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August 8, 2005
Central European Distribution Corporation Reports Financial Results for the Fiscal Quarter Ended June 30, 2005 Bala Cynwyd, Pennsylvania: Central European Distribution Corporation, today announced that net income rose 24% to $5.6 million, or $0.33 per fully diluted share, for the three-month period ended June 30, 2005, from $4.5 million, or $0.28 per fully diluted share, for the same period in 2004. Net sales for the three-month period ended June 30, 2005 increased 24% to $164 million, from $133 million for the same period in 2004. For the six-month period ended June 30, 2005, net income rose 34% to $10.2 million, or $0.60 per fully diluted share, from $7.6 million, or $0.46 per fully diluted share, for the same period in 2004. Net sales for the six-month period ended June 30, 2005 increased 29% to $314.3 million, from $243.5 million for the same period in 2004. CEDC is the leading distributor by volume and a leading importer by value of alcoholic beverages in Poland. Following the planned acquisitions of Bols Sp. z o.o. and Polmos Bialystok S.A., CEDC will become one of the largest vodka producers in Poland. CEDC operates 14 distribution centers and 86 satellite branches throughout Poland. It distributes many of the world's leading brands in Poland, including brands such as Johnnie Walker Scotch, Stock Brandy, Sutter Home, Torres, Mondavi and Concha y Toro wines, Corona, Foster's, Grolsch, Budweiser Budvar and Guinness Stout beers.
CENTRAL EUROPEAN DISTRIBUTION CORPORATION
CONSOLIDATED CONDENSED BALANCE SHEETS
(in thousands)
June 30, 2005 December 31, 2004
(unaudited)
CURRENT ASSETS
Cash and cash equivalents $18,497 $10,491
Accounts receivable, (net of
allowance for doubtful accounts
of $8,684 and $10,038 respectively) 102,373 131,799
Inventories 52,182 64,372
Prepaid expenses and other
current assets 9,305 10,801
Deferred income taxes 916 822
TOTAL CURRENT ASSETS $183,273 $218,285
Intangible assets, net 1,954 2,543
Goodwill, net 53,994 51,370
Tangible fixed assets, net 14,580 17,387
Deferred income taxes 1,669 1,684
Other assets 1,868 435
TOTAL ASSETS $257,338 $291,704
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Trade accounts payable $88,295 $115,678
Short term bank loans and
overdraft facilities 30,048 37,396
Current portion of long term debt 209 234
Current portions of obligations
under capital leases 2,495 2,970
Income taxes payable 968 651
Taxes other than income tax 1,781 3,108
Other accrued liabilities 4,632 7,338
TOTAL CURRENT LIABILITIES 128,428 167,375
Long term debt, less current maturities 1,674 1,873
Long term obligations under
capital leases 1,240 2,140
STOCKHOLDERS' EQUITY
Preferred Stock ($0.01 par value,
1,000,000 shares authorized;
no shares issued and outstanding) - -
Common Stock ($0.01 par value,
40,000,000 shares authorized,
17,040,177 and 16,677,045 shares
issued at June 30, 2005 and
December 31, 2004, respectively) 170 166
Additional paid-in-capital 58,296 55,663
Retained earnings 62,586 52,366
Accumulated other comprehensive loss 5,094 12,271
Less Treasury Stock at cost
(164,025 shares at June 30, 2005
and December 31, 2004) (150) (150)
TOTAL STOCKHOLDERS' EQUITY 125,996 120,316
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $257,338 $291,704
CENTRAL EUROPEAN DISTRIBUTION CORPORATION
CONSOLIDATED CONDENSED STATEMENTS OF INCOME
(in thousands, except per share information)
Three months ended Six months ended
June 30, June 30, June 30, June 30,
2005 2004 2005 2004
(unaudited) (unaudited) (unaudited) (unaudited)
Net sales $164,249 $133,004 $314,251 $243,481
Cost of goods sold 143,342 116,368 273,663 213,079
Gross Profit 20,907 16,636 40,588 30,402
Selling, general and
administrative
expenses, excluding
amortization and
depreciation 12,365 9,818 24,034 18,703
Depreciation of
tangible fixed assets 842 618 1,724 1,204
Amortization of
goodwill and trademarks 130 123 260 242
Bad debt provision 95 186 349 252
Operating Income 7,475 5,891 14,221 10,001
Non operating income/
(expense)
Interest income 238 44 304 87
Interest expense (770) (535) (1,691) (996)
Realized and un-realized
foreign currency
transaction gains/
(losses) 29 104 (64) 58
Other income/
(expense), net (60) 34 (112) 54
Income before taxes 6,912 5,538 12,658 9,204
Income tax expense 1,312 1,022 2,438 1,578
Net income $5,600 $4,516 $10,220 $7,626
Net income per share of
common stock, basic $0.33 $0.28 $0.61 $0.47
Net income per share of
common stock, diluted $0.33 $0.28 $0.60 $0.46
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 CEDC 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. CEDC 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 included in CEDC's Form 10-K for the fiscal year ended December 31, 2004, and in other periodic reports filed by CEDC with the Securities and Exchange Commission. |
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