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GENESEE CORPORATION ANNOUNCES THIRD CONSECUTIVE YEAR OF IMPROVED SALES AND EARNINGS

 GENESEE CORPORATION ANNOUNCES THIRD
 CONSECUTIVE YEAR OF IMPROVED SALES AND EARNINGS
 ROCHESTER, N.Y., June 22 /PRNewswire/ -- Genesee Corporation (NASDAQ: GENBB) today announced improved sales and earnings for the fiscal year ended April 30, 1992. This marks the third consecutive year of growth in both sales and earnings.
 Consolidated gross sales for the fiscal year increased 14 percent to $195,413,000 compared to $171,034,000 for the prior year. Net earnings for 1992 were $7,427,000 compared to $5,938,000 in fiscal 1991, an increase of 25 percent.
 Genesee Brewing Company's sales and earnings made a significant contribution to the corporation's improved performance. Increased gross sales by the brewing subsidiary were attributed in part to price increases implemented in response to the 1991 federal tax increase. Net sales by the brewing division increased by approximately $5.6 million and product volume sales increased 1.1 percent over the prior year.
 President and chief executive officer, John L. Wehle, Jr. said, "Performance by our brewing business is particularly gratifying, especially when viewed against the overall industry, which reported a decline in 1991." Officials attributed increased sales and earnings by Genesee Brewing Company to ongoing efforts to improve all aspects of production, sales and marketing. Although Genesee Brewing Company continued to expand sales to new geographic areas, greater emphasis was placed on sales in existing markets. Genesee Brewing Company also benefited from increased sales of its popularly priced Koch's Golden Anniversary brands and the introduction in May 1991 of Genesee NA, a non-alcohol malt beverage.
 Officials reported that Ontario Foods, the corporation's foods division, experienced improved sales and operating results as it continued to pursue a strategy of new product development, and new sales opportunities. The foods division's private label business grew as its new line of noodles and rice side dishes achieved wide acceptance as high quality private label alternative to the national brands.
 The foods division's ingredient sales continued steady growth and also benefited from the acquisition in January 1992 of product lines and customer accounts of a small west coast food company specializing in dehydrated bean and legume products. In addition to creating new opportunities for ingredient sales, the acquisition allowed the foods division to add new food processing technologies and expertise. The foods division is in the process of relocating production of these newly acquired product lines to its Albion, N.Y. facility.
 The corporation's real estate investments contributed to the growth in revenues but reported lower earnings in fiscal 1992, primarily because fiscal 1991 earnings included a pre-tax gain of $868,000 from the sale of a real estate investment.
 Cheyenne Leasing, the corporation's equipment leasing business, experienced its best year in terms of new leases, value of equipment leased and profitability. Officials reported that Cheyenne Leasing is exploring new leasing products and lease sourcing methods as part of a long term strategy for continued growth.
 Robert N. Latella, the corporation's executive vice president and chief operating officer said, "Equipment leasing and real estate have become a significant component of the corporation's long term strategy, contributing more than $2 million of operating income in fiscal 1992."
 Officials also noted that $1.2 million of non-recurring other income contributed to profitability in fiscal 1992. This income came primarily from a favorable recovery by Genesee Brewing Company from the settlement in March 1992 of litigation against a former distributor and from the previously reported sale of a former distribution facility that was no longer needed by Genesee Brewing Company.
 Wehle reported that the corporation would continue to pursue its long term strategies for growth and profitability for each segment of its business. Wehle said, "Our recent successes prove that we are on the right track and we will work to develop and refine our strategies to achieve the goals we have established for each of our businesses."
 GENESEE CORPORATION
 COMPARATIVE STATEMENT OF EARNINGS
 12 MONTHS ENDED APRIL 30, 1992 APRIL 30, 1991
 GROSS SALES $195,413,000 $171,034,000
 Less: Excise Taxes
 and Allowances $50,265,000 $36,249,000
 NET SALES $145,148,000 $134,785,000
 EARNINGS BEFORE TAXES $12,245,000 $9,594,000
 NET EARNINGS $7,427,000 $5,938,000
 NET EARNINGS PER SHARE $4.64 $3.71
 -0- 6/22/92
 /CONTACT: Thomas G. Jones of Genesee Corporation, 716-546-1030/
 (GENBB) CO: Genesee Corporation ST: New York IN: FOD SU: ERN


BM -- CL004 -- 2311 06/22/92 10:46 EDT
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Publication:PR Newswire
Date:Jun 22, 1992
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