Tasty Baking Company (NYSE:TBC), today announced financial results for the second quarter and twenty-six weeks ended June 30, 2001.
For the second quarter, gross sales were $66.5 million compared with $62.9 million last year, an increase of 5.8%. Gross sales, less discounts and allowances, resulted in net sales of $43.0 million compared with $41.7 million reported last year, an increase of 3.1%. Net income for the thirteen weeks was $2.5 million compared with $2.2 million reported last year, an increase of 12.3%. Net income per diluted share was $0.31 compared with $0.28 reported last year, an increase of 10.7%.
For the twenty-six weeks ended June 30, 2001, gross sales were $132.2 million compared with $124.0 million last year, an increase of 6.6%. Gross sales, less discounts and allowances, resulted in net sales of $85.4 million compared with $82.1 million reported last year, an increase of 4.1%. Net income was $4.6 million or $0.57 per diluted share compared with $4.2 million or $0.54 per diluted share reported during the prior period.
Carl S. Watts, Chairman and Chief Executive Officer, commented, “We are extraordinarily pleased with the results of our second quarter as it continued our trend of showing record sales, our seventh in a row. Route sales operations for the quarter were up 3.9%. This is a nice turnaround from the first quarter despite heavy promotional activity from competition in all of our route marketing areas. We look for continued similar results from our route sales throughout the year.”
Mr. Watts continued, “Our effort to grow our business nationally is showing excellent results, with a 13.8% increase for the quarter. We are continuing to seek new sales opportunities, including mass merchandisers, limited assortment retailers, and other new methods of distribution. We continue to build on our relationship with Wal-Mart and we could not be more pleased with our results. We are working hard to establish relationships with other national mass merchandisers and we expect that some of this will occur during the third quarter of this year.”
Mr. Watts added, “We are moving closer to our goal of opening twenty thrift stores during 2001 and we currently have seventeen stores open. These stores are operating in our direct-store-delivery area, and we are pleased with our progress to date.”
Mr. Watts further noted, “I am very pleased with the overall operation of the company. Each of our expense categories as a percent of sales declined throughout the quarter. All three of our producing plants continue to perform according to schedule.”
Mr. Watts concluded, “We remain committed to executing our four major strategies which include growing our sales in our route operations, establishing alternative methods and channels of distribution, introducing new products, and continuing with the operation and opening of new thrift outlets. We are optimistic about the future and we will work hard to deliver superior results for the remainder of the year.”
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. Factors that may cause actual results to differ from the forward-looking statements in this release include, but are not limited to, changes in general economic and business conditions and other factors described in the Company’s filings with the Securities and Exchange Commission.
TASTY BAKING COMPANY AND SUBSIDIARIES
CONSOLIDATED HIGHLIGHTS OF OPERATING RESULTS
(Unaudited)13 Weeks Ended 26 Weeks Ended
———————— ————————-
06/30/2001 06/24/2000 06/30/2001 06/24/2000
———- ———- ———- ———-Gross sales $ 66,520,073 $ 62,899,396 $ 132,175,447 $ 124,047,156
Less
discounts
and
allowances (23,495,955) (21,181,024) (46,757,240) (41,985,438)
———— ———— ————- ————-
Net sales 43,024,118 41,718,372 85,418,207 82,061,718
———— ———— ————- ————-Cost of sales 27,095,930 26,379,584 53,509,774 52,376,596
Depreciation 1,703,058 1,819,469 3,552,088 3,681,836
Operating
expenses 10,258,751 9,984,356 20,990,837 19,307,783
Interest
expense and
other
(income),
net 17,277 72,102 (18,832) 100,793
———— ———— ————- ————-39,075,016 38,255,511 78,033,867 75,467,008
———— ———— ————- ————-Income
before
provision
for income
taxes 3,949,102 3,462,861 7,384,340 6,594,710
Provision
for income
taxes (1,450,570) (1,238,468) (2,766,357) (2,347,801)
———— ———— ————- ————-Net income $ 2,498,532 $ 2,224,393 $ 4,617,983 $ 4,246,909
============ ============ ============= =============Average
number of
shares
outstanding:
Basic 7,998,041 7,831,331 7,950,222 7,827,270
Diluted 8,137,241 7,847,203 8,085,533 7,835,206Per share
of common
stock:Net income :
Basic $0.31 $0.28 $0.58 $0.54
===== ===== ===== =====
Diluted $0.31 $0.28 $0.57 $0.54
===== ===== ===== =====
Cash Dividend $0.12 $0.12 $0.24 $0.24
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