CNGR reports earnings-
(BSNS WIRE) The Crown Group Reports Significant Gains in Earnings for Se
The Crown Group Reports Significant Gains in Earnings for Second Quarter and
First Half of FY1999; Revenues Approach $41 Million During Six-month Period
Ended October 31, 1998
Business Editors
DALLAS--(BUSINESS WIRE)--Dec. 15, 1998--Crown Group, Inc.
(Nasdaq:CNGR) today announced sharply higher revenues and earnings for
the second quarter and first half of its 1999 fiscal year.
For the three months ended October 31, 1998, revenues totaled
$19.8 million, compared with approximately $0.6 million in the second
quarter of the previous fiscal year. Revenues during the most recent
quarter were derived from the Company's four principal business
segments: Paaco Automotive Group ($16.2 million), Precision IBC ($1.4
million), Concorde Acceptance Corporation ($1.6 million), and
Corporate/Other ($0.7 million). Net income increased to $501,108, or
$0.05 per share, in the three months ended October 31, 1998, versus a
net loss of ($50,829) or ($0.01) per share, in the year-earlier
quarter.
Revenues for the six-month period ended October 31, 1998, reached
$40.8 million, compared with $1.0 million in the year-earlier period.
Revenues during the first half of the current fiscal year were derived
as follows: Paaco Automotive Group - $33.8 million; Precision IBC -
$2.7 million; Concorde Acceptance Corporation - $3.2 million; and
Corporate/Other - $1.4 million. The Company reported net income of
$1,508,389, or $0.15 per share, during the six months ended October
31, 1998, versus a net loss of ($360,222), or ($0.04) per share, in
the corresponding period of the previous fiscal year.
"We are very pleased with The Crown Group's operating performance
during the quarter and six-month period ended October 31, 1998,"
commented Edward R. McMurphy, president and chief executive officer of
The Crown Group. "While business at our automobile and casino
subsidiaries slowed on a seasonal basis during the August-October
period, when compared with our first quarter, each of our operating
units contributed to earnings during the second quarter. Excluding
Crown's share of a non-recurring charge of $225,000 at Casino Magic
Neuquen, second quarter operating results were in line with
management's expectations."
"Developments that we are looking forward to in the third fiscal
quarter include Paaco's initial entry into the Houston market, where
its first used car dealership will open in January, to be followed by
a second location in February. By mid-1999, we expect three used car
stores to be operating in the greater Houston metropolitan area. Our
Home Stay Lodge subsidiary will open its first extended-stay facility
in January and a second hotel in February. Both are located in the
Pensacola, Fla. area, and their development is on schedule and on
budget. Precision IBC continues to lease its fleet of intermediate
bulk containers at a high level of utilization, and Concorde
Acceptance Corporation is performing satisfactorily within the
consolidating subprime mortgage industry."
"Finally, we expect to complete our recently-announced
acquisition of America's Car-Mart, Inc. ("Car-Mart") by mid-January,"
continued McMurphy. "Headquartered in Rogers, Ark., Car-Mart is one of
the largest "Buy-Here Pay-Here" used car dealers in the United States,
with revenues of approximately $52 million in its most recent fiscal
year. The company has developed a strong franchise in non-urban
communities over the past 18 years, and we expect Car-Mart to
complement our Paaco Automotive Group subsidiary. Management believes
the Car-Mart acquisition can increase Crown's earnings per share by
approximately $0.40 in the first twelve months following the closing
of the acquisition, when revenues from our automotive subsidiaries
should exceed $130 million."
Under a previously-authorized stock repurchase program, Crown
purchased 338,290 shares of its common stock during the first half of
its 1999 fiscal year, at an average purchase price of $3.32 per share.
The Company has purchased 2,722,029 shares of its common stock, or
approximately 23% of the total shares outstanding since March 1996.
Crown Group, Inc. is a publicly traded buy-out firm 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 resources and
management expertise. Crown Group currently owns (i) 65% of Paaco
Automotive Group, a vertically integrated used car sales and finance
company; (ii) 100% of Precision IBC, a firm specializing in the sale
and rental of intermediate bulk containers; (iii) 80% of Concorde
Acceptance Corporation, a sub-prime mortgage lender; (iv) 49% of
Casino Magic Neuquen, a casino operator in the Province of Neuquen,
Argentina; and (v) 80% of Home Stay Lodge, a partnership which is
involved in the development and operation of extended-stay lodging
facilities.
Crown Group, Inc. is headquartered in Dallas, and its 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 could cause or contribute to such differences
include, but are not limited to, changing economic conditions, changes
in interest rates, continued acceptance of the Company's products and
services in the marketplace, competitive factors, dependence upon
lenders, and other risks detailed in the Company's periodic 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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*T
CROWN GROUP, INC.
AND SUBSIDIARIES
SELECTED FINANCIAL HIGHLIGHTS (Unaudited)
Three Months Ended
Oct. 31,
Oct. 31, Oct. 31,
1998 1997
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Total revenues $ 19,750,024 $ 555,633
Costs and expenses 18,976,769 1,145,972
Equity in earnings of CMN 147,807 167,806
Gain on sale of securities -- 23,674
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Income (loss) before taxes
& minority interests 921,062 (398,859)
Provision (benefit) for income taxes 282,004 (348,030)
Minority interests 137,950 --
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Net income (loss) $ 501,108 $ (50,829)
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Earnings (loss) per share:
Basic $ 0.05 $ (0.01)
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