Here's more to show that real estate is becoming more of a sideline to the heavy equipment biz:
>>Jeffrey L. Stevens, Crescent Operating's Executive Vice President and Chief Operating Officer further commented, ''We continue to grow the equipment sales and leasing segment through both same store growth and strategic acquisitions. We anticipate Crescent Machinery's revenues will increase to $140 million for 1999, which is up from just $15 million for the year ended 1997. This should produce EBITDA at Crescent Machinery in excess of $24 million for 1999 and these numbers do not consider additional acquisitions. We anticipate continued growth in same store results as we increase the high margin rental business at our dealerships. An example of our recent same store growth is our Dallas branch, which we consider to be our prototype store, which had 42% growth in rental revenues in the first quarter of 1999 as compared to the first quarter of 1998. We are excited about the prospect of continuing to apply our Dallas store methodologies to our other, more distribution focused, locations. When you look at Crescent Operating's trailing twelve month diluted earnings of $0.50 per share, and expected earnings of approximately $0.80 for the year ended December 1999, it demonstrates how far we have come since our losses during 1997. We anticipate the rest of 1999 to continue to show strong results as we move into the high season for our equipment sales and leasing business as well as our hospitality properties and we are projecting consolidated EBITDA of in excess of $40 million for the year ended 1999.''
Crescent Operating is a diversified management company which through various subsidiaries and affiliates, owns, leases or operates a portfolio of assets consisting of lessee interests in six full-service hotels and two destination health and fitness resorts, an interest in a behavioral health company, an interest in a refrigerated warehouse operating company, an interest in three real estate development operations, and an equipment sales and leasing company. <<
From recent aquisition:
>>Crescent Operating, Inc. Announces the Acquisition of Solveson Crane Rental, Inc.
FORT WORTH, Texas--(BUSINESS WIRE)--July 9, 1999--Crescent Operating, Inc. (Nasdaq:COPI - news) today announced that its wholly owned subsidiary, Crescent Machinery Company, has acquired Solveson Crane Rental, Inc., a construction crane rental company located in Tracy, Calif.
With this acquisition, Crescent Operating is continuing its consolidation of companies within the Equipment Sales and Leasing segment and now has 17 locations throughout 7 states. Solveson Crane Rental specializes in the rental of 40 to 90 ton rough terrain cranes to highway, building and industrial contractors. This acquisition gives Crescent Machinery 5 locations throughout Northern California and Nevada.
John C. Goff, Crescent Operating's Chief Executive Officer commented, ''The addition of the heavy crane business to our west coast locations will help Crescent Machinery capitalize on the additional $2 billion in federal funding being allocated to California for highway and transit programs over the next 5 years.'' <<
And another aquisition:
>>Crescent Operating, Inc. Announces the Acquisition Of E. L. Lester and Company
FT. WORTH, Texas--(BUSINESS WIRE)--July 19, 1999--Crescent Operating, Inc. (Nasdaq:COPI - news) today announced that its wholly owned subsidiary, Crescent Machinery Company, has acquired E. L. Lester and Company, a construction crane rental company located in Houston, Texas, for approximately $ 14.6 million.
With this acquisition, Crescent Operating is continuing its consolidation of companies within the Equipment, Sales and Leasing segment and now has 18 locations throughout 7 states. E. L. Lester and Company has approximately $15 million in revenues and specializes in the sales and rental of 8 to 300 ton conventional and hydraulic cranes to highway, building and industrial contractors.
Crescent Operating also announced that Crescent Machinery is opening a new location in Fort Worth, Texas, on August 1, 1999. With the acquisition of E. L. Lester and Company and the new Fort Worth location, Crescent Machinery will have 8 locations throughout the state of Texas.
John C. Goff, Crescent Operating's Chief Executive Officer commented, ''The acquisition of E.L. Lester significantly expands our construction crane rental business. With our 8 Texas locations, we are well positioned to capture a portion of the $1.8 billion designated by the federal government for highway and transit programs in the state of Texas over the next 5 years.'' <<
If that's not getting involved in the heavy construction biz, then what is?
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