Vita Foods Reports Q2 Sales of $10.2 Million, 1-Cent Per-Share Net Income
04 August 2005 - 12:00AM
PR Newswire (US)
CHICAGO, Aug. 3 /PRNewswire-FirstCall/ -- For the second quarter
ended June 30, 2005, Vita Food Products, Inc. (AMEX:VSF) today
announced a consolidated net income of $51,000, or $0.01 per share,
compared to net loss of $340,000 or $(0.09) per share in the second
quarter of 2004. The Vita seafood segment, which is primarily
engaged in the processing and sale of herring products and cured
and smoked salmon products, experienced a net loss of $(276,000)
compared to net loss of $(561,000) in 2004. This improvement for
the Vita seafood segment primarily arose as result of both
increased sales volume and a mix of sales in favor of higher
margins items. The Company's other business segment, Vita Specialty
Foods ("VSF"), which is engaged in the processing and sale of salad
dressings, marinara sauces, cooking sauces, honey and other
specialty food products, offset Vita seafood's net loss with net
income of $327,000 in the second quarter of 2005 compared to net
income of $221,000 in the second quarter of 2004. This improvement
for VSF was primarily attributable to a $206,000 reduction in
selling and administration expenses, principally those expenses
associated with the distribution effort and resulting from a sales
mix in favor of the larger volume customers. Consolidated net sales
for the second quarter of 2005 were $10.2 million, compared with
$10.7 million in the second quarter of 2004. Vita seafood's net
sales for the second quarter of 2005 were $4.8 million compared to
$4.5 million from the prior year quarter, representing a 6.7%
increase. The increase was due to increased sales of most salmon
products. VSF's net sales for the second quarter were $5.5 million
compared to $6.2 million for the prior year quarter, representing
an 11.3% decrease. The decrease was a result of lower sales of most
major product lines. However, primarily as a result of lower sales
deductions and reduced factory spending, consolidated gross margin
for the quarter increased to 41.7% from 37.5% in the prior year
quarter. "We are pleased to report consolidated profit for the
second quarter. Our efforts to make changes to our business model
and reverse direction are showing results. Both segments are
reporting improved results from the last year quarter and year to
date results," said Steve Rubin, the Company's chairman and chief
executive officer. "We believe the Vita seafood segment will
continue to show both increased revenues and improvements to net
income for the remainder of the year, while the specialty foods
segment will continue to show improvement to net income even if on
a lower sales volume." Six-Month Results For the six months ended
June 30, 2005, the Company had a consolidated net loss of
$(206,000) or $(0.05) per share, compared to a net loss of
$(378,000), or $(0.10) per share for the same period in 2004, an
improvement of $172,000 or $0.05 per share. The Vita seafood
segment had a net loss of $(571,000) compared to a net loss of
$(669,000) in 2004, an improvement of $98,000 or 14.6%. VSF's net
income was $365,000 compared to $291,000 in 2004, an improvement of
$74,000 or 25.4%. Consolidated net sales for the six months were
$21.3 million, compared with $23.3 million for the six months ended
June 30, 2004, representing a decrease of $2.0 million or 8.6%.
Vita seafood's net sales were $10.8 million for the six months,
compared with $11.1 million for the same period in 2004,
representing a decrease of $0.3 million or 3% for the six-month
period, largely a reflection of the retail herring volume. VSF net
sales were $10.5 million for the six months, compared with $12.2
million for the same period in 2004, representing a decrease of
$1.7 million or 13.9%. The largest contributing factors to this
decrease were the sales of lower margin honey products, which were
down $0.9 million or 25%. Vita seafood is a U.S. leader in the
herring and retail packaged salmon markets, and is engaged in
several other food segments, including cream cheese, cocktail
sauce, tartar sauce and horseradish. The Company markets and sells
these items under the Vita(R), Elf(R) and Grand Isle(R) brands.
More than 95% of Vita's sales are in kosher foods. Vita's common
stock is currently traded on the American Stock Exchange and
Chicago Stock Exchange under the ticker symbol VSF. Vita Specialty
Foods, the Company's wholly owned subsidiary, combines the products
of former entities The Virginia Honey Company and The Halifax
Group, Inc. Virginia Honey was a manufacturer and distributor of
honey, salad dressings, including its' award-winning Virginia Brand
Vidalia(R) Onion Vinegarette salad dressing, cooking sauces, jams
& jellies, and gift baskets. Halifax was a manufacturer and
distributor of licensed brand-named products including the
world-renowned Jim Beam(R) brand of steak sauce, barbeque sauce,
marinades, salsas and The Drambuie(R), Kahlua(R), and
Courvoisier(R) Gourmet Collections. Halifax also marketed,
manufactured and distributed the Artie Bucco(TM) line of products
based on the popular HBO(R) series The Sopranos(R), the
award-winning Scorned Woman(R) gourmet food line, the Oak Hill
Farms(R) line of salad dressings and various gourmet products and
branded gift items. This release contains forward-looking
statements about the Company's future growth, profitability,
introduction of new products, and competitive position. Any such
statements are subject to risks and uncertainties, including
changes in economic and market conditions, industry competition,
raw material prices, the success of new product introductions,
management of growth and other risks noted in the Company's filings
with the Securities and Exchange Commission. Readers are cautioned
not to place undue reliance on forward-looking statements, which
reflect management's analysis only as of the date hereof. - -
TABLES FOLLOW - - VITA FOOD PRODUCTS, INC. Condensed Consolidated
Statements of Operations (in thousands, except per share data)
(unaudited) Three Months Six Months Ended Ended Jun 30, Jun 30, Jun
30, Jun 30, 2005 2004 Change 2005 2004 Change Net sales $10,232
$10,658 (4%) $21,252 $23,270 (9%) Cost of goods sold 6,679 7,549
(12%) 14,375 16,326 (12%) Gross margin 3,553 3,109 14% 6,877 6,944
(1%) Selling and administrative expenses Selling, marketing &
distribution 2,156 2,384 (10%) 4,464 4,912 (9%) Administrative
1,073 1,116 (4%) 2,307 2,306 0% Total 3,229 3,500 (8%) 6,771 7,218
(6%) Operating profit 324 (391) 183% 106 (274) 139% Interest
expense 238 176 35% 449 356 26% Income before income taxes 86 (567)
115% (343) (630) 46% Income tax expense 35 (227) 115% (137) (252)
46% Net income $51 $(340) 115% $(206) $(378) 46% Earnings per
common share: Basic $0.01 $(0.09) 111% $(0.05) $(0.10) 50% Diluted
$0.01 $(0.09) 111% $(0.05) $(0.10) 50% Weighted average shares
outstanding: Basic 3,859 3,836 3,859 3,833 Diluted 3,884 3,836
3,859 3,833 DATASOURCE: Vita Food Products, Inc. CONTACT: Clifford
Bolen, Chief Operating Officer, Chief Financial Officer of Vita
Food Products, Inc., +1-312-738-4500, or
Copyright
Vita FD Products (AMEX:VSF)
Historical Stock Chart
From Jun 2024 to Jul 2024
Vita FD Products (AMEX:VSF)
Historical Stock Chart
From Jul 2023 to Jul 2024