Carey International Posts 61% Revenue Growth
29 September 1999
Carey International Posts 61% Revenue Growth
- Increases Operating Income 54% -
- Expands Service Network to 480 Cities in 75 Countries -
WASHINGTON, Sept. 29 -- Carey International, Inc.
today reported record results for the third quarter ended
August 31, 1999.
Third quarter net income increased 24% to $2.7 million, or $0.27 per
diluted share, from net income of $2.2 million, or $0.22 per diluted share in
the 1998 third quarter. Third quarter operating income increased 54% to
$4.9 million from $3.2 million in 1998 as the Company continued its strategy
of effectively leveraging infrastructure costs.
Revenues for the 1999 third quarter increased 61% to $48.8 million from
$30.3 million in the prior-year period. The Company's strong top-line
performance in the third quarter was attributable to internal growth of 15%
and the effect on the quarter of acquired operations.
For the nine months ended August 31, 1999, net income increased 44% to
$7.2 million, or $0.72 per diluted share, compared to $5.0 million, or
$0.56 per diluted share in 1998. Operating income increased to $12.8 million
in 1999 from $8.0 million in 1998. Revenues for the nine-month period rose
54% to $130.4 million from $84.8 million.
Vincent A. Wolfington, Chairman and CEO of Carey International, said, "We
continued to increase shareholder value by fueling strong internal growth
through our sales and marketing programs and by leveraging our infrastructure.
As we more fully integrate acquired operations and continue to execute our
marketing and operating strategies, the Company will further strengthen its
position in the global transportation marketplace."
Mr. Wolfington continued, "With our recent platform acquisitions in
northern Chicago, the Northeast, and Europe, we have further positioned
ourselves to benefit from future tuck-in acquisitions in these key markets.
Moreover, our acquisitions in Paris will support the extension of our
successful sales and marketing efforts in London to the European continent,
solidifying our position as the dominant provider of chauffeured vehicle
services in the key business travel gateways in the U.S. and Europe."
The Company also announced that it has expanded its worldwide service
network to include 480 cities in 75 countries through the addition of
affiliates of acquisitions and as a result of its worldwide ground
transportation management agreement with Executive Jet Aviation, Inc.
Carey International is the world's largest chauffeured vehicle service
company. The Company provides chauffeured sedan, limousine, van, and minibus
service through a worldwide network of owned and operated companies,
licensees, and affiliates serving 480 cities in 75 countries.
The information set forth above contains forward-looking statements, which
involve 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 Nine months ended
August 31, August 31,
1999 1998 1999 1998
Revenue, net $ 48,776 $ 30,347 $ 130,431 $ 84,797
Cost of revenue 33,097 20,301 87,317 57,160
Gross profit 15,679 10,046 43,114 27,637
Selling, general and
administrative
expense 10,786 6,860 30,323 19,628
Operating income 4,893 3,186 12,791 8,009
Other income (expense):
Interest expense,
net (379) (84) (693) (328)
Interest income 103 452 306 631
Gain (loss) on
sale of
fixed assets 39 142 68 221
Income before
provision for
income taxes 4,656 3,696 12,472 8,533
Provision for income
taxes 1,955 1,510 5,238 3,541
Net income $ 2,701 $ 2,186 $ 7,234 $ 4,992
Net income per
common share
(diluted) $ 0.27 $ 0.22 $ 0.72 $ 0.56
Weighted average common shares
outstanding
(diluted) 10,145 9,949 10,035 8,895
Adjusted for Pooling Expenses (Note 1):
Net income $ 2,701 $ 2,186 $ 7,234 $ 5,011
Adjusted diluted
net income per
common share $ 0.27 $ 0.22 $ 0.72 $ 0.56
Weighted average common
shares outstanding -
diluted 10,145 9,949 10,035 8,895
Note 1: First quarter 1998 information has been adjusted for $34,000 in
pooling expenses related to a pooling-of-interests transaction on
October 31, 1997.