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KENNEDY-WILSON ANNOUNCES THIRD QUARTER AND NINE MONTHS RESULTS

 KENNEDY-WILSON ANNOUNCES THIRD QUARTER AND NINE MONTHS RESULTS
 SANTA MONICA, Calif., Nov. 13 /PRNewswire/ -- Kennedy-Wilson, Inc., a leading real estate auction marketing corporation, today announced results for the third quarter and nine months ended Sept. 30, 1992.
 The 1992 third quarter revenues were $4.8 million, which were flat from a year ago. The company also reported a historical loss of $734,000, or $.06 per share, for the three months ended Sept. 30, 1992 compared with historical net income of $1.5 million, or $.14 per share, for the quarter a year ago. The pro forma net loss for the 1992 third quarter was $457,000, or $.04 per share, versus pro forma net income of $943,000, or $.09 per share, for the 1991 third quarter.
 Revenues for the nine months ended Sept. 30, 1992 were $15.2 million, a 12 percent increase above the $13.6 million reported for the similar period in 1991. Historical net income for the first nine months of 1992 was $1.9 million, or $.16 per share, versus $3.9 million or $.37 per share, for the 1991 nine month period. The pro forma net income for the 1992 nine month period was $1.1 million, or $.10 per share, compared to $2.4 million, or $.22 per share, for the year-ago period.
 Pro forma comparisons are made because, prior to Aug. 14, 1992, the company's predecessor was not fully subject to corporate income tax. The pro forma numbers assume the company had an effective tax rate of 40 percent for the periods presented.
 The company's auction commissions subject to completion of sales as of Sept. 30, 1992 were $5.8 million, a 54 percent increase above the $3.8 million reported a year ago. The company does not recognize real estate commissions as revenue until the sale has closed and title has passed to the buyer.
 The gross value of real estate sales for the first nine months of 1992 was $565.6 million, a 42 percent increase over the same period in 1991. The aggregate value of properties under contract for scheduled future auctions or conventional sales at Sept, 30, 1992 was $422.2 million, up 40 percent from Sept. 30, 1991.
 The company indicated that earnings were impacted by the delay of the closing of a number of properties sold at auction, many of which were commercial properties typically subject to longer closing periods. In addition, overheard expenses increased due to the strategic expansion of the company's international and domestic operations, including the acquisition of affiliated entities in connection with the company's initial public offering.
 A pioneer in the field of real estate auction-marketing, Kennedy- Wilson, Inc. has sold in excess of $2 billion of residential, resort, and commercial real estate since its founding in 1977. The company has business development officers in key markets nationwide. In addition to its Santa Monica headquarters, the firm has regional offices in Boston, Chicago, Dallas, and Danville, Calif., as well as internationally in the United Kingdom and Australia.
 KENNEDY-WILSON, INC.
 Consolidated Statements of Operations
 (In thousands, except for per share data)
 Periods ended Three months Nine months
 Sept. 30 1991 1992 1991 1992
 Revenues
 Auction commissions $ 4,771 $ 4,204 $13,137 $14,213
 Mortgage brokerage fees -- 393 -- 393
 Other income 25 203 434 639
 Total 4,796 4,800 13,571 15,245
 Direct Costs:
 Auction expenses, net 154 867 1,032 1,597
 Auction sales commissions 1,081 951 2,811 3,586
 Mortgage brokerage
 commissions -- 58 -- 58
 Total 1,235 1,876 3,843 5,241
 Gross profit 3,561 2,924 9,728 10,004
 Operating expenses:
 Compensation 859 1,757 2,761 3,749
 Occupancy 140 210 398 503
 General and administrative 986 1,691 2,522 3,806
 Total 1,985 3,658 5,681 8,058
 Income (loss) before provision
 for income taxes 1,576 (734) 4,047 1,946
 Provision for income taxes 39 -- 101 70
 Net income (loss) 1,537 (734) 3,946 1,876
 Pro forma income taxes
 (benefit) 594 (277) 1,524 729
 Pro forma net income (loss) 943 (457) 2,422 1,147
 Historical net income (loss)
 per share 0.14 (0.06) 0.37 0.16
 Pro forma net income (loss)
 per share 0.09 (0.04) 0.22 0.10
 Weighted average shares
 outstanding 10,793 12,544 10,793 11,381
 BALANCE SHEET AND OTHER FINANCIAL DATA
 As of Sept. 30 1991 1992
 Total assets $ 4,861 $ 30,192
 Working capital 1,677 16,570
 Stockholders' equity 2,110 23,174
 Auction commissions subject
 to completion of sales 3,794 5,843
 Aggregate value of properties
 under contract for scheduled
 auctions of conventional sales 300,710 422,212
 Gross value of real
 estate sales (for
 the applicable period) $126,382 $294,816 $396,931 $565,553
 -0- 11/13/92
 /CONTACT: Nancy D. Celick, chief financial officer of Kennedy- Wilson, Inc., 310-314-8400/ CO: Kennedy-Wilson, Inc. ST: California IN: SU: ERN


AH-OS -- NY014 -- 0590 11/13/92 10:08 EST
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Date:Nov 13, 1992
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