Catellus Announces Fourth Quarter 2001 Results.Business Editors SAN FRANCISCO--(BUSINESS WIRE)--Feb. 12, 2002 Catellus Development Corporation Catellus Development Corporation is a real estate landowner that was spun off of the real estate holdings of Santa Fe and Southern Pacific Railroad. They are one of the largest landowners in California. (NYSE NYSE See: New York Stock Exchange :CDX CDX Companion Dog Excellent (AKC Obedience Title) CDX Cyber-Defense Exercise CDX Central Data Exchange CDX Community Development Exchange (UK community development organization) CDX Commercial Data Exchange ) Per Share Earnings Before Depreciation and Deferred Taxes Increased 32% in the Fourth Quarter and 22% for the Year Ended December December: see month. 31, 2001 Catellus Development Corporation (NYSE:CDX) today reported earnings before depreciation and deferred taxes (EBDDT) of $43.4 million for the fourth quarter of 2001 compared to $37.6 million for the fourth quarter of 2000. On a diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. per share basis, EBDDT for the fourth quarter of 2001 was $0.45 per share, a 32% increase over the $0.34 per share recorded in the fourth quarter of 2000. For the year ended December 31, 2001, EBDDT per share was $1.78, a 22% increase over full year 2000 EBDDT per share of $1.46. Net income on a diluted per share basis for the quarter was $0.20, a 54% increase over the fourth quarter of 2000. For the year ended December 31, 2001, net income on a diluted per share basis was $0.94, an 8% decrease from full year 2000. These results were impacted by gains on non-strategic desert land sales of $3.9 million in 2001 compared to $46.3 million in 2000. "Catellus
Catellus was a legendary king of the Britons as accounted by Geoffrey of Monmouth. He was the son of King Gerennus and was succeeded by his son Millus. had an outstanding year in 2001, despite the challenging economic climate," commented Nelson C. Rising, Chairman and Chief Executive Officer of Catellus. "We generated significant value from our project at Pacific Commons Pacific Commons Almost 1 million square feet of retail is located at the intersection of Interstate 880 and Auto Mall Parkway and includes retailers such as Lowe's Home Improvement, Costco, Kohl's Department Store, Linens-N-Things, Office Depot, Party America, DSW Shoes, Justice in the Silicon Valley and from our urban infill in·fill n. 1. The use of vacant land and property within a built-up area for further construction or development, especially as part of a neighborhood preservation or limited growth program. 2. projects at Mission Bay and Santa Fe Santa Fe, city, Argentina Santa Fe, city (1991 pop. 341,000), capital of Santa Fe prov., NE Argentina, a river port near the Paraná, with which it is connected by canal. Place. We also significantly increased our development under construction over 2000, while continuing to improve the overall quality of our portfolio with high quality tenants such as Ford Motor Company and Kellogg Company For other uses, see Kellogg. Kellogg Company (often referred to as simply Kellogg or Kellogg's) is an American multinational producer of breakfast foods, snack foods, cookies, and crackers, with corporate headquarters in Battle Creek, Michigan, USA. ." Fourth Quarter Highlights -- Purchased 10.6 million shares of our outstanding common stock from the California Public Employees Retirement System (CalPERS) for a total of $183.1 million, or $17.28 per share. During the fourth quarter, including the CalPERS transaction, we repurchased 12.8 million shares at an average price of $17.23. -- Signed multiple leases, including a lease signed in January 2002, totaling 1.3 million square feet with Ford Motor Company at four locations in three different states. -- Started construction of a 607,000 square foot distribution warehouse at Kaiser Commerce Center in San Bernardino County, California, for Specialty Merchandise Corporation. -- Signed a lease with Keebler Company for 81,000 square feet at the Stapleton Business Center in Denver, Colorado. -- Signed a lease with Safeway Inc. for a 33,000 square foot grocery store at Mission Bay in San Francisco. The grocery store will open in 2003 as part of the mixed-use facility now under construction. -- Acquired a 470,000 square foot industrial building leased to Saks Inc. in Aberdeen, Maryland for $27.9 million. -- Received final environmental clearance and initiated bayside land sales at Victoria by the Bay in Hercules, California, closing on 169 lots in the fourth quarter for $19.7 million. 