Concepts Direct, Inc. Announces Land Sale and Current 4th Quarter Earnings Forecast.Business Editors LONGMONT, Colo.--(BUSINESS WIRE)--Dec. 22, 2000 Concepts Direct, Inc. (Nasdaq:CDIR CDIR Cumulative Damage Index Right Engine CDIR Chemical Demilitarization and Installation Restoration CDIR Channel Distribution Information at the Receiver ) announced today the completion of its sale of surplus land adjoining its Longmont facility and its current forecasts of 4th Quarter and 2000 annual results. The land, approximately 100 acres, was sold on December 21, 2000, for $3,980,000, of which $3,100,000 was paid at closing with the balance being carried in a three-year note. A one-time $0.45 per-share gain from the land sale includes all proceeds from this event, net of closing costs Closing Costs The numerous expenses (over and above the price of the property) that buyers and sellers normally incur to complete a real estate transaction. Costs incurred include loan origination fee, discount points, appraisal fee, title search, title insurance, survey, taxes, and approximately $1,500,000 of the Company's cost basis in the land. Concepts Direct has retained approximately 20 acres of land immediately adjoining its current facilities for its own expansion. The Company's current internal forecast for 4th quarter earnings per share from continuing operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the (excluding the benefit of the land sale) is $0.29. This is only a forecast and the final results will depend on numerous variables, the most important of which are final sales figures sales figures npl → cifras fpl de ventas , a physical count of inventory, review of inventory reserves, final accumulation of cost of sale components, and the rate of customer returns following the holiday season. Depending on the extent of change resulting from these variables, management currently believes that 4th quarter earnings per share from continuing operations (excluding the benefit of the land sale) will exceed its second best historical 4th quarter ($0.22 in 1997) and could approach the Company's best 4th quarter ($0.38 in 1996), although management believes that, without the benefit of the land sale, a new record is unlikely. The Company currently expects total 4th Quarter earnings to be at least $0.67 per share, including the one-time gain of $0.45 per share attributable to the land sale. Concepts Direct experienced a total loss of $0.34 per share in the fourth quarter of 1999, including a loss of $0.09 per share related to operations discontinued in the third quarter of 2000. The 4th Quarter results will reduce the Company's total losses for the year, which the Company currently expects will be no more than $0.62 per share. Of that loss, $0.55 per share is from discontinued operations Discontinued operations Divisions of a business that have been sold or written off and that no longer are maintained by the business. . All EPS (Encapsulated PostScript) A PostScript file format used to transfer a graphic image between applications and platforms. EPS files contain PostScript code as well as an optional preview image in TIFF, WMF, PICT or EPSI, the latter being an ASCII-only format. calculations for 2000 assume no tax effect due to net operating loss carryforwards Net operating loss carryforwards Application of losses to offset earnings in future years. accumulated during the past two years. As a result of these positive financial developments, along with the sale-leaseback of its building announced November 7, the Company has paid down all of its bank debt and is debt free, except for the lease financing associated with the building it occupies and some minor capital lease obligations. J. Michael Wolfe Michael Wolfe (Born 3 April, 1945, United States) is a poet, author, and the President and Executive Producer of Unity Productions Foundation. He is also a frequent lecturer on Islamic issues at universities across the United States including Harvard, Georgetown, Stanford, SUNY , President & 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 Concepts Direct, commented: "The Company does not ordinarily forecast financial results prior to the availability of audited financial statements for the period in question. However, the land sale and our improved fourth quarter results are of sufficient magnitude to warrant the company making an announcement. We're extremely pleased to complete the sale of the surplus land for a number of reasons. Most important, we believe the capital from this transaction solidifies our financial position heading into 2001. We also currently believe we have sufficient capital to meet all of our obligations and to prudently invest in the growth of our catalog and Internet retailing concepts (including potential growth through appropriate acquisition opportunities that fit our strategic objectives). "Further, sales for all of our catalogs and their associated websites have been solid during the holiday season. I'm especially pleased by the strong sales for Colorful Images, our flagship catalog, to both existing customers and prospects. I'm also pleased to report that our operations team has done an excellent job of meeting customer demand. Our service levels during the critical holiday buying season were among the best we've ever had." About Concepts Direct, Inc. Concepts Direct is a direct marketing company focused on building its catalog and Internet retailing initiatives. The Company sells personalized per·son·al·ize tr.v. per·son·al·ized, per·son·al·iz·ing, per·son·al·iz·es 1. To take (a general remark or characterization) in a personal manner. 2. To attribute human or personal qualities to; personify. paper products and a diverse line of merchandise, including gift items, home decorative items, collectibles and apparel. Concepts Direct sells its merchandise via the Colorful Images, Linda Anderson, Snoopy Snoopy world’s most famous beagle. [Comics: “Peanuts” in Horn, 542] See : Dogs Snoopy imaginative dog. [Comics: “Peanuts” in Horn, 542–543] See : Illusion (TM) etc., Linda Anderson's Collectibles and the Music Stand catalogs. In addition, the Company owns and operates numerous web sites, including www.ColorfulImages.com, www.LindaAnderson.com, www.SnoopyStore.com, www.theMusicStand.com and www.NewBargains.com. Cautionary Statement This press release contains certain 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. as such term is defined in 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. Company statements that are not historical facts, including statements about the Company's expectations, beliefs, plans and objectives are forward-looking statements and involve various risks and uncertainties, including the risks associated with starting new businesses. Additional discussion of factors that could cause actual results to differ materially from management's expectations, beliefs, plans and objectives is contained in the Company's SEC filings. |
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