Color Spot Nurseries Reports Third Quarter and Nine-Month Results.PLEASANT HILL, Calif.--(BUSINESS WIRE)--May 10, 1999-- Color Spot Nurseries, Inc. today reported results for its third quarter ended March 25, 1999. Net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight for the three months ended March 25, 1999 were $42.4 million, representing a 10.1% increase over net sales of $38.5 million from the same period in 1998. This growth was due primarily to higher sales in Color Spot's Southwestern division. For the nine months ended March 25, 1999, net sales increased $15.3 million, or 14.9%, to $118.1 million. Gross profit for the quarter improved $10.4 million, or 88.3%, to $22.1 million from $11.8 million for the same period in 1998. In addition, gross profit as a percentage of net sales increased to 52.2% for the three months ended March 25, 1999, a significant improvement over the same quarter last year, when the percentage was 30.5%. For the nine months ended March 25, 1999, gross profits increased $14.0 million, or 43.2%, to $46.3 million. The gross profit percentage of net sales also increased during the first three quarters of 1999 to 39.2% from 31.4% in the prior year period. These margin improvements in both the quarter and nine-month periods were attributable to a decrease in inventory shrink and a decrease in sales returns. Operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. for the third quarter was $7.5 million, a significant improvement over the same period last year, when Color Spot lost $2.0 million. For the nine months ended March 25, 1999, the Company recorded operating income of $0.7 million, before special charges of $3.7 million related to the turnaround Turnaround A situation where a company that has had poor performance for an extended period of time experiences a positive reversal. Notes: A speculator may profit from a turnaround if he or she accurately anticipates the improvement of a poorly performing company. effort, compared to an operating loss operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. of $9.6 million in the same period in 1998. Marion Antonini, Chairman of the Executive Committee at Color Spot, said: "As our results indicate, we feel that our efforts are starting to have a positive impact on the Company. We have made critical changes to both management and operations in order to improve production and distribution efficiencies and reduce product returns. Nevertheless, much work remains to be done before we can approach a satisfactory level of performance but we're clearly far better positioned than we were at this time last year to meet the challenges ahead." Color Spot is the largest wholesale nursery 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. , based on revenue and greenhouse square footage. The Company provides a wide assortment assortment /as·sort·ment/ (ah-sort´ment) the random distribution of nonhomologous chromosomes to daughter cells in metaphase of the first meiotic division. as·sort·ment n. of high-quality plants as well as extensive merchandising merchandising Element of marketing concerned especially with the sale of goods and services to customers. One aspect of merchandising is advertising, which aims to capture the interest of the segment of the population most likely to buy the product. services primarily to leading home centers and mass merchants, such as Home Depot The Home Depot (NYSE: HD) is an American retailer of home improvement and construction products and services. Headquartered in Vinings, just outside Atlanta in unincorporated Cobb County, Georgia, Home Depot employs more than 355,000 people and operates 2,164 big-box , Home Base, Wal-Mart and Kmart. The Company distributes product to over 850 retail and commercial customers, representing over 8,000 locations, primarily in the western and southwestern regions of the United States. Certain statements in this release constitute 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. . Such forward-looking statements involve risks which may cause actual results and performance of the Company to be materially different from those expressed or implied by the forward-looking statements. Such factors include the following: general economic and business conditions, weather patterns, quality of management, and success of business and financing strategy. For more information, see the Company's annual and quarterly reports filed with the Securities and Exchange Commission. |
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