October 14, 1999
CALTON, INC. REPORTS THIRD QUARTER AND NINE MONTH RESULTS
Red Bank, New Jersey, October 14, 1999--Calton, Inc. (AMEX-CN), announced
today results for the third quarter and nine months ended August 31, 1999.
Anthony J. Caldarone, Chairman, President and Chief Executive Officer,
announced net income of $78,000 ($.00 per basic and diluted share) for the
three months ended August 31, 1999 compared to net income of $700,000 ($.03 per
basic and diluted share) for the three months ended August 31, 1998. Mr.
Caldarone stated that the Company is continuing to analyze potential business
opportunities for the deployment of its liquid assets.
The Company recorded net income of $4.8 million ($.21 per basic share and
$.20 per diluted share) for the nine months ended August 31, 1999 as compared to
net income of $569,000 for the comparable period of the prior year ($.02 per
basic and diluted share). Included in the current year to date results is an
aggregate net income of $4.6 million from the sale of Calton Homes that
includes a provision in lieu of taxes of $3.0 million.
Income from continuing operations was $178,000 and $622,000 for the three
and nine months ended August 31, 1999 as compared to losses from continuing
operations of $352,000 and $904,000 for the three and nine months ended August
31, 1998, respectively. The Company's operations include a pretax loss of
$138,000 from eCalton.com, a newly acquired Internet business solutions
provider in its early stages of development. Revenues of $867,000 and $2.3
million were recorded for the three and nine months ended August 31, 1999
primarily derived from the consulting agreement with the purchaser of Calton
Homes, as well as interest earned on cash derived from the sale of Calton
Homes. Because the Company's financial statement treatment of its homebuilding
business is presented as discontinued operations, there are no comparable
revenues for the three and nine month periods ended August 31, 1998. General
and administrative costs have decreased for the nine months ended August 31,
1999 as compared to the similar prior year period due to a reduction in
corporate fixed costs related to the sale of Calton Homes. However, in
comparing the three month periods ended August 31, 1999 and 1998, the decrease
has been offset with the selling, general and administrative costs of
eCalton.com.
The Company recorded an unrealized loss from securities available for sale
in the amount of $507,000 through the nine months ended August 31, 1999. This
amount has been reflected as a reduction of shareholders' equity. There were
no comparable amounts recorded during the prior year.
Loss from discontinued operations was $100,000 and $387,000 for the three
and nine months ended August 31, 1999 respectively, as compared to net income of
$1,052,000 and $1,473,000 for the three and nine months ended August 31, 1998.
The losses are attributable to the resolution of certain litigation matters
in the second quarter of 1999 and additional legal costs incurred.
CALTON, INC. (AMEX)
Quarter ended August 31, 1999 1998
Income (loss) from continuing operations. . . . . $ 178,000 $ (352,000)
Income (loss) from discontinued operations, net . (100,000) 1,052,000
------------ -----------
Net income . . . . . . . . . . . . . . . . . . . $ 78,000 $ 700,000
============ ===========
Earnings per share
Basic:
Income (loss) from continuing operations. . . $ .01 $ (.01)
Income (loss) from discontinued operations,
net . . . . . . . . . . . . . . . . . . (.01) .04
------------ -----------
Net income. . . . . . . . . . . . . . . . . . $ - $ .03
============ ===========
Diluted:
Income (loss) from continuing operations. . . $ .01 $ (.01)
Income (loss) from discontinued operations,
net . . . . . . . . . . . . . . . . . . . (.01) .04
------------ -----------
Net income. . . . . . . . . . . . . . . . . . $ - $ .03
============ ===========
Basic weighted average shares outstanding . . . . 21,795,000 26,732,000
Diluted weighted average shares outstanding . . . 22,711,000 26,732,000
This press release contains or may contain forward looking information that
is subject to certain risks, trends, and uncertainties that could cause actual
results to differ materially from expected results. Among these risks, trends,
and uncertainties are matters related to national and local economic conditions
and the effect of governmental regulation on the Company.
FOR FURTHER INFORMATION CONTACT:
Anthony J. Caldarone
Chairman, President, and Chief Executive Officer
Calton, Inc.
(732) 212-1280
Financial news website: www.cfonews.com/cn |
