American Vantage Companies Announces Fiscal Year Results.Business Editors LAS VEGAS--(BUSINESS WIRE)--Oct. 30, 2000 American American, river, 30 mi (48 km) long, rising in N central Calif. in the Sierra Nevada and flowing SW into the Sacramento River at Sacramento. The discovery of gold at Sutter's Mill (see Sutter, John Augustus) along the river in 1848 led to the California gold rush of Vantage Companies (Nasdaq:AVCS AVCS Advanced Vehicle Control System AVCS Advanced Vidicon Camera System AVCS Automatic Vehicle Control Systems AVCS Active Vibration Control System AVCS Attitude and Velocity Control Subsystem AVCS Air Vehicle Control System AVCS Active Valve Control System ) (the "Company") announced today the results of its operations for the fiscal year ended July July: see month. 31, 2000 ("Fiscal 2000"). Revenues for Fiscal 2000 decreased due to the premature termination by the Table Mountain Tribe tribe [Lat., tribus: the tripartite division of Romans into Latins, Sabines, and Etruscans], a social group bound by common ancestry and ties of consanguinity and affinity; a common language and territory; and characterized by a political and economic ("Tribe") of agreements the Company had for providing consulting services Noun 1. consulting service - service provided by a professional advisor (e.g., a lawyer or doctor or CPA etc.) service - work done by one person or group that benefits another; "budget separately for goods and services" to the Table Mountain Casino casino or cassino (both: kəsē`nō). 1 Card game played with a full deck by two to four players. Its origins are obscure though it probably traces back to the Italian game of Scopa. . The Company previously filed a lawsuit lawsuit: see procedure; tort. against the Tribe to recover damages as a result of the termination and the Tribe had filed a counter claim against the Company. In September September: see month. 2000, the lawsuit was dismissed from the U.S. District Court -- Eastern District of California California (kăl'ĭfôr`nyə), most populous state in the United States, located in the Far West; bordered by Oregon (N), Nevada and, across the Colorado River, Arizona (E), Mexico (S), and the Pacific Ocean (W). for lack of subject matter jurisdiction and not based on the merits on the merits adj. referring to a judgment, decision or ruling of a court based upon the facts presented in evidence and the law applied to that evidence. A judge decides a case "on the merits" when he/she bases the decision on the fundamental issues and considers of the case. The Company intends to file a similar suit in the California Superior Court and will vigorously pursue its litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. against the Tribe to enforce the provisions of its contracts with the Tribe. In Fiscal 2000, the Company recorded revenues of $589,000 as compared to revenues of $6,660,000 in the year ended July 31, 1999 ("Fiscal 1999"). Recruitment and Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the revenues in Fiscal 2000 were derived from the Company's new 80% owned subsidiary, Placement 2000.Com Inc. ("Placement 2000"). Placement 2000 had been developing a website for a resume and job-posting database for information technology candidates as well as resume forwarding and recruitment "split" marketing websites. Placement 2000 also operates a traditional job recruitment business. Placement 2000 is in need of additional working capital. The Company is considering its strategic alternatives with respect to this subsidiary but no final decision has been made. Revenues in Fiscal 1999 were composed of casino consulting fees. During Fiscal 2000, the Company began a corporate restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). to divest To deprive or take away. Divest is usually used in reference to the relinquishment of authority, power, property, or title. If, for example, an individual is disinherited, he or she is divested of the right to inherit money. itself of its non-core assets. Although the restructuring has not been finalized See finalization. , the Company intends to sell certain of its principal assets in order to provide additional cash resources sufficient to acquire, merge into or make an investment in an existing business or businesses. The Company is currently reviewing opportunities in order to maximize its resources. The restructuring included the closure of the WCW WCW World Championship Wrestling WCW Wellesley Centers for Women WCW West Coast Watchers Nitro Grill Grill may refer to: In food:
The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. during the phase-out of the restaurant in August and September 2000. Operating losses, net of income tax benefits, from the discontinued dis·con·tin·ue v. dis·con·tin·ued, dis·con·tin·u·ing, dis·con·tin·ues v.tr. 1. To stop doing or providing (something); end or abandon: restaurant operation totaled $968,000 and $455,000 in Fiscal 2000 and Fiscal 1999, respectively. The Company's net loss from continuing operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the for Fiscal 2000 was $1,765,000 ($0.36 basic and diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. loss per share) and in Fiscal 1999 net income from continuing operations was $2,481,000 ($0.49 basic earnings per share and $0.47 diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of ). Net loss was $3,852,000 ($0.79 basic and diluted loss per share) and net income was $2,026,000 ($0.40 basic earnings per share and $0.38 diluted earnings per share) for Fiscal 2000 and Fiscal 1999, respectively. This press release may contain forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. , which are subject to risks and uncertainties, including the lack of the Company's experience in managing an Internet business, the uncertain acceptance of the Internet, as well as the existing and potential competitors in the Internet business. The Company's actual results may differ materially from those described in any forward-looking statements. Additional information concerning potential risk factors that could affect the Company's business and financial results are included in the Company's filings with the Securities and Exchange Commission. They can also be found on the Company's website at www.americanvantage.com and on the Securities and Exchange Commission's website at www.sec.gov.
