Cadiz Reports Second Quarter Results.Business Editors 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)--Aug. 8, 2002 Cadiz Inc. (Nasdaq:CLCI CLCI Dichlorodimethyl Ether ), today reported results for the second quarter ended June June: see month. 30, 2002. Cadiz' wholly-owned subsidiary, Sun World International, Inc., generated 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 (earnings before income taxes plus interest expense, depreciation and amortization) of $4.0 million for the second quarter of 2002, compared to $2.5 million for the second quarter of 2001. The improved EBITDA for the second quarter of 2002 is primarily attributable to improved market conditions as normal production windows returned for Sun World's key growing areas for 2002. Based upon the operating results through July July: see month. and management's current expectations for market conditions for the remainder of the year, the Company forecasts EBITDA for Sun World in excess of $20 million for 2002. "Sun World's performance to date and our outlook for the balance of the year is very positive," said Tim Shaheen Shaheen can refer to:
Cadiz revenues for the quarter were $23.1 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. was $0.3 million, and net loss applicable to common stock was $6.0 million, or ($.16) per share. The 2001 second-quarter net loss amount included $3.4 million of depreciation, amortization and non-cash interest charges. Operating profit for the 2002 quarter was negatively impacted by $0.8 million of professional fees related to the KADCO combination that was not completed. By comparison, in the second quarter of 2001, revenues were $20.4 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. was $0.1 million, and net loss applicable to common stock was $5.0 million or ($.14) per share. The 2001 second-quarter net loss amount included $2.4 million of depreciation, amortization and non-cash interest charges. The majority of Cadiz' annual revenues are currently generated by the harvest and sale of crops produced by Sun World. Those revenues are primarily recognized between June and October October: see month. , while fixed overhead costs overhead costs see fixed costs. are incurred throughout the year. Therefore, Cadiz' quarterly and six month results are not indicative of the results of operations for a full fiscal year. Once Cadiz' water development programs are operational, revenues are not expected to be as seasonal in nature. For the six months ended June 30, 2002, revenues for Cadiz were $30.8 million, operating loss was $2.2 million and net loss attributable to common stock was $13.8 million, or ($.38) per share. The 2002 six-month net loss amount included $5.2 million of depreciation, amortization and non-cash interest charges. For the six months ended June 30, 2001, revenues were $27.7 million, operating loss was $2.4 million and net loss attributable to common stock was $12.2 million, or ($.34) per share. The 2001 six-month net loss amount included $3.9 million of depreciation, amortization and non-cash interest charges. The six-month 2001 results included $2.4 million of income from non-recurring items. The non-recurring items, which occurred in the first quarter of 2001, were a $7.9 million special 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. recovery from the settlement of Cadiz' claims against Waste Management Inc. related to its proposed Rail-Cycle landfill and an offsetting $5.5 million non-cash compensation charge. In April 2001, the Board of Directors of Metropolitan Water District of Southern California The Metropolitan Water District of Southern California is the largest bulk water supplier for municipal use in the world. The name is usually shortened to the "Metropolitan Water District" or simply "MWD". approved definitive economic terms and responsibilities for the Cadiz Groundwater groundwater or subsurface water Water that occurs below the surface of the Earth, where it occupies spaces in soils or geologic strata. Most groundwater comes from precipitation, which gradually percolates into the Earth. Storage and Dry-Year Supply Program (Cadiz Program). The definitive terms will serve as the basis for a final agreement to be executed between Metropolitan and Cadiz. Execution of a final agreement will be contingent upon Adj. 1. contingent upon - determined by conditions or circumstances that follow; "arms sales contingent on the approval of congress" contingent