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Lion-Gri International, Inc. Announces Financial Results for First Quarter 2005
Lion-Gri International, Inc. (OTCBB:LGII) today announced its results for the quarter ended March 31, 2005. Lion-Gri, based and operating in Moldova, is a leading Eastern European producer and exporter of quality wines and alcohol sold throughout the world.
Lion-Gri had consolidated revenues for the three months ended March 31, 2005, of $2,867,374 as compared to $2,969,415 for the three months ended March 31, 2004, a decrease of or $102,041 or 3.4%. Historically, the Company experiences lower sales volumes in the first quarter of each year, while realizing increases during the remainder of the year. A 3.4% reduction over the previous year was attributable to a decrease in sales of wines in Russia as a result of increased shipments to the Russian market in the previous quarter.
Gross profit for the three months ended March 31, 2005 was $720,898 or 25.1% of revenues as compared to $655,979 or 22.1% of revenues for the three months ended March 31, 2004, an increase of $64,919, or 9.9%. This increase was due in part to the Company's ability to take advantage of lower grape juice and bulk wine prices in 2004.
Selling and marketing expenses for the three months ended March 31, 2005, were $262,144 as compared to $319,773 for the three months ended March 31, 2004, a decrease of $57,629 or 18%. The decrease is attributed in part to lower transportation costs.
For the three months ended March 31, 2005, general and administrative expenses were $148,543 as compared to $185,831 for the three months ended March 31, 2004, a decrease of $37,288 or 20%. The Company continues to implement cost reduction and operating efficiencies while increasing production and storage capabilities.
This strategy combined with new distribution agreements, new products and expanded markets will work towards ensuring Lion-Gri's continued profitability.
"Generating a 20% reduction in general and administrative expenses was an outstanding achievement for Lion-Gri and our management team. The financial results for this quarter demonstrate the Company's focus and is continuing to be pro-active in constructing a viable and healthy enterprise while creating shareholder value and sustainability. I believe this is the goal for any company who is serious about establishing its future," said Greg Sonic
Additionally, Mr. Sonic attributed certain events that contributed to Lion-Gri's improved image as a leading wine-maker in the domestic and international markets.
On February 18, 2005, Republic of Moldova Government's Decree No. 74 dated January 30, 2005, awarded Lion-Gri the "First Level Special Diploma" for achievements in the field of quality, productivity and competitiveness and was further honoured with the title of "The Best Taxpayer of the Year". There were 110 of Moldova's top companies competing. The criteria for selecting the companies are financial and economic indicators of a company's activity; timely allotments to governmental budget; high level of productivity and profitability; increased concern to the extent of production and management improvement; qualitative products produced according to international standards; investments and contribution to the development of vineyards and winemaking in Moldova.
As a result of this nomination, Lion-Gri is exempted from the financial and tax controls from the side of corresponding state bodies.
Lion-Gri recently introduced 4 new product series of high-quality wines. Mr. Sonic said, "These series are due to the considerable cooperation of our best winemakers and marketing department and resulted in the creation of exceptional wines."
Lion-Gri International, Inc. Announces CEO & President Greg Sonic Wins the Commonwealth of Independent States Director of the Year Award
NEW YORK, June 17, 2005 (PRIMEZONE) -- On June 9, the Russian daily Tribuna's 10th Annual Commonwealth of Independent States (CIS) Director of the Year Awards event took place and Lion Gri's own Mr. Greg Sonic was named Director of the year. Mr. Sonic was among the award winners and accepted this prestigious award presented by Editor-in-Chief, Mr. Victor Andrianov, of the Rabochaya Tribuna. The award is supported by CIS governments, CIS Inter-parliamentary Assembly and Russian Manufacturers' Union.
Mr. Sonic will be named in the upcoming "Book of CIS Top 100 Leaders in Industry and Science." CIS's Top 100 publication represents a "who's who," naming prominent industrialists and research companies, and features top entrepreneurs in their respective fields.
Mr. Sonic stated, "I am honored to be given this kind of recognition among my peers and to be in the company of other winners that are outstanding leaders, including Mr. Evgheniy Primakov, President of the Russian Chamber of Industry and Commerce (former Prime-Minister of the Russian Federation); Yuri Luzhkov, Mayor of Moscow; Mr. Aleksandr Hloponin, Governor of Krasnoyarsk; Mikhail Kalashnikov, the chief constructor of "Izhmash" enterprises (designer of the Kalashnikov "AK" automatic weapon); and other governors, ministers, academicians, presidents and directors of companies from all of the CIS."
Mr. Sonic continued, "I am very privileged to receive this honorable award as an acknowledgement of my company's ongoing success and its dedication to produce fine wine. I extend my appreciation to our staff and customers worldwide for helping Lion Gri continue on its path to creating world-renowned wines."
