Cronos Announces Third Quarter 2002 Results.Business Editors SAN FRANCISCO--(BUSINESS WIRE)--Nov. 13, 2002 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 reported net income of $219,000, or $0.03 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, for the third quarter of 2002, compared to net income of $216,000, or $0.03 per diluted share, for the corresponding period in 2001. Total revenues for the quarter ended September September: see month. 30, 2002 were $29.5 million, compared with $31.5 million for the same period in 2001. Gross lease revenue for the quarter was $1.5 million lower than in the corresponding period of 2001, due primarily to the effect of lower dry container (1) Software that acts as a parent program to hold and execute a set of commands or to run other software routines. (2) A data structure that holds one or more different types of data. See metafile and OLE. 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. rates. However, demand for leased containers has strengthened during 2002 due to the lower levels of new container production than in recent years and increased activity in certain trade routes. As a result, 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 fleet of dry cargo containers improved to 83% at September 30, 2002 compared to 73% at the beginning of the year. Total expenses for the quarter were $29.2 million compared with $31.3 million for the same quarter in the prior year, primarily due to a decline in 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. that was partially offset by a slight increase in payments to the Company's managed container owners. Net income for the nine-month period ended September 30, 2002 was $3.0 million, or $0.40 per diluted share, compared to $2.8 million, or $0.34 per diluted share, for the same period in the prior year. Total revenues for the nine months ended September 30, 2002 were $88.9 million, compared with $96.3 million for the corresponding period in 2001. Excluding the non-recurring $2.5 million income tax benefit recorded in the second quarter of 2002 in connection with an overseas taxation settlement, net income for the first nine months of 2002 was $0.5 million, or $0.07 per diluted share. Total expenses for the first nine months of 2002 were $88.2 million compared with $93.4 million for the first nine months in 2001, reflecting lower direct operating expenses and a decrease in payments to the Company's managed container owners. The net effect of non-recurring items in the nine months ended September 30, 2001, which included $6.0 million recognized on the recovery of related party loans and $4.1 million of impairment Impairment 1. A reduction in a company's stated capital. 2. The total capital that is less than the par value of the company's capital stock. Notes: 1. This is usually reduced because of poorly estimated losses or gains. 2. and other charges, increased net income by $1.9 million, or $0.23 per diluted share. 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 390,000 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 over 450 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 using 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. for the year ended December December: see month. 31, 2001, which was filed with the SEC on March 26, 2002. This press release and other information concerning Cronos can be viewed on Cronos' website at www.cronos.com
Condensed Unaudited Consolidated Statements of Income
(US dollar amounts in thousands, except per share amounts)
Three Months Ended Nine Months Ended
September 30, September 30,
2002 2001 2002 2001
-------- -------- -------- --------
Gross lease revenue $28,279 $29,798 $84,533 $91,364
Equipment trading revenue 27 - 608 -
Commissions, fees and other
income:
- Container Equity Programs 309 334 929 1,000
- Unrelated parties 679 1,366 2,624 3,653
Realized holding gain on sale of
investment - - - 301
Equity in earnings of affiliate 169 - 169 -
-------- -------- -------- --------
Total revenues 29,463 31,498 88,863 96,318
-------- -------- -------- --------
Direct operating expenses 6,482 8,726 21,456 23,276
Payments to managed container
owners:
- Container Equity Programs 4,592 4,231 12,626 14,733
- Other Managed Container Owners 9,300 9,074 26,907 28,812
Equipment trading expenses 27 - 545 -
Depreciation and amortization 3,878 3,869 11,616 11,947
Selling, general and
administrative expenses 3,434 3,339 10,204 10,173
Interest expense 1,531 2,043 4,834 6,437
Recovery of related party loans - - - (6,000)
Impairment losses - - - 4,000
-------- -------- -------- --------
Total expenses 29,244 31,282 88,188 93,378
-------- -------- -------- --------
Income before income taxes 219 216 675 2,940
Income taxes (benefit) provision - - (2,325) 122
-------- -------- -------- --------
Net income 219 216 3,000 2,818
Other comprehensive income:
- unrealised holding loss on
available for sale securities
arising during the period - - - (150)
- reclassification adjustment - - - (294)
-------- -------- -------- --------
Comprehensive income $219 $216 $3,000 $2,374
-------- -------- -------- --------
Basic net income per common share $0.03 $0.03 $0.41 $0.34
-------- -------- -------- --------
Diluted net income per common share $0.03 $0.03 $0.40 $0.34
-------- -------- -------- --------
Condensed Unaudited Consolidated Balance Sheets
(US dollar amounts in thousands, except per share amounts)
September 30, December 31,
2002 2001
------------ -----------
Assets
Cash and cash equivalents $6,271 $4,914
Amounts due from lessees (net) 21,592 22,825
Amounts receivable from container owners 8,013 8,675
New container equipment for resale 114 1,463
Net investment in direct financing leases 7,488 7,306
Investments 3,717 -
Container equipment (net) 134,736 150,440
Other equipment (net) 498 375
Restricted cash 493 452
Goodwill 11,039 11,039
Other intangible assets 955 1,096
Other assets including prepayments 16,678 17,234
---------- ----------
Total assets $211,594 $225,819
---------- ----------
Liabilities and shareholders' equity
Amounts payable to container owners $17,909 $16,889
Amounts payable to container manufacturers 1,591 12,888
Other amounts payable and accrued expenses 11,886 13,020
Debt and capital lease obligations 104,691 107,920
Current and deferred income taxes 5,365 6,912
Deferred income and unamortized
acquisition fees 5,673 6,711
--------- ----------
Total liabilities 147,115 164,340
--------- ----------
Shareholders' equity
Common shares (2002: 7,364,580 shares, 2001:
9,158,378 shares) 14,729 18,317
Additional paid-in capital 47,434 49,846
Common shares held in treasury
(1,793,798 shares) - (6,000)
Restricted retained earnings 1,832 1,832
Retained earnings (accumulated deficit) 484 (2,516)
---------- ----------
Total shareholders' equity 64,479 61,479
---------- ----------
Total liabilities and shareholders' equity $211,594 $225,819
---------- ----------
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