Crown Group, Inc. First Quarter Earnings Per Share Rise 28% On Revenues of $83 Million.Business Editors DALLAS--(BUSINESS WIRE)--Sept. 14, 2000 Crown Group, Inc. (Nasdaq:CNGR CNGR Commission on the National Guard and Reserves ) today announced results for the first quarter of FY2001. For the three months ended July 31, 2000, revenues increased 70% to $82.5 million, compared with $48.6 million in the first quarter of the previous fiscal year. Net income for the most recent quarter totaled $2,767,142, compared with $2,578,407 in the year-earlier period. Diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of increased 28% to $0.32 in the quarter ended July 31, 2000, versus $0.25 in the quarter ended July 31, 1999. Earnings per share were calculated using approximately 8.6 million average 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. shares outstanding in the most recent quarter, compared with approximately 10.5 million average diluted shares outstanding in the prior-year period. The decrease in average shares outstanding was primarily due to the Company's repurchase re·pur·chase tr.v. re·pur·chased, re·pur·chas·ing, re·pur·chas·es To buy (something) again. n. The act of buying something that one previously sold or owned. Noun 1. of its shares in the open market and in private transactions throughout the past year. Net income for the quarter ended July 31, 1999 included Crown's share of earnings generated by Casino Magic Casino Magic is a brand name of casinos operated by Pinnacle Entertainment, a brand acquired from their acquisition of Casino Magic Corporation, and include:
CMN Children's Miracle Network (since 1983; Salt Lake City, Utah) CMN Certificate of Medical Necessity CMN Canadian Museum of Nature CMN Community Mapping Network CMN Common Information ), which approximated $741,000. In October 1999, Crown sold its interest in CMN for a pretax pre·tax adj. Existing before tax deductions: pretax income. pretax adj [profit] → vor (Abzug der) Steuern gain of approximately $10.7 million. Excluding CMN's earnings from last year's results, the Company's pretax income pretax income Reported income before the deduction of income taxes. Pretax income is sometimes considered a better measure of a firm's performance than aftertax income because taxes in one period may be influenced by activities in earlier periods. increased 79% to $5,510,784 in the first quarter of FY2001, compared with $3,077,099 in the year-earlier period. "I am very pleased with the performance of our subsidiaries over the quarter, which was in line with management expectations," commented Edward R. McMurphy, President and Chief Executive Officer of Crown Group. "The increase in revenues and earnings was primarily attributable to strong performances by our America's Car-Mart subsidiary and Smart Choice Automotive Group, Inc., which Crown acquired in December 1999. Both Precision IBC IBC International Building Code IBC Iraq Body Count IBC Institutional Biosafety Committee IBC Inflammatory Breast Cancer IBC International Business Company IBC Independence Blue Cross IBC Insurance Bureau of Canada IBC International Broadcasting Convention and Concorde Acceptance also reported strong results for the quarter. I look forward to continued earnings success from the Crown companies for the remainder of the year." Crown Group, Inc. is a diversified buy-out buy·out also buy-out n. 1. The purchase of the entire holdings or interests of an owner or investor. 2. The purchase of a company or business: firm, which seeks to enhance shareholder value through the acquisition, development and operation of small-cap companies with significant growth potential. The Company currently owns (i) 99% of America's Car-Mart, Inc. and 70% of Smart Choice Automotive Group, Inc. (OTCBB OTCBB See OTC Bulletin Board (OTCBB). :SMCH SMCH Standard Mixed Cargo Harness ), vertically integrated used car sales and finance companies; (ii) 100% of Precision IBC, Inc., a firm specializing in the sale and rental of intermediate bulk containers An Intermediate bulk container (IBC) is a container constructed of molded plastic, fiberglass, or plywood with steel reinforcing and is used for storage and transportation of goods. ; (iii) 80% of Concorde Acceptance Corporation, a sub-prime mortgage lender; (iv) 90% of CG Incorporated S.A. de C.V., which operates two casinos in El Salvador El Salvador (ĕl sälväthōr`), officially Republic of El Salvador, republic (2005 est. pop. 6,705,000), 8,260 sq mi (21,393 sq km), Central America. ; (v) 8.8% of Mariah Vision3, Inc., a software developer specializing in 3-D graphic design; and (vi) 6.7% of Monarch Venture Partners Fund I, a venture capital fund focused on internet-related and emerging technology companies. Crown Group is headquartered in Dallas and its common stock is traded on the Nasdaq National Market under the symbol "CNGR." This press release includes statements that may constitute "forward-looking" statements, usually containing the words "believe," "estimate," "project," "expect," or similar expressions. These statements are made pursuant to the safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. provisions of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. 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. inherently involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, those relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the development of the Company's businesses, risks associated with acquisitions, continued availability of lines of credit for the Company's businesses, changes in interest rates, changes in the industries in which the Company operates, competition, dependence on existing management, and other risks which are discussed in the Company's periodic filings with the Securities and Exchange Commission. By making these forward-looking statements, Crown Group undertakes no obligation to update these statements for revisions or changes after the date of this release. (Financial Highlights Follow)
CROWN GROUP, INC. AND SUBSIDIARIES
SELECTED FINANCIAL HIGHLIGHTS
(Unaudited)
Three Months Ended July 31,
--------------------------
2000 1999
--------------------------
Total revenues $82,450,929 $ 48,555,936
Costs and expenses 76,940,145 45,478,837
Equity in earnings of
unconsolidated subsidiaries -- 740,802
----------- ------------
Income before taxes
& minority interests 5,510,784 3,817,901
Provision for income taxes 2,248,436 1,213,037
Minority interests 495,206 26,457
----------- ------------
Net income $ 2,767,142 $ 2,578,407
=========== ============
Earnings per share:
Basic $ 0.34 $ 0.26
=========== ============
Diluted $ 0.32 $ 0.25
=========== ============
Weighted average number of shares outstanding:
Basic 8,179,391 10,068,220
Diluted 8,582,006 10,512,850
CROWN GROUP, INC. AND SUBSIDIARIES
(Unaudited)
Quarter Ended July 31
--------------------------
REVENUE CONTRIBUTION ($000) FY2001 FY2000
----------- ------------
Automobile $ 77,521 $ 44,570
IBCs 1,730 1,487
Mortgage 2,402 1,841
Other 1,155 1,111
Eliminations (357) (453)
----------- ------------
Consolidated Revenues $ 82,451 $ 48,556
=========== ============
INCOME (LOSS) BEFORE TAXES
AND MINORITY INTERESTS ($000) FY2001 FY2000
----------- ------------
Automobile $ 6,110 $ 3,753
IBCs 255 205
Mortgage 201 123
Other (1,055) (263)
----------- ------------
Income before taxes and
minority interests $ 5,511 $ 3,818
=========== ============
BALANCE SHEET DATA -- July 31, 2000 (unaudited)
-----------------------------------------------
Cash $ 4,053,609
Total assets 294,970,688
Stockholders' equity 60,798,901
Shares outstanding 8,085,662
Book value per share $ 7.52
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