Greyvest Capital Inc. Reports 1998 Second Quarter Results
TORONTO, ONTARIO--Greyvest Capital Inc. today reported that
revenues for the second quarter of 1998 declined to $15.9 million
versus $30.7 million in the second quarter of 1997 reflecting the
sale of the U.S. computer leasing operations in early 1998. Net
earnings for the second quarter of 1998 were $100,000, down from
$1.6 million for the corresponding period in 1997, reflecting the
sale of the U.S. operations and related costs. The U.S. computer
leasing operations which comprised Greyvest U.S. Inc., Princeton
Credit Corporation and Frank Orlando Jr. & Co. Inc. were sold to
Meridian Leasing Corporation and proceeds of approximately $75
million were used to repay debt.
The process initiated by the Greyvest Board of Directors to
evaluate all the assets and operations of the company with the
purpose of preserving and enhancing shareholder value continues.
Other assets and operations will be likely sold or restructured
prior to year-end.
Net earnings for the first half of 1998 declined to a loss of $6.0
million versus a profit of $2.4 million in 1997. The 1998 results
reflect a non-cash write-off of goodwill totalling $6.8 million
and other costs related to the sale of assets and reorganization
efforts. Excluding the non-cash goodwill write-off, net profit
for the first half of 1998 was approximately $740,000 after tax.
On June 30, 1998, the term of the $17,950,000 convertible
debentures was extended to June 30, 2000. The extended debentures
no longer contain a conversion feature and there is no penalty for
early redemption.
Greyvest's asset base at June 30, 1998 was $140.4 million compared
to $332.9 million at June 30, 1997, while total debt at June 30,
1998 was $101.5 million versus $288.3 million a year ago. Both of
these significant reductions were due primarily to the sale on
March 31, 1998 of our U.S. computer leasing operations to Meridian
Leasing Corporation as reported in our 1998 1st quarter report.
Greyvest Capital Inc. is a leading computer rental and leasing
company serving corporate clients, systems integrators and
equipment resellers across Canada and in the United States.
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FOR FURTHER INFORMATION PLEASE CONTACT:
Greyvest Capital Inc
Lou Elmaleh
Chairman of the Board and Chief Executive Officer
(416) 366-1513
or
Greyvest Capital Inc
Stuart Mooney
President and Chief Operating Officer
(416) 366-1513 |
