FM PROPERTIES INC. REPORTS THIRD-QUARTER AND NINE-MONTHS 1997 RESULTS.NEW ORLEANS--(BUSINESS WIRE)--October 21, 1997-- HIGHLIGHTS -- Third-quarter Partnership revenues of $4.0 million include the sale of 66 developed single family homesites, primarily in the Dallas, Texas “Dallas” redirects here. For other uses, see Dallas (disambiguation). The City of Dallas (pronounced [ˈdæl.əs] or [ˈdæl. area. -- Sale of several working interests and numerous overriding royalty interests overriding royalty interest A third-party interest in royalty income derived from oil and gas rights. in oil and gas properties generates $4.5 million in proceeds recorded as Partnership other income, resulting in a $4.5 million gain, 0.31 per share. Sale proceeds were used to reduce Partnership debt, which totaled $42.5 million at the end of the quarter. -0-
Third Quarter Nine Months
----------------- --------------
1997 1996 1997 1996
-------- ------- ------- -------
(In thousands, except per share amounts)
Partnership revenues $ 4,037 $34,461 $24,298 $72,054
Operating income a 3,455 932 7,391 539
Net income a 3,455 1,458 7,171 1,065
Net income per share a .24 .10 .50 .07
Average Shares
Outstanding 14,550 14,395 14,481 14,364
a. Includes gain on sale of oil and gas properties of $4.5
million ($0.31 per share) in the third quarter of 1997 and includes a
$3.1 million ($0.21 per share) reimbursement of previously expensed
infrastructure costs in the second quarter of 1997.
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 $3,455,000, $0.24 per share, for the third quarter of 1997, compared with net income of $1,458,000, $0.10 per share, for the 1996 quarter. For the nine months ended September September: see month. 30, 1997, FMPO recorded net income of $7,171,000, $0.50 per share, compared with net income of $1,065,000, $0.07 per share, a year ago. 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 third quarter of 1997 totaled $4,037,000, from the sale of 66 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 primarily 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. Third-quarter 1996 revenues totaled $34,461,000, from the sale of 57 single-family homesites and 46 acres of undeveloped land which included several significant sales from FMPO's Dallas area properties. Third-quarter 1997 capital expenditures were $1,929,000 compared with $1,288,000 for the third 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 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 , 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. In September 1997, the Partnership sold several working interests and numerous overriding royalty interests in oil and gas properties which have been held since FMPO's formation for a total of $4.5 million. The sale to McMoRan Oil & Gas Co. (NASDAQ: MOXY Moxy may refer to:
See: New York Stock Exchange : FRP FRP Fremskrittspartiet (Norwegian: Progress Party; political party) FRP Fiberglass-Reinforced Plastic FRP Fiber Reinforced Polymer FRP Fibre Reinforced Polymer FRP Fleet Response Plan (US Navy) ), recorded as Partnership other income, resulted in a gain of $4.5 million, $0.31 per share. Proceeds from the sale were used to reduce Partnership debt, which totaled $42.5 million at the end of the quarter. The Partnership is developing single-family homesites 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. Management believes that this type of development activity has the potential to add significant value to FMPO. 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. A copy of this announcement is available by calling 1-800- 469-1255 and on our web site at http://www.fmpo.com . 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. . -0-
FM PROPERTIES INC.
STATEMENTS OF OPERATIONS (Unaudited)
Three Months Nine Months
Ended September 30, Ended September 30,
------------------- -------------------
1997 1996 1997 1996
-------- ------- --------- -------
(In Thousands, Except Per Share Amounts)
Income from the
Partnership (a) $ 3,515 $ 1,009 $ 7,541 $ 704
General and
administrative expenses (60) (77) (150) (165)
-------- ------- -------- -------
Operating income 3,455 932 7,391 539
Income tax (provision)
benefit - 526 (220) 526
-------- ------- -------- -------
Net income $ 3,455 $ 1,458 $ 7,171 $ 1,065
======== ======= ======== =======
Net income per share $.24 $.10 $.50 $.07
==== ==== ==== ====
Average shares
outstanding 14,550 14,395 14,481 14,364
====== ====== ====== ======
a. Operations of FMPO's 99.8 percent owned Partnership follow:
Three Months Nine Months
Ended Ended
September 30, September 30,
------------------ ------------------
1997 1996 1997 1996
------ --------- ---------- -------
(In Thousands)
Revenues $4,037 $ 34,461 $ 24,298 $72,054
Costs and expenses:
Cost of sales 4,033 32,216 18,568b 67,643
General and
administrative expenses 581 481 1,970 1,704
------ -------- --------- -------
Total costs and
expenses 4,614 32,697 20,538 69,347
------ -------- --------- -------
Operating income (loss) (577) 1,764 3,760 2,707
Interest expense, net (547) (1,193) (1,608) (3,085)
Other income, net 4,646c 440 5,404c 1,083
------ -------- --------- -------
Net income $3,522 $ 1,011 $ 7,556 $ 705
====== ======== ========= =======
b. Includes a reduction to production costs of $3.1 million for
the reimbursement of previously expensed infrastructure costs.
