Printer Friendly

CULBRO REPORTS RESULTS

 CULBRO REPORTS RESULTS
 NEW YORK, Sept. 23 /PRNewswire/ -- Culbro Corporation (NYSE: CUC)


today reported net income for the third quarter of $1,291,000 or $0.30 per share on sales of $292,154,000. In the 1991 third quarter, Culbro incurred a net loss of $134,000 or $0.03 per share on sales of $293,542,000.
 Net income in the 1992 nine month period was $2,766,000 or $0.64 per share on sales of $853,465,000. Net income in the corresponding 1991 nine month period was $254,000 or $0.06 per share on sales of $816,450,000.
 Third quarter results improved over the prior year due principally to better results in the corporation's packaging and labeling systems business and lower financing costs, partially offset by lower profit in the Corporation's consumer products businesses. The improved results in the packaging and labeling systems business principally reflects higher gross profit from manufacturing efficiencies and higher volume. The lower financing costs were due principally to the repayment of certain of the corporation's 9.7 percent senior notes in the prior year's third quarter, overall lower interest rates and $800,000 of interest income on a tax refund received in the current year's third quarter. In the consumer products businesses, lower profit reflects the effect of lower volume, principally in wrapper tobacco sales, partially offset by higher gross profit on cigarette sales by the wholesale distribution business.
 Culbro stated that all of its businesses were profitable in the 1992 nine month period. The improved nine month results reflected the third quarter factors noted above and the effect of certain one-time charges of $4.2 million in the prior year's nine month period, including a $3.3 million loss on sale of a business. These one-time charges were offset by benefits from the liquidation of LIFO inventories in the wholesale distribution business in the prior year.
 In June, Culbro announced the signing of a letter of intent to combine its wholly owned distribution company, The Eli Witt Company, with Certified Grocers of Florida, Inc. a full service grocery wholesaler serving retail outlets in Florida and Georgia. Culbro is in the process of concluding the definitive agreement and arranging financing for this transaction, which it expects to close within the next several months.
 Culbro is a diversified consumer and industrial products company with interests in cigars, wholesale distribution of tobacco and sundry consumer products, labeling systems and packaging machinery, real estate and landscape nursery stock.
 CULBRO CORPORATION AND SUBSIDIARY COMPANIES
 Consolidated Statement of Operations Summary
 (in thousands, except per share date)
 Three months Nine months
 Periods ended 8/29/92 8/31/91 8/29/92 8/31/91
 Net sales and other
 revenue $292,154 $293,542 $853,465 $816,450
 Costs and Expenses
 Cost of goods sold(A) 295,295 260,592 757,030 715,704
 Selling, general and
 administrative expenses 28,121 27,838 82,354 81,789
 Loss on sale of business -- -- -- 3,300
 Other expense, net -- -- 82 900
 Operating profit 4,738 5,112 13,999 14,757
 Equity in net (income)
 loss of investees (150) 200 165 400
 Fees on sales of accounts
 receivable 452 366 1,443 366
 Interest expense, Net(B) 2,367 3,646 7,864 12,208
 Income before inc. taxes 2,069 900 4,527 1,783
 Income tax provision 778 1,034 1,761 1,529
 Net income (loss) 1,291 (134) 2,766 254
 Net income (loss) per share 0.30 (0.03) 0.64 0.06
 Average shares
 outstanding 4,308,000 4,307,000 4,308,000 4,307,000
 (A) -- The 1991 nine month period ended Aug. 31, 1991 included a net benefit of approximately $4.2 billion from lower LIFO inventories. There was no such benefit in the current year's third quarter or nine month periods.
 (B) -- The three months and nine months ended Aug. 29, 1992 include interest income of approximately $800k on a tax refund.
 -0- 9/23/92
 /CONTACT: A. Ross Wollen of Culbro, 212-561-8714/
 (CUC) CO: Culbro Corporation ST: New York IN: SU: ERN


TS-LR -- NY049 -- 2660 09/23/92 12:50 EDT
COPYRIGHT 1992 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Sep 23, 1992
Words:696
Previous Article:UNIVERSAL TO RELEASE 'MR. BASEBALL,' STARRING TOM SELLECK, NATIONWIDE ON OCT. 2
Next Article:INFINITY BROADCASTING CORPORATION ENTERS INTO NEW BANK AGREEMENT
Topics:


Related Articles
CULBRO REPORTS EARNINGS
CULBRO REPORTS FIRST QUARTER LOSS
CULBRO ANNOUNCES DIVIDEND
CULBRO REPORTS RESULTS
CULBRO CORPORATION REELECTS VINCENT TO BOARD AND ANNOUNCES ACQUISITION
CULBRO SIGNS DEFINITIVE MERGER AGREEMENT
G.D.M., Cuba Battle General Cigar Over Cohiba Trademark, Millions at Stake
General Cigar Holdings, Inc. Appoints Edward B. Polite Chief Operating Officer
Griffin Announces First Quarter Results
Culbro, LLC Invests in Outsourced Medical Transcription Services Organization.

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters