Printer Friendly

MetroGolf Incorporated Reports Third Quarter and Nine Months Results.

DENVER--(BUSINESS WIRE)--Nov. 26, 1996--MetroGolf Incorporated (NASDAQ:MGLF, BSE:MGO), a Denver-based developer and operator of golf centers in major metropolitan areas, today announced results for the third quarter and nine months ended September 30, 1996.

The following consolidated numbers do not include results from the MetroGolf Illinois Center in downtown Chicago or the Goose Creek Golf Club in suburban Washington D.C. in which controlling interests were acquired during the fourth quarter of 1996.

Revenues for the third quarter increased 108% to $362,472 from $173,773 in the corresponding period of 1995. The rise in revenues was primarily driven by the opening of new golf centers during the year. The net loss totaled $495,144 or $0.73 per share compared to net income of $27,719 or $0.04 per share in the third quarter of 1995.

The net loss for the third quarter of 1996 is primarily attributable to the addition of key management staff in anticipation of acquisitions. In addition, third quarter 1995 figures reflect some non-recurring gains. The adjusted average number of common shares outstanding for the three month period ended September 30, 1995 and 1996 remained unchanged at 680,782.

For the nine month period ending September 30, 1996, revenues increased 78% to $461,746 from $258,786 in the corresponding period last year. The net loss for the nine months ended September 30, 1996 totaled $855,124 or $1.26 per share compared to a net loss of $254,170 or $0.37 per share in the first nine months of 1995.

Simultaneously with the closing of the initial public offering in October 1996, MetroGolf acquired approximately 94% and 90% of the outstanding limited partnership interests in the partnerships that own MetroGolf Illinois Center and Goose Creek Golf Club, respectively. As managing general partner MetroGolf assumed management of these facilities during the last twelve months. Prior to that, the facilities were managed by an outside firm.

Speaking about the recent acquisitions, Charles D. Tourtellotte, President and Chairman of the Board stated, "We are delighted with our progress. The capital raised during our initial public offering enables us to aggressively pursue our strategy of increasing locations and we are now well positioned to leverage our management expertise across our existing and planned locations."

"In pursuing our strategy, we have also announced signed Letters of Intent to acquire two additional golf practice and learning centers since the October 21, 1996 closing of our initial public offering. MetroGolf expects to complete these two acquisitions, as well as a third for which MetroGolf has a previously signed Letter of Intent, and begin operating these three properties within approximately sixty days.

"Two properties are located in Southern California and one is in Colorado. The anticipated completion of these acquisitions will increase the number of operating facilities from four to seven," Tourtellotte said.

Commenting further, Tourtellotte stated, "MetroGolf has made considerable progress during the third quarter in areas of revenue growth, marketing efforts and sponsorships, as well as staffing additions. During the quarter, we hired Kim Wermuth as National Director of Sales and Marketing, Anthony Suttile as National Director of Operations and Andrew Schroeder as Controller.

"These individuals bring extensive experience in the golf, hospitality and finance industries. We have begun new strategic marketing programs for all facilities including: corporate outing and special event functions, golf membership drives, food and beverage promotions, and the implementation of a dedicated sales force for each MetroGolf location."

About MetroGolf

MetroGolf Incorporated, whose predecessor was founded in 1992, acquires, develops and operates golf centers designed to provide a wide variety of practice and play opportunities in major metropolitan areas. The company's strategy is to become the leading owner and operator of golf centers in areas with high concentrations of office, urban residential and hotel development that are convenient to time-constrained golfers.

MetroGolf currently operates the MetroGolf Illinois Center, in downtown Chicago, as well as Goose Creek Golf Club in suburban, Washington, DC, MetroGolf Fremont Park in Fremont, California and MetroGolf Harborside in San Diego, California.

Except for historical information contained herein, the matters set forth in this release are forward-looking statements that are dependent on certain risks and uncertainties, which may include such factors, among others as market demand, pricing, the effect of the company's accounting policies, the timing of acquisitions, finding suitable acquisition targets, potential seasonality, competition, and other risk factors detailed in the company's SEC filings, including the Prospectus dated October 21, 1996. -0-

 September 30, September 30,
 1996 1995 1996 1995

Revenues $362,472 $173,773 $461,746 $258,786

Operating income (loss) (330,751) 19,791 (653,772) (266,207)

Net income (loss) (495,144) 27,719 (855,124) (254,170)

Adjusted common shares
 outstanding 680,782 680,782 680,782 680,782

Net income (loss)
 per share ($0.73) $0.04 ($1.26) ($0.37)

CONTACT: MetroGolf Incorporated

J.D. Finley, 303/294-9300


Lippert/Heilshorn & Assoc.

Lillian Armstrong/Kris Otridge/Ward Deters, 415/433-3777
COPYRIGHT 1996 Business Wire
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1996, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

Article Details
Printer friendly Cite/link Email Feedback
Publication:Business Wire
Date:Nov 26, 1996
Previous Article:Vista Technologies names Allen J. Simon Executive Vice President and Chief Operating Officer.
Next Article:ELECTRONIC ARTS SHIPS NBA LIVE 97 FOR PLAYSTATION; EA SPORTS Debuts State-of-the-Art Motion Capture Technology with Olympic Dream Team III Member &...

Related Articles
MetroGolf Incorporated Announces IPO and Acquisition of Partnership Interests; 1.175 Million Shares Priced At $6.00.
MetroGolf Incorporated Elects Robert Winsor to its Board of Directors.
MetroGolf Incorporated reports fourth quarter and year end results.
Metrogolf Incorporated Announces Expansion of its Metrogolf Fremont Facility.
MetroGolf Inc. Announces 13D Filing.
MetroGolf Incorporated reports first quarter results.
MetroGolf Inc. reports second-quarter results.
MetroGolf Inc. Reports Third Quarter Results.
MetroGolf Inc. Announces Offer Regarding Acquisition.
MetroGolf to be Acquired by Family Golf.

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