USA: Galaxy Foods Reports First Quarter 2001 Operating Results
Galaxy Foods Company (AMEX: GXY), a leading producer of nutritional, health-promoting dairy and dairy related alternatives for the retail, foodservice and industrial markets, today announced financial results for its fiscal 2001 first quarter ended June 30, 2000. For the three months ended June 30, 2000, net sales increased 8% to $11.3 million, versus $10.4 million in the comparable period of the prior year. Net income for the first quarter of fiscal 2001 increased to $0.7 million, or $0.07 per diluted share, from $0.6 million, or $0.07 per diluted share in the fiscal 2000 first quarter. A $0.2 million deferred tax benefit, derived from net operating losses incurred in past years, was recorded during the fiscal 2000 three-month period. Commenting on the results, Chief Financial Officer Keith Ewing stated, "First quarter results reflect several long-term growth initiatives. We eliminated about $1.3 million in private label sales in the first quarter to allow us to meet demand for our higher margin Veggie and Soyco products. Our margins were down this quarter primarily due to an increase in production staff and the ongoing construction of our new manufacturing lines. Additionally, we increased our marketing budget in line with our strategy of bolstering brand recognition and expanding product distribution." President, Chairman and Chief Executive Officer Angelo Morini commented, "Several of our new product initiatives and strategic partnerships gained momentum in the first quarter, as testing of our Tropicana Ultra Smoothie product began and marketing of our Veggie Milk Bars got under way. Additionally, in line with our corporate goal of 20 SKUs in 20,000 retail outlets worldwide, we have increased our marketing efforts throughout the United States. Soon, we will have the strategic initiatives and the manufacturing equipment in place for continued growth in the expanding healthy foods marketplace."
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