Authentic Specialty Foods Reports Earnings for the Fourth Quarter and Year End 1997; Acquisitions Drive Strong Growth.GRAND PRAIRIE Grand Prairie, city (1990 pop. 99,616), Dallas and Tarrant counties, N Tex., halfway between Dallas and Fort Worth; inc. 1909. Located in a highly urbanized and rapidly growing area, the city's boom caused its population to double between 1970 and 1990. , Texas--(BUSINESS WIRE)--Jan. 20, 1998--Authentic Specialty Foods, Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :ASFD ASFD American Society of Furniture Designers ASFD Ashford.com (stock symbol) ASFD Australian Society of Forensic Dentistry ASFD Austin Science Fun Day ASFD Association Suisse des Fonctionnaires aux Douanes ) today reported results for the fourth quarter and year ended December December: see month. 31, 1997. All results are presented pro forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma to reflect the combination of Authentic/Calidad and La Victoria on September September: see month. 2, 1997. Revenue for the fourth quarter of 1997 increased to a record $17.9 million from $15.1 million in the previous year's quarter. As previously disclosed on December 17, 1997, the Company recorded a one-time one-time adj. 1. or one·time a. Occurring or undertaken only once: a one-time winner in 1995. b. charge in the fourth quarter of 1998 relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc its succession plan at La Victoria. Pro forma net income excluding this one-time charge for the fourth quarter of 1997 was $867,000, or $0.11 per share, versus net income of $274,000 or $0.04 per share for the same period in 1996. Due to the one-time charge, the Company recorded a loss of $904,000, or $0.11 per share, for the fourth quarter of 1997. Weighted average shares outstanding (diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. ) in the fourth quarter of 1997 were 7,968,000 versus 7,090,000 for the same period in 1996. The increase in weighted average shares was due to the exercise of the underwriters option for 600,000 shares to cover over-allotments and the outstanding warrants and grants issued subsequent to the public offering. For the twelve months ended December 31, 1997 revenues grew to a record $63.5 million from $59.3 million for fiscal 1996. Excluding the charge referred to above, net income for fiscal year 1997 was $2.1 million, or $0.28 per share, versus net income of $873,000, or $0.12 per share, for 1996. Actual net income recorded for the year was $283,000 or $0.04 per share. Weighted average shares outstanding (diluted) for fiscal year 1997 totaled 7,420,000 versus 7,089,000 for fiscal year 1996. "During our first two quarters as a company, we have made considerable progress toward establishing Authentic as a powerful and efficient branded manufacturing and distribution company," commented Keith Keith may refer to: People with the given name Keith:
"Through several key acquisitions, we have built a substantial presence in the strategically vital south Texas market. We have also established an extensive line of brand-name Mexican Mexican named after or originating in Mexico. Mexican axolotl see ambystomamexicanum. Mexican beaded lizard (Heloderma horridum food products, expanded distribution into new geographic markets, and significantly expanded our activity in the institutional and food service channel." "The consolidation of these operations, which will produce considerable cost efficiencies, will enable us to establish vertically integrated production A farming system that produces high quality food and other products by using natural resources and regulating mechanisms to replace polluting inputs and to secure sustainable farming. , distribution, and marketing capabilities. The rapid growth of the U.S. Hispanic Hispanic Multiculture A person of Mexican, Puerto Rican, Cuban, Central or South American, or other Spanish culture or origin, regardless of race Social medicine Any of 17 major Latino subcultures, concentrated in California, Texas, Chicago, Miam, NY, and elsewhere population represents a powerful demographic trend. Looking ahead, Authentic has set in place a substantial operational base from which to grow and is well positioned to pursue opportunities in this market segment," he concluded. Authentic Specialty Foods is a leading provider of an extensive line of Mexican food products for Mexican-American Mexican American n. A U.S. citizen or resident of Mexican descent. Mex  i·can-A·mer consumers. The
Company sells branded and private label tortillas and tortilla chips, as
well as branded cheeses, meats and other shelf-stable products under the
Calidad and La Monita labels primarily to grocery stores in Texas and
adjacent states. Under the La Victoria brand name, Authentic sells
premium branded salsa and other Mexican sauces throughout the Western
United States Noun 1. western United States - the region of the United States lying to the west of the Mississippi RiverWest Santa Fe Trail - a trail that extends from Missouri to New Mexico; an important route for settlers moving west in the 19th century . The Company completed an initial public offering of approximately 4.6 million shares in August 1997. -0- This press release contains forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. within the meaning of Section 27A of the Securities Act and Section 21E of the Securities Exchange Act. Actual results could differ materially from those projected in the forward-looking statements, which involve a number of risks and uncertainties and should be considered in conjunction with the cautionary statements contained in the Prospectus dated August 27, 1997. -0-
Authentic Specialty Foods Inc.
