FM PROPERTIES INC. REPORTS FIRST-QUARTER 1997 RESULTS.NEW ORLEANS--(BUSINESS WIRE)--April 22, 1997-- HIGHLIGHTS -- Net income of $2.0 million, compared to a loss of $0.9 million in the year-ago quarter. -- Sales of 61 developed homesites and 126 acres of undeveloped commercial and multi-family properties generate $15.1 million in Partnership revenues. -- First-quarter Partnership sales include the sale of two separate tracts totaling 98 acres for $5.2 million and a 21 acre commercial tract for $5.8 million. -- Partnership debt reduced by $4.0 million to $54.3 million. Cash and cash equivalents of $6.4 million at quarter end represents an increase of $4.3 million from the prior quarter. -- Stockholder rights plan amended a·mend v. a·mend·ed, a·mend·ing, a·mends v.tr. 1. To change for the better; improve: amended the earlier proposal so as to make it more comprehensive. 2. in April, 1997. -0-
FIRST QUARTER
--------------------
1997 1996
------- -------
(In thousands, except
per share amounts)
Partnership revenues $15,070 $13,829
Operating income (loss) 1,972 (894)
Net income (loss) 1,972 (894)
Net income (loss) per share .14 (.06)
-0- FM Properties Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :FMPO) today reported net income of $1,972,000, $0.14 per share, for the first quarter of 1997, compared with a net loss of $894,000, $0.06 per share for the 1996 quarter. FMPO operates through its 99.8 percent interest in FM Properties Operating Co. (the Partnership), with 0.2 percent owned by the Managing General Partner, Freeport-McMoRan Freeport-McMoRan Copper & Gold Inc., (NYSE: FCX) often called simply Freeport, is the world's lowest-cost copper producer and one of the world's largest producers of gold. Inc. (FTX (Fault Tolerant UNIX) Stratus Computer's version of Unix System V for its XA/R fault tolerant computer systems. See also FTTx. (operating system) FTX - Stratus' Unix operating system. ). As FMPO has no significant operations or sources of funds other than its interest in the Partnership, the following discussion focuses on the activities of the Partnership. The Partnership's revenues for the first quarter of 1997 totaled $15,070,000, primarily from the sale of 61 developed single-family sin·gle-fam·i·ly adj. Relating to or being a dwelling designed for one family only: a single-family home; single-family occupancy. homesites and 126 acres of undeveloped commercial and multi-family property. First-quarter 1997 revenues included two separate sales of undeveloped tracts within the Barton Creek Barton Creek is one of the tributaries that feeds the Texas Colorado River from the Texas Hill Country. The creek passes through some of the more scenic areas in the Austin region and forms a greenbelt that is the habitat for many indigenous species of flora and fauna. development near Austin Austin. 1 City (1990 pop. 21,907), seat of Mower co., SE Minn., on the Cedar River, near the Iowa line; inc. 1868. The commercial and industrial center of a rich farm region, it is noted as home to the Hormel meatpacking company, whose Spam Town museum , Texas totaling 98 acres for $5.2 million and the sale of a 21 acre undeveloped commercial tract in the Dallas Dallas, city (1990 pop. 1,006,877), seat of Dallas co., N Tex., on the Trinity River near the junction of its three forks; inc. 1871. The second largest Texas city, after Houston, and the eighth largest U.S. area for $5.8 million. First-quarter 1996 revenues totaled $13,829,000, primarily from the sale of 76 single-family homesites and 156 acres of undeveloped land. First-quarter 1997 capital expenditures were $1,709,000 compared with $2,606,000 for the first quarter of 1996 and consisted of engineering and subdivision development costs including capitalized interest Capitalized interest Interest that is not immediately expensed, but rather is considered as an asset and is then amortized through the income statement over time. In the context of project financing, interest that is paid by additional borrowing. for projects in the Austin, Dallas and Houston, Texas “Houston” redirects here. For other uses, see Houston (disambiguation). Houston (pronounced /'hjuːstən/) is the largest city in the state of Texas and the areas. During the first quarter of 1997, the Partnership generated operating cash flow Operating cash flow Earnings before depreciation minus taxes. Measures the cash generated from operations, not counting capital spending or working capital requirements. of $11.0 million which, after funding capital additions, enabled the Partnership to reduce its debt from the beginning of the year by $4.0 million to $54.3 million. In addition, because of the receipt of proceeds from a significant