Castle & Cooke Inc. 1999 Second Quarter and Half-Year Earnings.LOS LOS Length of stay, see there ANGELES--(BUSINESS WIRE)--July 26, 1999-- Castle & Cooke Inc. (NYSE NYSE See: New York Stock Exchange : CCS (1) (Common Channel Signaling) A communications system in which one channel is used for signaling and different channels are used for voice/data transmission. Signaling System 7 (SS7) is a CCS system, also known as CCS7. See SS7. ) today reported that 1999 second quarter net income increased 53% to $4.0 million on revenues of $81.9 million, compared to 1998 second quarter net income of $2.6 million on revenues of $69.5 million. Half-year net income for 1999 increased 69% to $6.7 million on revenues of $145.6 million, compared to 1998 half-year net income of $4.0 million on revenues of $126.7 million. The Company purchased 3,015,764 of its common shares in a "Dutch Auction Dutch Auction An auction where the price on an item is lowered until it gets its first bid, and then the item is sold at that price. Notes: The U.S. Treasury (and other countries) uses a Dutch auction when it sells securities. " self-tender offer Self-tender offer A company that tenders for its own shares. completed in July July: see month. of 1998. David H. Murdock David Howard Murdock (1924-), with his net worth of 4.2 billion US Dollars, is the 204th richest person in the world. A high-school dropout, Murdock was drafted by the U.S. Army in 1943. , Chairman and Chief Executive Officer, said, "We are pleased to report that for the seventh consecutive quarter, our earnings have improved over the prior year's quarterly results." Murdock Not to be confused with Murdoc. Not to be confused with Murdoch. Murdock is a surname, and may refer to:
 ), island (1990 pop. 836,231), 593 sq mi (1,536 sq km), third largest and chief island of Hawaii, part of Honolulu co., between Molokai and Kauai. and closings at our new seniors community known as The
Greens at Seven Oaks Seven Oaks (ISSN 1710-3061) is an online political magazine based in Vancouver, Canada. It was founded by four activists and journalists, and launched its first issue February 21, 2004. in Bakersfield Bakersfield, city (1990 pop. 174,820), seat of Kern co., S central Calif., at the southern end of the San Joaquin valley; inc. 1898. It is an oil, mining, and agricultural center and one of the fastest-growing U.S. cities. , Calif., had a favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. impact on our second quarter results." For the Oahu and mainland residential operations, total residential home deliveries in the second quarter of 1999 were 124, compared to 97 in the comparable period of 1998. Average home sales prices in the second quarter of 1999 were $296,000 compared to $264,000 for the comparable period in 1998. New home orders in the second quarter of 1999 were 130, compared to 113 in the comparable period of 1998. The aggregate sales value of the residential home backlog Backlog The total value of sales orders waiting to be fulfilled. Notes: This figure is used mainly in the manufacturing industry. Increases or decreases in a company's backlog indicate the future direction of sales and earnings. was $39.5 million at June June: see month. 30, 1999 compared to $27.5 million at June 30, 1998. Included in the June 30, 1999 residential home backlog is $6.0 million relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc The Greens at Seven Oaks in Bakersfield, Calif. Home closings for this new seniors community, which began in the first quarter of 1999, totaled 15 for the second quarter of 1999. On the mainland, total residential homesite deliveries in the second quarter of 1999 were 265, compared to 275 in the comparable period of 1998. Average homesite sales prices in the second quarter of 1999 were $40,000 compared to $34,000 for the comparable period in 1998. The increase in average homesite sales price is primarily due to product mix. New homesite orders in the second quarter of 1999 were 194, compared to 149 in the comparable period of 1998. The aggregate sales value of the residential homesite backlog was $27.1 million at June 30, 1999, compared to $27.3 million at June 30, 1998. The Lana'i resorts operations reported an 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 $3.0 million for the second quarter of 1999 as compared to an operating loss of $1.5 million for the same period in 1998. The Lana'i resorts reported an operating loss before luxury home and lot sales and depreciation of $1.2 million for the second quarter of 1999 as compared to an operating loss before luxury home and lot sales