Consolidated Cigar Holdings Inc. Reports Record Annual Sales Of $299 Million And Record Basic EPS Of $1.75 Per Share For Fiscal 1997.FT. LAUDERDALE Lauderdale is the name of various places:
- Sales Increase 38%, Net Income Rises 80% for Full Year 1997 Over Prior Year - 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) ) today reported record sales and net earnings for the fiscal year ended December December: see month. 31, 1997. Net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight for the 1997 fourth quarter were $84.2 million versus $64.0 million in the comparable period in 1996. Operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. for the fourth quarter was $26.4 million in 1997 versus $16.2 million for the fourth quarter in 1996. Quarterly net income increased to $15.2 million in 1997 versus $9.0 million in the same period in 1996, a 68% increase. Basic earnings per share for the quarter were 50 cents in 1997 versus 29 cents in the comparable period in 1996, a 72% increase. Diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of for the quarter were 49 cents in 1997 versus 29 cents in the fourth quarter 1996, a 69% increase. Net sales for the fiscal year ended 1997 were $299.1 million versus $216.9 million in 1996, a 38% increase. Operating income for the year was $92.3 million in 1997 versus $54.1 million for 1996, a 71% increase. Net income for 1997 was $53.6 million versus $29.8 million for 1996, an 80% increase. Basic earnings per share were $1.75 in 1997 versus $1.11 for 1996, a 58% increase. Diluted earnings per share were $1.73 in 1997 versus $1.11 for 1996, a 56% increase. On a pro forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma basis, giving effect to the Initial Public Offering as if it had occurred on January January: see month. 1, 1996 and accounting for the related increase in common shares outstanding, basic earnings per share increased 80% for 1997 compared to 1996. Both pro forma basic and pro forma diluted earnings per share for 1996 were 97 cents. The increase in sales in the fourth quarter reflects the Company's ability to meet demand in a market that continued a trend of growth in both premium and mass-market mass-mar·ket adj. Of, relating to, or produced for consumption in large numbers, especially when sold in supermarkets, in drugstores, and at newstands: a mass-market paperback. tr.v. cigars. Operating margins Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: increased to 31.4% and 30.9% for the fourth quarter and full year 1997, respectively, versus 25.4% and 24.9% for the comparable periods in 1996. The operating margin increased due to higher gross profit margins Gross profit margin Gross profit divided by sales, which is equal to each sales dollar left over after paying for the cost of goods sold. gross profit margin A measure calculated by dividing gross profit by net sales. and a reduction in selling, general and administrative expenses as a percent of sales. Theo Folz, the Company's Chief Executive Officer, said: "We are very pleased that strong demand in all major aspects of our business has enabled us to exceed our sales forecast Sales forecast A key input to a firm's financial planning process. External sales forecasts are based on historical experience, statistical analysis, and consideration of various macroeconomic factors. for the year. We believe continuing strength in premium cigars and mass-market, natural-wrapped cigars, will help drive our sales growth in the future. Even more significant, however, is the fact that we have consistently achieved the highest operating margins in the industry." He added: "Consolidated Cigar looks forward to sustained growth in sales and profits for 1998 and beyond. Over the last four years we have invested a tremendous amount of capital and resources to significantly increase our capacity to produce quality cigars. We will spend more capital in 1998 than we have spent in any of the last fifteen years, which will further increase our capacities. This effort has put us in a position to better service the demand for quality cigars and will allow us to continue our sales growth in the future. In spite of in opposition to all efforts of; in defiance or contempt of; notwithstanding. See also: Spite the apparent over-supply of "no-name" brand cigars, we believe that consumers have clearly indicated a preference for strong brand names that are backed by a long tradition of consistent, superior quality - the kind of quality that we deliver in each and every cigar." 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 "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 Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-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) an inability on the part of the Company to increase its production of premium cigars as a result of, among other things, a shortage of trained laborers, raw materials or production capacity; (iii) 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. ; (iv) 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 and pipe tobacco; and (v) 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. -0-
