Antigua Enterprises Inc. reported a 3.0% sales increase for the second quarter ended June 30, 2005 to $13.2 million from $12.8 million last year. Despite the sales gain, gross margins declined 10 basis points as a percentage of sales while SG&A Expenses increased 130 points. Net income dropped 22.3% for the quarter, down to $0.98 million from $1.261 million last year.
Consolidated Statement of Operations (in U.S. Dollars): Three Months Ended Six Months Ended June 30 June 30 ------------------------ ----------------------- 2005 2004 2005 2004 ----------- ------------ ---------- ------------ Sales $13,191,825 $12,812,206 $22,601,670 $21,642,076 Cost of Sales 8,115,642 7,864,756 14,039,554 13,505,306 ----------- ------------ ---------- ------------ Gross Profit 5,076,183 4,947,450 8,562,116 8,136,770 ----------- ------------ ---------- ------------ Selling Expenses 2,363,742 2,182,674 4,605,977 4,283,456 General & Administrative Expenses 1,246,078 1,158,284 2,268,219 2,227,646 ----------- ------------ ---------- ------------ Operating Expenses 3,609,820 3,340,958 6,874,196 6,511,102 ----------- ------------ ---------- ------------ Income from Operations 1,466,363 1,606,492 1,687,920 1,625,668 ----------- ------------ ---------- ------------ Other Income (Expense): Interest Expense (345,042) (368,777) (657,402) (711,254) Other 19,101 23,759 37,665 47,537 ----------- ------------ ---------- ------------ (325,941) (345,018) (619,737) (663,717) ----------- ------------ ---------- ------------ Income Before Income Taxes 1,140,422 1,261,474 1,068,183 961,951 Provision for Income Taxes 160,228 - 160,228 - ----------- ------------ ---------- ------------ Net Income $980,194 $1,261,474 $907,955 $961,951 ----------- ------------ ---------- ------------ ----------- ------------ ---------- ------------ Net Income Per Share $0.02 $0.03 $0.02 $0.02 Weighted Average Common Shares Outstanding 42,587,190 41,999,202 42,293,196 41,999,202
During the second quarter, the company determined its procedures to expense certain selling and marketing costs during interim periods were not correct. Previously, costs were expensed in the periods management believed would receive the benefit of the expenditures. The correct procedure is to expense the costs when incurred. Operating income shown above has been restated to reflect the correct procedures.