Credo Petroleum (CRED) to Restate Q1 Numbers, Will Reduce EPS by 1c
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Price: $19.74 --0%
Financial Fact:
Depreciation, depletion and amortization: 2.34M
Today's EPS Names:
SVBT, ZEO, OTLK, More
Financial Fact:
Depreciation, depletion and amortization: 2.34M
Today's EPS Names:
SVBT, ZEO, OTLK, More
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Credo Petroleum Corporation (Nasdaq: CRED), will restate financial results for its first fiscal quarter of 2012. The information reported in this press release is subject to final review by the Company's independent accountants.
The financial statement adjustments are expected to reduce net income reported for the first quarter ended January 31, 2012 by $127,000, or $.01 per share. Restated net income is expected to be $913,000, or $.09 per share, compared to $1,040,000, or $.10 per share, previously reported. Restated EBITDA for the first quarter is expected to decline $99,000 to $3,743,000, compared to $3,842,000 as previously reported. The adjustments are also expected to reduce working capital at January 31, 2011 from $1,708,000 to a working capital deficit of $4,410,000.
With respect to the effect on working capital, the Company has previously reported that it expects to finance a portion of its $35,000,000 fiscal 2012 capital expenditure budget with bank borrowings. The accrual of liabilities for estimated well costs incurred but not yet billed by the operators is expected to cause a working capital deficit because the Company will not draw down its line of credit until the bills are actually received and become payable. This use of just-in-time financing will minimize the Company's borrowing costs but will also result in a working capital deficit during periods when the Company uses bank borrowing to finance a portion of its drilling budget.
The financial statement adjustments are expected to reduce net income reported for the first quarter ended January 31, 2012 by $127,000, or $.01 per share. Restated net income is expected to be $913,000, or $.09 per share, compared to $1,040,000, or $.10 per share, previously reported. Restated EBITDA for the first quarter is expected to decline $99,000 to $3,743,000, compared to $3,842,000 as previously reported. The adjustments are also expected to reduce working capital at January 31, 2011 from $1,708,000 to a working capital deficit of $4,410,000.
With respect to the effect on working capital, the Company has previously reported that it expects to finance a portion of its $35,000,000 fiscal 2012 capital expenditure budget with bank borrowings. The accrual of liabilities for estimated well costs incurred but not yet billed by the operators is expected to cause a working capital deficit because the Company will not draw down its line of credit until the bills are actually received and become payable. This use of just-in-time financing will minimize the Company's borrowing costs but will also result in a working capital deficit during periods when the Company uses bank borrowing to finance a portion of its drilling budget.
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