Consolidate Cigar Holdings Inc. Makes Announcement.FT. LAUDERDALE, Fla.--(BUSINESS WIRE)--March 10, 1998-- Consolidated Cigar Holdings Inc. (NYSE NYSE See: New York Stock Exchange :CIG CIG Ceiling (height above ground level to base of clouds) CIG Conference Intergouvernementale (French: Intergovermental Conference) CIG Conservation Innovation Grants (USDA NRCS) ) announced that it expects that first quarter results will show little or no earnings growth compared with first quarter 1997, before considering an extraordinary charge related to the refinancing of the Company's public debt which occurred in February, and will fall short of current analyst estimates. A number of factors have contributed to reduced sales including non-recurring timing issues related to retailer/wholesale inventory imbalances, the excess of historically unknown brands in the marketplace and production problems in the Company's supplier's new facility in Mexico. The Company expects that normal ordering, purchasing and production patterns will resume once wholesalers re-establish their customary balance of product. The Company believes that the first quarter will not be reflective of the entire year and expects that earnings per share for 1998 will exceed 1997 by more than 20 percent. Consolidated Cigar Holdings Inc. makes and distributes cigars and related products through Consolidated Cigar Corporation, the largest manufacturer and marketer of cigars in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. . The Company believes it is the largest manufacturer and marketer of premium cigars and natural-wrapped mass-market cigars in the United States, which are the fastest growing segments of the cigar industry. -0- Forward-Looking Statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. : When used in this news release, the words "expect," "believe," "should," "would" and similar expressions which are not historical are intended to identify forward-looking statements that involve risks and uncertainties. Such statements include, without limitation, the Company's beliefs about trends in the cigar industry and its views about the long-term future of the industry and the Company. In addition to factors that may be described in the Company's Securities and Exchange Commission filings, the following factors, among others, could cause the Company's financial performance to differ materially from that expressed in any forward-looking statements made by, or on behalf of, the Company: (i) changes in consumer preference resulting in a decline in the demand for and consumption of cigars; (ii) continued imbalances in wholesaler's inventory of the Company's products; (iii) a shortage of trained laborers, raw materials or production capacity; (iv) additional governmental regulation of tobacco products or further tobacco industry litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. ; (v) enactment of new or significant increases in existing excise taxes excise taxes, governmental levies on specific goods produced and consumed inside a country. They differ from tariffs, which usually apply only to foreign-made goods, and from sales taxes, which typically apply to all commodities other than those specifically exempted. on cigars or pipe tobacco; and (vi) the failure to receive a tax credit with respect to the Company's Puerto Rico Puerto Rico (pwār`tō rē`kō), island (2005 est. pop. 3,917,000), 3,508 sq mi (9,086 sq km), West Indies, c.1,000 mi (1,610 km) SE of Miami, Fla. taxable earnings or the elimination of an exemption from Puerto Rican Puer·to Ri·co Abbr. PR or P.R. A self-governing island commonwealth of the United States in the Caribbean Sea east of Hispaniola. income taxes. The Company does not undertake any responsibility to update the forward-looking statements contained in this release. CONTACT: Mary Ann Dunnell - (212) 484-7797 or John Quirk quirk n. 1. A peculiarity of behavior; an idiosyncrasy: "Every man had his own quirks and twists" Harriet Beecher Stowe. 2. - (212) 484-7699 |
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