Lion-Gri International, Inc. Announces 2004 Year-End Results; Record Revenues Recorded and Return to Profitability
NEW YORK
Lion-Gri International, Inc.
Veasti Ciumac, 212-838-1521
or
Investor Relations Contact:
Strategic Growth International, Inc.
Stan Altschuler/Richard Cooper, 212-838-1444
saltschuler@sgi-ir.com
rcooper@sgi-ir.com
Lion-Gri International, Inc. (OTCBB:LGII) today announced its results for the fiscal year ended December 31, 2004. Based in and operating in Moldova, Lion-Gri is one of the leading Eastern European producers and exporters of quality wines and alcohol sold throughout the world.
For the year ended December 31, 2004, Lion-Gri had consolidated revenues of $12,528,613, as compared to $11,729,877 for the year ended December 31, 2003, an increase of $798,736 or 6.8%. Lion-Gri reported net income for the year ended December 31, 2004, of $666,726, compared to a net loss for the year ended December 31, 2003, of $(717,046). This translates to overall per-share income of $.01 for the year ended December 31, 2004, compared to per-share loss of $(.02) for the year ended December 31, 2003. Lion-Gri reported comprehensive income for the year ended December 31, 2004, of $1,004,824, compared to a comprehensive loss the year ended December 31, 2003, of $(504,093). This translates to overall per-share comprehensive income of $.02 for the year ended December 31, 2004, compared to per-share comprehensive loss of $(.01) for the year ended December 31, 2003.
The year-end results reflect initiatives started by the Company in the last few years regarding broadening its revenue base, investing in new products and creating operating efficiencies.
Revenues, which expanded in 2004 and are continuing to expand in 2005, were positively impacted by the long-term distribution agreement entered into at the end of 2004 with RusImport, a leading importer and distributor of wine in the Russian Federation market. By the beginning of 2005, RusImport made an important contribution to the revenues of the Company through the commencement of wine imports -- already in excess of 650,000 bottles of wine. This relationship has brought Lion-Gri even greater recognition in this large and important wine market, and we believe will lead to expansion of this business during 2005. Increased sales were also attributable to the successful efforts made by the Company to increase wine sales in both the western European and American markets. By the end of 2004, Lion-Gri wine and other products were sold through key distribution relationships in Germany, Italy, Belgium, the Netherlands, the United States, and in more than 12 other countries.
The Company has recognized the growing importance of the U.S. beverage market through the strengthening of its relationships with its principal US distributor during 2004, increasing its sales network and establishing a north-American general manager based in New York City.
New product development and introduction continued to be a major thrust of the Company in 2004. More than 6 new premium wine series were introduced to the Russian Market, Ukraine, Belarus and the Czech Republic in 2004. The Company's premium brandy was launched at the end of 2004 in Russia.
The company continued in 2004 to make over $2,800,000 of capital expenditures, in order to create important future operating efficiencies that the company has already begun to benefit by. Recognizing the importance of creating its own base of supply of grapes for wine production, during 2004, the Company planted an additional 293 hectares of vines, including premium saplings from France and Germany. The Company currently has over 1,545 hectares of land, of which more than 610 hectares are currently under cultivation.
The Republic of Moldova has recently created substantial incentives for this type of cultivation activity. Beginning with land under cultivation in 2004, a fund will be available in Moldova, the proceeds of which will be available for the subsidy of new vineyard plantations.
According to Greg Sonic, President, "We are very pleased with Lion-Gri's 2004 results. During 2004 we have continued to increase revenues while simultaneously decreasing costs and returning to profitability. Today, the company continues to explore new markets for its existing products while at the same time introducing new innovative products, like brandy."
According to Mr. Sonic, "We are optimistic that our investment in superior products, production facilities, our building international presence, and the momentum we have achieved in 2004, will continue in 2005 through a significant increase in our sales in all business sectors."
About Lion-Gri International, Inc.
Through Lion-Gri S.R.L., a limited liability company in the Republic of Moldova, Lion-Gri International, Inc. produces and exports 120 varieties of wine and alcohol products throughout Russia, Denmark, Poland, Western Europe and the United States. Shipping more than 16 million bottles of wine annually, Lion-Gri has grown into one of the largest wine producers in Moldova. For more information about the Company, see http://www.lion-gri.com.
Forward-Looking Statements
Statements in this press release that are not statements of historical or current fact constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties, and other unknown factors that could cause the actual results of the Company to be materially different from the historical results or from any future results expressed or implied by such forward-looking statements. In addition to statements which explicitly describe such risks and uncertainties, readers are urged to consider statements labeled with the terms "believes," "belief," "expects," "intends," "anticipates," "will," or "plans" to be uncertain and forward-looking. The forward-looking statements contained herein are also subject generally to other risks and uncertainties that are described from time to time in the Company's reports and registration statements filed with the Securities and Exchange Commission.
