Crown Group Reports Sharply Higher Revenues and Earnings for First Nine Months of FY1999.DALLAS--(BUSINESS WIRE)--March 17, 1999-- Third Quarter 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. EPS (Encapsulated PostScript) A PostScript file format used to transfer a graphic image between applications and platforms. EPS files contain PostScript code as well as an optional preview image in TIFF, WMF, PICT or EPSI, the latter being an ASCII-only format. of $1.21 Includes Gain From Sale of Inktomi Shares and $700,000 in One-Time After-Tax Charges Crown Group, Inc. (Nasdaq:CNGR CNGR Commission on the National Guard and Reserves ) today announced sharply higher revenues and earnings for the third quarter and first nine months of its 1999 fiscal year. For the three months ended January 31, 1999, revenues totaled $23.3 million, compared with approximately $1.2 million in the third quarter of FY1998. Revenues during the third quarter of FY1999 were derived from the Company's four principal business segments: Automotive Sales and Finance ($20.3 million), 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 ($1.2 million), Concorde Acceptance Corporation ($1.3 million), and Other ($0.5 million). Net income increased to $12,586,852, or $1.21 per diluted share, in the quarter ended January 31, 1999, versus net income of $13,695, or $0.00 per share in the prior-year period. Revenues for the nine-month period ended January 31, 1999 increased to $64.1 million, compared with $2.2 million in the first nine months of the previous fiscal year. Revenues during the nine months ended January 31, 1999 were derived as follows: Automotive Sales and Finance - $54.1 million; Precision IBC - $3.9 million; Concorde Acceptance Corporation - $4.4 million; and Other - $1.7 million. The Company reported net income of $14,095,241, or $1.36 per diluted share, during the first nine months of FY1999, versus a net loss of ($346,527), or ($0.03) per share, in the corresponding period of the previous fiscal year. Net income for the third quarter and first nine months of FY1999 included approximately $12.5 million in gains (after taxes) from the sale of Inktomi Corporation For the Lakota spider-trickster god, see . Inktomi Corporation was a California company that provided software for Internet Service Providers, which was founded in 1996 by UC Berkeley professor Eric Brewer and graduate student Paul Gauthier. common stock. As of January 31, 1999, Crown owned an additional 124,444 Inktomi shares. Also, the Company recorded one-time charges totaling $700,000 (after taxes) related to certain acquisitions/ventures which Crown abandoned in the third quarter and a casino casino or cassino (both: kəsē`nō). 1 Card game played with a full deck by two to four players. Its origins are obscure though it probably traces back to the Italian game of Scopa. "head tax" dispute between the City of Neuquen, Argentina, and 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 "). Revenues for the third quarter included contributions from Car-Mart for only 17 days, since that subsidiary was acquired on January 15, 1999. "Management was very pleased with the operating results of our subsidiary companies during the most recent quarter and for the first nine months of our 1999 fiscal year," stated Edward R. McMurphy, president and chief executive officer of The Crown Group. "Excluding non-recurring charges and gains on the sale of securities, Crown's earnings would have approximated $770,000, or $0.07 per diluted share, in the third quarter. Since the end of January, we have sold the remaining Inktomi shares, realizing a further pretax pre·tax adj. Existing before tax deductions: pretax income. pretax adj [profit] → vor (Abzug der) Steuern gain of approximately $6 million, which will be recorded during the fourth quarter." "As a result of the acquisition of Car-Mart in January, the annualized annualized Of or relating to a variable that has been mathematically converted to a yearly rate. Inflation and interest rates are generally annualized since it is on this basis that these two variables are ordinarily stated and compared. revenue `run rate' of our automotive subsidiaries now exceeds $150 million. Precision IBC continues to enjoy excellent demand for its growing fleet of storage containers, and Concorde Acceptance Corporation was slightly profitable for the nine-month period, despite softness in the subprime mortgage market. Our investment in CMN has been very gratifying grat·i·fy tr.v. grat·i·fied, grat·i·fy·ing, grat·i·fies 1. To please or satisfy: His achievement gratified his father. See Synonyms at please. 2. , and we are pleased to report that CMN's net income rose more than 85% during the first nine months of Fiscal 1999. We recently announced a second international gaming venture 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. , where we expect to open a number of casinos A list of casinos. Antigua and Barbuda
