Catellus Announces Third Quarter 2001 Results; Per Share Earnings Before Depreciation and Deferred Taxes Up 9% in Q3 and 20% Year to Date Over Same Periods in 2000.Business Editors SAN FRANCISCO--(BUSINESS WIRE)--Oct. 23, 2001 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 ) today reported earnings before depreciation and deferred taxes (EBDDT) of $46.3 million for the third quarter of 2001 compared to $45.7 million for the third 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 third quarter was $0.45 per share, a 9% increase over the $0.42 per share recorded in the third quarter of 2000. For the nine months ended September September: see month. 30, 2001, EBDDT per share was $1.34, a 20% increase over the first nine months of 2000. Net income on a diluted per share basis for the quarter was $0.28, a 15% decrease from the third quarter of 2000. For the nine months ended September 30, 2001, net income on a diluted per share basis was $0.74, a 17% decrease from the first nine months of 2000. This decrease is due mainly to the sale of a total of 405,000 acres of desert lands in the first and third quarters of 2000, a sale of non-strategic assets not included in the Company's EBDDT calculations. "There has been an obvious 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. this year with the Bay Area markets hit especially hard," commented Nelson C. Rising, chairman and chief executive officer of 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. . "However, our business model has allowed us to continue to report strong performance." In support of his comment, Mr. Rising cited the following: -- During the third quarter Catellus signed leases for 2.3 million square feet of new build-to-suit developments (a record quarter for Catellus in new build-to-suit activity). -- Total construction in progress is expected to contribute $32 million in annualized NOI. -- Over the last twelve months, Catellus has completed transactions establishing over $225 million of land value at Mission Bay and Pacific Commons through sales, ground leases, and pre-leased development activities. -- The residential group contributed $21.5 million in pre-tax earnings through the first nine months of 2001. At quarter end, Catellus had cash of $498 million, after the repurchase re·pur·chase tr.v. re·pur·chased, re·pur·chas·ing, re·pur·chas·es To buy (something) again. n. The act of buying something that one previously sold or owned. Noun 1. of 2.4 million shares of the Company's stock at a cost of $43.1 million during the third quarter. Rising explained, "This strong cash position allows us to operate in a challenging economic environment and invest in new opportunities or in our stock repurchase Stock repurchase A firm's repurchase of outstanding shares of its common stock. program as part of our strategy to increase the per share value of the Company." Since the end of the third quarter, the Company purchased 727,000 shares at a cost of $12.7 million and has approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $35 million remaining on its current share repurchase Share Repurchase A program by which a company buys back its own shares from the marketplace, reducing the number of outstanding shares. This is usually an indication that the company's management thinks the shares are undervalued. authorization The right or permission to use a system resource; the process of granting access. See access control. . During the third quarter, Catellus completed significant senior management changes with the promotion of two members of its senior management team who have been instrumental in creating and executing the Company's growth strategy over the past six years. Tim Beaudin, as the new executive vice president of Catellus Development Corporation, will oversee the Company's investment strategy and continue to oversee the asset management group. Ted Antenucci, newly named president of the Catellus Commercial Group, will lead the development of the Company's suburban commercial land portfolio. Rising concluded, "Given our continued operating strength, increased NOI NOI Net Operating Income NOI Notice of Intent NOI Nation of Islam NOI Notice of Inquiry NOI Neuro Orthopaedic Institute NOI New Organizing Institute NOI Notice of Interest NOI No Offense Intended NOI National Olympiad in Informatics , development pipeline and sales 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. , we expect EBDDT per share to grow approximately 20% this year over 2000, in line with our earlier guidance." Catellus Development Corporation will hold a conference call to discuss this quarter's results on Wednesday Wednesday: see week. , October October: see month. 24th, 2001, at 9:00 AM Pacific Daylight For other uses, see Daylight (disambiguation). Daylight or the light of day is the combination of all direct and indirect sunlight outdoors during the daytime (and perhaps twilight). Time (Noon EDT EDT abbr. Eastern Daylight Time EDT Eastern Daylight Time EDT n abbr (US) (= Eastern Daylight Time) → hora de verano de Nueva York EDT ). The dial-in phone number for the call is 888-639-6205. International callers should dial 952-556-2846. 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 Catellus' website at www.catellus.com. A replay of the conference call will be available over the Internet from Catellus' website, or by telephone at 1-800-475-6701. The pass code for the telephone replay is 604745. Both replays will be available through November November: see month. 7th, 2001. A copy of the Third 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 RENTAL. A roll or list of the rents of an estate containing the description of the lands let, the names of the tenants, and other particulars connected with such estate. This is the same as rent roll, from which it is said to be corrupted. properties totaling 30.3 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 41 million square feet of new commercial development and an estimated 10,500 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 or recession; product and geographical ge·o·graph·ic also ge·o·graph·i·cal adj. 1. Of or relating to geography. 2. Concerning the topography of a specific region. ge 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-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the fiscal year ended December December: see month. 31, 2000, filed with the Securities and Exchange Commission.
