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RELEASE: IMMEDIATE
GETTY REALTY CORP. ANNOUNCES
FINANCIAL RESULTS FOR THE THIRD QUARTER
ENDED OCTOBER 31, 2000, DECLARATION OF DIVIDENDS
AND EXECUTIVE CHANGES
JERICHO, NY, December 13, 2000 --- Getty Realty Corp. (NYSE-GTY) today
reported the Company's financial results for the third quarter ended October 31,
2000.
Revenues from rental properties for the quarter and nine months ended
October 31, 2000 were $14.6 million and $44.0 million, respectively, which
amounts were comparable to the same periods last year.
Pre-tax income for the quarter ended October 31, 2000 amounted to $5.4
million as compared with $7.7 million for the comparable period last year. The
decrease in earnings for the three month period was principally due to $2.3
million of lower gains on asset dispositions and $.6 million of higher
environmental expenses, which were partially offset by $.6 million of lower
general and administrative expenses.
Pre-tax income for the nine months ended October 31, 2000 amounted to
$17.0 million as compared with $19.8 million for the comparable period last
year. The decrease in earnings for the nine month period was principally due to
$2.7 million of lower gains on asset dispositions, a $1.2 million favorable
lawsuit settlement in the prior year and $.8 million of higher interest expense,
which were partially offset by $1.9 million of lower general and administrative
expenses.
For the quarter ended October 31, 2000, the Company had net earnings of
$3.1 million or $.15 per diluted common share as compared with $4.5 million or
$.23 per diluted common share for the quarter ended October 31, 1999. For the
nine months ended October 31, 2000, the Company had net earnings of $9.8 million
or $.47 per diluted common share as compared with $11.5 million or $.56 per
diluted common share for the nine months ended October 31, 1999.
Pursuant to the current 300,000 share stock buyback program, the
Company repurchased since the end of its second quarter 156,500 shares of its
common stock and 5,300 shares of its preferred stock at an aggregate purchase
price of approximately $1.9 million.
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Leo Liebowitz, President and Chief Executive Officer, reported that at
the Board of Directors meeting held on Tuesday, December 12, 2000, the Directors
took the following actions and declared a quarterly cash Preferred Stock
dividend in the amount of $.44375 per share payable on February 14, 2001 to
holders of record on January 31, 2001, and a quarterly Common Stock dividend in
the amount of $ .15 per share payable on January 11, 2001 to holders of record
on December 29, 2000.
Mr. Liebowitz also announced that a subsidiary of OAO Lukoil, Russia's
largest oil company, has acquired approximately 72% of the outstanding common
stock of Getty Petroleum Marketing Inc., the Company's principal tenant,
pursuant to a recent tender offer. As a result, Getty Realty Corp. intends to
further evaluate the conversion into a Real Estate Investment Trust (REIT) in
2001.
The Board of Directors of the Company approved a change of the
Company's fiscal year end to December 31, from January 31, effective December
31, 2000.
Mr. Liebowitz also announced today that John J. Fitteron, Senior Vice
President, Treasurer and Chief Financial Officer, has decided to leave the
Company effective January 31, 2001.
Mr. Liebowitz said that Mr. Fitteron joined the Company in 1986 and has
been a major contributor to the success of Getty Realty Corp. and its
predecessor, Getty Petroleum Corp. "His contribution and dedication over the
years are greatly appreciated. I am also pleased that he has agreed to provide
future consulting services to the Company," Mr. Liebowitz added.
Mr. Fitteron said "I have been looking forward to having more time to
spend with my family and my other interests."
Mr. Liebowitz also announced the following executive appointments:
Mr. Liebowitz said that Randi Young Filip, who has served as Assistant
General Counsel and Corporate Secretary, and has been with the Company since
1986, has been elected Vice President, General Counsel and Corporate Secretary
for the Company.
Thomas Stirnweis, who has served since 1988 as Manager of Financial
Reporting and Analysis for both Getty Petroleum Marketing Inc. and Getty
Petroleum Corp., has joined the Company as Corporate Controller and Treasurer
effective January 1, 2001.
Kevin C. Shea, who has had primary responsibility for managing the
Company's Real Estate Portfolio as Director of National Real Estate Development,
has been elected Vice President, and is assuming additional corporate
responsibility for Environmental Affairs. He will interface with Delta
Environmental Consultants, Inc. as discussed below. Mr. Shea has been with the
Company since 1984, and will also continue his responsibility for corporate-wide
real estate matters.
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As mentioned above, the Company has entered into an agreement with
Delta Environmental Consultants, Inc. (Delta) to provide environmental services.
Delta's responsibility will be to manage the Company's environmental remediation
efforts and to provide management personnel, field engineers and administrative
staff. Delta, with its extensive experience in the petroleum industry, will
provide Getty with its expertise and professional management capabilities. The
Company's environmental efforts relate principally to certain environmental
obligations of the petroleum marketing business which were retained at the time
this business was spun-off to the Company's shareholders in 1997.
Getty Realty Corp. is a real estate company specializing in service
stations, convenience stores and petroleum marketing terminals. The Company owns
and leases approximately 1,100 properties in the Eastern United States.
Certain statements in this news release may constitute "forward-looking
statements" within the meaning of the Private Securities Litigation Reform Act
of 1995. When used herein, the words"believes", "expects", "plans", "estimates"
and similar expressions are intended to identify forward-looking statements.
Such forward-looking statements involve known and unknown risks, uncertainties
and other factors which may cause the actual results, performance and
achievements of the Company to be materially different from any future results,
performance or achievements expressed or implied by such forward-looking
statements.
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- more -
Getty Realty Corp. and Subsidiaries
Consolidated Statements of Operations
(unaudited)
(in thousands, except per share amounts)
<TABLE>
<CAPTION>
THREE MONTHS ENDED OCTOBER 31, NINE MONTHS ENDED OCTOBER 31,
2000 1999 2000 1999
<S> <C> <C> <C> <C>
Revenues:
Revenues from rental properties $14,580 $14,628 $44,005 $44,054
Other income 326 2,530 1,179 4,921
------- ------- ------- -------
14,906 17,158 45,184 48,975
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Rental property expenses 2,913 2,986 9,040 9,085
Environmental expenses 2,261 1,672 6,424 5,851
General and administrative expenses 921 1,536 2,546 4,431
Depreciation and amortization 2,436 2,552 7,442 7,794
Interest expense 978 702 2,758 1,995
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9,509 9,448 28,210 29,156
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Earnings before provision for income taxes 5,397 7,710 16,974 19,819
Provision for income taxes 2,272 3,250 7,137 8,330
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Net earnings 3,125 4,460 9,837 11,489
Preferred stock dividends 1,272 1,282 3,827 3,846
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Net earnings applicable to
common stockholders $ 1,853 $ 3,178 $ 6,010 $ 7,643
======= ======= ======= =======
Net earnings per common share:
Basic $ .15 $ .23 $ .47 $ .56
Diluted $ .15 $ .23 $ .47 $ .56
Weighted average common shares outstanding:
Basic 12,643 13,567 12,878 13,567
Diluted 12,644 13,570 12,878 13,569
</TABLE>
Contact: John J. Fitteron
(516) 338 - 2600
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