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 second quarter and six-month periods ended September 30, 2000.
For the three months ended September 30, 2000, net sales increased 16% to a record level of $12.2 million, versus $10.5 million in the comparable period of the prior year. Net income for the second quarter of fiscal 2001 was $712,230, or $0.07 per diluted share, compared to $784,720, or $0.08 per diluted share in the second quarter of fiscal 2000.
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Galaxy achieved net sales growth of 12% to $23.5 million in the six-month period ended September 30, 2000, versus $20.9 million in the first half of fiscal 2000. Net income for the first half of fiscal 2001 was $1,401,554, or $0.15 per diluted share, compared to $1,400,404, or $0.15 per diluted share in the six months ended September 30, 1999.
Commenting on the results, Chief Financial Officer Keith Ewing, stated, “Fiscal 2001 second quarter results were in line with Company and Wall Street expectations. Strong sales growth in our flagship Veggie line and Soyco line more than offset a planned decline in our lower margin private label business. Profit margins were lower due to increased marketing expenses incurred to expand distribution, enhance brand recognition and secure product placement.”
President, Chairman and Chief Executive Officer Angelo Morini, commented, “We are continuing to implement methods for building Galaxy and its profitability with the goal of enhancing shareholder value. Strategic marketing initiatives are intended to enhance consumer awareness of the Veggie and Soyco brands in the second half of this fiscal year, ramping up demand in conjunction with increased manufacturing capabilities derived from the installation of our new equipment. Additionally, we are streamlining corporate operations in an effort to remain a lean, efficient organization.”
About Galaxy Foods Company
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By GlobalDataGalaxy Foods Company is a leading producer of health-promoting dairy and dairy related alternatives for the retail, foodservice and industrial markets. The Company’s plant-based products are low or no fat (no saturated fat), have no cholesterol and no lactose and contain more vitamins and minerals than conventional dairy products. Galaxy products, available at health food stores and grocers, are part of the nutritional or functional food category, the fastest growing segment of the retail food market. Galaxy brand names include Veggie Milk(TM), Veggie Slices(TM), formagg®, Soyco®, Soymage®, Wholesome Valley(TM) and Lite Bakery®. For more information, please visit the Company’s web site at www.galaxyfoods.com.
This press release contains “forward-looking” statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties, or other factors which may cause actual results, performance or achievements of the company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Readers are cautioned not to place undue reliance on those forward-looking statements which speak only as of the date hereof. The company undertakes no obligation to release publicly any revisions to these forward-looking statements to reflect events or circumstances after the date hereof or to reflect unanticipated events or developments.
Galaxy Foods Company
Summary Balance Sheet
(unaudited)
(in thousands)
September 30, 2000 March 31, 2000
Current assets $ 23,858 $ 18,751
-------- --------
Total assets $ 47,475 $ 36,450
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Current liabilities $ 16,488 $ 11,773
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Long-term debt $ 12,115 $ 7,083
-------- --------
Total liabilities & Stockholder's equity $ 47,475 $ 36,450
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GALAXY FOODS COMPANY
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
Three Months Ended Six Months Ended
September 30, September 30,
(unaudited) (unaudited)
---------------------- ----------------------
2000 1999 2000 1999
---------- ---------- ---------- ----------
Net Sales $ 12,215 $ 10,522 $ 23,471 $ 20,903
Cost of Goods Sold 7,733 6,722 14,941 13,313
---------- ---------- ---------- ----------
Gross Margin 4,482 3,800 8,530 7,590
Operating expenses:
Selling 2,045 1,203 3,957 2,948
Delivery 629 546 1,280 988
General and
administrative 773 947 1,487 1,799
Research and
development 67 54 124 95
---------- ---------- ---------- ----------
Total operating
expenses 3,514 2,749 6,848 5,830
---------- ---------- ---------- ----------
Income from
operations 968 1,051 1,682 1,760
---------- ---------- ---------- ----------
Other income
(expense):
Interest expense (232) (246) (495) (326)
Interest income --- --- --- ---
Other income
(expense) (24) (4) (25) (4)
---------- ---------- ---------- ----------
Total (256) (251) (520) (329)
---------- ---------- ---------- ----------
Net income before
taxes 712 800 1,162 1,430
---------- ---------- ---------- ----------
Income tax benefit
(expense) --- (15) 240 (30)
---------- ---------- ---------- ----------
Net income applicable
to common stock $ 712 $ 785 $ 1,402 $ 1,400
========== ========== ========== ==========
Basic net earnings
per common share $ 0.08 $ 0.09 $ 0.15 $ 0.15
========== ========== ========== ==========
Diluted net earnings
per common share $ 0.07 $ 0.08 $ 0.15 $ 0.15
========== ========== ========== ==========
