RED BANK, N.J., July 14, 2000 (PRIMEZONE)--Calton, Inc. (AMEX:CN), announced today results for the second quarter and first half of fiscal 2000.
Anthony J. Caldarone, Chairman, President and Chief Executive Officer, announced a net loss of $678,000 ($.16 per basic and diluted share) for the three months ended May 31, 2000 compared to net income of $574,000 ($.13 per basic and $.12 per diluted share) for the three months ended May 31, 1999. Mr. Caldarone stated that the current quarter loss is primarily attributable to the losses related to the start-up operations of eCalton and PrivilegeONE, both of which have been acquired during the prior twelve months. The comparable quarter of the prior year resulted in net income, largely the result of the resolution of closing adjustments on the sale of Calton Homes, Inc.
The Company recorded a net loss of $1.7 million for the six months ended May 31, 2000 as compared net income of $4.7 million for the six months ended May 31, 1999. Included in the current year's loss is a $508,000 loss recognized on the sale of securities in addition to losses recognized from its start up operations.
Revenues for the three and six months ended May 31, 2000 were $1.2 million and $2.3 million, respectively as compared to $.8 million and $1.4 million for the three and six months ended May 31, 1999. Revenues increased primarily due to revenues of $327,000 and $555,000 for the three and six months ended May 31, 2000, from eCalton, which was acquired in the third quarter of the prior year.
Selling, general and administrative costs for the three and six months ended May 31, 2000 were $1.6 million and $3.1 million, respectively as compared to $353,000 and $663,000 for the three and six months ended May 31, 1999. These significant increases are attributable to the operations of eCalton and PrivilegeONE aggregating $1.0 million and $1.8 million for the three and six month periods, respectively. In addition, general and administrative expenses have increased at Calton, Inc. primarily due to personnel additions and increased professional costs, attributable to increased acquisition related activities.
There was no tax benefit recorded during this year due to the uncertainty of realization.
CALTON, INC. (AMEX:CN)
Quarter ended May 31, 2000 1999
Income (loss) from
continuing operations $(678,000) $285,000
Income from the sale of
Calton Homes, Inc., net -- 668,000
Loss from discontinued
operations, net -- (379,000)
Net income (loss) $(678,000) $574,000
Earnings per share(a)
Basic:
Income (loss) from continuing
operations $(.16) $.07
Income from the sale of
Calton Homes, Inc., net -- .15
Loss from discontinued
operations, net -- (.09)
Net income (loss) $(.16) $.13
Diluted:
Income (loss) from continuing
operations $(.16) $.06
Income from the sale of
Calton Homes, Inc., net -- .14
Loss from discontinued
operations, net -- (.08)
Net income (loss) $(.16) $.12
Basic weighted average
shares outstanding 4,328,000 4,346,000
Diluted weighted average
shares outstanding 4,328,000 4,619,000
Six Months ended May 31, 2000 1999
Income (loss) from
continuing operations $(1,741,000) $444,000
Income from the sale of
Calton Homes, Inc., net -- 4,554,000
Loss from discontinued
operations, net -- (287,000)
Net income (loss) $(1,741,000) $4,711,000
Earnings per share(a)
Basic:
Income (loss) from
continuing operations $(.40) $.09
Income from the sale of
Calton Homes, Inc., net -- .96
Loss from discontinued
operations, net -- (.06)
Net income (loss) $(.40) $.99
Diluted:
Income (loss) from
continuing operations $(.40) $.09
Income from the sale of
Calton Homes, Inc., net -- .90
Loss from discontinued
operations, net -- (.06)
Net income (loss) $(.40) $.93
Basic weighted average
shares outstanding 4,317,000 4,758,000
Diluted weighted average
shares outstanding 4,317,000 5,043,000
(a) The per share amounts reflect the recapitalization of the Company's Common Stock whereas the Company effected a one-for-five reverse split. Prior year per share amounts have been restated.
This press release 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 national and local economic conditions and the effect of governmental regulation on the Company.