VERO BEACH, Fla., Oct. 15, 2001 (PRIMEZONE) -- Calton, Inc. (AMEX:CN), announced today the results of operations for the third quarter and nine months ended August 31, 2001.
Anthony J. Caldarone, Chairman, President and Chief Executive Officer, announced a net loss of $1,463,000 ($.33 per basic and diluted share) for the three months ended August 31, 2001, compared to a net loss of $1,349,000 ($.32 per basic and diluted share) for the three months ended August 31, 2000. Mr. Caldarone also announced a net loss of $3,668,000 ($.86 per basic and diluted share) for the nine months ended August 31, 2001, compared to a net loss of $3,090,000 ($.72 per basic and diluted share) for the nine months ended August 31, 2000. Included in the loss for the nine months ended August 31, 2000 is a $718,000 loss recognized on the sale of securities.
Revenues for the three months ended August 31, 2001 and August 31, 2000 were $1,328,000 and $1,064,000, respectively. Revenues for the nine months ended August 31, 2001 and August 31, 2000 were $4,282,000 and $2,273,000, respectively. The primary reason for the increase in fiscal 2001 compared to 2000, for both the quarter and nine months, was the revenue associated with the eCalton technical staffing division. For the quarter and nine months ended August 31, 2001, the eCalton technical staffing division generated revenues of $734,000 and $2,281,000, respectively. For both the quarter and nine months ended August 31, 2000, the eCalton technical staffing division generated revenues of $267,000, as the Company began operating this business during the quarter ended August 31, 2000.
Selling, general and administrative costs for the three months ended August 31, 2001 and August 31, 2000 were $2,334,000 and $2,722,000, respectively. The primary reason for the decline in fiscal 2001 is due to a substantial reduction in the operating activities of the eCalton Internet strategy Web design division. During the quarter ended August 31, 2000, this division was expanding its operations. However, this particular industry has experienced a sharp decline and, as a result, subsequent to the quarter ended August 31, 2000, the Company began restructuring the operations of the eCalton Internet strategy and Web design division, which included, among other things, a reduction in personnel and operating expenses. However, these reduced operating expenses were partially offset by increased operating expenses of the Company's subsidiary PrivilegeONE Networks, LLC, which expanded its business activities in developing a credit card and loyalty program during the quarter ended August 31, 2001. Selling, general and administrative costs for the nine months ended August 31, 2001 and August 31, 2000 were $7,086,000 and $5,833,000, respectively. The increase in 2001 for nine months is primarily from increased personnel and business activities at PrivilegeONE, the operations of Innovation Growth Partners ("IGP"), the Company's business development subsidiary, which did not exist until June 2000, increased professional fees, and a provision for uncollectible receivables in 2001. In addition, during the nine months ended August 31, 2001, the Company recorded a certain non-cash charge in the amount of $367,000 for stock options issued as consideration for consulting services, which is included in selling, general and administrative expenses.
CALTON INC. (AMEX:CN)
Quarter Ended
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Aug. 31, 2001 Aug. 31, 2000
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Revenue $ 1,328,000 $ 1,064,000
Net loss $(1,463,000) $(1,349,000)
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Basic and diluted
loss per share $ (0.33) $ (0.32)
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Weighted average number
of shares outstanding
Basic and diluted 4,396,000 4,261,000
Nine Months Ended
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Aug. 31, 2001 Aug. 31, 2000
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Revenue $ 4,282,000 $ 2,273,000
Net loss $(3,668,000) $(3,090,000)
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Basic and diluted
loss per share $ (0.86) $ (0.72)
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Weighted average number
of shares outstanding
Basic and diluted 4,245,000 4,299,000
Certain information included in this press release and Company filings (collectively, "SEC filings") under the Securities Act of 1933, as amended, and the Securities Exchange Act of 1934, as amended (as well as information communicated orally or in writing between the dates of such SEC filings) contains or may contain forward-looking information that is subject to certain risks, trends and uncertainties that could cause actual results to differ materially from expected results. Among these risks, trends and uncertainties are matters related to the indemnification provisions in connection with the Company's sale of Calton Homes, Inc., national and local economic conditions, the lack of an established operating history for the Company's current business activities, conditions and trends in the Internet and technology industries in general, the effect of governmental regulation on the Company and the risks described under the caption "Certain Risks" in the Company's Annual Report on Form 10-K for the fiscal year ended November 30, 2000.