EXHIBIT 99.1
PRESS RELEASE Silverstar Holdings
SILVERSTAR HOLDINGS - SSTR - ANNOUNCES FINANCIAL RESULTS FOR FIRST QUARTER ENDED
SEPTEMBER 30, 2005
Tuesday November 15, 10:55 am ET
BOCA RATON, FL--(MARKET WIRE)--Nov 15, 2005 -- Silverstar Holdings, Ltd.
(NasdaqSC:SSTR - News) today reported results of operations for the first
quarter ended September 30, 2005, for the fiscal year 2006.
The Company reported revenues of $966 thousand for the first quarter of the
fiscal year ending September 30, 2005, an increase of approximately $356
thousand or 58% from the $610 thousand from the same period of 2004.
The Company reported net loss from operations $(48,298) or $0.00 per share
compared to net income of $125,283. Included in the net income was a non-cash
foreign currency gain of $81,773 related to its South African assets.
The balance sheet shows $14.8 million in total assets as of September 30, 2005
and stockholder equity of $12.32 million.
Clive Kabatznik, Chief Executive Officer of Silverstar Holdings, stated: "We
continue to source opportunities to enhance our portfolio of companies.
Currently, our strategy focuses on acquiring controlling stakes in high quality
game related media and marketing businesses with strong management teams that
are positioned to use technology and Internet related platforms to fuel above
average growth. Our investments targets must have an ability to contribute
earnings per share through operating profit or capital appreciation and be
accretive near team. We believe that operating in partnership with committed,
incentivised, entrepreneurial management, who show the vision and ability to
grow their businesses into industry or niche leaders, is the best way to add
value to our investments.
"Although we are pleased with our progress, to date, we believe we have
identified several opportunities that will add the critical mass necessary to
enhance the overall performance of our portfolio, thus augmenting our long-term
shareholder value."
About Silverstar Holdings
Silverstar Holdings Ltd. is a publicly traded company, focusing on acquiring
controlling positions in high growth fee-based electronic game 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 dominant
provider of fee based NASCAR related and other fantasy sports games, Strategy
First Inc., a leading developer and worldwide publisher of entertainment
software for the PC, as well as a stake in Magnolia Broadband, a fab-less
semiconductor company and innovator of radio frequency (RF) solutions for the
cellular industry. www.silverstarholdings.com
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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. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
SEPTEMBER 30, 2005 JUNE 30, 2005
ASSETS
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Current Assets:
Cash and cash equivalents, includes
restricted cash of $313,414 and $67,189
respectively (see Note 8) 4,740,414 4,870,486
Accounts receivable, net 89,245 95,130
Current portion of long-term notes
receivable 136,635 118,272
Prepaid expenses and other current assets 261,701 183,221
Option Contract 192,512 359,171
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Total Current Assets 5,420,507 5,626,280
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Property, Plant and Equipment, net 109,116 114,628
Investments in Non-Marketable Securities 843,566 843,566
Long-Term Notes Receivable 3,317,885 3,135,763
Goodwill, net 3,752,756 3,715,153
Intangible Assets, net 1,266,675 1,241,701
Deferred Charges and Other Assets 101,872 23,374
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Total Assets 14,812,377 14,700,465
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Line of credit 313,444 67,189
Current portion of long-term debt 231,463 220,845
Accounts payable 377,065 395,383
Accrued expenses 813,525 675,681
Deferred revenue 387,697 629,248
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Total Current Liabilities 2,123,194 1,988,346
Long-Term Debt 99,272 150,047
Obligation to Issue Common Stock 273,554 273,554
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Total Liabilities 2,496,020 2,411,947
Commitments, Contingencies and Other
Matters
Stockholders' Equity:
Preferred stock, $0.01 par value; 5,000,000
shares authorized; no shares issued and
outstanding
Common stock, Class A, $0.01 par value,
50,000,000 shares authorized; 8,233,324
shares issued and outstanding 82,333 82,333
Common stock, Class B, $0.01 par value;
2,000,000 shares authorized; 835,260
shares issued and outstanding 8,353 8,353
Common stock, FSAH Class B $0.001 par
value; 10,000,000 shares authorized;
2,671,087 shares issued and outstanding 600 600
Additional paid-in capital 64,619,897 64,602,803
Accumulated deficit (52,459,465) (52,411,167)
Accumulated comprehensive income 64,639 5,596
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Total stockholders' equity 12,316,357 12,288,518
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Total liabilities and stockholders' equity 14,812,377 14,700,465
SILVERSTAR HOLDINGS, LTD. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
Three Months Ended September 30,
2005 2004
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Revenues 966,437 610,335
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Operating Expenses:
Cost of sales 500,858 280,820
Selling, general and administrative 602,723 287,244
Amortization of intangible assets 34,418 500
Depreciation 9,435 4,274
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Total operating expenses 1,147,434 572,838
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Operating income (loss) (180,997) 37,497
Other Income 23,912 165,155
Foreign Currency Gains (Loss) 33,237 (229,213)
Interest Income 84,114 157,404
Interest Expense (8,564) (5,560)
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Income (loss) before income taxes (48,298) 125,283
Provision for Income Taxes 0.00 0.00
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Net Income (Loss) (48,298) 125,283
Income (Loss) Per Share
Basic and diluted 0.01 0.01
Weighted Average Common Stock Outstanding:
Basic 9,068,584 8,695,513
Diluted 9,068,584 8,754,270
Contact:
Contact:
Silverstar Holdings, Inc.
Clive Kabatznik
President and CEO
(561) 479 0040
Email Contact
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Or
Alliance Advisors, LLC
Alan Sheinwald
(914) 244-0062
Email Contact
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