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November 14, 2002
Central European Distribution Corporation Reports Third Quarter Results, Gives Net Income Guidance for 2003 of $1.80-$1.85 Per Fully Diluted Share Sarasota, Florida: Central European Distribution Corporation, today announced that net income rose 124% to $1.0 million, or $0.17 per fully diluted share, for the three-month period ending September 30, 2002, from $447,000, or $0.10 per fully diluted share, for the same period in 2001. Net sales for the three- month period ended September 30, 2002 increased 58% to $66.5 million, from $42.1 million for the same period in 2001. Net income for the nine-month period ended September 30, 2002 increased 185% to $3.7 million, or $0.70 per fully diluted share, from $1.3 million, or $0.30 per fully diluted share, for the same period in 2001. Net sales for the nine-month period ended September 30, 2002 increased 49% to $180.6 million, from $121.1 million for the same period in 2001. The Company is projecting full year 2002 net sales of approximately $290-$295 million and net income of approximately $1.28-$1.30 per fully diluted share. William Carey, Chairman and CEO, commented, "We are extremely pleased with the 30% excise tax reduction announcement made in the third quarter that took effect from October 1, 2002. We are seeing a 25% to 30% increase in case sale growth in same store sales along with a decreasing presence of black market sales as the key drivers for our upward revision of fourth quarter and full year 2002 estimates of net earnings." The Company is also projecting 2003 net sales of approximately $385-$390 million and net income of approximately $1.80-$1.85 per fully diluted share. The net sales projections are approximately 30% above 2002 estimates, which includes 14% organic sales growth. The estimated net income is approximately 40% above 2002 full year estimates and neither 2003 estimates of sales or income include any new acquisitions. CEDC is one of the leading importers of beers, wines and spirits, as well as one of the largest distributors of domestic vodka on a nationwide basis in Poland. The Company operates thirty regional distribution centers in major urban areas throughout Poland. 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, 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,
2002 2001 2002 2001
Net sales $66,508 $42,073 $180,616 $121,089
Cost of goods sold,
excluding amortization
and depreciation,
including excise tax 58,080 36,621 156,785 105,355
Gross margin, excluding
amortization
and depreciation 8,428 5,452 23,831 15,754
Selling, general
and administrative
expenses, excluding
amortization and
depreciation 6,004 3,784 15,702 11,118
Depreciation of equipment 352 209 918 641
Amortization of goodwill
and other intangibles 43 209 146 620
Bad debt expense 263 110 843 438
Operating income 1,766 1,140 6,222 2,937
Non-operating income
(expense)
Interest income 28 15 82 59
Interest expense (375) (368) (981) (1,019)
Realized and un-realized
foreign currency
transaction losses, net (140) (3) (429) (236)
Other (expense) income, net 25 (91) 30 56
Income before taxes 1,304 693 4,924 1,797
Income tax expense 287 246 1,185 500
Net income $1,017 $447 $3,739 $1,297
Net income per share
of common stock, basic $0.18 $0.10 $0.71 $0.30
Net income per share
of common stock, diluted $0.17 $0.10 $0.70 $0.30
Central European Distribution Corporation
Consolidated Condensed Balance Sheets (Unaudited)
Amounts in columns expressed in thousands,
(except per share data)
September 30, December 31,
2002 2001
Assets
Current Assets
Cash and cash equivalents $2,594 $2,466
Accounts receivable, (net of allowance
for doubtful accounts of $3,127,000
and $1,930,000 respectively) 27,081 38,102
Inventories 7,627 9,001
Prepaid expenses and other current assets 2,562 1,560
Deferred income taxes 623 480
Total Current Assets 40,487 51,609
Intangible assets, net 2,759 3,002
Goodwill, net 22,709 9,969
Equipment, net 6,172 3,372
Deferred income taxes 480 411
Other assets 1,132 614
Total Assets $73,739 $68,977
Liabilities and Stockholders' Equity
Current Liabilities
Trade accounts payable $17,441 $29,685
Bank loans and overdraft facilities 7,822 9,861
Current portion of long term debt 3,836 1,912
Current portion of obligations
under capital leases 267 269
Income taxes payable 77 308
Taxes other than income taxes 1,259 999
Other accrued liabilities 750 1,692
Total Current Liabilities 31,452 44,726
Long term debt, less current maturities 4,648 3,344
Long term obligations under capital leases 393 151
Redeemable common stock 1,781 --
Commitments and contingencies
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, 5,786,764 and 4,503,801 shares
issued at September 30, 2002,
and December 31, 2001, respectively) 58 46
Additional paid-in-capital 26,439 15,383
Retained earnings 10,900 7,161
Accumulated other comprehensive loss (1,782) (1,684)
Less Treasury Stock at cost (72,900 shares
at September 30, 2002 and December 31, 2001) (150) (150)
Total Stockholders' Equity 35,465 20,756
Total Liabilities and Stockholders' Equity 73,739 68,977
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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, 2001, and other periodic reports filed with the Securities and Exchange Commission. |
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