Crescent Operating, Inc. Announces 1999 Results.Business Editors FT. WORTH, Texas--(BUSINESS WIRE)--April 4, 2000 Crescent crescent, emblematic representation of the quarter moon. The crescent and star, ancient Byzantine symbols that became the emblems of Constantinople, were also assumed as the standard of the Ottoman Turks. Operating, Inc. ("Crescent Operating" or the "Company") (Nasdaq:COPI COPI Chevron Overseas Petroleum Inc. COPI Construction Output Price Index (UK) COPI Court-Ordered Protected Individual ) today announced its operating results for the quarter and year ended December December: see month. 31, 1999. For the year ended December 31, 1999 -- Crescent Operating's revenues for the quarter ended December 31, 1999 were approximately $232 million which represented a 31% increase over revenues of approximately $177 million for the quarter ended December 31, 1998. -- Crescent Operating's net loss for the quarter ended December 31, 1999 was approximately $3.8 million, or ($0.35) per share compared with net income of approximately $0.3 million or $0.03 per share for the quarter ended December 31, 1998. For the quarter ended December 31, 1999 -- Crescent Operating's revenues for the quarter ended December 31, 1999 were approximately $232 million which represented a 31% increase over revenues of approximately $177 million for the quarter ended December 31, 1998. -- Crescent Operating's net loss for the quarter ended December 31, 1999 was approximately $3.8 million, or ($0.35) per share compared with net income of approximately $0.3 million or $0.03 per share for the quarter ended December 31, 1998. See Crescent Operating's Annual 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 a complete discussion of the Company's financial results. John C. Goff n. 1. A silly clown. 1. A game. See Golf. , President and Chief Executive Officer, commented that, "1999 was a developmental year for the Company. Within our diverse business base, we accomplished certain goals, which better prepare the Company for the future. We have completed the integration process of the various acquisitions within Crescent Machinery and believe that we will start to realize the synergies of the consolidated con·sol·i·date v. con·sol·i·dat·ed, con·sol·i·dat·ing, con·sol·i·dates v.tr. 1. To unite into one system or whole; combine: group in the future. Major construction projects at Sonoma Sonoma may refer to
Ventana Medical is one of the world’s leading developers and manufacturers of medical diagnostic instrument and reagent systems providing leading-edge automation technology for use in slide-based diagnosis of cancer and infectious disease. hindered current year hospitality earnings but provide us with a much better product for the future. Additionally, although the temperature controlled logistics business continues to face lower than anticipated margins, it has allowed us an opportunity to embark em·bark v. em·barked, em·bark·ing, em·barks v.tr. 1. To cause to board a vessel or aircraft: stopped to embark passengers. 2. upon a business-to-business  This article or section needs copy editing for grammar, style, cohesion, tone and/or spelling.You can assist by [ editing it] now. e-commerce e-commerce, commerce conducted over the Internet, most often via the World Wide Web. E-commerce can apply to purchases made through the Web or to business-to-business activities such as inventory transfers. venture that is currently in the developmental stages." Jeffrey L. Stevens Stevens, family of U.S. inventors. John Stevens, 1749–1838, b. New York City, was graduated from King's College (now Columbia Univ.) in 1768. , Executive Vice President and Chief Operating Officer Chief Operating Officer (COO) The officer of a firm responsible for day-to-day management, usually the president or an executive vice-president. , further commented, "During 1999, certain tax law changes were enacted and will be effective in January January: see month. 2001. These changes will allow real estate investment trusts greater latitude latitude, angular distance of any point on the surface of the earth north or south of the equator. The equator is latitude 0°, and the North Pole and South Pole are latitudes 90°N and 90°S, respectively. to engage in activities outside of traditional real estate investments and are expected to reduce the number of opportunities offered to the Company by Crescent Real Estate Equities Company Crescent Real Estate Equities Co. (NYSE: CEI) is a Fort Worth, Texas-based real estate investor with holdings mainly in office and hotel properties, including several landmark buildings in the southern United States. ("Crescent Equities") (NYSE NYSE See: New York Stock Exchange :CEI CEI Competitive Enterprise Institute CEI Conferenza Episcopale Italiana (Italian bishop conference) CEI Central European Initiative CEI Comitato Elettrotecnico Italiano (Italian Electrotechnical Committee) ) under the intercompany agreement. Crescent Equities has expressed an interest in certain of the investments owned by the Company that the tax law change will allow Crescent Equities to own or operate. The Company is exploring alternatives with Crescent Equities regarding a potential future transaction with respect to certain of the Company's assets." On February February: see month. 