CHLR news...
Chancellor Posts 1,860% Growth in Record First Quarter Revenues, Records Sixth
Consecutive Profitable Quarter
Business/Technology Editors
BOSTON, Mass.--(BUSINESS WIRE)--May 13, 1999--Chancellor
Corporation (OTC BB:CHLR) announced today its results for the first
quarter of fiscal 1999. For the period ended March 31, 1999, the
Company posted record first quarter revenues of $13,390,000, as
compared to $682,000 for the same period last year, an increase of
approximately 1,863%. The Company's first quarter revenues exceeded
the results for the highest first quarter ever in the Company's
twenty-plus year history, surpassing the mark of $12.7 million set in
the first quarter of 1988.
The Company reported a profit of approximately $127,000, or $.00
per share, versus a profit of $27,000, or $.00 per share, for the same
period of last year, an increase of approximately 370%. Additionally,
the Company posted approximately 384% growth in total assets and a
2,700% increase in stockholder's equity.
The Company attributes most of the success in the first quarter
to the Company's many initiatives including the introduction of its
"Wholesale-Plus" lease pricing strategy and Total Holding Cost
concept, the acquisition of several equipment lease portfolios, and
significant growth in transportation equipment sales through the
Company's Chancellor Asset Management subsidiary. These initiatives,
including the Company's retail sales center strategy, are all part of
the restructuring and transition plan that was implemented in early
1997. After reporting a 569% growth in total revenues in 1998, the
management believes that the Company is on target to meet its goal of
generating approximately $60 million in revenues for 1999.
The management further believes that the Company is in an
excellent position to take advantage of the strong demand for both new
and used transportation equipment. The Company anticipates increasing
its exposure by opening or acquiring additional retail sales centers
in select markets. In particular, the Company is making preparations
to open a location in the Southwest, which will expose the Company to
one of the largest regions for secondary market transportation
equipment sales in the country.
Franklyn E. Churchill, president and chief operating officer,
stated: "The first quarter results demonstrate that we are serious and
committed to the development of Chancellor into an industry leader in
transportation equipment finance and fleet management solutions. The
acquisitions we have completed have been accretive to the Company's
operations and balance sheet. We believe that the foundation we have
created, as well as future expansion into the Southwest by the end of
the third quarter will enable us to meet our goals in 1999."
Chancellor Chairman and Chief Executive Officer, Brian M. Adley,
commented: "Our business continues to progress in nearly all areas
from the size and scope of its operations, its growth in assets and
its overall financial operating performance. We believe there is still
a tremendous amount of work to be done in order to achieve our five
year revenue goal. However, we believe that with the foundation we
have created, we will be able to focus on the fundamentals of our
business to bring Chancellor to the next level."
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*T
Consolidated Summary of Operations
(in thousands, except per share amounts)
Period Ending March 31,
1999 1998
Selected Income Statement Data
Revenues 13,390 682
Net Income 127 27
Basic EPS - -
Diluted EPS - -
Weighted Average Shares Outstanding
Basic 43,240 25,403
Diluted 59,403 25,403
Selected Balance Sheet Data
Total Assets 32,644 6,736
Total Liabilities 25,444 6,479
Stockholder's Equity 7,200 257
*T
-0-
Chancellor Corporation is spearheading an evolution in
transportation equipment finance through innovative financing and
fleet management programs. The Company seeks to reduce a customer's
total holding cost through its "Wholesale-Plus" lease pricing strategy
and through other value-added services, including asset management,
equipment maintenance, fuel management and data management strategies.
Since its founding in 1977, Chancellor has completed a total of
approximately $1.5 billion in equipment lease transactions for its
Fortune 500 and middle market customers in the U.S. and select
international markets. Chancellor is a fleet management and
transportation equipment leasing firm headquartered in Boston. The
Company's Internet address is chancellorcorp.com. The
Company is publicly traded under the symbol "CHLR".
"Safe Harbor" Statement under the Private Securities Litigation Reform
Act of 1995:
The statements contained in this release which are not historical
facts may be deemed to contain forward-looking statements with respect
to events, the occurrence of which involves risks and uncertainties,
including, without limitation, demand and competition for the
Company's lease financing and asset management services and the
products to be leased or remarketed by the Company, the continued
availability to the Company of adequate financing, the ability of the
Company to recover its investment in equipment through remarketing,
and other risks and uncertainties detailed in the Company's Securities
and Exchange Commission filings.
For more information, see www.otcfn.com/chlr and
www.chancellorcorp.com.
--30--gk/bos*
CONTACT: OTC Financial Network
Michael McGinty
877-663-0166 / 781-444-6100 ext. 46
mcginty@otcfn.com
or
Chancellor Corporation
Peter Mullen
617-368-2716
pmullen@chancellorfleet.com
KEYWORD: MASSACHUSETTS
INDUSTRY KEYWORD: TRANSPORTATION BANKING COMED
COMPUTERS/ELECTRONICS EARNINGS
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May-13-1999 09:55 GMT
Symbols:
US;CHLR
Source BW Business Wire |
