EXHIBIT 99.1
NEWS RELEASE
FOR IMMEDIATE RELEASE
July 14, 2006
FOR FURTHER INFORMATION CONTACT:
Anthony J. Caldarone
Chairman, President and Chief Executive Officer
Calton, Inc.
(772) 794-1414
Company website: www.caltoninc.com
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CALTON, INC. REPORTS SECOND QUARTER 2006 RESULTS
Vero Beach, Florida, July 14, 2006 - Calton, Inc. (OTC.BB: CTON.OB) announced
today results for the three and six months ended May 31, 2006.
Anthony J. Caldarone, Chairman, President and Chief Executive Officer, announced
a net profit of $58,000 ($0.01 per basic and diluted share) for the quarter
ended May 31, 2006, compared to a net loss of $343,000 ($0.04 loss per basic and
diluted share) for the quarter ended May 31, 2005. He also announced a net
profit of $69,000 ($0.01 profit per basic and diluted share) for the six months
ended May 31, 2006, compared to a net loss of $305,000 ($0.03 loss per basic and
diluted share) for the six months ended May 31, 2005.
Revenues for the three months ended May 31, 2006 and 2005 were $2,776,000 and
$1,324,000, respectively. Revenues for the six months ended May 31, 2006 and
2005 were $5,134,000 and $3,601,000, respectively. The increase for both the
three and six month periods is primarily attributable to the Company's
homebuilding segment which delivered more homes than during the same periods
last year.
Cost of sales for the homebuilding operations were $1,849,000 for the three
months ended May 31, 2006 and $883,000 for the three months ended May 31, 2005.
Cost of sales for the homebuilding operations were $3,397,000 for the six months
ended May 31, 2006 and $2,495,000 for the six months ended May 31, 2005. Cost of
sales for the website design and development operations were $104,000 and
$78,000 for the three months ended May 31, 2006 and 2005, respectively. Cost of
sales for the website design and development operations were $208,000 and
$148,000 for the six months ended May 31, 2006 and 2005, respectively.
Selling, general and administrative expenses were $732,000 for the three months
ended May 31, 2006 compared to $654,000 for the three months ended May 31, 2005.
Selling, general and administrative expenses were $1,400,000 and $1,242,000 for
the six months ended May 31, 2006 and 2005, respectively.
The Company is currently constructing single-family homes in two separate
communities, as well as on individual landowner parcels, in Vero Beach, Florida.
Management continues to assess land acquisition opportunities and to 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
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May 31, 2006 May 31, 2005
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Revenues $2,776,000 $1,324,000
================= =================
Net Profit (Loss) $58,000 ($343,000)
================= =================
Earnings (Loss) Per Share
Basic and Diluted $0.01 ($0.04)
================= =================
Weighted Average Number of Shares Outstanding
Basic 9,516,000 9,406,000
Diluted 9,691,000 9,406,000
Six Months Ended
------------------------------------
May 31, 2006 May 31, 2005
----------------- -----------------
Revenues $5,134,000 $3,601,000
================= =================
Net Profit (Loss) $69,000 ($305,000)
================= =================
Earnings (Loss) Per Share
Basic and Diluted $0.01 ($0.03)
================= =================
Weighted Average Number of Shares Outstanding
Basic 9,507,000 9,389,000
Diluted 9,673,000 9,389,000
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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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