USA: Overhill announces third quarter profit
For its third quarter of fiscal 2001, the Company reported revenues of $53,500,000 as compared to $46,648,000 for the same period last year, an increase of 15%. Net income for the period amounted to $640,000 ($.04 per share) as compared to $1,025,000 ($.06 per share) for the same period last year.
For the nine months ended June 30, 2001, the Company's revenues were $149,346,000, as compared to $134,578,000 for the same period last fiscal year, an increase of 11%. The revenue increase is due to continued sales improvement by the Company's Overhill Farms subsidiary. Operating income decreased to $7,136,000 in 2001 from $8,693,000 in 2000, due primarily to first quarter start-up expenses related to the Chicago Brothers acquisition and energy cost increases experienced by Overhill Farms and by the effect on Texas Timberjack of a continued softness in the East Texas timber market.
Net income for the current nine month period decreased to $1,156,000 ($.06 per share) from $2,177,000 ($.12 per share) in 2000. The prior year's nine month results included an extraordinary expense of $1,290,000 related to an early extinguishment of debt and a gain of $351,000 on the reacquisition of preferred stock.
In discussing the Company's results, James Rudis, Overhill Chairman and Chief Executive Officer, stated, "We continue to be pleased with the sales increases by Overhill Farms. Overhill's sales have increased primarily in the foodservice and airline segments, which is particularly encouraging in light of a somewhat weakening economy. With respect to our Forestry Group, we are hopeful that Texas Timberjack, although facing a difficult market, will continue to improve on somewhat modest third quarter operating increases."
The Company also announced that its Board of Directors will meet next week to review and vote on implementing a management proposal regarding a strategic alternative for the Company.
Overhill is a holding company with nationwide operations in frozen food and forestry industries.
This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward- looking statements are based on current expectations or beliefs, including, but not limited to, statements concerning the Company's operations and financial performance and condition. For this purpose, statements of historical fact may be deemed to be forward-looking statements. The Company cautions that these statements by their nature involve risks and uncertainties, and actual results may differ materially depending on a variety of important factors, including, among others, the impact of competitive products and pricing; market conditions and weather patterns that may affect the cost of raw material as well as the market for the Company's products; changes in the Company's business environment, including actions of competitors and changes in customer preferences; changes in governmental laws and regulations, including income taxes; market demand for new and existing products; and other factors as may be discussed in the Company's Report on Form 10-K for the year ended September 30, 2000, and other reports filed with the Securities and Exchange Commission.
OVERHILL CORPORATION AND SUBSIDIARIES CONDENSED SUMMARY OF OPERATIONS For the Three Months Ended June 30, 2001 2000 Net revenues $53,500,367 $46,647,829 Gross profit 9,804,429 9,137,836 Operating income 2,701,555 2,747,392 Net income 639,518 1,025,373 Net income attributable to common stockholders $639,518 $1,025,373 Weighted average shares Basic 17,827,464 17,812,464 Diluted 17,872,040 17,887,793 Net income per share - basic and diluted $.04 $.06 OVERHILL CORPORATION AND SUBSIDIARIES CONDENSED SUMMARY OF OPERATIONS For the Nine Months Ended June 30, 2001 2000 Net revenues $149,346,356 $134,478,013 Gross profit 27,795,380 27,376,549 Operating income 7,136,037 8,692,891 Income before extraordinary item 1,155,685 3,115,951 Extraordinary item--early extinguishment of debt --- (1,290,431) Net income 1,155,685 1,825,520 Gain on reacquired preferred stock --- 351,457 Net income attributable to common stockholders $1,155,685 $2,176,977 Weighted average shares Basic 17,826,090 17,812,464 Diluted 17,878,631 18,177,101 Net income per share - basic and diluted: Before extraordinary item $.06 $ .19 Extraordinary item --- (07) Net income per share $ .06 $ .12 OVERHILL CORPORATION AND SUBSIDIARIES CONDENSED BALANCE SHEET DATA June 30, September 30, 2001 2000 Current assets $67,672,422 $68,892,161 Property and equipment, net 8,376,811 7,928,906 Other assets 27,563,032 27,811,686 Total assets $103,612,265 $104,632,753 Current liabilities $32,665,171 $30,474,365 Other liabilities 57,611,783 62,239,121 Warrants 3,104,972 2,806,175 Stockholders' equity 10,230,339 9,113,092 Total liabilities and stockholders' equity $103,612,265 $104,632,753
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