Cronos Announces Stronger Second Quarter Results.Business Editors SAN FRANCISCO--(BUSINESS WIRE)--Aug. 11, 2000 The Cronos Cronos swallowed his children at birth; they lived again when he was forced by Zeus to disgorge them. [Gk. Myth.: EB (1963) VI, 747] See : Cannibalism Cronos Group (Nasdaq:CRNS CRNS Corps Reserve Nuclear Stocks ) today announced its financial results for the quarter ended June June: see month. 30, 2000. The Company reported net income of $868,000, or $0.09 per share, for the quarter ended June 30, 2000 compared to a net loss of $103,000, or $(0.01) per share for the corresponding period in 1999. The Company benefited from non-recurring gains of $89,000, or $0.01 per share, on the sale of investment securities and $340,000, or $0.04 per share, on the sale of its building in the United Kingdom. These non-recurring gains were offset by $532,000, or $0.06 per share, in non-recurring legal and professional expenses. Total revenues for the second quarter of 2000 were $36 million, a 6.8% increase over total revenues of $33.7 million for the second quarter of 1999. This increase was primarily attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to the effects of higher utilization utilization, n 1. the extent to which a given group uses a particular service in a specified period. Although usually expressed as the number of services used per year per 100 or per 1000 persons eligible for the service, utilization rates may be of the Company's equipment due to improving container leasing market conditions and a larger fleet size, partially offset by lower per-diem rental rates. Total expenses in the second quarter of 2000 were $34.9 million compared with $33.8 million in the comparable quarter of 1999. Direct 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. declined by 17.9%, or $1.4 million during the quarter compared to the corresponding period in 1999 due to a reduction in inventory-related expenses for the Company's off-hire fleet. Interest expense also declined due to the effect of the Company's debt refinancing Refinancing An extension and/or increase in amount of existing debt. in 1999. These declines were offset by an increase in payments to the Company's managed container owners resulting from higher utilization and a larger managed fleet size. Net income for the six-month period ended June 30, 2000 was $3.7 million, or $0.40 per share, versus a net loss of $196,000, or ($0.02) per share, for the same period of the prior year. For six-month period ended June 30, 2000, the Company had total revenues of $74.6 million, a 6.3% increase over total revenues of $70.1 million for the corresponding quarter in 1999. Total expenses for the six-month period were $70.3 million, essentially unchanged from the corresponding period in 1999. Dennis Dennis is a male first name derived from the Greco-Roman name Dionysius meaning "servant of Dionysus", the Thracian god of wine, which is ultimately derived from the Greek Dios (Διος, "of Zeus") combined with Nysos or Nysa (Νυσα), where the J. Tietz Tietz is a surname, and may refer to:
Cronos is one of the world's leading lessors of intermodal in·ter·mod·al adj. Relating to transportation by more than one means of conveyance, as by truck and rail: intermodal transport. containers, owning and managing a fleet of over 370,000 TEU TEU Twenty-Foot Equivalent Units (intermodal shipping container) TEU Technical Escort Unit TEU Technical Escort Unit (Army) TEU Tactical Enforcement Unit TEU Treaty of European Union (twenty-foot equivalent units). The diversified diversified (di·verˑ·s Cronos fleet of dry cargo, 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. and other specialized spe·cial·ize v. spe·cial·ized, spe·cial·iz·ing, spe·cial·iz·es v.intr. 1. To pursue a special activity, occupation, or field of study. 2. containers is leased to a customer base of approximately 400 ocean carriers and transport operators around the world. Cronos provides container-leasing services through an integrated network A network that supports both data and voice and/or different networking protocols. See converged network and new public network. of offices through state-of-the-art information technology. This release discusses certain forward-looking for·ward-look·ing adj. Concerned with or making provision for the future: forward-looking educators; a forward-looking corporate plan. Adj. 1. matters that involve risks and uncertainties that could cause actual results to vary materially from estimates. Risks and uncertainties include, among other things, changes in international operations Internal Operations (I.O., IO or I/O) is a fictional American Intelligence Agency in Wildstorm comics. It was originally called International Operations. I.O. first appeared in WildC.A.T.S. volume 1 #1 (August, 1992) and was created by Brandon Choi and Jim Lee. , exchange rate risks, changes in market conditions for the Company's container lease operations and the Company's ability to provide innovative and cost-effective cost-effective, n the minimal expenditure of dollars, time, and other elements necessary to achieve the health care result deemed necessary and appropriate. solutions. For further discussion of the risk factors attendant ATTENDANT. One who owes a duty or service to another, or in some sort depends upon him. Termes de la Ley, h.t. As to attendant terms, see Powell on Morts. Index, tit. Attendant term; Park on Dower, c. 1 7. to an investment in the Company's Common shares, see the Introductory Note in the Company'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. that was filed with the SEC on March 30, 2000. This press release and other information concerning Cronos can be viewed on Cronos' website at www.cronos.com.
