DOSKOCIL REPORTS FOURTH QUARTER RESULTS
DOSKOCIL REPORTS FOURTH QUARTER RESULTS HUTCHINSON, Kan., March 11 /PRNewswire/ -- Doskocil Companies
Incorporated (NASDAQ: DOSK), which successfully emerged from Chapter 11 reorganization effective Oct. 31, 1991, announced fourth quarter net income of $3,943,000 or $.68 per share on sales of $208,691,000 compared to a net loss of $5,404,000 or $(1.05) per share on sales of $226,334,000 for the quarter ended Dec. 29, 1990. The net loss for the fourth quarter of 1990 included reorganization charges of $4,505,000. The company, as a result of emerging from Chapter 11 status and adopting "Fresh Start Reporting" effective Sept. 28, 1991, did not incur reorganization charges for the fourth quarter of 1991.
John T. Hanes, chairman of the board and chief executive officer, said, "We are quite pleased with Doskocil's fourth quarter 1991 results in comparison to the same period for 1990." He attributed the improvement to cost reduction programs, growth in the company's sales in the delicatessen and foodservice channels, and the successful completion of the company's Chapter 11 reorganization proceedings. He noted that the fourth quarter is traditionally the most profitable quarter of the year due to the increase in sales for the holiday season. Hanes added, "All channels of our business performed well and we anticipate a continuation of this favorable trend in profitability for the full year 1992." Hanes, however, cautioned that, "The first quarter of the year is typically the weakest quarter due to seasonality factors, with close to break-even results the standard. We are very encouraged by our improved financial results and the favorable response of our customers, stockholders and employees to the successful conclusion of our reorganization." Theodore A. Myers, senior vice president and chief financial officer, reported that Doskocil's pre-tax profit from continuing operations before reorganization items for the fourth quarter 1991 was $5,018,000 compared to $645,000 in the fourth quarter of 1990. Myers said, "Although the company recorded a book provision for income taxes of $1,075,000 for the fourth quarter 1991, there is no cash liability for federal income taxes for 1991 due to the operating losses incurred in the first three quarters of the current year while the company was still in bankruptcy." Myers also pointed out that the fourth quarter decrease in sales compared with the same quarter in 1990 resulted from a decrease in wholesale and retail prices due to lower raw material prices. Year to date results have not been discussed because comparison of the two years would not be meaningful due to required changes in accounting relating to the company's emergence from Chapter 11 reorganization. The operations of the Wilson Brands Division, which was previously classified as assets held for sale, have been included in the company's consolidated operating results beginning with the first quarter of 1991. The results of operations of the 1990 period have been reclassified to conform to the present period's presentation. Doskocil specializes in processing and marketing boneless hams, sausage, bacon, and other branded and processed meat products for the foodservice, delicatessen and retail markets. The company also supplies pepperoni, beef and pork toppings to the pizza industry. DOSKOCIL COMPANIES INCORPORATED AND SUBSIDIARIES (In thousands, except per share figures) Three months ended 12/28/91 12/29/90 (Post- (Pre- confirmation) confirmation) Net sales $208,691 $226,334 Operating income 10,289 8,148 Income (loss) from continuing operations before reorganization items and income taxes 5,018 645 Reorganization items -- (4,505) Provision for income taxes (1,075) -- Income (loss) from continuing operations 3,943 (3,860) Income attributable to operations previously classified as assets held for sale -- (1,544) Net income (loss) 3,943 (5,404) Earnings (loss) per share: (management believes the per share amounts for periods prior to Sept. 28, 1991 are not meaningful due to the reorganization): Income (loss) from cont. opers. 0.68 (0.75) Income attributable to operations previously classified as assets held for sale -- (0.30) Net income (loss) 0.68 (1.05) Weighted avg. no. of com. and com. equivalent shares outstanding 5,790 5,116 NOTE: Twelve month results have not been presented because management believes that such amounts are not meaningful due to the reorganization. -0- 3/11/92 /CONTACT: Theodore A. Myers, senior vice president and chief financial officer of Doskocil Companies, 316-663-1005, or J. Desmond Towey or Bernadette McLaughlin of Cameron Towey & Associates, 212-888-7600, for Doskocil/ (DOSK) CO: Doskocil Companies Incorporated ST: Kansas IN: FOD SU: ERN AH-OS -- NY044 -- 7414 03/11/92 15:31 EST
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|Date:||Mar 11, 1992|
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