Colonial Commercial Corp. Announces Third-Quarter Operating Results.Business Editors LEVITTOWN, N.Y.--(BUSINESS WIRE)--Nov. 13, 2000 Colonial Commercial Corp. ("Colonial") (Nasdaq: CCOM CCOM Cheshil.com CCOM Conference Council on Ministries (United Methodist Church) CCOM Chicago College of Osteopathic Medicine CCOM Conseil Canadien des Organismes de Motoneige CCOM Call Center Operations Management CCOM Center of Coastal Ocean Mapping , CCOMP), which through its subsidiaries manufactures and/or distributes doors, door hardware and climate control products and systems to contractors and architectural firms An architectural firm is a company which employs one or more licensed architects and practices the profession of architecture. History Architects (master builders) have existed since early in recorded history. The earliest recorded architects include Imhotep (c. , today announced operating results for the third quarter and first nine months of the year 2000. For the three months ended September 30, 2000, revenues increased 10% to $16.2 million, compared with revenues of $14.7 million in the third quarter of 1999. The growth in revenues primarily reflected a $301,620 increase in sales at Universal Supply Group, Inc. ("Universal") and a revenue contribution of $1,140,951 from Well-Bilt Steel Products, Inc. ("Well-Bilt"), which was acquired by Colonial in March 2000. Revenues at the Company's Atlantic Hardware and Supply Corporation ("Atlantic") subsidiary approximated $7.3 million and were relatively unchanged from the prior-year quarter. Colonial reported a net loss of ($1,008,739), or ($0.65) per 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. share, in the third quarter of 2000, compared with net income of $522,492, or $0.17 per diluted share, in the quarter ended September 30, 1999. While Atlantic and Universal generated pretax income pretax income Reported income before the deduction of income taxes. Pretax income is sometimes considered a better measure of a firm's performance than aftertax income because taxes in one period may be influenced by activities in earlier periods. of $179,860 and $25,901, respectively, in the most recent quarter, Well-Bilt recorded a pretax loss pretax loss A loss reported before tax benefits are considered. of ($765,859). The third quarter net loss also included a $331,000 reversal of tax benefits, which had been previously recognized in the six months ended June 30, 2000. This reversal was required as they are not expected to be recoverable during the balance of the year. Revenues for the nine-month period ended September 30, 2000, increased 66% to $45.0 million, compared with revenues of $27.1 million in the corresponding period of the previous year. The Company reported a net loss of ($1,811,882), or ($1.18) per diluted share, for the first nine months of 2000, versus net income of $745,020, or $0.24 per diluted share, in the year-earlier period. Pretax income of $440,748 and $36,597 at Atlantic and Universal, respectively, was more than offset by a pretax loss of ($1,820,508) at Well-Bilt. The nine-month net loss does not include any benefit for the federal tax loss generated in 2000, as it is not expected to be recoverable at this time. Atlantic ended the most recent quarter with an order 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. valued at approximately $14.4 million, while Well-Bilt's confirmed order backlog totaled $8 million. "We incurred substantial costs related to strategic growth initiatives at our Universal and Well-Bilt subsidiaries during the first nine months of 2000," commented Bernard Ber·nard , Claude 1813-1878. French physiologist noted for his study of the digestive and nervous systems. Korn, Chief Executive Officer of Colonial Commercial Corp. "We expanded Universal Supply Group's sales and marketing capabilities and allocated resources towards the development of new climate control products and services by that subsidiary. Universal also incurred expenses associated with its recently signed licensing agreement to become a Systems Integrator An individual or organization that builds systems from a variety of diverse components. With increasing complexity of technology, more customers want complete solutions to information problems, requiring hardware, software and networking expertise in a multivendor environment. for Tridium, Inc., a leading provider of Internet-based systems that allow companies to access and control `smart' control devices using standard web browsers The following is a list of web browsers. Historical Historically important browsers In order of release:
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 . This capability should significantly improve the productivity of facilities management The management of a user's computer installation by an outside organization. All operations including systems, programming and the datacenter can be performed by the facilities management organization on the user's premises. for Universal's customers and highlights management's commitment to technological leadership in the climate control marketplace. "Well-Bilt began manufacturing steel doors at its new plant in Farmingdale, New York Farmingdale is a village in Nassau County, New York in the United States. The population was 8,399 at the 2000 census. The 'Village of Farmingdale is inside the Town of Oyster Bay. Farmingdale School District includes parts of both Nassau County and Suffolk County. , in late April 2000, and shipments from the facility have increased every month. However, training and overhead absorption costs have been significant during the start-up Start-up The earliest stage of a new business venture. period, increasing Well-Bilt's reported losses and offsetting the profitability of our other operations during the first nine months of the year. We expect Well-Bilt to contribute to Colonial's growth in revenues and earnings in the future, subject to the Company securing additional financing which will allow Well-Bilt to increase production and optimize optimize - optimisation its product mix. Through our