06 August 2003 16:10
Harbor Global Company Ltd. Reports Earnings for the Quarter Ended June 30, 2003
BOSTON--(BUSINESS WIRE)--Aug. 6, 2003--Harbor Global Company Ltd. ("Harbor Global" or the
"Company") (OTC BB:HRBG) reported net income of $2.7 million ($0.48 per share) on revenues of $2.9 million in
the second quarter of 2003 compared with net income of $1.0 million ($0.18 per share) on revenues of $2.9 million for
the second quarter of 2002. The $1.7 million increase in income was attributable principally to a $1.1 million increase
in realized portfolio gains from the Russian real estate management and investment management operations and a gain of
$0.9 million recorded on the sale to HSBC Bank USA ("HSBC") of the Company's right to receive
supplemental payments from Ashanti Goldfields Teberebie Limited ("Ashanti") associated with the sale by
Pioneer Goldfields II Limited, a wholly-owned subsidiary of the Company, of its gold mining operations in Ghana during
2000. These gains were offset partially by a $0.2 million increase in management fees paid to Calypso Management LLC
("Calypso Management") in accordance with the distribution to shareholders during the second quarter of
2003.
HARBOR GLOBAL COMPANY LTD. All amounts except per share are in millions of U.S. dollars Second Quarter Six Months Ended
June 30 2003 2002 2003 2002 Revenues $2.9 $2.9 $6.2 $5.9 Earnings $2.7 $1.0 $4.5 $2.0 - Continuing Operations 2.7 1.0
4.5 1.6 - Discontinued Operations -- -- -- 0.4 Per Share Earnings $0.48 $0.18 $0.80 $0.36 - Continuing Operations 0.48
0.18 0.80 0.28 - Discontinued Operations -- -- -- 0.08 Segment Information Revenues Russian Real Estate Management and
Investment Management $2.6 $2.4 $5.1 $4.7 Real Estate Management 0.2 0.2 0.5 0.4 Other 0.1 0.3 0.6 0.8 Segment Profit
(Loss) Russian Real Estate Management and Investment Management $2.1 $1.2 $3.1 $1.6 Real Estate Management (0.2) (0.3)
(0.5) (0.5) Other 0.8 0.1 1.9 0.5
For the six months ended June 30, 2003, the Company reported net income of $4.5 million ($0.80 per share) compared
with net income of $2.0 million ($0.36 per share) for the first half of 2002. Net income from continuing operations was
$4.5 million ($0.80 per share), an increase of $2.9 million compared with net income from continuing operations of $1.6
million ($0.28 per share) during the first six months of 2002. The increase was attributable primarily to a $1.3 million
gain from the early settlement of the Company's note payable to Pioneer Investment Management USA Inc., higher
realized portfolio gains of $1.2 million from the Russian real estate management and investment management operations
and a $0.9 million gain recorded in connection with the sale to HSBC of the Company's right to receive supplemental
payments from Ashanti. These increases were offset by management fees paid to Calypso Management of $0.6 million
associated with the second quarter 2003 distribution to shareholders. Income from discontinued timber operations for the
six months ended June 30, 2002 was $0.4 million ($0.08 per share).
--30--SK/bo* CONTACT: Harbor Global Company Ltd. Donald H. Hunter, 617-878-1600
This press release, as well as future oral and written statements of Company management, contains forward-looking
statements within the meaning of the federal securities laws. All forward-looking statements are based on currently
available information and management expectations that involve substantial risks and uncertainties that could cause
actual results to differ materially from the results expressed herein. Important factors that could cause actual results
to differ materially from those indicated by such forward-looking statement include, but are not limited to, the
following: economic, political and regulatory stability in Russia and other emerging markets in which the Company
operates; the success of our Russian real estate management operations; the Company's limited history as an
independent company; and the Company's ability to retain key officers and managers. Additional information
concerning potential factors that could affect future financial results is detailed from time to time in the
Company's periodic reports filed with the U.S. Securities and Exchange Commission.
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