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GOLDEN POULTRY EARNS $2.257 MILLION IN SECOND QUARTER; BOARD AUTHORIZES STOCK AND QUARTERLY CASH DIVIDENDS

 ATLANTA, Jan. 21 /PRNewswire/ -- Golden Poultry Company, Inc. (NASDAQ: CHIK) today reported net earnings of $2,257,000 or $.17 per share, for the quarter ended Dec. 26, 1992.
 Those results compare with a net loss of $2,477,000, or $.18 per share, in the same period last year.
 For the first half of fiscal 1993, Golden Poultry had net earnings of $4,149,000 or $.31 per share, compared to a net loss of $3,463,000, or $.26 per share, in the same period last year. The net loss for the six months ended Dec. 28, 1991, reflected a net charge of $1,517,000, or $.11 per share, related to an accounting change for postretirement employee benefits.
 A 10 percent stock dividend was approved today by the board of directors. After the distribution there will be approximately 13.5 million shares outstanding. All references to share and per share information have been adjusted to reflect results after the stock dividend.
 Net sales were $93,466,000 in the second fiscal quarter, up 19.9 percent from the same quarter last year net sales of $77,956,000. For the first half of the current fiscal year, net sales were $186,426,000, an increase of 20.8 percent over net sales of $154,270,000 in the first half of the prior year.
 Year to date net sales were higher as a result of an 18 percent increase in pounds of products sold and improved selling prices, according to Harold O. Chitwood of Atlanta, chairman of the board. The company's four processing complexes processed an average of 3.2 million birds per week in the current six-month period compared to 2.7 million birds in the same period a year ago. Lower unit costs from efficiency gains and an 8 percent decline in feed ingredient costs compared to the same quarter last fiscal year contributed to improved net earnings. The record 1992 corn harvest should result in lower feed ingredient costs through fiscal 1993, Chitwood said. Corn comprises about half of the ingredients in poultry feed.
 The company announced plans for a capital investment of approximately $4.5 million to add a fourth chicken processing line at the Carolina Golden Products complex at Sumter, S.C. It is expected to be in operation in the first quarter of fiscal 1994, adding about 330,000 birds per week to the plant's capacity and increasing Golden Poultry's total capacity to 3.8 million birds per week.
 The 10 percent share dividend will be issued Feb. 25 to shareholders of record on Feb. 11. The board also approved a regular quarterly cash dividend of $.01 per share payable Feb. 18 to shareholders of record on Feb. 4.
 On Jan. 12 and 13, three Alabama members of Gold Kist Inc. filed lawsuits in the nature of derivative actions against Golden Poultry, Gold Kist and Carolina Golden Products Company and certain directors, officers and employees of the companies. The lawsuits allege that the named officers, directors and employees violated their fiduciary duties by creating Golden Poultry and Carolina Golden Products, by permitting their continued operations and by selling shares of Golden Poultry common stock to certain officers, directors and employees. Among the remedies requested is the transfer of all poultry operations to Gold Kist. The companies are reviewing the allegations and will respond to the lawsuits appropriately.
 Gold Kist Inc. is a farm cooperative which owns approximately 71 percent of the common stock of Golden Poultry Company. Golden Poultry owns 51 percent of Carolina Golden Products Company in a joint venture with Gold Kist. Golden Poultry is an integrated producer, processor, marketer and distributor of poultry and other food products.
 GOLDEN POULTRY COMPANY, INC. AND SUBSIDIARY
 Consolidated Balance Sheets
 (Amounts in thousands)
 (Unaudited)
 ASSETS 12/26/92 6/27/92
 Current assets:
 Cash $ 3,109 $ 2,330
 Trade accounts receivable less allowance
 for doubtful accounts of $244 at Dec. 26,
 1992, and $255 at June 27, 1992 14,219 13,686
 Inventories 31,148 31,174
 Other 1,919 453
 Total current assets 50,395 47,643
 Property, plant and equipment, net 87,312 93,856
 Other assets 2,073 2,423
 Total $139,780 $143,922
 LIABILITIES AND SHAREHOLDERS' EQUITY
 Current liabilities:
 Short-term borrowings --- 5,175
 Current portion of long-term debt 1,166 1,166
 Accounts payable 14,917 13,185
 Due to Gold Kist 5,175 2,790
 Accrued compensation and related expenses 2,564 2,609
 Total current liabilities 23,822 24,925
 Long-term debt, excluding current portion 8,466 8,823
 Long-term debt, payable to Gold Kist 20,000 25,000
 Other liabilities 2,664 2,664
 Total liabilities 54,952 61,412
 Minority interest in consolidated partnership 2,975 4,582
 Shareholders' equity:
 Preferred stock, $1.00 par value. Authorized
 1,000 shares; no shares issued --- ---
 Common stock, no stated par value. Authorized
 20,000 shares; issued and outstanding 13,508
 shares at Dec. 26, 1992, and 13,505 shares
 at June 27, 1992 (a) 42,330 42,309
 Retained earnings 39,523 35,619
 Total shareholders' equity 81,853 77,928
 Total $139,780 $143,922
 (a) The number of common shares issued and outstanding have been retroactively adjusted for a 10 percent stock dividend.
 Consolidated Statements of Operations
 (Amounts in thousands, except per share data)
 (Unaudited)
 3 mos. ended 6 mos. ended
 12/26/92 12/28/91 12/26/92 12/28/91
 Net sales $ 93,466 $ 77,956 $186,426 $154,270
 Cost of sales 86,332 79,857 173,102 153,421
 Gross profit (loss) 7,134 (1,901) 13,324 849
 Selling, administrative and
 general expenses 3,876 3,010 7,310 6,064
 Operating income (loss) 3,258 (4,911) 6,014 (5,215)
 Other (expense) income:
 Interest expense (590) (490) (1,252) (921)
 Miscellaneous 211 203 330 296
 Total (379) (287) (922) (625)
 Earnings (loss) before minority
 interest, income taxes and
 cumulative effect of change in
 accounting principle 2,879 (5,198) 5,092 (5,840)
 Minority interest in
 partnership loss 752 1,237 1,607 2,743
 Earnings (loss) before income taxes
 and cumulative effect of change in
 accounting principle 3,631 (3,961) 6,699 (3,097)
 Income tax expense (benefit) 1,374 (1,484) 2,550 (1,151)
 Earnings (loss) before cumulative
 effect of change in accounting
 principle 2,257 (2,477) 4,149 (1,946)
 Cumulative effect of change in
 accounting for postretirement
 benefits other than pensions
 net of income tax benefit
 of $748 --- --- --- (1,517)
 Net earnings (loss) $ 2,257 $ (2,477)$ 4,149 $ (3,463)
 Net earnings (loss) per share:
 Earnings (loss) before cumulative
 effect of change in accounting
 principle $ 0.17 $ (0.18)$ 0.31 $ (0.15)
 Cumulative effect of change
 in accounting principle --- --- --- (0.11)
 Net earnings (loss) $ 0.17 $ (0.18)$ 0.31 $ (0.26)
 Weighted average outstanding
 shares (a) 13,508 13,504 13,506 13,503
 (a) The number of common shares issued and outstanding have been retroactively adjusted for a 10 percent stock dividend.
 -0- 1/21/93
 /CONTACT: Paul G. Brower of Golden Poultry, 404-393-5312/
 (CHIK)


CO: Golden Poultry Company, Inc. ST: Georgia IN: FOD SU: ERN DIV

CF-BN -- AT013 -- 7629 01/21/93 16:55 EST
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