EAST PROVIDENCE, R.I., March 21, 2012 /PRNewswire/ -- Today, Capital Properties, Inc. (OTCQX: CPTP) reported net income of $2,032,000 for the year ended December 31, 2011; for the year ended December 31, 2010, the Company reported net income of $1,502,000. Based upon 6,599,912 shares outstanding, the basic income per common share for 2011 was $.31 and for 2010 was $.23.
Leasing revenues for 2011 increased $740,000 from 2010 due to scheduled increases in rentals under long-term land leases. Leasing expense increased $66,000 from 2010 due to higher depreciation and operating costs associated with the Steeple Street Building, an increase in real property taxes and the reversal of an allowance for doubtful accounts in 2010, offset by decreases in payroll due to the termination of one employee in 2010 and in professional fees.
Petroleum storage facility revenues increased $553,000 from 2010 principally due to the reimbursement by the tenant of the Terminal in 2011 of costs associated with the cleanup, inspection and repairs of two tanks totaling $511,000; costs of $550,000 had been recorded in 2010. As a result, petroleum storage facility expense decreased $384,000 in 2011, offset in part by costs associated with a pipeline breach in August 2011 and tank repairs.
General and administrative expenses in 2011 increased $29,000 from 2010 due to payroll and related costs.
In April 2010, the Company borrowed $6,000,000 for ten years from a local bank at an annual interest rate of 6 percent with monthly principal payments of $25,000 and a balloon payment due at maturity. In 2011, the Company made principal payments totaling $1,825,000, including $1,525,000 of prepayments. Any future prepayments will depend on the Company's level of available cash. Interest expense for 2011 and 2010 was $315,000 and 248,000, respectively.
The income tax provision for 2010 did not bear the customary relationship between income tax expense and pretax accounting income due to the Company's generation of a federal historic tax credit, resulting in an effective tax rate of 21 percent.
Years Ended December 31, 2011 and 2010
Petroleum storage facility:
Reimbursement of tank repairs
Petroleum storage facility:
General and administrative
Income before income taxes
Income tax expense:
Basic income per share, based upon 6,599,912 shares outstanding
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.
Barbara J. Dreyer, Treasurer
SOURCE Capital Properties, Inc.