________________________________________________________________________________
________________________________________________________________________________
FORM 10-Q
---------------
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
---------------
(Mark One)
[ X ] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934 for the 13 Weeks ended February 28, 1998
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934 for the transition period from ....................
to ....................
---------------
Commission file number: (1-12757)
---------------
GENERAL CIGAR HOLDINGS, INC.
(Exact name of registrant as specified in its charter)
Delaware 13-3922128
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification Number)
---------------
387 Park Avenue South 10016-8899
New York, New York (Zip Code)
(Address of principal executive offices)
Registrant's telephone number, including area code: (212) 448-3800
---------------
Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days. Yes [ X ] No [ ]
As of March 31, 1998, 12,330,060 shares of Class A common stock, par value $0.01
per share, and 15,293,898 shares of Class B common stock, par value $0.01 per
share, were outstanding.
________________________________________________________________________________
________________________________________________________________________________
<PAGE>
TABLE OF CONTENTS
PART I. FINANCIAL INFORMATION:
Item 1. FINANCIAL STATEMENTS:
-------------------------------
Consolidated Statement of Operations for the 13 Weeks
ended February 28, 1998 and March 1, 1997............... Page 3
Consolidated Balance Sheet as of February 28, 1998
and November 29, 1997................................... Page 4
Consolidated Statement of Cash Flows for the 13 Weeks
ended February 28, 1998 and March 1, 1997............... Page 5
Consolidated Statement of Changes in Stockholders' Equity
for the 13 Weeks ended February 28, 1998................ Page 6
Notes to Consolidated Financial Statements................ Page 7
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
---------------------------------------------------------------------
AND RESULTS OF OPERATIONS.............................. Page 11
-------------------------
PART II. OTHER INFORMATION:
Item 6. EXHIBITS AND REPORTS ON FORM 8-K....................... Page 13
------------------------------------------
SIGNATURES......................................................... Page 14
INDEX TO EXHIBITS.................................................. Page E-1
<PAGE>
PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
- ----------------------------
GENERAL CIGAR HOLDINGS, INC.
CONSOLIDATED STATEMENT OF OPERATIONS
(dollars in thousands except per share data)
(Unaudited)
13 Weeks Ended
-----------------
February 28, March 1,
1998 1997
------ ------
NET SALES................................................. $67,737 $49,798
Cost of goods sold........................................ 34,786 27,515
------ ------
GROSS PROFIT.............................................. 32,951 22,283
Selling, general and administrative expenses.............. 20,363 14,428
------ ------
OPERATING PROFIT.......................................... 12,588 7,855
Nonoperating income....................................... 164 317
Interest expense.......................................... 833 1,274
------ ------
Income before provision for income taxes.................. 11,919 6,898
Provision for income taxes................................ 4,232 2,621
------ ------
NET INCOME................................................ $ 7,687 $ 4,277
====== =====
Basic net income per share................................ $ 0.28 $ 0.16
====== =====
Weighted average common shares
outstanding (in thousands)............................. 27,590 26,987
====== ======
Diluted net income per share.............................. $ 0.27 $ 0.15
====== =====
Weighted average common shares
and equivalents outstanding (in thousands)............. 28,672 28,200
====== ======
See Notes to Consolidated Financial Statements.
3
<PAGE>
PART I (Cont.)
GENERAL CIGAR HOLDINGS, INC.
