CANAL CAPITAL REPORTS 1991 RESULTS
CANAL CAPITAL REPORTS 1991 RESULTS NEW YORK, Dec. 9 /PRNewswire/ -- Canal Capital Corporation
(NYSE: COW) today reported a net loss of $5,300,000, or $1.25 per common share, for the fiscal year ended Oct. 31, 1991, as compared with a net loss of $4,020,000, or $1.03 per common share, for the prior fiscal year.
The 1991 loss was due primarily to reduced operating income from Canal's art and investing operations. This was partially offset by a stronger contribution to operating income from real estate operations than the previous year. Although Canal increased the sales volume from its art operations, the operating results of this program were significantly less than in the prior year. Losses in various foreign currency time deposits (net of related interest income) amounted to approximately $0.9 million in fiscal 1991 and Canal no longer carries any foreign currency deposits. In comparing 1991 to 1990, it should be noted that the 1990 loss was primarily due to a $2,400,000 write-down in the carrying value of canal's long-term investments, as well as softer than anticipated results from its art operations. Revenues from continuing operations, which include gross sales from Canal's art and real estate operations, as well as the income or loss from the company's investing operations, were $11,280,000 for fiscal 1991, as compared with $7,704,000 in fiscal 1990. The 1991 increase in revenues is due primarily to Canal's sale of a substantial portion of its antiquities inventory, which was effected in order to strengthen liquidity and reduce the level of outstanding debt. During the fourth quarter of 1991, the company reported a net loss of $1,800,000, or $0.42 per common share, as compared with a net loss of $2,707,000, or $0.64 per common share, for the same period as 1990. Included in the 1991 results were severance costs of approximately $500,000 in connection with the retirement and termination of several executive officers. Revenues (as defined) from continuing operations for the fourth quarter of 1991 were $1,692,000 as compared with a negative $138,000 for the same period in 1990. As previously reported, the negative revenue amount for the fourth quarter of 1990 resulted from the inclusion of a $2,400,000 write-down in the carrying value of Canal's long-term investments. CANAL CAPITAL CORPORATION AND SUBSIDIARIES CONSOLIDATED OPERATING RESULTS Year ended Oct. 31 1991 1990 Revenues from continuing operations $11,280,000 $ 7,704,000 Income (loss) from cont. opers. (5,300,000) (4,168,000) Extraordinary gain on retirement of debt -- 148,000 Net income (loss) (5,300,000) (4,020,000) Net income (loss) applicable to common shares (5,430,000) (4,451,000) Net income (loss) applicable to common shares (1.25) (1.03) Three months ended Oct. 31 1991 1990 Revenues from continuing operations $ 1,692,000 $ (138,000) Net income (loss) (1,800,000) (2,707,000) Net income (loss) applicable to common shares (1,830,000) (2,773,000) Net income (loss) applicable to common shares (0.42) (0.64) -0- 12/9/91 /CONTACT: Reginald Schauder of Canal Capital, 212-826-6040/ (COW) CO: Canal Capital Corporation ST: New York IN: FIN SU: ERN SH -- NY018 -- 0490 12/09/91 11:00 EST
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|Date:||Dec 9, 1991|
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