United Foods Inc Q3 net rises
BELLS, Tenn., Jan 4 (Reuters) -
UNITED FOODS INC.
COMPARATIVE SUMMARY OF OPERATIONS
(UNAUDITED)
(AMOUNTS IN THOUSANDS EXCEPT PER SHARE AMOUNTS)
For the Three Months For the Nine Months
Ended Nov. 30, Ended Nov. 30,
1998 1997 1998 1997
Revenues $ 55,525$ 51,407 $151,347 $140,949
Cost and Expenses (Note A)
53,429 50,158 147,797 138,847
Operating Income 2,096 1,249 3,550 2,102
Other Income and (Expense):
Interest Expense - Net (1,023) (1,084) (2,855) (2,870)
Miscellaneous Income - Net 1 11 5 52
Total Other Income and
(Expense) (1,022) (1,073) (2,850) (2,818)
Income (Loss) Before Income
Tax Benefit 1,074 176 700 (716)
Income Tax Expense (Benefit)
(Note B) 413 68 269 (275)
Net (Loss) 661 108 431 (441)
Basic and Diluted Earnings (Loss)
Per Share of Common Stock
(Note C): .10 .02 .06 (.05)
NOTES: (A) Substantially all of the Company's inventories
are valued at the lower of cost (first-in, first-out) or market
at each fiscal year-end. However, due to the seasonality of
vegetable processing, the gross profit method, at the estimated
annual rate, is used to determine frozen vegetable cost of
goods sold in interim financial statements.
(B) Taxes on income consist of the current and deferred
taxes required to be recognized for the periods.
(C) Basic and diluted earnings (loss) per share of common
stock have been computed based upon the weighted average number
of shares outstanding during the three and nine months ended
November 30, 1998 and November 30, 1997.
(D) On September 16, 1998, the Company received an offer
from its chairman and chief executive officer, James I.
Tankersley, and his family to acquire the remaining shares of
the company's common stock that are not already owned by
Tankersley, his wife or his children ("the Tankersley Group")
for $3.00 per share. On receiving the proposal, the Board of
Directors of the Company appointed two outside directors to a
special transaction committee. The Board designated the
committee for the purpose of evaluating and making
recommendations with respect to the proposal. The special
transaction committee and the Tankersley Group are currently in
negotiations regarding the proposal.
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