TFF.) Technology Flavors & Fragrances, Inc. (TFF) Reported 1999 Net Income Of$657,000 vs. 1998 Net Loss Of $(2,036,000)
Mon Apr 03 23:53:00 EDT 2000
AMITYVILLE, N.Y., Apr 3, 2000 (BUSINESS WIRE) -- Technology Flavors &
Fragrances, Inc. (AMEX:TFF, TSE:TFF) announced today its results of operations
for the year ended December 31, 1999 and the fourth quarter of 1999. Sales for
the year 1999 increased to $14,769,000 from $13,888,000 in the prior year, while
sales for the fourth quarter of 1999 of $3,426,000 were consistent with the
level of sales for the fourth quarter of 1998.
Net income from continuing operations for the year ended December 31, 1999 was
$657,000 as compared to a net loss of $(3,012,000) for the prior year, which
included a one-time non-cash write-down of $1,723,000 of intangible assets and
other charges aggregating $397,000. The Company also reported a net loss for the
fourth quarter of 1999 of $(33,000), or $.00 per share, as compared to net
income of $106,000, or $.01 per share for the fourth quarter of 1998. The 1999
fourth quarter results were negatively impacted by seasonality and delays in new
product launches which began in the first quarter 2000.
EBITDA from continuing operations for the year ended December 31, 1999 was
$1,183,000 as compared to $(760,000) for the prior year, an improvement of
$1,943,000 in EBITDA.
As previously reported, the Company was approved for listing on the American
Stock Exchange and began trading under the symbol "TFF" on March 29, 2000.
Commenting on the 1999 positive results, Philip Rosner, TFF's Chairman and Chief
Executive, said, "The Company achieved or exceeded most of its business plan
goals and objectives for the year and I thank our dedicated employees and
management team for their accomplishments. 1999 can be viewed as a new beginning
for TFF in which we've positioned ourselves for planned growth for the year 2000
and beyond. We believe several new product developments with major customers in
which we have been diligently working on during the past 12 to 18 months will be
launched in year 2000 which we believe will significantly increase our sales."
Technology Flavors & Fragrances (TFF) develops, manufactures and markets flavors
and fragrances that are incorporated by its customers into a wide variety of
consumer and institutional products, including natural and artificial flavored
beverages, confections, foods, pharmaceuticals, aromatherapy essential oils,
perfumes, and health and beauty products. TFF maintains facilities in
Amityville, New York; Inglewood, California; Toronto, Canada; and Santiago,
Chile.
Certain statements made herein, including without limitation, statements
containing the words "believes," "anticipates," "may," "intends," "expects," and
words of similar import constitute "forward-looking" statements within the
meaning of the Private Litigation Reform Act of 1995. Such statements involve
known and unknown risks, uncertainties, and other factors which may cause actual
Company results to differ materially from expectations. Such factors include the
following: 1) technological, manufacturing, quality control or other
circumstances which could delay the sale or shipment of the Company's products;
2) economic, business, and competitive conditions in the industry and
technological innovations which could affect the Company's business; and 3) the
Company's inability to protect its trade secrets or other proprietary rights,
operate without infringing upon the proprietary rights of others and prevent
others from infringing on the proprietary rights of the Company. Certain of
these factors are discussed in more detail in the Company's Annual Report on
Form 10-KSB for the year ended December 31, 1999.
Technology Flavors & Fragrances, Inc.
Consolidated Statements of Operations
(In U.S. Dollars)
Three Months Ended Years Ended
December 31, December 31,
------------------------ ------------------------
1999 1998 1999 1998
------------------------ ------------------------
(unaudited)
Net sales $ 3,426,371 $ 3,416,713 $14,769,130 $13,888,242
Cost of sales 2,036,349 1,966,230 8,450,923 8,288,245
------------ ------------ ------------ ------------
Gross profit 1,390,022 1,450,483 6,318,207 5,599,997
------------ ------------ ------------ ------------
Operating
expenses:
Selling 570,835 560,371 2,315,251 2,713,869
General and
administrative 418,382 347,437 1,670,492 1,917,868
Research and
development 346,906 310,173 1,306,695 1,396,158
Amortization 43,947 27,026 181,006 354,375
Write-down of
intangible
assets and other
charges -- 85,000 -- 2,119,760
------------ ------------ ------------ ------------
Total
operating
expenses 1,380,070 1,330,007 5,473,444 8,502,030
------------ ------------ ------------ ------------
Income (loss)
from operations 9,952 120,476 844,763 (2,902,033)
Interest expense,
net (27,722) (14,029) (160,383) (107,787)
------------ ------------ ------------ ------------
(Loss) income
before provision
for income taxes (17,770) 106,447 684,380 (3,009,820)
Provision for
income taxes (15,449) -- (27,559) (1,730)
------------ ------------ ------------ ------------
(Loss) income from
continuing
operations (33,219) 106,447 656,821 (3,011,550)
Discontinued
operations:
Gain on disposal
of discontinued
operations -- -- -- 1,080,157
Loss from
discontinued
operations -- -- -- (104,881)
------------ ------------ ------------ ------------
-- -- -- 975,276
------------ ------------ ------------ ------------
Net (loss) income $ (33,219) $ 106,447 $ 656,821 $(2,036,274)
============ ============ ============ ============
Net (loss) income
per common share:
Continuing
operations $ .00 $ .01 $ .05 $ (.24)
Discontinued
operations -- -- -- .08
------------ ------------ ------------ ------------
Net (loss) income
per common share $ .00 $ .01 $ .05 $ (.16)
============ ============ ============ ============
Weighted average
common shares
outstanding 12,549,223 12,449,623 12,499,223 12,399,623
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