Golden Cross
5 years ago
News - Fuego Enterprises, Inc. Reports 2017 and 2018 Full Year Financial Results
News Link:
https://www.accesswire.com/562850/Fuego-Enterprises-Inc-Reports-2017-and-2018-Full-Year-Financial-Results
Friday, October 11, 2019 5:15 PM
MIAMI, FL / ACCESSWIRE / October 11, 2019 / Fuego Enterprises, Inc. (OTC PINK:FUGI):
Full Year 2018 Highlights:
Revenue increased 46.7% to $19.2 million
Gross Profit increased 16.8% to $2.2 million
Net Income of $396,305
Provided over 100,000 travel visas to American citizens traveling to Cuba
Invested $326,616 in new projects
Full Year 2017 Highlights:
Revenue of $13.1 million
Gross Profit of $1.9 million
Net income of $619,612
Invested $730,834 in new projects
Fuego Enterprises, Inc. (OTC PINK: FUGI) (the "Company" or "Fuego") is a diversified holding company that focuses on strategic partnerships and joint venture opportunities in developing and emerging markets. Fuego also makes direct equity investments in a wide range of industries and today reports its financial results for the years ended December 31, 2017 and 2018.
Hugo Cancio, President and Chief Executive Officer of Fuego, said "Fuego's strong financial growth in 2018 demonstrates our unique expertise in operating in developing and emerging markets; by leveraging our global network of relationships and our experienced operators, we entered new markets in Europe and Asia, and made significant development progress in our existing projects. Going forward, we have our sights on navigating risk and volatility to find the best long-term growth opportunities globally, and seek to capitalize on current global economic and business conditions by making investments in small-sized operating companies. As we look to further diversify our operations, we will continue to make opportunistic equity investments in industries where we have operational experience and established networks, and will seek joint venture and strategic partnership opportunities."
Additionally, the Company announces that it will change its annual financial reporting period from a fiscal year end of May 31 to a calendar year end of December 31.
Interested investors and shareholders can find quotes, market information, and financial reports for Fuego Enterprises, Inc., which are filed with the OTC Markets, at http://www.otcmarkets.com/stock/FUGI/quote.
FULL YEAR RESULTS
Revenue
Revenue for the years ended December 31, 2017 and 2018 was $13,076,812 and $19,180,022, respectively. The revenue increase of 46.7% or $6,103,210 during 2018 compared to 2017 was a direct result of increased tourist travel to Cuba from the U.S.
Gross Profit
Gross profit for the years ended December 31, 2017 and 2018 was $1,875,789 and $2,190,439, respectively. Gross margin for the year ended December 31, 2018 was 11.4%, which represents a decrease of 2.9% compared to gross margin of 14.3% for year ended December 31, 2017. This decrease in gross margin was primarily due to an increase in sales of lower margin services such as travel visas. In general, the Company believes gross margins will remain under downward pressure due to a variety of factors, including competition and the sale of travel-related products and services that inherently have low gross profit margins.
Selling, General, and Administrative Expense
Total selling, general, and administrative expense was $1,794,135 in 2018, compared to $1,256,177 in 2017. The year-over-year growth in selling, general, and administrative expense in 2018 of 42.8% or $537,958 was driven primarily by increases in headcount-related expenses, consulting services, and bank fees.
Net Income
Net income for the years ended December 31, 2017 and 2018 was $619,612 and $396,305, respectively. There is no income tax provision for the twelve months ended December 31, 2017 and 2018 due to net operating losses for which there is no benefit currently available.
Results
For the Years Ended December 31,
2017 2018 Change %
Revenue
$ 13,076,812 $ 19,180,022 $ 6,103,210 46.7 %
Cost of Revenue
11,201,023 16,989,582 5,788,559 51.7 %
Gross Profit
1,875,789 2,190,439 314,651 16.8 %
Operating Expenses
1,256,177 1,794,135 537,958 42.8 %
Net Income
$ 619,612 $ 396,305 $ (223,307 ) -36.0 %
Liquidity
The Company's cash totaled $616,541 and $471,945 at December 31, 2017 and 2018, respectively.
During 2018, Fuego generated $477,915 of cash from operating activities. Cash used by investing activities of $816,616 consisted of (1) the purchase of an office condominium for $490,000, and (2) investment in new projects totaling $326,616. Cash provided by financing activities totaled $194,106, which included a mortgage for the purchase of an office condominium for $358,697, and was offset by (1) the repayment of a $80,900 note issued to the Company by a related party, and (2) a note from the Company to a related party for $83,691.
