The Castle Group, Inc. Announces Financial Results for Third Quarter 2008
November 14 2008 - 5:14PM
PR Newswire (US)
- Total Revenues for the nine months of 2008 through September
decreased only 1% to $15,324,895 from $15,520,557 in the same
period last year despite a soft Hawaii tourism market. HONOLULU,
Nov. 14 /PRNewswire-FirstCall/ -- The Castle Group, Inc. (OTC
Bulletin Board: CAGU), a holding company for Castle Resorts &
Hotels, today announced its financial results for the third quarter
and first nine months of 2008 ended September 30, 2008. Total
Revenues for the nine months of 2008 through September decreased
just 1% to $15,324,895 from $15,520,557 in the same period last
year despite a soft Hawaii tourism market. Total Revenues for the
third quarter dropped 16% to $4,696,344 from $5,575,882 due to
continued decreases in occupancy and room rates in the difficult
tourism environment in Hawaii. Castle's operations outside of
Hawaii tempered the impact on the overall revenue picture as did
the expansion of the portfolio of properties under management
during the past nine months. "We are growing our existing market
share at nearly all of our destinations and properties; however
with the total tourism marketplace shrinking, our occupancies are
falling below prior year's levels, which in turn drives down
overall revenues," said Alan Mattson, Chief Operating Officer of
The Castle Group, Inc. With the fall off in demand in the third
quarter, the Company initiated several cost control and expense
reduction initiatives during the past few months which buffered the
impact of the revenue decrease on Net Income. Net Income decreased
by $135,842 in the third quarter to a loss of ($120,519) as
compared to Net Income of $15,323 in the year earlier period. Alan
Mattson, Chief Operating Officer of The Castle Group, Inc.
continued, "These cost control measures will continue into the
fourth quarter of 2008 and then 2009 until the operating
environment improves." The Company also notes the expansion in the
number of properties under management with the addition of the
Hali'i Kai at Waikoloa on the Big Island of Hawaii. This is
Castle's first entry into the Waikoloa Resort area which is located
on the Kohala Coast north of Kona. The Hali'i Kai has 192 two and
three bedroom Oceanfront luxury villas which range in size from
1,204 to 1,930 square feet. The addition of the Hali'i Kai marks an
important addition to Castle's portfolio of properties as a
destination for luxury oriented travelers. Third Quarter 2008 and
Year to Date Financial Results Year to date, Total Revenues
decreased 1% to $15,324,895 from $15,520,557 as a result of the
softening Hawaii market offset by revenues from new properties
under contract, the strengthening of the New Zealand dollar and
changes in rates and occupancy at the properties under Castle's
management worldwide. Total revenues decreased by 16% to $4,696,344
for the three months ended September 30, 2008, from $5,575,882 in
the comparable period in 2007. Operating Expenses during the third
quarter decreased 11% year over year to $4,838,974 from $5,440,688.
Operating Expenses increased 4% to $16,016,048 from $15,460,435 in
the first nine months of 2007, primarily as a result of expenses
related to additional properties added to the portfolio in the past
year and prior to the expense reduction measures in the second and
third quarter. Net Loss for the quarter was ($120,519) as compared
to profit of $15,323 in the third quarter of last year. Year to
date the Net Loss totaled ($566,743) as compared to a loss of
($134,537) for the first nine months of 2007. "The Company
continues to monitor all aspects of our operations during this very
challenging environment in Hawaii and the other destinations we
serve. In these difficult times we appreciate and acknowledge the
dedication of our employees and the understanding of our property
owners," said Rick Wall, Chairman, and CEO of the Castle Group,
Inc. For more information, see the Company's Quarterly Report on
Form 10-Q for the quarter ending September 30, 2008, as filed with
the Securities and Exchange Commission. About The Castle Group,
Inc. Headquartered in Honolulu, The Castle Group, Inc. provides
management and related hospitality services to hotel and resort
condominiums under the trade name "Castle Resorts & Hotels."
Since 1993, Castle's geographic presence has expanded from the
Hawaiian Islands to additional markets throughout the Asia/Pacific
region, including Guam, Saipan, Thailand, and New Zealand. Castle's
services include pre-opening technical services, customized hotel,
and resort operations management, state-of-the-art sales, marketing
and reservations, expert property management and cost-effective
renovations and interior design. Castle offers travelers
accommodations ranging from hotel guest rooms to fully equipped
spacious resort condominiums. This press release contains
forward-looking statements made under the "safe harbor" provisions
of the U.S. Private Securities Litigation Reform Act of 1995.
Forward looking statements are based upon the current plans,
estimates, and projections of The Castle Group's management and are
subject to risks and uncertainties which could cause actual results
to differ from the forward looking statements. These include, but
are not limited to, risks and uncertainties outlined in the
Company's periodic filings with the U.S. Securities and Exchange
Commission. The Castle Group does not assume any obligation to
update the information contained in this press release. DATASOURCE:
The Castle Group, Inc. CONTACT: Donna Wheeler, Senior Director of
Marketing of The Castle Group, Inc., 1-800-733-7753,
+1-808-524-0900, fax, +1-808-521-9994, Web Site:
http:///www.CastleResorts.com
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