BEVERLY HILLS, Calif., Nov. 15 /PRNewswire-FirstCall/ -- Kennedy Wilson (OTC: KWIC), a real estate investment and services firm, reported financial results for the nine months ended September 30, 2006 . Net income for the period was $5.7 million or $1.02 per share diluted, compared to $10.8 million or $1.90 per share in the same period of 2005. Total revenue for the period was $29.1 million compared to $71.1 million in the same period of 2005. Pre-tax income for the nine months was $9.6 million , compared to $17.3 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) 887-6459
Kennedy Wilson, Inc. and Subsidiaries
Consolidated Balance Sheets
September 30, December 31,
2006 2005
(Unaudited)
Assets
Cash and cash equivalents $9,631,000 $19,424,000
Accounts receivable 3,539,000 3,562,000
Notes receivable 7,038,000 6,705,000
Real estate 7,497,000 --
Investments in joint ventures 52,914,000 36,346,000
Contracts and other assets, net 3,006,000 2,958,000
Goodwill, net 23,965,000 23,965,000
Total Assets 107,590,000 92,960,000
Liabilities and Stockholders' Equity
Liabilities
Accounts payable $319,000 $332,000
Accrued expenses and other liabilities 2,065,000 1,089,000
Accrued salaries and benefits 2,315,000 4,269,000
Deferred and accrued income taxes 8,743,000 11,704,000
Notes payable 15,948,000 13,132,000
Borrowings under lines of credit 22,317,000 18,947,000
Mortgage loans payable 6,000,000 --
Senior unsecured notes -- 1,667,000
Total liabilities 57,707,000 51,140,000
Commitments and Contingencies
Stockholders' Equity
Preferred stock, $0.01 par value:
5,000,000 shares authorized; none
issued as of September 30, 2006 and
December 31, 2005 -- --
Common stock, $0.01 par value:
50,000,000 shares authorized;
5,675,405 and 5,477,706 shares
issued and outstanding as of
September 30, 2006 and December 31,
2005, respectively 57,000 55,000
Additional paid-in capital 12,617,000 14,883,000
Restricted stock - deferred compensation -- (4,588,000)
Retained earnings 37,209,000 31,470,000
Total stockholders' equity 49,883,000 41,820,000
Total Liabilities and Stockholders'
Equity $107,590,000 $92,960,000
Kennedy Wilson, Inc. and Subsidiaries
Consolidated Statements of Income
(Unaudited)
Three months ended Nine months ended
September 30, September 30,
2006 2005 2006 2005
Revenue
Property management
and leasing fees $3,892,000 $3,728,000 $11,523,000 $11,027,000
Commissions 1,144,000 3,087,000 5,927,000 6,951,000
Sales of residential
real estate -- 11,042,000 -- 17,796,000
Equity in joint venture
income 1,457,000 2,063,000 10,884,000 34,143,000
Interest and other
income 185,000 353,000 739,000 1,163,000
Total revenue 6,678,000 20,273,000 29,073,000 71,080,000
Operating Expenses
Commissions and
marketing expenses 314,000 665,000 1,164,000 1,892,000
Compensation and
related expenses 3,500,000 5,907,000 17,437,000 28,442,000
General and
administrative 1,644,000 1,546,000 4,917,000 5,667,000
Cost of residential
real estate sold -- 8,863,000 -- 14,081,000
Depreciation and
amortization 101,000 180,000 406,000 1,383,000
Total operating
expenses 5,559,000 17,161,000 23,924,000 51,465,000
Total operating income 1,119,000 3,112,000 5,149,000 19,615,000
Non-operating income
(expense)
Gain on sale of asset -- -- 7,060,000 --
Interest expense (820,000) (600,000) (2,298,000) (2,282,000)
Income from continuing
operations before
minority interest in
income, provision for
income taxes and
discontinued operations 299,000 2,512,000 9,911,000 17,333,000
Minority interest in
income (46,000) -- (346,000) --
Income from continuing
operations before
provision for income
taxes and discontinued
operations 253,000 2,512,000 9,565,000 17,333,000
Provision for income
taxes (101,000) (955,000) (3,826,000) (6,614,000)
Income from continuing
operations 152,000 1,557,000 5,739,000 10,719,000
Discontinued operations:
Gain (loss) on sale of
real estate held for
sale, net of tax -- -- -- 110,000
Net Income $152,000 $1,557,000 $5,739,000 $10,829,000
Basic earnings per share
Income from continuing
operations $0.03 $0.31 $1.08 $2.02
Income (loss) from
discontinued operations -- -- -- 0.02
Net income $0.03 $0.31 $1.08 $2.04
Basic weighted average
shares 5,494,709 4,957,225 5,295,627 5,300,300
Diluted earnings per
share
Income from continuing
operations $0.03 $0.30 $1.02 $1.88
Income from discontinued
operations -- -- -- 0.02
Net income $0.03 $0.30 $1.02 $1.90
Diluted weighted average
shares 5,567,366 5,242,895 5,607,021 5,700,129
SOURCE Kennedy Wilson