American Vantage Companies
Consolidated Balance Sheets
July 31, 2000 and 1999
2000 1999
ASSETS
Current assets:
Cash and cash equivalents $ 7,307,000 $12,626,000
Accounts receivable 280,000 175,000
Mortgage notes receivable
and accrued interest 1,489,000 1,500,000
Refundable income taxes 1,708,000 219,000
Deferred income tax asset 641,000 135,000
Prepaid expenses 75,000 41,000
Total current assets 11,500,000 14,696,000
Property and equipment, net 241,000 163,000
Land held for investment
or development 4,894,000 5,105,000
Investment in unconsolidated
subsidiary 2,038,000 592,000
Deferred income tax asset 92,000 191,000
Goodwill, net 250,000 --
Net assets of discontinued
operation 232,000 2,437,000
Other assets - principally
restricted cash in 2000 538,000 24,000
$19,785,000 $23,208,000
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 460,000 $ 559,000
Accrued expenses 330,000 167,000
Net liabilities of
discontinued operation -- --
Current portion of capitalized
lease obligations 20,000 --
Total current liabilities 810,000 726,000
Long-term liabilities:
Capitalized lease obligations,
less current portion 12,000 --
Minority interest in consolidated
subsidiary 88,000 --
Commitments and contingency -- --
Stockholders' equity:
Common stock, $.01 par; 30,000,000
shares authorized; shares issued
and outstanding 4,858,256-2000;
4,887,000-1999 49,000 49,000
Preferred stock, $.01 par;
10,000,000 shares authorized;
shares issued and outstanding - none -- --
Capital in excess of par 2,941,000 2,974,000
Capital in excess of par -
stock options 278,000 --
Retained earnings 15,607,000 19,459,000
18,875,000 22,482,000
$19,785,000 $23,208,000
American Vantage Companies
Consolidated Statements of Income (Loss)
Years Ended July 31, 2000 and 1999
2000 1999
Revenues:
Casino consulting fees $ -- $ 6,660,000
Fees and commissions -
recruitment and Internet 589,000 --
589,000 6,660,000
Costs and expenses:
Casino consulting 485,000 1,828,000
Death care operations 301,000 47,000
Recruitment and Internet operations 1,167,000 --
General and administrative 2,103,000 1,179,000
Amortization and depreciation 84,000 34,000
Minority interest in consolidated
subsidiary (118,000) --
Loss of unconsolidated subsidiary 103,000 608,000
4,125,000 3,696,000
Income (loss) from continuing
operations (3,536,000) 2,964,000
Other income (expense):
Interest income 954,000 941,000
Interest expense (3,000) (42,000)
Miscellaneous 3,000 --
954,000 899,000
Income (loss) from continuing
operations before income taxes (2,582,000) 3,863,000
Income tax benefit (expense):
Current:
State -- (115,000)
Federal 962,000 (1,526,000)
Deferred:
State (49,000) 48,000
Federal (96,000) 211,000
817,000 (1,382,000)
Income (loss) from continuing
operations (1,765,000) 2,481,000
Discontinued operation:
Loss from operations of discontinued
operation, net of income tax benefit
of $498,000 in 2000 and $235,000 in
1999 (968,000) (455,000)
Estimated loss on disposal of
discontinued operation, including
provision of $101,000 for operating
losses during phase-out period, less
applicable income tax benefits of
$577,000 (1,119,000) --
Net income (loss) $ (3,852,000) $ 2,026,000
Earnings (loss) per common share - basic:
Income from continuing operations $ (0.36) $ 0.49
Discontinued operation (0.43) (0.09)
Net income (loss) $ (0.79) $ 0.40
Earnings (loss) per common share
- diluted:
Income from continuing operations $ (0.36) $ 0.47
Discontinued operation (0.43) (0.09)
Net income (loss) $ (0.79) $ 0.38
Weighted average number of common
shares and common share equivalents:
Basic 4,880,000 5,003,000
Stock options and warrants -- 247,000
Diluted 4,880,000 5,250,000
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