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On December 31, 1998, Calton, Inc. completed the sale of its primary operating subsidiary, Centex Real Estate Corporation, for $48.1 MM. At the time of the sale, the company announced that it would analyze potential business opportunities and, if it had not deployed a substantial portion of the proceeds from the sale of Centex within an 18 month period, that the company would be liquidated and the proceeds distributed to its shareholders. It also announced its intention to repurchase as many as 10.0 MM of its common shares in open market and privately negotiated transactions by the end of its current fiscal year which ends November 30, 1999.
As of June 30, 1999, the company has repurchased 5,807,000 of its common shares for an aggregate purchase price of $7,460,000.
In February 1999, Anthony Caldarone, the CEO of CN, acquired 866,000 common shares in a private transaction.
As of June 30, 1999, the company had cash and marketable securities totaling $34.455 MM, or $1.59 per share. If you adjust for the potential dilution from outstanding options, the cash per share works out to $1.51. Friday's closing price was 1 3/8.
While the company indicated in its Form 10-K that it was looking at some opportunities in the home building industry, it added two new directors this spring, both of whom have backgrounds in the information technology and Internet arenas.
On July 28, 1999, the company filed a Form 8-K announcing the acquisition of iAW, Inc., an entity owned by one of its new directors. iAW, Inc. is "...an Internet business solution provider established in 1995 that assists companies in defining an effective Internet business strategy and implementing applications. iAW, which is an early stage development company, also provides video conference services." The purchase price was $250,000 plus options to acquire 1.8 MM shares of common stock at $1.63 per share.
For the year ending December 31, 1998, iAW, Inc. had sales of $218,000 and net income of $44,000. For the six months ending June 30, 1999, iAW, Inc. had sales of $368,000 and net income of $91,000. CN has agreed to commit $2.0 MM to the development of iAW, Inc.
Form 10-K for the year ending November 30, 1998
sec.gov
Proxy materials
sec.gov
Form 10-Q for the six months ending May 31, 1999
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