Consolidated Condensed Statements of Operations
(Unaudited)
(in thousands except per share amounts)
Excluding (Pro-Forma) (1)
One-Time Three Months Ended
Charge (2) December 31,
1997 1997 1996
Net Sales $17,860 $17,860 $15,163
Cost of Sales 10,105 10,105 8,563
Gross Profit 7,755 7,755 6,600
Selling, General &
Administrative 6,024 6,024 5,737
One-Time La Victoria
Charge 0 2,957 0
Income From Operations 1,731 (1,226) 863
Interest, net 206 206 235
(Gain) Loss on Disposal
of Property & Equipment 1 1 0
Income Before Income
Taxes 1,524 (1,433) 628
Income Tax Expense 657 (529) 354
Net Income $867 ($904) $274
Net Income Per Share:
Basic 0.1113 (0.1161) 0.0386
Diluted 0.1088 (0.1135) 0.0386
Weighted-Average and
Adjusted Weighted-
Average Shares:
Basic 7,787 7,787 7,090
Diluted 7,968 7,968 7,090
Excluding (Pro-Forma) (1)
One-Time Twelve Months Ended
Charge (2) December 31,
1997 1997 1996
Net Sales $63,451 $63,451 $59,347
Cost of Sales 34,988 34,988 33,480
Gross Profit 28,463 28,463 25,867
Selling, General &
Administrative 23,985 23,985 23,051
One-Time La Victoria
Charge 0 2,957 0
Income From Operations 4,478 1,521 2,816
Interest, net 754 754 1,002
(Gain) Loss on Disposal
of Property & Equipment 0 0 70
Income Before Income
Taxes 3,724 767 1,744
Income Tax Expense 1,670 484 871
Net Income $2,054 $283 $873
Net Income Per Share:
Basic 0.2790 0.0384 0.1231
Diluted 0.2768 0.0381 0.1231
Weighted-Average and
Adjusted Weighted-
Average Shares:
Basic 7,361 7,361 7,089
Diluted 7,420 7,420 7,089
(1) La Victoria Foods, Inc. was acquired upon consummation CONSUMMATION. The completion of a thing; as the consummation of marriage; (q.v.) the consummation of a contract, and the like. 2. A contract is said to be consummated, when everything to be done in relation to it, has been accomplished. of the public offering on Sept. 2, 1997. Accordingly, only four months of La Victoria's operations are included in the company's actual results for the three months and 12 months ended Dec. 31, 1997. All applicable months in 1996 and eight months of 1997 are therefore presented on a pro-forma basis to give effect to the La Victoria acquisition and other pro-forma adjustments referenced in the company's offering prospectus. (2) On Dec. 17, 1997, the company announced the buy-out buy·out also buy-out n. 1. The purchase of the entire holdings or interests of an owner or investor. 2. The purchase of a company or business: of Robert Robert, Henry Martyn 1837-1923. American army engineer and parliamentary authority. He designed the defenses for Washington, D.C., during the Civil War and later wrote Robert's Rules of Order (1876). Noun 1. Tanklage's employment contract as part of a succession plan at La Victoria. The columns displayed reflect fourth quarter and year to date 1997 earnings excluding the one-time after tax charge of $1.8 million. CONTACT: Authentic Specialty Foods, Inc. Keith R. Lively, 415/544-9966 or Morgen-Walke Associates, Inc. Jim Byers/Carolyn Bass/Doug Sherk, 415/296-7383 Vince Daniels/Deborah Szajngarten, 212/850-5600 |
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