Consolidated Cigar Holdings Inc. Reports Record Third Quarter 1997 Earnings of $16.8 Million or $0.55 Per Share.FT. LAUDERDALE, Fla.--(BUSINESS WIRE)--Oct. 27, 1997 -- - Third Quarter Net Income Up 75% 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 third quarter and nine months of 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 third quarter were $82.6 million versus $60.6 million in the comparable period in 1996, a 36% increase. 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 third quarter was $27.8 million in 1997 versus $16.6 million for the third quarter in 1996, an increase of 67%. Quarterly net income increased 75% to $16.8 million in 1997 versus $9.6 million in the same period in 1996. Net income per share for the quarter was 55 cents in 1997 versus 35 cents in the comparable period in 1996. 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 1, 1996 and accounting for the related increase in common shares outstanding, earnings per share increased 77% for the third quarter of 1997. Pro forma earnings pro forma earnings Income not necessarily calculated in accordance with generally accepted accounting principles. For example, a company might report pro forma earnings that exclude depreciation expense and nonrecurring expenses such as restructuring costs. per share for third quarter 1996 were 31 cents. Net sales for the first nine months of 1997 were $214.9 million versus $152.8 million in the comparable period of 1996, a 41% increase. Operating income for nine months was $65.9 million in 1997 versus $37.8 million for nine months in 1996, a 74% increase. Net income for the period in 1997 was $38.4 million versus $20.8 million for the period in 1996, an 85% increase. Income per share for the nine months was $1.25 in 1997 versus 81 cents for the period last year. On a pro forma basis, giving effect to the Initial Public Offering as if it had occurred on January 1, 1996 and accounting for the related increase in common shares outstanding, earnings per share increased 84% for the nine months of 1997. Pro forma earnings per share for third quarter 1996 were 68 cents. The increase in sales in the third quarter reflects the continuing trend in the growth of premium cigar unit volumes and a sales mix sales mix See product mix. shift to higher priced cigars. Operating margins increased to 34% and 31% for the third quarter and nine months of 1997, respectively, versus 27% and 25% 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: "Sustaining procation or back order and believe that this will be the case well into next year. The substantial increases in the factory output of our premium brands have sold through to our consumers very rapidly. As in previous quarters, the Company's distributors are requesting additional shipments of our premium cigars as their inventories become depleted de·plete tr.v. de·plet·ed, de·plet·ing, de·pletes To decrease the fullness of; use up or empty out. [Latin d . Our operating margins continue to increase substanti 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 was also the largest manufacturer and marketer of premium cigars and natural-wrapped mass-market cigars in the United States for 1996, the fastest growing seg are intended to identify forward-looking statof 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)
(Unaudited)
Third Quarter Ended
September 27, September 28,
1997 1996
--------- ----------
Net sales $ 82,642 $ 60,620
Net income 16,792 9,577
Net income
per common share 0.55 0.35
Weighted average common
shares outstanding 30,683,644 27,537,363
Pro forma net income
per share (1) $ 0.55 $ 0.31
Pro forma weighted average
common shares outstanding (1) 30,683,644 30,675,000
Nine Months Ended
September 27, September 28,
1997 1996
---------- ----------
Net sales $ 214,907 $ 152,820
Net income 38,391 20,754
Net income per common share 1.25 0.81
Weighted average common
shares outstanding 30,677,913 25,582,721
Pro forma net income
per share (1) $ 1.25 $ 0.30,677,913 30,675,000
-0-
