CORPORATE
FINANCIALS
ONLINE
Fastest direct links to news from publicly-traded companies. |
| Latest Earnings News | Latest Dividend News | All Latest News |
Eskimo Pie: Net Income Results Up Over 200%
NEWS FROM:
ESKIMO PIE CORPORATION
901 Moorefield Park Drive Contact: Thomas M. Mishoe, Jr.
Richmond, Virginia 23236 Telephone: (804)-560-8490
FOR IMMEDIATE RELEASE: April 28, 2000
ESKIMO PIE CORPORATION REPORTS FIRST QUARTER RESULTS
NET INCOME UP OVER 200%!
Richmond, Virginia (NASDAQ NNM: EPIE) - Eskimo Pie Corporation today reported
that net income for the quarter ended March 31, 2000 improved by over 200% as
compared to the same period in 1999. During the first quarter of 2000, net
income was $705,000 or $0.20 per share as compared with $232,000 or $.07 per
share in 1999. Exclusive of special charges in 1999 and 2000, net income in
the first quarter of 2000 would have been $831,000 or $.24 per share, a 93%
improvement over the first quarter results in 1999 of $430,000 or $.12 per
share.
The 2000 results include expenses of approximately $200,000 related to the
Company's continuing pursuit of a possible sale of the Company in whole or in
parts. 1999 results include restructuring charges of $314,000 consisting of
severance costs of $104,000 associated with the discontinuance of certain
non-core and unprofitable manufacturing operations in the Company's Packaging
division and expenses of $210,000 incurred in connection with the Company's
consideration of strategic alternatives.
Sales in the first quarter of 2000 increased by 2% over 1999, to $16.4
million. Sales of Eskimo Pie branded products increased by 5% and Weight
Watcher's and Nabisco sales each increased by over 50%. All divisions showed
sales improvement over the previous year, with the exception of the Packaging
Division, whose sales decrease was due to the discontinuance of non-profitable
business during the first quarter of 1999. Gross margin for the quarter
increased by 280 basis points, from 42.4% in 1999 to 45.2% in 2000. This
improvement was due primarily to improved product mix, with increased sales in
the National Brands division as well as savings from the discontinuance of the
non-profitable business in the Packaging division.
David B. Kewer, the Company's President and Chief Executive Officer
stated that "The first quarter results reflect the Company's continued focus
on the growth of the Company's core assets and tight management of inventories
and overhead expenditures. Net income in the first quarter of the year has
not been this positive since the first quarter of 1996. We are continuing to
experience the benefits of the turnaround initiatives that the Company has
implemented over the last couple of years."
In September 1999, the Company announced that its Board of Directors had
authorized management to actively pursue all strategic alternatives to
maximize shareholder value, including a sale of the Company as a whole or one
or more sales of the Company's strategic assets. As of the date of this
release, this process is continuing.
Eskimo Pie Corporation, headquartered in Richmond, Virginia, created the
frozen novelty industry in 1921 with the invention of the Eskimo Pie ice cream
bar. Today, the Company markets a broad range of frozen novelties, ice cream
and sorbet products under the Eskimo Pie, Real Fruit, Welch's, Weight Watchers
Smart Ones, SnackWell's and OREO brand names. These nationally branded
products are generally manufactured by a select group of licensed dairies who
purchase the necessary flavors ingredients and packaging directly from the
Company. Eskimo Pie Foodservice is a leading supplier of premium soft serve
ice cream, frozen yogurt, custard and smoothies to the foodservice industry.
The Company also sells a full line of quality flavors and ingredients for use
in private label dairy products in addition to the brands it licenses.
ESKIMO PIE CORPORATION
Condensed Consolidated Statements of Income (Unaudited)
For the three months ended March 31, 2000 1999
(In thousands, except Per Share Data)
Net sales $ 16,386 $ 16,129
Cost of products sold 8,974 9,283
Gross profit 7,412 6,846
Advertising and sales promotion expenses 4,365 3,881
Selling, general and administrative expenses 1,663 2,143
Expense from analysis of strategic alternatives 200 -
Expense from restructuring activities - 314
Operating income 1,184 508
Interest income 21 19
Interest expense and other - net 86 159
Income before income taxes 1,119 368
Income tax expense 414 136
Net income $ 705 $ 232
Per Share Data
Basic:
Weighted average number of
common shares outstanding 3,479,964 3,462,796
Net income $ 0.20 $ 0.07
Assuming dilution:
Weighted average number of
common shares outstanding 3,479,964 3,469,385
Net income $ 0.20 $ 0.07
Cash dividend $ 0.00 $ 0.05
ESKIMO PIE CORPORATION
Condensed Consolidated Balance Sheets (Unaudited)
As of March 31, December 31, March 31,
(In thousands, except share data) 2000 1999 1999
Assets
Current assets:
Cash and cash equivalents $ 1,142 $ 1,751 $ 48
Receivables 10,093 6,057 8,888
Inventories 3,718 4,032 5,418
Prepaid expenses 748 557 611
Total current assets 15,701 12,397 14,965
Property, plant and
equipment - net 6,374 6,578 7,070
Goodwill and other intangibles 16,390 16,598 17,395
Other assets 734 913 1,636
Total assets $ 39,199 $ 36,486 $ 41,066
Liabilities and Shareholders' Equity
Current liabilities:
Accounts payable $ 3,586 $ 3,208 $ 3,876
Accrued advertising and
promotion 4,359 2,217 2,740
Accrued compensation and
related amounts 239 1,033 293
Other accrued expenses 1,033 1,038 889
Income Taxes 399 -- --
Current portion of long
term debt 857 972 1,317
Total current liabilities 10,473 8,468 9,115
Long term debt 2,714 2,929 6,411
Postretirement benefits and
other liabilities 2,350 2,293 3,201
Shareholders' equity:
Preferred stock, $1.00
par value; 1,000,000
shares authorized,
none issued and
outstanding - - -
Common stock, $1.00 par
value; 10,000,000
shares authorized,
3,479,964 issued and
outstanding at
March 31, 2000,
3,464,050 at
December 31,1999 and
3,462,796 at
March 31, 1999 3,480 3,464 3,463
Additional capital 4,614 4,468 4,443
Retained earnings 15,568 14,864 14,433
Total shareholders'
equity 23,662 22,796 22,339
Total liabilities and
shareholders' equity $ 39,199 $ 36,486 $ 41,066
Ends.