LBP, Inc. Announces Third Quarter and Nine Month Results, and Other Developments
WHITE PLAINS, N.Y.--(BUSINESS WIRE)--Nov. 17, 2000--LBP, Inc. (OTC Bulletin Board: LBPI - news) today reported third quarter net income of $346,000 or $.07 per diluted share, compared to net income of $199,000 or $.04 per diluted share for last year's third quarter, which included income from discontinued operations of $165,000 or $.03 per share.
Net income for the nine months ended September 30, 2000 was $1,086,000 or $.22 per diluted share, compared to net income of $660,000 or $.13 per diluted share for the comparable period last year, which included income from discontinued operations of $165,000 or $.03 per share.
For the nine months ended September 30, 2000, LBP received the three regular quarterly dividends aggregating $1,575,000 on its $20 million investment in the 10.5 percent Cumulative Convertible Preferred Stock of Impac Mortgage Holdings, Inc. The Company's nine month results also include a pre-tax gain of $222,000 relating to the sale of the Company's investment in The North Face, Inc., which was recorded in the first quarter of this year. This gain partially offset mark to market losses of $731,000, which had been recorded in 1999.
Earlier this year the Company filed applications with the Securities and Exchange Commission (``SEC'') requesting either (i) an order from the SEC that the Company is not an investment company under the Investment Company Act of 1940, as amended (the ``1940 Act'') or (ii) an exemption from the provisions of the 1940 Act. In November, 2000 the SEC advised the Company that neither the requested order nor the requested exemption could be granted.
As an investment company, the Company would be required to restructure its operations, management and Board of Directors. As a result, the Company's Board of Directors has determined that it is not in the best interest of the Company's stockholders for the Company to register as an investment company pursuant to the 1940 Act. Therefore, the Board of Directors has determined that it will either adopt a plan of liquidation and dissolution, or a plan to go private.
If a plan of liquidation is adopted by the Board of Directors and approved by stockholders, it may take several years to liquidate the Company's investment and resolve any contingent liabilities. Also, if a plan of liquidation is approved by the Board of Directors and stockholders, in the future, financial statements for subsequent periods will be revised to adopt the liquidation basis of accounting which, among other things, requires that assets and liabilities be stated at their estimated net realizable value and that estimated costs of liquidating the Company be provided to the extent that they are reasonably determinable. The Board of Directors is expected shortly to decide on a course of action.
As a result of changes in the ownership of the Company's common stock during 2000, the Company is a Personal Holding Company for Federal income tax purposes in 2000. As a result, in order to avoid double taxation on the Company, on November 17, 2000 the Board of Directors declared a special dividend of $.18 per share, payable on December 12, 2000, to stockholders of record at the close of business on November 27, 2000.
LBP, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
Nine Months Ended Three Months Ended
September 30, September 30,
2000 1999 2000 1999
(In thousands, except per share amounts)
Investment Income $ 2,231 $ 1,378 $ 666 $ 250
General and
administrative
expenses 585 437 142 138
-------- --------- -------- ---------
Operating
income 1,646 941 524 112
Imputed
interest
expense - 117 - 39
--------- --------- -------- ---------
Income from
continuing
operations
before
income taxes 1,646 824 524 73
Provision for
income taxes 560 329 178 39
--------- --------- -------- ---------
Income from
continuing
operations 1,086 495 346 34
--------- --------- -------- ---------
Discontinued
operations,
net of income
taxes:
Gain on disposal
of assets - 165 - 165
--------- --------- -------- ---------
Income from
discontinued
operations - 165 - 165
--------- --------- -------- ---------
Net Income $ 1,086 $ 660 $ 346 $ 199
========= ========= ======== =========
Net income
per common
share:
Basic:
Continuing
operations $ .22 $ .10 $ .07 $ .01
============ ============ =========== ============
Discontinued
operations $ - $ .03 $ - $ .03
========= ------------ -------- ------------
Net income $ .22 $ .13 $ .07 $ .04
========= ========= =========== ============
Diluted:
Continuing
operations $ .22 $ .10 $ .07 $ .01
============ ============ =========== ============
Discontinued
operations $ - $ .03 $ - $ .03
========= ------------ -------- ------------
Net income $ .22 $ .13 $ .07 $ .04
========= ========= =========== ============
Weighted
average
common shares
outstanding:
Basic 4,937 4,917 4,937 4,932
Diluted 4,949 4,936 4,949 4,949
BALANCE SHEET INFORMATION
September 30, September 30,
(In thousands) 2000 1999
---- ----
ASSETS
Current assets
Cash and equivalents $ 9,238 $ 7,049
Investments
in securities 20,157 20,694
Prepaid expenses
and other current assets 800 856
Discontinued operations,
net - Prime Acquisition Corp. - 127
-------- ---------
Total assets $ 30,195 $28,726
LIABILITIES AND
STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable,
accrued expenses and
other current liabilities $ 410 $ 318
Discontinued operations,
net - Prime Acquisition Corp. 312 -
Discontinued operations,
net - White Metal Rolling and
Stamping Corp. 329 4,127
-------- ---------
Total liabilities 1,051 4,445
Stockholders' equity 29,144 24,281
-------- ---------
Total liabilities and
stockholders' equity $ 30,195 $ 28,726
--------------------------------------------------------------------------------
Contact:
LBP, Inc.
Leigh J. Abrams, President & CEO
Phone: 914/421-2545
Fax: 914/428-4581 |
