Carnegie Cooke Reports EPS of $0.16 for the Year Ending June 30, 2002, An Increase of $0.09 Per Share Over Fiscal 2001
LAS VEGAS
Carnegie Cooke & Company, Inc. ("Carnegie Cooke")(OTC: CGKY - News) today announced un-audited EPS for the fiscal year ending June 30, 2002 of $0.16, over twice the EPS for fiscal 2001.
Jay Goldberg, CEO, explained: "We are pleased with these results, especially when you consider that outstanding shares have been increased to about 25 million upon completion of our private placement.
"All of the growth trends noted throughout the year remain the same. During the last 3 months of the year, we have inaugurated the Virtual Reality Machine portion of our business, already have machines operating in Porto Alegre and have begun installation of these machines in Sao Paulo.
"We have invested heavily in these machines. As of June, 2002 a portion of these machines had been received, and a deposit placed on the rest of the initial order of 200. During the last quarter of this year, we have been installing these machines and see no problem with meeting our initial goal of over 400 machines by 12-31-02. As of June 30, 2002, these machines account for less than 2% of the twelve-month income. We expect to see dramatic increases in this percentage as we near our 400 machine goal.
"As you can see from the following condensed Balance Sheet and highlighted Income Statement, the trends we have noted in the past continue. We are constantly building working capital, and have at this date invested some of that capital into the race tracks and the machines. This investment in the tracks, machines, and other tangible assets accounts for the reduction in cash of 64%. At June 30, 2001 we had not begun these capital expenditures, and had cash from the beginning of the private placement. This cash was used for these expenditures. However, our working capital of $4,140,758 is still an increase of 189% over June 30, 2001's working capital of $1,428,342.
"Although we use an SG&A figure equal to 16% of Net Revenue for our decision making and projections, the actual SG&A continues to decrease well below this point so that as of June 30, 2002, it is 9% or 53% lower than it was at June 30, 2001. This reduction of SG&A as a percent, of course, contributed to our increase of 142% in Net Income."
The following is a condensed consolidated statement of earnings for the twelve-month periods ending June 30, 2002 and June 30, 2001.
Twelve-Months Ending Percentage
June 30, 2002 June 30, 2001 Increase/(Decrease)
Net Revenue $4,314,179 $2,012,989 114%
SG&A 398,759 392,965 (1.4%)
Net Income 3,915,420 1,620,024 142%
SG&A as a % of
Net Income 9.2% 19.5% (53%)
EPS (Fully Diluted)
24,927,132 shares $0.16 $0.07 129%
The following represent highlights from the balance sheets at
June 30, 2002 and June 30, 2001.
June 30, 2002 June 30, 2001 Percentage
Increase/(Decrease)
Cash on Hand $317,480 $892,890 (64%)
Current Assets 4,235,573 1,462,890 189%
Long Term Assets 13,291,036 11,463,658 16%
Total Assets $17,526,609 $12,926,548 36%
Retained Earnings 6,440,956 2,525,536 155%
Shareholders' Equity 17,056,636 12,503,457 36%
Total Liabilities &
Equity $17,526,609 $12,926,548 36%
Carnegie Cooke & Company, Inc. is the exclusive service provider of simulcast transmission of international racing events throughout Brazil and other South American countries. In addition, Carnegie Cooke has contracted with the Brazilian Association of Jockey Clubs to mechanize the manual system of betting throughout Brazil, and the Brazilian government has approved this contract and named Carnegie Cooke as an accredited collector of betting revenue in Brazil.
For further information contact -- Jay Goldberg, CEO at 800-262-2331.
Except for historical information, the matters set forth herein, which are forward-looking statements, involve certain risks and uncertainties that could cause actual results to differ. Potential risks and uncertainties include, but are not limited to, the expenses associated with implementing the Company's manufacturing and distribution agreement, the possible failure of the Company's planned gaming operations, the potential shortfall on actual amount of sales which may be derived from the Company's operations as opposed to estimates, the possible failure of the Company to establish a presence in the highly competitive environment within the Brazilian and South American gaming industry, the necessity that the Company's products achieve market acceptance, and the Company's ability to successfully implement all of the technical and economic aspects of its proposed operations. |