2001 Highlights -- Increased income producing portfolio to 30.9 million square feet at year end 2001 from 28.8 million square feet at year end 2000. During the year, we sold 507,000 square feet of buildings, acquired 1.2 million square feet and completed 1.5 million square feet. -- Rental property 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. for the year was $181.1 million, a 12% increase over 2000. -- At year-end year-end also year·end n. The end of a year. adj. Occurring or done at the end of the year: a year-end audit. Noun 1. , the Commercial Group had 6.1 million square feet under construction, which we anticipate adding to our income producing portfolio at completion, for a total cost of $255.0 million. These buildings are 67% leased and when fully leased, are expected to contribute $28.6 million to net operating income on an annualized annualized Of or relating to a variable that has been mathematically converted to a yearly rate. Inflation and interest rates are generally annualized since it is on this basis that these two variables are ordinarily stated and compared. basis. -- At year-end, the Urban Group had 316,000 square feet of commercial space under construction, which we anticipate adding to our income producing portfolio at completion, for a total cost of $92.9 million. This space is 90% leased and when fully leased is expected to contribute $12.7 million to net operating income on an annualized basis. Additional construction includes 34 for sale condominium condominium In modern property law, individual ownership of one dwelling unit within a multidwelling building. Unit owners have undivided ownership interest in the land and those portions of the building shared in common. units and a joint venture of 130,000 square feet of commercial space and 595 residential rental units. -- During 2001, we completed transactions establishing over $180 million of land value at Mission Bay and Pacific Commons through sales, ground leases, and pre-leased development activities. -- At year end, our 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. of sales under contract but not yet closed totaled $108.2 million; comprised of $7.6 million from the income producing portfolio; $41.5 million from the Commercial Group; and $59.1 million from the Residential Group. -- Portfolio occupancy Gaining or having physical possession of real property subject to, or in the absence of, legal right or title. In a fire insurance policy, for example, the term occupancy was 94.4% at year-end 2001. -- Cash and restricted cash at year-end was $230 million. Rising concluded, "During 2001, we repurchased 21.6 million shares of our common stock for $372.4 million, at an average price of $17.20, which represents approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 20% of the shares outstanding at December 31, 2000. With this extraordinary return of capital to our shareholders combined with our well leased development under construction, we expect our 2002 EBDDT per share to grow 10 to 12% over 2001." Catellus Development Corporation will hold a conference call to discuss this quarter's results on Wednesday Wednesday: see week. , February February: see month. 13th, 2002, at 9:00 AM Pacific Standard Time (Noon EST EST electroshock therapy. EST abbr. electroshock therapy ). The dial-in phone number for the call is 888-423-3274. International callers should dial 612-332-0228. The conference call will also be broadcast live over the Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the from the Catellus website at www.catellus.com and from StreetEvents at www.streetevents.com. A replay of the conference call will be available over the Internet from both websites, or by telephone at 800-475-6701. The access code for the telephone replay is 622184. All replays will be available through February 27th, 2002. A copy of the Fourth Quarter 2001 Supplemental Disclosure Package will be available before the call from the Investor Relations Investor relations The process by which the corporation communicates with its investors. section of our website at www.catellus.com. These materials are also available by contacting Investor Relations at 415-974-4500 or by sending an email to InvestorRelations@catellus.com. Catellus Development Corporation is one of the nation's premier diversified diversified (di·verˑ·s real estate development