Carey International Announces Record 4Q and Year-End Results
19 January 1999
Carey International Announces Record Fourth Quarter and Year-End Results
- Quarterly Net Income Increases 63% on 32% Rise in Revenues -
- Establishes $75 Million Unsecured Credit Facility -
WASHINGTON, Jan. 19 -- Carey International, Inc.
today reported record results for the fourth quarter and year
ended November 30, 1998.
Fourth quarter net income increased 63% to $3.4 million, or $0.34 per
diluted share, from adjusted net income of $2.1 million, or $0.26 per diluted
share, in the 1997 fourth quarter. Revenues for the 1998 fourth quarter were
$38.4 million, a 32% increase from the $29.2 million in the prior-year
period. Fourth quarter operating income increased 61% to $5.6 million from
$3.5 million in 1997.
For the year ended November 30, 1998, adjusted net income increased 60% to
$8.4 million, or $0.92 per diluted share, compared to adjusted net income of
$5.2 million, or $0.67 per diluted share in fiscal 1997. Annual revenues rose
43% to $123.2 million from $86.4 million. Operating income increased
62% to $13.6 million from $8.4 million in 1997.
Vincent A. Wolfington, Chairman and CEO of Carey International, said, "We
concluded 1998 by posting record results for the fourth quarter. For the
second year, we substantially improved our performance by generating internal
growth of 16% and following our three-pronged strategy of aggressive marketing
and sales programs, strategic acquisitions, and enhanced operating margins.
We secured 248 new accounts including an expanded three-year preferred
agreement with American Express. The Company acquired $38 million of
annualized run-rate revenues, entering the vibrant Chicago market through the
acquisition of American Limousine and our licensee. We also established a
strong presence in Boston through the acquisition of our licensee and two
additional companies. Year-over-year, we successfully increased our operating
margin 130 basis points by leveraging our infrastructure."
Separately, the Company announced that it has replaced its existing
$25 million secured credit facility with a $75 million unsecured credit
facility at a lower interest rate, availability under which is subject to
certain conditions.
Mr. Wolfington commented, "We continue to maintain a strong cash and
working capital position. With these capital resources, we expect to
accelerate our acquisition program in fiscal 1999. On January 14th, we
announced the acquisition of East Coast Transportation, Inc. of Jacksonville,
Florida which operates in one of the fastest growing metropolitan areas in the
country. We look forward to entering additional new markets during the year
while bolstering our presence in existing markets."
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 Twelve months ended
November 30, November 30,
1998 1997 1998 1997
Revenue, net $38,421 $29,161 $123,218 $86,378
Cost of revenue 24,813 19,868 81,973 57,890
Gross profit 13,608 9,293 41,245 28,488
Selling, general and
administrative expense 8,050 5,840 27,678 20,112
Operating income 5,558 3,453 13,567 8,376
Other income (expense):
Interest income (expense), net 171 (58) 474 (910)
Gain on sale of fixed assets 32 40 252 220
Income before provision
for income taxes 5,761 3,435 14,293 7,686
Provision for income taxes 2,400 1,465 5,941 3,163
Net income $3,361 $1,970 $ 8,352 $4,523
Diluted net income per common share
(Note 1) $0.34 $0.25 $0.92 $0.76
Weighted average common shares
outstanding (diluted) (Note 1) 9,845 8,001 9,094 6,188
Adjusted for Recapitalization
and IPO (Note 2):
Net income $3,361 $2,062 $8,371 $5,242
Diluted net income per
common share $0.34 $0.26 $0.92 $0.67
Weighted average common shares
outstanding (diluted) 9,845 8,001 9,094 7,797
Note 1: The 1997 earnings per share information has been adjusted for the
effect of the conversion of subordinated debt and preferred
stock to common stock under the Recapitalization Plan.
Note 2: The twelve-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.
1997 information has been adjusted for $160,000 and $169,000 in
pooling expenses in the 4th quarter of 1997 and the twelve months
ended November 30, 1997, respectively, related 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.