Wednesday May 19, 1:00 pm Eastern Time
Company Press Release
ARTRA GROUP Reports First
Quarter Results
NORTHFIELD, Ill.--(BUSINESS WIRE)--May 19, 1999--ARTRA GROUP Incorporated
(NYSE:ATA - news) today reported a net loss of $1,268,000 (or $.17 per share) for the first
quarter ended March 31, 1999 compared to a net loss of $1,917,000 (or $.26 per share) a year
earlier.
The 1999 first quarter loss included a compensation charge of $300,000 for stock options related
to ARTRA's planned entry into the Internet business-to-business e-commerce and on-line auction
business as well as $433,000 of expenses (principally start-up costs) relating to entrade.com.
As previously announced, ARTRA expects to complete the acquisition of entrade.com during the
third quarter beginning July 1, 1999.
ARTRA also owns approximately 9% (1,525,000 common shares) of COMFORCE Corporation
(ASE:CFS - news), a leader in professional staffing, consulting and outsourcing solutions to
high-tech industries.
Forward-Looking Statements: Statements contained in the press release which are not historical
facts are forward-looking statements. Such forward-looking statements are necessary estimates
reflecting the best judgment of the party making such statements based upon current information
and involve a number of risks and uncertainties. Forward-looking statements contained in this press
release or in other public statements of the parties should be considered in light of those factors.
There can be no assurances that such factors or other factors will not affect the accuracy of such
forward-looking statements.
ARTRA GROUP INCORPORATED AND SUBSIDIARIES
SUMMARY FINANCIAL DATA
(In thousands except per share data)
THREE MONTHS ENDED
-----------------------------------
March 31, March 31,
1999 1998
-----------------------------------
(Unaudited)
Summary results of operations:
Net sales (a) $ - $ -
============== ================
Operating loss (b) ($1,354) ($622)
============== ================
Loss from continuing operations ($1,268)(c) ($1,779)
Loss from discontinued operations - (138)
-------------- ----------------
Net loss (1,268) (1,917)
Dividends applicable to redeemable
preferred stock (64) (124)
-------------- ----------------
Loss applicable to common shares ($1,332) ($2,041)
============== ================
Earnings (loss) per share
Basic
Continuing operations ($0.17) ($0.24)
Discontinued operations - (0.02)
-------------- ----------------
($0.17) ($0.26)
============== ================
Diluted
Continuing operations ($0.17) ($0.24)
Discontinued operations - (0.02)
-------------- ----------------
($0.17) ($0.26)
============== ================
Weighted average shares and
equivalents
outstanding
Basic 7,965 7,952
============== ================
Diluted 7,965 7,952
============== ================
March 31, March 31,
1999 1998
-----------------------------------
(Unaudited)
Summary balance sheet data:
Cash and cash equivalents $9,317 $71
============== ================
Working capital $3,760 $724
============== ================
Total assets $17,551 $74,633
============== ================
Long-term debt - $46,784
============== ================
Shareholders' equity (deficit) $2,141 ($27,275)
=============== ================
NOTES TO SUMMARY FINANCIAL DATA
(a) Effective November 20, 1998, the Company sold the assets of its operating subsidiary,
Bagcraft Corporation of America. Accordingly, Bagcraft's results of operations for the three
months ended March 31, 1998 have been reflected in discontinued operations. The
operations of entrade.com will be included the ARTRA's consolidated financial statements
upon approval of the merger by ARTRA's shareholders.
(b) Loss before interest, other income (expense), net and income taxes.
(c) Includes $433,000 of expenses (principally start-up costs) and $300,000 of stock
option compensation costs relating to ARTRA's planned entry into the Internet
business-to-business e-commerce and on-line auction business.
Contact:
ARTRA GROUP
Mr. Robert S. Gruber, 212/628-2554
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