companies. The Company specializes in developing, managing and investing in a broad range of product types including industrial, residential, office, retail and major urban development projects. It owns a portfolio of rental properties totaling 30.9 million square feet and one of the largest supplies of developable land in the Western United States Noun 1. western United States - the region of the United States lying to the west of the Mississippi River West Santa Fe Trail - a trail that extends from Missouri to New Mexico; an important route for settlers moving west in the 19th century capable of supporting over 42 million square feet of new commercial development and an estimated 10,200 residential lots and units. More information on the Company is available at www.catellus.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. including statements concerning earnings and EBDDT; plans; opportunities; negotiations; markets and economic conditions; leasing, development, construction, rental, and sales activities; availability of financing; and property values. We do not undertake any obligation to revise these forward-looking statements to reflect future events, changes in circumstances CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or , or changes in beliefs. These statements by their nature involve risks and uncertainties. In particular, among the factors that could cause actual results to differ materially from the results expressed in or implied Inferred from circumstances; known indirectly. In its legal application, the term implied is used in contrast with express, where the intention regarding the subject matter is explicitly and directly indicated. by such statements are: changes in the real estate market or in general economic conditions, including the possibility of a worsening wors·en tr. & intr.v. wors·ened, wors·en·ing, wors·ens To make or become worse. Noun 1. worsening - process of changing to an inferior state decline in quality, deterioration, declension economic slowdown For articles with similar titles, see Slow Down (disambiguation). A slowdown is an industrial action in which employees perform their duties but seek to reduce productivity or efficiency in their performance of these duties. or recession; product and geographical concentration; industry competition; changes in interest rates and capital markets or unavailability un·a·vail·a·ble adj. Not available, accessible, or at hand. un  a·vail of financing; changes in
insurance markets; discretionary government decisions affecting the use
of land, and delays resulting therefrom there·from adv. From that place, time, or thing. Adv. 1. therefrom - from that circumstance or source; "atomic formulas and all compounds thence constructible"- W.V. ; changes in the management team; changes in tax laws; weather conditions and other natural occurrences that may affect construction or cause damage to assets; liability for environmental remediation Generally, remediation means providing a remedy, so environmental remediation deals with the removal of pollution or contaminants from environmental media such as soil, groundwater, sediment, or surface water for the general protection of human health and the environment or from a and changes in environmental laws and regulations; failure or inability of third parties to fulfill ful·fill also ful·fil tr.v. ful·filled, ful·fill·ing, ful·fills also ful·fils 1. To bring into actuality; effect: fulfilled their promises. 2. their commitments or to perform their obligations under agreements; failure of parties to reach agreement on definitive terms or to close transactions; costs and availability of land and construction materials; risks related to the financial strength of joint venture projects and co-owners; changes in policies and practices of organized labor Organized Labor An association of workers united as a single, representative entity for the purpose of improving the workers' economic status and working conditions through collective bargaining with employers. Also known as "unions". groups; shortages in electrical power; and other risks inherent in the real estate business. For further information on factors, which could affect the Company and the forward-looking statements in this release, the reader should refer to the Company's report on Form 10-Q Form 10-Q See 10-Q. for the fiscal quarter ended September September: see month. 30, 2001, filed with the Securities and Exchange Commission.
