Capital Properties, Inc. Announces Second Quarter 2010 Results

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Jul 30, 2010, 10:12 ET

EAST PROVIDENCE, R.I., July 30 /PRNewswire-FirstCall/ -- Today, Capital Properties, Inc. (Pink Sheets: CPTP) reported net income of $426,000 and $790,000 for the three and six months ended June 30, 2010. Based upon 6,599,912 shares, the basic income per common share for the same periods was $.06 and $.12. For the three and six months ended June 30, 2009, the Company had reported net income of $372,000 and $738,000, respectively. Based upon 6,599,912 shares, the basic income per common share for the same period was $.06 and $.11, respectively.

For the three and six months ended June 30, 2010, leasing revenue increased approximately $15,000 from 2009 due to the termination of the rent relief granted one tenant in 2009 and scheduled increases in rentals under long-term land leases. For the three and six months ended June 30, 2010, leasing expense increased $24,000 and $157,000 from 2009 due to higher legal fees in connection with litigation with two tenants and the hiring of a new employee. The increase was offset in part by the reversal of an allowance for doubtful accounts.

For the three and six months ended June 30, 2010, petroleum storage facility revenue remained at the 2009 level. The May 1, 2010 annual cost-of-living adjustment under the lease for the petroleum storage facility was $82,000. This increase was offset in part by lower levels of payments by the tenant for repairs. No contingent rent earned in 2010. For the three months ended June 30, 2010, petroleum storage facility expense decreased $45,000 from 2009 due to lower levels of repairs and maintenance. For the six months ended June 30, 2010, petroleum storage facility expense decreased $93,000 from 2009 due to lower levels of repairs and maintenance and lower legal fees, offset in part by the hiring of a new employee.

For the three and six months ended June 30, 2010, general and administrative expense remained at approximately the 2009 level.

In April 2010, the Company borrowed $6,000,000 from a bank. This loan bears interest at the rate of 6 percent per annum and has a term of ten years with repayments on a twenty-year amortization schedule (monthly principal payments of $25,000). For the three and six months ended June 30, 2010, interest was $64,000. In May 2010, the proceeds from the loan were used principally to fund a special dividend of $5,478,000 to shareholders, which represented the Company's earnings and profits as calculated for federal income tax purposes at December 31, 2009.

Financial Summary

	Three Months Ended		Six Months Ended
	June 30		June 30
	2010	2009	2010	2009
Revenues and other income:
Revenues:
Leasing	$775,000	$760,000	$1,490,000	$1,474,000
Petroleum storage facility	953,000	949,000	1,889,000	1,885,000
Total revenues and other income	1,728,000	1,709,000	3,379,000	3,359,000

Expenses:
Leasing	228,000	204,000	564,000	407,000
Petroleum storage facility	602,000	647,000	1,131,000	1,224,000
General and administrative	226,000	231,000	492,000	490,000
Interest	64,000	--	64,000	--
	1,120,000	1,082,000	2,251,000	2,121,000
Income before income taxes	$608,000	$627,000	$1,128,000	$1,238,000

Net income	$426,000	$372,000	$790,000	$738,000

Basic income per common share, based
upon 6,599,912 shares outstanding	$.06	$.06	$.12	$.11

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.