Crescent Operating, Inc. Announces First Quarter 1999 Earnings of $0.31 Per Share --Diluted--.FORT WORTH, Texas--(BUSINESS WIRE)--May 14, 1999-- 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 results for the quarter ended March 31, 1999. Net income for the quarter ended March 31, 1999 was $3.4 million, or $0.31 per share (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. ) compared with a net loss of ($1.2) million or ($0.11) per share (diluted) for the quarter ended March 31, 1998. Revenues of $136.7 million for the quarter ended March 31, 1999 represented a 40% increase over the quarter ended March 31, 1998 revenues of $97.4 million. Earnings before interest, taxes, depreciation and amortization Earnings before interest, taxes, depreciation and amortization (EBITDA) is a non-GAAP metric that can be used to evaluate a company's profitability.
See 10-Q. filed today with the Securities and Exchange Commission. Gerald Gerald - ["Gerald: An Exceptional Lazy Functional Programming Language", A.C. Reeves et al, in Functional Programming, Glasgow 1989, K. Davis et al eds, Springer 1990]. W. Haddock haddock: see cod. haddock Valuable North American food fish (Melanogrammus aeglefinus, family Gadidae). A bottom-dweller that feeds on invertebrates and fishes, it resembles the cod, with its chin barbel (fleshy feeler) and two anal and three dorsal , Crescent Operating's President and Chief Executive Officer, commented, "Our first quarter results reflect the outstanding performance of our divisional management teams and we believe the full year of operations will continue to reflect improved performance. I am extremely pleased with our performance during the first quarter." 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. , Crescent Operating's 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, "We continue to grow the equipment sales and leasing segment through both same store growth and strategic acquisitions. We anticipate Crescent Machinery's revenues will increase to $140 million for 1999, which is up from just $15 million for the year ended 1997. This should produce EBITDA at Crescent Machinery in excess of $24 million for 1999 and these numbers do not consider additional acquisitions. We anticipate continued growth in same store results as we increase the high margin 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. business at our dealerships. An example of our recent same store growth is our Dallas Dallas, city (1990 pop. 1,006,877), seat of Dallas co., N Tex., on the Trinity River near the junction of its three forks; inc. 1871. The second largest Texas city, after Houston, and the eighth largest U.S. branch, which we consider to be our prototype Prototype A first or original model of hardware or software. Prototyping involves the production of functionally useful and trustworthy systems through experimentation with evolving systems. store, which had 42% growth in rental revenues in the first quarter of 1999 as compared to the first quarter of 1998. We are excited about the prospect of continuing to apply our Dallas store methodologies to our other, more distribution focused, locations. When you look at Crescent Operating's trailing twelve month diluted earnings of $0.50 per share, and expected earnings of approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $0.80 for the year ended December December: see month. 1999, it demonstrates how far we have come since our losses during 1997. We anticipate the rest of 1999 to continue to show strong results as we move into the high season for our equipment sales and leasing business as well as our hospitality properties and we are projecting 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: EBITDA of in excess of $40 million for the year ended 1999." 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 of lessee One who rents real property or Personal Property from another. A lessee of land is a tenant. Cross-references Landlord and Tenant. lessee n. the person renting property under a written lease from the owner (lessor). interests in six 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, an interest in a 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 company, an interest in a refrigerated re·frig·er·ate tr.v. re·frig·er·at·ed, re·frig·er·at·ing, re·frig·er·ates 1. To cool or chill (a substance). 2. To preserve (food) by chilling. warehouse 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 company. Certain of the statements in this press release including, without limitation, statements regarding expected results for 1999 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 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, the ability of the Company to continue its acquisitions in the equipment sales and leasing sector, 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. to fund future acquisitions 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. 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 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. , quarterly reports on Form 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, filed with the Securities and Exchange Commission on June June: see month. 26, 1998. For further information, please contact Rick Knight, Chief Financial Officer, at 817/339-2212. -0-
CRESCENT OPERATING, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Amounts in thousands except per share data, unaudited)
For the three For the three
months ended months ended
March 31, March 31,
1999 1998
--------- ---------
REVENUES
Equipment sales & leasing $ 27,159 $ 7,981
Hospitality 63,032 58,265
Land development 46,557 31,131
--------- ---------
Total revenues 136,748 97,377
--------- ---------
OPERATING EXPENSES
Equipment sales & leasing expenses 26,650 7,611
Hospitality expenses 46,996 41,349
Hospitality properties rent - CEI 13,526 12,325
Land development expenses 44,861 31,780
Corporate general and
administrative expenses 420 371
--------- ---------
Total operating expenses 132,453 93,436
--------- ---------
INCOME FROM OPERATIONS 4,295 3,941
--------- ---------
INVESTMENT INCOME (LOSS) 10,007 (1,956)
--------- ---------
OTHER (INCOME) EXPENSE
Interest expense 6,185 3,825
Interest income (808) (1,232)
Other (76) 13
--------- ---------
Total other (income) expense 5,301 2,606
--------- ---------
INCOME (LOSS) BEFORE MINORITY
INTERESTS AND INCOME TAXES 9,001 (621)
INCOME TAX PROVISION 372 71
--------- ---------
INCOME (LOSS) BEFORE
MINORITY INTERESTS 8,629 (692)
MINORITY INTERESTS (5,215) (487)
--------- ---------
NET INCOME (LOSS) $ 3,414 $ (1,179)
========= =========
EARNINGS (LOSS) PER SHARE
Basic $ 0.32 $ (0.11)
========= =========
Diluted $ 0.31 $ (0.11)
========= =========
WEIGHTED AVERAGE SHARES OUTSTANDING
Basic 10,522 11,214
========= =========
Diluted 11,151 11,214
========= =========
CRESCENT OPERATING, INC.
