VERO BEACH, Fla., Oct. 15, 2002 (PRIMEZONE) -- Calton, Inc. (AMEX:CN) announced today results for the third quarter ended August 31, 2002.
Anthony J. Caldarone, Chairman and Chief Executive Officer, announced a net loss of $759,000 ($.17 per basic and diluted share) for the three months ended August 31, 2002, compared to a net loss of $1,463,000 ($.33 per basic and diluted share) for the three months ended August 31, 2001. Mr. Caldarone also announced a net loss of $4,764,000 ($1.06 per basic and diluted share) for the nine months ended August 31, 2002 compared to a net loss of $3,668,000 ($.89 per basic and diluted share) for the nine months ended August 31, 2001. The current year results include a $541,000 loss on the sale of the Company's 51% interest in Innovation Growth Partners, which transpired on April 23, 2002.
Revenues for the three months ended August 31, 2002 and August 31, 2001 were $441,000 and $1,268,000, respectively, as compared to $1,569,000 and $4,188,000 for the nine months ended August 31, 2002 and August 31, 2001, respectively. The primary reasons for the decline in revenues in 2002, for both the quarter and nine months, were: (i) the expiration of the consulting agreement with the purchaser of Calton Homes in December 2001; (ii) the decline in demand for technical staffing in the Houston market as a result of recent mergers and subsequent layoffs of talented professionals; and (iii) a significant one-time project in the website development division completed in 2001.
Selling, general and administrative expenses for the three months ended August 31, 2002 and August 31, 2001 were $958,000 and $2,075,000, respectively. Selling, general and administrative expenses for the nine months ended August 31, 2002 and August 31, 2001 were $3,500,000 and $5,990,000, respectively. The decrease in both the quarter and nine months is primarily attributable to significant downsizing of operations at both the PrivilegeONE and website development subsidiaries.
Interest income for the three months ended August 31, 2002 and August 31, 2001 was $28,000 and $229,000, respectively. Interest income for the nine months ended August 31, 2002 and August 31, 2001 was $108,000 and $1,003,000, respectively. The decline in interest income is due to the significant reduction in cash balances. During the quarter ended August 31, 2001, the Company paid a special dividend in the amount of $22,375,000 to its shareholders.
The impairment of a note receivable in the amount of $750,000 was incurred in the nine months ended August 31, 2002, without a similar charge in the prior year.
Results for the three months and nine months ended August 31, 2001 have been restated to treat Innovation Growth Partners as a discontinued operation.
Calton, Inc. (AMEX:CN) Three Months Ended August 31,
2002 2001
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Restated
Revenue $ 441,000 $ 1,268,000
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Net Loss $ (759,000) $(1,463,000)
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Loss Per Share
Loss from continuing operations $ (0.17) $ (0.27)
Loss from discontinued component $ -- $ (0.06)
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Net Loss Per Common Share $ (0.17) $ (0.33)
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Weighted Average Number of Shares
Outstanding, Basic and Diluted 4,507,000 4,396,000
Nine Months Ended August 31,
2002 2001
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Restated
Revenue $ 1,569,000 $ 4,188,000
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Net Loss $(4,764,000) $(3,668,000)
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Loss Per Share
Loss from continuing operations $ (0.72) $ (0.65)
Loss from discontinued component $ (0.34) $ (0.24)
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Net Loss Per Common Share $ (1.06) $ (0.89)
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Weighted Average Number of Shares
Outstanding, Basic and Diluted 4,474,000 4,245,000
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, 2001.