16, 2000, the Company announced that its newly formed subsidiary, COPI Healthcare, Inc., ("COPI Healthcare") had entered into an agreement, subject to numerous closing conditions, to purchase the core business assets of Charter Behavioral Health Behavioral health was first used in the 1980's to name the combination of the fields mental health and substance abuse. As an example, an organization serving both mental health and substance abuse clients might refer to its practice as behavioral health or Systems, LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control ("CBHS CBHS Christian Brothers High School (Memphis, TN) CBHS Chemical Biological Hardened Shelter ") out of bankruptcy bankruptcy, in law, settlement of the liabilities of a person or organization wholly or partially unable to meet financial obligations. The purposes are to distribute, through a court-appointed receiver, the bankrupt's assets equitably among creditors and, in most . On March 27, 2000, COPI Healthcare notified CBHS that it does not expect all of the closing conditions to be satisfied and therefore COPI Healthcare does not expect to close the purchase pursuant to the agreement. Crescent Operating is a diversified management company diversified management company An investment company with a minimum of 75% of its assets as cash, government securities, securities of other investment companies, and other securities subject to a limitation of no more than 5% of the diversified management which through various subsidiaries and affiliates, owns, leases or operates a portfolio of assets consisting primarily of seven full-service full-ser·vice adj. Associated with or offering complete service: full-service gasoline pumps; full-service banks. hotels and two destination health and fitness resorts, its interest in CBHS, an interest in a temperature controlled logistics operating company operating company A business that engages in transactions with outsiders. , an interest in three real estate development operations, and an equipment sales and leasing business. Certain of the statements in this press release constitute 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. within the meaning of the federal securities laws, including Section 27A of the Securities Act of 1933, as amended a·mend v. a·mend·ed, a·mend·ing, a·mends v.tr. 1. To change for the better; improve: amended the earlier proposal so as to make it more comprehensive. 2. , and Section 21E of the Securities Exchange Act of 1934, as amended. Although Crescent Operating believes that the expectations reflected in such forward-looking statements are based upon reasonable assumptions, Crescent Operating's actual results could differ materially from those set forth in the forward-looking statements. Factors that could cause actual results to differ materially from Crescent Operating's expectations include, among others, the ability of the Company's segments to continue to achieve operating results at or above current levels and at a level sufficient to meet current projections, Crescent Operating's ability to service existing debt and meet other operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. , the availability of debt and equity financing Equity Financing The act of raising money for company activities by selling common or preferred stock to individual or institutional investors. In return for the money paid, shareholders receive ownership interests in the corporation. , and the possibility that Crescent Operating's outstanding debt (some of which requires so-called so-called adj. 1. Commonly called: "new buildings ... in so-called modern style" Graham Greene. 2. balloon payments The final installment of a loan to be paid in an amount that is disproportionately larger than the regular installment. When a loan is made, repayment of the principal, which is the amount of the loan, plus the interest that is owed on it, is divided into installments due at of principal) may be refinanced at higher interest rates or otherwise on terms less favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. to Crescent Operating, and other general risk factors. For a more complete discussion of these and other risk factors, please see Crescent Operating's SEC reports, including its annual report on Form 10-K, quarterly reports on Form 10-Q Form 10-Q See 10-Q. , reports on Form 8-K Form 8-K The form required by the SEC when a publicly held company incurs any event that might affect its financial situation or the share value of its stock. Form 8-K See 8-K. , and the Company's Registration Statement on Form S-4. For further information, please contact Rick Knight, Chief Financial Officer at 817/339-2212. Crescent Operating is also online at www.crescentoperating.com.
CRESCENT OPERATING, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Amounts in thousands, except per share data)
Crescent Operating, Inc.
------------------------------------
For the For the For the period
Year Ended Year Ended from May 9, 1997
December 31, December 31, to December 31,
1999 1998 1997
------------- ------------- ---------------
REVENUES
Equipment sales
& leasing $ 136,343 $ 85,365 $ 10,518
Hospitality 246,763 229,491 79,468
Land development 334,881 178,392 66,896
------------- ------------- -------------
Total revenues 717,987 493,248 156,882
------------- ------------- -------------
OPERATING EXPENSES
Equipment sales &
leasing 131,606 79,011 9,783
Hospitality 191,465 170,556
Hospitality properties 62,542
rent - CEI 54,012 52,276 16,694
Land development 324,432 178,372 67,095
Corporate general and
administrative 2,605 3,147 1,761
------------- ------------- -------------
Total operating
expenses 704,120 483,362 157,875
------------- ------------- -------------
INCOME (LOSS) FROM
OPERATIONS 13,867 9,886 (993)
------------- ------------- -------------
INVESTMENT INCOME (LOSS) 20,939 27,684 (16,423)
------------- ------------- -------------
OTHER (INCOME) EXPENSE
Interest expense 30,775 18,262 5,481
Interest income (4,046) (3,876) (1,751)
Other 131 182 (159)
------------- ------------- -------------
Total other (income)
expense 26,860 14,568 3,571
------------- ------------- -------------
INCOME (LOSS) BEFORE
INCOME TAXES AND
MINORITY INTERESTS 7,946 23,002 (20,987)
INCOME TAX PROVISION
(BENEFIT) (3,471) 5,521 612
------------- ------------- -------------
INCOME (LOSS) BEFORE
MINORITY INTERESTS 11,417 17,481 (21,599)
MINORITY INTERESTS (14,112) (16,340) (566)
------------- ------------- -------------
NET INCOME (LOSS) $ (2,695) $ 1,141 $ (22,165)
============= ============= =============
EARNINGS (LOSS) PER SHARE
Basic $ (0.26) $ 0.10 $ (2.00)
============= ============= =============
Diluted $ (0.26) $ 0.10 $ (2.00)
============= ============= =============
WEIGHTED AVERAGE SHARES
OUTSTANDING
Basic 10,363 11,206 11,073
============= ============= =============
Diluted 10,363 11,943 11,073
============= ============= =============
CRESCENT OPERATING, INC.
