Tasty Baking Company (NYSE:TBC) today announced financial results for the third quarter and thirty-nine weeks ended September 29, 2001.
For the third quarter, gross sales were $62.5 million, compared with $60.6 million last year, an increase of 3.2%. Gross sales, less discounts and allowances, resulted in net sales of $40.3 million, compared with $39.9 million reported last year, an increase of 1.2%. Net income for the third quarter decreased 25% to $1.1 million, compared with $1.4 million reported last year. Net income per diluted share decreased to $0.13 compared with $0.18 per diluted share reported during the prior year’s third quarter. These results were in line with the anticipated results that the Company announced on October 19, 2001.
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For the thirty-nine weeks ended September 29, 2001, gross sales were $194.7 million, compared with $184.6 million last year, an increase of 5.5%. Gross sales, less discounts and allowances, resulted in net sales of $125.8 million, compared with $121.9 million reported for the same period last year, an increase of 3.2%. Net income was $5.7 million, or $0.70 per diluted share, compared with $5.6 million, or $0.72 per diluted share reported during the comparable period in 2000.
Carl S. Watts, Chairman and Chief Executive Officer, commented, “We are disappointed in our results for the third quarter. Although we achieved year-over-year record sales for the eighth consecutive quarter, several factors including extremely warm weather during mid-Summer and the events of September 11th hampered the Company’s net income. In the second half of September, we experienced very slow product turnover in our marketing areas. Both route and national sales were adversely affected following our country’s tragedies, with route sales the most affected by the volume decline and national sales dropping somewhat below anticipated sales volume.”
Mr. Watts added, “Overall, our costs in the third quarter were well within budgeted goals and management continues to work hard in the area of cost control. Toward that end, on October 19, 2001, the Company made the decision to close our Dutch Mill operation in Wyckoff, New Jersey, and move the production of these products to the Oxford and Hunting Park facilities. We will take a one-time charge for the closing in the fourth quarter of 2001.”
Mr. Watts concluded, “As we move into the fourth quarter we are seeing business return to normal levels and we have plans in place for all of our sales groups to achieve their goals for the quarter. We are committed to executing our long-term strategies, which include growing our sales in route operations and national sales, establishing alternative methods and channels of distribution, introducing new products, and continuing with the operation of our thrift store outlets.”
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By GlobalDataTasty 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 two 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 39 Weeks Ended
———————— ————————–
09/29/2001 09/23/2000 09/29/2001 09/23/2000
———– ———– ———— ————
Gross sales $62,531,791 $60,571,793 $194,707,238 $184,618,949
Less discounts
and allowances (22,191,145) (20,716,010) (68,948,385) (62,701,448)
———– ———– ———— ————
Net sales 40,340,646 39,855,783 125,758,853 121,917,501
———– ———– ———— ————
Cost of sales 26,929,080 26,154,324 80,438,854 78,530,920
Depreciation 1,713,048 1,900,398 5,265,136 5,582,234
Operating
expenses 10,042,967 9,595,653 31,033,804 28,903,436
Interest expense
and other
(income), net (51,956) 65,427 (70,788) 166,220
———– ———– ———— ————
38,633,139 37,715,802 116,667,006 113,182,810
———– ———– ———— ————
Income before
provision
for income
taxes 1,707,507 2,139,981 9,091,847 8,734,691
Provision for
income taxes (657,430) (748,924) (3,423,787) (3,096,725)
———– ———– ———– ————
Net income $ 1,050,077 $ 1,391,057 $ 5,668,060 $ 5,637,966
=========== =========== ============ ============
Average number of
shares
outstand-
ing: Basic 8,041,297 7,845,341 7,980,580 7,833,294
Diluted 8,202,964 7,886,859 8,124,676 7,852,424
Per share of
common stock:
Net
income: Basic $0.13 $0.18 $0.71 $0.72
====== ====== ====== =====
Diluted $0.13 $0.18 $0.70 $0.72
====== ====== ====== =====
Cash Dividend $0.12 $0.12 $0.36 $0.36
====== ====== ====== =====
