CLST Announces First Quarter 2009 Preliminary Financial Results
March 25 2009 - 7:30AM
PR Newswire (US)
DALLAS, March 25 /PRNewswire-FirstCall/ -- CLST Holdings, Inc.
(Pink Sheets: CLHI) announced today the following preliminary FCC
Investment Trust I unaudited financial results for the quarter
ended February 28, 2009. On November 10, 2008 the board of
directors unanimously approved the purchase of all the outstanding
equity interest of FCC Investment Trust I from Drawbridge Special
Opportunities Fund LP. The purchase price was approximately $41.0
million, which was financed by $6.1 million of company cash on hand
and by a $34.9 million non-recourse term loan from Fortress Credit
CO LLC, an affiliate of the seller. The Company is now responsible
for the collection of the consumer notes receivable of the Trust,
and we now have preliminary, unaudited results for the first
quarter of 2009 as described below. Certain Preliminary, Unaudited
First Quarter 2009 Results -- FCC Investment Trust I collections
from customers for the 2009 first quarter were approximately $3.1
million, representing $1.6 million of principal payments and $1.5
million of interest and other charges. -- First quarter notes
receivable ending principal balance was $38.6 million, which
represents 94 percent of the original purchase price of $41.0
million. The ending balance consists of approximately 5,582
customer accounts, with an average balance of approximately $6,900
and an average FICO score of 655. The average interest rate for
these accounts was 14.4 percent. -- As of February 28, 2009, the
outstanding balance on our notes payable was $32.5 million,
representing 93 percent of our original balance. We have retired
$2.4 million of our obligation to Drawbridge, and we have paid
$495,000 in interest expense, all from customer collections. --
During the quarter, we generated $740,000 of net cash with an
additional $194,000 received in March 2009. This brings our
cumulative net cash generated to $931,000, net of all expenses and
required payments to Drawbridge. "We ended our 2009 first quarter
with encouraging results, despite the broad economic turmoil,"
Robert A. Kaiser, President and CEO of CLST Holdings, Inc., said.
"As most investors will recall, we made an initial cash payment of
$6.1 million to acquire FCC Investment Trust I. We have now
received nearly 15 percent of our original investment while
maintaining 94 percent of the original asset. Further, we are
pleased that we have retired $2.3 million of our loan obligations
through collections originated by the Trust. We look forward to
reporting our full first quarter 2009 financial results in mid
April." The Company plans to file its full first quarter 2009
financial results in mid April with the filing of its Form 10-Q.
Investors are encouraged to review the full Form 10-Q for
additional information on the Trust and a comprehensive review of
the Company's first quarter 2009 financial results. About CLST
Holdings, Inc. The Company was founded in 1981 and was formerly
known as CellStar Corporation. It changed its name to CLST
Holdings, Inc. in 2007. While CLST Holdings, Inc. continues to
follow its adopted plan of dissolution, approved by stockholders on
March 28, 2007, it is also engaged in the business of holding and
collecting consumer notes receivable. Forward-Looking Statements
Certain information included herein may constitute
"forward-looking" statements for purposes of the Securities Act of
1933, as amended, and the Securities Exchange Act of 1934, as
amended (as so amended the "Exchange Act"), and, as such, may
involve known and unknown risks, uncertainties and other factors
that may cause the actual results, performance or achievements of
the Company to be materially different from future results,
performance or achievements expressed or implied by such
forward-looking statements. When used in this report, the words
"anticipates," "estimates," "believes," "continues," "expects,"
"intends," "may," "might," "could," "should," "likely," and similar
expressions are intended to be among the statements that identify
forward-looking statements. Statements of various factors that
could cause the actual results, performance or achievements of the
Company to differ materially from the Company's expectations
("Cautionary Statements") are disclosed, including, without
limitation, those discussed in the "Risk Factors" section in Item
1A of the Company's Form 10-K, those statements made in conjunction
with the forward-looking statements and otherwise herein. All
forward-looking statements attributable to the Company are
expressly qualified in their entirety by the Cautionary Statements.
We have no intention, and disclaim any obligation, to update or
revise any forward-looking statements, whether as a result of new
information, future results or otherwise. DATASOURCE: CLST
Holdings, Inc. CONTACT: Robert A. Kaiser, President, Chief
Executive Officer of CLST Holdings, Inc., +1-972-267-0500; or Hala
Elsherbini, Senior Vice President and COO, Halliburton Investor
Relations, +1-972-458-8000, for CLST Holdings, Inc.
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