Sept. 12 -- The Hain Food Group, Inc. ("Hain") (Nasdaq: [NOSH]), reported sales for the fourth quarter ended June 30, 1997 of $19,176,000 and net income of $272,000, or $0.03 per share, compared with sales of $19,739,000 and net income of $503,000, or $0.06 per share, in the year earlier period. The fourth quarter results include the sales of Weight Watchers products for the full quarter and those of Boston Popcorn Company for approximately one month following acquisition, according to Irwin D. Simon, president and chief executive officer.
Sales for the year ended June 30, 1997 amounted to $65,353,000 and net income was $1,069,000, or $0.12 per share, compared with sales of $68, 606,000 and net income of $2,134,000, or $0.24 per share, in the prior year.
The Company previously announced on September 8, 1997 that it had executed a letter of intent to acquire Westbrae Natural, Inc. ("Westbrae") (Nasdaq: WNAT) for $3.625 per share of common stock in cash. The next stage in the acquisition process has been completed with the Company executing a definitive merger agreement with Westbrae on September 11, receiving a formal financing commitment for the acquisition from its lender, and commencing a tender offer for all of Westbrae"s shares.
In discussing 1997 operating results, Simon commented, "1997 was a transition year for The Hain Food Group, one in which the Company reduced its reliance on rice cake products by diversifying into other product lines through acquisitions and new product introduction. Sales of rice cake products fell by approximately $10 million in fiscal 1997, a decline which was consistent with other rice cake manufacturers. The Company expects to more than replace this volume with sales generated by its recent acquisitions, including Weight Watchers dry and refrigerated products in March 1997, Boston Popcorn Company at the end of May 1997, and, more recently, Alba Foods in July 1997."
Simon continued, "Sales for the fourth quarter exceeded sales for the third fiscal quarter of 1997 by $5.50 million, or 41%, partly because of the impact of the Weight Watchers line and, to a lesser extent, by the one month"s sales of Boston Popcorn Company. Fiscal 1997 sales were also affected by the Company"s decision to discontinue "front-end loading" of inventory with its major customers, and earnings were adversely affected by the necessity to "move" excess stocks of rice cake products, a process that was completed at the end of fiscal 1997."
Simon further stated, "I am pleased that during a difficult operating year the Company has nevertheless been able to reduce its outstanding debt, acquire 300,000 shares of treasury stock and make several acquisitions with operating cash flow. I am looking forward to fiscal 1998 as a different year in which the realignment of the Company"s product lines will, hopefully, enable us to perform much better than in fiscal 1997." |
