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DOSKOCIL REPORTS IMPROVED THIRD QUARTER OPERATING RESULTS

     DOSKOCIL REPORTS IMPROVED THIRD QUARTER OPERATING RESULTS
    HUTCHINSON, Kan., Nov. 19 /PRNewswire/ -- Doskocil Companies Incorporated (NASDAQ: DOSKV) announced significant improvement in third quarter operating income and results of continuing operations compared with the same quarter in 1990.  Operating income totaled $5,474,000 in the third quarter of 1991 versus $4,315,000 in the previous year.  Loss from continuing operations before reorganization items improved to $1,213,000 compared with a loss of $4,505,000 in 1990.  Net income in the third quarter of 1991, reflecting an extraordinary gain from forgiveness of debt, as discussed below, totalled $86,228,000. Comparison with net income results in 1990s third quarter are not relevant because of the absence of a gain from debt forgiveness in 1990.
    In comparison to one year ago, operating income for the first nine months of 1991 increased $5,263,0000, to $12,817,000 from $7,554,000 for the first nine months of 1990.  Loss from continuing operations before reorganization items decreased $12,829,000, to $7,678,000 for the first nine months of 1991 on sales of $611,529,000 from $20,507,000 on sales of $651,234,000 for the first nine months of 1990.  The decline in sales compared to the prior year is primarily a result of a decline in raw material costs, which were passed on to customers in the form of lower prices.
    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 periods have been reclassified to conform to the present period's presentation.
    Included in results of continuing operations are reorganization charges of $20,091,000 and $3,444,000 for the third quarter of 1991 and the third quarter of 1990, respectively.  As discussed below, reorganization charges for the third quarter of 1991 include $16,465,000 in charges to effect the provisions of the company's joint plan of reorganization, which was confirmed by the bankruptcy court on Sept. 26, 1991, and became effective on Oct. 31, 1991, as previously announced.
    Pursuant to the confirmation of the joint plan of reorganization, the company recorded reorganization and "Fresh Start Reporting" adjustments as of Sept. 28, 1991.  After recording such adjustments, the company reported third quarter 1991 net income of $86,228,000, which reflects an extraordinary gain on forgiveness of debt of $107,532,000. These same adjustments resulted in net income of $72,703,000 for the first nine months of 1991.  In 1990, the company posted a net loss of $5,760,000 for the third quarter and a net loss of $19,886,000 for the first nine months; however, because of the reorganization adjustments and forgiveness of debt discussed above, the 1991 periods are not comparable to the 1990 periods.
    Theodore A. Myers, senior vice president and chief financial officer of the company, said, "The company's operating results continue to show improvement as a result of improved efficiencies in operations and growth in our foodservice and deli business."  Myers added, "Now that we have successfully emerged from Chapter 11, we can devote our full attention to running the business and serving our customers.  With the expenses related to Chapter 11 reorganization behind us, we expect the strength of the underlying businesses of the company to be reflected in the company's financial results."
    Doskocil and 18 of its subsidiaries, including Wilson Foods Corporation, filed for protection under Chapter 11 of the United States Bankruptcy Code on March 5, 1990.  On Sept. 26, 1991, the Bankruptcy Court approved the Third Amended Joint Plan of Reorganization, as modified, for Doskocil and 18 of its subsidiaries.  The plan of reorganization became effective Oct. 31, 1991.
    Doskocil specializes in processing and marketing smoked boneless hams, dry sausage and other branded and precooked 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                        9/28/91      9/29/90
    Net sales                                $200,569     $211,957
    Operating income                            5,474        4,315
    Loss from cont. opers. bef.
     reorganization items                      (1,213)      (4,505)
    Reorganization items                      (20,091)      (3,444)
    Loss from cont. operations                (21,304)      (7,949)
    Loss attributable to operations
     previously classified as assets
     held for sale                                 --        2,189
    Loss before extraordinary item            (21,304)      (5,750)
    Extraordinary gain - forgiveness of debt  107,532           --
    Net income (loss)                          86,228       (5,760)
    Earnings (loss) per share
     (management believes the per share
     amounts are irrelevant due to the
     reorganization):
    Loss from continuing operations            $(4.17)      $(1.55)
    Loss attributable to operations
     previously classified as assets held
     for sale                                      --         0.42
    Loss before extraordinary item              (4.17)       (1.13)
    Extraordinary gain - forgiveness of debt    21.02           --
    Net income (loss)                           16.85        (1.13)
    Weighted average no. of common and
     common equivalent shares outstanding:
      Primary                                   5,116        5,116
      Fully diluted                             5,116        5,116
    Nine Months Ended                         9/28/91      9/29/90
    Net sales                                $611,529     $651,234
    Operating income                           12,817        7,554
    Loss from cont. opers. bef.
     reorganization items                      (7,678)     (20,507)
    Reorganization items                      (27,151)      (8,195)
    Loss from cont. operations                (34,829)     (28,702)
    Loss attributable to operations
     previously classified as assets
     held for sale                                 --        8,816
    Loss before extraordinary item            (34,829)     (19,886)
    Extraordinary gain - forgiveness of debt  107,532           --
    Net income (loss)                          72,703      (19,886)
    Earnings (loss) per share
     (management believes the per share
     amounts are irrelevant due to the
     reorganization):
    Loss from continuing operations            $(6.81)      $(5.61)
    Loss attributable to operations
     previously classified as assets held
     for sale                                      --         1.72
    Loss before extraordinary item              (6.81)       (3.89)
    Extraordinary gain - forgiveness of debt    21.02           --
    Net income (loss)                           14.21        (3.89)
    Weighted average no. of common and
     common equivalent shares outstanding:
      Primary                                   5,116        5,115
      Fully diluted                             5,116        5,115
    -0-               11/19/91
    /CONTACT:  Theodore A. Myers, senior vice president and chief financial officer of Doskocil, 316-663-1005, or Bernadette McLaughlin or J. Desmond Towey of Desmond Towey & Associates, 212-888-7600, for Doskocil/
    (DOSKV) CO:  Doskocil Companies Incorporated ST:  Kansas IN:  FOD SU:  ERN PS -- NY007 -- 4791 11/19/91 09:03 EST
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Date:Nov 19, 1991
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