and depreciation of $1.5 million for the same period in 1998. The Lana'i luxury home and lot sales generated 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. of $147,000 in the second quarter of 1999 compared to operating income of $2.2 million in the second quarter of 1998. Depreciation expense was approximately $1.9 million for the second quarter of 1999 as compared to approximately $2.3 million in the second quarter of 1998. At June 30, 1999, there were five sales contracts Sales Contract Contract between a seller and buyer for the sale of goods, services, or both. for townhomes under construction at the Terraces at Manele This article or section has multiple issues: * Its neutrality is disputed. * It does not cite any references or sources. Please help improve this article by citing reliable sources. * Its tone or style may not be appropriate for Wikipedia. Bay, with an aggregate sales value of approximately $7.1 million. Murdock said, "The commercial operations continue to grow and provide stable earnings to the Company. Commercial revenues increased 15% as new properties and leases in Hawaii Hawaii, island, United States Hawaii, island (1990 pop. 120,217), 4,037 sq mi (10,456 sq km), largest and southernmost island of the state of Hawaii and coextensive with Hawaii co.; known as the Big Island. , 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). and Georgia Georgia, country, Asia Georgia (jôr`jə), Georgian Sakartvelo, Rus. Gruziya, officially Republic of Georgia, republic (2005 est. pop. 4,677,000), c.26,900 sq mi (69,700 sq km), in W Transcaucasia. came on line. In the third quarter of 1999, our two new 18-hole, Jack Nicklaus Noun 1. Jack Nicklaus - United States golfer considered by many to be the greatest golfer of all time (born in 1940) Jack William Nicklaus, Nicklaus designed golf courses, one in San Jose San Jose, city, United States San Jose (sănəzā`, săn hōzā`), city (1990 pop. 782,248), seat of Santa Clara co., W central Calif.; founded 1777, inc. 1850. , Calif., and the other in Orlando, Fla., are expected to open. These assets should provide additional revenue and earnings to our commercial portfolio and continue our strategy of prudent diversification Diversification A risk management technique that mixes a wide variety of investments within a portfolio. It is designed to minimize the impact of any one security on overall portfolio performance. Notes: Diversification is possibly the greatest way to reduce the risk. ." Castle & Cooke is a developer of residential real estate in Hawaii; Bakersfield, Calif.; Sierra Vista, Ariz.; and Orlando, Fla. The Company owns and operates two of the world's highest rated resorts on the Island of Lana'i in Hawaii. The Company is also involved in commercial development in Hawaii, California, Arizona Arizona (âr'əzō`nə), state in the southwestern United States. It is bordered by Utah (N), New Mexico (E), Mexico (S), and, across the Colorado R., Nevada and California (W). , North Carolina North Carolina, state in the SE United States. It is bordered by the Atlantic Ocean (E), South Carolina and Georgia (S), Tennessee (W), and Virginia (N). Facts and Figures Area, 52,586 sq mi (136,198 sq km). Pop. and Georgia. 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. Statement: Statements herein and in other Company reports, releases and filings that are not historical facts are "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. ." These would include, without limitation, statements about anticipated results, resources, capital needs, revenues, economic conditions, transactions, project commencements or completions, and Year 2000 readiness and effects. Such statements are based on the Company's current expectations and are subject to a number of risks and uncertainties that could cause actual results to differ materially from results that may be expressed or implied by such statements. These risks and uncertainties include, among other things, product demand, the Company's lack of experience in markets outside of its current markets, the effects of economic conditions and geographic concentration, the impact of competitive products and pricing, the availability of capital, the cost of materials and labor, governmental regulations and the need for governmental approvals, interest rates and other risks inherent in the real estate business, and the effects of the year 2000 computer problems. More information on factors that could affect the Company's results and operations can be found in the Company's filings with the Securities and Exchange Commission. -0-
CASTLE & COOKE INC.
