NEW YORK.- Sotheby’s Holdings, Inc., the parent company of Sotheby’s worldwide live and online auction businesses, art-related financing and real estate brokerage activities, today announced results for the nine months and third quarter ended September 30, 2002. For the first nine months of 2002 the Company reported total revenues of $220.8 million, compared to $225.2 million for the corresponding period of 2001. Net loss for the first nine months of 2002 was ($48.2) million, or ($0.78) per share, compared to a net loss of ($41.3) million, or ($0.68) per share for the corresponding period of 2001.
During the first nine months of 2002, the Company recorded pre-tax charges of $35.9 million, or ($0.49) per share, primarily related to antitrust related matters ($19.2 million) and employee retention costs ($18.3 million). The antitrust related charges principally consist of the $20.1 million European Commission fine, which was assessed on October 30th and is reflected in our third quarter results. Excluding these charges, the Company’s loss per share would have been ($0.29) for the first nine months of 2002. During the first nine months of 2001, the Company recorded pre-tax charges of $24.0 million, or ($0.25) per share primarily related to employee retention costs and the Company’s restructuring plans. Excluding these charges the Company’s loss per share would have been ($0.43) for the first nine months of 2001. In summary, excluding antitrust related charges, employee retention costs and restructuring charges, the Company’s loss per share improved to ($0.29) from ($0.43), a $0.14 per share, or 33%, improvement.
For the quarter ended September 30, 2002, the Company reported total revenues of $48.4 million, compared to $38.4 million in the corresponding period of 2001, an increase of 26%. This increase is primarily attributable to the July sale in London of Sir Peter Paul Rubens’ Massacre of the Innocents for the record price of $76.7 million. The Company’s net loss for the third quarter of 2002 was ($43.0) million, or ($0.70) per share, compared to a net loss for the third quarter of 2001 of ($33.1) million, or ($0.54) per share. During the third quarter of 2002, the Company recorded pre-tax charges of $26.5 million, or ($0.40) per share, primarily related to the fine of $20.1 million resulting from the decision of the European Commission in its antitrust investigation, as well as $5.8 million in employee retention costs. Excluding these charges, the Company’s loss per share would have been ($0.31) for the third quarter of 2002. During the third quarter of 2001, the Company recorded pre-tax charges of $14.1 million, or ($0.14) per share, primarily related the Company’s restructuring plans and employee retention costs. Excluding these charges, the Company’s loss per share would have been ($0.40) for the third quarter of 2001.
The third quarter is historically a period of minimal sales activity in the art auction market (typically less than 10% of total annual auction sales for Sotheby’s) and, therefore, the Company traditionally reports a loss in the period.