SPRINGFIELD, Va., Sep 21, 2000 /PRNewswire via COMTEX/ -- Sarnia Corporation
(OTC Bulletin Board: SARN.OB) today announced continued improved financial
performance for fiscal year 2000. Net income applicable to common stock for
fiscal year 2000, which ended on June 30, 2000, was $2,127,000 (or $.45 per
share) compared to net income applicable to common stock of $180,000 (or $.04
per share) in fiscal year 1999. This significant improvement is due primarily to
the recognition of the Virginia Department of Transportation's ("VDOT") taking
of 2.45 acres, net of tax of $1,362,000 and the reversal of the Company's tax
valuation allowance of $514,000. The remaining balance of $251,000 is due to
continued improved operating financial performance, 40% more than last year's
results. Real estate rental revenue in fiscal year 2000 of $3,487,000 was
$231,000 (7%) higher than the $3,256,000 of real estate rental revenue in fiscal
year 1999. The increase was primarily due to rent escalations.
Mr. Charles I. Judkins, Jr. President and Chief Executive Officer of Sarnia
Corporation said: "Fiscal year 2000 was our strongest year as an independent
company. During this year we have solidified our rent roll for the next couple
of years as we look to resolve the VDOT condemnation of a portion of the
Company's property. The Company will have to construct a new parking garage on
the 6850 property and a new access road to the 6800 property due to the VDOT
condemnation. We continue to strengthen our financial position with our improved
performance, debt reduction and control over our expenses."
Sarnia Corporation, headquartered in Springfield, Virginia, is a management
company which owns and operates an office park of approximately 15.8 acres
located in Springfield, Virginia known as Versar Center. The center consists of
two four-story buildings. The principal business of the tenants are
environmental consulting, engineering, government contractors, government
agencies, and other service businesses.
This press release contains forward-looking information. The forward looking
statements are made pursuant to the safe harbor provisions of the Private
Securities Litigation Reform Act of 1995. Forward-looking statements may be
significantly impacted by certain risks and uncertainties described herein and
in Sarnia's Annual Report on Form 10-K filed with the Securities and Exchange
Commission for the year ended June 30, 1999.
SARNIA CORPORATION
STATEMENTS OF OPERATIONS
Years Ended June 30,
2000 1999 1998
(In thousands, except per share data)
Real estate rental revenue $3,487 $3,256 $3,127
Real estate expenses 1,546 1,422 1,419
1,941 1,834 1,708
Depreciation/amortization 576 580 573
General and administrative 90 94 94
Gain from condemnation of
property (see Note H) (2,196) -- --
Income from real estate 3,471 1,160 1,041
Interest expense 710 742 793
Net income before income taxes 2,761 418 248
Income tax expense 555 159 99
Net income 2,206 259 149
Dividends on preferred stock 79 79 79
Net income applicable to
common stock $2,127 $180 $70
Net income per share
applicable to common
stock - basic $0.47 $0.04 $0.02
Net income per share
applicable to common
stock - diluted $0.45 $0.04 $0.02
Weighted average number of
shares outstanding -- basic 4,573 4,573 4,573
Weighted average number of
shares outstanding -- diluted 4,681 4,665 4,664
SOURCE Sarina Corporation
CONTACT: James C. Dobbs, 703-642-6712, or email: dobbsjam@versar.com,
for Sarnia Corporation
(SARN.OB) |
