Chancellor Reports $.02 Per Share Profit vs. $.12 Per Share Loss for 1998
Boston, MA - April 16, 1999: Chancellor Corporation (OTC BB: CHLR) announced today its results for the 1998 fiscal year. For the fiscal year ended December 31, 1998, Chancellor had total revenues of $29,639,000, as compared to $4,433,000 for the same period last year. The Company reported net income of $850,000, or $.02 per share, versus a net loss of $2,732,000, or $.18 per share, before an extraordinary gain on early extinguishment of debt of $930,000, or $.06 per share, that was recorded in the second quarter, for an adjusted net loss of $1,802,000, or $.12 per share.
Brian M. Adley, chairman and CEO of Chancellor, stated: "We have made progress in 1998 in the implementation of our strategic plan. After taking control of the Company in December 1996, the management has taken the Company from 1996 revenues of $5,513,000 and a net loss of $6,373,000 to 1998 revenues of $29,639,000 and a net income of $850,000. While we are satisfied with the results of our efforts, there is still a great deal of work to do. In 1999 we will continue to focus on top line growth and the expansion of our service offerings to new and existing customers. We believe that with the foundation we have created, we will be able to focus on the fundamentals of our business to bring Chancellor to the next level."
Consolidated Summary of Operations
(in thousands except per share data)
Fiscal Year Ending December 31,
1998 1997
Revenues 29,639 4,433
Net Income (Loss) Before Extraordinary Item 850 (2,732)
Extraordinary Item - 930
Net Income (Loss) 850 (1,802)
Basic EPS Before Extraordinary Item 0.02 (0.18)
Basic EPS 0.02 (0.12)
Diluted EPS Before Extraordinary Item 0.02 (0.18)
Diluted EPS 0.02 (0.12)
Weighted Average Shares Outstanding
Basic 36,695 15,224
Diluted 52,941 15,224
Selected Balance Sheet Items
(in thousands)
Fiscal Year Ending December 31,
1998 1997
Current Assets 14,657 3,183
Total Assets 29,569 7,091
Current Liabilities 6,366 5,921
Total Liabilities 22,562 6,864
Stockholder's Equity 7,007 227
Chancellor Corporation is spearheading an evolution in transportation equipment finance through innovative financing and fleet management programs. The Company seeks to reduce a customer's total holding cost through its "Wholesale-Plus" lease pricing strategy and through other value-added services, including asset management, equipment maintenance, fuel management and data management strategies. Since its founding in 1977, Chancellor has completed a total of approximately $1.5 billion in equipment lease transactions for its Fortune 500 and middle market customers in the U.S. and select international markets. Chancellor is a fleet management and transportation equipment leasing firm headquartered in Boston. The Company's Internet address is chancellorcorp.com. The Company is publicly traded under the symbol "CHLR".
“Safe Harbor” Statement under the Private Securities Litigation Reform Act of 1995: The statements contained in this release which are not historical facts may be deemed to contain forward-looking statements with respect to events, the occurrence of which involve risks and uncertainties, including, without limitation, demand and competition for the Company's lease financing services and the products to be leased by the Company, the continued availability to the Company of adequate financing the ability of the Company to recover its investment in equipment through remarketing, and other risks and uncertainties detailed in the Company's Securities and Exchange Commission filings.
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