Belcor Reports $1.7-Million Net Loss for Fiscal Year

Belcor Inc. reported a net loss of $1.7 million for its fiscal year ended Oct. 31, a figure that includes a $1.4-million write-down of oil and gas property and equipment.

The results also included a $336,000 gain from the extinguishment of debt.

A year earlier, the Irvine-based company reported a net loss of $4.7 million, which included a $9.2-million gain on the restructuring of debt.

Revenue for the most recent fiscal year totaled $943,149, compared with $2.9 million for the prior year.

Separately, Belcor said it signed a letter of intent to acquire privately held A L Industries Inc. for $2 million in cash, notes and Belcor common stock. Belcor said it expects to complete the acquisition of the Santa Ana-based maker of specialized metal parts by March 15, subject to the completion of a definitive agreement.

Belcor currently has about 17 million common shares outstanding and will issue about 400,000 new shares to complete the acquisition.

In December, Belcor acquired Aargus Polybag Co., a Chicago-based maker of polyethylene bags for $6 million in notes and one million shares of Belcor common stock.

Belcor is the successor company to Transierra Exploration Corp., which changed its name in July 1985 to reflect its intention to diversify from its oil and gas interests.

The company retains some oil and gas producing properties, mostly in West Texas, but is attempting to sell those, a spokesman said.

Kurt Nicolai, Belcor’s vice president, said the company is planning another acquisition this year and “at least two more” acquisitions next year, thus further diversifying the company.

For its fiscal first quarter ended Jan. 31, Belcor said it expects an unspecified profit on revenue of about $800,000. For its fiscal second quarter to end April 30, the company said it anticipates an unspecified profit on revenue of about $2 million.