Littlefield Corporation Announces Eighth Consecutive Quarter of Substantially Improved Earnings
Tuesday April 18, 3:18 pm ET
AUSTIN, Texas--(BUSINESS WIRE)--April 18, 2006--Littlefield Corporation (OTCBB:LTFD - News) today announced earnings for the first quarter of 2006. These results are also the YTD results as this is the first quarter of the year.
Results were substantially improved when compared to Q1-2005. This is the eighth consecutive quarter of substantially improved operating earnings.
There were no significant extraordinary or non-recurring expenses during Q1-2006. Legal fees were very low during the quarter.
Highlights for the quarter are as follows:
1. Earnings per share were $0.0654 as compared to $0.0151 in
Q1-2005. This is a 335% improvement. In addition, outstanding
shares increased by 408,788 or 5%.
2. Net income improved by $453,802 (356%) to $581,389.
3. Littlefield Entertainment (bingo) had Q1-2006 earnings of
$1,107,874, an increase of $398,062 or 56%. Texas increased by
77%. South Carolina increased by 56% and Alabama increased by
26%.
4. Revenue increased by $429,517 or 17% with Littlefield
Entertainment delivering a 21% increase and Littlefield
Hospitality providing a 10% increase.
5. EBITDA increased by 87% or $381,128 to $818,291.
The following report is based upon accounts that have not yet been reviewed by the Company's auditors. Any modifications as a result of that review will be highlighted in the Company's 10-QSB filing, and, if material, will be addressed in a subsequent press release.
REVENUE:
--------
Q1-2006 Q1-2005 Variance % Change
----------- ----------- ----------- -----------
LTFD Corporation $2,919,234 $2,489,717 $429,517 17%
Entertainment 2,172,319 1,799,697 372,622 21%
Hospitality 700,845 637,315 63,530 10%
This is a meaningful increase in revenue and continues a trend which has asserted itself for the preceding seven quarters.
The trend of revenue increases has been as follows:
TREND OF REVENUE Q1- Q2- Q3- Q4- Q1- Q2- Q3- Q4- Q1-
INCREASES 2004 2004 2004 2004 2005 2005 2005 2005 2006
---------------- ----- ----- ----- ----- ----- ----- ----- ----- -----
LTFD Corp (6%) (2%) 1% 9% 11% 10% 20% 17% 17%
Entertainment (6%) 1% 15% 11% 10% 5% (1%) 14% 21%
Hospitality (6%) (8%) (29%) 6% 5% 19% 90% 19% 10%
This overview of the trend of revenue increases is most meaningful when comparing the applicable quarter to the two years earlier. In addition, it shows a solid trend when compared to the immediately preceding quarter.
NET INCOME
----------
Q1-2006 Q1-2005 Variance % Change
----------- ----------- ----------- -----------
LTFD Corporation $581,389 $127,587 $453,802 356%
Entertainment 1,107,874 709,812 398,062 56%
Hospitality (240,172) (241,708) 1,536 1%
Net income increased by 356% which is a very significant increase. This was accomplished by solid revenue increases across the board in entertainment (bingo) while holding expenses firm and reducing corporate overhead. Over 20% of the improvement is attributable to the improvement in legal fees during the quarter. Hospitality's performance was consistent with the seasonality of that industry but is still disappointing. Last year significant increases were made and we look for better performance in the balance of the year.
EBITDA:
-------
EBITDA for Q1-2006 is derived as follows:
QUARTERLY LTFD Corp Entertainment Hospitality
------------------------------ ----------- ------------- -------------
Net Income $581,539 $1,107,874 ($240,172)
Interest, Taxes, Depreciation,
Amortization 236,902 107,728 62,091
EBITDA $818,291 $1,214,952 ($178,081)
Q1-2006 Q1-2005 Variance % Change
----------- ----------- ----------- -----------
LTFD Corporation $818,291 $437,163 $381,128 87%
Entertainment 1,214,952 875,939 339,013 39%
Hospitality (178,081) (150,111) (27,970) (19%)
EBITDA, which is a rough measure of the Company's ability to generate cash flow from operations, increased by 87% or $381,128. The performance of Hospitality was the result primarily of a reduction in the comparative lower interest payments as these acquisitions have now been paid for in full. Hospitality EBITDA would have been identical to last year but for this reduction in interest attributable to the repayment of the acquisition debt.
CORPORATE OVERHEAD:
-------------------
2006 2005 Variance % Change
----------- ----------- ---------- -----------
1st QUARTER, YTD $274,436 $360,254 $85,818 24%
Legal fees were $100,000 lower in Q1-2006 when compared to the earlier quarter. There are only two significant legal issues currently in litigation and the savings in legal fees should continue to be realized.
EARNINGS PER SHARE
------------------
2006 2005 Variance % Change
---------- ---------- ---------- ----------
Q1-2006 and YTD Earnings $581,389 $127,587 $453,802 356%
Shares Outstanding 8,884,244 8,475,456 408,788 5%
Quarterly EPS $0.0654 $0.0151 $0.050 335%
Jeffrey L. Minch, President and Chief Executive Officer of Littlefield Corporation, offered the following comments:
"The results for the Quarter were good, very good! Congratulations
to all who contributed to this excellent performance. It is also
very gratifying in an odd way as there is still much more to be
done and there is every reason to believe we will continue to
improve in an equally dramatic fashion. This was the result of a
gradual improvement in a lot of different areas.
The improvement in Entertainment (bingo) is across the board and
for the first time showcases the contribution of individual units
added in the past and the impact of recent acquisitions. In
addition, there is some small detectable leavening of the normal
seasonality of the bingo business during the first quarter. This
may be the result of a generally more robust national economy.
The performance of Hospitality is consistent with its seasonality
of the industry and the balance of the year looks very promising.
We look forward to another good year in Hospitality but the first
quarter continues to be one in which the inherent seasonality of
the industry frustrates our expectations.
It is important to note that there is no 'master stroke' which has
created this improvement in performance but rather it is the
result of a great number of collective individual improvements
which are therefore not at particular risk to be reversed and will
become structural with the passage of just a bit more time. We
continue to have significant opportunities to similarly improve
performance in the future.
We have changed the date of the conference call to tomorrow.
Please write, e-mail or call with questions."
Earnings will be discussed in a conference call on Wednesday, April 19, 2006, at 11:00 AM CDT. Interested parties may participate by calling 877-407-6177 and requesting the Littlefield Corporation First Quarter 2006 Earnings Conference Call. THIS IS A NEW TIME FOR THE CONFERENCE CALL. |
