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Strategies & Market Trends : Trader J's Inner Circle -- Ignore unavailable to you. Want to Upgrade?

To: LTK007 who wrote (11985)	3/30/1999 8:52:00 PM
From: kendall harmon	Respond to of 56535

Rosi-here is the key news release to study and restudy. The Intraday chart today points to further gains tomorrow. Monday March 29, 5:16 pm Eastern Time Company Press Release U.S.A. Floral Products, Inc. Comments On First Quarter Outlook and 1999 WASHINGTON--(BUSINESS WIRE)--March 29, 1999--U.S.A. Floral Products, Inc. (Nasdaq:ROSI - news) announced today that due to lower than anticipated revenues, the Company expects to report earnings in the range of $0.21 to $0.24 per share versus the First Call consensus estimate of $0.47 per share for the quarter ending March 31, 1999. For the year ending December 31, 1999, the Company expects to report earnings in the range of $0.65 to $0.70 per share versus the First Call consensus estimate of $1.06 per share. The Company intends to report actual first quarter results during the week of May 3rd, 1999. The principal cause of the shortfall in earnings was a reduction in the Company's revenue for the quarter, due primarily to the following: -- Industry wide North American import demand from South America was weak for the first two months of 1999 as compared to the same period in 1998. Preliminary industry information suggests average unit prices are down approximately 21%; -- Industry wide Dutch exports were down approximately 12% for the first two months of 1999, as compared to the same period in 1998. Preliminary industry information suggests average unit prices have fallen approximately 12.5%; -- As previously noted by the Company, Valentine's Day fell on a Sunday of a Holiday weekend; -- The increased strength of the U.S. dollar versus the Euro also impacted U.S.A. Floral. The Company derives about 40% of its revenue internationally, primarily from Europe, and management estimates that this currency swing will negatively affect international earnings by roughly 3% to 5%. ''We are clearly disappointed by our first quarter results in which revenues were affected more than originally anticipated,'' stated Robert Poirier, Chairman, CEO and President of USA Floral Products. ''The primary issue is supply and demand, as industry-wide dynamics have created softness in pricing in the wake of over production. We believe that this situation was exacerbated by a softer than normal February.'' Founded in April 1997, U.S.A. Floral Products is the world's largest floral supplier. The Company was formed to create a fully-integrated international floral product distribution business. U.S.A. Floral Products engages primarily in the importation and wholesale distribution of floral and floral-related products. The Company also provides pre-packaged floral bouquets and arrangements to retail florists and mass market retailers, engages in brokerage services for wholesalers of both international and domestic cut flowers, and provides floral fulfillment and shipping services to direct shippers.