Universal Bioenergy Announces Fiscal Second Quarter Financial
Results -- Sales up 12.78% to $32.57 Million, Expenses Down 53.00%,
Debt Reduced 25.60%
IRVINE, CA--(Marketwired - Mar 6, 2014) - Universal Bioenergy
Inc., (OTCQB: UBRG), a publicly traded independent diversified
energy company, announced today that it has filed its Quarterly
Report on Form 10-Q for its fiscal second quarter ended December
31, 2013 with the Securities and Exchange Commission. The Report
contains the Company's financial statements, management's
discussion and analysis (MD&A), its plans and future outlook
and other disclosures. The Results of Operations was excerpted from
the Form 10-Q Report.
The Company projects that it will continue to experience
significant growth in revenues in the next 12 months through higher
sales of natural gas, propane, petroleum products, coal and
electric power.
Results of Operations
Revenues Our revenues for the three months period ended December
31, 2013, increased compared to the three months period ended
December 30, 2012. Our primary revenues from this period are from
the sale of natural gas and propane. Our revenues for the
three and six months ended December 31, 2013 were $18,705,137 and
$32,577,523 respectively, as compared to $13,322,660 and
$28,885,520 respectively for the same periods in 2012. This
resulted in an increase of $3,692,003 in revenues or 12.78% over
the previous year.
Our Cost of Sales for the three and six months ended December
31, 2013 were $18,685,525 and $32,545,212 respectively, as compared
to $13,303,088 and $28,841,943 for the same periods in 2012.
We incurred losses of $461,400 for the six months ended December
31, 2013; and $874,770 for the same period in 2012. Our accumulated
deficit since our inception through December 31, 2013 amounts to
$22,539,221. We did not issue any common shares for services for
this period which had an aggregate fair value of approximately
$0.00 that was included in the $360,281 in general and
administrative expenses for the six month period ended December 31,
2013.
We also incurred interest expenses of $295,204 for the six month
period ended December 31, 2013. Excluding the value of the common
stock that was issued for services and interest expenses, which
together totaled $295,204, would correspondingly reduce our net
loss of $461,400 to an adjusted net loss of $166,196 for the three
month period ending December 31, 2013. Based on an adjusted net
loss of $166,196, this loss equals only 0.51% of our total revenues
of $32,577,739 for the six month period ended December 31, 2013, as
compared to 6.69% for the same period ended 2012.*
Operating Costs and Expenses Our Cost of Sales for the three
months ended December 31, 2013 were $18,685,525 as compared to
$13,303,088 for the same period in 2012, and our Cost of Sales for
the six months ended December 31, 2013 were $32,545,312 as compared
to $28,841,943 for the same period in 2012. This was an increase of
$3,703,369 or 12.84% in our Cost of Sales. Our primary
operation is the marketing of natural gas, propane and coal to our
customers. Our total operating expenses for the three months ended
December 31, 2013 were $205,050, as compared to $407,702 for the
same period in 2012 and for the six months ended December 31, 2013
were $361,589 as compared to $769,261 for the same period in
2012. We pay our employees and consultants largely in common
shares as our cash availability is currently limited.
We decreased our total operating expenses from $769,261 for the
six month period ending December 31, 2012, by a total of $407,672,
or by 53.00%, to $361,589 for the period ending December 31,
2013.
Assets Our "total assets" have decreased by $3,142,823, or
25.41%, to $9,226,706 for the period ending December 31, 2013,
compared to $12,369,529 for the year ended June 30, 2013. This was
due to a decrease in the amount of our Accounts Receivables from
the sales of natural gas.
Working Capital Our working capital requirements increased, and
we incurred significant fluctuations in our working capital for
this period. This resulted in a working capital deficit of
($1,547,430) for the period ending December 31, 2013, as compared
to a working capital deficit of ($1,021,031) for the period ending
December 31, 2012. This increased our working capital deficit by
$526,399 or by 51.56%. 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 six months ended
December 31, 2013 and 2012 were as follows:
Cash Flows from
Operating Activities Our cash, used in operating
activities, for the six months ended December 31, 2013, was
$218,245, as compared to cash used in operating activities of
$1,429,832 for the six months ended December 31, 2012. The
decrease was primarily attributable to amortization of beneficial
conversion feature, the accruing certain management salaries, and a
reduction of prepaid expenses.
Cash Flows from
Investing Activities Cash used in investing activities
for the six months ended December 31, 2013 was $40,050 as compared
to cash provided by investing activities of $0.00 for the six
months ended December 31, 2012.
Cash Flows from
Financing Activities Our cash provided by financing
activities for the six months ended December 31, 2013 was $259,550,
as compared to $569,067 for the six months ended December 31, 2012.
The net cash used in financing activities is primarily attributed
to our Notes Payables.
Liabilities / Indebtedness Current liabilities decreased to
$7,586,534 for the six months ended December 31, 2013, compared to
$10,197,223 for the same period in 2012. This 25.60% decrease was
primarily due to a $3,078,704 decrease in accounts payable from the
purchasing costs and supplies of natural gas. Our long term
liabilities are $341,653 for the period ending December 31, 2013,
compared to $976,248 for the six months ending December 31, 2012.
In the past twelve months the Company has significantly reduced its
borrowings from its creditors to further reduce its short and
long-term debt.
Universal's President Vince M. Guest states, "We are very
excited about the financial and operating results for the second
quarter of our fiscal year. Our sales increase of 12.78% is very
significant, and puts us back in the mode of a double-digit high
growth company. Everyone at Universal and NDR Energy Group worked
very hard to improve our financial position by reducing our
operating expenses by 53.00%, and decreasing our liabilities by
25.60%. We have some very exciting plans for the rest of the fiscal
year, and anticipate that these plans could produce higher sales
and begin to generate positive earnings in the next six months. We
are working on a number of significant energy transactions
that we anticipate closing soon, that should have a very
positive effect on our stock price and our shareholders."
The full Form 10-Q Quarterly 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