Universal Bioenergy Announces Fiscal Third Quarter 2014 Financial
and Operating Results -- Sales Increase 107.35% to $58.29 Million
Total Operating Expenses Down 48.20% and Long-Term Debt Reduced
60.97%
IRVINE, CA--(Marketwired - May 30, 2014) - Universal Bioenergy
Inc., (OTC Pink: UBRG) (PINKSHEETS: UBRG), a publicly traded
independent diversified energy company, announced today that it has
filed its Quarterly Report on Form 10-Q for its fiscal third
quarter ended March 31, 2014 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 Our revenues for the three months period
ended March 31, 2014, increased significantly compared to the three
months period ended March 31, 2013.
Our sales for the three months ended March 31, 2014 were
$25,713,759, as compared to $12,400,975 for the same period ended
March 31, 2013. This resulted in an increase of $13,312,784 in
sales, or 107.35% for the three month period ended March 31, 2014,
over the same period last year.
Our sales for the nine months ended March 31, 2014 were
$58,291,498, as compared to $41,286,495 for the same period ended
March 31, 2013. This resulted in an increase of $17,005,003 in
revenues, or 41.19% for the nine month period ended March 31, 2014
over the same period last year.
Our Cost of Sales for the three and nine months ended March 31,
2014 were $25,689,003 and $58,234,315 respectively, as compared to
$12,382,943 and $41,224,465 for the same periods in 2013.
We incurred losses of $621,013 for the nine months ended March
31, 2014, and $1,618,898 for the same period in 2013. This resulted
in a reduction of $997,885 in our losses, or 61.64% for the nine
month period ended March 31, 2014, over the same period last year.
Our accumulated deficit since our inception through March 31, 2014
amounts to $22,698,833. We did not issue any common shares for
services for this period.
We incurred interest expenses of $409,775 for the nine month
period ended March 31, 2014. Excluding the value of the interest
expenses of $409,775, this would correspondingly reduce our net
loss of $621,013 down to an adjusted net loss of $211,238 for the
nine month period ending March 31, 2014. Based on an adjusted net
loss of $211,238, this loss equals only 0.0036% of our total
revenues of $58,291,498 for the nine month period ended March 31,
2014, as compared to 3.16% for the same period ended 2013.*
Operating Costs and Expenses Our Cost of Sales for the three
months ended March 31, 2014 were $25,689,003 as compared to
$12,382,523 for the same period in 2013, and our Cost of Sales for
the nine months ended March 31, 2014 were $58,234,315 as
compared to $41,224,465 for the same period in 2013. This was an
increase of $17,009,850 or 41.20% 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 March 31, 2014 were $188,286, as compared to $292,293
for the same period in 2013, and for the nine months ended March
31, 2014 they were $549,873 as compared to $1,061,553 for the same
period in 2013.
We reduced our total operating expenses from $1,061,553 for the
nine month period ending March 31, 2013, by a total of $511,680, or
by 48.20%, to $549,873 for the period ending March 31, 2014.
Based on our plans for growth and expansion, and increasing
revenues through sales of natural and other products, we believe we
will soon reduce our net losses down to zero; and then move our
company toward solid profitability. Since we are a high growth
company, growing by mergers and acquisitions, we generally expect
to have corresponding increases in costs reflected in our operating
expenses.
Assets Our "total assets" have increased by $3,170,177, or
25.63%, to $15,539,706 for the period ending March 31, 2014,
compared to $12,369,529 for the year ended June 30, 2013. This was
due to an increase 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
($1,752,218) for the period ending March 31, 2014, as compared to a
working capital deficit of ($1,021,031) for the period ending March
31, 2013. This increased our working capital deficit by $704,187 or
by 68.97%. 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.
The negative working capital for the period ending March 31, 2014,
is an occasional event experienced by many companies, and has not
had a significant negative effect on our operations. This is due to
our ability to raise capital, the contracts we have with our
utility customers, their strong S&P credit ratings, and their
consistent payment of our invoices on schedule.
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 nine months ended
March 31, 2014 and 2013 were as follows:
Cash Flows from
Operating Activities
Our cash, used in operating activities, for the nine months
ended March 31, 2014, was $69,125, as compared to cash used in
operating activities of $184,353 for the nine months ended March
31, 2013. 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 nine months ended
March 31, 2014 was $10,050 as compared to cash provided by
investing activities of $30,000 for the nine months ended March 31,
2013.
Cash Flows from
Financing Activities
Our cash provided by financing activities for the nine months
ended March 31, 2014 was $77,910, as compared to $215,855 for the
nine months ended March 31, 2013. The net cash used in financing
activities is primarily attributed to our Notes Payables.
Liabilities / Indebtedness Current liabilities increased to
$14,459,309 for the nine months ended March 31, 2014, compared to
$11,173,471 for the same period in 2013. This 29.40% increase was
primarily due to a $3,229,541 increase in accounts payable from the
purchasing costs and supplies of natural gas. Our long term
liabilities are $381,332 for the period ending March 31, 2014,
compared to $976,248 for the nine months ending March 31, 2013.
This resulted in a reduction of $594,916 in our long term
liabilities or 60.97%, for the nine month period ended March
31, 2014, over the same period last year. 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
pleased with the financial and operating results for the third
quarter of our fiscal year. The 41.19% increase in sales for this
period is a major accomplishment for us and continues to
demonstrate the success of our business model. We're very proud of
the hard work and efforts of our professional team at Universal and
NDR Energy Group for their contributions to improve our financial
and operating position this period. Our losses have been reduced,
and our long-term debt is down due to our aggressive strategy in
reducing our operating expenses and reducing the amount of outside
funds we have borrowed from our creditors. Our plans are to
continue to increase our revenues, reduce our net losses down
to zero and move our company toward solid profitability. This
should have a very positive effect on 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