|
|
||||||||||||||||||||||||||||||||
|
 |
|
November 13, 2001
Central European Distribution Corporation Reports Third Quarter Results; Net Income Rises 276% to $0.10 from $0.03 While Net Sales Increased 31% to $42.1 Million from $32.1 Million Sarasota, Florida: Central European Distribution Corporation, today announced that net income rose 276% to $447,000, or $0.10 per fully diluted share, for the three-month period ending September 30, 2001, from $119,000, or $0.03 per fully diluted share, for the same period in 2000. Net sales for the three- month period ended September 30, 2001 increased 31% to $42.1 million, from $32.1 million for the same period in 2000. There were 4.36 million shares outstanding as of September 30, 2001. Net income for the nine-month period ended September 30, 2001 increased 466% to $1,297,000, or $0.30 per fully diluted share, from $229,000, or $0.05 per fully diluted share, for the same period in 2000. Net sales for the nine- months period ended September 30, 2001 increased 47% to $121.1 million, from $82.1 million for the same period in 2000. William Carey, Chairman and CEO, commented, "During the third quarter we continued to focus on increasing our market share which allowed us to achieve approximately 18% organic growth in the quarter. Our market share is now approximately 14% of the Polish Vodka market, 25% of the imported spirits market, 35% of the imported beer market and we are one of the most prominent companies in the imported quality wine market. Strong cost controls have enabled us to retain the benefits of this greater market share by nearly doubling our operating profit margin from 1.5% in the third quarter 2000 to over 2.7% this quarter." Neil Crook, Chief Financial Officer, commented, "Our continued strong performance during the first nine months has meant that we have been able to generate cash from ongoing operations and this has significantly strengthened our balance sheet. We have been able to decrease our working capital funding needs enabling us to keep our debt constant while still being able to complete an important acquisition in April of this year. Our hedging policy has stabilized our exposure to foreign currency risks during the first three quarters of this year." CEDC is the leading importer of beers, wines and spirits, as well as the largest distributor of domestic vodka on a nationwide basis in Poland, a $3.5 billion market at the retail level in 2000. The Company operates twenty regional distribution centers in major urban areas throughout Poland, one of Europe's fastest growing economies, from which it distributes many of the world's leading brands, including brands such as Johnnie Walker Scotch, Stock Brandy, Sutter Home, Torres, Mondavi and Concha y Toro wines, Miller Genuine Draft, Corona, Beck's, Foster's, Budweiser Budvar and Guinness Stout beers.
Central European Distribution Corporation
Consolidated Condensed Statements of Income (unaudited)
Amounts in columns expressed in thousands
(except per share data)
Three months ended Nine months ended
Sept. 30 Sept. 30, Sept. 30, Sept. 30,
2001 2000 2001 2000
Net sales $42,073 $32,103 $121,089 $82,146
Cost of goods sold 36,621 27,906 105,335 71,052
Gross profit 5,452 4,197 15,754 11,094
Selling, general
and administrative
expenses 3,784 2,922 11,118 7,800
Depreciation of Equipment 209 210 641 630
Amortization of goodwill
and trademark 209 193 620 509
Bad debt expense 110 381 438 567
Operating income 1,140 491 2,937 1,588
Non-operating income
(expense)
Interest expense (368) (252) (1,019) (643)
Interest income 15 46 59 211
Realized and unrealized
foreign currency
transaction (losses)
gains, net (3) (236) (236) (742)
Other expenses, net (91) 61 56 (94)
Income before income taxes 693 110 1,797 320
Income tax expense (benefit) 246 (9) 500 91
Net income $447 $119 $1,297 $229
Net income per share
of common stock,
basic and diluted $0.10 $0.03 $0.30 $0.05
Net income per share
of common stock,
basic and diluted $0.10 $0.03 $0.30 $0.05
Central European Distribution Corporation
Consolidated Condensed Balance Sheets (Unaudited)
Amounts in columns expressed in thousands,
(except per share data)
September, 30, December, 31
2001 2000
Assets
Current Assets
Cash and cash equivalents $1,444 $2,428
Accounts receivable, net of allowance
for doubtful accounts of $1,676,000
and $1,230,000, respectively 25,427 30,983
Inventories 7,013 9,557
Prepaid expenses and other current assets 1,377 809
Deferred income taxes 703 416
Total Current Assets 35,964 44,193
Equipment, net 3,335 3,031
Intangible assets, net 11,934 11,471
Deferred income taxes 80 80
Other assets 547 536
Total Assets $51,860 $59,311
Liabilities and Stockholders' Equity
Current Liabilities
Trade accounts payable $17,765 $26,399
Bank loans and overdraft facilities 3,213 1,383
Current portion of long term debt 6,739 5,400
Income taxes payable 102 35
Taxes other than income taxes 414 928
Other accrued liabilities 948 686
Total Current Liabilities 29,181 34,831
Long term debt, less current maturities 4,793 7,988
Stockholders' 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, 4,361,220 and 4,402,356
shares issued and outstanding at
December 31, 2000, and September 30, 2001,
respectively) 45 45
Additional paid-in-capital 14,273 14,175
Retained earnings 5,932 4,635
Accumulated other comprehensive loss (2,214) (2,243)
Less Treasury Stock at cost
(72,900 shares at September 30, 2001
and 64,100 shares at December 30, 2000) (150) (120)
Total Stockholders' Equity 17,886 16,492
Total Liabilities and Stockholders' Equity 51,860 59,311
Contact: Except for the historical information contained herein, the matters discussed in this news release are forward-looking statements that involve risks and uncertainties that are detailed from time to time in the Company's Securities and Exchange Commission reports. |
|||||||||||||||||||||||||||||
|
|
|||||||||||||||||||||||||||||||
