USA: Vita Foods Reports Second Quarter 2000 Results
For the second quarter ended June 30, 2000, Vita Food Products, Inc. (Amex: VSF) today announced a net loss of $110,000, or $0.03 per share, compared with a net loss of $143,000 or $0.04 per share in the second quarter of 1999, a decrease in net loss of $33,000 or $0.01 per share. This is the Company's eighth consecutive quarter of earnings improvement. The 13% increase was primarily due to increased penetration in various geographic markets and higher sales to warehouse club customers. The second quarter loss is typical of Vita's seasonal pattern, which earns most of its income during the fourth quarter, due to traditionally strong sales in advance of Christmas and New Year's Eve.Net sales for the second quarter were $4.76 million, compared with $4.20 million in the second quarter of 1999. Sales of herring products increased 29% and sales of salmon products increased 3% in the quarter. Salmon product sales were bolstered by the continued acceptance of the Company's newer marinated salmon product.Gross margin for the quarter decreased to 26.5% from 29.1% in the prior year. Higher costs of herring, salmon and other materials and labor, without a corresponding increase in prices to customers, have resulted in lower margins, despite lower overhead costs per unit from the higher volumes produced. Offsetting the lower gross margins is a lower operating expense margin, which decreased to 28.0% from 32.7% in 1999. The lower operating expense margin was due to relatively lower sales costs and fixed administrative expenses that did not increase with the 13% increase in sales. The resulting operating profit improvement was $89,000 or $0.02 per share."I am pleased to report our second straight quarter of double-digit sales increases," said Stephen Rubin, President of Vita Food Products, Inc. "Recent acceptance of our newer marinated salmon products is encouraging and hopefully will add to the substantial growth we have experienced this year."
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