MIAMI, Feb. 18 /PRNewswire/ -- Caribbean Cigar Company (Nasdaq: CIGR)
announced the results for its third quarter ended December 31, 1997. Sales
for the three months ended December 31, 1997 were $1,442,864 compared to sales
of $2,580,745 for the three months ended December 31, 1996. This decrease is
due to increased competition in the premium cigar market and shortages of
product due primarily to interruption of supply from Indonesia. The Company
reported a loss from continuing operations of $(1,662,912), or $(0.32) per
share for the three months ended December 31, 1997 as compared to income from
continuing operations of $6,915, or $0.00 per share for the three months ended
December 31, 1996.
In August, 1997, the Company's Board of Directors decided to sell its
retail business segment as part of the Company's strategic focus on its
manufacturing and wholesale business. Accordingly, the results of operations
for the retail division have been accounted for as discontinued operations.
The loss from discontinued operations was $(100,042), or $(0.02) per share for
the three months ended December 31, 1997 as compared to income from
discontinued operations of $100,862, or $0.02 per share for the three months
ended December 31, 1996.
Sales for the nine months ended December 31, 1997 were $5,229,235 compared
to sales of $4,856,955 for the nine months ended December 31, 1996. The
Company reported a loss from continuing operations of $(4,080,854), or $(0.79)
per share for the nine months ended December 31, 1997 as compared to a loss
from continuing operations of $(411,635), or $(0.08) per share for the nine
months ended December 31, 1996. The loss from discontinued operations was
$(339,778), or $(0.07) per share for the nine months ended December 31, 1997
as compared to income from discontinued operations of $150,683, or $0.03 per
share for the nine months ended December 31, 1996.
In January 1998, approximately 220,000 pounds of the tobacco located in
the Company's Jaibon, Dominican Republic processing facility was damaged due
to a flood. The loss was covered by insurance and on February 11, 1998, the
Company agreed to settle the claim with the insurance company for
approximately $1,500,000. The remaining tobacco is sufficient to enable the
Company to manufacture cigars through Much 31, 1999.
Caribbean Cigar Company, headquartered in Miami, manufactures and/or
distributes cigars produced in the Dominican Republic. The Company
manufactures/distributes the following brands: Signature Collection(SC)(TM),
Calle Ocho(TM), Free Cuba(TM), Celestino Vega(TM), Rum Runner(TM), West Indies
Vanilla(TM), and Island Amaretto. |