CONSOLIDATED CIGAR HOLDINGS INC. AND SUBSIDIARIES
FINANCIAL HIGHLIGHTS
(Dollars in thousands, except per share data)
Fourth Quarter Ended
December 31, December 31,
1997 1996
---------- ----------
Net sales $ 84,160 $ 64,048
Net income 15,200 9,041
Basic net income per common share 0.50 0.29
Basic weighted average common shares
outstanding 30,693,332 30,675,000
Diluted net income per common share $ 0.49 $ 0.29
Diluted weighted average common shares
outstanding 31,290,664 30,842,502
Fiscal Year Ended
December 31, December 31,
1997 1996
---------- ----------
Net sales $ 299,067 $ 216,868
Net income 53,591 29,795
Basic net income per common share 1.75 1.11
Basic weighted average common shares
outstanding 30,681,926 26,890,574
Diluted net income per common share $ 1.73 $ 1.11
Diluted weighted average common shares
outstanding 31,018,727 26,963,752
Pro forma basic net income per common
share (a) $ 1.75 $ 0.97
Pro forma basic weighted average common
shares outstanding (a) 30,681,926 30,675,000
Pro forma diluted net income per
common share (a) $ 1.73 $ 0.97
Pro forma diluted weighted average
common shares outstanding (a) 31,018,727 30,748,178
(a) Pro forma per common share information reflects the Initial
Public Offering as if it occurred on January 1, 1996
CONSOLIDATED CIGAR HOLDINGS INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF EARNINGS
(Dollars in thousands, except per share data)
Fourth Quarter Ended Fiscal Year Ended
Dec. 31, Dec. 31, Dec. 31, Dec. 31,
1997 1996 1997 1996
----------- ----------- ----------- -----------
Net sales $ 84,160 $ 64,048 $ 299,067 $ 216,868
Cost of sales 47,356 37,622 167,285 126,013
----------- ----------- ----------- -----------
Gross profit 36,804 26,426 131,782 90,855
Selling, general and
administrative expenses 10,418 10,180 39,468 36,776
----------- ----------- ----------- -----------
Operating income 26,386 16,246 92,314 54,079
Interest expense, net (2,933) (2,658) (10,551) (10,619)
Miscellaneous (1,116) (375) (2,953) (1,216)
----------- ----------- ----------- -----------
Income before provision
for income taxes 22,337 13,213 78,810 42,244
Provision for income
taxes (7,137) (4,172) (25,219) (12,449)
----------- ----------- ----------- -----------
Net income $ 15,200 $ 9,041 $ 53,591 $ 29,795
=========== =========== =========== ===========
Basic net income per
common share $ 0.50 $ 0.29 $ 1.75 $ 1.11
=========== =========== =========== ===========
Basic weighted average
common shares
outstanding 30,693,332 30,675,000 30,681,926 26,890,574
=========== =========== =========== ===========
Diluted net income
per common share $ 0.49 $ 0.29 $ 1.73 $ 1.11
=========== =========== =========== ===========
Diluted weighted
average common shares
outstanding 31,290,664 30,842,502 31,018,727 26,963,752
=========== =========== =========== ===========
Pro forma basic net
income per common
share (a) $ 1.75 $ 0.97
=========== ===========
Pro forma basic
weighted average
common shares
outstanding (a) 30,681,926 30,675,000
=========== ===========
Pro forma diluted net
income per common
share (a) $ 1.73 $ 0.97
=========== ===========
Pro forma diluted
weighted average
common shares
outstanding (a) 31,018,727 30,748,178
================== =================
(a) Pro forma per common share information reflects the Initial
Public Offering as if it occurred on January 1, 1996
CONTACT: Robinson Lerer & Montgomery, New York Montgomery, New York may refer to:
Mary Mary, the mother of Jesus Mary, in the Bible, mother of Jesus. Christian tradition reckons her the principal saint, naming her variously the Blessed Virgin Mary, Our Lady, and Mother of God (Gr., theotokos). Her name is the Hebrew Miriam. Ann ANN, Scotch law. Half a year's stipend over and above what is owing for the incumbency due to a minister's relict, or child, or next of kin, after his decease. Wishaw. Also, an abbreviation of annus, year; also of annates. In the old law French writers, ann or rather an, signifies a year. Dunnell, 212/484-7797 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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