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RYKOFF-SEXTON REPORTS IMPROVED EARNINGS FOR FIRST QUARTER

 LOS ANGELES, Sept. 8 /PRNewswire/ -- Rykoff-Sexton Inc. (NYSE: RYK) today reported improved earnings on lower sales for its first fiscal quarter.
 For the three months ended July 31, 1993, the company reported net income of $1,137,000, equal to $.10 per share, compared with a net loss for the comparable prior-year period of $131,000, or $.01 per share, before the effect of SFAS 109, accounting for income taxes. On a restated basis to reflect SFAS 109, net income for the prior-year period was $601,000, or $.05 per share. Sales for the first quarter amounted to $366,391,000, compared with $371,548,000 a year ago.
 Mark Van Stekelenburg, president and chief executive officer, said the increased earnings were directly attributable to the progress being made with the company's restructuring program. He noted that operating expenses for the quarter were reduced 2.2 percent, or $1.8 million, over the prior-year period, and interest expense was $466,000 lower than last year due primarily to reduced borrowing levels. Van Stekelenburg said the lower sales volume reflected the closure of several inefficient operations, elimination of a number of unprofitable accounts and generally sluggish economic conditions.
 "These positive developments are the result of management's plan to revitalize the company and the dedication and hard work of our employees," said Van Stekelenburg. "There is still much to accomplish, but I am confident we are on the right track."
 Rykoff-Sexton Inc. is a leading nationwide distributor and manufacturer of food and related products for restaurants, institutions and other locations where food is served away from home, as well as one of the country's largest restaurant equipment, supply and contract and design companies. The company's 26 distribution centers, nine additional sales offices and 11 contract and design facilities are located throughout the United States. Manufacturing, processing and packaging operations are based in Los Angeles; Indianapolis; Englewood, N.J.; Brooklyn, N.Y.; and Des Moines, Iowa.
 RYKOFF-SEXTON INC.
 Condensed Consolidated Statements of Income
 (Unaudited)
 Three Months Ended
 July 31, 1993 Aug. 1, 1992
 Net sales $366,391,000 $371,548,000
 Income (loss) before provision
 (benefit) for income taxes
 and change in accounting 1,927,000 (219,000)
 Provision (benefit) for
 income taxes 790,000 (88,000)
 Income (loss) before change
 in accounting 1,137,000 (131,000)
 Cumulative effect of change
 in accounting for income taxes --- 732,000
 Net income 1,137,000 601,000(a)
 Per share data:
 Income (loss) before
 change in accounting $.10 ($.01)
 Change in accounting
 for income taxes --- $.06
 Net income $.10 $.05(a)
 Weighted average number
 of shares outstanding 11,623,464 11,619,135
 (a) Restated from net loss of $131,000, or $.01 per share, to reflect adoption of SFAS 109 in fourth quarter of fiscal year 1993.
 -0- 9/8/93
 /CONTACT: Richard J. Martin, Rykoff-Sexton, 213-622-4131; or Roger S. Pondel, Pondel Parsons & Wilkinson, 310-207-9300/
 (RYK)


CO: Rykoff-Sexton Inc. ST: California IN: FOD SU: ERN

JL-MF -- LA009 -- 9645 09/08/93 09:04 EDT
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Publication:PR Newswire
Date:Sep 8, 1993
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