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November 9, 2004
Central European Distribution Corporation Announces 2004 Third Quarter Results Sarasota, Florida: Central European Distribution Corporation, today announced that net income rose 41.7% to $5.1 million, or $0.31 per fully diluted share, for the three-month period ended September 30, 2004 from $3.6 million, or $0.22 per fully diluted share, for the same period in 2003. Net sales for the three-month period ended September 30, 2004 increased 39.1% to $145.8 million from $104.8 million for the same period in 2003. Net income for the nine-month period ended September 30, 2004 increased 41.1% to $12.7 million, or $0.77 per fully diluted share, from $9.0 million, or $0.58 per fully diluted share, for the same period in 2003. Net sales for the nine-month period ended September 30, 2004 increased 34.5% to $389.3 million from $289.4 million for the same period in 2003. Other financial highlights were:
William Carey, CEO and President, commented, "The third quarter was a solid quarter during which we continued to see strong growth in our high margin import wine and spirit business. In addition, organic growth continued to be in line with Company guidance of 7%-11%. At the same time, free cash flow improved as our increased operating leverage and improved operating ratios helped us to deliver over $16 million in free cash flow for the nine months of 2004." The Company's results remain in line with its full year 2004 projections of $549-$559 million net sales and $1.28-$1.33 fully diluted earnings per share and the Company expects to announce full year 2005 projections at the end of November 2004. The weighted average number of shares used for calculating diluted earnings per share for the third quarter 2004 was 16,488,000 compared to 16,088,000 for the third quarter 2003. 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 11 distribution centers and 65 satellite branches throughout Poland. It distributes many of the world's leading brands in Poland, including brands such as Johnnie Walker Scotch, Stock Brandy, Jose Cuervo Tequila, Sutter Home, Torres, Mondavi and Concha y Toro wines, Corona, Beck's, Foster's, Grolsch, Budweiser Budvar and Guinness Stout beers.
CENTRAL EUROPEAN DISTRIBUTION CORPORATION
CONSOLIDATED CONDENSED BALANCE SHEETS
(in thousands)
September December
30, 31,
2004 2003
(unaudited)
CURRENT ASSETS
Cash and cash equivalents $11,732 $6,229
Accounts receivable, (net of allowance for doubtful
accounts of $8,112 and $6,380 respectively) 82,232 90,071
Inventories 29,998 35,012
Prepaid expenses and other current assets 6,068 5,249
Deferred income taxes 965 1,201
TOTAL CURRENT ASSETS $130,995 $137,762
Intangible assets, net 2,236 2,506
Goodwill, net 43,815 35,618
Equipment, net 15,557 10,115
Deferred income taxes 1,465 1,382
Other assets 361 87
TOTAL ASSETS $194,449 $187,470
CENTRAL EUROPEAN DISTRIBUTION CORPORATION
CONSOLIDATED CONDENSED BALANCE SHEETS - CONTINUED
(in thousands, except share and per share information)
September December
30, 31,
2004 2003
(unaudited)
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Trade accounts payable $57,570 $65,776
Short term bank loans and overdraft facilities 25,244 30,441
Income taxes payable 355 977
Taxes other than income tax 2,642 1,230
Other accrued liabilities 2,476 3,011
Current portions of obligations under capital leases 3,162 1,282
Current portion of long term debt 292 29
TOTAL CURRENT LIABILITIES 91,741 102,746
Long term debt, less current maturities 1,752 497
Long term obligations under capital leases 1,222 1,173
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, 16,554,731 and 10,876,329 shares issued
at September 30, 2004 and
December 31, 2003, respectively) 165 109
Additional paid-in-capital 54,409 52,805
Retained earnings 43,258 30,536
Accumulated other comprehensive loss 2,052 (246)
Less Treasury Stock at cost (164,025 shares at
September 30, 2004 and 109,350 at December 31, 2003) (150) (150)
TOTAL STOCKHOLDERS' EQUITY 99,734 83,054
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $194,449 $187,470
CENTRAL EUROPEAN DISTRIBUTION CORPORATION
CONSOLIDATED CONDENSED STATEMENTS OF INCOME
(in thousands, except per share information)
Three months ended Nine months ended
September September September September
30, 2004 30, 2003 30, 2004 30, 2003
(unaudited) (unaudited) (unaudited) (unaudited)
Net sales $145,831 $104,844 $389,312 $289,435
Cost of goods sold 127,525 91,358 340,605 251,850
Gross margin 18,306 13,486 48,707 37,585
Selling, general and
administrative
expenses, excluding
amortization and
depreciation 10,821 7,961 29,523 22,432
Depreciation of
tangible fixed
assets 729 422 1,933 1,249
Amortization of
trademarks 126 116 369 338
Bad debt provision 223 58 474 364
Operating Income 6,407 4,929 16,408 13,202
Non operating income /
(expense)
Interest income 60 55 147 137
Interest expense (579) (303) (1,576) (1,329)
Realized and
unrealized foreign
currency
transaction gains 226 4 284 105
Other (expense) /
income, net 22 (51) 77 (143)
Income before taxes 6,136 4,634 15,340 11,972
Income tax expense 1,040 1,030 2,618 3,005
Net income $5,096 $3,604 $12,722 $8,967
Net income per
share of common
stock, basic $0.31 $0.23 $0.78 $0.60
Net income per share
of common stock,
diluted $0.31 $0.22 $0.77 $0.58
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 included in the Company's Form 10-K for the fiscal year ended December 31, 2003 and in other periodic reports filed by the Company with the Securities and Exchange Commission. |
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