Cuisine Solutions Sales up 50% for Q2 Fiscal Year 2006; Premium, fully-cooked, frozen food manufacturer's net earnings increase 47.9%.ALEXANDRIA Alexandria, city, Egypt Alexandria, Arabic Al Iskandariyah, city (1996 pop. 3,328,196), N Egypt, on the Mediterranean Sea. It is at the western extremity of the Nile River delta, situated on a narrow isthmus between the sea and Lake Mareotis (Maryut). , Va. -- Cuisine Cuisine (from French cuisine, "cooking; culinary art; kitchen"; ultimately from Latin coquere, "to cook") is a specific set of cooking traditions and practices, often associated with a specific culture. Solutions, Inc. (AMEX AMEX See: American Stock Exchange :FZN) (the "Company") today announced its results for the second quarter of fiscal year 2006. Revenue in the second quarter of fiscal 2006 increased $5,533,000 from $11,062,000 to $16,595,000, a 50.0% increase compared to the same quarter of the previous fiscal year due primarily to stronger sales in all sales channels except On Board Service in the US. In the US, Military sales rose by 253.9%, due to increased demand from the US Army. Retail sales grew 96.0% as a result of increased sales to existing customers in both deli and company branded packaged goods Noun 1. packaged goods - groceries that are packaged for sale foodstuff, grocery - (usually plural) consumer goods sold by a grocer plural, plural form - the form of a word that is used to denote more than one . National Restaurant Chain sales had a total increase of 119.5% due to increased effort on promoting NRC NRC abbr. 1. National Research Council 2. Nuclear Regulatory Commission Noun 1. NRC - an independent federal agency created in 1974 to license and regulate nuclear power plants business. In France, all three channels, On Board Services, Food Services food services Hospital services A 24/7 department in a hospital that provides for the nutritional needs of inpatients–eg, those needing special diets, preparing meals and transporting them to the floor and, through the cafeteria, the hospital staff and and Retail, had growth of 22.6%, 39.2% and 28.7%, respectively. "We are very excited about the growth in Retail sales in the US with our Cuisine Solutions branded products," commented Stanislas Stanislas (dimunitive: Stan) is French version of Stanislav. It may refer to:
Coupons are usually attached to a document, such as a promissory note, bond, share of stock, or a bearer program with a major retailer during the second quarter which exceeded all of our forecasts and provided an opportunity for many consumers to try our food for the first time. I believe this helped put us one step closer to being the leader in the emerging category of premium, fully cooked, frozen food." The Company reported net earnings from continuing operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the for the second quarter of fiscal year 2006 of $787,000 compared to $532,000 for the same quarter of fiscal year 2005. The 47.9% increase in net earnings from continuing operations was primarily due to a 50.0% increase in sales and a 41.8% increase in gross margin, as a result of the higher sales and the corresponding production and procurement The fancy word for "purchasing." The procurement department within an organization manages all the major purchases. efficiencies achieved. Net earnings per share from continuing operations were $.05 for second quarter FY 06 compared to $.03 the same quarter last year. Information as to the Company's sales by geographical ge·o·graph·ic also ge·o·graph·i·cal adj. 1. Of or relating to geography. 2. Concerning the topography of a specific region. ge locations for second quarter fiscal year 2006 compared to second quarter fiscal 2005 is as follows:
Q2 Fiscal Q2 Fiscal
2006 2005 $ Change % Change
------------- ------------ ----------- --------
USA $11,567,000 $7,278,000 $4,289,000 58.9%
France 5,028,000 3,784,000 1,244,000 32.9%
------------- ------------ ----------- --------
Total Net Sales $16,595,000 $11,062,000 $5,533,000 50.0%
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Second quarter 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 by sales channel for fiscal year 2006 and 2005 are as follows:
Q2 Fiscal Q2 Fiscal
2006 2005 $ Change % Change
------------- ------------ ----------- --------
Food Service $4,890,000 $3,545,000 $1,345,000 37.9%
On Board Services 2,545,000 3,012,000 (467,000) (15.5%)
Retail 5,663,000 3,360,000 2,303,000 68.5%
Military 2,647,000 748,000 1,899,000 253.9%
National Restaurant
Chain / New Business 850,000 397,000 453,000 114.1%
------------- ------------ ----------- --------
Total $16,595,000 $11,062,000 $5,533,000 50.0%
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Cuisine Solutions US fiscal years 2006 and 2005 second quarter sales by sales channel are as follows:
Q2 Fiscal Q2 Fiscal
2006 2005 $ Change % Change
------------- ----------- ----------- --------
Food Service $2,296,000 $1,682,000 $614,000 36.5%
On Board Services 1,893,000 2,480,000 (587,000) (23.7%)
Retail 3,897,000 1,988,000 1,909,000 96.0%
Military 2,647,000 748,000 1,899,000 253.9%
National Restaurant
Chain 834,000 380,000 454,000 119.5%
------------- ----------- ----------- --------
Total $11,567,000 $7,278,000 $4,289,000 58.9%
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Cuisine Solutions France fiscal year 2006 second quarter sales compared to the prior year second quarter and respective exchange rates are as follows:
Q2 Fiscal Q2 Fiscal
2006 2005 $ Change % Change
-------------- -------------- ------------- --------
Sales in U.S.
