VEGA ALTA, Puerto Rico , Aug. 9 /PRNewswire-FirstCall/ -- Margo Caribe, Inc., (Nasdaq: MRGO) and its subsidiaries (collectively referred to as the 'Company') reported operating results for the second quarter ending June 30, 2005 , and six months ended June 30, 2005 .
Net sales for the second quarter ended June 30, 2005 , were $3,279,000 , an increase of approximately 68% or $1,328,000 , in comparison with the second quarter ended June 30, 2004 . Income from operations for the second quarter ended June 30, 2005 , was $206,000 , compared to a loss from operations for the second quarter ended June 30, 2004 , of $258,000 . Net income for the second quarter ended June 30, 2005 , was $162,000 , compared to a net loss of approximately $212,000 for the second quarter ended June 30, 2004 . Fully diluted income per common share for the second quarter ended June 30, 2005 , was $0.07 , compared to fully diluted loss per common share of $0.10 for the second quarter ended June 30, 2004 .
Net sales for the six months ended June 30, 2005 , were $5,753,000 , which is an increase of approximately 28% or $1,615,000 , in comparison with the six months ended June 30, 2004 . Income from operations for the six months ended June 30, 2005 , was $217,000 , compared to a loss from operations for the six months ended June 30, 2004 , of $296,000 . Net income for the six months ended June 30, 2005 , was $186,000 , compared to a net loss of approximately $191,000 , for the six months ended June 30, 2004 . Fully diluted income per common share for the six months ended June 30, 2005 , was $0.08 , compared to fully diluted loss per common share of $0.09 for the six months ended June 30, 2004 .
President and COO Highlights
Juan B. Medina, the Company's President and Chief Operating Officer,
stated that, 'Our growth in net sales and improvement in net income continued
during the second quarter for 2005 as expected. The new business model
established in 2005 is a result of the implementation of our business strategy
developed at the beginning of the year 2004 and has begun to provide positive
results. The expansion of our operations in the U.S. market through our new
wholly owned subsidiary,
'Puerto Rico's operations are improving as planned. Net sales increased by $371,000 , or 20%, in the second quarter of the year 2005, when compared with the first quarter of the year 2005.
'Puerto Rico's operations net sales for the second quarter ended June 30, 2005 , were $2,159,000 , an increase of approximately 11% or $208,000 , in comparison with the second quarter ended June 30, 2004 . Results of operations improved significantly, reporting a loss from operations of $69,000 , for the second quarter ended June 30, 2005 , compared to a loss from operations for the second quarter ended June 30, 2004 , of $258,000 . Net loss for the second quarter ended June 30, 2005 , was $75,000 , compared to a net loss of $212,000 for the second quarter ended June 30, 2004 .
'Puerto Rico's operations net sales for the six months ended June 30, 2005 , were $4,010,000 , compared to net sales of $4,138,000 , for the six months ended June 30, 2004 . Results from operations improved, reporting a loss from operations of $175,000 for the six months ended June 30, 2005 , compared to a loss from operations for the six months ended June 30, 2004 , of $296,000 . Net loss for the six months ended June 30, 2005 , was $151,000 , compared to a net loss of approximately $191,000 for the six months ended June 30 , 2004.'
For the six months ended June 30, 2005 , the performance of Salinas Holdings, Inc., a joint venture in which the Company has a one-third equity interest, yielded almost identical results to those reported for the six months ending June 30, 2004 . Net sales for Salinas Holdings amounted to $551,000 for the six months ended June 30, 2005 , with a net income of $133,000 for the same period, compared to sales of $568,000 and net income of $140,000 for the same period of 2004. Sales and income were hurt during the second quarter of 2005 due to above-average rainfall, which curtailed the Company's ability to sell sod.
About Margo Caribe
Margo Caribe, Inc. and its subsidiaries are in the lawn and garden business. The Company is also engaged in the manufacturing and distribution of its own line of planting media and aggregates ('Rain Forest'), the distribution of lawn and garden products, including bark and premium mulch manufacturing and sale, and also in providing landscaping design and installation services. In addition, since 2003, the Company acts as sales representative for several consumer goods brands in Puerto Rico . The Company's real estate development subsidiary is in the process of obtaining the required permits for an affordable housing project in the Municipality of Arecibo, Puerto Rico .
The Company's operations include: Margo Caribe, Inc. (the holding
company); Margo Nursery Farms, Inc. ('Nursery Farms') ('d/b/a Margo Farms del
Caribe'); Margo Landscaping & Design, Inc. ('Landscaping');
Forward-Looking Statements
When used in this press release or other public or shareholder communications, or in oral statements made with the approval of an authorized executive officer, the words or phrases 'would be,' 'will allow,' 'anticipates,' 'intends to,' 'will likely result,' 'expect,' 'are expected to,' 'will continue,' 'is anticipated,' 'believes,' 'estimate,' 'project,' or similar expressions, are intended to identify 'forward-looking statements' within the meaning of the Private Securities Litigation Reform Act of 1995.
The Company wishes to caution readers not to place undue reliance on any such forward-looking statements, which speak only as of the date made, and to advise readers that various factors, including regional and national economic conditions, natural disasters, competitive and regulatory factors and legislative changes, could affect the Company's financial performance and could cause the Company's actual results for future periods to differ materially from those anticipated or projected.
The Company does not undertake, and specifically disclaims any obligation, to update any forward-looking statements to reflect occurrences or unanticipated events or circumstances after the date of such statements.
MARGO CARIBE, INC. AND SUBSIDIARIES
Summary of Consolidated Financial Results
Three months ended Six months ended
June 30, June 30,
2005 2004 2005 2004
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
Net sales $3,279,000 $1,951,000 $5,753,000 $4,138,000
Net income $162,000 ($212,000) $186,000 ($191,000)
Net income
diluted per share $0.07 ($0.10) $0.08 ($0.09)
Weighted average
number of common
shares outstanding 2,279,814 2,193,470 2,275,913 2,190,077
CONTACT:
Luis Carrasquillo
Telephone: +1-787-883-2570, Ext. 1038
SOURCE Margo Caribe, Inc.
