Capital Properties, Inc. Announces Third Quarter 2003 Results EAST PROVIDENCE, R.I., Oct. 31 /PRNewswire-FirstCall/ -- Today, Capital Properties, Inc. (Amex Symbol "CPI") reported net income of $960,000 and $944,000 for the three and nine months ended September 30, 2003. In September 2003, the Company and the City of Providence agreed to an omnibus settlement in the amount of $1,700,000 covering all litigation resulting from tax appeals filed by the Company with the City for real property taxes covering tax years 1994 through 1999 and 2001 through 2003. The settlement has been approved by the City Council and the Company anticipates payment before year-end. Therefore, the Company reported the $1,700,000 as leasing revenue in the third quarter of 2003. For the three and nine months ended September 30, 2002, the Company reported a net loss of $160,000 and $356,000, respectively. Capital Properties, Inc.'s business consists of the leasing of certain of its real estate interests in downtown Providence, Rhode Island, and locations along interstate and primary highways in Rhode Island and Massachusetts for outdoor advertising purposes, and the operation of its petroleum storage facilities in East Providence, Rhode Island. For the three and nine months ended September 30, 2003 (exclusive of the property tax settlement), revenue from leasing increased 25% and 23%, respectively, from 2002 due principally to higher option payments received on those leases which will not commence until construction begins, renewals of short-term parking leases, revenue associated with the three billboard locations added in the fourth quarter of 2002, and the commencement of contingent rentals relating to one developed parcel. For the three months ended September 30, 2003, expenses applicable to leasing remained approximately at the 2002 level. However, the three months ended September 30, 2002 included a $92,000 payment to Amtrak to settle a dispute involving electricity in the Company's parking garage adjacent to the Amtrak passenger station. Excluding the Amtrak settlement, for the three months ended September 30, 2003, expenses applicable to leasing increased 19% from 2002 due to an increase in professional fees and property tax expense. Excluding the Amtrak settlement, for the nine months ended September 30, 2003, expenses applicable to leasing increased 4% over 2002, due principally to an increase in property tax expense offset by a decrease in professional fees. For the three and nine months ended September 30, 2003, revenue from petroleum storage facilities increased 14% and 17%, respectively, from 2002 resulting principally from higher monthly fees under the Company's terminal lease agreement and higher contingent revenues due to a colder winter, offset in part by the March 31, 2003 termination of an agreement for the use of the Company's Wilkesbarre Pier. For the three months ended September 30, 2003, expenses applicable to petroleum storage facilities increased 13% from 2002 principally due to an increase in repairs and maintenance expense offset in part by a decrease in legal fees associated with litigation involving the Wilkesbarre Pier. For the nine months ended September 30, 2003, expenses applicable to petroleum storage facilities increased 22% from 2002 principally due to an increase in repairs and maintenance expense, insurance costs and expenses associated with the higher volume of throughput at the petroleum terminal facilities. For the three and nine months ended September 30, 2003, general and administrative expenses remained approximately at the 2002 level. Financial Summary Three Months Ended Nine Months Ended September 30 September 30 2003 2002 2003 2002 Total revenue $3,020,000 $1,095,000 $5,739,000 $3,387,000 Total expenses $1,423,000 $1,330,000 $4,182,000 $3,865,000 Income (loss) before income taxes $1,597,000 $(235,000) $1,557,000 $(478,000) Net income (loss) $960,000 $(160,000) $944,000 $(356,000) Basic income (loss) per common share $.29 $(.05) $.29 $(.11) Certain written statements made in this press release may contain "forward-looking statements" which represent the Company's expectations or beliefs concerning future events. Certain risks, uncertainties and other important factors are detailed in reports filed by the Company with the Securities and Exchange Commission, including Forms 8-K, 10-KSB and 10-QSB. The Company cautions that these statements are further qualified by important factors that could cause actual results to differ materially from those in the forward-looking statements. CONTACT: Barbara J. Dreyer, Treasurer (401) 435-7171 DATASOURCE: Capital Properties, Inc. CONTACT: Barbara J. Dreyer, Treasurer of Capital Properties, Inc., +1- 401-435-7171

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