Crown Group Expects Earnings of .07 on 1800% Revenue Rise.
Company Press Release
Crown Group Expects Earnings of $0.07 Per Share in Fourth Quarter Of FY1998
Fourth Quarter Revenues Exceeded $18.9 Million
DALLAS--(BUSINESS WIRE)--June 8, 1998--Crown Group, Inc. (Nasdaq: ''CNGR'') today announced that it expects to report earnings of approximately $690,000 ($0.07 per share) for its fourth quarter ended April 30, 1998. Revenues for the quarter exceeded $18.9 million. For the fiscal year ended April 30, 1998, The Crown Group expects to report net income of approximately $350,000 ($0.04 per share) on revenues of approximately $21.2 million. Management expects to report detailed audited results for the fourth quarter and fiscal year by July 30, 1998.
''We are very pleased with our operating results during the fourth quarter of fiscal 1998,'' commented Edward R. McMurphy, President and Chief Executive Officer of The Crown Group. ''Crown benefitted from almost a full three months' equity ownership in PAACO, Precision IBC, and Casino Magic Neuquen, each of which operated at near-record levels of profitability during the February-April period. Although Concorde Acceptance Corporation, our subprime mortgage lending subsidiary which began operations in June 1997, posted a small loss in the fourth quarter, it was profitable during the final two months of fiscal 1998 and should be a contributor to Crown's earnings in the current fiscal year.''
''During the past twelve months, The Crown Group has developed a portfolio of small-cap companies with strong growth potential, and we expect these investments to significantly enhance shareholder values in the future,'' continued McMurphy. ''Our 53%-owned PAACO subsidiary, which retails and finances used cars and trucks to the rapidly-growing Hispanic market, expects to expand into Houston during fiscal 1999. Precision IBC, which is 80% owned by Crown, has expanded its rental fleet of intermediate bulk containers by 16% since we acquired that subsidiary in February 1998. Concorde Acceptance Corporation, 80% owned by Crown, has continued to set new records in loan originations and we believe has turned the corner of profitability. Finally, our 49%-owned Casino Magic Neuquen subsidiary, which operates two casinos in the Province of Neuquen, Argentina, continues to provide an excellent return on our original investment.''
''We recently entered the lodging industry by acquiring an 80% interest in Home Stay Lodges, a venture which is developing and will operate extended-stay lodging facilities in the Southeastern United States. Home Stay Lodges has targeted an unserved niche of the lodging industry by offering quality accommodations at prices significantly below most other extended-stay lodging providers, and we believe the concept can be developed into a company with significant profit potential.''
''We are encouraged by operating trends at all of our subsidiaries during the first six weeks of the current quarter, and we expect fiscal 1999 to be a very profitable year for The Crown Group,'' concluded McMurphy.
Crown Group, Inc. (''Crown''), which operates as The Crown Group, is a diversified company which seeks to enhance shareholder value through the acquisition, development, and operation of small-cap companies with significant growth potential. Such companies can benefit from Crown's financial and management expertise. The achievement of Crown's investment objectives may involve initial public offerings, mergers, spinoff transactions or sales to strategic partners. The Company's common stock is traded on Nasdaq under the symbol ''CNGR''.
This press release includes statements that may constitute ''forward-looking'' statements, usually containing the words ''believe,'' ''estimate,'' ''project,'' ''expect'' or similar expressions. These statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements inherently involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. Factors that would cause or contribute to such differences include, but are not limited to, changing economic conditions, interest rate trends, continued acceptance of the Company's products and services in the marketplace, competitive factors, dependence upon third-party vendors, and other risks detailed in the Company's periodic report filings with the Securities and Exchange Commission. By making these forward-looking statements, the Company undertakes no obligation to update these statements for revisions or changes after the date of this release.
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Contact:
The Crown Group, Dallas
Edward R. McMurphy, 972/717-3423
or
R. Jerry Falkner, 800/377-9893 |
