Carey International announces record second quarter results; Revenues Increase 11.2%, Operating Profits Increase 24.7%.WASHINGTON--(BUSINESS WIRE)--June 26, 1997--Carey International, 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 :CARY) today announced record revenues and profits for its second quarter ended May 31, 1997. Net income increased 14.3% to $584,000 in the second quarter from $511,000 for the second quarter of fiscal 1996. For the six months ended May 31, 1997, net income increased 65.9% to $751,000 from $453,000 for the six months ended May 31, 1996. Earnings per share, when adjusted for the recapitalization Recapitalization Restructuring a company's debt and equity mixture often with the aim of making a company's capital structure more stable. Notes: Companies often want to diversify their debt-to-equity ratio to improve liquidity. and initial public offering, were $0.13 versus $0.11 last year (pro forma earnings pro forma earnings Income not necessarily calculated in accordance with generally accepted accounting principles. For example, a company might report pro forma earnings that exclude depreciation expense and nonrecurring expenses such as restructuring costs. per share, assuming the recapitalization only, were $0.18 for the quarter.) Revenues increased 11.2% to $16.7 million in the second quarter from $15.0 million for the second quarter of fiscal 1996. Sales growth was broadly based both geographically and across industries and customers. For the six months ended May 31, 1997, revenues increased 16.1% to $30.9 million from $26.6 million for the six months ended May 31, 1996. 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. increased 24.7% to $1.3 million in the second quarter from $1.0 million for the second quarter of fiscal 1996 due to strong internal sales growth and the benefit of operating leverage Operating Leverage A measurement of the degree to which a firm or project relies on fixed rather than variable costs. Notes: The higher the degree of operating leverage, the greater the potential danger from forecasting risk. . For the six months ended May 31, 1997, 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. increased 39.7% to $1.9 million from $1.3 million for the six months ended May 31, 1996. "We are pleased to announce record results for our first reporting period as a public company," said Vincent A. Wolfington, Chairman and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of Carey International. "The second quarter performance exceeded the Company's expectations. We achieved strong internal sales growth and continued operating leverage across our core business." Mr. Wolfington specifically identified two key business initiatives, which highlighted the achievements in the second quarter: 1. Increased Ability to Leverage Worldwide Network and Service Infrastructure. Carey's direct sales program, coupled with its centralized cen·tral·ize v. cen·tral·ized, cen·tral·iz·ing, cen·tral·iz·es v.tr. 1. To draw into or toward a center; consolidate. 2. international reservations system (CIRS CIRS Composite Infrared Spectrometer CIRS Circles (street type) CIRS Currency Interest Rate Swap CIRS Contractor Inventory Redistribution System CIRS Critical Incidents Reporting System CIRS Customer Infrastructure Readiness Survey - the most extensive of its kind in the chauffeured vehicle service industry), continues to drive internal sales growth and significantly improve operating margins. 2. Completed Strategic Acquisition of Manhattan Limousine. Carey's purchase of New York's largest chauffeured vehicle service company in May is an example of the kind of strategic business expansion the Company intends to continue pursuing. Carey now enjoys the highest market penetration Noun 1. market penetration - the extent to which a product is recognized and bought by customers in a particular market penetration - the act of entering into or through something; "the penetration of upper management by women" and strongest capital base in the world's largest market for chauffeured vehicle services. "Carey has generated critical momentum recently, thanks to our recapitalization, our successful IPO (Initial Public Offering) The first time a company offers shares of stock to the public. While not a computer term per se, many founders, employees and insiders of computer companies have found this acronym more exciting than any tech term they ever heard. , and a strategic acquisition," concluded Mr. Wolfington, "and going forward, we intend to continue pursuing our objectives intensively in terms of growth and quality of service." Carey International is the world's largest chauffeured vehicle service company, providing services through a worldwide network of owned and operated companies, licensees and affiliates serving 420 cities in 65 countries on six continents Six Continents is a large retail PLC in UK which split into Six Continents Retail known as Mitchells and Butlers plc. The hotels and soft drinks business of Six Continents PLC is now known as InterContinental Hotels Group PLC. . Carey completed an initial public offering in June 1997, selling 3.3 million shares at a price of $10.50 per share. -0- The Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995 provides a "safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. " for certain forward-looking statements. The forward-looking statements contained in this release are subject to certain risks and uncertainties. Actual results could differ materially from current expectations. NOTE TO INVESTORS AND EDITORS: Through June 27, Carey's press releases are available on the Internet through BusinessWire's web site at http://www.businesswire.com. The releases also are available at no charge through Business Wire's fax-on-demand service at 888-329-6087. -0-
CAREY INTERNATIONAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
Unaudited
Three Months Six Months
ended May 31, ended May 31,
1996 1997 1996 1997
Revenue, net $ 15,043 $ 16,731 $ 26,601 $ 30,872
Cost of revenue 10,208 11,382 18,112 21,138
Gross profit 4,835 5,349 8,489 9,734
Selling, general and
administrative expense 3,798 4,056 7,158 7,875
Operating income 1,037 1,293 1,331 1,859
Other income (expense) (328) (351) (669) (596)
Income before provision
for income taxes 709 942 662 1,263
Provision for income taxes 198 358 209 512
Net income $ 511 $ 584 $ 453 $ 751
Pro forma earnings
per common share $ 0.18 $ 0.24
Weighted average common
shares outstanding 3,750 3,685
Adjusted for the
Recapitalization and IPO:
Adjusted for net income $ 775 $ 881 $ 1,083 $ 1,388
Adjusted for net income
per common share $ 0.11 $ 0.13 $ 0.16 $ 0.20
Adjusted for weighted
average shares outstanding 6,906 6,906 6,906 6,906
CONTACT: Carey International Devin J. Murphy Senior Vice President Chief Development Officer 202/895-1200 |
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