Press Release
November 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 nine month periods ended September 30, 2000.
Crescent Operating's revenues for the three months ended September 30, 2000 were approximately $182.1 million,
which represented a 3.7% increase over revenues of approximately $175.6 million for the three months ended September
30, 1999. Net loss for the three months ended September 30, 2000 was approximately ($4.2) million, or ($0.40) per
share compared with a net loss of approximately ($2.5) million, or ($0.24) per share for the three months ended
September 30, 1999.
Crescent Operating's revenues for the nine months ended September 30, 2000 were approximately $526.1 million, which
represented a 8.3% increase over revenues of approximately $485.7 million for the nine months ended September 30,
1999. Net loss for the nine months ended September 30, 2000 was approximately ($9.6) million, or ($0.93) per share
compared with net income of approximately $1.1 million, or $0.10 per share (diluted) for the nine months ended
September 30, 1999.
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 SEPTEMBER 30, 2000
(Amounts in thousands, except share data)
Equipment Temperature
Sales Controlled
and Leasing Hospitality Logistics
----------- ----------- ------------
Revenues $ 33,840 $ 68,931 $ --
Operating expenses 33,047 69,969 4
--------- --------- ---------
Income (loss) from operations 793 (1,038) (4)
--------- --------- ---------
Investment income (loss) -- 81 (1,303)
--------- --------- ---------
Other (income) expense
Interest expense 2,676 252 --
Interest income (5) (31) --
Other 138 -- --
--------- --------- ---------
Total other (income) expense 2,809 221 --
--------- --------- ---------
Income (loss) before income
taxes and minority interest (2,016) (1,178) (1,307)
Income tax provision (benefit) (849) (471) (523)
--------- --------- ---------
Income (loss) before minority
interests (1,167) (707) (784)
Minority interests -- 72 --
--------- --------- ---------
Net income (loss) $ (1,167) $ (635) $ (784)
--------- --------- ---------
--------- --------- ---------
Net income (loss) per share,
basic and diluted $ (0.11) $ (0.06) $ (0.08)
--------- --------- ---------
--------- --------- ---------
EBITDA Calculation: (1)
Net income (loss) $ (1,167) $ (635) $ (784)
Interest expense, net 2,671 27 286
Income tax provision (benefit) (849) (423) (523)
Depreciation and amortization 4,859 293 929
--------- --------- ---------
EBITDA $ 5,514 $ (738) $ (92)
--------- --------- ---------
--------- --------- ---------
Land
Development Other Total
----------- ----------- ------------
Revenues $ 79,362 $ -- $182,133
Operating expenses 71,861 695 175,576
--------- --------- ---------
Income (loss) from operations 7,501 (695) 6,557
--------- --------- ---------
Investment income (loss) 6,520 -- 5,298
--------- --------- ---------
Other (income) expense
Interest expense 4,244 2,170 9,342
Interest income (893) (72) (1,001)
Other (63) (1) 74
--------- --------- ---------
Total other (income) expense 3,288 2,097 8,415
--------- --------- ---------
Income (loss) before income
taxes and minority interest 10,733 (2,792) 3,440
Income tax provision (benefit) 3,911 (1,118) 950
--------- --------- ---------
Income (loss) before minority
interests 6,822 (1,674) 2,490
Minority interests (6,732) -- (6,660)
--------- --------- ---------
Net income (loss) $ 90 $ (1,674) $(4,170)
--------- --------- ---------
--------- --------- ---------
Net income (loss) per share,
basic and diluted $ 0.01 $ (0.16) $(0.40)
--------- --------- ---------
--------- --------- ---------
EBITDA Calculation: (1)
Net income (loss) $ 90 $ (1,674) $(4,170)
Interest expense, net 186 2,098 5,268
Income tax provision (benefit) 167 (1,118) (2,746)
Depreciation and amortization 179 (18) 6,242
--------- --------- ---------
EBITDA $ 622 $ (712) $4,594
--------- --------- ---------
--------- --------- ---------
(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 NINE MONTHS ENDED SEPTEMBER 30, 2000
(Amounts in thousands, except share data)
Equipment Temperature
Sales Controlled
and Leasing Hospitality Logistics
----------- ----------- ----------
Revenues $ 108,514 $ 207,570 $ --
Operating expenses 105,374 207,518 27
--------- --------- ---------
Income (loss) from operations 3,140 52 (27)
--------- --------- ---------
Investment income (loss) -- (323) (5,961)
--------- --------- ---------
Other (income) expense
Interest expense 7,809 696 --
Interest income (25) (104) --
Other 426 (4) --
--------- --------- ---------
Total other (income) expense 8,210 588 --
--------- --------- ---------
Income (loss) before income
taxes and minority interest (5,070) (859) (5,988)
Income tax provision (benefit) (2,131) (344) (2,395)
--------- --------- ---------
Income (loss) before minority
interests (2,939) (515) (3,593)
Minority interests -- 1,381 --
--------- --------- ---------
Net income (loss) $ (2,939) $ 866 $ (3,593)
--------- --------- ---------
--------- --------- ---------
Net income (loss) per share,
basic and diluted $ (0.28) $ 0.08 $ (0.35)
--------- --------- ---------
--------- --------- ---------
EBITDA Calculation: (1)
Net income (loss) $ (2,939) $ 866 $ (3,593)
Interest expense, net 7,784 95 856
Income tax provision (benefit) (2,131) 578 (2,389)
Depreciation and amortization 12,752 872 2,585
--------- --------- ---------
EBITDA $ 15,466 $ 2,411 $ (2,541)
--------- --------- ---------
--------- --------- ---------
Land
Development Other Total
----------- ------- -------
Revenues $ 209,997 $ -- $ 526,081
Operating expenses 190,414 2,636 505,969
--------- --------- ---------
Income (loss) from operations 19,583 (2,636) 20,112
--------- --------- ---------
Investment income (loss) 18,340 -- 12,056
--------- --------- ---------
Other (income) expense
Interest expense 11,073 6,394 25,972
Interest income (2,509) (248) (2,886)
Other (335) 2 89
--------- --------- ---------
Total other (income) expense 8,229 6,148 23,175
--------- --------- ---------
Income (loss) before income
taxes and minority interest 29,694 (8,784) 8,993
Income tax provision (benefit) 10,597 (3,515) 2,212
--------- --------- ---------
Income (loss) before minority
interests 19,097 (5,269) 6,781
Minority interests (17,726) -- (16,345)
--------- --------- ---------
Net income (loss) $ 1,371 $ (5,269) $ (9,564)
--------- --------- ---------
--------- --------- ---------
Net income (loss) per share,
basic and diluted $ 0.13 $ (0.51) $ (0.93)
--------- --------- ---------
--------- --------- ---------
EBITDA Calculation: (1)
Net income (loss) $ 1,371 $ (5,269) $ (9,564)
Interest expense, net 459 6,146 15,340
Income tax provision (benefit) 1,095 (3,515) (6,362)
Depreciation and amortization 1,007 (54) 17,162
--------- --------- ---------
EBITDA $ 3,932 $ (2,692) $ 16,576
--------- --------- ---------
--------- --------- ---------
(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.
-----------------------------------------------
Contact:
Crescent Operating, Fort Worth
Rick Knight, 817/339-2212