Carey International Posts 53% Net Income Increase on 47% Revenue Growth
29 June 1999
Carey International Posts 53% Net Income Increase on 47% Revenue Growth
Earnings Per Share Increase 32%
WASHINGTON, June 29 -- Carey International, Inc.
today reported record results for the second quarter ended
May 31, 1999.
Second quarter net income increased 53% to $2.9 million, or $0.29 per
diluted share, from net income of $1.9 million, or $0.22 per diluted
share, in the 1998 second quarter. Second quarter operating income increased
59% to $5.1 million from $3.2 million in 1998 as the Company continued
its strategy of effectively leveraging infrastructure costs.
Revenues for the 1999 second quarter increased 47% to $45.2 million
from $30.8 million in the prior-year period. The Company's strong top-line
performance in the second quarter was attributable to internal growth of 12%
and the increase in revenue for the quarter as a result of acquired
operations.
For the six months ended May 31, 1999, net income increased 62% to
$4.5 million, or $0.45 per diluted share, compared to $2.8 million, or $0.34
per diluted share, in 1998. Operating income increased 64% to $7.9 million in
1999 from $4.8 million in 1998. Revenues for the six-month period rose 50% to
$81.7 million from $54.5 million.
Vincent A. Wolfington, Chairman and CEO of Carey International, said,
"The Company maintained its trend of double digit internal growth in the
second quarter and once again exceeded the prior year's quarterly revenues
and earnings. Our sales and marketing programs coupled with our diverse
customer base and worldwide brand recognition continue to generate strong
growth in all principal business sectors and add to overall shareholder
value."
Mr. Wolfington continued, "With our acquisition of Classic
Limousine of Stamford, Connecticut, earlier this month, we took another
important step toward our goal of achieving a prevailing position in
the key business travel markets in the U.S. and Europe. Our continued
ability to capitalize on growth opportunities through strategic acquisitions
and market development strengthens our position as the leader in the
worldwide chauffeured transportation services industry."
Carey International is the world's largest chauffeured vehicle services
company. The company provides chauffeured sedan, limousine, van and minibus
services through a worldwide network of owned and operated companies,
licensees, and affiliates serving 420 cities in 65 countries.
The information set forth above contains forward-looking statements,
which involves risks and uncertainties. The Company's actual results could
differ materially from the results anticipated in these forward-looking
statements. Readers should refer to discussion under "Risk Factors"
contained in the Company's Registration Statement on Form S-1 (No. 333-59599)
filed with the Securities and Exchange Commission, which is incorporated
herein by reference, concerning certain factors which could cause the
Company's actual results to differ materially from the results
anticipated in the forward-looking statements contained herein.
CAREY INTERNATIONAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(Unaudited)
Three months ended Six months ended
May 31, May 31,
1999 1998 1999 1998
Revenue, net $45,215 $30,800 $81,654 $54,451
Cost of revenue 29,817 20,683 54,220 36,859
Gross profit 15,398 10,117 27,434 17,592
Selling, general and
administrative
expense 10,304 6,920 19,536 12,769
Operating income 5,094 3,197 7,898 4,823
Other income (expense):
Interest expense, net (207) (129) (313) (244)
Interest income 87 124 203 179
Gain (loss) on sale
of fixed assets (4) 47 28 79
Income before provision
for income taxes 4,970 3,239 7,816 4,837
Provision for income
taxes 2,090 1,351 3,283 2,032
Net income $2,880 $1,888 $4,533 $2,805
Net income per
common share
(diluted) $0.29 $0.22 $0.45 $0.34
Weighted average
common shares
outstanding
(diluted) 10,001 8,598 9,974 8,360
SOURCE Carey International, Inc.