Cronos Announces Third Quarter Results.Business Editors SAN FRANCISCO--(BUSINESS WIRE)--Nov. 2, 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 September September: see month. 30, 2000. The Company reported net income of $636,000, or $0.07 per share, for the third quarter of 2000, compared to net income of $1.3 million, or $0.14 per share, for the corresponding period in 1999. Net income for the third quarter of 2000 included a non-operating gain of $461,000, or $0.05 per share, on the sale of investment securities and non-operating legal and other professional expenses of $825,000, or $0.09 per share. Net income for the quarter ended September 30, 1999 included a non-operating gain of $1.2 million, or $0.13 per share, which was partly offset by non-operating expenses of $200,000, or $0.02 per share. Total revenues for the quarter ended September 30, 2000 were $36.8 million, compared with $35.5 million for the same period in 1999. The increase in revenue was primarily due to the effects of higher utilization and a larger fleet size. Total expenses for the quarter were $36 million compared with $34.2 million for the same quarter in the prior year. A 4% 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. was offset by an increase in payments to the Company's managed container owners as a result of higher utilization and a larger managed fleet, as well as an increase in SG&A expenses which was due primarily to the non-operating legal and other professional services (job) professional services - A department of a supplier providing consultancy and programming manpower for the supplier's products. . Net income for the nine-month period ended September 30, 2000 was $4.3 million, or $0.47 per share, compared to $1.1 million, or $0.12 per share, for the same period in the prior year. Total revenues for the nine months ended September 30, 2000 were $111.4 million, compared with $105.6 million for the corresponding period in 1999. Total expenses for the first nine months of 2000 were $106.3 million compared with $104.6 million for the first nine months in 1999 reflecting an increase in payments to the Company's managed container owners which was partly offset by lower direct operating expenses and reduced interest expense. 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:
Over the past year, the Board of Directors of Cronos has explored various alternatives to enhance value for the shareholders of the Company, including the pursuit of a possible merger or sale of the Company. In considering a possible transaction, Cronos has entered into numerous confidentiality agreements with interested parties. Certain of these parties have conducted due diligence Research; analysis; your homework. This term has caught on in all industries, because it sounds so "wired." Who would want to do analysis or research when they can do due diligence. See wired. and have held negotiations with Cronos regarding a potential transaction. Such negotiations have been supervised su·per·vise tr.v. su·per·vised, su·per·vis·ing, su·per·vis·es To have the charge and direction of; superintend. [Middle English *supervisen, from Medieval Latin by the Transaction Committee of the Company's Board of Directors with the assistance and advice of Cronos' financial and legal advisors. Despite these efforts, no agreement involving a sale, merger, or other transaction involving the Company has been achieved. The Company's Board of Directors, in conjunction with its financial advisors, will continue to explore various alternatives to enhance value for the shareholders of Cronos. In addition to a possible sale or merger, the Board also will consider the pursuit of management's business plan to remain an independent company, to restore Cronos to sustained profitability and to resolve the claims involving Cronos stemming from the actions of prior management. The Company is unable to predict whether the exploration of potential alternatives involving the Company will result in a transaction. The Cronos Group 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 397,000 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. Cautionary Note 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. information that involves 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 Cronos' container lease operations, and Cronos' ability to provide innovative and cost effective solutions. For a 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 Cronos' common shares, see the Introductory Note in Cronos' 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, 1999, which was filed with the SEC on March 30, 2000. Where You Can Find Additional Information Cronos will schedule its year 2000 annual meeting of shareholders for later this year or early next year. The Company and its officers and directors may therefore be deemed to be participants in the solicitation solicitation In criminal law, the act of asking, inducing, or directing someone to commit a crime. The person soliciting another becomes an accomplice to the crime. The term also refers to the act of obtaining bribes, as well as to the crime of a prostitute who offers sexual of proxies from the Company's shareholders with respect to the matters to be presented to the shareholders at the annual meeting. Information regarding the officers and directors of the Company is included in Cronos' Annual Report on Form 10-K for the year ended December 31, 1999, under Part III (pages 24-36). The Annual Report is available free of charge at the SEC's website (www.sec.gov See .gov and GovNet. (networking) gov - The top-level domain for US government bodies. ), Cronos' website (www.cronos.com), and from Cronos' investor relations Investor relations The process by which the corporation communicates with its investors. contact listed below. This press release and other information concerning Cronos can be viewed on Cronos' website at www.cronos.com.
The Cronos Group
Condensed Income Statements
(US dollar amounts in thousands, except per share amounts)
(Unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
2000 1999 2000 1999
-------- -------- -------- --------
Gross lease revenue $ 35,083 $ 32,307 $ 103,294 $ 99,139
Commissions, fees
and other income:
- US Limited
Partnerships 325 334 990 1,020
- Unrelated parties 970 1,665 3,479 4,267
Gain on sale
of investment:
- gain on conversion
of investment 461 613 1,502 613
- realized holding
gain -- 587 2,129 587
Total revenues 36,839 35,506 111,394 105,626
Direct operating
expenses 7,068 7,365 20,989 23,228
Payments to
container owners:
- US Limited
Partnerships 6,627 6,131 19,607 18,666
- Other container
owners 11,499 10,297 33,741 29,535
Depreciation
and amortization 3,941 3,991 11,886 12,376
Selling, general
and administrative
expenses 4,692 4,175 13,110 12,314
Interest expense 2,218 2,288 7,004 8,444
Total expenses 36,045 34,247 106,337 104,563
Income before
income taxes 794 1,259 5,057 1,063
Income taxes 158 -- 709 --
Net income 636 1,259 4,348 1,063
Other comprehensive
income, net of tax -
Unrealized holding
loss on available
for sale securities (366) -- (863) --
Comprehensive income $ 270 $ 1,259 $ 3,485 $ 1,063
Net income per common
share (basic and
diluted) $ 0.07 $ 0.14 $ 0.47 $ 0.12
The Cronos Group
Condensed Consolidated Balance Sheets
(US dollar amounts in thousands, except per share amounts)
September 30, December 31,
2000 1999
(Unaudited)
---------- ----------
Assets
Cash and cash equivalents $ 7,755 $ 8,701
Amounts due from lessees (net) 28,090 26,739
Amounts receivable
from container owners 12,129 9,147
New container
equipment for resale 14,754 2,535
Net investment in
direct finance leases 210 1,090
Investments 676 1,707
Container equipment (net) 139,365 137,547
Building and other
equipment (net) 1,080 11,807
Cash deposits (restricted) 1,531 --
Intangible assets 12,873 13,405
Other assets
including prepayments 17,886 19,189
Total assets $ 236,349 $ 231,867
Liabilities and shareholders' equity
Amounts payable to
container owners $ 25,056 $ 26,620
Amounts payable to
container manufacturers 20,122 3,609
Other amounts payable
and accrued expenses 16,783 13,799
Debt and capital
lease obligations 94,456 109,978
Current and deferred
income taxes 7,401 7,058
Deferred income and
unamortized acquisition fee 8,676 10,433
Total liabilities 172,494 171,497
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 414 1,277
Accumulated deficit (4,722) (9,070)
Total shareholders' equity 63,855 60,370
Total liabilities and
shareholders' equity $ 236,349 $ 231,867
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