KRAN - It's a possible... I just jumped on.
WEXFORD, Pa.--(BUSINESS WIRE)--Feb. 11, 1998--Krantor Corporation
(NASDAQ:KRAN) (www.krantor.com) today estimated that revenues and net income for the year
ending Dec. 31, 1997 will be $5,007,082 and $657,622 or $0.43 per share (including $0.15 per
share one-time gain), respectively, compared to revenues of $7,371,534 and a loss of
($10,223,931), or a loss of ($30.97) per share (including $29.36 per share one-time loss), for the
year ended Dec. 31, 1996. For the fourth quarter ended Dec. 31, 1997, the company estimates
revenues of $1,494,272 and net income of $202,293 or $0.07 per share (including $0.04 per share
one-time gain), compared to revenues of $310,078 and a loss of ($2,259,675), or a loss of ($6.85)
per share (including $6.97 per share one-time loss) for the year ending Dec. 31, 1996. Weighted
average number of shares outstanding for the years ending Dec. 31, 1997 and Dec. 31, 1996 were
1,521,074 and 330,071 respectively. The company expects to report audited revenues and net
income on or about March 31, 1998. Henry Platek, Krantor President, said, "This remarkable
turnaround in our results in fiscal 1997, compared to the previous year, is attributable to divesting
ourselves of the kosher food business and restructuring the company back into its core profitable
areas of brokering, distributing and marketing grocery and health and beauty products. Furthermore,
the company's entry into the premium cigar market in the later half of 1997 should have a meaningful
impact on fiscal 1998 revenues and earnings." Platek added, "We have made great strides recently in
developing our handmade chemically-free premium cigars in the Dominican Republic. We have
conducted a successful planting in the Bonao Valley, situated in the central mountains of the
Dominican Republic, where we are growing two very special varieties of Cuban tobacco leaves.
After intense scientific analysis and study, we have cultivated and planted seed in a valley whose soil,
sun and drainage characteristics duplicate those of the Vuelta Abajo, Cuba's most renowned
growing region for premium cigar wrappers. There is only one other non-Cuban company today that
is able to replicate the production of these Cuban wrappers. Krantor believes that the ability to
produce handmade premium cigars with these wrappers should give the company a marketing
advantage.
"These two strains are the leaves that produce the famed Corojo and Habano 92 wrappers. They
should be available to wrap our cigars in late 1998. In addition, we have successfully grown a
Connecticut wrapper in the same growing area. In late 1998, we expect to wrap all of our cigars
with our own wrappers, except for the readily available Sumatra wrapper."
Platek added that the fact the company has total control of the production of its cigar products, from
the farming of the tobacco leaves to the marketing of the finished products, gives Krantor excellent
product integration.
Currently, the company is distributing its premium handmade cigar label through Gran Reserve cigars
to over 130 stores owned by chains that have a total of about 5,500 outlets. In addition to its current
customers, the company is meeting with several more supermarket and drug store chains to further
expand its distribution base with its patented counter top display humidor and cedar box multipacks.
In January, the company began a successful direct marketing campaign through cable television for
one of its brands.
Forward looking statements contained in this release involve risks and uncertainties. These forward
looking statements are within the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Actual results
could differ and any forward looking statement should be considered accordingly.
CONTACT: Martin E. Janis & Company
Hal Schweig, 312/943-1100 |
