EAST PROVIDENCE, R.I., March 17, 2011 /PRNewswire/ -- Today, Capital Properties, Inc. (OTCQX: CPTP) reported net income of $1,502,000 for the year ended December 31, 2010; for the year ended December 31, 2009, the Company had reported net income of $1,434,000. Based upon 6,599,912 shares outstanding, the basic income per common share for 2010 was $.23 and for 2009 was $.22.
Leasing revenues for 2010 increased $227,000 from the 2009 level due to scheduled increases in rentals under long-term land leases. Leasing expense increased $16,000 from 2009 due to legal fees in connection with two leases, an increase in property taxes and depreciation on the Steeple Street Building offset in part by the reversal of an allowance for a doubtful account of $40,000.
Petroleum storage facility revenues increased $52,000 from 2009 due to the May 1, 2010 annual cost-of-living adjustment of $82,000 under the lease for the petroleum storage facility. Petroleum storage facility expense increased $542,000 from 2009 due to costs of $550,000 in connection with the leak in a tank in August 2010.
General and administrative expenses for 2010 remained at the 2009 level.
In April 2010, the Company borrowed $6,000,000 for ten years from a local bank at an annual interest rate of 6 percent. Interest expense for 2010 was $248,000.
The Company determined that the expenditures in connection with the historic restoration of its Steeple Street Building qualified for federal historic income tax credits in 2010 totaling $588,000, which when applied, reduced the federal income tax provision for 2010 to zero.
Financial Summary |
||||
Years Ended December 31, 2010 and 2009 |
||||
2010 |
2009 |
|||
Revenues: |
||||
Leasing |
$3,135,000 |
$2,908,000 |
||
Petroleum storage facility |
3,808,000 |
3,756,000 |
||
6,943,000 |
6,664,000 |
|||
Expenses: |
||||
Leasing |
998,000 |
982,000 |
||
Petroleum storage facility |
2,867,000 |
2,325,000 |
||
General and administrative |
939,000 |
951,000 |
||
Interest |
248,000 |
-- |
||
Total expenses |
5,052,000 |
4,258,000 |
||
Income before income taxes |
1,891,000 |
2,406,000 |
||
Income tax expense: |
||||
Current |
142,000 |
936,000 |
||
Deferred |
247,000 |
36,000 |
||
389,000 |
972,000 |
|||
Net income |
$1,502,000 |
$1,434,000 |
||
Basic income per share, based upon 6,599,912 shares outstanding |
$.23 |
$.22 |
||
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.
SOURCE Capital Properties, Inc.
Share this article