UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): February 3, 2005
Silverstar Holdings, Ltd.
(Exact name of registrant as specified in its charter)
Bermuda 0-27494 N/A
(State or other jurisdiction of (Commission File Number) (IRS Employer
incorporation) Identification No.)
Clarendon House, Church Street, Hamilton, HM CX, Bermuda
(Address of Principal Executive Offices with Zip Code)
Registrant's telephone number, including area code: (441) 295-1422
Not Applicable
(Former Name or Former Address, if Changed Since Last Report)
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Item 7.01 Regulation FD Disclosure.
On February 3, 2005, the Company issued the following press release:
Silverstar Holdings Earns $0.09 per Share for Quarter and $0.10 per Share for
Six Months Ended December 31, 2004
Quarterly Profits More Than Double That of Previous Year -- Generated by Foreign
Currency Gains and Continued Operational Improvement BOCA RATON, FL -- (MARKET
WIRE) -- 02/03/2005 -- Silverstar Holdings Ltd. (NASDAQ: SSTR) today reported a
profit of $0.09 per share for the quarter ended December 31, 2004, and a profit
of $0.10 per share for the six month period.
The Company generated revenues of $505,000 for the quarter with a profit of
$787,000 or $0.09 per share. Foreign currency gains for the quarter were
$770,000, of which approximately $400,000 were realized cash gains. The
Company's Fantasy Sports game business generated profits of approximately $0.01
per share. Interest income for the quarter was $165,000. For the comparable
period in the previous year, revenues were $589,000 with a profit of $347,000 or
$0.04 per share, non-cash foreign currency gains were $474,000, Fantasy Sports
lost approximately $0.01 per share, and interest income was $153,000. The
Company generated revenues of $1,116,000 for the six months ended December 31,
2004, with a profit of $912,000 or $0.10 per share. Foreign currency gains for
the six months were $540,330, of which approximately $400,000 were realized cash
gains. Fantasy Sports generated profits of approximately $0.04 per share.
Interest income for the six months was $323,000. For the comparable period in
the previous year, revenues were $1,476,000 with a profit of $782,000 or $0.09
per share, non-cash foreign currency gains were $819,000, Fantasy Sports broke
even and interest income was $331,000.
Clive Kabatznik, Chief Executive Officer of Silverstar Holdings, said: "The
profit for the December quarter and 6 month period is particularly gratifying as
it not only reflects the continued improvement in our operating business, but
also includes a significant realized foreign currency gain from the prepayment
of a portion of South African notes receivable. With cash in excess of $6.1
million and minimal debt, we are well positioned to realize increased
shareholder value by enhancing our revenues and income both organically and
through acquisitions."
Mr. Kabatznik continued, "Our investment in Magnolia Broadband, continues to
hold great promise as evidenced by the recent investment by Intel Capital and
Uniquest."
Mr. Kabatznik concluded, "We continue to seek strategic opportunities to build
on our base in the fee-based electronic and Internet game business."
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About Silverstar Holdings
Silverstar Holdings Ltd. is a publicly traded company, focusing on acquiring,
controlling positions in high-growth, fee-based businesses that stand to benefit
from the economies of scale generated by Internet and other technology related
platforms. It currently owns Fantasy Sports, Inc., a leading provider of
fee-based NASCAR-related and other fantasy sports games, as well as a stake in
Magnolia Broadband, a fab-less semiconductor company and innovator of radio
frequency (RF) solutions for the cellular industry.
The statements which are not historical facts contained in this press release
are forward-looking statements that involve certain risks and uncertainties,
including but not limited to risks associated with the uncertainty of future
financial results, additional financing requirements, development of new
products, regulatory approval processes, the impact of competitive products or
pricing, technological changes, the effect of economic conditions and other
uncertainties detailed in the company's filings with the Securities and Exchange
Commission.
Silverstar Holdings, Ltd.
Consolidated Statement of Earnings
Quarter Ended Quarter Ended
December 31, December 31,
2004 2003
---------- ----------
Revenues $ 505,300 $ 588,796
Currency Gain $ 769,543 $ 474,055
Interest Income $ 165,393 $ 152,822
Net Income $ 787,207 $ 347,080
Net Income Per Share $ 0.09 $ 0.04
Weighted Average Number
of Shares Outstanding 8,695,513 8,529,535
Silverstar Holdings, Ltd.
Consolidated Statement of Earnings
Six Months Ended Six Months Ended
December 31, December 31,
2004 2003
---------- ----------
Revenues $1,115,635 $1,475,691
Currency Gain $ 540,330 $ 818,906
Interest Income $ 322,797 $ 331,204
One-Time Bad Debt Recovery $ 165,155 -
Net Income $ 912,490 $ 781,609
Net Income Per Share $ 0.10 $ 0.09
Weighted Average Number
of Shares Outstanding 8,695,513 8,506,002
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Contact:
Clive Kabatznik
Silverstar Holdings
(561) 479-0040
clive@silverstarholdings.com
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934,
the Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
Date: February 3, 2005
SILVERSTAR HOLDINGS, LTD.
By: /s/ Clive Kabatznik
-----------------------------
Name: Clive Kabatznik
Title: CEO