For the third quarter ended September 30, 2001, Vita Food Products, Inc. (Amex: VSF) yesterday announced net income of $295,000, or $0.08 per share, compared to a net loss of $89,000 or $0.02 per share in the third quarter of 2000, an improvement of $384,000 or $0.10 per share. The increase in quarterly earnings was due primarily to increased sales and margin improvement resulting in a $304,000 profit improvement for Vita. In addition, Vita completed its acquisition of Virginia Honey Company, Inc., which contributed $80,000 of net income for the quarter.
Net sales for the third quarter were $8.5 million, compared with $5.4 million in the third quarter of 2000. Vita’s net sales were approximately $5.8 million with Virginia Honey accounting for approximately $2.6 million. Vita’s increase of $0.4 million was attributed largely to an increase in herring product sales from new customer orders and a lessening of sales deductions.
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Gross margin for the quarter increased to 31.2% from 24.6% in the prior year. Vita’s gross margin was 30.2% and Virginia Honey’s gross margin was 33.2%. The operating expense margin for the quarter dropped slightly to 25.4% from 25.5%. The resulting operating profit improvement was $535,000, of the increase Vita contributed $332,000 and Virginia Honey contributed $203,000.
“We are very pleased with the completion of the Virginia Honey Company, Inc. purchase. As a result of the acquisition, both companies plan to introduce a number of new products, beginning in the fourth quarter. We are looking forward to a strong fourth quarter and an exciting 2002 in both sales and profits” said Stephen Rubin, President of the Company.
Nine-Months Results
For the nine months ended September 30, 2001, the Company had net income of $266,000, or $0.07 per share, compared to a net loss of $156,000, or $0.04 per share for the nine months ended September 30, 2000, an improvement of $422,000 or $0.11 per share. Vita’s share of net income amounted to $186,000 or $0.05 per share, while Virginia Honey added $80,000 or $0.02 per share.
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By GlobalDataVita 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, cocktail sauce 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.
Virginia Honey, the Company’s wholly owned subsidiary, is a manufacturer and distributor of honey, salad dressings, including its’ award-winning Vidalia® Onion Vinegarette salad dressing, sauces, jams & jellies, and gift baskets. Virginia Honey operates two manufacturing facilities in Inwood, West Virginia and Berryville, Virginia.
This release contains forward-looking statements about the Company’s future growth, profitability, introduction of new products, 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.
Statements of Operations Vita Food Products, Inc.
And Subsidiary
For three months ended For nine months ended
September 30, September 30,
2001 2000 2001 2000
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
Net Sales $8,476,615 $5,433,755 $19,723,013 $16,409,374
Cost of Goods Sold 5,835,539 4,095,004 14,043,077 12,111,582
Gross Margin 2,641,076 1,338,751 5,679,936 4,297,792
Selling and
Administrative Expenses
Selling, Marketing &
Distribution 1,409,714 948,266 3,303,714 2,905,047
Administrative 744,534 438,302 1,781,132 1,390,929
Total 2,154,248 1,386,568 5,084,846 4,295,976
Operating Profit (Loss) 486,828 (47,817) 595,090 1,816
Interest (Income) (657) (657)
Interest Expense 184,803 93,896 373,844 284,028
Income (Loss) before
Income Tax Expense
(Benefit) 302,682 (141,713) 221,903 (282,212)
Income Tax Expense
(Benefit) 7,855 (52,434) (43,721) (126,418)
Net Income (Loss) $294,827 ($89,279) $265,624 ($155,794)
Basic Earnings (Loss)
Per Share $0.08 ($0.02) $0.07 ($0.04)
Weighted Average Common
Shares Outstanding 3,726,225 3,719,330 3,725,112 3,714,774
Diluted Earnings (Loss)
Per Share $0.08 ($0.02) $0.07 ($0.04)
Weighted Average Common
Shares Outstanding 3,761,401 3,719,330 3,745,616 3,714,774
