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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