SEGMENT FINANCIAL INFORMATION
FOR THE TWELVE MONTHS ENDED DECEMBER 31, 1999
(Amounts in thousands, except share data)
Equipment Temperature
Sales Controlled
and Leasing Hospitality Logistics
----------- ----------- -----------
Revenues $ 136,343 $ 246,763 $ --
Operating expenses 131,606 245,477 2
----------- ----------- -----------
Income (loss) from operations 4,737 1,286 (2)
----------- ----------- -----------
Investment income (loss) -- (851) (2,275)
----------- ----------- -----------
Other (income) expense
Interest expense 6,841 738 --
Interest income (94) (120) --
Other 287 -- --
----------- ----------- -----------
Total other (income) expense 7,034 618 --
----------- ----------- -----------
Income (loss) before income
taxes and minority interests (2,297) (183) (2,277)
Income tax provision (benefit) (1,081) (50) (911)
----------- ----------- -----------
Income (loss) before
minority interests (1,216) (133) (1,366)
Minority interests -- 932 --
----------- ----------- -----------
Net income (loss) $ (1,216) $ 799 $ (1,366)
----------- ----------- -----------
----------- ----------- -----------
Net income (loss) per share,
basic $ (0.12) $ 0.08 $ (0.13)
----------- ----------- -----------
----------- ----------- -----------
Net income (loss) per share,
diluted $ (0.12) $ 0.08 $ (0.13)
----------- ----------- -----------
----------- ----------- -----------
EBITDA Calculation: (a)
Net income (loss) $ (1,216) $ 799 $ (1,366)
Interest expense, net 6,747 162 541
Income tax provision (benefit) (1,081) 571 (1,045)
Depreciation and amortization 15,041 1,087 2,487
----------- ----------- -----------
EBITDA $ 19,491 $ 2,619 $ 617
----------- ----------- -----------
----------- ----------- -----------
Land
Development Other Total
----------- ----------- -----------
Revenues $ 334,881 $ -- $ 717,987
Operating expenses 324,432 2,603 704,120
----------- ----------- -----------
Income (loss) from operations 10,449 (2,603) 13,867
----------- ----------- -----------
Investment income (loss) 23,825 240 20,939
----------- ----------- -----------
Other (income) expense
Interest expense 14,767 8,429 30,775
Interest income (3,441) (391) (4,046)
Other (156) -- 131
----------- ----------- -----------
Total other (income) expense 11,170 8,038 26,860
----------- ----------- -----------
Income (loss) before income
taxes and minority interests 23,104 (10,401) 7,946
Income tax provision (benefit) 7,293 (8,722) (3,471)
----------- ----------- -----------
Income (loss) before
minority interests 15,811 (1,679) 11,417
Minority interests (15,044) -- (14,112)
----------- ----------- -----------
Net income (loss) $ 767 $ (1,679) $ (2,695)
----------- ----------- -----------
----------- ----------- -----------
Net income (loss) per share,
basic $ 0.07 $ (0.16) $ (0.26)
----------- ----------- -----------
----------- ----------- -----------
Net income (loss) per share,
diluted $ 0.07 $ (0.16) $ (0.26)
----------- ----------- -----------
----------- ----------- -----------
EBITDA Calculation: (a)
Net income (loss) $ 767 $ (1,679) $ (2,695)
Interest expense, net 557 8,038 16,045
Income tax provision (benefit) 700 (8,722) (9,577)
Depreciation and amortization 1,466 (133) 19,948
----------- ----------- -----------
EBITDA $ 3,490 $ (2,496) $ 23,721
----------- ----------- -----------
----------- ----------- -----------
(a) EBITDA represents earnings before interest, income taxes,
depreciation and amortization. Amounts are calculated based on the
Company's ownership percentage of the EBITDA components. Management
believes that EBITDA can be a meaningful measure of the Companys
operating performance, cash generation and ability to service debt.
However, EBITDA should not be considered as an alternative to either:
(i) net earnings (determined in accordance with GAAP); (ii) operating
cash flow (determined in accordance with GAAP); or (iii) liquidity.
There can be no assurance that the Companys calculation of EBITDA is
comparable to similarly titled items reported by other companies.
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