EXHIBIT 99
NEWS RELEASE
FOR IMMEDIATE RELEASE
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March 1, 2004
For Further Information Contact:
Anthony J. Caldarone
Chairman and Chief Executive Officer
Calton, Inc.
(772) 794-1414
Company website: www.caltoninc.com
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CALTON, INC. REPORTS DELISTING NOTIFICATION FROM THE AMERICAN STOCK EXCHANGE AND
FOURTH QUARTER AND FISCAL YEAR 2003 RESULTS
Vero Beach, Florida, March 1, 2004 - Calton, Inc. (AMEX:CN) announced today
fourth quarter and fiscal year 2003 results and the receipt of a delisting
notification from the American Stock Exchange ("AMEX").
AMERICAN STOCK EXCHANGE LISTING
On February 27, 2004, the Company received notice from the AMEX staff indicating
that the Company no longer complies with the AMEX's continued listing standards
due to losses in three of its four most recent fiscal years and shareholders'
equity below $4,000,000. The Company intends to appeal this determination and
request a hearing before an AMEX committee. There can be no assurance that the
Company's request for continued listing will be granted. If the Company's
request for continued listing is not successful, it will seek to have its Common
Stock become eligible for trading on the NASD's OTC Bulletin Board.
FOURTH QUARTER RESULTS
For the quarter ended November 30, 2003, the Company reported a net profit of
$585,000 or $.06 per basic and diluted share, compared to a net loss of
($220,000) or ($.05) per basic and diluted share for the quarter ended November
30, 2002. The Company recognized a $487,000 deferred income tax benefit during
the quarter ended November 30, 2003. Revenues of $2.3 million were generated in
the quarter ended November 30, 2003 compared to $385,000 for the quarter ended
November 30, 2002.
FISCAL 2003 PERFORMANCE
For the fiscal years ended November 30, 2003 and 2002, the Company reported a
net loss of ($945,000) compared to a net loss of ($4,984,000), respectively.
This amounted to a loss of ($0.16) and ($1.11) per basic and diluted share in
fiscal 2003 and 2002, respectively.
Revenues increased from $1,954,000 in the year ended November 30, 2002 to
$3,133,000 in the year ended November 30, 2003. The increase is directly
attributable to the Company's strategic decision to capitalize on existing
management's experience in the homebuilding industry. This was accomplished
through the acquisition of 35 residential lots in a 121-home residential
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community being developed in Vero Beach, Florida in the fourth quarter of fiscal
2003. Revenues associated with the homebuilding division are anticipated to
outpace revenues from other business operations and are ultimately expected to
constitute the most significant component of consolidated revenues. Due to a
severe downturn in the economic conditions in the Houston market, the Company
decided to exit the Technical Staffing line of business in the fourth quarter of
2003.
Anthony J. Caldarone, Chairman and Chief Executive Officer states "The Company
is very excited about its homebuilding prospects in the state of Florida, and
particularly in Indian River County."
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CALTON, INC. (AMEX: CN)
Quarter ended November 30,
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2003 2002
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Revenues $2,319,000 $385,000
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Net income/(loss) $585,000 ($220,000)
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Basic and diluted earnings/(loss) per share $0.06 ($0.05)
Weighted average number of shares
outstanding, basic and diluted 9,224,000 4,625,000
Fiscal Year ended November 30,
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2003 2002
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Revenues $3,133,000 $1,954,000
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Loss from continuing operations (945,000) (3,423,000)
Loss from discontinued operations - (1,561,000)
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Net loss ($945,000) ($4,984,000)
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Basic and diluted loss per share
Loss per share from continuing operations ($0.16) ($0.76)
Loss per share from discontinued operations - ($0.35)
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Net loss per share ($0.16) ($1.11)
================= =================
Weighted average number of shares
outstanding, basic and diluted 5,840,000 4,509,000
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Certain information included in this press release and Company filings
(collectively, "SEC filings") under the Securities Act of 1933, as amended, and
the Securities Exchange Act of 1934, as amended (as well as information
communicated orally or in writing between the dates of such SEC filings)
contains or may contain forward looking information that is subject to certain
risks, trends and uncertainties that could cause actual results to differ
materially from expected results. Among these risks, trends and uncertainties
are matters related to the continued operating losses and their effects on
liquidity, the Company's ability to raise capital, commercial acceptance of the
Company's co-branded customer loyalty credit card program, national and local
economic conditions, including conditions in the residential homebuilding
industry, conditions and trends in the homebuilding, Internet and technology
industries in general, changes in interest rates, the Company's ability to
acquire property for development, the effect of governmental regulation on the
Company and the risks described under the caption "Certain Risks" in the
Company's Annual Report on Form 10-KSB for the fiscal year ended November 30,
2003.
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