Acquisition Hikes Revenue for Johnstown American
Johnstown American Cos., a real estate services firm with Orange County-based subsidiaries, has reported record second-quarter earnings, in part due to its recent acquisition of Newport Beach-based Business Properties Brokerage Co.
For the quarter ended Feb. 28, the Atlanta Ga.-based company enjoyed profits of $2.2 million, up 19% from the $1.9 million recorded a year earlier. Revenues for the period rose 102% to $17.6 million from $8.7 million in the year-ago quarter.
For the first six months of the 1985 fiscal year, the company’s earnings were $3.9 million, up 27% from a year ago. Revenues for the first two quarters climbed to $32.2 million, an increase of 94% from the $16.6 million recorded during the comparable year-ago period.
John Lie-Nielsen, chairman and chief executive, attributed the company’s strong performance to its acquisition program and overall growth within its subsidiaries. Lie-Nielsen said property management revenues increased 93% and brokerage commissions jumped 319% during the six months.
The growth in brokerage commissions was largely due to the company’s $4.5-million purchase last December of Business Properties Brokerage Co. The company also purchased Professional Community Management Inc. in El Toro in July, 1983.