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 - Nov 6, 2013) - 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