PACESETTER BUSINESS PROPERTIES REPORTS SEPT. 30, 1991 RESULTS
NEWPORT BEACH, Calif., Nov. 14 /PRNewswire/ -- Pacesetter Business Properties reported a net loss of $544,000, or $.35 per share, on revenues of $2,658,000 for the quarter ended Sept. 30, 1991, compared to a net loss of $581,000, or $.38 per share, on revenues of $2,598,000 for the same period in 1990, Steven R. Strauss, president, announced today.
During the nine months ended Sept. 30, 1991, the company transferred ownership of three operating properties to the lenders holding loans secured by those properties. These transfers resulted in a substantial reduction in net rental losses for the three months ended Sept. 30, 1991 when compared to the same period for 1990.
General and administrative expenses increased by a net amount of $63,000 for the three months ended Sept. 30, 1991 when compared to the same period for 1990. The increase in 1991 resulted primarily from the forgiveness of certain notes receivable and associated interest pursuant to an employment contract. This increase was partially offset by decreases in general and administrative expenses in 1991 due to the company's reduction in office personnel and cessation of all development activities.
Gross profit from sales decreased $393,000 for the three months ended Sept. 30, 1991 when compared to the same period for 1990. This was as a result of the 1991 sale of one operating building at a recorded loss due to capitalized holding costs from slow leasing of the building and market conditions causing a deflated sales price.
At Sept. 30, 1991, the tax benefit of the company's operating loss carryforwards exceeded the balance of its deferred income tax liabilities. Generally accepted accounting principles do not allow recognition of this excess. Accordingly, during the three months ended Sept. 30, 1991, a deferred benefit for income taxes was recognized only to the extent of the remaining balance of deferred taxes totalling $150,000. In addition, a provision for current taxes of $8,000 was recorded, resulting in a total net benefit for income taxes of $142,000, or 21 percent of the pre-tax loss.
The pre-tax losses for Pacesetter Business Properties include depreciation expense of $269,000 and $633,000 for the quarters ended Sept. 30, 1991 and 1990, respectively, on rental operating properties held by the company for investment.
PACESETTER BUSINESS PROPERTIES
For the quarters ended For the nine months ended
Sept. 30, Sept. 30,
1991 1990 1991 1990
revenues $2,658,000 $2,598,000 $5,271,000 $6,900,000
Net loss ($544,000) ($581,000) ($1,379,000) ($1,952,000)
Net loss per
common share ($0.35) ($0.38) ($0.89) ($1.27)
/CONTACT: Diana Waller, CFO of Pacesetter Business Properties, 714-852-1184/ CO: Pacesetter Business Properties ST: California IN: SU: ERN AL-KJ -- LA007 -- 4436 11/14/91 12:26 EST