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 DANVILLE, Va., Aug. 25 /PRNewswire/ -- Dibrell Brothers, Incorporated (NASDAQ-NMS: DBRL) today reported that income before extraordinary items and cumulative effect of accounting changes increased 25 percent in 1993 to a record $38,278,395, or $2.87 per share ($2.54 fully diluted), from last year's $30,615,201, or $2.31 per share ($2.07 fully diluted). Net sales decreased 1.4 percent to $1.065 billion. Net income increased to $39,347,790, or $2.95 per share ($2.61 fully diluted), from last year's net income of $30,288,601, or $2.28 per share ($2.05 fully diluted). Included in this year's net income is a net benefit of $1,069,395, or $.08 per share ($.07 fully diluted), resulting from the cumulative effect of accounting changes. Last year's net income included a reduction of $326,600, or $.03 per share ($.02 fully diluted), resulting from extraordinary items.
 For the quarter ended June 30, 1993, income before extraordinary items increased 57.4 percent to a record $13,265,211, or $.99 per share ($.87 fully diluted), from $8,426,722, or $.63 per share ($.56 fully diluted), in last year's June quarter. Net income for last year's fourth quarter included an extraordinary tax benefit of $2,710,400, or $.20 per share ($.17 fully diluted), from the utilization of tax loss carry forwards at certain foreign subsidiaries. Net sales for the quarter decreased 12.6 percent to $260.1 million from $297.5 million in the previous year.
 Claude B. Owen Jr., Dibrell's chairman and chief executive officer, said sales of Dibrell's tobacco business for the twelve-month period decreased 4.6 percent to $688 million due to lower average prices even though volume increased 10.0 percent while sales of its flower business increased by 4.9 percent to $377.4 million. Sales in this year's fourth quarter were less than last year principally due to lower prices on increased volumes of foreign tobacco and to sales of U.S. tobacco to certain customers in the 1993 third quarter for which comparable sales were shipped in the 1992 fourth quarter. Flower sales were up 7.5 percent for the quarter.
 Owen said that operating profit for the corporation was up 12.9 percent for the twelve months including non-recurring expenses of $2.9 million, or after tax $.17 per share ($.14 fully diluted), for outside professional fees and expenses in connection with the canceled merger with Standard Commercial Corporation and operational studies at Baardse, the company's Dutch flower exporter. The domestic and foreign tobacco operations continue to be the major source of earnings for the company, as tobacco operations' operating profit rose 17.6 percent for the twelve months. The results from tobacco operations improved in part from positive currency exchange adjustments in 1993 and the $2.1 million lawsuit settlement charge in 1992. Flower operations' operating profit continues to be negatively impacted by the recession in Europe but still accounted for 7.5 percent of total operating profit for the twelve-month period. The June quarter's operating profit, including $1.1 million of the $2.9 million non-recurring expenses, was up 9.9 percent, as lower operating profits of the Dutch flower export business were more than offset by foreign tobacco operations including the earnings of an investee company. The investee company with operations in Malawi was included in "equity in net income of investee companies" last year. Flower operations' operating loss was $520,000 for the June quarter.
 Owen also commented that results for both the quarter ending June 30, 1993 and the twelve-month period were favorably impacted by reduced interest expense (both lower average balances outstanding and lower interest rates) and by lower income tax rates.
 The twelve-month period's non-recurring benefit of $1,069,395 results from the cumulative effect of two accounting changes. The company adopted the Statement of Financial Accounting Standards No. 109 "Accounting for Income Taxes" and the Statement No. 106 "Employers' Accounting for Postretirement Benefits Other Than Pensions," both effective July 1, 1992. No. 109 produces a cumulative positive impact on earnings of $8,785,000 with a negative impact from No. 106 of $7,715,605 for a net positive impact.
 Dibrell is engaged in two international businesses. The primary business involves purchasing, processing, and selling leaf tobacco worldwide. The other business involves the importation and distribution of fresh cut flowers in Europe, North America and Japan. As both of the company's lines of business are seasonal, the results of a single quarter are not necessarily indicative of the results to be expected for the full year.
 -0- 8/25/93
 /CONTACT: John Hunnicutt of Dibrell Brothers, 804-791-0151/

CO: Dibrell Brothers, Incorporated ST: Virginia IN: TOB SU: ERN

SB-MM -- CH014 -- 5911 08/25/93 17:54 EDT
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Publication:PR Newswire
Date:Aug 25, 1993

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