Printer Friendly

F&C INTERNATIONAL, INC., ANNOUNCES ACQUISITION, THIRD QUARTER OPERATING RESULTS AND FOUR-FOR-THREE STOCK SPLIT

 F&C INTERNATIONAL, INC., ANNOUNCES ACQUISITION,
 THIRD QUARTER OPERATING RESULTS AND FOUR-FOR-THREE STOCK SPLIT
 CINCINNATI, May 7 /PRNewswire/ -- F&C International (NASDAQ: FCIN) has acquired substantially all the assets of Research Foods Limited ("RFL") from Agra Industries Limited. RFL, based in Toronto, is a leading supplier of cheese flavors, specialty ingredients and seasonings to the Canadian snack and convenience food industry. RFL's sales for its most recent fiscal year ended July 31, 1991 were $11.4 million (US). F&C International expects RFL to contribute to profits from the date of acquisition.
 RFL's strong product line concentration in the cheese area allows F&C International to enter a new product category with an estimated worldwide market potential of more than $400 million in sales. Jon Fries, Chairman and CEO of F&C International, stated, "The technology and numerous state-of-the-art product formulas acquired provide F&C International with a vehicle to utilize enzyme modified cheese technology, offering substantial growth potential in the 90's."
 RFL has a strong customer base which complements F&C International's well-established relationships. RFL's principal customers are among the largest multi-national suppliers of snack food products in North America.
 RFL's current sales are primarily concentrated in the Canadian market (95 percent), since they virtually have no sales or marketing forces outside Canada. This acquisition creates new sales opportunities for F&C International by leveraging its established domestic and international sales and marketing network to promote and distribute the newly acquired product lines to markets outside Canada.
 RFL operates within an 80,000 square foot leased facility in Toronto, and has capacity to accommodate anticipated future growth of the acquired product lines. Fries added, "RFL's spray drying and dry blending capabilities give F&C International the opportunity to manufacture its seasonings at this facility."
 The $6.3 million purchase price includes $2.4 million of inventory, $.7 million accounts receivable and approximately $3.2 million of equipment and goodwill. Approximately $1.5 million of the purchase price will be financed by F&C International through borrowings under its existing revolving credit facility, $3.1 million will be financed through the seller for a one year period, and the balance of approximately $1.7 million will represent certain assumed trade payables and other liabilities.
 Third Quarter Operating Results
 F&C International today reported record sales for the third quarter ended March 31, 1992. Net sales increased to $14.7 million from $13.0 million during the same period of the prior year. Income before taxes decreased to $1.38 million from $1.43 million in the same quarter in fiscal 1991. Net income decreased to $1.04 million as compared to $1.31 million in the third quarter of fiscal 1991. While income before taxes decreased 3.4 percent from the prior year, net income decreased 20.7 percent as a result of a higher effective tax rate in the current quarter. Earnings per share decreased to $.15 from $.26 in the comparable period in 1991 on 43 percent more shares outstanding.
 For the nine months ended march 31, 1992 net sales increased to $41.8 million from $35.1 million during the same period of the prior year. Income before taxes increased to $2.87 million from $2.47 million in the comparable period in fiscal 1991. Net income decreased to $2.08 million from $2.26 million in the comparable period of fiscal 1991. Although income before taxes increased 16.1 percent over the prior year, net income decreased 8 percent as a result of a higher effective tax rate in the current period. Earnings per share decreased to $.35 from $.44 in the comparable period in fiscal 1991, on 17 percent more shares outstanding.
 The company indicated that although third quarter net sales were at record levels, two significant factors adversely affected third quarter sales. First, the company relocated its chemical manufacturing operations from one its Cincinnati plants to its Brooklyn manufacturing facility, causing a delay in shipments from the third quarter to the fourth quarter. Also, certain flavor sales anticipated during the third quarter are now expected to occur in the fourth quarter.
 The company believes that net sales for the fourth quarter will be exceedingly strong, resulting in approximately $60 million of net sales for the year ending June 30, 1992.
 Operating expenses during the third quarter increased due to the addition of key sales, marketing and product development personnel. Fries stated, "This investment in sales, marketing and product development will allow the company to manage the increase in both flavor and fragrance projects, which are expected to fuel continued internal growth." Fries went on to say, "This philosophy of investing in sales, marketing and product development has been key to the company's success over the past five years."
 THREE MONTHS NINE MONTHS
 ENDED MARCH 31 ENDED MARCH 31
 1991 1992 1991 1992
 (Dollars in Thousands,
 (Except per Share Data)
 NET SALES $13,000 $14,750 $35,108 $41,842
 INCOME FROM OPERATIONS 1,846 1,458 3,815 3,884
 INCOME BEFORE PROVISION
 FOR INCOME TAXES 1,430 1,381 2,470 2,868
 NET INCOME 1.309 1,038 2,262 2,081
 NET INCOME PER COMMON
 SHARE $ .26 $ .15 $ .44 $ .35
 WEIGHTED AVERAGE COMMON AND
 COMMON EQUIVALENT SHARES
 OUTSTANDING 4,980,000 7,123,737 4,980,000 5,820,663
 Four-for-Three Stock Split
 The directors of F&C International voted to split the common stock four-for-three for shareholders of record of May 20, 1992. The distributable date is June 3, 1992 and the ex-dividend date is June 4, 1992. The net income per common share results do not reflect the four-for-three common stock split. Commenting on this action, Fries said, "The long-term outlook for the company is excellent, and given the significant increase in the price of the stock since the initial public offering in December, we believe the stock split is appropriate and will have the effect of increasing the stock available for trading, making it more attractive to a greater number of investors."
 F&C International is traded on the NASDAQ National Market System under the symbol "FCIN." The company completed its initial public offering on Dec. 13, 1991. F&C International is a creator and manufacturer of flavors and fragrances used by producers in the food, beverage, tobacco, personal care, household, institutional and pharmaceutical industries to impart or improve flavor or fragrance in a wide variety of consumer products.
 -0- 5/7/92
 /CONTACT: Jon P. Fries, chairman and CEO, or Craig Schuster, chief financial officer, both of F&C International, 513-772-8160/
 (FCIN) CO: F&C International ST: Ohio IN: FOD SU: ERN


