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Re: goldbarren58 post# 5926

Friday, 10/11/2019 6:04:48 PM

Friday, October 11, 2019 6:04:48 PM

Post# of 5932
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.

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