Printer Friendly

KENNEDY WILSON ANNOUNCES RESULTS FOR 1992 FOURTH QUARTER AND YEAR

 SANTA MONICA, Calif., Feb. 8 /PRNewswire/ -- Kennedy-Wilson, Inc. (NASDAQ-NMS: KWIC), today announced results for the fourth quarter and year ended Dec. 31, 1992.
 For the fourth quarter of 1992, the company reported revenues of $7.9 million and a net loss of $1,573,000 or $.11 per share, compared with revenues of $6.2 million and net income of $1,462,000 or $.14 per share a year ago. The pro forma net loss for the fourth quarter of 1992 was $945,000 or $.07 per share, compared with pro forma net income of $896,000 or $.08 per share a year ago.
 For the year ended Dec. 31, 1992, revenues were $23.1 million, an 18 percent increase over the $19.6 million in revenues for 1991, and net income of $302,000 or $.02 per share compared with net income of $5.4 million or $.50 per share in 1991. The 1992 pro forma net income for 1992 was $201,000 or $.02 per share compared with $3.3 million or $.31 per share in 1991. The gross value of real estate sales for 1992 was approximately $866 million, a 14 percent increase over 1991.
 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.
 Fourth quarter revenues increased 27 percent in 1992 compared with 1991 primarily due to increased auction commissions for the United Kingdom and Australia operations and increased mortgage brokerage fees. The net loss for the 1992 fourth quarter was primarily due to increased operating costs for domestic operations combined with the start-up costs related to operations in the United Kingdom, France and Australia and reserves provided for uncollectible marketing expenses and commission advances.
 William J. McMorrow, chairman and chief executive officer, stated, "The planned strategic growth that occurred in 1992 has positioned the company to capitalize significantly on growing demand for auction marketing services in both the domestic and key foreign markets. The company's investments in infrastructure, systems and real estate marketing professionals combined with the effective implementation of cost controls will enhance our results going forward. However, the company does not expect to be profitable in the first quarter of 1993 due to the seasonality of auction revenues."
 The hard backlog (real estate auction commissions subject to the completion of sales) was $5.9 million at Dec. 31, 1992. The company does not recognize auction commissions as revenue until a sale has closed and the title has passed to the buyer. The soft backlog (the aggregate value of properties under contract for scheduled future auctions) was approximately $178 million at Dec. 31, 1992. The soft backlog had increased to approximately $386 million at Jan. 31, 1993, compared with approximately $81 million at Jan. 31, 1992. Backlog amounts for 1991 are not available.
 The company reported that its financial position at Dec. 31, 1992, remains strong with cash on hand of $15.3 million, current assets of $20.4 million, current liabilities of approximately $5.4 million and no long-term debt.
 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. In addition to its Santa Monica headquarters, the company has offices in London, Boston, New York, Washington, D.C., Chicago, Dallas, Houston, Phoenix, San Diego, Palm Springs, San Francisco, and Orange County.
 KENNEDY-WILSON, INC. AND SUBSIDIARIES
 Consolidated Statements of Operations
 (In thousands, except per share data)
 The 1992 historical amounts include the results of operations for Kennedy-Wilson, Inc. (formerly a California Corporation) and prior to Aug. 14, 1992, its 50 percent ownership interests in Kennedy-Wilson East (KW East) and Kennedy-Wilson U.K. Limited, and its 75 percent ownership interest in Kennedy-Wilson Pty, Ltd. (accounted for on the equity method). After Aug. 14, 1992, these entities were accounted for on a consolidated basis. The 1991 historical amounts include Kennedy-Wilson, Inc. (a California Corporation) and its 50 percent ownership interest in KW East (accounted for on the equity method).
 Periods ended Three Months 12 Months
 Dec. 31 1992 1991 1992 1991
 Revenues:
 Auction commissions $ 7,194 $ 6,154 $21,407 $19,291
 Mortgage brokerage fees 441 -- 834 --
 Other income 293 90 894 332
 Total 7,928 6,244 23,135 19,623
 Direct costs:
 Auction expenses, net 1,632 1,197 3,229 2,229
 Auction sales commissions 1,759 1,504 5,345 4,315
 Mortgage brokerage direct exps. 163 -- 221 --
 Total 3,554 2,701 8,795 6,544
 Gross profit 4,374 3,543 14,340 13,079
 Operating expenses:
 Compensation 2,510 808 6,259 3,569
 Occupancy 299 148 802 546
 General and administrative 3,090 1,090 6,859 3,420
 Total 5,899 2,046 13,920 7,535
 Income (loss) before provision
 for income taxes (1,525) 1,497 420 5,544
 Provision for income taxes 48 35 118 136
 Net income (loss) (1,573) 1,462 302 5,408
 Pro forma provision (benefit)
 for income taxes (628) 566 101 2,090
 Pro forma net income (loss) $ (945) $ 896 $ 201 $ 3,318
 Net income (loss) per share:
 Historical $(0.11) $0.14 $0.02 $0.50
 Pro forma $(0.07) $0.08 $0.02 $0.31
 Weighted aver. shares outstg. 14,150 10,793 12,082 10,793
 Gross value of real estate
 sales $248,392 $267,257 $865,982 $762,721
 KENNEDY-WILSON, INC. AND SUBSIDIARIES
 Selected Financial Data
 (In thousands)
 12/31/92 12/31/91
 Total assets $ 26,870 $ 6,365
 Working capital 14,959 2,340
 Stockholders' equity 21,263 $ 2,684
 Auction commissions subject to
 completion of sales - hard backlog 5,870 NA
 Aggregate value of properties under
 contract for scheduled future
 auctions - soft backlog $178,088 NA
 -0- 2/8/93
 /CONTACT: William J. McMorrow, chairman of the board and chief executive officer, or William R. Stevenson, president and COO, 310-314-8400, both of Kennedy-Wilson/
 (KWIC)


CO: Kennedy-Wilson, Inc. ST: California IN: SU: ERN

GK-WB -- NY093 -- 4283 02/08/93 16:52 EST
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Feb 8, 1993
Words:1033
Previous Article:PROJECTIONISTS TO RETURN TO WORK AFTER RATIFYING CINEPLEX ODEON CONTRACT
Next Article:BERNARD CHAUS, INC., REPORTS RESULTSFOR SECOND QUARTER AND SIX MONTHS ENDED DEC. 31, 1992
Topics:


Related Articles
REAL ESTATE AUCTIONS UP 264 PERCENT NATIONWIDE; 1991 AUCTION SALES NEARLY DOUBLE 1990 MARK
KENNEDY-WILSON RELEASES PRELIMINARY THIRD QUARTER RESULTS
KENNEDY-WILSON ANNOUNCES THIRD QUARTER AND NINE MONTHS RESULTS
KENNEDY-WILSON ANNOUNCES 1993 FIRST QUARTER RESULTS
KENNEDY-WILSON SCORES MULTIMILLION DOLLAR COMMERCIAL PROPERTY SELLOUT IN AUSTRALIA
MAXXAM REPORTS RESULTS FOR FOURTH QUARTER, FULL YEAR 1993
NEWCOMER TO FLORIDA HITS REAL ESTATE MARKET BY STORM WITH OVER $60 MILLION IN SALES
KENNEDY-WILSON 400 HOME AUCTION GROSSES NEARLY $28 MILLION
Kennedy-Wilson Announces 20% Stock Dividend and Results for the Third Quarter and Nine Months of 1997
Kennedy-Wilson, Inc. Reports 2000 Results.

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters