Exhibit 99.1
RAMPART CAPITAL CORPORATION REPORTS LOSS FOR FIRST QUARTER 2003
Houston, Texas, May 16, 2002 -- Rampart Capital Corporation ("Rampart") (Amex:
RAC and RAC.ws) reported net loss of $(346,087) or $(0.12) per share on revenues
of $2,115,758 for the quarter ended March 31, 2003. For the same period in
2002, the quarterly net income was $228,820 or $0.08 per share on revenues of
$840,945, after an extraordinary gain of $430,000.
Comparative earnings data is summarized below:
Quarter Ended March 31,
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2003 2002
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Total revenue $2,115,758 $ 840,945
Net income (loss) before extraordinary gain $ (346,087) $ (201,180)
Extraordinary gain - $ 430,000
Net income $ (346,087) $ 228,820
Basic & diluted net earnings (loss) per common shares $ (0.12) $ 0.08
Weighted average common shares outstanding 2,905,143 2,905,143
During the first quarter of 2003, the Company recognized an impairment loss of
$742,174 on its golf course and conference center. Financial Accounting
Standards Board Standard 144 requires the impairment of costs of long-lived
assets when circumstances occur that would cause the Company to realize less
than the costs capitalized for that asset. The golf market in the Houston area
has been depressed by overbuilding and a decrease in overall play. These
conditions have resulted in continued operating losses and significant declines
in golf property values throughout the Houston market. Despite increased
marketing efforts and significant improvements to the course, the Company has
experienced significant losses for the last three years. The impairment was
based upon a current restricted appraisal dated May 5, 2003. The Company
expects to receive a non-restricted appraisal within the next 30 days. There
was no corresponding loss impairment of any long-lived asset during the first
quarter of 2002.
For the first quarter of 2003, Rampart's revenues were up primarily because of
major collections activity, increased sales of town homes at our redevelopment
project, and increased margins in our Real Estate Financing segment. Lot sales
and new home starts in the Newport subdivision continue and are in-line with
management's expectations.
Rampart is a financial services company whose primary business activities
include (i) acquiring undervalued financial and real estate assets,
rehabilitating those assets and selling or operating those assets for profit,
(ii) operating commercial real estate assets and (iii) making short-term bridge
loans secured by real estate.
This press release contains forward-looking statements under federal securities
laws, including statements regarding Rampart Capital Corporation's expected
future business and prospects. These forward-looking statements are based upon
current expectations and involve certain risks that could cause actual results
to differ materially from any such statement. These risks and uncertainties
include (1) tightening of credit markets, (2) volatility in the real estate
markets and interest rates, (3) emerging competition, (4) changes in regulations
in the industries we serve (5) changes in general economic conditions,
particularly within the regions in which we operate, (6) market valuation
risks, and (7) terrorist activities.
Contact: Rampart Capital Corporation
Chuck Janke, Jim Carpenter, Charles Presley & Eileen Fashoro at
713-223-4610