CONSOLIDATED BALANCE SHEET
(dollars in thousands except per share data)
February 28, November 29,
ASSETS 1998 1997
---- ----
CURRENT ASSETS: (Unaudited)
Cash and cash equivalents........................... $ 3,358 $ 8,976
Receivables, less allowance
of $1,149 (1997--$1,331)........................... 44,654 50,963
Inventories:
Raw materials and supplies........................ 89,642 83,884
Work-in-process................................... 10,058 9,202
Finished goods.................................... 22,203 14,272
------- -------
121,903 107,358
Other current assets................................ 11,657 8,779
------- -------
TOTAL CURRENT ASSETS......................... 181,572 176,076
------- -------
Property and equipment................................ 117,896 113,041
Less: accumulated depreciation........................ 46,893 45,552
------- -------
Net property and equipment................... 71,003 67,489
Intangible assets, net, principally
trademarks and goodwill.............................. 73,125 73,740
Other assets.......................................... 2,650 2,900
------- -------
TOTAL ASSETS................................. $328,350 $320,205
======= =======
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable and accrued liabilities............ $ 34,833 $ 40,397
Long-term debt due within one year.................. 1,224 1,224
Income taxes........................................ 3,769 1,326
------- -------
TOTAL CURRENT LIABILITIES.................... 39,826 42,947
Long-term debt........................................ 50,995 47,540
Accrued retirement benefits........................... 16,190 15,923
Deferred income taxes................................. 6,157 5,317
Other noncurrent liabilities.......................... 9,897 10,974
------- -------
TOTAL LIABILITIES............................ 123,065 122,701
------- -------
Commitments and Contingencies (Note 5)
STOCKHOLDERS' EQUITY:
Preferred stock, par value $0.01-- authorized:
20,000,000 shares; Issued: none.................... - -
Class B common stock, par value $0.01--authorized:
25,000,000 shares;
Issued: 15,293,898 shares at February 28, 1998;
Issued: 15,707,226 shares at November 29, 1997... 153 157
Class A common stock, par value $0.01--authorized:
50,000,000 shares;
Issued: 12,330,060 shares at February 28, 1998;
Issued: 11,876,729 shares at November 29, 1997... 123 119
Additional paid-in capital.......................... 165,535 165,441
Retained earnings................................... 39,474 31,787
------- -------
Total stockholders' equity................... 205,285 197,504
------- -------
Total liabilities and stockholders' equity... $328,350 $320,205
======= =======
See Notes to Consolidated Financial Statements.
4
<PAGE>
PART I (Cont.)
GENERAL CIGAR HOLDINGS, INC.
CONSOLIDATED STATEMENT OF CASH FLOWS
(dollars in thousands)
(Unaudited)
13 Weeks Ended
-----------------
February 28, March 1,
1998 1997
------ ------
CASH FLOW FROM OPERATING ACTIVITIES:
Net income............................................. $ 7,687 $ 4,277
Adjustments to reconcile net income to net cash
(used in) provided by operating activities:
Depreciation and amortization......................... 2,048 867
Changes in assets and liabilities, net of Villazon
Acquisition and Liability Assumption in 1997:
Decrease in accounts receivable....................... 6,309 5,134
Increase in inventories............................... (14,545) (3,969)
Decrease in accounts payable and accrued liabilities.. (5,564) (4,879)
Increase in deferred income taxes..................... 840 490
Other, net............................................ (1,001) 1,298
------ ------
NET CASH (USED IN) PROVIDED BY OPERATING ACTIVITIES....... (4,226) 3,218
------ ------
CASH FLOW FROM INVESTING ACTIVITIES:
Acquisition of Villazon, net of cash acquired.......... - (56,243)
Additions to property and equipment.................... (4,941) (1,932)
------ ------
NET CASH USED IN INVESTING ACTIVITIES..................... (4,941) (58,175)
------ ------
CASH FLOW FROM FINANCING ACTIVITIES:
Increase in debt....................................... 3,500 62,450
Net transactions with Culbro, excluding
Liability Assumption................................. - (215)
Payments of debt....................................... (45) (180)
Proceeds from exercise of stock options................ 94 -
Other, net............................................. - (1,446)
------ ------
NET CASH PROVIDED BY FINANCING ACTIVITIES................. 3,549 60,609
------ ------
Net (decrease) increase in cash and cash equivalents...... (5,618) 5,652
Cash and cash equivalents at beginning of period.......... 8,976 409
------ ------
CASH AND CASH EQUIVALENTS AT END OF PERIOD................ $ 3,358 $ 6,061
====== ======
See Notes to Consolidated Financial Statements.
5
<PAGE>
<TABLE>
PART I (Cont.)
GENERAL CIGAR HOLDINGS, INC.
CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY
(dollars in thousands)
(Unaudited)
<CAPTION>
Class B Class A Additional Total
Common Common Paid-in Retained Stockholders'
Stock Stock Capital Earnings Equity
------- ------- ---------- -------- -------------
<S> <C> <C> <C> <C> <C>
BALANCE AT NOVEMBER 29, 1997... $ 157 $ 119 $165,441 $ 31,787 $197,504
Exercise of stock options...... - - 94 - 94
Exchange of shares............. (4) 4 - - -
Net income..................... - - - 7,687 7,687
----- ----- ------- ------- -------
BALANCE AT FEBRUARY 28, 1998... $ 153 $ 123 $165,535 $ 39,474 $205,285
===== ===== ======= ======= =======
See Notes to Consolidated Financial Statements.
</TABLE>
6
<PAGE>
PART I (CONT.)
