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CANDY'S TORTILLA FACTORY EXPECTS TO REPORT LOSS FOR THE FOURTH QUARTER AND FISCAL YEAR END

 CANDY'S TORTILLA FACTORY EXPECTS TO REPORT LOSS FOR THE
 FOURTH QUARTER AND FISCAL YEAR END
 PUEBLO, Colo., Oct. 21 /PRNewswire/ -- Candy's Tortilla Factory Inc. (NASDAQ: CNDY) today announced that it expects to report a loss for the fiscal year-ended Oct. 10, 1992.
 "Although we responded quickly to the loss of Taco Bell, losing 27 percent of our volume is difficult," said Anthony J. Estrada, Candy's president and chief executive officer. "We have massively reduced our purchases from outside co-packers, streamlined our operational management, reduced our cost of goods sold primarily through a reduction in the workforce which was specifically serving the Taco Bell account and our aggressive fourth quarter promotional campaign has ended. We believe these actions will help us cope with the loss of business, and we are pleased with the initial results."
 The company estimated that fiscal fourth quarter of 1992 net earnings will be a loss in the range of 30-40 cents per share and net earnings for the fiscal year ended Oct. 10, 1992, will be a loss in the range of 20-30 cents per share.
 "In attempting to comply with Taco Bell specifications, the company made significant one-time expenditures and capital improvements. These expenditures resulted in approximately 20 cents - 25 cents per share loss for the fourth quarter," said Estrada.
 Fourth quarter 1992 revenues are estimated to be $12.5 million as compared to fourth fiscal quarter of 1991 of $11.8 million. Annual revenues are estimated at $38-$39 million for the fiscal year ended Oct. 10, 1992, as compared to $32.1 million for the like period in 1991, an increase of approximately 18 percent to 21 percent.
 "In the past year, Candy's has aggressively expanded its retail and foodservice distribution, where the company has made significant investment in personnel and marketing programs and will focus on this customer base without becoming so dependent on any one customer," said Estrada.
 Based in Pueblo, Candy's Tortilla Factory manufactures, markets and distributes a premium quality line of flour and corn tortillas, taco shells and tortilla chips, packaged and marketed under its own labels and various private labels to the retail, institutional and foodservice markets. Retail customers include Safeway, Kroger and Albertson's. Foodservice customers include Kraft, Lady Baltimore, Sysco and McDonald's.
 -0- 10/21/92
 /CONTACT: Tom Carpenter of Candy's Tortilla Factory, 719-543-4350; or Mark Trinske of Trinske Communications, 303-665-7760/
 (CNDY) CO: Candy's Tortilla Factory Inc. ST: Colorado IN: FOD SU: ERP


BB -- DV010 -- 2722 10/21/92 09:25 EDT
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Publication:PR Newswire
Date:Oct 21, 1992
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