Opta Food Ingredients, Inc. (Nasdaq:OPTS – news), a leading developer and manufacturer of proprietary food ingredients, today reported that revenue for the second quarter ended June 30, 2000 increased 53 percent to $6.9 million compared with $4.5 million for the second quarter of 1999. Net income for the quarter equaled $239,000, or $.02 per share, compared with a net loss of $52,000, or $.00 per share, for the same period last year. Results for the second quarter of 1999 do not include financial results from the company’s Stabilized Product and Canadian Harvest divisions, acquisitions completed June 30, 1999 and December 31, 1999, respectively.
For the six months ended June 30, 2000, revenue rose 55 percent to $13.3 million from $8.6 million for the first half of 1999. Net income for the first six months of 2000 totaled $326,000, or $.03 per share, compared with a net loss of $324,000, or $.03 per share, for the first six months of 1999, excluding previously announced non-recurring charges recorded in the first quarters of 2000 and 1999 for personnel, consolidation and restructuring costs. Including these charges, the company recorded a net loss of $324,000, or $.03 per share, for the first six months of 2000 compared with a net loss of $674,000, or $.06 per share, for the comparable period in 1999.
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Arthur J. McEvily, president and chief executive officer, said the company was extremely pleased with the performance of its Canadian Harvest division, which exceeded internal forecasts for both sales and operating margins. “Integration of the Canadian Harvest operation is going extremely well, and the additional fiber processing capacity it gives us is opening the door for promising potential new business opportunities,” McEvily said.
Another major accomplishment for the quarter, he said, was the relocation of Stabilized Product operations from High Ridge, Missouri to its Galesburg, Illinois starch production facility. The company anticipates this consolidation to reduce annual operating costs by up to $500,000 as well as enhancing its capabilities for developing proprietary stabilizer blends.
“We made excellent progress during the quarter toward achieving our primary objectives of meeting financial targets, building up sales and marketing with key new hires, integrating recent acquisitions, and identifying external opportunities for growth,” McEvily said. “Continuing to ramp up our sales efforts and seeking potential acquisitions or strategic alliances are top priorities for the current quarter.”
Opta Food Ingredients, Inc. is a leading innovator, manufacturer and marketer of proprietary food ingredients that improve the nutritional content, healthfulness, texture and taste of its customers’ food products. Opta’s food ingredients are used by more than 200 food companies, including 10 of the 15 largest U.S. consumer packaged food companies and three of the world’s largest quick service restaurant chains.
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By GlobalDataNote: This press release contains forward-looking statements based on management’s current expectations. Factors which could cause actual results to differ from such expectations are discussed in the Company’s periodic reports filed with the Securities and Exchange Commission (including Reports on Form 10-K and Form 10-Q) and include the size and timing of significant orders, as well as deferral of orders, over which the Company has no control; the extended product testing and launch cycles of the Company’s potential customers; the variation of the Company’s sales cycles from customer to customer; increased competition posed by food ingredient manufacturers; changes in pricing policies by the Company or its competitors; possible delays in securing production equipment and retrofitting production facilities and processes; the Company’s success in expanding its sales and marketing programs and its ability to gain increased market acceptance for its existing product lines; the Company’s ability to timely develop and successfully introduce new products in its pipeline at acceptable costs; the potential for significant quarterly variations in the mix of sales among the Company’s products; the challenges of integrating the operations of acquired businesses; and general economic conditions.
Opta Food Ingredients, Inc.
Statement of Operations
(in thousands, except per share amounts)
Three months ended Six months ended
June 30, June 30,
2000 1999 2000 1999
Product revenue $ 6,908 $ 4,506 $ 13,272 $ 8,571
Cost and expenses:
Cost of revenue 4,824 2,943 9,161 5,753
Selling, general and
administrative 1,251 1,102 2,929 2,101
Research and
development 737 796 1,489 1,619
Restructuring costs — — 300 350
6,812 4,841 13,879 9,823
Income (loss)
from operations 96 (335) (607) (1,252)
Other income (expense):
Interest income 174 333 350 680
Interest expense (59) (63) (121) (131)
Other income, net 28 13 54 29
Net income (loss) $ 239 ($ 52) ($ 324) ($ 674)
Basic net income
(loss) per share $ 0.02 ($ 0.00) ($ 0.03) ($ 0.06)
Diluted net income
(loss) per share $ 0.02 ($ 0.00) ($ 0.03) ($ 0.06)
Weighted average
shares outstanding – basic 10,780 11,047 10,841 11,076
Weighted average
shares outstanding – diluted 10,812 11,047 10,841 11,076