CATELLUS DEVELOPMENT CORPORATION
EARNINGS BEFORE DEPRECIATION AND DEFERRED TAXES (EBDDT)
(In thousands, except per share data)
(Unaudited)
Three Months Ended Twelve Months Ended
December 31, December 31,
2001 2000 2001 2000
--------- --------- --------- ---------
Rental properties
Rental revenue $ 62,856 $ 53,583 $ 234,881 $ 206,762
Property operating
costs (17,065) (14,632) (62,663) (55,272)
Equity in earnings
of operating joint
ventures, net 1,816 1,896 8,833 9,809
--------- --------- --------- ---------
47,607 40,847 181,051 161,299
--------- --------- --------- ---------
Property sales and
fee services
Sales revenue 55,618 54,907 245,804 451,096
Cost of sales (36,214) (44,894) (161,126) (352,274)
--------- --------- --------- ---------
Gain on property
sales 19,404 10,013 84,678 98,822
Equity in earnings
of development joint
ventures, net 4,362 15,696 25,978 27,780
--------- --------- --------- ---------
Total gain on
property sales 23,766 25,709 110,656 126,602
Management and
development fees 2,180 6,118 6,000 15,460
Selling, general and
administrative
expenses (4,617) (12,313) (26,570) (45,894)
Other, net 232 (1,295) 6,187 (9,258)
--------- --------- --------- ---------
21,561 18,219 96,273 86,910
--------- --------- --------- ---------
Interest expense (14,540) (17,435) (58,145) (50,964)
Corporate
administrative
costs (3,964) (4,299) (19,256) (15,675)
Other, net (2,198) 2,435 5,660 940
Minority interests (826) (1,933) (6,142) (10,701)
--------- --------- --------- ---------
Pre Tax EBDDT 47,640 37,834 199,441 171,809
--------- --------- --------- ---------
Income tax -- current (4,214) (284) (16,300) (12,539)
--------- --------- --------- ---------
Earnings before
depreciation and
deferred taxes $ 43,426 $ 37,550 $ 183,141 $ 159,270
========= ========= ========= =========
Earnings before
depreciation and
deferred taxes
per share of common
stock -- basic $ 0.46 $ 0.35 $ 1.83 $ 1.49
========= ========= ========= =========
Earnings before
depreciation and
deferred taxes
per share of common
stock -- assuming
dilution $ 0.45 $ 0.34 $ 1.78 $ 1.46
========= ========= ========= =========
Average number of
common shares
outstanding --
basic 95,348 106,079 99,958 106,561
========= ========= ========= =========
Average number of
common shares
outstanding --
diluted 97,583 109,460 102,685 109,017
========= ========= ========= =========
CATELLUS DEVELOPMENT CORPORATION
RECONCILIATION OF EARNINGS BEFORE DEPRECIATION AND
DEFERRED TAXES TO NET INCOME
(In thousands, except per share data)
(Unaudited)
Three Months Ended Twelve Months Ended
December 31, December 31,
2001 2000 2001 2000
--------- --------- --------- ---------
Earnings before
depreciation and
deferred taxes $ 43,426 $ 37,550 $ 183,141 $ 159,270
Depreciation and
amortization (13,715) (12,595) (52,458) (46,505)
Depreciation
recapture -- 33 11,428 14,519
Deferred income
taxes (10,223) (10,538) (49,499) (62,556)
Gain on non-strategic
asset sales 8 148 3,909 46,279
--------- --------- --------- ---------
Net income $ 19,496 $ 14,598 $ 96,521 $ 111,007
========= ========= ========= =========
Net income per share
Basic $ 0.20 $ 0.14 $ 0.97 $ 1.04
========= ========= ========= =========
Assuming dilution $ 0.20 $ 0.13 $ 0.94 $ 1.02
========= ========= ========= =========
Average number of
common shares
outstanding --
basic 95,348 106,079 99,958 106,561
========= ========= ========= =========
Average number of
common shares
outstanding --
diluted 97,583 109,460 102,685 109,017
========= ========= ========= =========
NOTE: We use a supplemental performance measure, Earnings Before
Depreciation and Deferred Taxes ("EBDDT"), along with net income, to
report our operating results. EBDDT is not a measure of operating
results or cash flows from operating activities as defined by
generally accepted accounting principles. Further, EBDDT is not
necessarily indicative of cash available to fund cash needs and should
not be considered as an alternative to cash flows as a measure of
liquidity. We believe that EBDDT provides relevant information about
our operations and is useful, along with net income, for an
understanding of our operating results.
EBDDT is calculated by making various adjustments to net income.
Depreciation, amortization and deferred income taxes are added back to
net income as they represent non-cash charges. Since depreciation
expense is added back to net income in arriving at EBDDT, the portion
of gain on property sales attributable to depreciation recapture is
excluded from EBDDT. In addition, gains on the sale of non-strategic
assets and extraordinary items, including their current tax effect,
represent unusual and/or non-recurring items and are excluded from the
EBDDT calculation. A reconciliation from EBDDT to net income is
provided.
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