SUMMARY OF CONSOLIDATED OPERATIONS
(Unaudited)
(Dollars and shares in 000s, except
per share amounts, unit data, average prices and new orders)
Quarter Ended Six Months Ended
June 30, June 30, June 30, June 30,
1999 1998 1999 1998
Operating results
Revenues
Residential and
other property sales $ 49,923 $ 34,754 $ 80,725 $ 61,531
Resort revenues 17,335 21,983 37,156 39,323
Commercial and other
revenues 14,667 12,743 27,731 25,876
Total revenues 81,925 69,480 145,612 126,730
Costs of operations
Cost of residential and
other property sales 41,825 30,523 68,740 55,126
Cost of resort operations 19,810 23,269 40,761 42,001
Cost of commercial and
other operations 9,892 8,341 17,753 16,201
General and administrative
expenses 3,549 3,612 6,773 6,806
Total costs of operations 75,076 65,745 134,027 120,134
Operating income 6,849 3,735 11,585 6,596
Operating margin 8% 5% 8% 5%
Interest and other income, net 1,139 1,014 2,485 1,124
Interest expense 2,343 886 4,438 1,774
Income before income taxes 5,645 3,863 9,632 5,946
Income tax provision (1,694) (1,275) (2,890) (1,962)
Net income $ 3,951 $ 2,588 $ 6,742 $ 3,984
Basic earnings per
common share $ 0.23 $ 0.13 $ 0.40 $ 0.20
Average number of common
shares outstanding 17,045 19,983 17,039 19,993
Unit data
Total homes delivered 124 97 204 175
Total lots delivered 265 275 463 427
Average price per home $ 296 $ 264 $ 288 $ 260
Average price per lot $ 40 $ 34 $ 41 $ 37
New orders and backlog
New orders - homes 130 113 267 226
New orders - homesites 194 149 516 657
Number of units in
backlog - homes 151 97 151 97
Number of units in
backlog - homesites 647 635 647 635
Aggregate sales value of
backlog - homes $ 39,548 $ 27,475 $ 39,548 $ 27,475
Aggregate sales value of
backlog - homesites $ 27,076 $ 27,282 $ 27,076 27,282
Financial condition
Total assets $1,095,447 $1,041,077
Total debt $ 281,440 $ 193,059
Total equity $ 543,952 $ 529,757
Book value per share $ 31.91 $ 26.51
CASTLE & COOKE INC.
RESIDENTIAL PROPERTY SALES
SUPPLEMENTARY ANALYST DATA
(Unaudited)
(Dollars in 000s)
Quarter Ended Six Months Ended
June 30, June 30, June 30, June 30,
1999 1998 1999 1998
Oahu Backlog - Homes
Units
Backlog at beginning
of period 112 81 67 46
Add: New orders 112 106 233 219
Less: Deliveries (107) (93) (183) (171)
Backlog at end of period 117 94 117 94
Dollars
Backlog at beginning
of period $ 33,788 $ 21,607 $ 21,091 $ 11,920
Add: New orders 32,706 30,527 66,781 60,104
Less: Deliveries (33,345) (25,132) (54,723) (45,022)
Backlog at end of period $ 33,149 $ 27,002 $ 33,149 $ 27,002
Average price per unit
delivered $ 312 $ 270 $ 299 $ 263
Mainland Backlog - Homes
Units
Backlog at beginning
of period 33 - 21 -
Add: New orders 18 7 34 7
Less: Deliveries (17) (4) (21) (4)
Backlog at end of period 34 3 34 3
Dollars
Backlog at beginning
of period $ 6,178 $ - $ 4,052 $ -
Add: New orders 3,576 902 6,450 902
Less: Deliveries (3,355) (429) (4,103) (429)
Backlog at end of period $ 6,399 $ 473 $ 6,399 $ 473
Average price per unit
delivered $ 197 $ 107 $ 195 $ 107
Total Backlog - Homes
Units
Backlog at beginning
of period 145 81 88 46
Add: New orders 130 113 267 226
Less: Deliveries (124) (97) (204) (175)
Backlog at end of period 151 97 151 97
Dollars
Backlog at beginning
of period $ 39,966 $ 21,607 $ 25,143 $ 11,920
Add: New orders 36,282 31,429 73,231 61,006
Less: Deliveries (36,700) (25,561) (58,826) (45,451)
Backlog at end of period $ 39,548 $ 27,475 $ 39,548 $ 27,475
Average price per unit
delivered $ 296 $ 264 $ 288 $ 260
CASTLE & COOKE INC.
RESIDENTIAL PROPERTY SALES
SUPPLEMENTARY ANALYST DATA (CONTINUED)
(Unaudited)
(Dollars in 000s)
Quarter Ended Six Months Ended
June 30, June 30, June 30, June 30,
1999 1998 1999 1998
Mainland Backlog - Homesites
Units
Backlog at beginning
of period 718 761 594 405
Add: New orders 194 149 516 657
Less: Deliveries (265) (275) (463) (427)
Backlog at end of period 647 635 647 635
Dollars
Backlog at beginning
of period $ 29,612 $ 32,942 $ 22,074 $ 19,964
Add: New orders 8,061 3,815 24,085 23,223
Less: Deliveries (10,597) (9,475) (19,083) (15,905)
Backlog at end of period $ 27,076 $ 27,282 $ 27,076 $ 27,282
Average price per unit
delivered $ 40 $ 34 $ 41 $ 37
Included in backlog at December 31, 1999, are homesites to be sold
to builders under option contracts, pursuant to which approximately
213 homesites with an aggregate sales price of approximately
$8.4 million are expected to close after June 30, 2000.
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