Dollars $5,028,000 $3,784,000 $1,244,000 32.9%
Sales in Euros EUR 4,209,000 EUR 2,986,000 EUR 1,223,000 41.0%
Average exchange
rate 0.837 0.789
Cuisine Solutions France fiscal year 2006 second quarter sales by sales channel were as follows:
Q2 Fiscal Q2 Fiscal
2006 2005 $ Change % Change
----------- ----------- ----------- --------
Food Service $2,594,000 $1,863,000 $731,000 39.2%
On Board Services 652,000 532,000 120,000 22.6%
Retail 1,766,000 1,372,000 394,000 28.7%
Others 16,000 17,000 (1,000) (5.9%)
----------- ----------- ----------- --------
Total $5,028,000 $3,784,000 $1,244,000 32.9%
=========== =========== =========== ========
A comparison of net sales, gross margin and net earnings from operations follows:
Twelve weeks ended
-----------------------------
Dec. 10, Dec. 11,
2005 2004 % Change
-------- -------- --------
(Dollars in thousands)
Net Sales $16,595 $11,062 50.0%
Gross margin $4,247 $2,996 41.8%
Gross margin percentage 25.6% 27.1%
Earnings from continuing operations $787 $532 47.9%
Net earnings $787 $593 32.7%
Revenue for the first two quarters of fiscal 2006 increased $11,582,000 from $19,765,000 to $31,347,000, a 58.6% increase compared to the same period of the previous fiscal year due primarily to stronger sales in all sales channels except On Board Service in the US. In the US, the Military sales rose by 321.4%, due to increased demand from the US Army. Retail sales grew 85.3% as a result of increased sales to existing customers in both deli and company branded packaged goods. National Restaurant Chain had a total increase of 64.1% due to increased effort on promoting NRC business. In France, all three channels, On Board Services, Food Services and Retail, had growth of 58.7%, 57.3% and 13.1%, respectively. The Company reported net earnings from continuing operations for the first two quarters of fiscal year 2006 of $2,309,000 compared to $812,000 for the same period of fiscal year 2005. The 184.4% increase in net earnings from continuing operations was primarily due to a 58.6% increase in sales and a 66.3% increase in gross margin, as a result of the higher sales and the corresponding production and procurement efficiencies achieved. Net earnings per share from continuing operations were $.14 for the first two quarters of FY 06 compared to $.05 for the same two quarters last year. Information as to the Company's sales by geographical locations for the first two quarters of fiscal year 2006 compared to the first two quarters of fiscal 2005 are as follows:
YTD Fiscal YTD Fiscal
2006 2005 $ Change % Change
------------ ------------ ------------ --------
USA $22,159,000 $13,258,000 $8,901,000 67.1%
France 9,188,000 6,507,000 2,681,000 41.2%
------------ ------------ ------------ --------
Total Net Sales $31,347,000 $19,765,000 $11,582,000 58.6%
============ ============ ============ ========
First two quarters net sales by sales channel for fiscal year 2006 and 2005 are as follows:
YTD Fiscal YTD Fiscal
2006 2005 $ Change % Change
------------ ------------ ------------ --------
Food Service $8,314,000 $5,752,000 $2,562,000 44.5%
On Board Services 5,866,000 6,230,000 (364,000) (5.8%)
Retail 7,437,000 4,943,000 2,494,000 50.5%
Military 8,365,000 1,985,000 6,380,000 321.4%
National Restaurant
Chain / New Business 1,365,000 855,000 510,000 59.6%
------------ ------------ ------------ --------
Total $31,347,000 $19,765,000 $11,582,000 58.6%
============ ============ ============ ========