GENERAL CIGAR HOLDINGS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(DOLLARS IN THOUSANDS EXCEPT PER SHARE DATA)
(UNAUDITED)
(1) INTERIM FINANCIAL PRESENTATION
The interim Consolidated Financial Statements are unaudited; however, they
have been prepared in accordance with Rule 10-01 of Regulation S-X adopted
by the Securities and Exchange Commission ("Commission") and in the opinion
of management reflect all adjustments (all of which are of a normal,
recurring nature) which are necessary for a fair statement of the financial
condition, results of operations, cash flows and changes in stockholders'
equity for the periods presented. Results of operations for the 13 weeks
ended February 28, 1998 are not necessarily indicative of the results that
may be expected for the entire year ending November 28, 1998.
As used in these Notes, references to the "Company" mean General Cigar
Holdings, Inc. and its subsidiaries General Cigar Co., Inc. ("General
Cigar"), Villazon & Company, Inc. ("Villazon"), Club Macanudo, Inc.
("Club Macanudo"), and 387 PAS Corp. ("387 PAS"). The accompanying
financial statements reflect the results of operations of these
businesses and assets for all of the periods presented. Club Macanudo,
which operates a cigar bar, and 387 PAS which owns and operates the
Company's headquarters building, were not material to the Company's
results of operations in any of the periods presented.
The accompanying Consolidated Financial Statements should be read in
conjunction with the Company's audited 1997 financial statements included
in Form 10-K, as filed with the Commission on February 27, 1998, and should
be read in conjunction with the Notes to Consolidated Financial Statements
appearing in that report.
(2) VILLAZON ACQUISITION
On January 21, 1997, the Company completed the acquisitions of two
affiliated companies, Villazon & Company, Inc., a U.S. corporation, and
Honduras American Tabaco, S.A. de C. V., a Honduran corporation
(collectively "Villazon"), for approximately $81.2 million consisting of
$91.1 million of purchase price and direct acquisition costs less $9.9
million of cash acquired at closing. At closing, $64.3 million of cash was
paid and $24.4 million aggregate principal amount of seller notes were
issued (the "Villazon Acquisition"). Both companies are engaged in the
cigar business. The Villazon Acquisition was accounted for using the
purchase method of accounting. Acquisition cost in excess of the fair
value of net tangible assets was approximately $69 million, representing
principally trademarks and goodwill (see unaudited pro forma condensed
financial information in Note 4). The Company entered into a Credit
Agreement to finance the acquisition. Proceeds from the Company's initial
public offering (the "Offering") were used to reduce amounts outstanding
under the Credit Agreement.
7
<PAGE>
(3) EARNINGS PER SHARE
In 1998, the Company adopted Statement of Financial Accounting Standards
No. 128, "Earnings per Share" ("SFAS 128"). SFAS 128 replaced the
calculation of primary and fully diluted earnings per share ("EPS") with
basic and diluted EPS. EPS amounts for all periods presented have been
restated to conform with SFAS 128. For the first quarters of 1998 and 1997,
the only difference between the basic and diluted EPS calculation is the
dilutive impact of stock options which are included in the diluted EPS
calculations.
(4) CONSOLIDATED CONDENSED PRO FORMA FINANCIAL INFORMATION
The following consolidated condensed unaudited pro forma financial
statement of operations reflects the Villazon Acquisition, including the
effect of the associated borrowings to finance the acquisition, the
Liability Assumption and the Offering as if these transactions were
completed at the beginning of the period. The unaudited consolidated
condensed pro forma balance sheet reflects the effect of the Offering as if
it had taken place at the balance sheet date. The Villazon Acquisition and
the Liability Assumption are already reflected in the Company's balance
sheet at March 1, 1997. The unaudited pro forma consolidated condensed
financial information presented herein may not necessarily reflect the
results of operations and financial position that actually would have been
achieved had the transactions discussed above actually taken place at the
assumed dates.