c. Includes gain on sale of oil and gas properties of $4.5 million
($0.31 per share).
FM PROPERTIES INC.
CONDENSED BALANCE SHEETS (Unaudited)
September 30, December 31,
1997 1996
---------- ----------
(In Thousands)
ASSETS
Current assets:
Accounts receivable and other $ - $ 56
Income tax receivable - 503
Amounts receivable from the Partnership 4,630 4,371
---------- ----------
Total current assets 4,630 4,930
Investment in the Partnership (a) 63,597 56,055
---------- ----------
Total assets $ 68,227 $ 60,985
========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
Other liabilities $ 1,455 $ 1,386
Stockholders' equity 66,772 59,599
---------- ----------
Total liabilities and stockholders'
equity $ 68,227 $ 60,985
========== ==========
a. Condensed balance sheets of FMPO's 99.8 percent owned
Partnership follow:
September 30, December 31,
1997 1996
---------- ----------
(In Thousands)
ASSETS
Current assets:
Cash and cash equivalents $ 3,944 $ 2,108
Accounts receivable and other 2,490 4,133
---------- ----------
Total current assets 6,434 6,241
Real estate and facilities, net 103,936 118,029
Other assets 9,894 5,922
---------- ----------
Total assets $ 120,264 $ 130,192
========== ==========
LIABILITIES AND PARTNERS' CAPITAL
Current liabilities:
Accounts payable and accrued liabilities $ 2,650 $ 5,754
Amounts due to FMPO 4,630 4,371
Short-term debt 42,518 -
---------- ----------
Total current liabilities 49,798 10,125
Long-term debt - 58,325
Other liabilities 6,742 5,574
Partners' capital 63,724 56,168
---------- ----------
Total liabilities and partners' capital $ 120,264 $ 130,192
========== ==========
FM PROPERTIES INC.
STATEMENTS OF CASH FLOW (Unaudited)
Nine Months
Ended September 30,
------------------------
1997 1996
---------- ----------
(In Thousands)
Cash flow from operating activities:
Net income $ 7,171 $ 1,065
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) (7,556) (705)
(Increase) decrease in working
capital and other 385 (360)
--------- ----------
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:
Nine Months
Ended September 30,
------------------------
1997 1996
---------- ----------
(In Thousands)
Cash flow from operating activities:
Net income (loss) $ 7,556 $ 705
Adjustments to reconcile net income
(loss) to net cash provided by
operating activities:
Cost of real estate sales and
depreciation and amortization 19,349 61,439
(Increase) decrease in working capital:
Accounts receivable and other 1,166 895
Accounts payable and accrued
liabilities (2,843) (1,558)
Other (765) -
---------- ----------
Net cash provided by operating activities 24,463 61,481
---------- ----------
Cash flow from investing activities:
Real estate and facilities (6,820) (4,620)
---------- ----------
Net cash used in investing activities (6,820) (4,620)
---------- ----------
Cash flow from financing activities:
Proceeds from debt - 70,000
Repayment of debt (15,807) (127,354)
---------- ----------
Net cash used in financing activities (15,807) (57,354)
---------- ----------
Net increase (decrease) in cash
and cash equivalents 1,836 (493)
Cash and cash equivalents at
beginning of year 2,108 2,282
---------- ----------
Cash and cash equivalents at
end of period $ 3,944 $ 1,789
========== ==========
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 or 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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