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March 15, 2004
Central European Distribution Corporation Announces a 46% Increase in Net Sales and an 82% Increase in Net Income for 2003 Compared to 2002 Sarasota, Florida: Central European Distribution Corporation, today announced that net sales for 2003 increased 46% to $429.1 million from $294 million for 2002. Net income for 2003 increased 82% to $15.1 million, or $1.44 per fully diluted share, from $8.3 million, or $0.99 per fully diluted share, for 2002. William Carey, President and CEO, commented, "We are extremely satisfied about our 2003 results, in which we obtained an increase of 46% in net sales and 45% in earnings per share over 2002, as well as continuing to achieve a strong return on equity of over 18%. For the last five years including 2003, we have had a compounded average growth rate of 37% for net sales and 36% for earnings per share. This achievement is due in part to the talented group of people we have working in our company." Mr. Carey continued, "We intend to remain aggressive in 2004 in terms of increasing our vodka market share through continued organic growth and acquiring targeted niche distributors that can fill market voids. We are currently looking at three to four distribution companies with combined net sales of approximately $120 million in 2003, and we expect to complete some or all of these companies this year." Mr. Carey added, "We are also committed to build our own brand portfolio and are currently conducting due diligence of a privately held Polish distillery, which we expect to close in the first half of this year. We expect the acquisition to be accretive to 2004 projected earnings."
CEDC is one of the leading importers of beers, wines and spirits, as well as the largest distributor of domestic vodka on a nationwide basis, in Poland. The Company operates nine distribution centers and 58 satellite branches throughout Poland. It distributes many of the world's leading brands, including brands such as Johnnie Walker Scotch, Stock Brandy, Jose Cuervo Tequila, Sutter Home, Torres, Mondavi and Concha y Toro(NYSE:VCO) wines, Corona, Beck's, Foster's, Grolsch, Budweiser Budvar and Guinness Stout beers.
CENTRAL EUROPEAN DISTRIBUTION CORPORATION(NASDAQ-NMS:CEDC)
CONSOLIDATED STATEMENTS OF BALANCE SHEETS
Amounts in columns expressed in thousands
December 31,
2003 2002
ASSETS
Current Assets
Cash and cash equivalents $6,229 $2,237
Accounts receivable, (net of allowance
for doubtful accounts of $6,380 and
$3,945 at December 31, 2003 and 2002
respectively) 90,071 64,803
Inventories 35,012 24,321
Prepaid expenses and other current assets 5,249 3,314
Deferred income taxes 1,201 713
Total Current Assets 137,762 95,388
Intangible assets, net 2,506 2,868
Goodwill, net 35,618 25,323
Equipment, net 10,115 5,910
Deferred income taxes 1,382 924
Other assets 87 387
Total Assets $187,470 $130,800
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities
Trade accounts payable $65,776 $53,435
Bank loans and overdraft facilities 30,441 20,353
Income taxes payable 977 499
Taxes other than income taxes 1,230 513
Other accrued liabilities 3,011 2,079
Current portions of obligations under
capital leases 1,282 316
Current portion of long-term debt 29 3,820
Total Current Liabilities 102,746 81,015
Long-term debt, less current maturities 497 6,195
Long-term obligations under capital leases 1,173 428
Redeemable common stock -- 1,781
COMMITMENTS AND CONTINGENCIES
Shareholders' Equity
Preferred Stock ($0.01 par value, 1,000,000
shares authorized; no shares issued and
outstanding) -- --
Common Stock ($0.01 par value, 20,000,000 shares
authorized, 10,876,329 and 6,005,263 shares
issued and outstanding at December 31, 2003
and 2002, respectively) 109 60
Additional paid-in-capital 52,805 27,381
Retained earnings 30,536 15,461
Accumulated other comprehensive loss (246) (1,371)
Less Treasury Stock at cost (109,350 shares
at December 31, 2003 and 2002) (150) (150)
Total Shareholders' Equity 83,054 41,381
Total Liabilities and Shareholders' Equity $187,470 $130,800
CONSOLIDATED STATEMENTS OF INCOME
Amounts in columns expressed in thousands
(except per share data)
Year ended December 31,
2003 2002
Net sales $429,118 $293,965
Cost of goods sold 372,638 255,078
Gross profit 56,480 38,887
Selling, general and administrative expenses 31,594 23,367
Bad debt provision 592 1,431
Depreciation of tangible fixed assets 1,672 1,273
Amortization of intangible assets 455 202
Operating income 22,167 12,614
Non-operating income / (expense)
Interest expense (1,633) (1,586)
Interest income 133 99
Realized and unrealized foreign currency
transaction losses, net (92) (176)
Other income / (expense), net (59) 113
Income before income taxes 20,516 11,064
Income tax expense 5,441 2,764
Net income $15,075 $8,300
Net income per share of common stock, basic $1.48 $1.03
Net income per share of common stock, diluted $1.44 $0.99
Contact: This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve known and unknown risks and uncertainties that may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by forward-looking statements. Investors are cautioned that forward-looking statements are not guarantees of future performance and that undue reliance should not be placed on such statements. The Company undertakes no obligation to publicly update or revise any forward-looking statements or to make any other forward-looking statements, whether as a result of new information, future events or otherwise, unless required to do so by the securities laws. Investors are referred to the full discussion of risks and uncertainties associated with forward-looking statements included in the Company's Form 10-K for the fiscal year ended December 31, 2003, and other periodic reports filed with the Securities and Exchange Commission. |
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