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VIE DE FRANCE CORPORATION REPORTS PROFITABLE SECOND QUARTER RESULTS

 MCLEAN, Va., Jan. 11 /PRNewswire/ -- Vie de France Corporation (NASDAQ-NMS: VDEF) announced today the results of its second quarter of fiscal year 1993, which ended Dec. 12, 1992.
 The company's consolidated sales for the quarter increased 6 percent to $9,271,000 from $8,734,000 in the second quarter of the previous year. Net income was $122,000 (1 cent per share), vs. a loss of $324,000 (2 cents per share) for the second quarter of 1992. For the year to date, the company reported sales of $17,559,000 and a net income of $141,000 (1 cent per share) for fiscal 1993, compared to net sales of $16,496,000 and a net loss of $733,000 (5 cents per share) for fiscal 1992.
 Jean-Louis Vilgrain, chairman and chief executive officer, expressed his satisfaction with the increase in sales, and more importantly, the improvement in operating results of over $400,000 from the prior year, bringing the company's comparable second quarter results from a loss to a profit. He noted that several factors led to the current quarter profitability. First, the Restaurant Division continued to post increased sales and profitable results. Second, the Culinary Division significantly reduced its operating losses due to increased sales and associated margins. Finally, the corporation realized cash recoveries for prior year claims relating to workers compensation in the Restaurant and former Bakery Divisions. These recoveries amounted to approximately $150,000 in other income for the current quarter.
 All of these elements reduced consolidated results from operations, which includes other income, by 94 percent to a loss of $29,000 for the current quarter, and by 83 percent to a loss of $191,000 for the fiscal year to date. Last year's consolidated results from operations were losses of $473,000 and $1,102,000 for the second quarter and year to date, respectively.
 Vilgrain noted that the company's invested cash balance remains strong at about $9.6 million, and that the company continues to benefit from interest income. Non-operating income, primarily interest income, amounted to $151,000 for the second quarter in both the current and previous years, and decreased by 10 percent to $331,000 fiscal year 1993 to date vs. $370,000 for the previous year. The substantially reduced operating losses, along with the interest income, generated the consolidated net income for the quarter.
 The restaurant division experienced gains in comparable store revenues and profits. Comparable locations increased sales by 2 percent over the previous year same quarter, and by 3 percent on a year to date basis. Vilgrain commented that the Restaurant Division has been implementing new menu offerings and presentations, which have shown marked success in the converted locations. Resulting primarily from the closure of four restaurant locations since the prior year, total division sales decreased by 4 percent to $6,912,000 in the second quarter, and by 3 percent to $13,456,000 for fiscal 1993 to date from $7,176,000, and $13,840,000 for fiscal 1992 second quarter and year to date, respectively. Vilgrain added that the improvement in restaurant profitability is a major factor behind the company's overall success in the quarter. He emphasized the division's year to date improved profitability, over and above the benefits of certain first quarter legal and health insurance settlements.
 Sales in the Culinary Division continued to increase over previous year quarter levels. Net sales reached $2,366,000 for the second quarter of fiscal 1993, representing a 46 percent increase over the previous year same quarter. Year to date, fiscal 1993 sales increased 49 percent, to $4,113,000 vs. the fiscal 1992 to date sales of $2,763,000. Vilgrain commented sous vide sales continue to increase rapidly, by 81 percent over the previous year comparable quarter, and by 88 percent over the previous year to date. Significantly, the division completed and shipped its first export order. Exports represent a substantial growth market for sous vide in the near future. Vilgrain noted that the division has still not reached break even sales levels, however encouraging reductions in operating losses, resulting from increased sales volume, sustain his optimism in the future of this division and in the sous vide product line.
 The profitable results for the second quarter reflect continued progress within the company and build upon the results of the first quarter. Recognizing the seasonal nature of the restaurant operations, Vilgrain cautioned that the upcoming third and fourth quarter results may not be as strong as second quarter. However, with the expanding customer acceptance of the sous vide product line, and the continued growth in the Restaurant Division, Vilgrain reaffirmed his optimism in the future success of Vie de France Corporation.
 VIE DE FRANCE CORPORATION
 Results of Operations
 Second Quarter Ended
 Dec. 12, 1992 Dec. 14, 1991
 Sales
 Restaurant Division $ 6,912,215 $ 7,175,967
 Culinary Division 2,366,379 1,623,697
 Total 9,278,594 8,799,664
 Less intersegment transfers (8,037) (65,819)
 Net sales $ 9,270,557 $ 8,733,845
 Loss from operations $ (28,896) $ (473,358)
 Net income (loss) before taxes $ 121,566 $ (323,593)
 Net income (loss) $ 121,566 $ (323,593)
 Net income (loss) per share $ 0.01 $ (0.02)
 Average shares outstanding 13,567,793 13,567,793
 Twenty-four Weeks Ended
 Dec. 12, 1992 Dec. 14, 1991
 Sales
 Restaurant Division $ 13,456,344 $ 13,839,578
 Culinary Division 4,112,570 2,762,669
 Total 17,568,914 16,602,247
 Less intersegment transfers (9,901) (106,438)
 Net sales $ 17,559,013 $ 16,495,809
 Loss from operations $ (190,736) $ (1,102,285)
 Net income (loss) before taxes $ 140,635 $ (732,653)
 Net income (loss) $ 140,635 $ (732,653)
 Net income (loss) per share $ 0.01 $ (0.05)
 Average shares outstanding 13,567,793 13,567,793
 -0- 1/11/93
 /CONTACT: Stanilas Vilgrain of Vie de France, 703-442-9600/
 (VDEF)


CO: Vie de France Corporation ST: Virginia IN: LEI SU: ERN

IH -- DC010 -- 3498 01/11/93 11:36 EST
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Date:Jan 11, 1993
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