During 2017, Fuego generated $550,362 of cash from operating activities. Cash used by investment activities totaled $730,834, which consisted of investment in new projects. Cash provided by financing activities of $80,900 was related to proceeds from a note issued to the Company by a related party.
Results
As of December 31,
2017 2018
Assets
Current Assets
$ 698,720 $ 521,142
Furniture and Property, net
10,204 486,576
Investments
736,834 1,063,451
Other Assets
6,319 83,691
Total Assets
$ 1,452,077 $ 2,154,859
Liabilities and Stockholders' Equity
Liabilities
Current Liabilities
$ - $ 10,180
Mortgage Payable
- 358,697
Other Liabilities
80,900 -
Total Liabilities
80,900 368,878
Stockholders' Equity
1,371,177 1,785,982
Total Liabilities and Stockholders' Equity
$ 1,452,077 $ 2,154,859
Activities
As Fuego develops its commercial activities by leveraging its management's know-how and global relationships, the Company continues to expand its brand and global reach.
Fuego is actively involved in the following sectors through its subsidiaries and affiliates:
Travel & Hospitality: Full-service travel agency to worldwide destinations and hospitality operations through OnCuba Travel, LLC.
Media & Entertainment: Print and digital magazines and online news portal through OnCubaNews.com, OnCuba Travel Magazine, and Art OnCuba Magazine.
Consumer Products & Promotional Goods: Contract manufacturing and global distribution of consumer goods through OCG, LLC.
Data Analytics: Independent provider of economic and consumer behavior data in Cuba through IslaData, LLC.
E-Commerce: Online marketplace for the sale of Cuban products through Katapulk Marketplace, LLC.
Outlook
Fuego is currently seeking strategic partnerships and joint venture opportunities, as well as direct equity investments in the following industries, with a focus on developing and emerging markets:
Travel & Hospitality, including real estate;
Media & Entertainment;
Consumer Products & Promotional Goods;
Software & Technology;
Infrastructure & Telecommunications; and,
E-Commerce & Big Data Solutions.
All interested parties and potential opportunities are invited to contact the Company below:
Ariel Machado
Vice President & COO, Fuego Enterprises, Inc.
Ariel.Machado@FuegoEnterprisesInc.com
+1 (305) 602-0219 Office
More about Fuego Enterprises, Inc.
Fuego Enterprises, Inc. is a diversified holding company for business opportunities in developing and emerging markets. Fuego makes direct equity investments, launches new business initiatives, and seeks strategic partnerships and joint venture opportunities in the following industries: Travel & Hospitality, including real estate; Consumer Products & Promotional Goods; Software & Technology; Media & Entertainment; Infrastructure & Telecommunications; and, E-Commerce & Big Data Solutions. For more information, please visit www.FuegoEnterprisesInc.com.
More about OnCuba Travel, LLC
OnCuba Travel LLC ("OCT") is an IATAN-certified full-service global travel agency based in Miami, Florida, benefitting from relationships with airlines, hotel chains, and cruise lines around the world. OCT offers comprehensive travel programs to Cuba as a full-service agency with direct investments and active management of hospitality properties in Cuba. For more information, please visit www.OnCubaTravel.com.
More about OnCuba News
OnCuba News is among the most read media platforms covering Cuba, in the world, with over 100 journalists and contributors providing daily coverage on the Cuban economy, sports, culture, art, food, health, fashion, and more, on a global level. Armed with on-the-ground intelligence from its journalists and collaborators, the OnCubaNews.com website reaches more than 600,000 readers per month. Fuego's media division maintains a permanent news media bureau in Havana, Cuba. For more information, please visit www.OnCubaNews.com.
More about OnCuba Travel Magazine and Art OnCuba Magazine
OnCuba Travel Magazine and Art OnCuba Magazine are the only magazines with cross-border publishing and distribution on both sides of the Florida Straits: Havana and Miami. OnCuba Travel Magazine offers a glimpse of Cuban culture and the Cuban people, featuring original content and photography, and packed in an easy-to-read format with cutting-edge design. For more information, please visit and www.OnCubaTravel.com/magazines. Art OnCuba Magazine is a benchmark of Cuban visual arts production, and brings together everything related to artists, galleries, art centers, museums, collections, foundations, and universities. For more information, please visit www.ArtOnCuba.com.
