SECURITIES AND EXCHANGE COMMISSION
Washington D.C. 20549
Form 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
DECEMBER 5, 2000
----------------
(Date of Report)
CENTRAL EUROPEAN DISTRIBUTION CORPORATION
------------------------------------------------------
(Exact name of registrant as specified in its charter)
<TABLE>
<CAPTION>
DELAWARE 0-24341 54-1865271
----------------------------- ----------------------- -----------------------------------
<S> <C> <C>
(State or other jurisdiction (Commission file number) (IRS employer identification number)
of incorporation)
</TABLE>
1343 MAIN STREET, SUITE 301, SARASOTA FLORIDA 34236
---------------------------------------------------
(Address of Principal Executive Offices)
Registrants telephone number, including area code: (941) 330 1558
<PAGE>
ITEM 5. OTHER EVENTS.
On December 5, 2000, Central European Distribution Corporation ("CEDC")
announced fourth quarter and yearly projections. A copy of the press release is
attached as Exhibit 99.1.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS.
(a) Not applicable.
(b) Not applicable.
(c) Exhibits.
EXHIBIT
NO. DESCRIPTION
-------- -----------
99.1 Press Release dated December 5, 2000 concerning financial
results and projections.
<PAGE>
Signatures
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
Central European Distribution Corporation
(Registrant)
/s/ JEFFREY PETERSON
--------------------
Date: November 5, 2000 Jeffrey Peterson
Executive Vice-President
<PAGE>
SOURCE: Central European Distribution Corporation
CENTRAL EUROPEAN DISTRIBUTION CORPORATION ANNOUNCES FOURTH QUARTER AND YEARLY
OUTLOOK
SARASOTA, Fla., Dec 5 /PRNewswire/ -- Central European Distribution Corporation
(Nasdaq: CEDC - news), today announced that for the fourth quarter the Company
expects profits of approximately $0.17 per fully diluted share compared to $0.12
per fully diluted share for the same period in 1999. Sales are expected to rise
by 55% quarter on quarter to $41.6 million. For the full year 2000, the Company
estimates $0.23 per fully diluted share versus $0.47 per fully diluted share for
1999.
William Carey, Chairman and CEO commented, " Having completed the operational
integration of our acquisitions, which were a drag on sales and earnings in the
first through third quarters, we are beginning to see improvements in our growth
rate, where we are expecting to increase sales by 55% in the fourth quarter when
compared to the same period last year. Through improved buying leverage, better
coverage and controlled overheads, this increase in sales is expected to flow
through to our operating income where we foresee an improvement of 125% quarter
on quarter."
Neil Crook, Chief Financial Officer added, "The current re-alignment between the
U.S. Dollar and the EURO has the potential to reduce the impact of foreign
exchange costs for this quarter. We are expecting to be able to increase our
income before tax by 47% for the fourth quarter when compared to the same period
last year. We are confident of being able to deliver a strong performance in the
fourth quarter with an earning per share of approximately $0.17 per fully
diluted share though this is subject to a stable U.S. Dollar versus the EURO
within the quarter."
BUSINESS OUTLOOK
The following statements are based on current expectations. These statements are
forward looking, and actual results may materially differ.
o The Company expects revenue for the fourth quarter 2000 to increase by
55% over the fourth quarter of 1999 and by 29% over the third quarter
2000.
o The Company expects overall gross margins for the fourth quarter to
increase by 44% over the fourth quarter of 1999.
o Expenses (Selling, General and Administration) in the fourth quarter
are expected to be around 20% higher than in the fourth quarter of
1999. This will equate to an S,G&A / revenue percentage of around 9.5%
for fourth quarter 2000 as opposed to 11.8% for fourth quarter 1999.
<PAGE>
o Within OID (Other Income & Deductions) the Company expects to incur
interest expenses of around $270,000 and losses on foreign exchange of
around $345,000.
o The Company expects a fourth quarter tax rate of approximately 34%
though this is subject to any revisions in the deferred tax asset.
