RED BANK, N.J., Oct. 13, 2000 (PRIMEZONE) -- Calton, Inc. (AMEX:CN) announced today results for the third quarter and nine months ended August 31, 2000.
Anthony J. Caldarone, Chairman, President and Chief Executive Officer, announced a net loss of $1,349,000 ($.32 per basic and diluted share) for the three months ended August 31, 2000 compared to net income of $78,000 ($.02 per basic and diluted share) for the three months ended August 31, 1999. Mr. Caldarone stated that the current quarter loss is primarily attributable to the losses related to operations of eCalton, PrivilegeONE and Innovation Technology Partners, all of which continue to be in their start-up phase. The comparable quarter of the prior year had significantly less selling, general and administrative expenses, which allowed the Company to generate a profit in that quarter.
The Company recorded a net loss of $3.1 million for the nine months ended August 31, 2000 compared to net income of $4.8 million for the nine months ended August 31, 1999. Included in the current period loss is a $508,000 loss recognized on the sale of securities, and a $210,000 loss resulting from the abandonment of projects. The profit for the period ended August 31, 1999 was largely a result of the resolution of closing adjustments on the sale of Calton Homes, Inc.
Revenues for the three and nine months ended August 31, 2000 were $1.1 million and $2.3 million, respectively, compared to $.4 million and $.8 million for the three and nine months ended August 31, 1999. Interest income included in revenues in the amount of $505,000 and $1,468,000 for the three and nine months ended August 31, 1999, respectively, was reclassified as interest income to conform to current year presentation. The increase in revenues for both the quarter and nine months ended August 31, 2000 was primarily attributable to an increase in revenues of eCalton.
Selling, general and administrative expenses were $2.7 million and $5.8 million for the three and nine months ended August 31, 2000, compared to $.5 million and $1.2 million for the three and nine months ended August 31, 1999, respectively. During fiscal 1999, the Company sold its homebuilding business and had minimal operating expenses from eCalton and a reduced corporate office. During fiscal 2000, the Company expanded its operations at eCalton, acquired controlling interests in PrivilegeONE and Innovation Technology Partners, and relocated and increased staffing at its corporate office. As a result, selling, general and administrative expenses experienced a significant increase during fiscal 2000 attributable primarily to payroll and payroll related expenses, professional fees, and abandoned acquisition costs.
During the quarter and nine months ended August 31, 2000 an income tax benefit of $205,000 was recorded relating to an income tax refund which resulted from a tax loss carryback.
CALTON, INC. (AMEX:CN)
Quarter ended August 31,
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2000 1999
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Income (loss) from
continuing operations $ (1,349,000) $ 178,000
Loss from discontinued
operations, net of a benefit
for income taxes of
$63,000 in 1999 -- (100,000)
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Net income (loss) $ (1,349,000) $ 78,000
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Earnings (loss) per share(1)
Basic:
Income (loss) from
continuing operations $ (0.32) $ 0.04
Loss from discontinued
operations, net -- (0.02)
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Net income (loss) $ (0.32) $ 0.02
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Diluted:
Income (loss) from
continuing operations $ (0.32) $ 0.04
Loss from discontinued
operations, net -- (0.02)
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Net income (loss) $ (0.32) $ 0.02
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Weighted average number
of shares outstanding
Basic 4,261,000 4,359,000
Diluted 4,261,000 4,542,000
Nine months ended August 31,
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2000 1999
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Income (loss) from
continuing operations $ (3,090,000) $ 622,000
Loss from discontinued
operations, net of a benefit
for income taxes of
$255,000 in 1999 -- (387,000)
Gain from sale of Calton
Homes, Inc. net of a provision
in lieu of taxes of $3,037,000 -- 4,554,000
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Net income (loss) $ (3,090,000) $ 4,789,000
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Earnings (loss) per share(1)
Basic:
Income (loss) from continuing
operations $ (0.72) $ 0.13
Loss from discontinued
operations, net -- (0.08)
Gain from sale of Calton
Homes, Inc., net -- 0.98
============ =============
Net income (loss) $ (0.72) $ 1.03
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Diluted:
Income (loss) from continuing
operations $ (0.72) $ 0.13
Loss from discontinued
operations, net -- (0.08)
Gain from sale of Calton
Homes, Inc., net -- 0.94
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Net income (loss) $ (0.72) $ 0.99
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Weighted average number of
shares outstanding
Basic 4,299,000 4,625,000
Diluted 4,299,000 4,863,000
(1) 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.