sale that closed at the end of the first quarter, the Partnership's cash and cash equivalents increased by $4.3 million from the beginning of the year to $6.4 million at March 31, 1997. These proceeds were used to further reduce debt in the second quarter of 1997. Selling undeveloped tracts to sub-developers is an integral part of FMPO's business strategy for the Barton Creek and Lantana lantana (lăntā`nə): see verbena. lantana Any of more than 150 shrubs that make up the genus Lantana in the verbena family, native to the New World and African tropics. developments. These transactions provide funds to reduce debt, lower future carrying and development costs and establish values for FMPO's remaining properties within Barton Creek. At the same time, the Partnership is developing lots in Austin, Dallas and Houston Houston, city (1990 pop. 1,630,553), seat of Harris co., SE Tex., a deepwater port on the Houston Ship Channel; inc. 1837. Economy The fourth largest city in the nation and the largest in the entire South and Southwest, Houston is a port of entry; , and evaluating the development of income-producing properties on certain tracts and believes that development activity has the potential to add significant value to the company. During April 1997, FMPO amended its stockholder rights plan to increase the percentage ownership threshold The point at which a signal (voltage, current, etc.) is perceived as valid. at which the plan is activated activated a state of being more than usually active. In biological systems this is usually brought about by chemical or electrical means. Commonly said of pharmaceutical and chemical products. . Previously, the rights issued under the plan would have become exercisable whenever an individual or group purchased 15 percent or more of FMPO's common stock. After the amendment, the rights will become exercisable whenever an individual or group purchases 20 percent or more of FMPO's common stock. If a stockholder exceeds the 20 percent threshold, all other stockholders will be able to exercise their rights, which will entitle en·ti·tle tr.v. en·ti·tled, en·ti·tling, en·ti·tles 1. To give a name or title to. 2. To furnish with a right or claim to something: them to buy FMPO common stock at a discounted price. The amendment was adopted in response to a request from one of FMPO's large stockholders, to allow it to increase such holdings above the current threshold level Noun 1. threshold level - the intensity level that is just barely perceptible intensity, intensity level, strength - the amount of energy transmitted (as by acoustic or electromagnetic radiation); "he adjusted the intensity of the sound"; "they measured the of 15 percent. FMPO believes that the amended plan will continue to provide important protection for all of its stockholders. FMPO is engaged in the development and marketing of real estate in the Austin, Dallas, Houston and San Antonio, Texas “San Antonio” redirects here. For other uses, see San Antonio (disambiguation). San Antonio is the second most populous city in Texas, the third most populous metropolitan area in Texas, and is the seventh most populous city in the United States. As of the 2006 U.S. areas. CAUTIONARY STATEMENT. This press release contains certain 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. . Important factors that might cause future results to differ from those projections are described in more detail in FMPO's 1996 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. . A copy of this release is available by calling 1-800-469-1255. -0-
FM PROPERTIES INC.
STATEMENTS OF OPERATIONS (Unaudited)
Three Months Ended
March 31,
-------------------------
1997 1996
---------- ----------
(In Thousands,
Except Per Share Amounts)
Income (loss) from the
Partnership (a) $ 2,002 $ (865)
General and administrative expenses (30) (29)
---------- ----------
Operating income (loss) 1,972 (894)
Income tax (provision) benefit - -
---------- ----------
Net income (loss) $ 1,972 $ (894)
========== ==========
Net income (loss) per share $.14 $(.06)
==== ======
Average shares outstanding 14,435 14,286
====== ======
(a) Operations of FMPO's 99.8 percent owned Partnership follow:
Three Months Ended
March 31,
-------------------------
1997 1996
----------- ----------
(In Thousands)
Revenues $ 15,070 $ 13,829
Cost and expenses:
Cost of sales 11,783 13,313
General and administrative expenses 767 606
----------- ----------
Total costs and expenses 12,550 13,919
----------- ----------
Operating income (loss) 2,520 (90)
Interest expense, net (536) (734)
Other income (expense), net 22 (41)
----------- ----------
Net income (loss) $ 2,006 $ (865)
========== ==========
FM PROPERTIES INC.
