VEGA ALTA, Puerto Rico , Nov. 14 /PRNewswire-FirstCall/ - Margo Caribe, Inc. (Nasdaq: MRGO) and its subsidiaries (collectively referred to as the 'Company') reported operating results for the nine months and third quarter ended September 30, 2005 .
Net sales for the nine months ended September 30, 2005 , were approximately $7,672,000 , which represents an increase of approximately 28% or $1,700,000 , in comparison with net sales of approximately $5,972,000 , for the nine months ended September 30, 2004 . The loss from operations for the nine months ended September 30, 2005 , decreased to approximately $248,000 , compared to a loss from operations of approximately $565,000 , for the nine months ended September 30, 2004 . Net loss for the nine months ended September 30, 2005 , decreased to approximately $333,000 , improving by approximately $208,000 or 38% when compared with a net loss of approximately $541,000 , for the nine months ended September 30, 2004 . Fully diluted loss per common share for the nine months ended September 30, 2005 was $0.12 , improving by $0.08 or 40% when compared with the fully diluted loss per common share of $0.20 , for the nine months ended September 30, 2004 .
Net sales for the third quarter ended September 30, 2005 , were
approximately $1,920,000 , an increase of approximately 4.6% or $84,000 , in
comparison with the net sales of approximately $1,836,000 , for the third
quarter ended September 30, 2004 . The loss from operations for the third
quarter ended September 30, 2005 , was approximately $453,000 , compared to a
loss from operations for the third quarter ended September 30, 2004 , of
approximately $269,000 . Net loss for the third quarter ended
September 30, 2005 , was approximately $520,000 , compared to a net loss of
approximately $351,000 , for the third quarter ended September 30, 2004 . The
net loss for the third quarter ending September 30, 2005 , excluding
President and COO Highlights
Juan B. Medina, the Company's President and Chief Operating Officer, stated, 'Even though the Company experienced adverse weather conditions and record rainfall in Puerto Rico during the third quarter, management was pleased to report a reduction in losses from operations for its Puerto Rico subsidiaries when compared to the same quarter for the prior year. Typically, the Company incurs a loss during the third quarter due to the seasonality of our business. Aggregate sales remain strong and gross profit margins continued to improve for the nine months ended September 30, 2005 .
'The acquisition of a mulch and bark manufacturing company, through
'Our sod and tree joint venture,
'Authorization of final government permits for the proposed development of a 425-unit housing project in the Municipality of Arecibo, through our subsidiary Margo Development Corporation, is currently pending and in progress. Recently, we received the Municipality of Arecibo's mayor's re-endorsement to this project.'
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, the distribution of lawn and garden products, including bark and premium mulch manufacturing and sale, the distribution of lawn and garden products 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., 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 Three months ended
September 30, 2005 September 30, 2004
(Unaudited) (Unaudited)
Net sales $1,919,000 $1,836,000
Net income ($520,000) ($351,000)
Net income
diluted
per share ($0.19) ($0.13)
Weighted average
number of
common shares
outstanding 2,288,531 2,755,924
Nine months ended Nine months ended
September 30, 2005 September 30, 2004
(Unaudited) (Unaudited)
Net sales $7,672,000 $5,972,000
Net income ($333,000) ($541,000)
Net income
diluted
per share ($0.12) ($0.20)
Weighted average
number of
common shares
outstanding 2,789,828 2,743,668
Contact:
Luis Carrasquillo
Telephone: +1-787-883-2570, Ext. 1038
SOURCE Margo Caribe, Inc.
