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DOSKOCIL REPORTS SECOND QUARTER RESULTS

 DOSKOCIL REPORTS SECOND QUARTER RESULTS
 HUTCHINSON, Kan., July 29 /PRNewswire/ -- Doskocil Companies,


Incorporated (NASDAQ: DOSK) which incurred a four-week-long strike in May announced a net loss of $1.4 million or 23 cents per share for the second quarter of 1992. This compares with a net loss of $5.3 million or $1.04 per share for the same period in 1991.
 The net loss in the second quarter of 1991 included reorganization charges of $3.3 million. Sales declined in the second quarter of 1992 to $184.1 million from $204 million a year ago. The reduction in sales is attributed to both the effect of the labor strike as well as a decrease in raw material and selling prices.
 The 1992 year-to-date net loss of $994,00 or 17 cents per share, on sales of $360.3 million, is considerably improved from one year ago when the 1991 year-to-date net loss was $13.5 million, or $2.64 per share, on sales of $411 million. The net loss for the six-month period ended June 29, 1991, included reorganization charges of $7.1 million.
 John T. Hanes, chairman and chief executive officer, confirmed the accuracy of earlier company estimates that the strike at four of its facilities would adversely impact operating income in the second quarter by $4 million to $5
million. "As a result of the strike the company suffered a loss in the quarter in which is clearly expected to be profitable," said Hanes. He added, "The disruption in production as a result of the strike is not expected to have a material effect on the company's continuing business after the end of the second quarter." Hanes also said, "We are gratified by the quick return to normal sales levels since the conclusion of the strike and wish to thank our customers for their understanding and support."
 Theodore A. Myers, senior vice president and chief financial officer, commented on the anticipated impact on future earnings resulting from the adoption of Statement of Financial Accounting Standards No. 106 (FASB 106) which requires employers to account for retiree medical benefits under the accrual, rather than pay-as-you-go method. Under the pay-as-you-go method the expense associated with such benefits is recorded only when the actual cash payments are made. During 1992, the expense associated with the actual cash payments is expected to total approximately $4.4 million.
 By way of contrast, under the accrual method the expense associated with such benefits that are expected to be paid in future years must be recorded over the period in which the employee renders the service. As a result, over the next few years, Doskocil will accrue substantially more expense associated with these benefits than it will actually have to pay.
 Myers said, "As with many U.S. corporations, Doskocil will adopt FASB 106 by the end of the first quarter of 1993, and its future earnings will be reduced by the additional non-cash charge in excess of the actual cash payments. However, as a result of the modifications made both during our bankruptcy proceedings and as part of our new labor agreement, we reduced the FASB 106 liability to less than one-third of the original amount. This will reduce substantially the additional annual non-cash expense required under FASB 106. We estimate that charge to range from $2 million to $2.3 million on a pretax basis and between $1.2 million to $1.4 million on an after-tax basis. This also assumes that a one-time charge of approximately $40 million to $45 million net of tax impact, will be recorded for the total prior service obligation of such benefits when Doskocil adopts FASB 106," Myers said.
 Doskocil specializes in processing and marketing boneless hams, sausage, bacon and other branded and processed meat product 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)
 Periods ended Three months Six months
 6/27/92 6/29/91 6/27/92 6/29/91
 (Post- (Pre- (Post- (Pre-
 confirmation) confirmation) confirmation) confirmation)
 Net sales $184,076 $203,991 $360,298 $410,960
 Cost of sales 160,333 177,089 310,431 360,030
 Gross profit 23,743 26,902 49,867 50,930
 Operating expenses:
 Selling 13,937 14,859 28,166 29,461
 General and
 administrative 6,717 7,180 13,999 14,126
 Total operating
 expenses 20,654 22,039 42,165 43,587
 Operating income 3,089 4,863 7,702 7,343
 Other income
 (expense):
 Interest and
 financing
 costs (2,893) (5,465) (5,803) (11,172)
 Amortization of
 intangible
 assets (1,547) (1,322) (3,094) (2,643)
 Other, net 6 (58) 245 7
 Income (loss)
 before
 reorganization
 items (1,345) (1,982) (950) (6,465)
 Reorganization
 items -- (3,321) -- (7,060)
 Income (loss)
 before income
 taxes (1,345) (5,303) (950) (13,525)
 Provision for
 income taxes (28) -- (44) --
 Net income (loss)(1,373) (5,303) (994) (13,525)
 Earnings (loss)
 per share, primary
 and fully diluted
 (management believes
 the per-share amounts
 for periods prior to
 Sept. 28, 1991, are
 not meaningful due
 to the company's
 Chapter 11
 reorganization) ($0.23) ($1.04) ($0.17) ($2.64)
 Weighted average
 number of
 common and common
 equivalent
 shares
 outstanding 5,852 5,116 5,858 5,116
 -0- 7/29/92
 /CONTACT: Theodore A. Myers, senior vice president and chief financial officer of Doskocil, 316-663-1005, or J. Desmond Towey or Bernadette McLaughlin of Desmond Towey & Associates, 212-888-7600, for Doskocil/
 (DOSK) CO: Doskocil Companies Incorporated ST: Kansas IN: FOD SU: ERN


CK-TS -- NY029 -- 4556 07/29/92 11:12 EDT
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Date:Jul 29, 1992
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