The statements made by William V. Carey and Neil Crook and the above statements
contained in this outlook are forward looking statements that involve a number
of risks and uncertainties. In addition to any factors discussed above, among
other factors that could cause actual results to differ materially are the
following;
o Changes in customer ordering patterns.
o Changes in U.S. Dollar versus Polish Zloty and EURO versus Polish
zloty exchange rates.
o Shortage of production capacity at main suppliers.
CEDC is the leading importer of beer, wine and spirits, as well as the largest
distributor of domestic vodka on a nationwide basis in Poland, a four
billion-dollar market at the retail level in 1999. The Company operates
seventeen 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, including brands such as Johnnie Walker Scotch, Stock
Brandy, Sutter Home, Torres, Mondavi and Concha y Toro wines, Miller Genuine
Draft, Corona, Beck's Pilsner, Fosters', Budweiser Budvar and Guinness Stout
beers. CEDC is in talks with CPN, Poland's largest convenience store operator,
for a distribution agreement but has not yet signed a formal agreement. CEDC is
also in contact with other alcoholic beverages producers for exclusive
distribution rights.
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 Security and
Exchange Commission Reports.
For further information please contact Jeffrey Peterson, Executive
Vice-President, at 941-330-1558 or visit our Web site at HTTP://WWW.CED-C.COM
<PAGE>
<TABLE>
<CAPTION>
CEDC
HISTORICAL DATA 9/30 2000 AND 1999
ESTIMATED 4TH QUARTER 2000 / YEAR 2000
ESTIMATED ESTIMATED
9 MONTHS TO 9/30 QUARTER 4 ESTIMATED FULL YEAR ESTIMATED
------------------------ --------------------------- ----------------------------
1999 2000 %GTH 1999 2000 %GTH 1999 2000 %GTH
----- ---- ---- ---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
NET SALES 63450 82146 29.5% 26790 41612 55.3% 90240 123758 37.1%
Cost of Goods Sold 54592 71052 22880 35976 77472 107028
GROSS PROFIT 8858 11094 25.2% 3910 5636 44.1% 12768 16730 31.0%
as % of net sales 14.0% 13.5% -0.5% 14.6% 13.5% -1.1% 14.1% 13.5% -0.6%
S,G&A 6388 9506 -32.8% 3149 3923 -19.7% 9537 13429 -29.0%
as % of net sales 10.1% 11.6% -1.5% 11.8% 9.4% 2.3% 10.6% 10.9% -0.3%
OPERATING INCOME 2470 1588 -35.7% 761 1713 125.1% 3231 3301 2.2%
as % of net sales 3.9% 1.9% -2.0% 2.8% 4.1% 1.3% 3.6% 2.7% -0.9%
Interest Income 256 211 -17.6% 123 20 -83.7% 379 231 -39.1%
Interest Expense -200 -643 221.5% -173 -271 56.6% -373 -914 145.0%
Net FX -377 -742 96.8% 162 -343 -311.7% -215 -1085 404.7%
Other 117 -94 -180.3% -130 10 -107.7% -13 -84 546.2%
Total OID -204 -1268 521.6% -18 -584 3144.4% -222 -1852 734.2%
as % of net sales -0.3% -1.5% -0.1% -1.4% -0.2% -1.5%
INCOME BEFORE TAXES 2266 320 -85.9% 743 1129 52.0% 3009 1449 -51.8%
as % of net sales 3.6% 0.4% -3.2% 2.8% 2.7% -0.1% 3.3% 1.2% -2.2%
taxation 876 91 230 384 1106 475
as % of income before taxation 38.7% 28.4% 31.0% 34.0% 36.8% 32.8%
NET EARNINGS 1390 229 -83.5% 513 745 45.2% 1903 974 -48.8%
as % of net sales 2.2% 0.3% -1.9% 1.9% 1.8% -0.1% 2.1% 0.8% -1.3%
4022 4314 4022 4314 4022 4314
0.35 0.05 0.13 0.17 0.47 0.23
</TABLE>