The Cronos Group
Condensed Consolidated Statements of Operations
(US dollar amounts in thousands, except per share amounts)
(Unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
2000 1999 2000 1999
-------- -------- -------- --------
Gross lease revenue $ 34,065 $ 32,082 $ 68,211 $ 66,832
Commissions, fees and
other income:
- US Limited
Partnerships 331 334 665 686
- Unrelated parties 1,554 1,330 2,509 2,602
Gain on sale of investment:
- gain on conversion of
investment -- -- 1,502 --
- realized holding gain 89 -- 1,668 --
-------- -------- -------- --------
Total revenues 36,039 33,746 74,555 70,120
-------- -------- -------- --------
Direct operating expenses 6,400 7,799 13,921 15,863
Payments to container
owners:
- US Limited
Partnerships 6,778 5,740 12,980 12,535
- Other container
owners 11,265 9,361 22,242 19,238
Depreciation and
amortization 3,985 3,987 7,945 8,385
Selling, general and
administrative expenses 4,121 4,013 8,418 8,139
Interest expense 2,376 2,949 4,786 6,156
-------- -------- -------- --------
Total expenses 34,925 33,849 70,292 70,316
-------- -------- -------- --------
Income (loss) before
income taxes 1,114 (103) 4,263 (196)
Income taxes 246 -- 551 --
-------- -------- -------- --------
Net income (loss) 868 (103) 3,712 (196)
Other comprehensive
income, net of tax -
Unrealized holding
loss on available
for sale securities (231) -- (497) --
-------- -------- -------- --------
Comprehensive income
(loss) 637 (103) 3,215 (196)
-------- -------- -------- --------
Net income (loss) per
common share (basic
and diluted) $ 0.09 $ (0.01) $ 0.40 $ (0.02)
-------- -------- -------- --------
The Cronos Group
Condensed Consolidated Balance Sheets
(US dollar amounts in thousands, except per share amounts)
June 30, December 31,
2000 1999
(Unaudited)
--------- ---------
Assets
Cash and cash equivalents $ 8,879 $ 8,701
Amounts due from lessees (net) 29,885 26,739
Amounts receivable from container owners 9,740 9,147
New container equipment for resale 6,809 2,535
Net investment in direct finance leases 567 1,090
Investments 1,207 1,707
Container equipment (net) 133,165 137,547
Building and other equipment (net) 1,313 11,807
Cash deposits (restricted) 5,165 --
Intangible assets 13,050 13,405
Other assets including prepayments 19,813 19,189
--------- ---------
Total assets $ 229,593 $ 231,867
--------- ---------
Liabilities and shareholders' equity
Amounts payable to container owners $ 28,958 $ 26,620
Amounts payable to container manufacturers 8,175 3,609
Other amounts payable and accrued expenses 15,889 13,799
Debt and capital lease obligations 96,361 109,978
Current and deferred income taxes 7,299 7,058
Deferred income and unamortized
acquisition fee 9,326 10,433
--------- ---------
Total liabilities 166,008 171,497
--------- ---------
Shareholders' equity
Common shares 18,317 18,317
Additional paid-in capital 49,928 49,928
Share subscriptions receivable (82) (82)
Accumulated other comprehensive income,
net of tax 780 1,277
Accumulated deficit (5,358) (9,070)
--------- ---------
Total shareholders' equity 63,585 60,370
--------- ---------
Total liabilities and shareholders' equity $ 229,593 $ 231,867
--------- ---------
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