has filed its Annual Report on Form 10-K for the fiscal year ended June 30, 2013 with the Securities and Exchange Commission. The Annual Report contains the Company's audited financial statements, management's discussion and analysis (MD&A), its plans and future outlook and other disclosures.
The Company projects that it will continue its growth in revenues in the next 12 months through more acquisitions, gas storage, gas trading, and higher sales of natural gas, LNG, propane, oil, coal and electric power.
Results of Operations
Revenues Our primary revenues from this period are from the sale of natural gas and propane. Our revenues for the twelve months ended June 30, 2013, were $60,219,864 as compared to $57,327,732 for the same period in 2012. This resulted in an increase of $2,892,132 in revenues, or 5.04% from the previous year. Our Cost of Sales for this period was $60,136,459. This has resulted in a gross profit margin for this period of $83,405.
We incurred losses of $623,518 for the twelve months ended June 30, 2013, and $4,003,540 for the same period in 2012. Our accumulated deficit since our inception through June 30, 2013, amounts to $22,077,821. We issued 1,000,000 of common shares for services with an aggregate fair value of approximately $3,800 that was included in the $1,235,438 in general and administrative expenses for the twelve month period ended June 30, 2013. Excluding the value of the common shares of $3,800 from the general and administrative expenses of $1,235,438 would reduce the actual net G&A expenses to $1,231,638. We also incurred interest expenses of $1,970,409. Excluding the value of the common stock that was issued for services, and interest expenses which together totaled $1,970,409, would correspondingly reduce our net loss of $623,518 to an adjusted net profit of $1,346,891 for the period ending June 30, 2013. Based on an adjusted net profit of $1,346,891, this adjusted net profit equals 2.24% of our total revenues of $60,219,864 for the period ended June 30, 2013*.
Operating Costs and Expense Our Cost of Sales for the twelve months ended June 30, 2013, were $60,136,459 as compared to $57,195,130 for the same period in 2012. This was an increase of $2,941,329 or 5.14% in our Cost of Sales. Our primary business operations consist of the marketing and distribution of natural gas, propane and coal to our major customers nationwide. Our general and administrative expenses (G&A) for the twelve months ended June 30, 2013, were $1,235,438 as compared to $1,734,780 for 2012. This resulted in a decrease of $499,342 or 28.78% in our G&A expenses. We pay our employees and consultants largely in common shares as our cash availability is currently limited.
Our "total operating expenses" and "other expenses" decreased from $4,136,142 for the period ending June 30, 2012 by a total of $3,429,219 or by 83%, to $706,923 for the period ending June 30, 2013. This decrease of $3,429,219 is equal to 5.70% of our revenues of $60,136,459.
Assets Our "total assets" have increased by $3,711,836, or 42.87%, to $12,369,529 for the period ending June 30, 2013, compared to $8,657,693 for the same period in 2012. A total of $3,683,387 of that resulted from an increase in the amount of our Accounts Receivables from the sales of natural gas.
Working Capital Our working capital requirements decreased, and we incurred significant fluctuations in our working capital for this period. This resulted in a working capital deficit of $1,021,031 for the period ending June 30, 2013, as compared to a working capital deficit of $1,667,555 for the period ending June 30, 2012. This decreased our working capital deficit by $646,524, or by 38.77%. The working capital deficit was primarily due to the costs of pursuing acquisitions, funding of NDR Energy's operating expenses, the amount of funds borrowed from our creditors, purchase of natural gas inventories, our capital spending exceeding our cash flows from operations, and from the increase in accrued expenses.
Cash Flows The prices and margins in the energy industry are normally volatile, and are driven to a great extent by market forces over which we have no control. Taking into consideration other extenuating factors, as these prices and margins fluctuate, this would result in a corresponding change in our revenues and operating cash flows. Our cash flows for the twelve months ended June 30, 2013, and 2012 were as follows:
Cash Flows from Operating Activities Our cash used in operating activities for the twelve months ended June 30, 2013 was (786,758) as compared to ($1,495,558) for the twelve months ended June 3, 2012. The decrease of $708,800 or 47.39% was primarily attributable to the accruing of certain management salaries, issuing stock for professional services in lieu of cash payments, the reduction of Notes payable, and interest with stock in lieu of cash payments.
