Littlefield Corporation Announces Q4 2008 and CY 2008 Results
Wednesday March 11, 2009, 3:43 pm EDT
AUSTIN, Texas--(BUSINESS WIRE)--Littlefield Corporation (OTCBB: LTFD - News) today announced earnings for the fourth quarter and full year of 2008. The Company operated at approximately breakeven excluding the significant unfavorable impact on earnings of fourth quarter charges associated with a write-down of the carrying value of goodwill and other assets in addition to certain contract termination costs, renovations, re-openings and the start-up of new halls in Texas and ongoing legal expenses. The goodwill impairment stems from the Company’s normal annual review of goodwill and other intangible assets in light of actual financial performance and changed economic conditions and certain specific underperforming bingo hall closures. The contract termination costs are associated with certain underperforming bingo hall closures.
The Q4 2008 earnings include the effect of approximately $3,199,000 of notable items: $2,390,000 related to goodwill impairments and contract termination costs, $388,000 from renovating, reopening and start-up of halls in Texas, $75,000 of legal expenses and $346,000 for non-cash expenses for compensation expense related to stock grant and options.
The Q4 2007 earnings included the effects of approximately $271,000 of notable items: $96,000 of gross profit from the catering unit sold in April of 2008, $244,000 of expense from renovating and reopening halls in Texas, $109,000 of legal expenses and $14,000 for non-cash expenses for compensation expense related to stock options.
CY 2008 earnings include the effect of approximately $4,732,000 of notable items: a net gain of $441,000 from the sale and results of the catering business sold in April 2008, $2,390,000 from goodwill impairments and contract termination costs, $1,811,000 of expense from renovating, reopening and start-up of halls in Texas, $588,000 of legal expenses and $384,000 of non-cash expenses for stock-based compensation.
CY 2007 earnings included the effects of approximately $656,000 of notable items: $39,000 of catering unit gross profit, $217,000 of expense from renovating and reopening halls in Texas, $421,000 of legal expenses and $57,000 of non-cash expenses for stock-based compensation.
Highlights for the full year and fourth quarter compared to the prior year follow. For comparability these have been adjusted to exclude the catering business sold on April 15, 2008 and notable items:
CY 2008 results:
1. Total consolidated revenue of $10,724,859 decreased 3% from last year’s record revenue level, Entertainment revenue of $8,493,899 remained steady from the prior year level of $8,525,393 and Hospitality revenue was down 14% from the prior year.
2. Entertainment (bingo) 2008 gross profit was $3,214,123, down 13% versus 2007. Entertainment gross profit percent was 38% versus 43% last year. The Florida acquisition completed in 2008 contributed in a noteworthy manner.
3. Hospitality segment 2008 gross loss was $345,459 compared to a gross loss of $221,724 in 2007, mainly as a result of the lower revenue from a major customer.
4. Excluding the noted items described above, 2008 net income was approximately $480,029, versus $956,420 in 2007. Including the effect of the noted items, the 2008 net loss was $4,252,099 compared to net income of $300,185 in 2007.
Q4 2008 results:
1. Total consolidated Q4 2008 revenue was $2,683,823, up $116,972, or 5% from the prior year’s fourth quarter. Entertainment revenue of $2,100,992 was up $221,676 or 12%, reflecting acquisitions made in 2008 in Florida and South Carolina. Hospitality revenue for the quarter decreased $116,093, or 17%, mainly from lower event activity.
2. Entertainment (bingo) Q4 2008 gross profit was $627,681 up 2% from Q4 2007, excluding the noted items. The stronger performance in the quarter came from the Florida acquisition.
3. Hospitality segment was managed to a Q4 2008 gross loss of $3,968 compared with a gross profit of $34,808 in 2007 despite the lower sales levels.
4. Excluding the noted items described above, Q4 2008 net income was $59,119 versus a loss of $28,150 in Q4 2007. Including the noted items above, we incurred a Q4 2008 net loss of $3,139,524 versus a net loss of $298,727 in Q4 2007.
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The numbers can be found here:
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