Overhill Corporation (Amex: OVH) yesterday announced operating results for the Company’s third quarter ended June 30, 2001.
For its third quarter of fiscal 2001, the Company reported revenues of $53,500,000 as compared to $46,648,000 for the same period last year, an increase of 15%. Net income for the period amounted to $640,000 ($.04 per share) as compared to $1,025,000 ($.06 per share) for the same period last year.
For the nine months ended June 30, 2001, the Company’s revenues were $149,346,000, as compared to $134,578,000 for the same period last fiscal year, an increase of 11%. The revenue increase is due to continued sales improvement by the Company’s Overhill Farms subsidiary. Operating income decreased to $7,136,000 in 2001 from $8,693,000 in 2000, due primarily to first quarter start-up expenses related to the Chicago Brothers acquisition and energy cost increases experienced by Overhill Farms and by the effect on Texas Timberjack of a continued softness in the East Texas timber market.
Net income for the current nine month period decreased to $1,156,000 ($.06 per share) from $2,177,000 ($.12 per share) in 2000. The prior year’s nine month results included an extraordinary expense of $1,290,000 related to an early extinguishment of debt and a gain of $351,000 on the reacquisition of preferred stock.
In discussing the Company’s results, James Rudis, Overhill Chairman and Chief Executive Officer, stated, “We continue to be pleased with the sales increases by Overhill Farms. Overhill’s sales have increased primarily in the foodservice and airline segments, which is particularly encouraging in light of a somewhat weakening economy. With respect to our Forestry Group, we are hopeful that Texas Timberjack, although facing a difficult market, will continue to improve on somewhat modest third quarter operating increases.”
The Company also announced that its Board of Directors will meet next week to review and vote on implementing a management proposal regarding a strategic alternative for the Company.
Overhill is a holding company with nationwide operations in frozen food and forestry industries.
This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward- looking statements are based on current expectations or beliefs, including, but not limited to, statements concerning the Company’s operations and financial performance and condition. For this purpose, statements of historical fact may be deemed to be forward-looking statements. The Company cautions that these statements by their nature involve risks and uncertainties, and actual results may differ materially depending on a variety of important factors, including, among others, the impact of competitive products and pricing; market conditions and weather patterns that may affect the cost of raw material as well as the market for the Company’s products; changes in the Company’s business environment, including actions of competitors and changes in customer preferences; changes in governmental laws and regulations, including income taxes; market demand for new and existing products; and other factors as may be discussed in the Company’s Report on Form 10-K for the year ended September 30, 2000, and other reports filed with the Securities and Exchange Commission.
OVERHILL CORPORATION AND SUBSIDIARIES
CONDENSED SUMMARY OF OPERATIONSFor the Three Months Ended
June 30,
2001 2000Net revenues $53,500,367 $46,647,829
Gross profit 9,804,429 9,137,836
Operating income 2,701,555 2,747,392
Net income 639,518 1,025,373
Net income attributable
to common stockholders $639,518 $1,025,373Weighted average shares
Basic 17,827,464 17,812,464Diluted 17,872,040 17,887,793
Net income per share –
basic and diluted $.04 $.06OVERHILL CORPORATION AND SUBSIDIARIES
CONDENSED SUMMARY OF OPERATIONSFor the Nine Months Ended
June 30,
2001 2000Net revenues $149,346,356 $134,478,013
Gross profit 27,795,380 27,376,549
Operating income 7,136,037 8,692,891
Income before extraordinary item 1,155,685 3,115,951
Extraordinary item–early
extinguishment of debt — (1,290,431)Net income 1,155,685 1,825,520
Gain on reacquired preferred stock — 351,457
Net income attributable to
common stockholders $1,155,685 $2,176,977Weighted average shares
Basic 17,826,090 17,812,464Diluted 17,878,631 18,177,101
Net income per share –
basic and diluted:
Before extraordinary item $.06 $ .19Extraordinary item — (07)
Net income per share $ .06 $ .12
OVERHILL CORPORATION AND SUBSIDIARIES
CONDENSED BALANCE SHEET DATAJune 30, September 30,
2001 2000Current assets $67,672,422 $68,892,161
Property and equipment, net 8,376,811 7,928,906
Other assets 27,563,032 27,811,686
Total assets $103,612,265 $104,632,753
Current liabilities $32,665,171 $30,474,365
Other liabilities 57,611,783 62,239,121
Warrants 3,104,972 2,806,175
Stockholders’ equity 10,230,339 9,113,092
Total liabilities and
stockholders’ equity $103,612,265 $104,632,753
