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VIE DE FRANCE CORPORATION REPORTS PROFITABLE FOURTH QUARTER AND PROFITABLE FULL YEAR RESULTS

 MCLEAN, Va., Sept. 13 /PRNewswire/ -- Vie de France Corporation (NASDAQ-NMS: VDEF) announced today its fourth quarter and full year results for fiscal year 1993, which ended June 26, 1993.
 The company's consolidated sales for the quarter increased 5 percent to $8,672,000 from $8,236,000 in the fourth quarter of the previous year. Net income was $86,000 (1 cent per share), vs. a loss of $606,000 (-5 cents per share) for the fourth quarter of 1992. For the full year, the company reported sales of $38,005,000 and a net income of $261,000 (2 cents per share) for fiscal 1993, compared to net sales of $35,486,000 and a net loss of $2,105,000 (-16 cents per share) for fiscal 1992.
 Jean-Louis Vilgrain, chairman and chief executive officer, expressed his satisfaction with the increase in sales, particularly in the Culinary Division. In addition, he highlighted the $2,250,000 improvement in the company's loss from operations of $450,000 for fiscal 1993 compared to $2,706,000 for fiscal 1992. Vilgrain emphasized the significance of full-year profitability, in that the company had posted net losses for the past five years.
 The profitability achieved in the fourth quarter is due, in part, to the Culinary Division's strong fourth quarter sales, which helped to reduce its operating losses. Also, while the Restaurant Division experienced some softness in sales along with much of the retail industry, it was able to post a break-even fourth quarter.
 All of these elements improved consolidated results from operations, which includes other income, by 87 percent to a loss of $86,000 for the current quarter, and by 83 percent to a loss of $450,000 for the full fiscal year. Last year's consolidated results from operations were losses of $636,000 and $2,706,000 for the fourth quarter and full year, respectively.
 Vilgrain noted that the company's invested cash balance remains strong at about $8.9 million. Non-operating income, primarily interest income, amounted to $171,000 and $170,000 for the fourth quarter of the current and previous years, respectively, and decreased by 4 percent to $712,000 for fiscal year 1993 vs. $740,000 for the previous year. The substantially reduced operating losses, together with the interest income, generated the consolidated net income for the quarter and full year.
 The Restaurant Division experienced full-year gains in comparable store revenues. While comparable store sales decreased by one-half of 1 percent over the previous year's fourth quarter, they finished the fiscal year up 2 percent on a full-year basis. Vilgrain commented that the Restaurant Division has been successfully implementing new menu offerings and presentations. Resulting primarily from the closure of four restaurant locations since the prior year, total division sales decreased by 4 percent to $6,259,000 in the fourth quarter, and by 2 percent to $28,628,000 for fiscal 1993 from $6,498,000 and $29,339,000 for fiscal 1992 fourth quarter and full year, respectively. He emphasized the division's full-year profitability, over and above the benefits of various legal and insurance settlements.
 Sales in the Culinary Division reached $2,414,000 for the fourth quarter of fiscal 1993, representing a 39 percent increase over the previous year same quarter. Fiscal 1993 sales increased 53 percent, to $9,377,000 vs. the fiscal 1992 sales of $6,147,000. Vilgrain commented that sous vide sales continue to increase rapidly, by 55 percent over the previous year's comparable quarter, and by 77 percent on a full-year basis. Vilgrain noted that while the division has still not reached break-even sales levels, encouraging reductions in operating losses, resulting from increased sales volume, sustain his confidence in this division and in the sous vide product line.
 The company is moving forward to expand its salmon production capacity and improve its cost-effectiveness. Plans are underway to build a plant adjacent to raw material sources overseas and finance it with a combination of direct investment, grants and debt facilities. This plant will enable the Culinary Division to be more competitive in the salmon market, as well as offer the opportunity to sell sous-vide salmon in other countries.
 Vilgrain concluded his remarks on fiscal 1993 by reiterating his satisfaction with the full-year accomplishments of both divisions of the company. He anticipates, however, that the company's upcoming first quarter results will be a loss due to several factors. First, sales for the first quarter to date have not been as strong as the fourth quarter levels. In addition, the company's most profitable restaurant location has been closed for major renovations for most of the quarter. As a result, while the upcoming first quarter is trending to be below break- even, Vilgrain believes it to be due to the non-recurring factors cited above.
 Vilgrain added that as the first quarter comes to an end, the store under remodel has reopened with an enthusiastic reception from its customers. Also, the Culinary Division is poised, through newly developed customer relationships for strong sales growth during the fall. With improvement expected in the second quarter, Vilgrain reaffirmed his optimism in the future success of Vie de France Corporation.
 VIE DE FRANCE CORPORATION
 Results of Operations
 12 Weeks Ended
 June 26, 1993 June 27, 1992
 Sales
 Restaurant Division $ 6,258,763 $ 6,497,828
 Culinary Division 2,413,733 1,740,613
 Total 8,672,496 8,238,441
 Less intersegment transfers 0 (2,164)
 Net sales $ 8,672,496 $ 8,236,277
 Loss from operations $ ( 85,540) $ (636,129)
 Inc (loss) from continuing
 operations before taxes
 and extraordinary items $ 86,038 $ (466,404)
 Loss before extraordinary
 items 33,014 (466,404)
 Discontinued operations -- (140,000)
 Extraordinary item-utilization
 of net operating loss
 carryforward 53,024 --
 Net income (loss) $ 86,038 $ (606,404)
 Net income (loss) per share,
 before extraordinary items $ 0.00 $ (0.04)
 Discounted operations per share $ 0.00 (0.01)
 Extraordinary item per share 0.01 0.00
 Net income (loss) per share $ 0.01 $ (0.05)
 Average shares outstanding 13,567,793 13,567,793
 52 Weeks Ended
 June 26, 1993 June 27, 1992
 Sales
 Restaurant Division $ 28,627,786 $ 29,339,031
 Culinary Division 9,388,726 6,311,564
 Total 38,016,512 35,650,595
 Less intersegment transfers (11,600) (164,915)
 Net sales $ 38,004,912 $ 35,485,680
 Loss from operations $ (450,563) $ (2,705,734)
 Inc (loss) from continuing
 operations before taxes and
 extraordinary items $ 260,979 $ (1,965,290)
 Income (loss) before
 extraordinary item $ 137,979 $ (1,964,290)
 Discontinued operations -- (140,000)
 Extraordinary item-utilization
 of net operating loss
 carryforward 123,000 --
 Net income (loss) $ 260,979 $ (2,105,290)
 Net income (loss) per share,
 before extraordinary items $ 0.01 $ (0.15)
 Discontinued operations per
 share $ 0.00 (0.01)
 Extraordinary item per share 0.01 0.00
 Net income (loss) per share $ 0.02 $ (0.16)
 Average shares outstanding 13,567,793 13,567,793
 -0- 9/13/93
 /CONTACT: Stanislas Vilgrain of Vie de France, 703-442-9600/
 (VDEF)


CO: Vie de France Corporation ST: Virginia IN: LEI SU: ERN

DC-DT -- DC030 -- 1519 09/13/93 17:57 EDT
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Publication:PR Newswire
Date:Sep 13, 1993
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