Dawson Science Corp. Reports First Quarter Results
10 June 1998
Dawson Science Corp. Reports First Quarter Results
NEW YORK, June 10 -- Dawson Science Corp.
(OTC Bulletin Board: DWSC) today reported its results of operations for the
first quarter period ended March 31, 1998.
For the quarter ended March 31, 1998, the company reported consolidated
net revenue of $5,161,000, an increase of 122.8%, from net consolidated
revenues of $2,316,000 for the same period in 1997. The company reported net
income for the period of $2,313,000, an increase of 114% from net income of
$1,080,000 for the same period in 1997.
Chairman of Dawson Science Corp., Wu Zhi Jian, stated, "The results of the
first quarter reflect our company's ability to execute and move quickly into
the burgeoning transportation sector."
Mr. Wu continued, "This market is just beginning to develop and we are
concentrating an increasing amount of resources and capital on the rental
business. The company has increased its rental fleet from 570 automobiles as
of December 31, 1997 to 1,218 automobiles as of March 31, 1998. As of March
31, 1998, the company had a total of 728 taxis in addition to its car rental
operation. The company's rental operations accounted for 74.1%, or
$2,007,000, of the total income before provision for income tax and minority
interest of $2,707,000. The company expects to continue to broaden its rental
business to meet the strong demand through the expansion of its operating
fleet and through selective acquisitions in other cities."
All of the company's operations are located in China. They are comprised
principally of the rental, taxi and automobile repair businesses. The
automobile rental business began in August 1997. The company also is
developing a hotel in a resort town in Hunan Province, which is scheduled to
commence operations in early 1999.
Financial Results of Dawson Science Corp.
Summary Financial Information - Consolidated Statements of Operations
(in thousands and in US dollars)
Three Months Ended March 31
unaudited
1998 % of Net 1997 % of
Revenue Net
Revenue
Operating revenues $5,161 100% $2,316 100%
Operating expenses
Depreciation of revenue
earning equipment 898 -- 444 --
Amortization of taxi
licenses 67 -- 59 --
Other operating expenses 1,237 -- 479 --
Interest expense, net of
interest income 252 -- 114 --
Total expenses 2,454 47.5% 1,096 47.3%
Income before provision for
income tax and minority
interest 2,707 52.5% 1,220 52.7%
Provision for income tax 201 -- 101 --
Income before minority
interest 2,506 48.6% 1,119 48.3%
Minority interest 193 -- 39 --
Net income 2,313 44.8% 1,080 46.6%
Other comprehensive income
net of tax - foreign
currency translation
adjustments 2 -- -- --
Comprehensive income 2,315 -- 1,080 --
Balance Sheet Data 12-31-97
Total Assets $55,954
Total Liabilities 24,206
Shareholders Equity 30,181
This press release contains certain forward-looking information that is
subject to certain risks and uncertainties that could cause actual results to
differ materially from those projected. Without limitation, these risks and
uncertainties include economic recessions or downturns in customers' business
cycles, rapid market fluctuations. Readers are urged to carefully review and
consider the various disclosures made by the Company in this press release and
in the Company's periodic reports.