latest news releases from the newsroom
KL Holding Company, N.V.
KL Holding Company, N.V. Wins Auction to Acquire Aruba Resort and Casino
LAS VEGAS, July 26, 2007 (PRIME NEWSWIRE) -- KL Holding Company, N.V., a closely held international resort and casino development company, has won an auction to acquire substantially all of the outstanding assets of Playa Blanca, N.V. ("Playa Blanca"), the owner of the La Cabana Villas Timeshare Resort and the Royal Cabana Casino complex ("La Cabana") located on Eagle Beach in Aruba. The auction was conducted in Aruba.
Gateway Financial Holdings, Inc.
Gateway Financial Holdings Reports 2nd Quarter 2007 Net Income of $2.0 Million, Up $1.2 Million Over 2006
VIRGINIA BEACH, Va., July 26, 2007 (PRIME NEWSWIRE) -- Gateway Financial Holdings, Inc. (Nasdaq:GBTS), the holding company for Gateway Bank & Trust Co., reported net income for the second quarter of 2007 of $2.0 million compared with $864,000 for the prior year second quarter, an increase of $1.2 million. The results of operations for both the second quarter and first half of 2007 include those of The Bank of Richmond from the date of the acquisition. Earnings performance was driven by exceptional revenue growth from a 58.9% increase in loans over the past 12 months resulting from the Company's expanding network of financial centers and the recently completed acquisition of The Bank of Richmond, and increased revenues from Gateway's non-banking activities. Effective June 1, Gateway Bank & Trust Co. completed its acquisition of The Bank of Richmond, through which Gateway acquired $197.3 million of assets, including $167.4 million of loans and $177.6 million of deposits. Diluted earnings per share were $0.17 for the second quarter of 2007 compared with $0.08 for the second quarter of the prior year. Per share results reflect the issuance of approximately 1.85 million shares and the assumption of approximately 375,000 stock options on June 1, 2007 for the acquisition of The Bank of Richmond, which was the primary reason for the increase in the weighted average diluted shares from 11,131,691 shares for the second quarter of 2006 to 11,950,358 shares for the second quarter of 2007, an increase of 7.4%. The second quarter results in both years were negatively affected by a loss on the market value and net cash settlement on its economic hedge of $948,000 and $1.2 million in 2007 and 2006, respectively. The loss from the economic hedge has been reported as a component of non-interest income in accordance with GAAP. Diluted earnings per share, excluding the loss on the market value and net cash settlement on the economic hedge of $592,000 in the second quarter of 2007, and $749,000 in the second quarter of 2006 (net of income taxes using a 37.5% blended rate), were $0.22 and $0.14 per share, respectively, an increase of 57.1%. Due to the volatility and lack of earnings comparability caused by the economic hedge, management believes presentation of an adjusted, non-GAAP, diluted earnings per share provides useful information to investors.