Printer Friendly

GENESEE CORPORATION ANNOUNCES FIRST QUARTER RESULTS

 ROCHESTER, N.Y., Sept. 10 /PRNewswire/ -- Genesee Corporation (NASDAQ: GENBB) today announced consolidated sales and earnings for its first fiscal quarter ended July 31, 1993.
 Consolidated gross sales for the first quarter were $52,665,000, compared to sales of $50,815,000 for the same period the previous year. Net earnings for the quarter were $1,524,000 or $.95 per share, compared to last year's restated first quarter loss of ($5,258,000) or ($3.28) per share.
 The corporation previously announced the adoption of required changes in accounting treatment for postretirement health care benefits and income taxes. These changes in accounting treatment were retroactive to May 1, 1992. As a result, the corporation was required to restate its financial statements for the first quarter of fiscal 1993 to reflect a cumulative one-time, after tax charge against earnings of $6,847,000. First quarter earnings in fiscal 1993 before this charge were $1,589,000. First quarter earnings for fiscal 1994 and the restated earnings for the first quarter of fiscal 1993 also include an ongoing accrual for postretirement health care benefits required by the new accounting standards.
 The corporation's Genesee Brewing Company subsidiary reported improved sales based on slightly higher barrel volume and a more favorable package mix. Although weather conditions improved during the first quarter in the northeastern United States compared to last year's unusually poor conditions, the overall economy remains sluggish and consumer demand for malt beverages was less than expected during the past spring and summer.
 Lower than expected consumer demand has caused the continuation of intense price competition throughout the industry, which adversely impacted Genesee Brewing Company's earnings. "We are encouraged by the improvement in sales, but Genesee Brewing Company is operating in a difficult environment that affects the entire industry," said John L. Wehle, Jr., president and chief executive officer. Wehle noted that Genesee Brewing Company's sales trends were generally consistent with industry trends in its key markets. Sales of Michael Shea's Irish Amber continue to exceed projections and Genesee Brewing Company will continue to explore new products to capitalize on the increasing consumer demand for new and distinctive malt beverage products. "Michael Shea's Irish Amber has been a tremendous success and demonstrates Genesee's ability to meet consumer demand for quality and innovative products," said Wehle.
 Sales by the corporation's Foods Division improved slightly in the first quarter, largely as a result of increased sales of private label side dishes and dry soup mixes. Consistent with improved sales and efforts identified in earlier reports to improve operating efficiencies, bottom line performance improved and the Foods Division reported a smaller operating loss than for the first quarter of the previous year. To become profitable, the Foods Division is implementing a plan to focus resources primarily on its retail private label business and to place less emphasis on its contract manufacturing and ingredients businesses. The retail private label business accounted for over 50 percent of the Foods Division's sales in fiscal 1993 and represents the fastest growing and most profitable line of business for the Foods Division. By focusing efforts on its retail private label business, the Foods Division can accelerate the development of this business and its successful line of noodles and rice side dishes, dry soup mixes and cocoa and iced tea mixes.
 The corporation's equipment leasing and real estate subsidiary reported improved revenues and earnings for the first quarter. Although the summer months are traditionally slow in the equipment leasing business, Cheyenne Leasing Company had a strong first quarter and is carrying over a secure backlog of pending leases that are expected to close during the balance of the fiscal year. The corporation also announced that the Clinton Square office building (in which the corporation's real estate subsidiary holds a minority interest) was successfully refinanced in July.
 COMPARATIVE STATEMENT OF QUARTERLY EARNINGS
 July 31, 1993 July 31, 1992
 Gross Sales $52,665,000 $50,815,000
 Less: Excise Taxes
 and Allowances $13,328,000 $12,894,000
 Net Sales $39,337,000 $37,921,000
 Earnings Before Income Taxes
 and Cumulative Effect of
 Changes in Accounting
 Principles $ 2,499,000 $ 2,702,000
 Net Earnings Before Cumulative
 Effect of Changes in
 Accounting Principles $ 1,524,000 $ 1,589,000
 Net Earnings/(Loss) $ 1,524,000 ($ 5,258,000)
 Net Earnings/(Loss) Per Share $.95 ($3.28)
 Note: The quarter ended July 31, 1992, is restated for the cumulative effect of changes in accounting for income taxes and postretirement benefits other than pensions as of May 1, 1992. Both interim reports are unaudited and subject to year-end adjustments and, due to the seasonal nature of the business and the varying schedule of special sales efforts, are not necessarily indicative of the results to be expected for the year.
 -0- 9/10/93
 /CONTACT: Mark Leunig of Genesee Corporation, 716-546-1030, ext. 440/
 (GENBB)


CO: Genesee Corporation ST: New York IN: FOD SU: ERN

KL -- CL014 -- 0822 09/10/93 14:55 EDT
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Sep 10, 1993
Words:829
Previous Article:LTV CORPORATION ANNOUNCES COMMON STOCK OFFERINGS
Next Article:LIMA NAMED DIVISION PUBLIC AFFAIRS MANAGER FOR HISPANIC COMMUNITY AND SAN FERNANDO VALLEY
Topics:

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters