Capital Properties, Inc. Announces First Quarter 2013 Results

EAST PROVIDENCE, R.I., April 25, 2013 /PRNewswire/ -- Today, Capital Properties, Inc. (OTCQX: CPTP) reported net income of $340,000 for the three months ended March 31, 2013; the net income for the three months ended March 31, 2012 was $511,000.  Based upon 6,599,912 shares outstanding, the basic income per common share for the three months ended March 31, 2013 and 2012 was $.05 and $.08, respectively.

For the three months ended March 31, 2013, leasing revenue increased $52,000 from 2012 due to scheduled increases in rentals under long-term land leases and increases under short-term leases.  Leasing expense increased $13,000 from 2012 due to increases in expenses for the Steeple Street Building, offset in part by a decrease in legal fees.

For the three months ended March 31, 2013, petroleum storage facility revenue increased $23,000 due to the May 1, 2012 annual cost-of-living adjustment of $99,000 under the lease for the petroleum storage facility ("the Facility").  Petroleum storage facility expense increased due to increases in professional fees in connection with the preliminary exercise in April 2012 by the tenant of the Facility of its option to purchase the Facility. 

On May 1, 2012, the Company gave the tenant of the Facility notice of non-extension of its lease and the lease will expire on April 30, 2013.  The Tenant is solely responsible for the removal of its inventory and the cleaning of the tanks prior to May 1, 2013 and the costs associates with these activities, which activities were commenced by the tenant in late March 2013.  The Company is marketing the Facility for lease to a single or multiple users for temporary storage and distribution of heating oil and Ultra Low Sulfur Diesel.    

For the three months ended March 31, 2013, general and administrative expense increased $92,000 due to legal and consulting fees incurred in connection with the marketing of the Facility. 

Interest expense from bank borrowing decreased $12,000 from 2012.  In December 2012, the Company and the bank entered into an Amended and Restated Loan Agreement pursuant to which the Company refinanced the $2,700,000 remaining on the 2010 debt to the Bank and borrowed an additional $3,025,000.  However, the interest rate decreased from 6% to 3.34% for the first five years resulting in a reduction in bank interest expense.  Interest expense related to dividend notes results from the issuance by the Company in December 2012 of $11,787,000 in principal face amount of 5% dividend notes in connection with the payment of a special dividend.

At the Annual Meeting of shareholders held on April 23, 2013, the shareholders approved Amended and Restated Articles of Incorporation which, among other things, converted all outstanding Class B common stock into an equivalent number of shares of Class A common stock, removed class voting for directors and certain ownership restrictions.

Financial Summary

Three Months Ended March 31, 2013 and 2012








2013


2012

Revenues:





   Leasing


$ 1,064,000


$ 1,012,000

   Petroleum storage facility


999,000


976,000

      Total revenues


2,063,000


1,988,000






Expenses:





   Leasing


283,000


270,000

   Petroleum storage facility


661,000


551,000

   General and administrative


355,000


263,000

   Interest on notes:





      Bank


49,000


61,000

      Dividend notes


152,000


--

         Total expenses


1,500,000


1,145,000






Income before income taxes


$ 563,000


$   843,000






Net income


$  340,000


$   511,000






Basic income per share, based upon 6,599,912





   shares outstanding


$.05


$.08

 

Capital Properties, Inc. and its subsidiaries operate in two segments:  (1) Leasing and (2) Petroleum Storage.  The leasing segment consists of the long-term leasing of certain of its real estate interests in downtown Providence, Rhode Island for commercial development, the leasing of a portion of a building and the leasing of locations along interstate and primary highways in Rhode Island and Massachusetts for outdoor advertising purposes.  The petroleum storage segment consists of the operating of its petroleum storage facility in East Providence, Rhode Island.

Certain written statements made in this press release may contain "forward-looking statements" which represent the Company's expectations or beliefs concerning future events.  Certain risks, uncertainties and other important factors are detailed in reports filed by the Company with the Securities and Exchange Commission, including Forms 8-K, 10-K and 10-Q.  The Company cautions that these statements are further qualified by important factors that could cause actual results to differ materially from those in the forward-looking statements.

CONTACT:

Barbara J. Dreyer, Treasurer
(401) 435-7171

SOURCE Capital Properties, Inc.



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