Tasty Baking Company (NYSE:TBC), today announced record financial results for the fourth quarter and fifty-three weeks ended December 30, 2000.
For the fourth quarter, gross sales increased 10.9% to $65.1 million, compared with $58.7 million for the same period last year. Gross sales, less discounts and allowances, resulted in net sales of $42.4 million, compared with $38.7 million reported the same period last year, an increase of 9.6%. For the fourteen weeks, net income increased 10.6% to $2.5 million, while net income per diluted share increased 10.3% to $0.32 per diluted share compared with $0.29 per diluted share during the comparable period in 1999.
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For the fifty-three weeks ended December 30, 2000, gross sales increased 10.3% to $249.7 million, compared with $226.4 million last year. Gross sales, less discounts and allowances, resulted in net sales of $164.3 million, compared with $150.7 million reported for the same period last year, an increase of 9%. Net income was $8.1 million, or $1.04 per diluted share, compared with $4.7 million, or $0.60 per diluted share reported for the same period last year. As previously reported, in the first quarter 1999 the Company incurred charges for a route restructure and change in accounting principle for startup costs, which combined, represent $0.10 per diluted share. Therefore, on an operating basis, net income per diluted share for the fifty-two weeks ended December 25, 1999, was $0.70. The net income per diluted share of $1.04 for the fifty-three weeks ended December 30, 2000, represents a 49% increase over the operating results for the comparable period in 1999.
Carl S. Watts, Chairman and Chief Executive Officer, commented, “We are delighted with our record results for the fourth quarter and the year 2000. Our fourth quarter increase of 10.9% in gross sales is particularly rewarding considering that the overall category results were relatively flat to slightly ahead. This is the fifth consecutive quarter now with strong sales and earnings growth. Every phase of our business continues to perform according to our plans. Route sales operations showed a 7% dollar increase for the quarter and an 8% increase for the year. It is important to note that we showed a total unit sales increase of 10% for the quarter and 11% for the year.”
Mr. Watts added, “We are extremely pleased with the results of the national sales effort, achieving an overall increase of 20% for the year. The West Coast and other areas of the Mid-West continue to grow and we believe we are positioned for sustained growth in 2001. We are pleased that our relationship with Wal-Mart continues to grow with the addition of new products such as Donut Holes, Mini Donuts and other snack varieties. As we look to the future, we expect to see continued growth with Wal-Mart in 2001 and beyond.”
Mr. Watts noted, “Despite unprecedented increases in energy costs throughout the second half of the year 2000, we were able to work directly with other operating expenses and plant efficiencies to help offset some of these major increases. We are continuing with our modernization program at the Hunting Park Avenue plant and also with the installation of an additional production line at our Oxford facility. These activities will give us increased production capabilities as we look ahead to the year 2001. As we had previously announced, we opened our first Tastykake thrift outlet in September 2000. We currently have six stores up and operating and producing results above expectations. We expect to have twenty stores open and operating in the year 2001. These stores are instrumental in helping us to recoup some of the costs incurred with the aggressive distribution of our new multi-serve Classic Baked Goods line of products and also to improve overall operating efficiencies.”
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By GlobalDataMr. Watts concluded, “Looking forward, we believe we have the plans in place that will provide additional growth for the Tastykake brand. Through new products and new distribution, Tastykake products will be offered to more consumers in more places than ever before in the history of the Company.”
Tasty Baking Company is one of the largest independent baking companies in the United States, and is the leading snack cake provider of the Mid-Atlantic region. The Company operates three bakeries in the Mid-Atlantic region, and distributes its products in 49 states under the Tastykake brand name.
Except for historical information contained herein, the matters discussed are forward-looking statements (as such term is defined in the Securities Act of 1933, as amended) and because such statements include risks and uncertainties, actual results may differ materially from those forward-looking statements.
(Tables Follow)
TASTY BAKING COMPANY AND SUBSIDIARIES
CONSOLIDATED HIGHLIGHTS OF OPERATING RESULTS
(Unaudited)
14 and 13 Weeks 53 and 52 Weeks
Ended Ended
12/30/00 12/25/99 12/30/00 12/25/99
Gross sales $65,071,690 $58,669,816 $249,690,639 $226,350,463
Less discounts and
allowances (22,705,931) (19,998,619) (85,407,379) (75,688,826)
Net sales 42,365,759 38,671,197 164,283,260 150,661,637
Cost of sales 26,763,106 24,650,312 105,294,026 95,696,570
Depreciation 2,177,111 1,598,036 7,759,345 7,016,130
Operating
expenses 9,453,859 8,786,781 38,357,295 39,723,495
Restructure
charge(a) – – – 950,000
Interest expense and other
(income), net (46,535) 16,324 119,685 (156,573)
——— ——— ———- ———–
38,347,541 35,051,453 151,530,351 143,229,622
Income before
provision for
income taxes 4,018,218 3,619,744 12,752,909 7,432,015
Provision for
income taxes (1,512,644) (1,354,334) (4,609,369) (2,524,484)
Income before cumulative
effect of a change
in accounting
principle 2,505,574 2,265,410 8,143,540 4,907,531
Cumulative effect of a change
in accounting
principle for
start-up costs – – – (204,709)
Net income $2,505,574 $2,265,410 $8,143,540 $4,702,822
Average number of shares
outstanding:
Basic 7,845,776 7,822,885 7,836,591 7,824,308
Diluted 7,886,296 7,822,885 7,861,069 7,864,825
Per share of common stock:
Income before cumulative
effect of a change
in accounting principle:
Basic $0.32 $0.29 $1.04 $0.63
Diluted $0.32 $0.29 $1.04 $0.62
Cumulative effect of
a change in accounting
principle for start-up
costs: Basic and
Diluted – – – (0.03)
Net income:
Basic and Diluted $0.32 $0.29 $1.04 $0.60
Cash Dividend $0.12 $0.12 $0.48 $0.48
(a) During the first quarter of 1999, the company incurred a
$950,000 restructuring charge related to its decision to discontinue
route territories in those areas that were not achieving appropriate
levels of profitability. The after tax effect of this charge was
$570,000 or $.07 per fully diluted share.
