Monterey Pasta
- Sales Increase of 27% Compared to Second Quarter 2000
- Year-to-date net income up 30% or an increase of $.02 per share on a tax-adjusted basis
Monterey Pasta Company (Nasdaq:PSTA) yesterday reported net income for the second quarter ended July 1, 2001 of $833,000, or $.06 per share, on net revenues of $14,012,000, based on 14.2 million diluted shares outstanding. This compares with a net income of $1,312,000 for the quarter ended June 25, 2000, which resulted in earnings of $.09 per share, on net revenues of $11,045,000, based on 13.8 million diluted shares outstanding. The 2001 net income results are stated at full taxation for book reporting purposes, while the 2000 numbers reflect only nominal taxation, due to the deferral of taxes resulting from the Company’s Net Operating Loss carryforwards. Applying a level of taxation to the 2000 net income, consistent with the 2001 rate, results in a proforma 2000 net income of $868,000 or $.06 per share.
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On a year-to-date basis Monterey Pasta’s net income of $2,058,000 on sales of $28,744,000 and diluted shares of 14.2 million, resulted in earnings per share of $.14, compared with 2000 results, which showed net income of $2,406,000 or $.18 per share on sales of $22,201,000 and 13.7 million diluted shares outstanding. Applying a level of taxation to the 2000 net income, consistent with the 2001 rate, results in a proforma year-to-date 2000 net income of $1,587,000 or $.12 per share. After adjusting for consistent taxation, the proforma year-to-date 2001 net income represents a 30% increase over the 2000 results.
Commenting on the results, Lance Hewitt, chief executive officer and president, said, “As we communicated in our press release of July 6, 2001 we expected second quarter results to be affected by increased dairy ingredients and energy costs, as well as some production inefficiencies associated with the rapid national rollout of calzones and borsellini. Indeed this happened. However, while it has been a challenging quarter from an earnings standpoint, we are encouraged by many things. Our sales increased 27% over the second quarter of 2000 during a period that can tend to be a little soft because of seasonality. This sales increase exceeds the stated Company goal of a 20-25% annual increase, and year-to-date sales are 29.5% above the prior year six months’ results. Year-to-date net income on a tax-adjusted basis is 30% above the prior year.”
Steve Brinkman, chief financial officer, commented, “I was especially pleased with our continued EBITDA generation with over $4 million generated the first six months. With no debt and over $4 million in the bank at quarter end, we continue to feel good about your Company’s fundamentals.”
Founded as a regional brand, Monterey Pasta now has national distribution in over 6,200 retail and club stores throughout the United States and selected regions of Canada. Monterey Pasta manufactures USDA inspected, healthy, gourmet refrigerated food products at its integrated corporate headquarters/ manufacturing and distribution facilities in Salinas, (Monterey County) Calif.
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By GlobalDataThis press release contains forward-looking statements that involve a number of uncertainties and risks that could cause actual results to differ materially from those discussed in the forward-looking statements. Risks that could cause actual results to differ materially from those discussed in the forward-looking statements include risks associated with the retention of key personnel and retention of key management, the risks inherent in food production, intense competition in the market in which the Company competes, consumer acceptance of borsellini and calzones and other new products, continued increased energy and dairy ingredients costs, and the Company’s ability to improve production efficiencies of its calzone and borsellini lines. Future projections are based on the assumption that we will continue to sell in existing retail and club stores and will continue to add new stores. For additional information on these and other risks, please read the Company’s Annual Report on Form 10-K as of December 31, 2000, its Quarterly Report on Form 10-Q for First Quarter 2001, and its 2001 Proxy.
MONTEREY PASTA COMPANY
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(000’s except earnings per share numbers)
Second Quarter Ended
July 1, June 25,
2001 2000
Net revenues $ 14,012 $ 11,045
Cost of sales 8,882 6,785
———— ————
Gross profit 5,130 4,260
Selling, general and
administrative expenses 3,803 2,815
———— ————
Operating income 1,327 1,445
Gain on disposition assets — —
Other income (expense), net 3 (7)
Interest expense, net 24 (26)
———— ————
Income from operations before
provision for income taxes 1,354 1,412
Provision for income taxes (521) (100)
———— ————
Net income $ 833 $ 1,312
———— ————
Basic income per share $ 0.06 $ 0.10
Diluted income per share $ 0.06 $ 0.09
Primary shares outstanding 13,366,923 13,255,655
Diluted shares outstanding 14,215,550 13,846,620
Six Months Ended
July 1, June 25,
2001 2000
Net revenues $ 28,744 $ 22,201
Cost of sales 17,896 13,817
———— ————
Gross profit 10,848 8,384
Selling, general and
administrative expenses 7,571 5,747
———— ————
Operating income 3,277 2,637
Gain on disposition assets 18 —
Other income (expense), net 1 (3)
Interest expense, net 50 (53)
———— ————
Income from operations before
provision for income taxes 3,346 2,581
Provision for income taxes (1,288) (175)
———— ————
Net income $ 2,058 $ 2,406
———— ————
Basic income per share $ 0.15 $ 0.18
Diluted income per share $ 0.14 $ 0.18
Primary shares outstanding 13,344,518 13,151,883
Diluted shares outstanding 14,196,216 13,733,096
To view related research reports, please follow the links below:- Pasta Products: The International Market |