Consolidated Condensed Pro Forma Statement of Operations
(Unaudited)
13 Weeks Ended
March 1, 1997
--------------
Net sales........................................... $55,390
------
Operating profit.................................... 8,974
Nonoperating income................................. 317
Interest expense.................................... 550
------
Income before provision for income taxes............ 8,741
Provision for income taxes.......................... 3,340
------
Net income.......................................... $ 5,401
======
Basic net income per share.......................... $ 0.20
======
Diluted net income per share........................ $ 0.19
======
8
<PAGE>
Consolidated Condensed Pro Forma Balance Sheet
(Unaudited)
March 1, 1997
-------------
Current assets...................................... $106,819
Property and equipment, net......................... 57,790
Intangible assets................................... 70,617
Other assets........................................ 5,381
-------
Total assets........................................ $240,607
=======
Current liabilities................................. $ 24,782
Long-term debt...................................... 27,921
All other noncurrent liabilities.................... 27,140
-------
Total liabilities................................... 79,843
Stockholders' equity................................ 160,764
-------
Total liabilities and stockholders' equity.......... $240,607
=======
(5) COMMITMENTS AND CONTINGENCIES
As of February 28, 1998, the Company had commitments for capital
expenditures of approximately $15.7 million for the expansion of
manufacturing and distribution facilities, the addition of machinery and
equipment, and the implementation of a new computer system.
The Company believes that the outcome of currently pending legal
proceedings will not, in the aggregate, have a material adverse effect on
the Company's financial position.
(6) SUPPLEMENTAL CASH FLOW INFORMATION
Prior to the Offering, General Cigar had been included in Culbro
Corporation ("Culbro") consolidated federal income tax returns.
Accordingly, tax payments made by Culbro in the period prior to the
Offering are reflected in net transactions with Culbro in the consolidated
statement of cash flows. Income taxes paid by the company during the first
quarter of 1998 was $0.9 million.
Interest paid in the first quarter of 1998 and 1997 was $0.7 million and
$1.4 million, respectively.
9
<PAGE>
At March 1, 1997, the estimated cash and noncash activities related to the
Villazon Acquisition were summarized as follows:
Estimated fair value of net assets acquired......... $ 90,520
Notes issued to sellers............................. (24,370)
-------
Payments in connection with the acquisition......... 66,150
Cash acquired....................................... (9,907)
-------
Payments in connection with
acquisition, net of cash acquired................. $ 56,243
=======
(7) NEW ACCOUNTING PRONOUNCEMENTS
In June 1997, the Financial Accounting Standards Board ("FASB") issued SFAS
130, "Reporting Comprehensive Income," and SFAS 131, "Disclosures About
Segments of an Enterprise and Related Information," for fiscal years
beginning after December 15, 1997. In February 1998, the FASB issued SFAS
132, "Employers' Disclosures About Pensions and Other Postretirement
Benefits" which is effective for fiscal years beginning after December 15,
1997. These statements address presentation and disclosure matters that
currently have no material impact on the Company's financial position or
results of operations. The Company believes that it operates solely in one
business segment and does not anticipate a change in the identification of
its business segment.
10
<PAGE>
PART I (Cont.)
GENERAL CIGAR HOLDINGS, INC.
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
- ---------------------------------------------------------------------------
RESULTS OF OPERATIONS
---------------------
This Quarterly Report on Form 10-Q contains forward-looking statements within
the meaning of Section 27A of the Securities Act of 1933, as amended, and
Section 21E of the Securities Exchange Act of 1934, as amended. Such statements
include, without limitations, the Company's beliefs about trends in the cigar
industry and its views about the long-term future of the industry and the
Company. The following factors, among others, could cause the Company's
financial performance to differ materially from that expressed in such
statements (i) changes in consumer preferences resulting in a decline in the
demand for and consumption of cigars; (ii) an inability on the part of the
Company to increase production of cigars, particularly premium cigars, to meet
demand as a result of, among other things, a shortage of raw materials, trained
labor or production capacity, (iii) an increase in the price of raw materials,
(iv) additional governmental regulation of tobacco or further tobacco
litigation, (v) enactment of new or significant increases in existing excise
taxes, (vi) political and/or economic instability in foreign countries where the
Company has operations and (vii) other risks and uncertainties set forth in the
Company's other filings with the Securities and Exchange Commission.
As used herein, references to the "Company" mean General Cigar Holdings, Inc.
and its subsidiaries General Cigar Co., Inc. ("General Cigar"), Villazon &
Company, Inc. ("Villazon"), Club Macanudo, Inc. ("Club Macanudo"), and 387 PAS
Corp. ("387 PAS").
