MICHAEL FOODS REPORTS SECOND QUARTER RESULTS
MICHAEL FOODS REPORTS SECOND QUARTER RESULTS MINNEAPOLIS, July 16 /PRNewswire/ -- Michael Foods, Inc.
(NASDAQ-NMS: MIKL) today announced financial results for the second quarter ended June 30, 1992. Net earnings were $600,000 versus $5.1 million, or 3 cents per share versus 29 cents per share. Net sales were virtually flat at $110 million versus $111 million. Net earnings for the six months ended June 30, 1992, were $2.0 million versus $10.9 million, or 10 cents per share versus 63 cents per share. Net sales for the first half were $216.4 million versus $224.8 million. There were increased shares outstanding for both periods of 1992 versus 1991.
In commenting on the results, Chief Executive Officer Richard G. Olson said, "In the first quarter and now the second quarter, we experienced very poor pricing conditions with our commodity-sensitive products. The coincidence of pricing lows in the shell egg and french fry markets caused a significant reduction in our margins. Additionally, our refrigerated distribution division continues to be faced with extremely competitive conditions market-wide, particularly with cheese. Fortunately, we continue to see strong results out of value-added products, particularly Easy Eggs(R) and refrigerated potatoes." The increased level of operating expenses in the second quarter primarily reflects costs for the successful introduction of Simply Eggs(TM), Michael Foods' new cholesterol-reduced liquid whole eggs, in retail, foodservice and industrial test markets. The company has been pleased with the acceptance of the new product in its first two retail test markets of Minneapolis/St. Paul and Chicago. Expansion of the retail test markets will occur next month with the introduction of Simply Eggs in Cleveland and Houston. Additionally, initial sales have been made to the foodservice market, and extensive testing is occurring in this segment, as well as in the industrial market. Another significant recent event was the finding by a jury in the U.S District Court in Florida that the patent covering the process by which Easy Eggs are made, and for which Michael Foods holds a license, is valid and fully enforceable. Further, the court ruled that a competitor infringed the patent and that this infringement was both willful and deliberate. Michael Foods has since been awarded treble damages and attorney's fees. A second infringement case is awaiting trial in New Jersey and a potential competitor is contesting the validity of the patent. The company intends to defend the patent aggressively and stated that it will move equally aggressively against any other infringements. Michael Foods 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 (In thousands, except per share amounts) Second Quarter Ended Six Months Ended 6/30/92 6/31/92 6/30/92 6/30/91 Net sales $109,940 $111,083 $216,436 $224,824 Cost of sales 97,341 92,478 190,799 185,058 Gross profit 12,599 18,605 25,637 39,766 Selling, general & administrative 9,171 8,064 17,624 17,547 Operating profit 3,428 10,541 8,013 22,219 Interest (income) expense, net 2,444 2,519 4,923 5,170 Earnings before income taxes 984 8,022 3,090 17,049 Income tax expense 355 2,890 1,115 6,190 Net earnings $629 $5,132 $1,975 $10,859 Earnings per share $0.03 $0.29 $0.10 $0.63 Weighted average common shares outstanding 19,518,000 17,912,000 19,507,000 17,342,000 -0- 7/16/92 /CONTACT: Mark D. Witmer of Michael Foods, 612-546-1500/ (MIKL) CO: Michael Foods, Inc. ST: Minnesota IN: FOD SU: ERN
AL -- MN010 -- 9923 07/16/92 16:00 EDT
|Printer friendly Cite/link Email Feedback|
|Date:||Jul 16, 1992|
|Previous Article:||FIRST AMERICAN EARNINGS UP FOR SIXTH CONSECUTIVE QUARTER|
|Next Article:||THE NEW YORK TIMES COMPANY REPORTS SECOND-QUARTER RESULTS|