"With the seasonally-slow third quarter behind us in the subprime automotive business, and with the addition of Car-Mart and a further 15% equity ownership in Paaco Automotive Group, we look forward to a strong fourth quarter," continued McMurphy. "Fiscal 1999 as a whole should be a record-setting year for Crown Group, and we view the upcoming fiscal year with great optimism." As of January 31, 1999, Crown Group's shareholders' equity Shareholders' Equity A firms' total assets minus its total liabilities. Equivalently, it is share capital plus retained earnings minus treasury shares. Shareholders' equity is the amount by which a company is financed through common and preferred shares. totaled $52.7 million, which was equivalent to approximately $5.30 for each share of common stock outstanding. Under a previously-authorized stock repurchase Stock repurchase A firm's repurchase of outstanding shares of its common stock. program, Crown purchased 353,188 shares of its common stock during the first nine months of its 1999 fiscal year. The Company has repurchased 2,736,927 shares of its common stock, or approximately 23% of the total shares outstanding, since March 1996. Crown Group, Inc. is a publicly traded 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. Crown Group currently owns (i) 80% of Paaco Automotive Group and 100% of Car-Mart, vertically integrated used car sales and finance companies; (ii) 100% of Precision IBC, 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) 49% of Casino Magic Neuquen, a casino operator in the Province of Neuquen, Argentina; (v) 50.1% of Crown El Salvador, a casino development company in El Salvador; and (vi) 80% of Home Stay Lodges, a partnership which is involved in the development and operation of extended-stay lodging Lodging or holiday accommodation is a type of accommodation. People who travel and stay away from home for more than a day need lodging mainly for sleeping. Other purposes are safety, shelter from cold and rain, having a place to store luggage and being able to take a facilities. Crown Group, Inc. is headquartered in Dallas, Texas “Dallas” redirects here. For other uses, see Dallas (disambiguation). The City of Dallas (pronounced [ˈdæl.əs] or [ˈdæl. , and its common stock is traded on Nasdaq 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, changing economic conditions, changes in interest rates, continued acceptance of the Company's products and services in the marketplace, competitive factors, dependence upon lenders, and other risks detailed in the Company's periodic filings with the Securities and Exchange Commission. By making these forward-looking statements, the Company undertakes no obligation to update these statements for revisions or changes after the date of this release. For further information, please contact Edward R. McMurphy or Edward Preuss, Jr. at 972/717-3423 or R. Jerry Falkner, CFA (Computer Fraud and Abuse Act of 1986) Signed into law in 1986, the CFA was a significant step forward in criminalizing unauthorized access to computer systems and networks. The Act applies to "federal interest computers" that include any system used by the U.S. , Investor Relations Investor relations The process by which the corporation communicates with its investors. Counsel at 800/377-9893. -0-
CROWN GROUP, INC. AND SUBSIDIARIES
SELECTED FINANCIAL HIGHLIGHTS (Unaudited)
-----------------------------------------
Three Months Ended
Jan. 31, Jan. 31,
1999 1998
-------- --------
Total revenues $ 23,288,966 $ 1,164,638
Costs and expenses 23,115,645 1,413,190
Equity in earnings of CMN 38,017 125,203
Gain on sale of securities 18,964,236 40,895
------------ ------------
Income (loss) before taxes
& minority interests 19,175,574 ( 82,454)
Provision (benefit) for
income taxes 6,556,915 ( 96,149)
Minority interests 31,807 ----
------------ ------------
Net income $ 12,586,852 $ 13,695
============ ============
Earnings per share:
Basic $ 1.27 $ 0.00
============ ============
Diluted $ 1.21 $ 0.00
============ ============
Weighed average number
of shares outstanding:
Basic 9,942,386 9,742,747
Diluted 10,372,333 9,959,643
CROWN GROUP, INC.
AND SUBSIDIARIES
SELECTED FINANCIAL HIGHLIGHTS (Unaudited)
-----------------------------------------
Nine Months Ended
-----------------
Jan. 31, Jan. 31,
1999 1998
-------- --------
Total revenues $ 64,108,780 $ 2,214,481
Costs and expenses 61,986,077 3,761,813
Equity in earnings of CMN 754,445 532,888
Gain on sale of securities 18,889,833 64,569
----------- ------------
Income (loss) before taxes
& minority interests 21,766,981 (949,875)
Provision (benefit) for
income taxes 7,299,292 (603,348)
Minority interests 372,448 ----
------------ ------------
Net income (loss) $ 14,095,241 $ (346,527)
============ ============
Earnings (loss) per share:
Basic $ 1.40 $ (0.03)
============ ============
Diluted $ 1.36 $ (0.03)
============ ============
Weighed average number of
shares outstanding:
Basic 10,076,775 9,951,226
Diluted 10,335,480 9,951,226
CROWN GROUP, INC.
AND SUBSIDIARIES
BALANCE SHEET DATA - January 31, 1999 (Unaudited)
-------------------------------------------------
Cash + Marketable Securities $ 12,373,084
Total assets 163,453,789
Stockholders' equity 52,664,031
Shares outstanding 9,930,438
Book value per share $5.30
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