Capital Properties, Inc. Announces 2012 Results
EAST PROVIDENCE, R.I., March 12, 2013 /PRNewswire/ -- Capital Properties, Inc. (OTCQX: CPTP) reported net income of $2,013,000 for the year ended December 31, 2012; for the year ended December 31, 2011, the Company reported net income of $2,032,000. Based upon 6,599,912 shares outstanding, the basic income per common share for both 2012 and 2011 was $.31.
Leasing revenues for 2012 increased $327,000 from 2011 due to scheduled increases in rentals under long-term land leases. Leasing expense remained at the 2011 level.
In June 2011, the tenant of the petroleum storage facility ("the Facility") reimbursed the Company $458,000 for certain costs associated with the cleanup, inspection and repair of a tank (which costs were recorded in 2010) and an additional $53,000 for tank repairs. Exclusive of these amounts, petroleum storage facility revenues increased $104,000 from 2011 due to scheduled annual cost-of-living adjustments under the lease for the Facility. In connection with a pipeline breach in 2011 caused by Cardi Construction, the Company incurred total costs of $363,000 in responding to the emergency and repairing the pipeline. At December 31, 2011, the Company determined that Cardi had assumed responsibility for $273,000 which was subsequently paid by them. The remaining $90,000 was paid by Cardi in May 2012, which amount was recorded as a reduction of expense. Exclusive of this amount, petroleum storage facility expense remained approximately at the 2011 level. However, increases in payroll and related costs and professional fees in connection with the preliminary exercise in April 2012 by the tenant of the Facility of its option to purchase the Facility were offset in part by lower levels of repair and maintenance costs.
General and administrative expenses in 2012 increased $249,000 from 2011 due principally to costs associated with the extraordinary dividend and consulting fees incurred in connection with marketing the Facility.
In April 2010, the Company borrowed $6,000,000 from a Bank. The loan bore interest at an annual rate of 6% and had a term of ten years with repayments on a 20-year amortization schedule (monthly principal payments of $25,000 plus interest) and a balloon payment due in April 2020 when the loan was due to mature. In 2012 and 2011, the Company made principal prepayments totaling $1,000,000 and $1,525,000, respectively. 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 balance of the 2010 debt to the Bank and borrowed an additional $3,025,000, which was used to pay part of an extraordinary dividend discussed below. The existing note to the Bank was amended and now bears interest at an annual rate of 3.34% for the first five years. The loan has a 10-year term with repayments on a 20-year amortization schedule (monthly principal payments of $24,000 plus interest) and a balloon payment of $2,869,000 in December 2022 when the loan matures.
In December, 2012, the Board of Directors of the Company declared an extraordinary dividend of $2.25 per share to shareholders of record on December 17, 2012. On December 27, 2012, the Company paid out $3,063,000 in cash and issued $11,787,000 in Dividend Notes due December 26, 2022. The Dividend Notes are unsecured general obligations of the Company bearing interest at the annual rate of 5% payable semi-annually on June 15 and December 15 of each year.
For the years ended December 31, 2012 and 2011, interest expense was $207,000 and $315,000, respectively. Interest expense was lower due to decreased debt levels prior to the refinancing of the bank loan and the issuance of the Dividend Notes in late December 2012.
| Financial Summary |
|||
| Years Ended December 31, 2012 and 2011 |
|||
| 2012 |
2011 |
||
| Revenues: |
|||
| Leasing |
$ 4,202,000 |
$ 3,875,000 |
|
| Petroleum storage facility: |
|||
| Contractual |
3,954,000 |
3,850,000 |
|
| Reimbursement of tank repairs |
-- |
511,000 |
|
| 8,156,000 |
8,236,000 |
||
| Expenses: |
|||
| Leasing |
1,063,000 |
1,064,000 |
|
| Petroleum storage facility: |
|||
| Operating |
2,388,000 |
2,303,000 |
|
| Pipeline rupture |
-- |
90,000 |
|
| Tank repairs |
-- |
90,000 |
|
| General and administrative |
1,217,000 |
968,000 |
|
| Interest |
207,000 |
315,000 |
|
| Total expenses |
4,875,000 |
4,830,000 |
|
| Income before income taxes |
3,281,000 |
3,406,000 |
|
| Income tax expense (benefit): |
|||
| Current |
1,519,000 |
1,285,000 |
|
| Deferred |
(251,000) |
89,000 |
|
| 1,268,000 |
1,374,000 |
||
| Net income |
$ 2,013,000 |
$ 2,032,000 |
|
| Basic income per share, based upon 6,599,912 shares |
|||
| outstanding |
$ .31 |
$ .31 |
|
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 and10-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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