More about OCG, LLC
OCG, LLC ("OCG") is a wholly-owned subsidiary of Fuego that licenses, produces, and distributes consumer products around the world. OCG provides handcrafted souvenirs, destination-unique promotional products, and made-to-order goods as a full-service supplier of reliable, high-quality, and low-cost consumer items. Examples include coffee mugs, ashtrays, t-shirts, postcards, and more. OCG is led by an experienced executive in international trade, logistics/fulfillment, pricing strategy, contract manufacturing, and sales/marketing. OCG has agreements with the leading global travel retailers (duty free stores, cruise lines, etc.), and has ongoing operations in the U.S., Asia, Europe, and the Caribbean. For more information, please visit www.FuegoEnterprisesInc.com.
More about IslaData, LLC
IslaData LLC ("IslaData") is an independent, non-governmental provider of data mining, predictive analytics, and text mining in the Cuban market. Headquartered in Havana, Cuba, IslaData has been independently collecting data and processing information on Cuban user behavior over the past six years from a wide range of sources, in an effort to determine trends and predict outcomes in specific Cuban market segments. For more information, please visit www.IslaData.com.
More about Katapulk Marketplace, LLC
Katapulk Marketplace, LLC ("Katapulk") is an online marketplace and community for the sale of Cuban-made and Cuban-themed products globally. Katapulk's primary target markets are the U.S. and China. Katapulk employs a team of experts and enthusiasts who hand-pick its products, and also works with several designers and artisans who serve as guest curators of the marketplace's collections. Katapulk receives every item directly from the creators, artisans, designers, and private manufacturers in Cuba, and guarantees the authenticity of every product it sells. For more information, please visit www.katapulk.com.
barryl
9 years ago
Hugo Cancio: Cuba's American business connection?
BY DAVID ADAMS
HAVANA Fri Feb 20, 2015 11:48am EST
(Reuters) - Hugo Cancio believes he's the new face of American-style entrepreneurship in Cuba.
The Cuban-born Miami resident made his mark in music, promoting Cuban and other Latino acts. His company's stock is public and a handful of investors say they're betting on him.
Cancio, 50, also publishes magazines in Havana. Telecom companies are partnering with him. U.S. cable networks, private equity funds and law firms ask for Cancio's take on the thaw in relations between the United States and Cuba announced by President Barack Obama in December.
He even got to hang out recently with American TV comedian and talk show host Conan O'Brien, who was in Havana taping an upcoming show.
Antonio Zamora, a Miami lawyer aiming to do business in Cuba, said Cancio "is way ahead of the game" in terms of Havana connections.
But there are risks. His company, Fuego Enterprises Inc FUGI.PK may trade through over-the-counter pink sheets, but it hasn't reported results for six years. The last time: in early 2009 it reported a loss and sharply declining revenues.
He's also been in and out with the Cuban authorities and had a legal scrum with the music company founded by the Beatles.
"Hugo is the best Cuba play we have and also the most speculative," said Cancio's largest investor, Thomas Herzfeld, the Miami Beach founder of the Herzfeld Caribbean Basin Fund, a Cuba-focused mutual fund. "It's not one I could recommend. The financials aren't there. But it is one I want to own."
That some investors are willing to bet on Cancio, despite past problems reflects how few American businessmen have lines into Cuba government entities. Cancio's credibility with the Cubans, associates said, stems in part from his outspoken opposition to the U.S. embargo imposed since 1962, as well as his deep Cuban roots.
Cancio's level of access in Havana and Cuba's diplomatic missions in Washington and New York is impressive for an American, his advocates said.
"He stuck his head neck out in Miami and that's why Cubans respect him," said Ralph Patino, 57, a Cuban-American lawyer and Obama fund-raiser.
Cuba does not typically comment on business ventures in its country, but officials privately acknowledged that Cancio enjoys a high level of trust.
MUSIC MAN
Cancio was born into the music business.
His father, Miguel, was founder of Los Zafiros, a popular 1960s group in Cuba, though its American-influenced Doo-wop sound was censored.
Cancio was expelled from school for telling a joke about Fidel Castro. His single mother, fearing that young Hugo's future wasn't rosy as a result, fled to Miami with the family in the 1980 Mariel boatlift, an exodus of 120,000 people.
