SJI Group Reports Year-End Profit
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:
1998 1997
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Net sales $ 4,692,479 $ 6,723,525
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Net income (loss) and
comprehensive income (loss) $ 2,160,007 $ (61,783)
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Basic and diluted income (loss)
per share $ 0.53 $ (0.04)
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Weighted average shares outstanding 4,101,702 1,466,201
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