Excal Enterprises Reports Improved Second Quarter Pretax Income
12 November 1999
Excal Enterprises Reports Improved Second Quarter Pretax Income
TAMPA, Fla., Nov. 12 -- Excal Enterprises, Inc.
(OTC Bulletin Board: EXCL) today reported income before income taxes of
$92,199 for the second fiscal quarter ended September 30, 1999 compared with a
pretax loss of $99,034 for the corresponding three months last year. The
second quarter net loss of $88,801, equal to two cents per share, reflects
strong income from real estate operations which could not be offset for tax
purposes by losses in the sports licensing business under current accounting
regulations. In the second quarter last year, the company reported a net loss
of $62,034, or two cents per share. Second quarter revenues were $2,158,801
versus $1,170,829 a year ago.
For the six months ended September 30, 1999, the net loss amounted to
$129,395 or three cents per share compared with a net loss of $53,702, or one
cent per share in the corresponding period a year ago. Revenues were
$3,661,736 versus $2,319,705 a year ago.
W. Carey Webb, Excal's president and chief executive officer, said,
"Continued investment in key personnel and new marketing initiatives aimed at
increasing future sales for Roxbury Industries Corp.'s sports licensing
products was the primary factor behind our loss. While sales are down
12 percent compared with last year, the addition of a seasoned new vice
president of marketing with extensive professional experience in Roxbury's
industry and new programs aimed at opening new distribution channels for both
our personalized product line and mass merchandise products are expected to
improve the revenue of this business."
He added that Excal's other primary business, commercial real estate,
continued to perform consistently, with net revenue increasing 17 percent to
$1,364,486 from $1,170,829 in the second quarter of last year. "Imeson Center
continues to provide the financial foundation for our expansion into new
markets," said Mr. Webb. "We are continuing these efforts to expand our
revenue base by actively evaluating additional potential acquisition
candidates, and remain confident that this strategy represents the most
effective way to increase the long-term value of our company and of our
shareholders' investments."
Excal's operations currently fall into two distinct businesses: the
manufacture and distribution of sports licensing products and the rental of
commercial real estate. In December 1998, the company acquired Roxbury
Industries Corp., which produces and distributes knit products licensed to
include the logos of most college and major professional sports teams. The
company owns, leases and manages a two-story warehouse and office facility
containing approximately 1,666,000 square feet of rentable space located on
approximately 74 acres in an industrial park in Duval County, Florida.
This news release contains forward-looking statements related to future
growth and earnings opportunities. Such statements are based upon certain
assumptions and assessments made by management of the company in light of its
experience and perception of historical trends, current conditions, expected
future developments and other factors it believes to be appropriate. Actual
results may differ as a result of factors over which the company has no
control including the strength of the economy, slower than anticipated sales
growth, and price and product competition. More detailed statements regarding
significant events which could affect the company's financial results are
included in the company's Form 10-K filed with the Securities and Exchange
Commission.
Excal Enterprises, Inc.
Consolidated Statements of Operations (Unaudited)
Three Months Ended Six Months Ended
September 30, September 30,
1999 1998 1999 1998
Net revenue $2,158,801 $1,170,829 $3,661,736 $2,319,705
Net operating profit 329,947 349,148 472,096 562,617
Other expense-net 237,748 448,182 446,491 642,319
Income (loss) before
income taxes 92,199 (99,034) 25,605 (79,702)
Income tax provision
(benefit) 181,000 (37,000) 155,000 (26,000)
Net loss $(88,801) $(62,034) $(129,395) $(53,702)
Loss per share:
Basic $(.02) $(.02) $(.03) $(.01)
Diluted $(.02) $(.02) $(.03) $(.01)
Weighted average
shares outstanding:
Common 4,301,639 3,944,748 4,281,994 3,942,394
Common and
equivalent 4,301,639 3,944,748 4,281,994 3,942,394