In Miami he worked in a car dealership as a high school student to help the family. In the early 1990s he heard Cuba was opening up to exile family visits and launched a travel business.
He finally made his first trip back to Havana in 1994. There, he met Fidel Castro at a function for exiles. Cancio used the opportunity to, among other things, get in the music business, producing a movie about his father's band.
LOVE AND HATE
Passionate about his homeland, Cancio has had a rocky relationship with the Cuban government and other exiles in Miami. In the 90s, as he emerged as an important figure in the Cuban-American community, Cancio was an advocate for ending the U.S. embargo against Cuba and was accused of being a communist as a result.
But Cancio was hard to pigeon-hole. In 2003, he was banned from Cuba for a year after denouncing a crackdown on political dissidents.
Cancio stayed away for five years. During that time, he formed Fuego in an attempt to cash in on a U.S. boom in Hispanic music.
FINANCIAL STRUGGLES
His business struggled. The last time Fuego officially reported financial results it disclosed that in the nine months ended February 2009, its revenues were just $17,477, down 93 percent from the year-earlier period. It lost $113,917.
In the previous year ended May 2008, the company's auditor, Moore & Associates, said there was “substantial doubt” about Fuego’s ability to survive. The year before there had been a similar comment from auditor Braverman International.
Fuego said in the 2008 annual filing that it had a deficit in working capital, it was delinquent filing tax returns and was past due on the majority of its accounts payable.
Cancio said Fuego was a young company hit hard by the recession. “We switched gears and decided to move away from the music business and focus instead on quietly positioning ourselves in Cuba,” he said.
Cancio, who is identified as the company’s president, treasurer, secretary and director, was also sued by Apple Corps Ltd in 2008 after he acquired recordings of the Beatles. Apple's lawyers charged that the 1962 live tracks were recorded without the band's permission; the case was settled out of court.
THE THAW
After Obama was elected in 2008, and launched a new opening with Cuba, Cancio gave his homeland another try.
He was welcomed back, in large part due to his opposition to the embargo and his efforts at reconciliation between Havana and Miami. He promoted a U.S. tour for Cuban singer Silvio Rodriguez, including a sold-out show at Carnegie Hall in 2010. A concert with another Cuban star, Pablo Milanes, went off without a hitch in Miami despite protests.
"I realized at the time," said Cancio, "the time was right for both sides."
In 2012, sensing a shift in policy, he launched two glossy lifestyle publications in Havana called OnCuba and ArtCuba and a website. A third publication, focusing on the emerging real estate market, is due out in April.
His business Fuego has evolved in other ways. It owns MAScell, a Miami prepaid phone card firm that operates in Cuba and has exclusivity deals with two other telecoms looking to do business in Cuba. Blackstone, another Miami prepaid phone card firm with around $500 million in annual revenues, is one of those seeking Cancio's help.
"It's hard to know what opportunities are available or what Cuba wants," said Blackstone CEO, Luis Arias. "But Hugo is on the ground and he knows who's who."
THE FUTURE
In 2011, Fuego reported in a press release unaudited revenues of $2 million largely due to the concert successes. It did not say if it was profitable. There have been no updates since, though Cancio said he expects the company to return to profitability this year.
Fuego's shares are very thinly traded but they did sharply rise on the news of the U.S.-Havana deal, climbing to a high of $1.13 from just 10 cents within a couple of days. They have since dropped back to 93 cents at the close on Feb. 18.
Fuego said last December it planned to become, in the next several weeks, fully compliant with SEC reporting requirements. It has yet to do so.
Meanwhile, Cancio is taking the long view about the U.S.-Cuba relationship. He believes it will take years before Cuban officials and the United States work out the kinks to make investing safe for business.
"It's going to be gradual, he said, "and Cuba will probably pick and choose who they do business with."