CATELLUS DEVELOPMENT CORPORATION
CONSOLIDATED BALANCE SHEET
(In thousands)
(Unaudited)
September 30, December 31,
2001 2000
----------- -----------
Assets
Properties $ 2,198,642 $ 2,025,813
Less accumulated depreciation (342,677) (320,275)
----------- -----------
1,855,965 1,705,538
Other assets and deferred charges, net 107,878 121,033
Notes receivable, less allowance 31,988 36,119
Accounts receivable, less allowance 27,930 30,816
Restricted cash and investments 28,558 45,478
Cash and cash equivalents 469,274 336,558
----------- -----------
$ 2,521,593 $ 2,275,542
=========== ===========
Liabilities and stockholders' equity
Mortgage and other debt $ 1,301,316 $ 1,134,563
Accounts payable and accrued expenses 106,968 96,274
Deferred credits and other liabilities 146,912 58,722
Deferred income taxes 282,718 247,975
----------- -----------
Total liabilities 1,837,914 1,537,534
----------- -----------
Minority interests 55,114 54,763
----------- -----------
Stockholders' equity
Common stock -- 109,547 and 108,088 shares
issued at September 30, 2001 and December
31, 2000, respectively 1,096 1,081
Paid-in capital 513,620 493,420
Treasury stock, at cost (10,853 and 1,997
shares at September 30, 2001 and December
31, 2000, respectively) (180,580) (28,660)
Accumulated earnings 294,429 217,404
----------- -----------
Total stockholders' equity 628,565 683,245
----------- -----------
Total $ 2,521,593 $ 2,275,542
=========== ===========
CATELLUS DEVELOPMENT CORPORATION
EARNINGS BEFORE DEPRECIATION AND DEFERRED TAXES (EBDDT)
(In thousands, except per share data)
(Unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
2001 2000 2001 2000
-------- -------- -------- --------
Rental properties
Rental revenue $ 59,116 $ 52,523 $172,025 $153,179
Property operating costs (17,390) (14,251) (45,598) (40,640)
Equity in earnings of
operating joint ventures,
net 1,184 1,324 7,017 7,913
-------- -------- -------- --------
42,910 39,596 133,444 120,452
-------- -------- -------- --------
Property sales and fee
services
Sales revenue 64,324 213,190 190,186 396,189
Cost of sales (44,785) (176,801) (124,912) (307,380)
-------- -------- -------- --------
Gain on property sales 19,539 36,389 65,274 88,809
Equity in earnings of
development joint ventures,
net 13,489 9,238 21,616 12,084
-------- -------- -------- --------
Total gain on property
sales 33,028 45,627 86,890 100,893
Management and development
fees 1,266 2,749 3,820 9,342
Selling, general and
administrative expenses (6,373) (14,249) (21,953) (33,581)
Other, net (127) (3,043) 5,955 (7,963)
-------- -------- -------- --------
27,794 31,084 74,712 68,691
-------- -------- -------- --------
Interest expense (13,895) (12,957) (43,605) (33,529)
Corporate administrative
costs (4,685) (3,656) (15,292) (11,376)
Other, net 1,152 (743) 7,858 (1,495)
Minority interests (1,604) (5,294) (5,316) (8,768)
-------- -------- -------- --------
Pre Tax EBDDT 51,672 48,030 151,801 133,975
Income tax -- current (5,343) (2,378) (12,086) (12,255)
-------- -------- -------- --------
Earnings before depreciation
and deferred taxes $ 46,329 $ 45,652 $139,715 $121,720
======== ======== ======== ========
Earnings before depreciation
and deferred taxes per
share of common stock --
basic $ 0.47 $ 0.43 $ 1.38 $ 1.14
======== ======== ======== ========
Earnings before depreciation
and deferred taxes per
share of common stock --
assuming dilution $ 0.45 $ 0.42 $ 1.34 $ 1.12
======== ======== ======== ========
Average number of common
shares outstanding -- basic 99,290 106,039 101,518 106,723
======== ======== ======== ========
Average number of common
shares outstanding --
diluted 102,178 109,398 104,389 108,884
======== ======== ======== ========
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.
CATELLUS DEVELOPMENT CORPORATION
RECONCILIATION OF EARNINGS BEFORE DEPRECIATION AND
DEFERRED TAXES TO NET INCOME
(In thousands, except per share data)
(Unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
2001 2000 2001 2000
-------- -------- -------- --------
Earnings before depreciation
and deferred taxes $ 46,329 $ 45,652 $139,715 $121,720
Depreciation and
amortization (12,877) (11,661) (38,743) (33,910)
Depreciation recapture 8,176 4,289 11,428 14,486
Deferred income taxes (13,747) (21,338) (39,276) (52,018)
Gain on non-strategic asset
sales 765 18,662 3,901 46,131
-------- -------- -------- --------
Net income $ 28,646 $ 35,604 $ 77,025 $ 96,409
======== ======== ======== ========
Net income per share
Basic $ 0.29 $ 0.34 $ 0.76 $ 0.90
======== ======== ======== ========
Assuming dilution $ 0.28 $ 0.33 $ 0.74 $ 0.89
======== ======== ======== ========
Average number of common
shares outstanding -- basic 99,290 106,039 101,518 106,723
======== ======== ======== ========
Average number of common
shares outstanding --
diluted 102,178 109,398 104,389 108,884
======== ======== ======== ========
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