Quarterly Report (SEC form 10-Q) Management's Discussion and Analysis of Financial Condition And Results of Operations; The Second Quarter Results of Cuisine Solutions, Inc. Have Been Filed With The Securities and Exchange Commission
ALEXANDRIA, Va., Feb. 8 /PRNewswire/ -- The following was issued by Cuisine Solutions, Inc. (OTC Bulletin Board: CUIS):
Results of Operations --
Sales were 8.7 million in the second quarter of fiscal 2000, up 26% from 6.9 million a year earlier.
Year to date fiscal 2000 sales were 16.6 million, up 27% from year to date sales of 13.0 million a year earlier.
Fiscal year 2000 second quarter earnings were $59,000 versus $46,000 in the previous year. Fiscal year 2000 year to date earnings were $44,000 versus losses of $108,000 in the previous year.
Fiscal year 2000 second quarter gross margins increased to 27% versus 25% in the previous year. Fiscal 2000 year to date gross margins increased to 26% from 23% in the previous year. Both the quarter and year to date gross margin improvements are the result of product line margin management, increased volume and cost reductions.
France Acquisition:
The results for the second quarter of fiscal 2000 were restated to include the results of the French subsidiary.
The transaction was treated as a pooling of interest and acquisition costs were treated as period expenses.
During the second quarter, expenses totaling $60,000 were included in operating results and reflect the cumulative year to date administrative costs of completing the transaction.
Total assets from the acquisition were 4 million, total liabilities of 2.1 million and net equity of 1.9 million.
Assets values are recorded at cost less accumulated depreciation.
The French subsidiary sales were 2.4 million for the quarter and 4.2 million year to date. The subsidiary was profitable for the quarter and year to date.
The French subsidiary, formerly Nouvelle Carte France now known as Cuisine Solutions France, produces pre-prepared food to the Retail, Food Service and On Board Services industries throughout Europe.
The company operates a plant in the Normandy Region of France.
The Company has a remaining long-term debt obligation of $1,300,000 used to finance the Norwegian manufacturing facility under a capital lease agreement with a maturity date of June 1, 2014. The French subsidiary has $600,000 in long-term debt used to finance a plant expansion at a rate of 5.5% and maturity date of December 2003. The current portion of long-term debt reflects an increase in the use of the line of credit by the Norwegian subsidiary to finance working capital requirements and increased inventory.
Inventory:
The company has increased inventory during the second quarter through a combination of building inventories for key customer accounts and low demand for New Year's celebrations after building inventory for the millennium events. Since the millennium product is premium product and has a shelf life of eighteen months, management does not anticipate any inventory losses and is aggressively selling the product to return the invested cash. |