LIQUIDITY AND CAPITAL RESOURCES
Net cash used in operating activities was $4.2 million in the first quarter of
1998 ("1998 First Quarter") compared to net cash of $3.2 million provided by
operations in the first quarter of 1997 ("1997 First Quarter). The cash used in
the 1998 First Quarter compared with the cash provided in the 1997 First Quarter
reflected principally the increase of inventories. The increase in inventories
of raw materials and supplies reflected purchases of tobacco to ensure supplies
for future cigar production. The increase in inventories of finished goods
reflected principally the availability of certain premium cigars previously in
short supply. Accounts receivable decreased $6.3 million during the 1998 First
Quarter as a result of seasonal sales in the fourth quarter of 1997.
Cash used in investing activities was $4.9 million in the 1998 First Quarter
compared to $58.1 million in the 1997 First Quarter. In the 1998 First Quarter,
investing activities consisted of purchases of property and equipment. In the
1997 First Quarter, investing activities reflected principally the acquisition
of Villazon ($56.2 million) and purchases of property and equipment ($1.9
million).
Cash provided by financing activities was $3.5 million in the 1998 First Quarter
compared to $60.6 million in the 1997 First Quarter. In the 1998 First Quarter,
the Company increased its total borrowings to $52.2 million from $48.8 million
as of November 29, 1997. The financing activities in the 1997 First Quarter
reflected the bank borrowings used to finance the Villazon Acquisition.
The Company's working capital increased to $141.7 at February 28, 1998, from
$133.1 million at November 29, 1997. Long-term debt increased by $3.5 million
during the same period.
11
<PAGE>
Based on its current projection of cash flows, management believes that cash
from operations combined with its revolving credit facility will be sufficient
to fund its operations. The Company expects that it will make capital
expenditures of approximately $22 million in 1998, principally to complete
current manufacturing capacity expansion projects, and install a new computer
system. The Company is in the process of increasing the capacity of its
revolving credit facility to provide the additional funds that maybe needed to
finance its anticipated future growth.
RESULTS OF OPERATIONS
13 Weeks Ended February 28, 1998 as Compared to 13 Weeks Ended March 1, 1997
Net sales increased 36.0%, or $17.9 million, to $67.7 million in the 1998 First
Quarter from $49.8 million in the 1997 First Quarter. The increase in net sales
reflected principally higher unit sales of cigars, principally premium cigars,
and higher prices in all cigar categories. The 1997 First Quarter included sales
from the newly acquired Villazon business for two months of the quarter.
Gross profit increased 47.9%, or $10.7 million to $33.0 million in the 1998
First Quarter from $22.3 million in the 1997 First Quarter. Gross margin
increased to 48.6% in the 1998 First Quarter from 44.7% in the 1997 First
Quarter. The increase in gross margin reflected higher prices and the benefit of
relatively higher sales of premium cigars.
Selling, general and administrative expenses increased to $20.3 million in the
1998 First Quarter from $14.4 million in the 1997 First Quarter. As a percentage
of net sales, selling, general and administrative expenses in the 1998 First
Quarter was comparable to those in the 1997 first quarter.
Operating profit increased 60.3%, or $4.7 million, to $12.6 million in the 1998
First Quarter from $7.9 million in the 1997 First Quarter. As a result of the
higher gross margin, operating margin increased to 18.6% in the 1998 First
Quarter compared to the 15.8% in the prior year's quarter.
Interest expense decreased 34.6% in the 1998 First Quarter to $0.8 million from
$1.3 million in the 1997 First Quarter. The higher interest expense in the 1997
First Quarter reflects principally the cost of financing the Villazon
Acquisition. The bank financing for the acquisition and certain of the seller
notes were repaid with the net proceeds from the Offering.
The provision for income taxes was $4.2 million in the 1998 First Quarter as
compared to $2.6 million in the 1997 First Quarter. The lower effective tax rate
of 35.5% in the 1998 First Quarter compared to 38.0% in the 1997 First Quarter
reflects a change in the geographical composition of earnings.
As a result of the changes described above, net income increased 79.7% to $7.7
million compared to $4.3 million in the 1997 First Quarter.
12
<PAGE>
PART II. OTHER INFORMATION
GENERAL CIGAR HOLDINGS, INC.
Item 6. EXHIBITS AND REPORTS ON FORM 8-K
- --------------------------------------------
(a) EXHIBITS
The exhibits listed in the following table have been filed as part of this
Quarterly Report on Form 10-Q.
Exhibit
Number Description of Exhibit
------- ----------------------
11 Statement re: computation of per share earnings
27 Financial Data Schedule
(b) REPORTS ON FORM 8-K
No Report on Form 8-K was filed during the quarter for which this
Quarterly Report on Form 10-Q is filed.