SM -- CL012 -- 7501 05/07/92 10:02 EDT
COPYRIGHT 1992 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:May 7, 1992
Words:1114
Previous Article:OAK HILL SPORTSWEAR REPORTS EARNINGS
Next Article:BELL ATLANTIC SOFTWARE SYSTEMS INTRODUCES ALEX(R)PLUS -- THE NEXT GENERATION OF TELECOMMUNICATIONS MANAGEMENT SOFTWARE
Topics:


Related Articles
THE MIDLAND COMPANY REPORTS RECORD QUARTERLY RESULTS
MARK TWAIN BANCSHARES ANNOUNCES FOURTH QUARTER DIVIDEND, ITS 100TH CONSECUTIVE QUARTERLY DIVIDEND & 25TH ANNIVERSARY OF PUBLIC OWNERSHIP
WATSCO INCOME CLIMBS 31% DURING 1ST QUARTER DECLARES 3-FOR-2 STOCK SPLIT
CITICASTERS ANNOUNCES STRONG FIRST QUARTER RESULTS AND 3-FOR-2 STOCK SPLIT
CITICASTERS ANNOUNCES STRONG SECOND QUARTER RESULTS
CITIZENS BANCSHARES, INC. ANNOUNCES 1995 RECORD EARNINGS
STERIS REPORTS RECORD SALES, EARNINGS, AND EARNINGS PER SHARE FOR FISCAL 1996 THIRD QUARTER AND NINE MONTHS
Cable Link, Inc. Announces First Quarter 1997 Results
Global Telecommunication Solutions Announces Financial Results for the First Quarter of 1997
ITW Reports Record 1997 Third Quarter and Nine Months Results

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters