MICHAEL FOODS REPORTS HIGHER NET EARNINGS FOR YEAR;
LOWER FOR FOURTH QUARTER
MINNEAPOLIS, Feb. 18 /PRNewswire/ -- Michael Foods, Inc. (NASDAQ: MIKL) today reported financial results for the fourth quarter and year ended Dec. 31, 1991.
Fourth quarter 1991 net earnings were $3,578,000, compared to $4,667,000 in the same period the previous year. This represents a 23 percent decrease in net earnings. Earnings per share were $0.18 versus $0.28. Fourth quarter net sales rose 2 percent to $118,636,000 from $116,275,000 in the fourth quarter of 1990.
Net earnings for 1991 were $19,667,000, compared to $18,586,000 in 1990. This represents an increase of 6 percent. Earnings per share for 1991 were $1.07 versus $1.11 in 1990. Net sales for the year declined 1 percent to $454,735,000 from $461,229,000 in 1990.
Earnings per share for both the quarter and year reflect additional shares outstanding as a result of the company's common stock offering of May 1991. Additionally, all per share results reflect a three-for-two stock split which occurred in May 1991.
President and CEO Richard G. Olson commented, "The operating environment was difficult for our businesses in 1991 due to the recession. Against this back-drop we saw weak pricing on commodity- sensitive items, such as french fries and shell eggs, as well as increased price competition in our cheese distribution business. Fortunately, our value-added businesses generally performed well last year. We were pleased with the results of our Easy Eggs (R) business, as well as the refrigerated side of our Potato Products Division. Additionally, our Dairy Products Division had another excellent year due to an on-going improvement in their sales mix."
"Our strategic focus is toward growing our value-added businesses. Fortunately, our sales have shifted far enough toward those products that we were able to maintain our net earnings last year, despite the weak economy."
Michael Foods, Inc. is a diversified food processor and distributor with particular interests in egg products, refrigerated grocery products, frozen and refrigerated potato products, specialty dairy products and refrigerated soups and salads. Principal subsidiaries include M.G. Waldbaum Company, Crystal Farms Refrigerated Distribution Company, Northern Star Co., Kohler Mix Specialties, Inc. and Sunnyside Vegetable Packing, Inc.
MICHAEL FOODS, INC.
Consolidated Statements of Net Earnings
Periods ended: Fourth quarter Year
Dec. 31: 1991 1990 1991 1990
Net sales $118,636 $116,275 $454,735 $461,229
Cost of sales 102,200 92,586 380,270 376,170
Gross profit 16,436 23,689 74,465 85,059
SG&A 8,700 14,161 34,217 44,240
Operating profit 7,736 9,528 40,248 40,819
Interest expense, net 2,228 2,573 9,511 9,830
Earnings before income
taxes and minority
interest 5,508 6,955 30,737 30,989
Income tax expense 1,930 2,288 11,070 11,350
Earnings before minority
interest 3,578 4,667 19,667 19,639
Minority interest 0 0 0 (1,053)
Net earnings 3,578 4,667 19,667 18,586
Earnings per share $0.18 $0.28 $1.07 $1.11
Wtd. avg. common
shares outstanding 19,465,000 16,742,000 18,400,000 16,730,000
/CONTACT: Mark D. Witmer of Michael Foods, 612-546-1500/
(MIKL) CO: Michael Foods Inc. ST: Minnesota IN: FOD SU: ERN KD -- NY010 -- 9747 02/18/92 08:47 EST