The UniMark Group, Inc. (OTC Bulletin Board: UNMG) announced yesterday its financial results for the first quarter ended March 31, 2001.
For the three months ended March 31, 2001, net sales decreased 28.5% to $10.3 million from $14.5 million in the 2000 quarter. Net loss for the 2001 quarter amounted to $1.3 million, or $0.09 per share, as compared to net income of $15,000, or $0.00 per share in the 2000 quarter; both periods per share amounts are on a basic and fully diluted basis.
The decrease in net sales is primarily attributable to UniMark’s strategic transaction with Del Monte Foods (“Del Monte”) in the third quarter of 2000 and the current period unfavorable worldwide prices of frozen concentrate orange juice. As a result of the Del Monte transaction, UniMark’s U.S. retail and club sales are now sold at wholesale prices to Del Monte as compared to the prior period when sales were made directly into the retail channels at substantially higher prices with higher associated distribution, selling and administrative costs.
The current period loss was negatively impacted by a foreign currency translation loss of $571,000, a $697,000 increase over the $126,000 gain recorded in the 2000 period. This unfavorable foreign currency translation loss resulted from the increased value of the Mexican peso on the conversion of the Company’s March 31, 2001 Mexican subsidiaries financial statements to U.S. GAAP, and was primarily due to translation losses on U.S. dollar denominated net monetary assets in Mexico.
Emilio Castillo Olea, UniMark’s President and Chief Executive Officer, stated “While our first quarter performance resulted in a loss, we believe that we have recently made significant operational improvements. Further, we have reduced our selling, general, administrative and interest expenses by approximately $2.0 million on a comparative basis, as a result of the sale of our U.S. retail and club business in the Del Monte transaction and tighter control over expenses.”
The UniMark Group, Inc.
First Quarter Ended March 31,
(In thousands, except per share data)
Net sales $ 10,338 $ 14,457
Income (loss) from operations (562) 680
Net income (loss) (1,283) 15
Income (loss) Per Share
Basic and Diluted $ (0.09) $ 0.00
Basic and Diluted weighted average
shares outstanding 13,938 13,938
The UniMark Group, Inc. is a vertically integrated citrus and tropical fruit growing and processing company supplying major branded food companies in the United States and select countries worldwide, with substantially all of its operations in Mexico.
For Further Information, Contact:
Emilio Castillo Olea, President and CEO or,
David E. Ziegler, CFO/Investor Relations
Further information about UniMark may also be obtained from a number of sources via the Internet. Government filings may be accessed through www.freeedgar.com or www.sec.gov and at http://finance.yahoo.com.
NOTE: The foregoing is news relating to The UniMark Group, Inc. (the “Company”) and contains forward-looking statements, which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. When used in this report, the words “anticipate,” “believe,” “estimate,” “expect” and similar expressions as they relate to the Company or its management, including without limitation, The UniMark Group, Inc. (as defined herein) and/or the Company’s other subsidiaries, are intended to identify such forward-looking statements. The Company’s actual results, performance or achievements could differ materially from the results expressed in, or implied by these forward-looking statements. For a discussion of additional factors that may affect actual results, investors should refer to the Company’s filings with the Securities and Exchange Commission (“SEC”), in particular, those factors listed under “Risk Factors” in the Company’s annual report on Form 10-K for the fiscal year ended December 31, 2000 and in its Registration Statement on Form S-1 filed on May 3, 2001, SEC File No. 333-60130. This does not constitute an offer to buy or sell securities by the Company, its subsidiaries or any associated party and is meant purely for informational purposes.
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