(1) Reflects Initial Public Offering as if it occurred on Jan. 1, 1996. CONSOLIDATED CIGAR HOLDINGS INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF EARNINGS (Dollars in thousands, except per share data) (Unaudited) Third Quarter Ended Nine Months Ended Sept. 27, Sept. 28, Sept. 27, Sept. 28, 1997 1996 1997 1996 Net sales $ 82,642 $ 60,620 $ 214,907 $ 152,820 Cost of sales 45,736 34,975 119,929 88,391 ------------ ------------ ------------ ------------ Gross profit 36,906 25,645 94,978 64,429 Selling, general and administrative expenses 9,065 9,018 29,050 26,596 ------------ ------------ ------------ ------------ Operating income 27,841 16,627 65,928 37,833 Interest expense, net (2,455) (2,660) (7,618) (7,961) Miscellaneous (676) (256) (1,837) (841) ------------ ------------ ------------ ------------ Income before provision for income taxes 24,710 13,711 56,473 29,031 Provision for income taxes (7,918) (4,134) (18,082) (8,277) ------------ ------------ ------------ ------------ Net income $ 16,792 $ 9,577 $ 38,391 $ 20,754 ============ ============ ============ ============ Net income per common share $ 0.55 $ 0.35 $ 1.25 $ 0.81 ============ ============ ============ ============ Weighted average common shares outstanding 30,683,644 27,537,363 30,677,913 25,582,721 ============ ============ ============ ============ Pro forma net income per share (1) $ 0.55 $ 0.31 $ 1.25 $ 0.68 ============ ============ ============ ============ Pro forma weighted average common shares outstanding (1) 30,683,644 30,675,000 30,677,913 30,675,000 =========== ========== ========== ========== -0- (1) Reflects Initial Public Offering as if it occurred on Jan. 1, 1996. -0- CONSOLIDATED CIGAR HOLDINGS INC. AND SUBSIDIARIES CONDENSED con·dense v. con·densed, con·dens·ing, con·dens·es v.tr. 1. To reduce the volume or compass of. 2. To make more concise; abridge or shorten. 3. Physics a. CONSOLIDATED BALANCE SHEETS consolidated balance sheet A balance sheet in which assets and liabilities of a parent company and its controlled subsidiaries are combined, thereby presenting balance sheet items for the parent and its subsidiaries as if they were a single firm. (Dollars in Thousands) (Unaudited) Sept. 27, Dec. 31, 1997 1996 -------- -------- ASSETS Cash and cash equivalents $ 3,018 $ 1,906 Accounts receivable accounts receivable n. the amounts of money due or owed to a business or professional by customers or clients. Generally, accounts receivable refers to the total amount due and is considered in calculating the value of a business or the business' problems in paying , net 32,592 19,498 Inventories 74,208 45,957 Deferred taxes and other 10,079 5,591 -------- -------- Total current assets Current Assets Appearing on a company's balance sheet, it represents cash, accounts receivable, inventory, marketable securities, prepaid expenses, and other assets that can be converted to cash within one year. 119,897 72,952 Property, plant and equipment, net 39,231 37,224 Trademarks, net 31,096 31,155 Goodwill, net 69,893 59,723 Other intangibles and assets, net 4,170 4,457 -------- -------- Total assets $264,287 $205,511 ======== ======== LIABILITIES AND STOCKHOLDERS' EQUITY Stockholders' Equity The portion of the balance sheet that includes capital received from investors in exchange for stock (paid-in capital), donated capital, and retained earnings. This is equal to total assets minus liabilities, preferred stock and intangible assets. Current portion of promissory note promissory note, unconditional written promise to pay a certain sum of money at a definite time to bearer or to a specified person on his order. Promissory notes are generally used as evidence of debt. due to affiliate $ 10,000 $ 10,000 Current portion of long-term debt Current Portion Of Long-Term Debt A portion of the balance sheet that represents the total amount of long-term debt that must be paid within the next year. The balance sheet has a liability section, which is broken down into long-term and current debt. 1,090 -- Accounts payable 11,077 7,197 Accrued expenses and other 22,998 21,812 -------- -------- Total current liabilities Current Liabilities Usually appearing on a company's balance sheet, it represents the amount owed for interest, accounts payable, short-term loans, expenses incurred but unpaid, and other debts due within one year. 45,165 39,009 Promissory note due to affiliate 55,000 60,000 Long-term debt Long-Term Debt Loans and financial obligations lasting over one year. Notes: For example debts obligations such as bonds and notes which have maturities greater than one year would be considered long-term debt. 113,400 97,500 Other liabilities other liabilities Small and relatively insignificant liabilities. For financial reporting purposes, firms often combine small liabilities into this single category rather than listing each liability separately. 10,555 7,647 Total stockholders' equity 40,167 1,355 -------- -------- Total liabilities and stockholders' equity $264,287 $205,511 ======== ======== CONTACT: Robinson Lerer & Montgomery, New York Montgomery, New York may refer to:
Mary Ann Dunnell, 212/484-7797 or John Quirk, 212/484-7699 |
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