American Vantage Companies (AVCS) 8-K American Vantage Companies Reports Results for Third Quarter and Sale of Land

EXHIBIT 99.1

[AMERICAN VANTAGE COMPANIES LOGO]

CONTACT AT THE COMPANY:
AUDREY TASSINARI, EXECUTIVE VICE PRESIDENT OR
ROY KEEFER, VICE PRESIDENT/CHIEF FINANCIAL OFFICER
702-227-9800

FOR IMMEDIATE RELEASE
WEDNESDAY, JUNE 20, 2001

AMERICAN VANTAGE COMPANIES REPORTS RESULTS FOR THIRD QUARTER AND SALE OF LAND

LAS VEGAS, NEVADA, JUNE 20, 2001 —— American Vantage Companies (NASDAQ:AVCS) announced today the results of its operations for the three months ended April 30, 2001, its third quarter of Fiscal 2001. Loss from operations for the period totaled $239,000 as compared to a loss from operations of $298,000 for the third quarter of Fiscal 2000. Net loss for the third quarter of Fiscal 2001 was $322,000 ($0.07 loss per basic and diluted share) versus a net loss of $610,000 ($0.12 loss per basic and diluted share) for the same period in Fiscal 2000.

The net loss for the nine months ended April 30, 2001 totaled $1,309,000 or $0.27 per basic and diluted share compared to a net loss of $2,228,000 or $0.46 per basic and diluted share for the nine months ended April 30, 2000.

The Company has begun a corporate restructuring to divest itself of its non-core assets as it seeks an acquisition or merger opportunity. As a part of the restructuring, a 20-acre parcel of land owned by the Company was sold in June 2001 for $2,400,000. The Company will recognize a fourth quarter pre-tax profit of approximately $895,000 on the sale. In the second quarter of Fiscal 2001, the Company divested its New York-based employment recruitment operation. The ongoing restructuring may also result in the sale of other land and subsidiaries as the Company improves its balance sheet and actively pursues a favorable acquisition or merger candidate.

This press release may contain forward-looking statements, which are subject to risks and uncertainties. The Company’s actual results may differ materially from those described in any forward-looking statements. Additional information concerning potential risk factors that could affect the Company’s business and financial results are included in the Company’s filings with the Securities and Exchange Commission. They can also be found on the Company’s website at www.americanvantage.com and on the Securities and Exchange Commission’s website at www.sec.gov.

6787 West Tropicana Suite 200      Las Vegas, Nevada 89103      (702) 227-9800      FAX (702) 227-8525
NASDAQ Symbol: AVCS      www.americanvantage.com

American Vantage Companies
Consolidated Balance Sheets
April 30, 2001 and July 31, 2000

			April 30,		July 31,
			2001		2000
			(Unaudited)
ASSETS
Current assets:
	Cash and cash equivalents		$	9,569,000	$	7,199,000
	Accrued interest			61,000		189,000
	Mortgage note receivable			—		1,300,000
	Refundable income taxes			1,177,000		1,708,000
	Deferred income tax asset			138,000		641,000
	Prepaid expenses			31,000		60,000
		Total current assets		10,976,000		11,097,000
Property and equipment, net				130,000		148,000
Land held for sale				4,894,000		4,894,000
Investment in unconsolidated restaurant subsidiary				1,842,000		2,038,000
Deferred income tax asset				85,000		92,000
Goodwill, net				—
Net assets of discontinued restaurant operation				—		232,000
Net assets of discontinued recruitment operation				—		431,000
Other assets — principally restricted cash in 2000				15,000		538,000
			$	17,942,000	$	19,470,000
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
	Accounts payable		$	162,000	$	295,000
	Accrued expenses			215,000		300,000
		Total current liabilities		377,000		595,000
Commitments and contingency				—		—
Stockholders’ equity:
	Common stock, $.01 par; 30,000,000 shares authorized; shares issued and outstanding — 4,865,856 and 4,858,256			49,000		49,000
	Preferred stock, $.01 par; 10,000,000 shares authorized; shares issued and outstanding — none			—		—
	Capital in excess of par			2,940,000		2,941,000
	Capital in excess of par — stock options			278,000		278,000
	Retained earnings			14,298,000		15,607,000
				17,565,000		18,875,000
			$	17,942,000	$	19,470,000

