Printer Friendly

WESTERN BEEF REPORTS NINE-MONTHS NET INCOME UP 15 PERCENT; EXCLUDING EXTRAORDINARY ITEM

 RIDGEWOOD, N.Y., Nov. 16 /PRNewswire/ -- Western Beef Inc. (NASDAQ: BEEF) announced today nine-month net income grew nearly 15 percent, excluding the one-time 1992 gain realized on the disposal of the New England wholesale meat subsidiary. In addition, retail sales on a comparable store basis increased 1.16 percent for the year-to- date.
 For the fiscal third quarter ended Oct. 2, 1993, net income was $919,509 or 17 cents per share on sales of $68,947,431. For the comparable period last year, net income excluding the one-time gain was $948,232 or 17 cents per share on sales of $79,559,555. Sale of the Quarex New England subsidiary in September 1992 resulted in a one-time aftertax gain of $487,512 or 9 cents per share. The decrease in 1993 sales is due to the disposal of the New England operation and the loss of a marginally profitable wholesale meat customer; these decreases were partially offset by the sales of two retail stores opened earlier in the year.
 For the nine-month 1993 period net income was $3,538,968 or 65 cents per share on sales of $202,934,102. Excluding the one-time gain, net income for the like period in 1992 was $3,098,559 or 57 cents per share on sales of $226,935,666.
 Retail store sales contributed 62 percent of year-to-date 1993 sales compared to 52 percent of sales reported for the like period last year. Reflecting this shift, gross profit for the nine-month periods of 1993 and 1992 was 22.7 percent and 19.0 percent, respectively. The retail division operates with higher gross margins than does the wholesale division and selling, general and administrative costs expressed as a percentage of sales are also higher for the retail operations. Included in the selling, general and administrative costs category are store payroll and operating costs.
 "Two new retail stores will be opened in the fourth quarter; the Mineola, New York supermarket is now operating and the Astoria, New York store will be open for business in November," said Anthony C. DeGeorge, chief financial officer of Western Beef. "Notwithstanding the start-up costs related to these openings, during the fourth quarter we expect to sustain or modestly improve on the year-to-year rate of increase in net income."
 Based in New York, Western Beef operates 15 high volume, warehouse-type retail supermarkets in urban lower-income and ethnic neighborhoods, and is one of New York's largest meat and poultry distributors.
 -0- 11/16/93
 /CONTACT: Wayne Brown of Carl Thompson Associates, 303-494-5472/
 (BEEF)


CO: Western Beef Inc. ST: New York IN: REA SU: ERN

BB -- DV007 -- 5162 11/16/93 14:39 EST
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Nov 16, 1993
Words:444
Previous Article:GM POWERTRAIN ADDS JOBS TO TONAWANDA, N.Y., ENGINE PLANT
Next Article:COMPUTER CONCEPTS ANNOUNCES THIRD CONSECUTIVE QUARTER OF RECORD EARNINGS
Topics:

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters