Cadiz Inc., (Nasdaq:CLCI) today reported results for the second quarter ended June 30, 2000. Revenues for the quarter were $27.0 million, operating loss was $1.3 million, and net loss was $6.3 million, or ($.18) per share. The 2000 second-quarter net loss amount included $2.4 million of depreciation, amortization and non-cash interest charges. By comparison, in the second quarter of 1999, revenues were $26.2 million, operating profit was $2.7 million, and net loss was $1.9 million or ($.06) per share. The 1999 second-quarter net loss amount included $2.0 million of depreciation, amortization and non-cash interest charges.
The majority of the Company’s annual revenues are currently generated by the harvest and sale of crops produced by its wholly owned subsidiary, Sun World International, Inc (Sun World). Those revenues are typically recognized between June and October, while fixed overhead costs are incurred throughout the year. Therefore, the Company’s three and six-month results are not indicative of the results of business operations for a full fiscal year. Once the Company’s water development programs are operational, revenues are not expected to be as seasonal in nature.
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Sun World generated EBITDA (earnings before income taxes plus interest expense, depreciation and amortization) of $1.5 million for the second quarter of 2000, compared to $5.4 million for the second quarter of 1999. The decrease in EBITDA for the second quarter of 2000 is primarily attributable to less favorable market conditions for Sun World’s Southern California desert table grape and row crops, compared to the exceptional yields and pricing of the second quarter of 1999. Approximately 25% of Sun World-produced units are sold within the first six months of the year, while approximately 45% of the units are sold during the third quarter. Sun World has experienced markedly improved operating margins through July 2000, compared to the second quarter of this year.
For the six months ended June 30, 2000, revenues were $34.9 million, operating loss was $5.7 million and net loss was $15.1 million, or ($.43) per share. The 2000 six-month net loss amount included $3.7 million of depreciation, amortization and non-cash interest charges. For the six months ended June 30, 1999, revenues were $32.8 million, operating loss was $0.3 million and net loss was $9.3 million, or ($.27) per share. The 1999 six-month net loss amount included $3.3 million of depreciation, amortization and non-cash interest charges.
On March 31, 2000, Cadiz announced that the Metropolitan Water District of Southern California (“Metropolitan”) and the U.S. Bureau of Land Management (“BLM”) will publish for public review a Supplement to the previously-released Draft Environmental Impact Report/ Environmental Impact Statement for the Cadiz Groundwater Storage and Dry-Year Supply Program (“Program”), a cooperative water management program between Cadiz and Metropolitan. A Groundwater Monitoring and Management Plan, designed to ensure the safe operation of the groundwater basin and to protect surrounding environmental resources, will be a primary component of that Supplement. As previously reported, by incorporating the publication and circulation of this Supplement into the ongoing environmental review process, it is anticipated that a Final Environmental Impact Report/Environmental Impact Statement will be compiled and brought to Metropolitan and the BLM for final action in the fourth quarter of this year.
Founded in 1983, Cadiz Inc. is a publicly held water development and agricultural resources firm. With its subsidiary, Sun World International, Inc., Cadiz is one of the largest vertically integrated agricultural companies in California. The Company owns significant landholdings with substantial water resources throughout California. Further information on the Company can be obtained by visiting its corporate web site at www.cadizinc.com.
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By GlobalDataThis release contains forward-looking statements that are subject to significant risks and uncertainties, including statements related to the future operating and financial performance of the Company. Although the Company believes that the expectations reflected in its forward-looking statements are reasonable, it can give no assurance that such expectations will prove to be correct. Factors that could cause actual results or events to differ materially from those reflected in the Company’s forward-looking statements include price and yield fluctuations in the agricultural operations, seasonality, timing and terms of various approvals required to complete the Program, and other factors and considerations detailed in the Company’s Securities and Exchange Commission filings.
CADIZ INC.
FINANCIAL SUMMARY
Three Months Six Months
Ended June 30 Ended June 30
2000 1999 2000 1999
(in thousands except per share data)
Revenues $ 26,928 $ 26,193 $ 34,864 $ 32,753
Cost of sales 23,230 18,565 31,696 24,214
General and
administrative 3,146 3,220 6,083 6,171
Special litigation 103 245 276 472
Depreciation and
amortization 1,767 1,462 2,467 2,202
Operating profit
(loss) (1,318) 2,701 (5,658) (306)
Interest expense, net 4,964 4,609 9,466 9,023
Net loss $ (6,282) $ (1,908) $(15,124) $ (9,329)
Net loss per
common share $ (.18) $ (.06) $ (.43) $ (.27)
Weighted average
shares outstanding 35,308 34,600 35,263 34,279