American Vantage Companies
Consolidated Statements of Loss
Three Months Ended April 30, 2001 and 2000
(Unaudited)

			2001			2000
Revenues			$	—		$	—
Costs and expenses:
	Casino consulting			97,000			130,000
	Death care operations			8,000			15,000
	General and administrative			509,000			488,000
	Amortization and depreciation			6,000			6,000
	(Income) loss of unconsolidated restaurant subsidiary			(140,000	)		43,000
				480,000			682,000
	Loss from continuing operations			(480,000	)		(682,000	)
Other income:
	Interest income			132,000			251,000
	Interest expense			—			(2,000	)
	Miscellaneous			—			8,000
				132,000			257,000
	Loss from continuing operations before income taxes			(348,000	)		(425,000	)
Income tax benefit (expense):
	Current:
		State		—			(9,000	)
		Federal		658,000			147,000
	Deferred:
		State		(1,000	)		(1,000	)
		Federal		(548,000	)		(10,000	)
				109,000			127,000
Loss from continuing operations				(239,000	)		(298,000	)
Discontinued operations:
	Discontinued recruitment operation, net of minority interest ($0-2001; $40,000-2000) and income tax benefits ($0-2001; $58,000-2000)			—			(112,000	)
	Discontinued restaurant operation, net of income tax benefits ($43,000-2001; $103,000-2000)			(83,000	)		(200,000	)
	Net loss		$	(322,000	)	$	(610,000	)
Loss per common share — basic:
	Loss from continuing operations		$	(0.05	)	$	(0.06	)
	Discontinued operations			(0.02	)		(0.06	)
	Net loss		$	(0.07	)	$	(0.12	)
Loss per common share — diluted:
	Loss from continuing operations		$	(0.05	)	$	(0.06	)
	Discontinued operations			(0.02	)		(0.06	)
	Net loss		$	(0.07	)	$	(0.12	)
Weighted average number of common shares and common share equivalents:
	Basic			4,866,000			4,887,000
	Stock options and warrants			—			—
	Diluted			4,866,000			4,887,000

American Vantage Companies
Consolidated Statements of Loss
Nine Months Ended April 30, 2001 and 2000
(Unaudited)

			2001			2000
Revenues			$	—		$	—
Costs and expenses:
	Casino consulting			151,000			470,000
	Death care operations			24,000			293,000
	General and administrative			1,476,000			1,617,000
	Amortization and depreciation			19,000			23,000
	(Income) loss of unconsolidated restaurant subsidiary			(304,000	)		235,000
				1,366,000			2,638,000
	Loss from continuing operations			(1,366,000	)		(2,638,000	)
Other income:
	Interest income			496,000			708,000
	Interest expense			—			(2,000	)
	Miscellaneous			1,000			9,000
				497,000			715,000
	Loss from continuing operations before income taxes			(869,000	)		(1,923,000	)
Income tax benefit (expense):
	Current:
		State		5,000			(3,000	)
		Federal		838,000			727,000
	Deferred:
		State		—			(49,000	)
		Federal		(510,000	)		(79,000	)
				333,000			596,000
Loss from continuing operations				(536,000	)		(1,327,000	)
Discontinued operations:
	Discontinued recruitment operation, net of minority interest ($88,000-2001; $56,000-2000), write off of goodwill ($250,000-2001) and income tax benefits ($320,000-2001; $85,000-2000)			(621,000	)		(737,000	)
	Discontinued restaurant operation, net of income tax benefits ($79,000-2001; $379,000-2000)			(152,000	)		(164,000	)
	Net loss		$	(1,309,000	)	$	(2,228,000	)
Loss per common share — basic:
	Loss from continuing operations		$	(0.11	)	$	(0.27	)
	Discontinued operations			(0.16	)		(0.19	)
	Net loss		$	(0.27	)	$	(0.46	)
Loss per common share — diluted:
	Loss from continuing operations		$	(0.11	)	$	(0.27	)
	Discontinued operations			(0.16	)		(0.19	)
	Net loss		$	(0.27	)	$	(0.46	)
Weighted average number of common shares and common share equivalents:
	Basic			4,866,000			4,887,000
	Stock options and warrants			—			—
	Diluted			4,866,000			4,887,000