Saratoga Brands Reports Earnings of 3 Cents vs. Loss of 9 Cents in Third Consecutive Profitable Quarter
BusinessWire, Monday, November 17, 1997 at 10:32
LAKEWOOD, N.J.--(BUSINESS WIRE)--Nov. 17, 1997--Saratoga Brands
Inc. (NASDAQ:STGA) Monday announced that it will report net income
of $381,643, or 3 cents per share, for the third quarter ended Sept.
30, 1997, compared with a loss of $682,362, or 9 cents per share, in
the third quarter a year earlier.
This represents an increase in net income of $1,064,005, or 12 cents
per share, on more shares. Revenues for the third quarter of 1997
were $3,514,903, compared with $4,221,210, which represents a
reduction resulting from the discontinuance of unprofitable lines.
Gross profits were $790,619 in the third quarter of 1997, vs.
$904,973 in the prior year's same period. While gross profits
decreased, the gross-profit percentage increased from 21 percent to
22.5 percent.
Selling, general and administrative expenses were $448,550, compared
with $520,511, a reduction of $71,961, or 14 percent, primarily due to
the operational changes implemented during the year.
After giving effect to the 1-for-3 reverse split set to occur at
close of business on Nov. 24, 1997, earnings per share would become
9 cents for the third quarter of 1997, vs. a loss of 16 cents per
share in the prior year's same period, using pro forma weighted
average shares from the current year. This is a substantial increase
in value for the company's shareholders.
Results for the third 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 third quarter of 1997 validates
our success in turning the company around. We are beginning to reap
the benefits of our operational changes,'' said Scott Halperin,
chairman. ''As sales of our more profitable lines continue to
increase, our gross-profit percentage will continue to improve.''
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 Reports Earnings of 3 Cents vs. Loss of 9 Cents in Third Consecutive Profitable Quarter
BusinessWire, Monday, November 17, 1997 at 10:32
LAKEWOOD, N.J.--(BUSINESS WIRE)--Nov. 17, 1997--Saratoga Brands
Inc. (NASDAQ:STGA) Monday announced that it will report net income
of $381,643, or 3 cents per share, for the third quarter ended Sept.
30, 1997, compared with a loss of $682,362, or 9 cents per share, in
the third quarter a year earlier.
This represents an increase in net income of $1,064,005, or 12 cents
per share, on more shares. Revenues for the third quarter of 1997
were $3,514,903, compared with $4,221,210, which represents a
reduction resulting from the discontinuance of unprofitable lines.
Gross profits were $790,619 in the third quarter of 1997, vs.
$904,973 in the prior year's same period. While gross profits
decreased, the gross-profit percentage increased from 21 percent to
22.5 percent.
Selling, general and administrative expenses were $448,550, compared
with $520,511, a reduction of $71,961, or 14 percent, primarily due to
the operational changes implemented during the year.
After giving effect to the 1-for-3 reverse split set to occur at
close of business on Nov. 24, 1997, earnings per share would become
9 cents for the third quarter of 1997, vs. a loss of 16 cents per
share in the prior year's same period, using pro forma weighted
average shares from the current year. This is a substantial increase
in value for the company's shareholders.
Results for the third 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 third quarter of 1997 validates
our success in turning the company around. We are beginning to reap
the benefits of our operational changes,'' said Scott Halperin,
chairman. ''As sales of our more profitable lines continue to
increase, our gross-profit percentage will continue to improve.''
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. |
