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Tuesday July 29 1:31 PM EDT
Company Press Release
Saratoga Brands Reports 78 percent Increase in Second Quarter Net
Income Over Prior Year's Same Period
LAKEWOOD, N.J.--(BUSINESS WIRE)--July 29, 1997--Saratoga Brands Inc. (NASDAQ:STGA) Tuesday announced
that it will report net income of $247,755 or 2 cents per share for the second quarter ended June 30, 1997, compared with
$139,397 or 3 cents per share in the second quarter a year earlier.
This represents an increase of almost 78 percent. Revenues for the second quarter of 1997 were $4,035,911 compared with
$3,161,121 an increase of $874,790 or 28 percent. Gross profits were $1,192,586, in the second quarter of 1997 vs.
$1,291,242, in the prior year's same period. Selling, general and administrative expenses were $742,830 compared with
$955,836, a reduction of $213,006 or 22 percent, primarily due to cost reduction measures instituted in the first quarter.
Results for the second quarter of 1997 include the operations of wholly owned subsidiaries Mobile Caterers Inc. and Cucina
Classica Italiana Inc.
The increase in net income for the second quarter of 1997 was primarily due to the downsizing and operational changes
undertaken in early 1997. ``We are beginning to see the rewards from our efforts,'' commented Scott Halperin, chairman.
``Our second quarter net income is up almost $200,000 over the first quarter.''
Saratoga Brands' Cucina Classica Italiana subsidiary imports and produces under license Italian specialty cheeses and other
premium specialty foods, including the world-renowned brands from Egidio Galbani S.p.A. Saratoga Brands' Mobile Caterers
subsidiary is a food processor and distributor. It services mobile caterers and provides social catering services as well as food
distribution to more than 900 convenience stores and retail outlets in the southern New England states.
Except for historical information contained herein, the matters discussed in this news release are forward-looking statements
that involve risk and uncertainties. The forward-looking statements in this release are made pursuant to the safe harbor
provisions of the Private Securities Litigation Reform Act of 1995. Actual results may differ materially due to a variety of
factors, including without limitation the presence of competitors with broader product lines and greater financial resources;
intellectual property rights and litigation, needs of liquidity; and the other risks detailed from time to time in the company's
reports filed with the Securities and Exchange Commission.
SARATOGA BRANDS INC. AND SUBSIDIARIES
Consolidated Unaudited Statement of Operations
For the Quarter For the Six Months
Ended Ended
June 30, June 30,
1997 1996 1997 1996
Net sales $4,035,911 $3,161,121 $6,860,586 $7,285,142
Cost of sales 2,843,325 1,869,879 4,915,695 5,292,727
Gross profit 1,192,586 1,291,242 1,944,891 1,992,415
Selling, general and
administrative
expenses 742,830 955,836 1,247,340 1,322,311
Amortization of excess
of cost over fair
value of assets 57,958 53,958 115,915 107,916
Income from operations
before interest and
income taxes 391,798 281,448 581,636 562,188
Interest (income)
expense - net 143,443 142,051 277,775 274,083
Income taxes 600 - 600 -
Net earnings $247,755 $139,397 $303,261 $288,105
EARNINGS PER COMMON SHARE
Earnings 2 cents 3 cents 3 cents 6 cents
Weighted average shares
used in computation 12,583,949 5,567,010 11,528,438 4,690,070 |
