BEVERLY HILLS, Calif., Aug. 23 /PRNewswire-FirstCall/ -- Kennedy Wilson (OTC: KWIC), a real estate investment and services firm, reported financial results for the six months ended June 30, 2006 . Net income for the period was $5.6 million or $0.99 per share diluted, compared to $9.3 million or $1.63 per share in the same period of 2005. Total revenue for the period was $22.4 million compared to $50.8 million in the same period of 2005. Pre-tax income for the six months was $9.3 million , compared to $14.8 million for the same period of 2005.
Kennedy Wilson is a real estate investment and services firm. The Company
was founded in 1977 and is headquartered in
This release contains forward-looking statements as well as historical information. Statements of goals and strategies and words such as 'plan', 'believe', 'anticipate', 'expect', 'objectives', 'forecast', and 'predict' and other similar words are intended to identify forward-looking statements. These forward looking statements are included in accordance with the 'safe harbor' provisions of the Private Securities Litigation Reform Act of 1995, and involve risks, uncertainties and other factors that may cause the company's actual results, performance, or financial condition to be materially different from any results, performance, or financial condition suggested by the statements in this release.
Contact: Freeman A. Lyle
Executive Vice President - Chief Financial Officer
Tel: (310) 887-6453 Fax: (310) 887-6414
Kennedy Wilson, Inc. and Subsidiaries
Consolidated Balance Sheets
June 30, December 31,
2006 2005
(Unaudited)
Assets
Cash and cash equivalents $9,575,000 $19,424,000
Accounts receivable 3,237,000 3,562,000
Notes receivable 7,199,000 6,705,000
Real estate 6,667,000 --
Investments in joint ventures 47,902,000 36,346,000
Contracts and other assets, net 3,618,000 2,958,000
Goodwill, net 23,965,000 23,965,000
Total Assets $102,163,000 $92,960,000
Liabilities and Stockholders' Equity
Liabilities
Accounts payable $189,000 $332,000
Accrued expenses and other liabilities 1,784,000 1,089,000
Accrued salaries and benefits 4,617,000 4,269,000
Deferred and accrued income taxes 9,230,000 11,705,000
Notes payable 11,775,000 13,132,000
Borrowings under lines of credit 18,567,000 18,947,000
Mortgage loans payable 6,000,000 --
Senior unsecured notes -- 1,667,000
Total liabilities 52,162,000 51,141,000
Commitments and Contingencies
Stockholders' Equity
Preferred stock, $0.01 par value:
5,000,000 shares authorized; none issued
as of June 30, 2006 and December 31, 2005 -- --
Common stock, $0.01 par value:
50,000,000 shares authorized; 5,701,905
and 5,477,706 shares issued and
outstanding as of June 30, 2006 and
December 31, 2005, respectively 57,000 55,000
Additional paid-in capital 13,089,000 14,884,000
Restricted stock - deferred compensation -- (4,588,000)
Retained earnings 36,855,000 31,468,000
Total stockholders' equity 50,001,000 41,819,000
Total Liabilities and Stockholders'
Equity $102,163,000 $92,960,000
Kennedy Wilson, Inc. and Subsidiaries
Consolidated Statements of Income
(Unaudited)
Three months ended Six months ended
June 30, June 30,
2006 2005 2006 2005
Revenue
Property management
and leasing fees $3,821,000 $3,586,000 $7,631,000 $7,299,000
Commissions 2,059,000 1,823,000 4,783,000 3,864,000
Sales of residential
real estate -- 6,754,000 -- 6,754,000
Equity in joint
venture income 1,100,000 24,841,000 9,427,000 32,080,000
Interest and
other income 200,000 313,000 554,000 810,000
Total revenue 7,180,000 37,317,000 22,395,000 50,807,000
Operating Expenses
Commissions and
marketing expenses 415,000 675,000 850,000 1,227,000
Compensation and
related expenses 3,804,000 14,054,000 13,937,000 22,535,000
General and
administrative 1,492,000 2,416,000 3,273,000 4,121,000
Cost of residential
real estate sold -- 5,218,000 -- 5,218,000
Depreciation and
amortization 125,000 686,000 305,000 1,203,000
Total operating
expenses 5,836,000 23,049,000 18,365,000 34,304,000
Total operating
income 1,344,000 14,268,000 4,030,000 16,503,000
Non-operating expense
Gain on sale
of asset -- -- 7,060,000 --
Interest expense (725,000) (846,000) (1,478,000) (1,682,000)
Income from continuing
operations before
minority interest in
income, provision for
income taxes and
discontinued operations 619,000 13,422,000 9,612,000 14,821,000
Minority interest in
income (86,000) -- (300,000) --
Income from continuing
operations before
provision for income
taxes and discontinued
operations 533,000 13,422,000 9,312,000 14,821,000
Provision for income
taxes (213,000) (5,100,000) (3,725,000) (5,659,000)
Income from continuing
operations 320,000 8,322,000 5,587,000 9,162,000
Discontinued operations:
Gain (loss) on sale of
real estate held for
sale, net of tax -- -- -- 110,000
Net Income $320,000 $8,322,000 $5,587,000 $9,272,000
Basic earnings per share
Income from continuing
operations $0.06 $1,.67 $1.08 $1.83
Income (loss) from
discontinued operations -- -- -- 0.02
Net income $0.06 $1,67 $1.08 $1,85
Basic weighted average
shares 5,678,427 4,978,407 5,194,367 5,007,779
Diluted earnings per share
Income from continuing
operations $0.06 $1.46 $0.99 $1.61
Income from discontinued
operations -- -- -- 0.02
Net income $0.06 $1.46 $0.99 $1.63
Diluted weighted average
shares 5,771,967 5,711,509 5,621,386 5,698,571
SOURCE Kennedy Wilson
