Cadiz Land Co. Inc. Reports Third Quarter Results.SANTA MONICA Santa Monica (săn`tə mŏn`ĭkə), city (1990 pop. 86,905), Los Angeles co., S Calif., on Santa Monica Bay; inc. 1886. Tourism and retailing are important, and the city has motion-picture, biotechnology, and software industries. , Calif.--(BUSINESS WIRE)--Nov. 13, 1997--Cadiz Land Co. Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on NM:CLCI CLCI Dichlorodimethyl Ether ) Thursday Thursday: see week. reported revenues for the third quarter ended Sept. 30, 1997, of $53.0 million, operating profit Operating profit (or loss) Revenue from a firm's regular activities less costs and expenses and before income deductions. operating profit See operating income. of $7.6 million and net income of $3.6 million (11 cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. ). In the third quarter of 1996, the company had revenues of $4.7 million, operating loss operating loss 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. of $1.3 million and a net loss of $2.4 million (12 cents per share). The 1997 results include the operations of Sun World International Inc., a wholly-owned subsidiary of Cadiz, which was acquired on Sept. 13, 1996. Sun World contributed $52.9 million of revenues, $8.3 million of operating profit and a $4.5 million net income for the third quarter of 1997. The third quarter 1996 results include $4.7 million of revenues, $0.6 million of operating profit and a $0.2 million net loss for Sun World representing the 16 day period from Sept. 14 to Sept. 30, 1996, following the Cadiz acquisition. The results of operations for Sun World prior to the acquisition date have not been consolidated with those of the company. As such, direct comparison of the company's results of operations for the three and nine month periods ended Sept. 30, 1997, with results for the three and nine months ended Sept. 30, 1996, will not, in the view of management of the company, prove meaningful. For the first nine months of 1997, revenues totaled $83.5 million, operating profit was $4.4 million and net loss was $7.3 million (30 cents per share). Nine month 1996 results included revenues of $5.1 million, operating loss of $5.6 million, and a net loss of $7.6 million (39 cents per share). Sun World contributed $83.3 million of revenues, $7.2 million of operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. and a $3.1 million net loss for the nine months ended Sept. 30, 1997. Earnings before income taxes plus interest expense, depreciation and amortization (EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become ) contributed from Sun World were $11.9 million for the third quarter of 1997 and $12.7 million for the nine months ended Sept. 30, 1997. The company's agricultural operations at Sun World are impacted by the general seasonal trends that are characteristic of the agricultural industry. The majority of the company's products are harvested and sold in the June through October time frame. Therefore, the above results are not indicative of the results of operations for a full fiscal year. The company continues to pursue the development of its water resources and is seeking to finalize fi·nal·ize tr.v. fi·nal·ized, fi·nal·iz·ing, fi·nal·iz·es To put into final form; complete or conclude: "They have jointly agreed ... the regulatory approvals needed to commence construction of a water delivery and storage product at Cadiz. COncurrently with the regulatory review process, the company is also negotiating the terms of water delivery and/or storage arrangements with various California California (kăl'ĭfôr`nyə), most populous state in the United States, located in the Far West; bordered by Oregon (N), Nevada and, across the Colorado River, Arizona (E), Mexico (S), and the Pacific Ocean (W). water agencies, which include issues such as financing, pricing concepts and formulas and ownership of the pipeline and the delivery and/or storage system. The company is pleased with the progress made during the quarter in furthering the proposed water delivery and storage project at Cadiz. The company is a publicly held agricultural and water development firm. With the acquisition of its subsidiary, Sun World, the company has become one of the largest vertically integrated agricultural companies in California. -0-
CADIZ LAND CO. INC.
SUMMARY OF CONSOLIDATED OPERATIONS
For the Quarter and the Nine Months ended Sept. 30, 1997 and 1996
($ in thousands except per share data)
Quarter Nine Months
Ended Sept. 30, Ended Sept. 30,
1997 1996 1997 1996
Revenues $52,949 $ 4,738 $83,492 $ 5,141
Operating profit
(loss) $ 7,555 $(1,305) $ 4,376 $(5,541)
Interest expense, net $ 3,937 $ 1,137 $11,723 $ 2,029
Net income (loss) $ 3,618 $(2,442) $(7,347) $(7,570)
Less: Preferred stock
dividends $ (9) $ 0 $(1,213) $ 0
Net income (loss)
applicable to
common stock $ 3,609 $(2,442) $(8,560) $(7,570)
Net loss per common
share $ 0.11 $ (0.12) $ (0.30) $ (0.39)
Weighted average
shares outstanding 32,400 20,000 28,400 19,200
CONTACT: Cadiz Land Co. Inc., Santa Monica Stanley Stanley, town (1991 pop. 1,557), capital of the Falkland Islands, S Atlantic Ocean, on East Falkland island. It is the main port and trading center of the islands. The name is sometimes written as Port Stanley. E. Speer, 310/899-4700 |
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