Exhibit 99.1
NEWS RELEASE
FOR IMMEDIATE RELEASE
---------------------
October 17, 2005
FOR FURTHER INFORMATION CONTACT:
Anthony J. Caldarone
Chairman, President and Chief Executive Officer
Calton, Inc.
(772) 794-1414
Company website: WWW.CALTONINC.COM
CALTON, INC. REPORTS THIRD QUARTER 2005 RESULTS
Vero Beach, Florida, October 17, 2005 - Calton, Inc. (OTC.BB: CTON.OB) announced
today results for the three and nine months ended August 31, 2005.
Anthony J. Caldarone, Chairman, President and Chief Executive Officer, announced
a net profit of $543,000 ($0.06 profit per basic and diluted share) for the
quarter ended August 31, 2005, compared to a net profit of $53,000 ($0.01 profit
per basic and diluted share) for the quarter ended August 31, 2004. He also
announced a net profit of $238,000 ($0.03 profit per basic share and $0.02
profit per diluted share) for the nine months ended August 31, 2005, compared to
a net profit of $181,000 ($0.02 profit per basic and diluted share) for the nine
months ended August 31, 2004.
Revenues for the three months ended August 31, 2005 and 2004 were $3,807,000 and
$3,351,000, respectively. Revenues for the nine months ended August 31, 2005 and
2004 were $7,408,000 and $8,229,000, respectively. The increase for the three
months is primarily attributable to higher selling prices of the homes delivered
in the homebuilding division and a 41% increase in revenues for the internet
development division over the same period last year. The decrease for the nine
months is primarily attributable to the Company's homebuilding segment which
delivered fewer homes than during the same period last year.
Cost of sales for the homebuilding operations were $2,541,000 and $2,598,000 for
the three months ended August 31, 2005 and 2004, respectively. Cost of sales for
the homebuilding operations were $5,036,000 and $6,271,000 for the nine months
ended August 31, 2005 and 2004, respectively. The reduction in cost of goods
sold for the nine months was a result of fewer home deliveries during the same
period of the prior year. Cost of sales for the website design and development
operations were $111,000 and $72,000 for the three months ended August 31, 2005
and 2004, respectively and were $259,000 and $218,000 for the nine months ended
August 31, 2005 and 2004, respectively. The increases in both periods were due
to increased staffing and additional project activity.
Selling, general and administrative expenses were $772,000 and $628,000 for the
three months ended August 31, 2005 and 2004, respectively. Selling, general and
administrative expenses were $2,085,000 and $1,766,000 for the nine months ended
August 31, 2005 and 2004, respectively. The increase in selling, general and
administrative expenses is primarily attributable
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to increases in personnel at the homebuilding division and increased sales and
marketing costs for both the homebuilding and Internet development divisions.
During the nine months ended August 31, 2005, the Company received $71,000 in
litigation settlements. During the nine months ended August 31, 2004, the
Company paid $15,000 in litigation settlements.
The Company received a $194,000 insurance settlement during the three months
ended August 31, 2005 for business interruption losses sustained due to
Hurricanes Frances and Jeanne.
The Company is currently constructing single-family homes in two communities, as
well as through our "On Your Lot" program, in Vero Beach, Florida. Management
continues to assess land acquisition opportunities and negotiate with various
landowners, brokers and agents to expand its operations and to create a more
diversified product offering.
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CALTON, INC. (OTC.BB:CTON.OB)
Three Months Ended
----------------------------------------
August 31, 2005 August 31, 2004
------------------- -------------------
Revenues $3,807,000 $3,351,000
=================== ===================
Net Profit $543,000 $53,000
=================== ===================
Earnings Per Share
Basic and Diluted $0.06 $0.01
=================== ===================
Weighted Average Number of Shares Outstanding
Basic 9,436,000 9,299,000
Diluted 9,553,000 9,400,000
Nine Months Ended
----------------------------------------
August 31, 2005 August 31, 2004
------------------- -------------------
Revenues $7,408,000 $8,229,000
=================== ===================
Net Profit $238,000 $181,000
=================== ===================
Earnings Per Share
Basic $0.03 $0.02
=================== ===================
Diluted $0.02 $0.02
=================== ===================
Weighted Average Number of Shares Outstanding
Basic 9,405,000 9,268,000
Diluted 9,529,000 9,405,000
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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 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 impact of severe weather on the Company's
homebuilding operations, the effect of governmental regulation on the Company
and other factors described from time to time in our filings with the Securities
and Exchange Commission.
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