Oakhurst Company Announces Second Quarter Results
17 October 2000
Oakhurst Company Announces Second Quarter Results
WILMINGTON, Del.--Oct. 16, 2000--Oakhurst Company, Inc. (OTCBB:OAKC) today announced operating results for the second quarter ended August 31, 2000.The Company's automotive business reflected an improvement in operating profits of approximately $217,000 for the second quarter and $300,000 for the first six months compared with the same periods in the prior year, principally due to higher gross margins.
A loss was incurred at the Company's Oakhurst Technology ("OTI") subsidiary, principally related to start-up losses of OTI's investment in New Heights Recovery and Power, LLC ("New Heights") and to increased interest expense on the funding related to the New Heights investment.
During the second quarter New Heights extended its tire collection and processing capabilities, including regional collection agreements with Wal-Mart and Goodyear, and with Firestone for the collection of approximately one million recalled tires. During the quarter, however, processing delays occurred while the crumb rubber system was modified to handle a larger volume of tires. Phase II of the New Heights Business Plan includes the permitting and start-up of waste to energy operations. The permits were obtained in February 2000, a power supply agreement was entered into with a local utility for the summer of 2000, and in early July the New Heights generator began production of power from burning waste tires. During the second quarter final retrofitting of the boiler and generator was completed, so that the plant's nameplate capacity of 22 megawatts is now being achieved. While discussions continue with the local utility for a long-term supply agreement, the summer contract has been extended on a short-term basis. With completion of Phase II of the Business Plan, it is anticipated that operations will turn profitable.
OAKHURST COMPANY, INC. & SUBSIDIARIES
CONDENSED CONSOLIDATED RESULTS OF OPERATIONS
(dollar amounts in thousands, except per share data)
(Unaudited)
Three months Three months Six months Six months
ended ended ended ended
August 31, August 31, August 31, August 31,
2000 1999 2000 1999
---- ---- ---- ----
Revenues $ 5,547 $ 5,438 $ 11,336 $ 11,095
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Loss before loss on
equity investment
and income taxes (380) (227) (777) (322)
Loss from equity
investment (667) (382) (1,377) (628)
Income tax expense (1) -- (2) (2)
----------- ----------- ----------- -----------
Loss from
continuing
operations (1,047) (609) (2,156) (952)
Income (loss) from
discontinued
operations -- 38 -- (172)
----------- ------------ ----------- -----------
Net loss $ (1,047) $ (571) $ (2,156) $ (1,124)
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Basic and diluted
net (loss) income
per share:
Continuing
operations (0.21) (0.12) (0.44) (0.19)
Discontinued
operations -- 0.01 -- (0.03)
----------- ----------- ----------- -----------
Basic and diluted
net loss per share $ (0.21) $ (0.11) $ (0.44) $ (0.22)
=========== =========== =========== ===========
Weighted average
number of shares
outstanding used
in computing per
share amounts 4,943,018 4,943,018 4,943,018 4,943,018
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