CNGR posts $1.21 in profit for the last quarter-
DALLAS--(BUSINESS WIRE)--March 17, 1999--
Third Quarter Diluted EPS of $1.21 Includes Gain From Sale of Inktomi
Shares and $700,000 in One-Time After-Tax Charges
Crown Group, Inc. (Nasdaq:CNGR) today announced sharply higher
revenues and earnings for the third quarter and first nine months of
its 1999 fiscal year.
For the three months ended January 31, 1999, revenues totaled
$23.3 million, compared with approximately $1.2 million in the third
quarter of FY1998. Revenues during the third quarter of FY1999 were
derived from the Company's four principal business segments:
Automotive Sales and Finance ($20.3 million), Precision IBC
($1.2 million), Concorde Acceptance Corporation ($1.3 million), and
Other ($0.5 million). Net income increased to $12,586,852, or $1.21 per
diluted share, in the quarter ended January 31, 1999, versus net
income of $13,695, or $0.00 per share in the prior-year period.
Revenues for the nine-month period ended January 31, 1999
increased to $64.1 million, compared with $2.2 million in the first
nine months of the previous fiscal year. Revenues during the nine
months ended January 31, 1999 were derived as follows: Automotive
Sales and Finance - $54.1 million; Precision IBC - $3.9 million;
Concorde Acceptance Corporation - $4.4 million; and
Other - $1.7 million. The Company reported net income of $14,095,241,
or $1.36 per diluted share, during the first nine months of FY1999,
versus a net loss of ($346,527), or ($0.03) per share, in the
corresponding period of the previous fiscal year.
Net income for the third quarter and first nine months of FY1999
included approximately $12.5 million in gains (after taxes) from the
sale of Inktomi Corporation common stock. As of January 31, 1999,
Crown owned an additional 124,444 Inktomi shares. Also, the Company
recorded one-time charges totaling $700,000 (after taxes) related to
certain acquisitions/ventures which Crown abandoned in the third
quarter and a casino "head tax" dispute between the City of Neuquen,
Argentina, and Casino Magic Neuquen ("CMN"). Revenues for the third
quarter included contributions from Car-Mart for only 17 days, since
that subsidiary was acquired on January 15, 1999.
"Management was very pleased with the operating results of our
subsidiary companies during the most recent quarter and for the first
nine months of our 1999 fiscal year," stated Edward R. McMurphy,
president and chief executive officer of The Crown Group. "Excluding
non-recurring charges and gains on the sale of securities, Crown's
earnings would have approximated $770,000, or $0.07 per diluted share,
in the third quarter. Since the end of January, we have sold the
remaining Inktomi shares, realizing a further pretax gain of
approximately $6 million, which will be recorded during the fourth
quarter."
"As a result of the acquisition of Car-Mart in January, the
annualized revenue 'run rate' of our automotive subsidiaries now
exceeds $150 million. Precision IBC continues to enjoy excellent
demand for its growing fleet of storage containers, and Concorde
Acceptance Corporation was slightly profitable for the nine-month
period, despite softness in the subprime mortgage market. Our
investment in CMN has been very gratifying, and we are pleased to
report that CMN's net income rose more than 85% during the first nine
months of Fiscal 1999. We recently announced a second international
gaming venture in El Salvador, where we expect to open a number of
casinos during the next two years."
"With the seasonally-slow third quarter behind us in the subprime
automotive business, and with the addition of Car-Mart and a further
15% equity ownership in Paaco Automotive Group, we look forward to a
strong fourth quarter," continued McMurphy. "Fiscal 1999 as a whole
should be a record-setting year for Crown Group, and we view the
upcoming fiscal year with great optimism."
As of January 31, 1999, Crown Group's shareholders' equity
totaled $52.7 million, which was equivalent to approximately $5.30 for
each share of common stock outstanding.
Under a previously-authorized stock repurchase program, Crown
purchased 353,188 shares of its common stock during the first nine
months of its 1999 fiscal year. The Company has repurchased 2,736,927
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.
Crown Group currently owns (i) 80% of Paaco Automotive Group and 100%
of Car-Mart, vertically integrated used car sales and finance
companies; (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; (v) 50.1% of Crown El Salvador, a casino development
company in El Salvador; and (vi) 80% of Home Stay Lodges, a
partnership which is involved in the development and operation of
extended-stay lodging facilities.
Crown Group, Inc. is headquartered in Dallas, Texas, 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.
For further information, please contact Edward R. McMurphy or
Edward Preuss, Jr. at 972/717-3423 or R. Jerry Falkner, CFA,
Investor Relations Counsel at 800/377-9893.
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