Balance Bar Co. Reports Third-Quarter Operating Results.CARPINTERIA, Calif.--(BUSINESS WIRE)--Oct. 20, 1998--Balance Bar Co. (Nasdaq:BBAR BBAR Broad Band Anti-Reflection BBAR Backbone Attaching Router ) reported record operating results for the third quarter and nine months ended Sept. 30, 1998. The company's sales increased 112 percent to $21.5 million in the third quarter of 1998 from $10.1 million in the third quarter of 1997. Several customers ran special sales promotions in the third quarter of 1998, and approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $1.6 million of the increase was due to increased sales to those customers. Unusually low sales to two natural-foods customers, offset by a significant increase in sales to one mass merchandise MERCHANDISE. By this term is understood all those things which merchants sell either wholesale or retail, as dry goods, hardware, groceries, drugs, &c. It is usually applied to personal chattels only, and to those which are not required for food or immediate support, but such as remain customer, negatively impacted sales in the third quarter of 1997. Net income for the third quarter of 1998 was $1.4 million, or 11 cents per 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. share, compared with a loss of $189,000, or 2 cents per diluted share, for the same period in 1997. Diluted-per-share data for the 1998 third quarter is based on 39 percent more weighted shares outstanding primarily due to the company's initial public offering in June June: see month. 1998 and the exclusion in the 1997 period of the dilutive effect Dilutive effect Result of a transaction that decreases earnings per common share (EPS). of stock options due to the loss in the period. For the nine months ended Sept. 30, 1998, sales increased 117 percent to $59.5 million from $27.4 million in the nine months ended Sept. 30, 1997. Approximately $6.1 million of the increase in sales in the nine months ended Sept. 30, 1998, was due to sales to customers that were running special sales promotions. Net income for the nine months ended Sept. 30, 1998, was $3.9 million, or 32 cents per diluted share, compared with $1.1 million, or 11 cents per diluted share, for the same period in 1997. Sales to customers in the natural-foods channel were 41 percent of total third-quarter 1998 sales, compared with 52 percent and 59 percent in the second and first quarters of 1998, respectively. Sales to the company's six largest 1998 customers were 63 percent of total third-quarter 1998 sales, compared with 66 percent and 70 percent in the second and first quarters of 1998, respectively. Sales to customers in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. were 98 percent of total third-quarter 1998 sales, compared with 99 percent in the second and first quarters of 1998. Sales of the Balance Bar product line were 95 percent of total third-quarter 1998 sales, compared with 97 percent and 90 percent in the second and first quarters of 1998, respectively. The company announced the release of three new nutraceutical- enhanced Balance Bars in September September: see month. 1998 under the Balance+ brand. The company expects to ship these new bars beginning in November November: see month. 1998. The company also began shipping a larger version of the popular Honey honey, sweet, viscid fluid produced by honeybees from the nectar of flowers. The nectar is taken from the flower by the worker bee and is carried in the honey sac back to the hive. Peanut peanut, name for a low, annual leguminous plant (Arachis hypogaea) of the family Leguminosae (pulse family) and for its edible seeds. Native to South America and cultivated there for millenia, it is said to have been introduced to Africa by early explorers, Balance Bar flavor, called the Balance Big Bar, in September 1998. Jim Wolfe, Balance Bar chief executive officer and president, stated: "We are pleased with our strong performance this quarter. We continue to expand the distribution of our Balance products in line with our business plan and we are excited about the contribution that the new Balance+ Bars and the Honey Peanut Big Bar will make in the future." Balance Bar develops and markets branded natural-food and beverage products, and its current product lines consist of the Balance Bar and 40-30-30 Balance powdered-drink mix. This news 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. made under the "safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. " provisions of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. A number of risks and uncertainties could cause actual results to differ materially from those in the forward-looking statements. These risks include maintaining acceptance in distribution channels, volatility Volatility 1. A statistical measure of the tendency of a market or security to rise or fall sharply within a period of time. 2. A variable in option pricing formulas that denotes the extent to which the return of the underlying asset will fluctuate between now and the in sales and earnings, anticipating changes in dietary di·e·tar·y adj. Of or relating to diet. dietary 1. pertaining to diet. 2. a course or system of diet. dietary hepatic necrosis see hepatosis dietetica. trends, no adverse publicity, successful development and sale of new products, maintaining sales to significant customers, competition, and other risk factors. For a more detailed description of the risk factors facing the company, refer to the company's June 1, 1998, prospectus A document, notice, circular, advertisement, letter, or communication in written form or by radio or television that offers any security for sale, or confirms the sale of any security. . -0-
Balance Bar Co.
Income Statements
(amounts in 000s, except per share data)
(unaudited)
Three Months Ended Nine Months Ended
Sept. 30, Sept. 30,
1998 1997 1998 1997
Sales $21,498 $10,134 $59,511 $27,365
Cost of sales 11,242 5,180 30,747 13,649
Gross profit 10,256 4,954 28,764 13,716
Expenses:
Advertising 2,565 2,650 6,759 5,126
Selling and marketing 4,306 2,052 11,895 5,088
General and administrative 1,115 596 3,530 1,567
Interest (income) expense (86) (17) 12 (31)
Total expenses 7,900 5,281 22,196 11,750
Income (loss) before
income taxes 2,356 (327) 6,568 1,966
Income taxes 965 (138) 2,691 831
Net income (loss) $ 1,391 $ (189) $ 3,877 $ 1,135
Earnings (loss) per share:
Basic 12 cents (2 cents) 37 cents 12 cents
Diluted 11 cents (2 cents) 32 cents 11 cents
Weighted shares outstanding:
Basic 11,283 9,306 10,397 9,290
Diluted 12,979 9,306 12,298 10,800
Balance Bar Co.
Condensed Balance Sheets
(amounts in 000s)
Sept. 30, Dec. 31,
1998 1997
(unaudited) (audited)
Current assets:
Cash and marketable securities $ 4,954 $ 89
Accounts receivable, net 7,717 3,444
Income taxes receivable -- 374
Inventories 6,536 3,806
Prepaid and other 1,822 1,381
Deferred taxes 554 344
Total current assets 21,583 9,438
Property and equipment, net 1,180 1,011
Other assets 31 347
Total assets $22,794 $10,796
Current liabilities:
Short-term debt $ 3 $ 1,185
Accounts payable 3,280 4,201
Accrued liabilities 1,425 1,078
Total current liabilities 4,708 6,464
Long-term debt, net 8 228
Stockholders' equity 18,078 4,104
Total liabilities and equity $22,794 $10,796
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