Technology Flavors & Fragrances, Inc. Achieves Third Consecutive Quarter of Increased Sales, Gross Profit and Net Income
AMITYVILLE, N.Y.--(BUSINESS WIRE)--Aug. 3, 1999--Technology Flavors & Fragrances, Inc. (OTCBB:TFFI, TSE:TFF) (''TFF'') announced today its financial results of operations for the second quarter ended June 30, 1999.
Net sales increased to $3,793,000 for the second quarter of 1999 from $3,602,000 for last year's comparable quarter and increased to $7,435,000 for the six-month period ended June 30, 1999 from $7,190,000 for the six-month period of the prior year.
Gross profit, as a percentage of sales, increased to 45.0% for the second quarter of 1999 from 43.5% for last year's comparable quarter and increased to 44.2% for the six-month period ended June 30, 1999 from 42.1% for the six-month period of the prior year.
The Company reported income from continuing operations of $276,000, or $.02 per share, for the second quarter of 1999 as compared to a loss of $(123,000), or $(.01) per share, for last year's comparable quarter and income of $479,000, or $.04 per share, for the six-month period ended June 30, 1999 as compared to a loss of $(310,000), or $(.02) per share, from continuing operations for last year's comparable period.
TFF's results of operations for the second quarter of 1999 represent the third consecutive quarter of increased sales, gross profit and net income as shown below.
4th QTR 1st QTR 2nd QTR
1998 1999 1999
------- ------- -------
Net sales $3,417,000 $3,642,000 $3,793,000
Gross profit 1,450,000 1,578,000 1,708,000
Gross profit % 42.5% 43.3% 45.0%
Net income 106,000 204,000 276,000
Commenting on the results for the second quarter of 1999, Philip Rosner, TFF's Chairman and Chief Executive, said, ''One of the goals of the Company's 1999 Strategic Business Plan was to achieve a steady growth in sales, operating margins and net income principally through expanded sales and marketing and R&D activities. Additionally, we are embarking on numerous new product developments for new and existing customers some of which we believe will be launched during the latter part of the year and early 2000.''
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, tobaccos, 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 and 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, 1998.
Technology Flavors & Fragrances, Inc.
Consolidated Statements of Operations
(In U.S. Dollars) (Unaudited)
For the Three Months Ended For the Six Months Ended
June 30, June 30,
--------------- ----------------
1999 1998 (Note) 1999 1998 (Note)
---------- ----------- ----------- -----------
Net sales $ 3,792,587 $ 3,602,105 $ 7,434,975 $ 7,189,837
Cost of sales 2,084,144 2,035,647 4,148,452 4,163,551
---------- ---------- ---------- ---------
Gross profit 1,708,443 1,566,458 3,286,523 3,026,286
---------- ---------- ---------- ---------
Operating expenses:
Selling 574,917 663,122 1,147,147 1,331,206
General and
administrative 402,526 464,461 809,344 923,892
Research and
development 364,299 358,655 675,878 749,752
Amortization 40,539 174,403 81,078 264,709
---------- ---------- ---------- ---------
Total operating
expenses 1,382,281 1,660,641 2,713,447 3,269,559
---------- ---------- ---------- ---------
Income (loss)
from operations 326,162 (94,183) 573,076 (243,273)
Interest expense, net (46,259) (26,338) (85,563) (63,320)
---------- ---------- ---------- ---------
Income (loss) before
provision for
income taxes 279,903 (120,521) 487,513 (306,593)
Provision for
income taxes (4,122) (2,260) (8,058) (3,460)
---------- ---------- ---------- ---------
Income (loss) from
continuing
operations 275,781 (122,781) 479,455 (310,053)
Loss from
discontinued
operations - 37,941 - (100,025)
---------- ---------- ---------- ---------
Net income (loss) $ 275,781 $ (84,840) $ 479,455 $ (410,078)
========== ========== ========== =========
Net income (loss)
per common share:
Continuing
operations $ .02 $ (.01) $ .04 $ (.02)
Discontinued
operations - - - (.01)
---------- ---------- ---------- ---------
Net income (loss)
per share $ .02 $ (.01) $ .04 $ (.03)
========== ========== ========== =========
Weighted average
shares
outstanding 12,451,845 12,374,623 12,450,734 12,374,623
========== ========== ========== ==========
Note: The consolidated statements of operations for the three month and six month periods ended June 30, 1998 have been restated for presentation purposes to reflect the Company's discontinued operations relating to the Company's sale of its Seasoning Division on August 25, 1998.
Technology Flavors & Fragrances, Inc., is quoted on the Over-the-Counter Bulletin Board under the symbol of ''TFFI'' and on the Toronto Stock Exchange under the symbol of ''TFF''
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Contact:
Technology Flavors & Fragrances, Inc.
Joseph A. Gemmo, VP/CFO, 516/842-7600 x301
or
Investor Communications Co.
John Blalock, 800/419-5211
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