NEWS
BULLETIN
Friday November 21, 8:11 pm ET
CBR Brewing Company, Inc. Reports Operating Results for The Three Months and
Nine Months Ended September 30, 2003 and Status of Licensing Arrangements
HONG KONG, Nov 21, 2003 /PRNewswire-FirstCall via Comtex/ --
CBR Brewing Company, Inc. (OTC Bulletin Board: CBRAF) (the "Company") announced the results of its operations
for the three months ended September 30, 2003, reporting net sales of $17,650,483 and net income of $1,407,289,
as compared to net sales of $15,143,023 and a net loss of $8,730,204 for the three months ended September 30,
2002. Included in net loss for the three months ended September 30, 2002 was a charge of $5,060,241 for the
impairment of property, plant and equipment. Net income (loss) per common share (basic and diluted) was $0.18
in 2003 and $1.09 in 2002. Weighted average common shares outstanding were 8,010,013 in 2003 and 2002 (basic
and diluted).
For the nine months ended September 30, 2003, the Company
reported net sales of $39,962,806 and a net loss of $22,431,130, as compared to net sales of $55,332,746 and
a net loss of $24,653,442 for the nine months ended September 30, 2002. Included in net loss for the nine
months ended September 30, 2003 was a charge of $7,861,446 for the impairment of property, plant and equipment,
as compared to a charge of $14,939,759 for the impairment of property, plant and equipment for the nine months
ended September 30, 2002. Net loss per common share (basic and diluted) was $2.80 in 2003 and $3.08 in 2002.
Weighted average common shares outstanding were 8,010,013 in 2003 and 2002 (basic and diluted).
For the nine months ended September 30, 2003, the Company's
affiliate, Noble Brewery, recorded a charge of $26,457,831 for the impairment of property, plant and equipments.
During the three months ended September 30, 2003 and 2002,
the Company sold 49,127 metric tons and 42,133 metric tons of beer, respectively, an increase of 16.6%. During
the nine months ended September 30, 2003 and 2002, the Company sold 108,556 metric tons and 122,663 metric tons
of beer, respectively, a decrease of 11.5%.
The Company continued to experience weak consumer demand for
its beer products and increasing competition from local and foreign premium brands of beer. In response, the
Company has overhauled its operations and marketing programs, reduced costs and introduced several new local
brand beers. The Company expects that these adverse market conditions will continue in 2003, resulting in
operating losses at least for the remainder of 2003.
The Company, through its subsidiaries and affiliates, is
engaged in the production, distribution and marketing of Pabst Blue Ribbon beer in China. As of September 30,
2003, the Company owned effective interests of 60%, 24% and 33% in three brewing facilities in China producing
Pabst Blue Ribbon beer that are managed by the Company.
Pursuant to a Manufacturing License Agreement dated September 5,
2003 (the "IUL License Agreement") between Pabst Brewing Company ("Pabst") and Inno Up Limited ("IUL"), an
affiliate of the Company, Pabst granted to IUL the exclusive right to produce, distribute and market Pabst beer
in China (excluding Hong Kong) with the right to sub-license. The initial term is for ten years with the right
of IUL to extend for two additional ten year terms (subject to meeting certain minimum manufacturing and
royalty requirements). The IUL License Agreement provides for minimum annual royalties and production
requirements. The effectiveness of the IUL License Agreement is subject to, among other things, the entry
of an order by the Ontario Superior Court of Justice (the "Court") in the reorganization proceedings of
Noble China Inc. approving the termination of the May 1999 license agreement between Pabst and Noble China
Inc. and the entering into of the IUL License Agreement.
On November 18, 2003, the Court granted an order which, among
other things, authorized the termination of the Noble China license agreement and the entry into the IUL License
Agreement. It is anticipated that IUL will enter into sub-license agreements with Noble Brewery and Zhaoqing
Brewery with respect to the continued production, distribution and marketing of Pabst beer in China.
Cautionary Statement Pursuant to Safe Harbor Provisions of
the Private Securities Litigation Reform Act of 1995:
This news release contains "forward-looking" statements, which
are made pursuant to the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995. These
forward-looking statements include, among others, statements of expectations, beliefs, future plans and
strategies, anticipated events or trends, and similar expressions concerning matters that are not historical
facts. The forward-looking statements in this news release are subject to risks and uncertainties that could
cause actual results to differ materially from those results expressed in or implied by the statements
contained herein. The Company undertakes no obligations to revise or update any forward-looking statements
contained herein in order to reflect events or circumstances that may arise after the date of this news
release.
For further information,
contact investor relations at (310) 274-5172.
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