* Fourth quarter sales surged, led by growth in salmon sales. — Fourth Quarter sales surged to $8.7 million, up $590,000 from the prior year led by strong increases in the company’s salmon product line sales. — Operating profit was up to $1.1 million in the quarter representing an increase of $268,000 compared to the prior year. Net earnings for the quarter more than doubled to $878,000 from the prior year. Included in the earnings is $132,000 from an agreement with the Metropolitan Water Reclamation District resulting in a reduction in user charges the company had previously expensed.
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* Full-year results showed substantial improvement for the third year in a row. — 2000 sales increased by 9% to $25.1 million. Operating profits increased by 22% to $1.1 million and the company’s net income was up 133% to $722,000 resulting in net earnings per share of $0.19.
Comparative Fourth Quarter and Full-Year Highlights (Amounts in thousands, except per share data and percentages)
4th Quarter Ended 1 Year Ended 12/31/00 12/31/99 Change 12/31/00 12/31/99 Change Net Sales $8,718 $8,128 7% $ 25,127 $ 22,966 9% Operating Profit $1,103 $835 32% $1,104 $904 22% Net Income(a) $878 $420 110% $722 $310 133% Basic Earnings per Share(a) $0.24 $0.11 118% $0.19 $0.08 138% Diluted Earnings per Share(a) $0.24 $0.11 118% $0.19 $0.08 138%
(a) Includes non-recurring write-offs of $236,000 in the fourth quarter of 1999 for a suspended acquisition.
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By GlobalData“2000 was a great year that saw the Vita brand name spur growth in our salmon product line and continue to dominate in the herring retail and institutional markets. Vita brand name recognition continues to be our strongest source for both expanding our product offering to existing customers and opening doors to new customers. In 2001 we will be focusing on both our continued growth in sales and production process improvements in an effort to increase our profitability,” said Stephen Rubin, President of Vita Food Products, Inc. Vita Foods Reports Fourth Quarter and Full-Year 2000 Results
For the fourth quarter ended December 31, 2000, Vita Food Products, Inc. (Amex: VSF) today announced a net income of $878,000, or $0.24 per share, compared with $420,000 or $0.11 per share in the fourth quarter of 1999. Excluding a non-recurring write-off of $236,000 which resulted from the Company’s decision to suspend efforts to acquire a food company, 1999 fourth quarter earnings would have been $0.18 per share.
Net sales for the fourth quarter rose to $8.7 million, from $8.1 million in the fourth quarter of 1999. The 7% increase was led by strong increases in Vita smoked salmon products.
Gross margin for the quarter increased to 33.3% from 32.8% in the prior year. Operating expenses decreased 1.8% during the quarter and the operating expense margin fell to 20.6% compared with 22.5% in 1999. The lower operating expense margin was due to lower selling and promotional costs resulting from a strategy to right size the Company’s sales structure, and refine unprofitable promotional programs.
“2000 was a great year that saw the Vita brand name spur growth in our salmon product line and continue to dominate in the herring retail and institutional markets. Vita brand name recognition continues to be our strongest source for both expanding our product offering to existing customers and opening doors to new customers. In 2001 we will be focusing on both our continued growth in sales and production process improvements in an effort to increase our profitability,” said Stephen Rubin, President of Vita Food Products, Inc.
Full Year Results
For the year ended December 31, 2000, Vita earned $722,000, or $0.19 per share, compared with $310,000 or $0.08 per share in 1999. Excluding the non- recurring write-off related to the suspended acquisition efforts, net income would have been $546,000 or $0.15 per share in 1999. The $412,000 or $0.11 per share increase in net income was primarily due to a 9% increase in sales and an operating margin improvement of 1.4%. The sales increase in 2000 was a combination of a 6% increase in sales of herring products and a 14% increase in sales of salmon products. Improved manufacturing productivity, and lower selling and promotional costs contributed to the profit improvement.
2001 Outlook: Continued Growth
Management’s knowledge of kosher products and marketing expertise are expected to bring continued growth within our current customer base and open doors to new customers in 2001. The Vita brand name is the cornerstone of our strategy and we intend to continue building upon its success for future growth.
This release contains forward-looking statements about the Company’s future growth, profitability and competitive position. Any such statements are subject to risks and uncertainties, including changes in economic and market conditions, industry competition, raw material prices, the success of new product introductions, management of growth and other risks noted in the Company’s filings with the Securities and Exchange Commission. Readers are cautioned not to place undue reliance on forward-looking statements, which reflect management’s analysis only as of the date hereof.
Vita Food Products, Inc. is the U.S. leader in the herring and retail packaged salmon markets, and is engaged in several other food segments, including cream cheese and horseradish. More than 95% of Vita’s sales are in kosher foods. Vita’s common stock is currently traded on the American Stock Exchange and Chicago Stock Exchange under the ticker symbol VSF.
Statements of Operations
Vita Food Products, Inc.
for the three months ended for the nine months ended
December 31, December 31,
2000 1999 2000 1999
Net Sales $8,718,015 $8,127,912 $25,127,389 $22,965,749
Cost of Goods Sold 5,817,772 5,463,185 17,929,353 $16,165,365
Gross Margin 2,900,243 2,664,727 7,198,036 6,800,384
Selling and
Administrative
Expenses
Selling,
Marketing &
Distribution 1,188,375 1,233,255 4,093,422 $3,953,420
Administrative 609,316 596,572 2,000,244 $1,943,338
Total 1,797,691 1,829,827 6,093,666 5,896,758
Operating Profit
(Loss) 1,102,552 834,900 1,104,370 903,626
Other (Income) Expense
Write-off of non-
recurring costs (a) 235,511 235,511
Interest 117,929 115,107 401,957 357,746
Income (loss)
before Income
Tax Expense
(Benefit) 984,623 484,282 702,413 310,369
Income Tax Expense
(Benefit) 106,418 64,348 (20,000) 0
Net Income $878,205 $419,934 $722,413 $310,369
Basic Earnings (Loss)
Per Share $0.24 $0.11 $0.19 $0.08
Weighted Average
Common Shares
Outstanding 3,722,906 3,707,477 3,716,818 3,706,112
Diluted Earnings
(Loss) Per Share 0.24 0.11 0.19 0.08
Weighted Average
Common Shares
Outstanding 3,731,538 3,741,993 3,728,631 3,714,741
(a) In the fourth quarter of 1999, the Company suspended efforts in
connection with a prospective corporate acquisition and incurred
a non-recurring write-off of $235,511
