RED BANK, N.J., Feb. 23, 2001 (PRIMEZONE) -- Calton, Inc. (AMEX:CN) announced today results for the fourth quarter and fiscal year ended November 30, 2000.
Fourth Quarter Results
For the quarter ended November 30, 2000, the Company reported a net loss of $2.8 million ($.65 per basic and diluted share) compared to net income of $50,000 ($.00 per basic and diluted share) for the quarter ended November 30, 1999. Revenues increased approximately 130% to $1.3 million for the fourth quarter of fiscal 2000 compared to $550,000 for the same period last year.
During the fourth quarter 2000, the Company reported a $990,000 loss on securities primarily attributable to its investment in CorVu Corporation. In addition, the Company charged to operations the unamortized balance of goodwill associated with the acquisitions of eCalton and PrivilegeONE in the amount of $324,000.
Fiscal 2000 Performance
For the fiscal year ended November 30, 2000, the Company announced a net loss of $5.9 million ($1.38 per basic and diluted share) compared to net income of $4.8 million ($1.07 per basic share and $1.01 per diluted share) for the fiscal year ended November 30, 1999. Fiscal 1999's per share numbers have been restated to show the effect of the recapitalization of the Company. Included in fiscal 1999's results is aggregate net income of $4.4 million from the sale of Calton Homes that includes a provision in lieu of taxes of $3.2 million.
Revenues increased over 150% to $3.5 million in fiscal 2000 versus $1.4 million in fiscal 1999. Revenues were primarily derived from eCalton, our wholly owned Internet business solutions provider and a consulting agreement with the purchaser of Calton Homes. Loss from continuing operations for the year ended November 30, 2000 was $5.2 million ($1.21 per basic and diluted share) compared to income of $661,000 ($.15 per basic and $.14 per diluted share) for the prior fiscal year.
The Company's cash balance was $32.2 million at November 30, 2000 compared to $33.8 million at November 30, 1999. Calton, Inc. has no outstanding debt.
Fiscal 2000 Highlights
-- Acquired a controlling interest in PrivilegeONE Networks, Inc.
- a newly formed company engaged in the development of a
co-branded loyalty credit card program related to the automotive
industry.
-- Acquired a controlling interest in Innovation Technology Partners
- a newly formed company located in Houston, Texas, established to
provide management and consulting services to entrepreneurial and
development stage companies.
-- Expanded eCalton's operations to include Houston, Texas. This
division provides the placement of information technology
consultants specializing in network design and management and
technology transition.
-- Effected a recapitalization of the Company's capital structure.
-- Repurchased 235,000 shares of Calton, Inc. common stock at an
average price of $4.43 per share.
-- Appointed a new member to the Board of Directors -- Gerald R.
Stanley
Management Comments
"In fiscal 2000 we made investments in two newly formed companies," says Anthony J. Caldarone, Chairman, President and Chief Executive Officer of the Company. "Due to the start-up nature of these ventures, we incurred significant expenses during the year. These businesses have undergone operational changes and have modified their business strategies in each of their marketplaces." In addition, Mr. Caldarone states, "Our cash balance is still strong at $32.2 million, a less than 5% decrease from last year, even after making significant investments in all of our ventures."
"Believing our Company is currently undervalued in the marketplace, we are continuing to buy back our stock in an effort to enhance shareholder value," says Mr. Caldarone.
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.
Fiscal Year: Fiscal Year Ended November 30,
-----------------------------
2000 1999
-----------------------------
Revenues $ 3,534,000 $ 1,351,000
Income (loss) from
continuing operations (5,158,000) 661,000
Loss from discontinued
operations (84,000) (240,000)
Gain (loss) on sale of
Calton Homes, Inc. (654,000) 4,418,000
Net income (loss) (5,896,000) 4,839,000
Earnings (loss) per share
Basic:
Income (loss) from
continuing operations $ (1.21) $ 0.15
Loss from discontinued
operations (0.02) (0.05)
Gain (loss) from sale
of Calton Homes, Inc. (0.15) 0.97
------------ ------------
Net income (loss) $ (1.38) $ 1.07
============ ============
Diluted:
Income (loss) from
continuing operations $ (1.21) $ 0.14
Loss from discontinued
operations (0.02) (0.05)
Gain (loss) from sale
of Calton Homes, Inc. (0.15) 0.92
------------ ------------
Net income (loss) $ (1.38) $ 1.01
============ ============
Weighted average number of
shares outstanding
Basic 4,276,000 4,554,000
Diluted 4,276,000 4,799,000
4th Quarter: Three Months Ended November 30,
------------------------------
2000 1999
------------------------------
Revenues $ 1,261,000 $ 550,000
Income (loss) from
continuing operations (2,068,000) 39,000
Income (loss) from
discontinued operations (84,000) 147,000
Loss on sale
of Calton Homes, Inc. (654,000) (136,000)
Net income (loss) (2,806,000) 50,000
Earnings (loss) per share
Basic:
Income (loss) from
continuing operations $ (0.48) $ --
Income (loss) from
discontinued operations (0.02) 0.03
Loss from sale of
Calton Homes, Inc. (0.15) (0.03)
Net income (loss) $ (0.65) $ 0.00
Diluted:
Income (loss) from
continuing operations $ (0.48) $ --
Income (loss) from
discontinued operations (0.02) 0.03
Loss from sale of
Calton Homes, Inc. (0.15) (0.03)
----------- ----------
Net income (loss) $ (0.65) $ 0.00
=========== ===========
Weighted average number
of shares outstanding
Basic 4,290,000 4,339,000
Diluted 4,290,000 4,521,200