Carey International Reports Q3 Results
6 October 1998
Carey International Posts 84% Net Income Increase on 32% Revenue Growth - Operating Income Increases 58% - - Completes Acquisition of American Limousine -
WASHINGTON, Oct. 6 -- Carey International, Inc.
today reported record results for the third quarter and nine
months ended August 31, 1998.
Third quarter net income increased 84% to $2.2 million, or $0.22 per
diluted share, from adjusted net income of $1.2 million, or $0.15 per
diluted share, in the 1997 third quarter. Third quarter operating income
increased 58% to $3.2 million from $2.0 million in 1997 as the Company
continued to effectively leverage its infrastructure costs. Selling,
general and administrative expenses as a percentage of sales were reduced
160 basis points for the period.
Revenues for the third quarter increased 32% to $30.3 million from
$23.0 million in the 1997 third quarter. The Company's strong top-line
performance in the third quarter was attributable to internal growth of
17% with the balance from acquired operations. Including the third
quarter performance, internal growth for the nine months ended
August 31, 1998 was approximately 18%.
For the nine months ended August 31, 1998, adjusted net income
increased 57% to $5.0 million, or $0.56 per diluted share, compared to
$3.2 million, or $0.41 per adjusted diluted share, in the prior-year period.
Operating income increased to $8.0 million in 1998 from $4.9 million in
1997. Revenues for the nine-month period rose 48% to $84.8 million from
$57.2 million. Results for the 1997 period are adjusted for the May 1997
initial public offering and its corresponding recapitalization.
Vincent A. Wolfington, Chairman and CEO of Carey
International, said, "We continued to build our business with another
positive quarter of earnings and revenue growth based on our ability to
add revenue, control costs and leverage our existing infrastructure. The
recently completed quarter was the sixth consecutive quarter since the
initial public offering in which we generated double-digit internal growth
and improved pre-tax margins. Since the IPO, we have also completed
10 acquisitions."
The Company also announced today that it has completed its previously
announced acquisition of American Limousine of Chicago. American
Limousine generated 1997 sales of approximately $20 million.
"With the closing of our acquisition of American Limousine, we have
made another strong addition to the Carey team while improving our presence
in the key Chicago market," commented Mr. Wolfington. "George Jacobs, the
president and owner of American Limousine, will be instrumental in working
with Carey management to build upon the acquisition momentum we have
established and develop our presence in Chicago and other domestic markets.
With a strong cash and working capital position, and with our access to
substantial credit facilities, we are in an excellent position to continue
our strategic growth while maximizing the potential of our current business."
Carey International is the world's largest chauffeured vehicle
service company. The Company provides limousine, sedan, van and minibus
service through a worldwide network of owned and operated companies,
licensees and affiliates serving 420 cities in 65 countries.
Certain matters discussed in this press release may constitute
forward-looking statements within the meaning of the federal securities
laws. Actual results and the timing of certain events could differ
materially from those projected in or contemplated by the forward-looking
statements due to a number of factors, including changes in the securities or
financial markets or in general economic conditions, the complexities in
completing and integrating acquisitions, availability of equity and debt
financing and other risks detailed from time to time in the Company's
filings with the Securities and Exchange Commission. Reference is hereby
made to the "Risk Factors" set forth in the Company's Registration
Statement on Form S-4 (file no. 333-59599).
CAREY INTERNATIONAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(Unaudited)
Three months ended Nine months ended
August 31, August 31,
1998 1997 1998 1997
Revenue, net $ 30,347 $ 22,932 $ 84,797 $ 57,217
Cost of revenue 20,301 15,358 57,160 38,022
Gross profit 10,046 7,574 27,637 19,195
Selling, general
and administrative
expense 6,860 5,552 19,628 14,272
Operating
income 3,186 2,022 8,009 4,923
Other income (expense):
Interest
expense (84) (170) (328) (1,021)
Interest income 452 111 631 170
Gain on sale of
fixed assets 142 39 221 179
Income before
provision
for income
taxes 3,696 2,002 8,533 4,251
Provision for
income taxes 1,510 822 3,541 1,697
Net income $ 2,186 $ 1,180 $ 4,992 $ 2,554
Diluted net income
per common share $ 0.22 $ 0.56
Weighted average
common shares
outstanding
(diluted) 9,949 8,895
Pro forma net income per
common share (diluted)
(Note 1) $ 0.15 $ 0.50
Pro forma weighted average
common shares
outstanding (diluted) 7,910 5,475
Adjusted for Recapitalization
and IPO (Note 2):
Net income $ 2,186 $ 1,189 $ 5,011 $ 3,199
Net income per
common share
(diluted) $ 0.22 $ 0.15 $ 0.56 $ 0.41
Weighted average
common shares
outstanding
(diluted) 9,949 7,929 8,895 7,728
Note 1: Shows the pro forma effect for conversion of subordinated
debt and preferred stock to common shares under the
Recapitalization Plan.
Note 2: The nine-month 1997 information has been adjusted for the effect
of the Recapitalization Plan and initial public offering as if
they had occurred at the beginning of the reporting period. The
1997 information has also been adjusted for $9,000 in pooling
expenses in the 3rd quarter of 1997 relating to a
pooling-of-interests transaction at October 31, 1997. 1998
information has been adjusted for $34,000 in pooling expenses in
the 1st quarter of 1998 related to the same pooling-of-interests
transaction at October 31, 1997.