| | CARNEGIE COOKE & COMPANY, INC.’S EPS ROSE 180% TO $0.14, REVENUES INCREASED 117%, AND NET EARNINGS ROSE 155% FOR THE YEAR ENDING DECEMBER 31, 2001 BASED ON GROSS REVENUES OF $3,500,141.
Los Angeles - January 22, 2002 - CARNEGIE COOKE & COMPANY, INC.’S EPS ROSE 180% TO $0.14, REVENUES INCREASED 117%, AND NET EARNINGS ROSE 155% FOR THE YEAR ENDING DECEMBER 31, 2001 BASED ON GROSS REVENUES OF $3,500,141.
Los Angeles, (January 22, 2001,)/PRNewswire --Carnegie Cooke & Company, Inc. (“Carnegie Cooke”) (OTC:CGKY) today announced the following unaudited operating results for the year ending December 31, 2001: Gross Revenues of $3,500,141 and Net Earnings of $2,982,645 representing increases of 117% and 155%, respectively, over the results for the year ending December 31, 2000. Earnings per share were $0.14 (fourteen cents), up 180% over the same period in 2000.
“We have established a strong revenue base through our mechanization of the Jockey Clubs and opening of OTB’s,” said Jay Goldberg, Chairman and Chief Executive Officer. “Included in current assets is a $130,000 deposit made for Proprietary Gaming Machines (PGM’s) to be installed throughout Brazil. This marks the beginning of the truly dynamic phase of our business plan in which the revenue stream from the Jockey Clubs supports the massive expansion our revenue base through PGM’s. Our working capital position has increased from $333,059 at December 31, 2000 to $3,785, 304 at December 31, 2001. In addition, the portion of working capital made up of cash and cash equivalents continues to increase. For example, only 60% of working capital was made up of cash and cash equivalents at June 30, 2001 compared to 89% at December 31, 2001. Further to this point, working capital has increased $2,023,903, or 142%, since June 30 2001.
“SG&A expenses have decreased to 10% of Net Revenue, well below our budgeted goal of 16% to 18% of Net Revenues. The company had Net Income of $2,982,645 and $1,170,797 for the years ending December 31, 2001 and December 31, 2000 respectively, or an increase of 155%. We achieved this on a Gross Revenue increase of 117% by reducing our SG&A from 21% of Net Revenue in 2000 to 10% of Net Revenue in 2001. We also feel that as more OTB’s open and the PGM’s are installed, we can further reduce this percentage and therefore increase even more what we consider to be a very impressive revenue stream.”
The following is a condensed consolidated statement of earnings for the years ending December 31, 2001 and December 31, 2000.
Twelve Months Ending Percentage
Dec. 31, 2001 Dec. 31, 2000 Increase/(Decrease)
Gross Revenue $3,500,141 $1,611,723 117%
Net Revenue 3,232,794 1,496,332 122%
SG&A Expenses 341,149 325,535 5%
Net Income $2,982,645 $1,170,797 155%
EPS $0.14 $0.05 180%
The following represents highlights from the balance sheets at December 31, 2001 and December 31, 2000.
Dec. 31, 2001 Dec. 31, 2000 Increase/(Decrease)
Cash on Hand $1,890,523 $374,633 $1,515,890
Current Assets 3,875,285 374,633 3,500,652
Long Term Tangible
Assets 11,349,625 10,825,844 523,781(1)
Total Assets $15,690,204 $11,705,786 $3,984,418
Current Liabilities $76,596 $41,574 $35,022
Long Term Note 39,415 -0- 39,415(2)
Common Stock 20,985 14,986 5,999
Paid in Capital 10,351,454 9,433,502 917,952
Retained Earnings 4,853,369 1,870,724 2,982,645
Shareholders’ Equity 15,225,808 11,319,212 3,906,596
Total Liabilities & Equity $15,690,204 $11,705,786 $3,984,418
(1)Increase from purchase of building and purchase of equipment and machinery for installation into OTB’s as well as for mechanization of Jockey Clubs.
(2)Represents remaining mortgage on Building purchase referred to in (1). Current portion of this mortgage is included in current liabilities.
Carnegie Cooke & Company, Inc. is the exclusive service provider of simulcast transmission of international racing events throughout Brazil and other South American countries. In addition, Carnegie Cooke has a contract with the Brazilian Association of Jockey Clubs to mechanize the system of betting throughout Brazil. The Brazilian Government’s approval of this contract and naming of Carnegie Cooke as an accredited collector of betting revenue in Brazil was announced on March 16, 2001. The mechanization of the first Jockey Club and the opening of the first agency were announced in a press release dated May 14, 2001.
For further information contact Jay Goldberg at 800-262-2331.
Except for historical information, the matters set forth herein, which are forward-looking statements, involve certain risks and uncertainties that could cause actual results to differ. Potential risks and uncertainties include, but are not limited to, the expenses associated with implementing the Company’s manufacturing and distribution agreement, the possible failure of the Company’s planned gaming operations, the potential shortfall on actual amount of sales which may be derived from the Company’s operations as opposed to estimates, the possible failure of the Company to establish a presence in the highly competitive environment within the Brazilian and South American gaming industry, the necessity that the Company’s products achieve market acceptance, and the Company’s ability to successfully implement all of the technical and economic aspects of its proposed operations.
Safe Harbor Statement: Except for historical information the matters set forth herein, which are forward-looking statements, involve certain risks and uncertainties that could cause actual results to differ. Potential risks and uncertainties include, but are not limited to, any perceived or actual benefits of the merger, the company's planned gaming operations, the market acceptance and amount of sales derived from the Company's operations, the competitive environment within the Brazilian and South American gaming industry, and the market acceptance and successful technical and economic implementation of the Company's operations.
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