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ESKIMO PIE CORPORATION REPORTS NINE MONTH & THIRD QUARTER RESULTS

 RICHMOND, Va., Oct. 21 /PRNewswire/ -- Eskimo Pie Corporation (NASDAQ-NMS: EPIE) today reported consolidated sales for the first nine months of 1993 increased nearly 3 percent to $55,190,000 from $53,658,000 for the same period in 1992. Operating income increased 7 percent to $7,374,000 for this nine months compared to $6,884,000 for the same period in 1992. In the first quarter of 1993, the company adopted the mandatory accounting standard, FAS 106 (Employer Accounting for Postretirement Benefits other than Pensions), resulting in an after- tax charge of $1,350,000 or 37 cents per share. Before this charge, income for the nine months ended Sept. 30, 1993, increased 4 percent to $4,497,000 compared with $4,311,000 for the same period in 1992. Excluding the effect of the accounting charge, earnings per share for the first nine months of 1993 increased 1 percent to $1.24 on average outstanding shares of 3,614,264 from $1.23 on average outstanding shares of 3,514,042 for the same period in 1992. However, the non-cash accounting charge resulted in net income of $3,147,000 and earnings per share of 87 cents for the first nine months of 1993.
 Net income for the quarter ended Sept. 30, 1993, was $1,434,000 compared to $1,468,000 for the same period in 1992, a 2 percent decrease. Consolidated sales for the quarter were $14,489,000 compared to $16,213,000 for the third quarter of 1992, which is a decrease of 10.6 percent. Earnings per share for the third quarter of 1993 decreased 2 percent to 40 cents on average outstanding shares of 3,616,487 compared to 41 cents on average outstanding shares of 3,609,087 for the same period in 1992.
 David V. Clark, president and CEO, stated: "The frozen novelty category has been flat to slightly declining over the last couple of years. This trend continued in the first nine months and the third quarter with the extensive flooding in the Midwest being a contributing factor. Despite industry trends, our ESKIMO PIE and Welch's businesses have experienced solid growth year-to-date with sales to our licensed manufacturers increasing 11 percent and 12 percent respectively for these brands. We were also able to achieve good distribution levels for the new Tootsie Pop product we introduced in April of this year. The performance of ESKIMO PIE, Welch's, and Tootsie Pop has allowed us to achieve growth in year-to-date sales, operating income and income before the FAS 106 charge, despite the loss of Heath which had represented approximately 10 percent of our sales for the first nine months of 1992. Our net income for the quarter was basically unchanged from the prior year, despite lower revenues, principally as a result of lower general and administrative costs and lower raw material costs."
 Eskimo Pie Corporation, headquartered in Richmond, created the frozen novelty industry in 1921 with the invention of the ESKIMO PIE ice cream bar. The company markets a broad range of frozen novelties throughout the United States under the ESKIMO PIE, SUGAR FREEDOM ESKIMO PIE, Welch's, Tootsie Pops, Ghirardelli, and 7-UP brand names through a national network of licensed manufacturers.
 ESKIMO PIE CORPORATION
 Consolidated Condensed Statements of Income
 (Unaudited)
 (In thousands except per share data)
 Three Months Ended Nine Months Ended
 Sept. 30, Sept. 30,
 1993 1992 1993 1992
 Net sales $14,489 $16,213 $55,190 $53,658
 Cost of sales 7,785 8,830 29,386 29,788
 Gross profit 6,704 7,383 25,804 23,870
 Advertising
 and sales promotion 3,097 3,212 12,229 10,861
 General
 and administrative 1,338 1,816 6,201 6,125
 Operating income 2,269 2,355 7,374 6,884
 Interest income 85 84 208 298
 Interest expense & other (42) (32) (178) (121)
 Income before income
 taxes and cumulative
 effect of accounting
 changes 2,312 2,407 7,404 7,061
 Income taxes 878 939 2,907 2,750
 Income before cumulative
 effect of accounting
 changes 1,434 1,468 4,497 4,311
 Cumulative effect
 of accounting changes
 net of applicable
 income taxes -- -- (1,350) --
 Net income $1,434 $1,468 $3,147 $4,311
 Per common share
 Weighted average number
 of common shares
 outstanding 3,616,487 3,609,087 3,614,264 3,514,042
 Income before
 cumulative effect of
 accounting changes $0.40 $0.41 $1.24 $1.23
 Cumulative effect of
 accounting changes -- -- (0.37) --
 Net income $0.40 $0.41 $0.87 $1.23
 Cash dividends(A) $0.05 -- $0.15 $4.52
 (A) On March 17, 1992, the Company paid a special cash dividend of $4.52 per share to stockholders of record on Feb. 28, 1992.
 ESKIMO PIE CORPORATION
 Consolidated Condensed Balance Sheets
 (Unaudited)
 (In thousands)
 Sept. 30, 1993 Dec. 31, 1992
 ASSETS
 Current assets:
 Cash and cash equivalents $8,739 $4,972
 Receivables 3,842 3,048
 Inventories 3,636 2,492
 Prepaid expenses 851 599
 Total current assets 17,068 11,111
 Property, plant & equipment 9,211 9,650
 Other assets 2,626 2,725
 Total $28,905 $23,486
 LIABILITIES AND STOCKHOLDERS' EQUITY
 Current liabilities:
 Accounts payable $1,573 $1,722
 Accrued advertising and promotion 2,738 1,396
 Accrued compensation and other 1,289 1,666
 Income taxes 1,247 899
 Long-term debt maturing within one year 175 175
 Total current liabilities 7,022 5,858
 Long-term debt 88 219
 Postretirement medical benefits 2,355 --
 Deferred income taxes -- 690
 Stockholders' equity:
 Common stock 3,616 3,609
 Additional capital 6,845 6,727
 Retained earnings 8,914 6,309
 Foreign currency translation 65 74
 Total stockholders' equity 19,440 16,719
 Total $28,905 $23,486
 -0- 10/21/93
 /CONTACT: J.L. Cheatham of Eskimo Pie Corporation, 804-560-8446/
 (EPIE)


CO: Eskimo Pie Corporation ST: Virginia IN: FOD SU: ERN

MH-IH -- DC010 -- 5098 10/21/93 10:54 EDT
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Publication:PR Newswire
Date:Oct 21, 1993
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