CONDENSED BALANCE SHEETS (Unaudited)
March 31, December 31,
1997 1996
---------- ----------
(In Thousands)
ASSETS
Current assets:
Accounts receivable and other $ 132 $ 56
Income tax receivable 503 503
Amounts receivable from the
Partnership 4,265 4,371
---------- ---------
Total current assets 4,900 4,930
Investment in the Partnership (a) 58,057 56,055
---------- ---------
Total assets $ 62,957 $ 60,985
========== =========
LIABILITIES AND STOCKHOLDERS' EQUITY
Other liabilities $ 1,386 $ 1,386
Stockholders' equity 61,571 59,599
---------- ---------
Total liabilities and
stockholders' equity $ 62,957 $ 60,985
========== =========
(a) Condensed balance sheets of FMPO's 99.8 percent owned
Partnership follow:
March 31, December 31,
1997 1996
---------- ----------
(In Thousands)
ASSETS
Current assets:
Cash and cash equivalents $ 6,403 $ 2,108
Accounts receivable and other 5,412 4,133
---------- ----------
Total current assets 11,815 6,241
Real estate and facilities, net 108,848 118,029
Other assets 6,539 5,922
---------- ----------
Total assets $ 127,202 $ 130,192
========== ==========
LIABILITIES AND PARTNERS' CAPITAL
Current liabilities:
Accounts payable and accrued
liabilities $ 3,754 $ 5,754
Amounts due to FMPO 4,265 4,371
Short-term debt 54,290 -
---------- ----------
Total current liabilities 62,309 10,125
Long-term debt - 58,325
Other liabilities 6,719 5,574
Partners' capital 58,174 56,168
---------- ----------
Total liabilities and partners'
capital $ 127,202 $ 130,192
========== ==========
FM PROPERTIES INC.
STATEMENTS OF CASH FLOW (Unaudited)
Three Months Ended March 31,
----------------------------
1997 1996
----------- -----------
(In Thousands)
Cash flow from operating activities:
Net income (loss) $ 1,972 $ (894)
Adjustments to reconcile net income
(loss) to net cash provided by
operating activities:
Excess of equity in (income)
losses of the Partnership over
distributions received (a) (2,002) 865
Decrease in working capital 30 29
---------- -----------
Net cash provided by operating
activities - -
Cash flow from investing activities - -
Cash flow from financing activities - -
---------- -----------
Net increase in cash and cash
equivalents - -
Cash and cash equivalents at
beginning of year - -
---------- -----------
Cash and cash equivalents at
end of period $ - $ -
========== ===========
(a) Cash flow statements of FMPO's 99.8 percent owned Partnership
follow:
Three Months Ended March 31,
---------------------------
1997 1996
---------- ---------
(In Thousands)
Cash flow from operating activities:
Net income (loss) $ 2,006 $ (865)
Adjustments to reconcile net income
(loss) to net cash provided by
operating activities:
Cost of real estate sales and
depreciation and amortization 11,895 12,128
Increase in working
capital:
Accounts receivable and other (1,896) (1,615)
Accounts payable and accrued
liabilities (961) (3,553)
--------- ---------
Net cash provided by operating
activities 11,044 6,095
--------- ---------
Cash flow from investing
activities:
Real estate and facilities (2,714) (2,606)
--------- ---------
Net cash used in investing
activities (2,714) (2,606)
--------- ---------
Cash flow from financing activities:
Proceeds from debt - 1,000
Repayment of debt (4,035) (6,000)
--------- ---------
Net cash used in financing
activities (4,035) (5,000)
--------- ---------
Net increase (decrease) in
cash and cash equivalents 4,295 (1,511)
Cash and cash equivalents
at beginning of year 2,108 2,282
--------- ---------
Cash and cash equivalents
at end of period $ 6,403 $ 771
========= =========
CONTACT: FM Properties Inc., New Orleans New Orleans (ôr`lēənz –lənz, ôrlēnz`), city (2006 pop. 187,525), coextensive with Orleans parish, SE La., between the Mississippi River and Lake Pontchartrain, 107 mi (172 km) by water from the river mouth; founded Chris CHRIS Chemical Hazards Response Information System (US DoD) CHRIS California Historical Resources Information System CHRIS Computerized Human Resources Information System CHRIS Command Human Resources Intelligence System D. Sammons, 504/582-4474 Craig Craig , Edward Gordon 1872-1966. British theatrical producer, director, and designer whose innovative productions and simplified stage designs influenced modern theater. E. Saporito, 504/582-4476 |
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