on, dependant on, dependant upon, dependent on, dependent upon, depending on, contingent and subject to completion of the environmental review process. In October 2001, Metropolitan and the U.S. Bureau of Land Management (BLM BLM n abbr (US) (= Bureau of Land Management) → les domaines ), in cooperation with the U.S. Geological Survey The term geological survey can be used to describe both the conduct of a survey for geological purposes and an institution holding geological information. A geological survey and the National Park Service, issued the Final Environmental Impact Report/Environmental Impact Statement for the Cadiz Program. In addition, the U.S. Fish and Wildlife Service issued a biological opinion in March 2002 which concluded that the Cadiz Program fully complies with the Endangered Species Act The federal Endangered Species Act of 1973 (ESA) (16 U.S.C.A. §§ 1531 et seq.) was enacted to protect animal and plant species from extinction by preserving the ecosystems in which they survive and by providing programs for their conservation. and will not adversely impact plants and wildlife. The next step in the environmental review process is completion of final actions by the U.S. Bureau of Land Management through the issuance of Records of Decision, which is anticipated to occur shortly. The issuance of the Records of Decision will be followed by final actions by Metropolitan. Cadiz management will host an earnings conference call today at 8:00 a.m. Pacific Daylight Time/11:00 a.m. Eastern Daylight Time. To hear a live webcast of the conference call, please visit Cadiz' web site at www.cadizinc.com and click on "Investor Relations Investor relations The process by which the corporation communicates with its investors. ." The call will be archived on Cadiz' web site for one week. Founded in 1983, Cadiz Inc. is a publicly held water resource management and agricultural firm. With its subsidiary, Sun World International, Inc., Cadiz is one of the largest vertically integrated agricultural companies in 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). . Cadiz owns significant landholdings with substantial water resources throughout California. Further information on Cadiz and Sun World can be obtained by visiting Cadiz' corporate web site at www.cadizinc.com. This release contains 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. that are subject to significant risks and uncertainties, including statements related to the future operating and financial performance of Cadiz and Sun World and the successful implementation of the Cadiz Program. Although Cadiz believes that the expectations reflected in its forward-looking statements are reasonable, it can give no assurance that such expectations will prove to be correct. Factors that could cause actual results or events to differ materially from those reflected in Cadiz' forward-looking statements include price and yield fluctuations in its agricultural operations, seasonality, and other factors and considerations detailed in Cadiz' Securities and Exchange Commission filings.
CADIZ INC.
FINANCIAL SUMMARY
Three Months Six Months
Ended June 30 Ended June 30
2002 2001 2002 2001
(in thousands except
per share data)
Revenues $ 23,063 $ 20,371 $ 30,813 $ 27,742
Special litigation
recovery -- -- -- 7,929
Revenues and special
litigation recovery 23,063 20,371 30,813 35,671
Cost of sales 16,848 15,444 23,101 23,385
General and
administrative 4,232 3,264 7,470 6,513
Non-recurring
compensation expense -- -- -- 5,537
Depreciation and
amortization 1,729 1,730 2,455 2,564
Operating profit (loss) 254 (67) (2,213) (2,328)
Interest expense, net 5,685 4,777 10,468 9,465
Income tax expense 3 1 26 31
Net loss (5,434) (4,845) (12,707) (11,824)
Preferred stock
dividends 282 112 563 225
Imputed dividend on
preferred stock 246 73 492 146
Net loss applicable
to common stock $ (5,962) $ (5,030) $(13,762) $(12,195)
Basic and diluted net
loss per common share $ (.16) $ (.14) $ (.38) $ (.34)
Weighted average
shares outstanding 36,242 35,785 36,191 35,740
EBITDA:
Sun World $ 4,003 $ 2,526 $ 3,217 $ (267)
Cadiz (1,213) (863) (2,168) (1,889)
EBITDA before
unusual items 2,790 1,663 1,049 (2,156)
Unusual items:
Professional fees
related to KADCO
combination (807) -- (807) --
Special litigation
recovery -- -- -- 7,929
Non-recurring
compensation
expense -- -- -- (5,537)
Total EBITDA $ 1,983 $ 1,663 $ 242 $ 236
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