13
<PAGE>
GENERAL CIGAR HOLDINGS, INC.
SIGNATURES
Pursuant to the requirement of the Securities Exchange Act of 1934, the
registrant has duly caused this Report to be signed on its behalf by the
undersigned thereunto duly authorized.
GENERAL CIGAR HOLDINGS, INC.
Date: April 14, 1998 By: /s/ Jay M. Green
----------------
Jay M. Green
Executive Vice President, Chief
Financial Officer and Treasurer
(Principal Financial Officer)
Date: April 14, 1998 By: /s/ Joseph Aird
---------------
Joseph Aird
Senior Vice President,
Controller
14
<PAGE>
GENERAL CIGAR HOLDINGS, INC.
INDEX TO EXHIBITS
EXHIBIT NO. DESCRIPTION PAGE
- --------------------------------------------------------------------------------
11 Statement re: computation of per share earnings.............. E-2
27 Financial Data Schedule...................................... E-3
E-1
<TABLE>
Exhibit 11
GENERAL CIGAR HOLDINGS, INC.
COMPUTATION OF PER SHARE EARNINGS
(dollars in thousands except per share data)
<CAPTION>
FOR THE 13 WEEKS ENDED FEBRUARY 28, 1998 FOR THE 13 WEEKS ENDED MARCH 1, 1997
---------------------------------------- ----------------------------------------
Income Shares Per-Share Income Shares Per-Share
(Numerator) (Denominator) Amount (Numerator) (Denominator) Amount
----------- ------------- --------- ----------- ------------- ---------
<S> <C> <C> <C> <C> <C> <C>
BASIC EPS
Income available to common stockholders.... $ 7,687 27,590,548 $ 0.28 $ 4,277 26,987,182 $ 0.16
====== ======
Effect of Dilutive Securities
Stock options.............................. - 1,081,039 - 1,212,818
------- --------- ------- ----------
DILUTED EPS
Income available to common
stockholders + assumed conversions...... $ 7,687 28,671,587 $ 0.27 $ 4,277 28,200,000 $ 0.15
======= ========== ====== ======= ========== ======
</TABLE>
E-2
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY CONSOLIDATED FINANCIAL INFORMATION EXTRACTED
FROM THE CONSOLIDATED FINANCIAL STATEMENTS OF GENERAL CIGAR HOLDINGS, INC.
INCLUDED IN ITS QUARTERLY REPORT ON FORM 10-Q FOR THE 13 WEEKS ENDED FEBRUARY
28, 1998 AND ITS QUARTERLY REPORT ON FORM 10-Q FOR THE 13 WEEKS ENDED MARCH 1,
1997, AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH CONSOLIDATED
FINANCIAL STATEMENTS.
</LEGEND>
<CIK> 0001029456
<NAME> GENERAL CIGAR HOLDINGS, INC.
<MULTIPLIER> 1,000
<S> <C> <C>
<PERIOD-TYPE> 3-MOS 3-MOS
<FISCAL-YEAR-END> NOV-28-1998 NOV-29-1997
<PERIOD-START> NOV-30-1997 DEC-01-1996
<PERIOD-END> FEB-28-1998 MAR-01-1997
<CASH> 3258 6061
<SECURITIES> 0 0
<RECEIVABLES> 45803 32600
<ALLOWANCES> 1149 514
<INVENTORY> 121903 64135
<CURRENT-ASSETS> 181572 106819
<PP&E> 117896 101767
<DEPRECIATION> 46893 43977
<TOTAL-ASSETS> 328350 240607
<CURRENT-LIABILITIES> 39826 99152
<BONDS> 50995 66551
0 0
0 0
<COMMON> 276 0
<OTHER-SE> 275009 47764
<TOTAL-LIABILITY-AND-EQUITY> 328350 240607
<SALES> 67737 49798
<TOTAL-REVENUES> 67737 49798
<CGS> 34786 27515
<TOTAL-COSTS> 34786 27515
<OTHER-EXPENSES> 0 0
<LOSS-PROVISION> 516 450
<INTEREST-EXPENSE> 833 1274
<INCOME-PRETAX> 11919 6898
<INCOME-TAX> 4232 2621
<INCOME-CONTINUING> 7687 4277
<DISCONTINUED> 0 0
<EXTRAORDINARY> 0 0
<CHANGES> 0 0
<NET-INCOME> 7687 4277
<EPS-PRIMARY> 0.28 0.16
<EPS-DILUTED> 0.27 0.15
</TABLE>