Cuisine Solutions US fiscal years 2006 and 2005 first two quarters sales by sales channel are as follows:
YTD Fiscal YTD Fiscal
2006 2005 $ Change % Change
------------ ------------ ----------- --------
Food Service $3,507,000 $2,723,000 $784,000 28.8%
On Board Services 4,216,000 5,181,000 (965,000) (18.6%)
Retail 4,735,000 2,555,000 2,180,000 85.3%
Military 8,365,000 1,985,000 6,380,000 321.4%
National Restaurant
Chain 1,336,000 814,000 522,000 64.1%
------------ ------------ ----------- --------
Total $22,159,000 $13,258,000 $8,901,000 67.1%
============ ============ =========== ========
Cuisine Solutions France fiscal year 2006 first two quarters sales compared to the prior year first two quarters and respective exchange rates are as follows:
YTD Fiscal YTD Fiscal
2006 2005 $ Change % Change
-------------- -------------- ------------- --------
Sales in US
Dollars $9,188,000 $6,507,000 $2,681,000 41.2%
Sales in Euros
EUR 7,617,000 EUR 5,216,000 EUR 2,401,000 46.0%
Average exchange
rate 0.829 0.802
Cuisine Solutions France's first two quarters sales in fiscal years 2006 and 2005 by sales channel were as follows:
YTD Fiscal YTD Fiscal
2006 2005 $ Change % Change
------------- ----------- ----------- --------
Food Service $4,807,000 $3,029,000 $1,778,000 58.7%
On Board Services 1,650,000 1,049,000 601,000 57.3%
Retail 2,702,000 2,388,000 314,000 13.1%
Others 29,000 41,000 (12,000) (29.3%)
------------- ----------- ----------- --------
Total $9,188,000 $6,507,000 $2,681,000 41.2%
============= =========== =========== ========
A comparison of net sales, gross margin and net earnings from operations follows:
Twenty four weeks ended
---------------------------
Dec. 10, Dec. 11,
2005 2004 % Change
-------- -------- ---------
(Dollars in thousands)
Net Sales $31,347 $19,765 58,6%
Gross margin $8,360 $5,026 66.3%
Gross margin percentage 26.7% 25.4%
Earnings from continuing operations $2,309 $812 184.4%
Net earnings $2,309 $755 205.8%
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. within the meaning of Section 27A of the Securities Act of 1933, as amended a·mend v. a·mend·ed, a·mend·ing, a·mends v.tr. 1. To change for the better; improve: amended the earlier proposal so as to make it more comprehensive. 2. and Section 21E of the Securities Exchange Act of 1934, as amended. Those statements reflect the intent, belief or current expectations of the company and members of the management team. Investors can identify these forward-looking statements by use of words such as "expects," "believes," "will," "continues," "goals" and other words of similar meaning. One can also identify them by the fact that they do not relate strictly to historical or current facts. The Company cannot guarantee that any forward-looking statement will be realized, although it believes that it has been prudent in its plans and assumptions. Achievement of future results is subject to risks, uncertainties, and the possibility of inaccurate assumptions. Should known or unknown risks or uncertainties materialize ma·te·ri·al·ize v. ma·te·ri·al·ized, ma·te·ri·al·iz·ing, ma·te·ri·al·iz·es v.tr. 1. To cause to become real or actual: By building the house, we materialized a dream. , or should underlying assumptions prove inaccurate, actual results could vary materially from those anticipated, estimated, or projected. The Company does not undertake to update any forward-looking statement that it may make from time to time. |
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