Well-Bilt and Atlantic subsidiaries, we now offer comprehensive packages of doors and door hardware to architects and property developers. The addition of Well-Bilt has allowed us to target the security/detention equipment market as a significant new growth opportunity for Colonial. "While costs associated with the above initiatives resulted in a net loss for the quarter and nine-month period, we expect these strategic investments to benefit Colonial's earnings in future years," continued Korn. "We are confident that we have brought together a group of operating companies operating company A business that engages in transactions with outsiders. with successful business models under Colonial's corporate umbrella. Our current anticipated, annual revenue `run rate' approximates $70 million and we expect Colonial to return to profitability next year." About Colonial Commercial Corp. Colonial Commercial Corp., through its ownership of Atlantic Hardware and Supply Corporation and Universal Supply Group, distributes a broad line of contract and architectural door hardware, doors and frames, and climate control products and systems to customers located in the Eastern United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. . Through its ownership of Well-Bilt Steel Products, Inc., Colonial manufactures hollow hollow 1. a depression. 2. contains a cavity. hollow back backbone has a downward curvature in the center. hollow horn a mythical disease of cattle in primitive communities; treated by removal of the horns. metal doors for commercial and detention The act of keeping back, restraining, or withholding, either accidentally or by design, a person or thing. Detention occurs whenever a police officer accosts an individual and restrains his or her freedom to walk away, or approaches and questions an individual, or stops an applications. Colonial's products are installed in commercial, residential, and institutional structures, including office buildings, hospitals, prisons, schools, government facilities, homes and high-rise apartment buildings. The Company is headquartered in Levittown, New York Levittown, a suburb of New York City, is a hamlet and unincorporated political subdivision of New York State located on Long Island in Nassau County, New York. As of the 2000 census, the community had a total population of 53,067. . Its common stock is traded on Nasdaq under the symbol "CCOM," while its convertible preferred shares Preferred shares Preferred shares give investors a fixed dividend from the company's earnings and entitle them to be paid before common shareholders. See: Preferred stock. trade on Nasdaq under the symbol "CCOMP" (Note: Each share of the Company's convertible preferred stock Convertible Preferred Stock Preferred stock that includes an option for the holder to convert the preferred shares into a fixed number of common shares, usually anytime after a predetermined date. Also known as "convertible preferred shares". is convertible into one share of the Company's common stock. Preferred stockholders will be entitled en·ti·tle tr.v. en·ti·tled, en·ti·tling, en·ti·tles 1. To give a name or title to. 2. To furnish with a right or claim to something: to a dividend, based upon a formula, when and if any dividends are declared on the Company's common stock). This press release includes statements that may constitute "forward-looking" statements, usually containing the words "believe," "estimate," "project," "expect" or similar expressions. These statements are made pursuant to the 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. provisions of 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. 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. inherently involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. Factors that would cause or contribute to such differences include, but are not limited to, contained acceptance of the Company's products in the marketplace, competitive factors, dependence upon third-party vendors, and other risks detailed in the Company's periodic report filings with the Securities and Exchange Commission. By making these forward-looking statements, the Company undertakes no obligation to update these statements for revisions or changes after the date of this release.
COLONIAL COMMERCIAL CORP.
AND SUBSIDIARIES
SELECTED FINANCIAL HIGHLIGHTS
(Unaudited)
Three Months Ended
------------------
September 30, September 30,
2000 1999
---- ----
Sales $16,198,793 $14,728,837
Cost of Sales 11,965,418 10,491,700
---------- ----------
Gross Profit 4,233,375 4,237,137
Operating Expenses 4,564,719 3,354,605
---------- ----------
Operating Income (Loss) (331,344) 882,532
---------- ----------
Interest and Other Income
(Expense), Net (315,807) (55,133)
---------- ----------
Income (Loss) Before Income
Taxes (647,151) 827,399
Income Taxes 361,588 304,907
---------- ----------
Net Income (Loss) $(1,008,739) $ 522,492
========== ==========
Net Income (Loss) Per
Common Share:
Basic $ (0.65) $ 0.34
========== ==========
Diluted $ (0.65) $ 0.17
========== ==========
Weighted Average Common Shares
Outstanding:
Basic 1,542,030 1,518,814
Diluted 1,542,030 3,147,123
COLONIAL COMMERCIAL CORP.
AND SUBSIDIARIES
SELECTED FINANCIAL HIGHLIGHTS
(Unaudited)
Nine Months Ended
-----------------
September 30, September 30,
2000 1999
---- ----
Sales $45,042,267 $27,057,905
Cost of Sales 32,638,965 19,406,079
---------- ----------
Gross Profit 12,403,302 7,651,826
Operating Expenses 13,219,349 6,415,538
---------- ----------
Operating Income (Loss) (816,047) 1,236,288
---------- ----------
Interest and Other Income
(Expense), Net (934,247) (9,161)
---------- ----------
Income (Loss) Before Income
Taxes (1,750,294) 1,227,127
Income Taxes 61,588 482,107
---------- ----------
Net Income (Loss) $(1,811,882) $ 745,020
========== ==========
Net Income (Loss)
Common Share:
Basic $ (1.18) $ 0.50
========== ==========
Diluted $ (1.18) $ 0.24
========== ==========
Weighted Average Common
Shares Outstanding:
Basic 1,529,589 1,499,021
Diluted 1,529,589 3,141,194
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