Technology Flavors & Fragrances, Inc. Achieves Second Consecutive Quarter of Increased Earnings
AMITYVILLE, N.Y.--(BUSINESS WIRE)--April 27, 1999--Technology Flavors & Fragrances, Inc. (OTCBB: TFFI, TSE: TFF) announced today its financial results of operations for the first quarter ended March 31, 1999.
Sales increased to $3,642,000 for the first quarter of 1999 as compared to $3,588,000 for the first quarter of 1998. Income from continuing operations for the three month period ended March 31, 1999 was $204,000, or $.02 per share, as compared to a loss from continuing operations of $(187,000), or $(.02) per share, for last year's comparable quarter.
The Company reported net income for the first quarter of 1999 of $204,000, or $.02 per share, as compared to a net loss of $(325,000), or $(.03), per share for last year's comparable quarter.
EBITDA from continuing operations for the three-month period ended March 31, 1999 was $324,000 as compared to $(279,000) for last year's comparable quarter. Included in the Company's gross profit for the three month period ended March 31, 1999 was the recovery of a $94,000 receivable which had been previously written off.
TFF's results of operations for the first quarter of 1999 represents the second consecutive quarter that the Company reported increased sales and profitability.
The implementation of cost containment and operating efficiency improvements during the latter part of 1998 resulted in a total reduction in operating expenses from continuing operations of $278,000 for the first quarter of 1999 as compared to last year's comparable quarter.
Commenting on the first quarter of 1999 results, Philip Rosner, TFF's Chairman and Chief Executive, said, ''One of the principal goals of our management team is to establish a trend of profitable results of operations which we have now begun achieving.
''In addition, TFF continues to develop new and innovative products, some of which it expects to launch later this year. As a result of, among other things, these initiatives, we expect continued growth in our current level of sales in the future and the achievement of positive bottom line results.''
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; Inglewood, Calif.; 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 March 31,
1999 1998 (Note)
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Net sales $ 3,642,388 $ 3,587,732
Cost of sales 2,064,308 2,127,904
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Gross profit 1,578,080 1,459,828
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Operating expenses:
Selling 572,230 668,084
General and administrative 406,818 459,431
Research and development 311,579 391,097
Amortization 40,539 90,306
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Total operating expenses 1,331,166 1,608,918
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Income (loss) from operations 246,914 (149,090)
Interest expense, net (39,304) (36,982)
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Income (loss) before provision
for income taxes 207,610 (186,072)
Provision for income taxes (3,936) (1,200)
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Income (loss) from continuing operations 203,674 (187,272)
Loss from discontinued operations - (137,966)
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Net income (loss) $ 203,674 $ (325,238)
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Net income (loss) per common share:
Continuing operations $ .02 $ (.02)
Discontinued operations - (.01)
----------- -----------
Net income (loss) per share $ .02 $ (.03)
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Weighted average shares outstanding 12,622,878 12,374,623
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Note: The unaudited consolidated statement of operations for the
three month period ended March 31, 1998 has 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, ext. 301
or
For Investor Information Contact:
Investor Communications Co.,
John Blalock, 800/419-5211
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