Cash Flows from Investing Activities Cash used in investing activities for the year ended June 30, 2013, was $30,000 as compared to cash used by investing activities of $2,700,000 for the twelve months ended June 30, 2012. This was a decrease of $2,670,000, or a decrease of 98.89%, due to our reduction in cash needs for acquisitions.
Cash Flows from Financing Activities Our cash provided by financing activities for the year ended June 30, 2013, was $817,715 as compared to $4,186,107 for the year ended June 30, 2012. The net cash provided by financing activities is primarily attributable to our Notes Payables issued.
Liabilities / Indebtedness Current liabilities increased to $10,197,223 for the twelve months ended June 30, 2013, compared to $7,159,403 for the same period in 2012. This 42.43% increase was primarily due to a $3,754,004 increase in accounts payable from the purchasing costs and supplies of natural gas. Our long-term liabilities are $976,248 for the period ending June 30, 2013, compared to $2,233,882 for the year ending June 30, 2012. This resulted in a decrease of $1,257,634 or 56.30% in our long-term liabilities. This increase was primarily due to the conversion of the accrued compensation, expenses of certain officers and employees into long term notes payable, and the conversion of many of our creditors Notes into common stock in our efforts to reduce our current and long-term liabilities, improve our cash flow, and improve the Balance Sheet. In the past twelve months the Company has significantly reduced its borrowings from its creditors to further reduce its short and long-term debt.
Financial Restructuring Plan to Reduce Debt and Improve Balance Sheet Management has improved the Company's financials and restructured its Balance Sheet, by reducing its long-term debt and converting $3,234,775 in outstanding debt on the Balance Sheet to shares of common stock and issued the shares to its creditor. The benefit to the Company was to eliminate this $3,234,775 of outstanding long-term debt and liabilities owed by the Company, reduce our interest expenses, enhance our financial position and strengthen the Balance Sheet. Our long-term liabilities are $976,248 for the period ending June 30, 2013
Universal's President Vince M. Guest says, "We are very proud of our results this past year, and believe our business strategy is working very well. We feel this Annual Report affirms the great progress we continue to make, and shows our ability to achieve our goals. These results are a tribute to the diligent efforts of the staff of Universal Bioenergy and NDR Energy Group. Our plans for fiscal 2013 year are to generate higher revenues, solid earnings, reduce operating costs and improve returns on invested capital. We believe this should have a positive impact on our stock price and deliver greater value to our shareholders and investors."
The full Form 10-K Annual Report is available for viewing on the SEC's website and it is also available at our website at www.universalbioenergy.com Investor Relations, SEC Filings section. *This disclosure of information as presented is a non-GAAP accounting measure, and is not based on GAAP accounting principles or guidelines.
About Universal Bioenergy Inc. Founded in 2004, Universal Bioenergy Inc., is a publicly traded independent diversified energy company that produces and markets natural gas, petroleum, coal and propane. We market energy resources to the largest public utilities, electric power producers and local gas distribution companies in the U.S., that serve millions of commercial, industrial and residential customers. We are also engaged in the acquisition and development of existing or recently discovered oil and gas fields, leases and surface coal mines. For more information visit www.universalbioenergy.com
Safe Harbor Statement - There are matters discussed in this media information that are forward looking statements within the meaning of Rule 175 under the Securities Act of 1933 and Rule 3b-6 under the Securities Exchange Act of 1934, and are subject to the safe harbor created by those rules. Such statements are only forecasts and actual events or results may differ materially from those discussed. For a discussion of important factors which could cause actual results to differ from the forward looking statements, refer to Universal Bioenergy Inc.'s most recent annual report and accounts and other SEC filings. The company undertakes no obligation to update publicly, or revise, forward looking statements, whether as a result of new information, future events or otherwise, except to the extent legally required.
For inquiries contact: Media Relations: Solomon Ali 704-837-5705