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Central European Distribution Corporation
Reports Record Second Quarter Earnings and
Revenues; Announces New Exclusive Brands
ALEXANDRIA, Va., Aug. 24 /PRNewswire/ -- Central
European Distribution Corporation, (Nasdaq: CEDC),
today announced record second quarter earnings of
$285,000, or $0.16 per share on a fully diluted basis for
the three month period ending June 30, 1998, compared
to $82,000, or $0.05 per share on a fully diluted basis for
the same period in 1997. Total revenues, also a record,
increased 27 percent to $12.10 million during the quarter
ended June 30, 1998 from $9.55 million for the second
quarter 1997.
For the six-month period ended June 30, 1998, earnings
increased over 600 percent to $531,000, or $0.30 per
share on a fully diluted basis, from $75,000, or $0.04 per
share on a fully diluted basis in the six months ended June
30, 1997, as after-tax margin on revenue increased to 2.4
percent from 0.4 percent. Total revenues increased 25
percent to $21.89 million from $17.52 million during the
same period in 1997.
On July 27, 1998, CEDC completed an initial public
offering of 2,000,000 shares of common stock increasing
total outstanding shares from 1,780,000 (used to calculate
EPS) to 3,780,000 shares.
CEDC also announced today that it has signed new
contracts for exclusive distribution in Poland for Black
and White, VAT 69 and White Horse Scotches, from
United Distillers and Vintners, Camus Cognac, and
DeKuyper Liqueurs. In addition to the alcoholic beverage
line, CEDC has been awarded the exclusive distribution
rights for Dunhill Cigars and Warp 4, Poland's second
leading energy drink.
William V. Carey, Chairman, President and CEO,
commented, "Our second quarter results reflect the
leveraging of our national distribution system, the
continued sales increases in our exclusive imported beer
brands, and the benefits of economies of scale. We have
been very pleased with the demand for both our imported
and domestic products in the current year. These factors
should continue to benefit the company's core business,
which is expected to fuel strong growth, to both the top
and bottom line."
Mr. Carey continued, "We are also very excited about the
addition of the new exclusive imported spirits as well as
the other non-alcohol products. These new spirit brands
will enhance our already strong spirit portfolio providing
additional revenue and earnings growth. This is consistent
with our strategy to continue to add exclusive high margin
products to take advantage of our national distribution
system."
Also today, CEDC announced the appointment of
Evangelos Evangelou as Chief Operating Officer, a
previously unfilled position. Mr. Evangelou comes to
CEDC after five years of experience in Poland with Louis
Company, a multinational firm that operates food and
beverage concessions in international airports, including
Warsaw, and 10 years in the food and beverage business.
He will oversee the day to day activities of the company
reporting to the CEO.
Mr. Carey further stated, "CEDC is fortunate to have a
new COO with vast experience in the rapidly growing
Polish consumer market as well as strong management
experience within a large firm. The outlook for the Polish
alcoholic beverage market continues to be very dynamic,
particularly as it relates to our imported brands. We
expect to continue to capitalize on the changing consumer
preferences in Poland by adding additional high margin
exclusive brands and gain market share with additional
penetration of the domestic vodka business. Utilizing
funds from the IPO, we are already receiving substantial
discounts from domestic vodka producers for cash
payments which increases our gross margin on vodka and
gives us the ability to gain competitive market share."
CEDC is the leading importer and distributor of alcoholic
beverages on a nationwide basis in Poland, a four
billion-dollar market at the retail level in 1997. The
Company operates eight 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 of spirits, wines and beers,
including brands such as Jim Beam, Sutter Home, Miller,
Foster's, Corona, and Guinness.
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 SEC reports,
including but not limited to the discussion in the
Management's Discussion & Analysis included in the
Quarterly Report on Form 10-Q for second quarter
1998. |
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