(This story was refiled to insert dropped word in third paragraph, to edit tenth paragraph, fixe spelling errors and punctuation throughout)
(Editing by Hank Gilman and Martin Howell)
goldbarren58
11 years ago
Fuego Enterprises, Inc. signs an MOU to acquire control of The Americas Group Cuba Business Enterprise (TAGCBE)
Print
Fuego Enterprises, Inc. (PN) (USOTC:FUGI)
Intraday Stock Chart
Today : Thursday 31 January 2013
MIAMI LAKES, Fla., Jan. 31, 2013 /PRNewswire/ -- The Americas Group Cuba Business Enterprise (TAGCBE), a company focused on providing strategic advice to individuals and companies interested in doing business with Cuba and /or investing in Cuba as regulations permit, has announced the signing of a Memorandum of Understanding (MOU) to sell control of TAGCBE to Cuba Business Development Group Inc. (CBDG) in exchange for shares in its parent Company, Fuego Enterprises, Inc. (OTCPINK: FUGI).
TAGCBE is a division of The Americas Group ( www.theamericasgroup.net ) which has extensive relationships with foreign companies currently doing business in Cuba through its 40 years presence in Latin America and in additional developing markets. Cuba is one of the great remaining "last frontiers" in the Western Hemisphere which presents enormous opportunities for U.S. business interests due in part to its size, diverse and beautiful environment and, most significantly, its geographic proximity to the mainland United States.
TAGCBE believes it is timely and important for U.S. Companies to seriously begin monitoring the prospects and environment for doing business in Cuba and to begin tracking the Cuban market and policies, so they are prepared to make a move when the regulations permit. Towards that end we have assembled a group of synergistic investor partners with expertise and skills in a broad variety of sectors.
Howard Glicken, Chairman of the Board of TAGCBE and The Americas Group said, "CBDG and Fuego will provide an exceptionally well connected presence in Cuba through 20 years of experience in doing business with Cuba which will offer TAGCBE the in country management experience we have been seeking to execute our mission. We are very pleased to be working with such a high quality group."
CBDG, ( www.cbdg.co) a fully owned subsidiary of Fuego Enterprises, Inc. (FUGI), provides strategic and business solutions for opportunities in Cuba and the Caribbean basin markets. The company currently owns and/or manages or is an associate in a number of separate business segments with direct relationships in Cuba. The company currently provides strategic consulting services to businesses with an interest in the Cuban market in the delivery of international products, services and technologies into in a number of segments such as telecommunications, gift parcels and cargo transportation to and from Cuba. The company through its media group is committed to support all group-related products and services.
Fuego Enterprises, Inc. is a diversified holdings company with operations in media and entertainment. Fuego specializes in the production, promotion and distribution of Cuban media entertainment services with cultural relevance within the United States and the world, Fuego, also publishes OnCuba, the first Cuba focus monthly bi-lingual magazine publication with national distribution in the US. OnCuba in both print and electronically formats (www.oncubamagazine.com). is distributed in over 59 Barnes & Noble stores throughout the United States it is also the official and exclusive inflight magazine for almost all flights from the US to Cuba.
CBDG, through its subsidiaries Mobile Activation Services (http://www.mascell.com) and Universal Network Operations Cargo (UNOcargo) owns licenses granted by the U.S. Department of Commerce and the Office of Foreign Assets Control (OFAC) to conduct certain international trade, free of certain restrictions under U.S. laws prohibiting financial dealings with Cuba. Consistent with the U.S. guidelines of the Trade Sanctions Reforms and Export Enhancement Act, CBDG intends to operate a number of Cuban business initiatives pursuant to these license agreements. CBDG also intends to assist other U.S. businesses export their products and services to Cuba.
Hugo Cancio, Founder, Chairman and CEO of Fuego Enterprises and CBDG will become Chairman and CEO of The Americas Group Cuba Business Enterprise (TAGCBE). Cancio said, "This acquisition fully fits with our strategy to drive growth in key areas and markets where we are able to fully leverage our unique expertise, capitalize on years of experience and solid relationships, and deliver shareholder value with stronger and more stable growth. We are very excited about our association with the prestigious Americas Group."
Safe Harbor Statement
This press release contains statements, which may constitute forward-looking statements within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934, as amended by the Private Securities Litigation Reform Act of 1995. Those statements include statements regarding the intent, belief or current expectations of Fuego Enterprises, Inc., members of their management, and assumptions on which such statements are based. Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially from those contemplated by such forward-looking statements.
CONTACT
Investor Contact:
Fuego Enterprises, Inc.
Hugo Cancio, President
15476 NW 77th Ct., Suite 105
Miami Lakes, FL
(305) 823-9193
SOURCE Fuego Enterprises, Inc.
Copyright 2013 PR Newswire
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