SEGMENT FINANCIAL INFORMATION
FOR THE THREE MONTHS ENDED MARCH 31, 1999
(amounts in thousands except per share data, unaudited)
Equipment
Sales Refrigerated
and Leasing Hospitality Warehousing
--------- --------- ---------
Revenues $ 27,159 $ 63,032 $ --
Operating expenses 26,650 60,522 --
--------- --------- ---------
Income (loss)
from operations 509 2,510 --
--------- --------- ---------
Investment income (loss) -- 67 1,490
--------- --------- ---------
Other (income) expense
Interest expense 1,302 77 --
Interest income (10) (30) --
Other (12) -- --
--------- --------- ---------
Total other
(income) expense 1,280 47 --
--------- --------- ---------
Income (loss) before
income taxes and
minority interest (771) 2,530 1,490
Income tax provision
(benefit) (324) 1,012 596
--------- --------- ---------
Income (loss) before
minority interests (447) 1,518 894
Minority interests -- 18 --
--------- --------- ---------
Net income (loss) $ (447) $ 1,536 $ 894
========= ========= =========
Net income (loss)
per share, basic $ (0.04) $ 0.15 $ 0.08
========= ========= =========
Net income (loss)
per share, diluted $ (0.04) $ 0.14 $ 0.08
========= ========= =========
EBITDA Calculation: (1)
Net income (loss) $ (447) $ 1,536 $ 894
Interest expense, net 1,292 19 186
Income tax provision
(benefit) (324) 1,024 60
Depreciation and
amortization 3,246 284 436
--------- --------- ---------
EBITDA $ 3,767 $ 2,863 $ 1,576
========= ========= =========
Land
Development Other Total
--------- --------- ---------
Revenues $ 46,557 $ -- $ 136,748
Operating expenses 44,861 420 132,453
--------- --------- ---------
Income (loss)
from operations 1,696 (420) 4,295
--------- --------- ---------
Investment income (loss) 8,211 239 10,007
--------- --------- ---------
Other (income) expense
Interest expense 2,584 2,222 6,185
Interest income (734) (34) (808)
Other (63) (1) (76)
--------- --------- ---------
Total other
(income) expense 1,787 2,187 5,301
--------- --------- ---------
Income (loss) before
income taxes and
minority interest 8,120 (2,368) 9,001
Income tax provision
(benefit) 2,754 (3,666) 372
--------- --------- ---------
Income (loss) before
minority interests 5,366 1,298 8,629
Minority interests (5,233) -- (5,215)
--------- --------- ---------
Net income (loss) $ 133 $ 1,298 $ 3,414
========= ========= =========
Net income (loss)
per share, basic $ 0.01 $ 0.12 $ 0.32
========= ========= =========
Net income (loss)
per share, diluted $ 0.01 $ 0.12 $ 0.31
========= ========= =========
EBITDA Calculation: (1)
Net income (loss) $ 133 $ 1,298 $ 3,414
Interest expense, net 70 2,188 3,755
Income tax provision
(benefit) 253 (3,666) (2,653)
Depreciation and
amortization 347 (55) 4,258
--------- --------- ---------
EBITDA $ 803 $ (235) $ 8,774
========= ========= =========
(1) 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 Company's 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 Company's calculation of EBITDA is comparable to similarly
titled items reported by other companies.
|
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion