Press Release
August 15, 2000
FORT WORTH, TX -- Crescent Operating, Inc. (``Crescent Operating'' or the ``Company'') (OTCBB:COPI) yesterday announced
its operating results for the three month and six month periods ended June 30, 2000.
Crescent Operating's revenues for the six months ended June 30, 2000 were approximately $343.9 million, which represented
a 10.9% increase over revenues of approximately $310.1 million for the six months ended June 30, 1999. Net loss
for the six months ended June 30, 2000 was approximately ($5.4) million, or ($0.52) per share compared with net
income of approximately $3.6 million, or $0.32 per share (diluted) for the six months ended June 30, 1999.
Crescent Operating's revenues for the three months ended June 30, 2000 were approximately $176.4 million, which
represented a 1.7% increase over revenues of approximately $173.4 million for the three months ended June 30, 1999.
Net loss for the three months ended June 30, 2000 was approximately ($3.4) million, or ($0.33) per share compared
with net income of approximately $0.2 million, or $0.01 per share (diluted) for the three months ended June 30,
1999.
The Company's operating results for the three month and six month periods ended June 30, 2000 are not necessarily
indicative of the Company's expected results for the full year, due primarily to seasonality of certain of its
business segments. See Crescent Operating's quarterly report on Form 10-Q for a complete discussion of the Company's
financial results.
Crescent Operating is a diversified management company which through various subsidiaries and affiliates, owns,
leases or operates a portfolio of assets consisting primarily of seven full-service hotels and two destination
health and fitness resorts, its interest in CBHS, an interest in a temperature controlled logistics operating company,
an interest in three real estate development operations, and an equipment sales and leasing business.
Certain of the statements in this press release constitute forward-looking statements within the meaning of the
federal securities laws, including Section 27A of the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. Although Crescent Operating believes that the expectations reflected
in such forward-looking statements are based upon reasonable assumptions, Crescent Operating's actual results could
differ materially from those set forth in the forward-looking statements. Factors that could cause actual results
to differ materially from Crescent Operating's expectations include, among others, the ability of the Company's
segments to continue to achieve operating results at or above current levels and at a level sufficient to meet
current projections, Crescent Operating's ability to service existing debt and meet other operating expenses, the
availability of debt and equity financing, and the possibility that Crescent Operating's outstanding debt (some
of which requires so-called balloon payments of principal) may be refinanced at higher interest rates or otherwise
on terms less favorable to Crescent Operating, and other general risk factors. For a more complete discussion of
these and other risk factors, please see Crescent Operating's SEC reports, including its annual report on Form
10-K, quarterly reports on Form 10-Q, reports on Form 8-K, and the Company's Registration Statement on Form S-4.
For further information, please contact Rick Knight, Chief Financial Officer at 817/339-2212. Crescent Operating
is also online at www.crescentoperating.com.
CRESCENT OPERATING, INC.
SEGMENT FINANCIAL INFORMATION
FOR THE THREE MONTHS ENDED JUNE 30, 2000
(Amounts in thousands, except share data)
Equipment Temperature
Sales Controlled
and Leasing Hospitality Logistics
----------- ----------- -----------
Revenues $ 38,427 $ 66,429 $ --
Operating expenses 36,556 67,504 5
------- ------- --------
Income (loss) from operations 1,871 (1,075) (5)
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Investment income (loss) -- (1,930) (1,400)
------- ------- --------
Other (income) expense
Interest expense 2,755 216 --
Interest income (7) (49) --
Other 135 -- --
------- ------- --------
Total other (income) expense 2,883 167 --
Income (loss) before income
taxes and minority interests (1,012) (3,172) (1,405)
Income tax provision (benefit) (424) (1,270) (562)
------- ------- --------
Income (loss) before minority
interests (588) (1,902) (843)
Minority interests -- 1,212 --
------- ------- --------
Net income (loss) $ (588) $ (690) $ (843)
------- ------- --------
------- ------- --------
Net income (loss) per share, basic
and diluted $ (0.06) $ (0.06) $ (0.08)
------- ------- --------
------- ------- --------
EBITDA Calculation: (1)
Net income (loss) $ (588) $ (690) $ (843)
Interest expense, net 2,748 25 460
Income tax provision (benefit) (424) (461) (560)
Depreciation and amortization 4,056 294 805
------- ------- --------
EBITDA $ 5,792 $ (832) $ (138)
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Land
Development Other Total
------------ ------ ------
Revenues $ 71,541 $ -- $ 176,397
Operating expenses 65,763 987 170,815
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Income (loss) from operations 5,778 (987) 5,582
------- ------- --------
Investment income (loss) 4,583 -- 1,253
------- ------- --------
Other (income) expense
Interest expense 3,474 2,171 8,616
Interest income (879) (86) (1,021)
Other (211) -- (76)
------- ------- --------
Total other (income) expense 2,384 2,085 7,519
------- ------- --------
Income (loss) before income
taxes and minority interests 7,977 (3,072) (684)
Income tax provision (benefit) 3,258 (1,228) (226)
------- ------- --------
Income (loss) before minority
interests 4,719 (1,844) (458)
Minority interests (4,166) -- (2,954)
------- ------- --------
Net income (loss) $ 553 $ (1,844) $ (3,412)
------- ------- --------
------- ------- --------
Net income (loss) per share, basic
and diluted $ 0.05 $ (0.18) $ (0.33)
------- ------- --------
------- ------- --------
EBITDA Calculation: (1)
Net income (loss) $ 553 $ (1,844) $ (3,412)
Interest expense, net 138 2,085 5,456
Income tax provision (benefit) 410 (1,228) (2,263)
Depreciation and amortization 470 (18) 5,607
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EBITDA $ 1,571 $ (1,005) $ 5,388
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(1) EBITDA represents earnings before interest, income taxes,
depreciation and amortization. Amounts are calculated based on
the Company's ownership percentage of the EBITDA components.
Management believes that EBITDA can be a meaningful measure of
the Company's operating performance, cash generation and
ability to service debt. However, EBITDA should not be
considered as an alternative to either: (i) net earnings
(determined in accordance with GAAP); (ii) operating cash flow
(determined in accordance with GAAP); or (iii) liquidity.
There can be no assurance that the Company's calculation of
EBITDA is comparable to similarly titled items reported by
other companies.
CRESCENT OPERATING, INC.
SEGMENT FINANCIAL INFORMATION
FOR THE SIX MONTHS ENDED JUNE 30, 2000
(Amounts in thousands, except share data)
Equipment Temperature
Sales Controlled
and Leasing Hospitality Logistics
----------- ----------- ---------
Revenues $ 74,674 $ 138,639 $ --
Operating expenses 72,327 137,549 23
------- ------- --------
Income (loss) from operations 2,347 1,090 (23)
------- ------- --------
Investment income (loss) -- (404) (4,658)
------- ------- --------
Other (income) expense
Interest expense 5,133 444 --
Interest income (20) (73) --
Other 288 (4) --
------- ------- --------
Total other (income) expense 5,401 367 --
------- ------- --------
Income (loss) before income
taxes and minority interests (3,054) 319 (4,681)
Income tax provision (benefit) (1,282) 127 (1,872)
------- ------- --------
Income (loss) before minority
interests (1,772) 192 (2,809)
Minority interests -- 1,309 --
------- ------- --------
Net income (loss) $ (1,772) $ 1,501 $ (2,809)
------- ------- --------
------- ------- --------
Net income (loss) per share,
basic and diluted (0.17) $ 0.15 $ (0.27)
------- ------- --------
------- ------- --------
EBITDA Calculation: (1)
Net income (loss) $ (1,772) $ 1,501 $ (2,809)
Interest expense, net 5,113 68 570
Income tax provision (benefit) (1,282) 1,001 (1,866)
Depreciation and amortization 7,893 579 1,656
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EBITDA $ 9,952 $ 3,149 $ (2,449)
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------- ------- --------
Land
Development Other Total
----------- ------- ---------
Revenues $ 130,635 $ -- $ 343,948
Operating expenses 118,553 1,941 330,393
------- ------- --------
Income (loss) from operations 12,082 (1,941) 13,555
------- ------- --------
Investment income (loss) 11,820 -- 6,758
------- ------- --------
Other (income) expense
Interest expense 6,829 4,224 16,630
Interest income (1,616) (176) (1,885)
Other (272) 3 15
------- ------- --------
Total other (income) expense 4,941 4,051 14,760
------- ------- --------
Income (loss) before income
taxes and minority interests 18,961 (5,992) 5,553
Income tax provision (benefit) 6,686 (2,397) 1,262
------- ------- --------
Income (loss) before minority
interests 12,275 (3,595) 4,291
Minority interests (10,994) -- (9,685)
------- ------- --------
Net income (loss) $ 1,281 $ (3,595) $ (5,394)
------- ------- --------
------- ------- --------
Net income (loss) per share,
basic and diluted $ 0.12 $ (0.35) $ (0.52)
------- ------- --------
------- ------- --------
EBITDA Calculation: (1)
Net income (loss) $ 1,281 $ (3,595) $ (5,394)
Interest expense, net 273 4,048 10,072
Income tax provision (benefit) 928 (2,397) (3,616)
Depreciation and amortization 828 (36) 10,920
------- ------- --------
EBITDA $ 3,310 $ (1,980) $ 11,982
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(1) EBITDA represents earnings before interest, income taxes,
depreciation and amortization. Amounts are calculated based on
the Company's ownership percentage of the EBITDA components.
Management believes that EBITDA can be a meaningful measure of
the Company's operating performance, cash generation and
ability to service debt. However, EBITDA should not be
considered as an alternative to either: (i) net earnings
(determined in accordance with GAAP); (ii) operating cash flow
(determined in accordance with GAAP); or (iii) liquidity.
There can be no assurance that the Company's calculation of
EBITDA is comparable to similarly titled items reported by
other companies.
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Contact:
Crescent Operating, Inc., Fort Worth
Rick Knight, 817/339-2212