not yet. But the SJIG news sounds mighty good: SJI Group Reports Year-End Profit
Business Editors
KNOXVILLE, Tenn.--(BUSINESS WIRE)--May 6, 1999--SJI Group, Inc.
(OTC BB:SJIG) announced the results for its year ended December 31,
1998. The Company reported net income for 1998 of approximately $2.2
million, or $0.53 per basic and diluted share as compared to a net
loss of approximately $(62,000), or $(0.04) per basic and diluted
share for 1997. Income for 1998 included investment income of
approximately $2.5 million after giving effect to income taxes. Net
sales for 1998 were approximately $4.7 million compared to net sales
of approximately $6.7 million for 1997.
Giving effect to the potential conversion of the Company's
preferred stock into common stock, the pro forma basic and diluted
income per share for 1998 was $0.26 and the pro forma basic and
diluted loss per share for 1997 was $(0.04). The Company further noted
that the total value of it's investment holdings has actually
increased since the end of 1998, which it hopes will result in added
investment income during the course of 1999.
Commenting on operations, Edward C. Williams, Chief Financial
Officer of the Company stated, "We are pleased with the overall
results of the Company. While sales of our cigar division declined
from 1997, it was primarily attributed to industry-wide oversupply at
the retail level and a resulting decline in wholesale orders from
retail stores. However, we are pleased with the response to the
Company's products and the sales generated from a recent trade show.
As such, we believe the cigar market is beginning to show signs of a
turnaround." Mr. Williams went on to say, "Sales attributed to the
Internet, however, have remained strong."
J.D. Jenkins, President commented, "We are very pleased with our
Internet operations, which were and remain the foundation of the
Company, having actually been the impetus for our cigar business. SJI
Group's success in the Internet is evidenced by the sale last year of
one Internet subsidiary, Maverick Communications Corp., that resulted
in the recognition during 1998 of investment income of approximately
$2.5 million. We are very excited about our current Internet projects,
some of which include the 24/7 Mall and CutThePrice.com. In addition
to developing Internet properties internally, the Company is actively
seeking acquisitions and merger candidates as well as exploring other
opportunities to increase shareholder value."
The following table presents selected financial information of
the Company:
-0-
*T
1998 1997
------------ -----------
Net sales $ 4,692,479 $ 6,723,525
============ ===========
Net income (loss) and
comprehensive income (loss) $ 2,160,007 $ (61,783)
============ ===========
Basic and diluted income (loss)
per share $ 0.53 $ (0.04)
============ ===========
Weighted average shares outstanding 4,101,702 1,466,201
============ ===========
Pro Forma:
Pro forma basic and diluted income
(loss) per common and common
equivalent share $ 0.26 $ (0.04)
============ ===========
Pro forma weighted average shares
outstanding (1) 8,155,949 1,466,201
============ ===========
(1) Includes the weighted average number of shares of common stock
issuable upon conversion of the Company's preferred stock.
*T
SJI Group, Inc. is a sales and marketing organization that
specializes in the development of Internet properties. Through its
Internet Laboratories subsidiary, it recently launched its newest
Internet site, a new online shopping service, the 247 Mall, which
brings to consumers a wide variety of products and services from
leading manufacturers, retailers and companies worldwide. For more
information regarding SJI Group, Inc., it's Internet properties,
products and services, please visit the Company's corporate web site
at sjigroup.com; its SJI Tobacco (Smokin' Joe's) web site
located at sjitobacco.com , the 247Mall at
247mall.com ; and the soon to be released auction site
cuttheprice.com.
Statements about the Company's future expectations, including
future revenues and earnings, and all other statements in the press
release other than historical facts are "forward-looking statements"
within the meaning of the Private Securities Litigation Reform Act of
1995. The Company intends that such forward-looking statements be
subject to the safe harbors created thereby. Since these statements
involve risks and uncertainties and are subject to change at any time,
the Company's actual results could differ materially from expected
results.
--30--lhs/mi*
CONTACT: SJI Group, Inc., Knoxville
J.D. Jenkins, 423/584-3398, ext. 3993
jd@sjigroup.com
KEYWORD: TENNESSEE
INDUSTRY KEYWORD: COMED COMPUTERS/ELECTRONICS
INTERACTIVE/MULTIMEDIA/INTERNET EARNINGS
Today's News On The Net - Business Wire's full file on the Internet
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URL: businesswire.com
May-06-1999 08:19 GMT
Symbols:
US;SJIG
Source BW Business Wire |
