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GENESEE CORPORATION ANNOUNCES SECOND QUARTER SALES AND EARNINGS

 ROCHESTER, N.Y., Dec. 7 /PRNewswire/ -- Genesee Corporation (NASDAQ: GENBB) today announced consolidated sales and earnings for the second quarter and six months ended Oct. 31, 1993.
 Second quarter gross sales were $45,054,000, compared to $46,619,000 for the same period a year ago. Net earnings for the second quarter were $466,000 or $.29 per share, compared to last year's second quarter net earnings of $402,000 or $.25 per share. Sales for the first six months of the fiscal year were $97,719,000, compared to $97,434,000 in the prior fiscal year. Net earnings for the first six months of the fiscal year were $1,990,000 or $1.24 per share, compared to a restated loss last year of ($4,857,000) or ($3.03) per share.
 As a result of the previously announced adoption of required changes in accounting treatment for postretirement health care benefits and income taxes, the corporation was required to restate its financial statements for the first six months of 1993 to reflect a cumulative one- time, after tax charge against earnings of $6,847,000. Earnings for the first six months of fiscal 1993 before this charge were $1,990,000.
 Despite the slight improvement in net earnings for the second quarter of fiscal 1994, the corporation reported an operating loss of $375,000 for the quarter.
 The lower sales and operating loss in the second quarter resulted from lower barrel volume and increased marketing expenditures by Genesee Brewing Company. Sales of malt beverages were sluggish throughout the industry and consumer demand for malt beverages in Genesee Brewing Company's key northeastern markets continued to lag behind the trends in other regions. Genesee Brewing Company's sales were also affected by the growing consumer interest in new brands. "The consumer is demanding more variety and is increasingly looking for a new experience when deciding what malt beverage to buy," said John L. Wehle, Jr., the corporation's chairman, president and chief executive officer.
 Genesee Brewing Company began to address this trend in February 1992 with the introduction of Michael Shea's Irish Amber, a specialty brand that has experienced rapid sales growth since its introduction. In November 1993, Genesee Brewing Company introduced two additional new brands. Genny Ice is a major new addition to the Genesee brand family. The clean, refreshing taste and attractive packaging of Genny Ice make it a strong contender in the rapidly growing ice beer category. Michael Shea's Black and Tan is a rich blend of porter and lager-style beers and is the first extension of the highly acclaimed Michael Shea's brand. The initial response to both of these new products has been favorable and they are expected to generate new sales opportunities for Genesee Brewing Company during the balance of fiscal 1994 and beyond. "Genny Ice and Michael Shea's Black and Tan demonstrate Genesee's ability to create and bring to market the kind of innovative and high quality products that the consumer is demanding," said Wehle.
 Sales by the corporation's Foods Division increased 11 percent in the second quarter, largely on the strength of increased sales of private label noodles and rice side dishes. In September 1993, the corporation announced that the Foods Division would focus its resources on its more profitable retail private label business. As a result, profit margins and production efficiencies in the Foods Division have improved. The Foods Division reported modest operating income in the second quarter and is at nearly break-even for the first six months of fiscal 1994 compared to the losses reported for both periods during the prior year.
 The corporation's real estate investments and equipment leasing business both generated slightly higher revenues and earnings during the first two quarters of fiscal 1994. Occupancy rates remain high and rental income is steady from the corporation's two real estate investments. Revenues and new equipment lease activity by Cheyenne Leasing Company are on target through the first six months of fiscal 1994.
 The corporation also benefited during the second quarter from other income of $597,000 from capital gains on the sale of marketable securities held by the corporation.
 GENESEE CORPORATION
 Comparative Statement of Earnings
 THREE MONTHS ENDED
 October 31, 1993 October 31, 1992
 Gross Sales $45,054,000 $46,619,000
 Less: Excise Taxes
 & Allowances $10,894,000 $11,361,000
 Net Sales $34,160,000 $35,258,000
 Earnings Before Income Taxes and
 cumulative effect of changes
 in accounting principles $ 795,000 $ 787,000
 Less: Income Taxes $ 329,000 $ 385,000
 Less: Cumulative effect of
 changes in accounting
 principles --- ---
 Net Earnings/(Loss) $ 466,000 $ 402,000
 Net Earnings/(Loss) Per Share $ .29 $ .25
 SIX MONTHS ENDED
 October 31, 1993 October 31, 1992
 Gross Sales $97,719,000 $97,434,000
 Less: Excise Taxes
 & Allowances $24,222,000 $24,256,000
 Net Sales $73,497,000 $73,178,000
 Earnings Before Income Taxes and
 cumulative effect of changes
 in accounting principles $ 3,294,000 $ 3,488,000
 Less: Income Taxes $ 1,304,000 $ 1,498,000
 Less: Cumulative effect of
 changes in accounting
 principles --- $ 6,847,000
 Net Earnings/(Loss) $ 1,990,000 ($ 4,857,000)
 Net Earnings/(Loss) Per Share $ 1.24 ($ 3.03)
 NOTES: Figures for the six months ended Oct. 31, 1992, are restated for the cumulative effect of changes in accounting for income taxes and postretirement benefits other than pensions as of May 1, 1992.
 Both interim reports are unaudited and subject to year-end adjustments and, due to the seasonal nature of the business and the varying schedule of special sales efforts, are not necessarily indicative of the results to be expected for the year.
 -0- 12/7/93
 /CONTACT: Mark Leunig of Genesee Corporation, 716-546-1030, ext. 440/
 (GENBB)


CO: Genesee Corporation ST: New York IN: FOD SU: ERN

KL-LC -- CL015 -- 1438 12/07/93 16:44 EST
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Date:Dec 7, 1993
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