Rica Foods, Inc. (Amex: RCF) announced yesterday its net income for fiscal year ended September 30, 2000 amounts to $2,888,947. RICA is the parent company of Costa Rica’s largest and most important poultry producers, and among the biggest in the Central American Region, Corporacion Pipasa, S.A. (“Pipasa”) and Corporacion As de Oros, S.A. (“As de Oros”), which cover approximately 70% of the local market.
Revenues increased by 4.28% from $118.5 million for fiscal 1999 to $123.6 million during fiscal 2000. The Company’s net income applicable to common stockholders decreased by approximately $150,000 for fiscal 2000, when compared to the same period for fiscal 1999. Diluted earnings per share decreased from $ 0.42 for fiscal 1999 to $ 0.24 for fiscal 2000. The decrease in diluted earnings per share is mainly due to the November and December 1999, acquisition of the remaining minority interests of Pipasa and As de Oros through an issuance of an aggregate of 5,354,516 of the Company’s common shares and a decrease in the Company’s net income for fiscal 2000.
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Overall segment profit decreased by $3.32 million. The decrease is mainly due to increased costs of raw materials, variations in sales mix to less profitable products, temporary reductions in the sales price of some products, offset by increase in sales prices of other products and increase in sales volume of some products. In addition, sales of the restaurant segment decreased mainly due to temporary closing of some its restaurants due to remodeling.
Operating expenses for fiscal 2000 increased by 16.1% when compared to fiscal 1999. The increase is primarily attributable to payroll expenses due to recurrent increases in payroll and a new executive organizational structure for further international expansion. There were also increases in vehicle fleet leasing costs, and additional non-cash expenditures related to the purchase of the remaining minority interest of As de Oros, and other research in international markets. Other expenses (income) for fiscal 2000 decreased by 38.9%, when compared to fiscal 1999 mainly due to an increase in interest income, dividends received from long term investments in stocks, and gains from sales of vehicles, properties and other assets.
During fiscal 2000, the Company invested a total of $17.4 million, which are primarily related to purchases and improvements in production equipment and facilities. The Company is investing in the expansion of the by-products processing plant to increase production and also in the animal feed plants to lower costs of production and to increase production for internal consumption as a result of increased projected sales. The expansion of the animal feed plants will position the Company as a leader in “pellet” animal feed production in Central America. In addition, the Company is remodeling the waste and recycling facilities and has also installed a communication network between different locations of the Company’s facilities, has acquired an enterprise resource planning system and has remodeled some restaurants.
Also, as Management expected, the human resource has played an important role in achieving the goals set by the parent company. “Management continues to focus its growth through expanding customer relations and potential acquisitions in the area,” said Calixto Chaves, Chief Executive Officer. Mr. Randall Piedra, Chief Financial Officer, also added, “Our dedicated employees are continuously considering costs reductions and increasing efficiency in all the productive and operational processes.”
RICA FOODS, INC. AND SUBSIDIARIES
Consolidated Balance Sheets
September 30, 2000 and 1999
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By GlobalDataAssets 2000 1999
Current assets:
Cash and cash equivalents $4,256,636 $3,913,168
Short-term investments 86,557 32,747
Notes and accounts receivable, net 11,187,031 9,603,282
Due from related parties 39,618 2,954,579
Inventories, net 14,307,768 13,896,517
Prepaid expenses 557,519 366,221
Total current assets 30,435,129 30,766,514
Property, plant and equipment, net 45,425,881 31,923,486
Long-term receivables-trade 640,222 114,346
Long-term investments 3,965,385 4,260,663
Other assets, net 4,010,364 1,875,888
Cost in excess of net assets
of acquired business, net 3,705,392 1,382,226
Total assets $ 88,182,373 $ 70,323,123
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable $ 16,161,076 $ 12,084,992
Accrued expenses 3,862,659 3,604,397
Notes payable 12,878,147 7,582,890
Current portion of long-term debt 5,680,190 1,182,184
Due to stockholders 76,657 75,108
Total current liabilities 38,658,729 24,529,571
Long-term debt, net of current portion 21,820,905 21,443,589
Due to stockholders 16,409 16,715
Deferred income tax liability 2,899,511 1,764,735
Total liabilities 63,395,554 47,754,610
Minority interest in Subsidiary 1,336,445 9,468,206
Commitments and Contingencies (Note 19)
Stockholders’ equity:
Common stock 12,855 7,486
Preferred stock 2,216,072 2,216,072
Additional paid-in capital 25,760,950 12,137,326
Accumulated other comprehensive loss (8,758,737) (6,828,500)
Retained earnings 9,388,127 6,481,305
28,619,267 14,013,689
Less:
Due from stockholders (4,900,499) (644,988)
Treasury stock, at cost (268,394) (268,394)
Total stockholders’ equity 23,450,374 13,100,307
Total liabilities and
stockholders’ equity $ 88,182,373 $ 70,323,123
The accompanying notes to consolidated financial statements are an integral part of these balance sheets.
RICA FOODS, INC. AND SUBSIDIARIES
Consolidated Statements of Income
Years ended September 30, 2000, 1999 and 1998
2000 1999 1998
Net sales $ 123,628,327 $ 118,549,625 $ 98,793,976
Cost of sales 83,756,904 77,274,794 71,464,203
Gross profit 39,871,423 41,274,831 27,329,773
Operating expenses:
General and
administrative 13,577,143 11,412,996 8,694,664
Selling 18,955,061 17,035,717 12,182,757
Amortization of cost in
excess of net assets of
acquired business 953,828 398,941 297,206
Total operating
expenses 33,486,032 28,847,654 21,174,627
Income from
operations 6,385,391 12,427,177 6,155,146
Other expenses (income):
Interest expense, net of
interest capitalized 3,548,935 3,484,314 3,108,182
Interest income (1,660,747) (677,155) (614,211)
Foreign exchange
losses, net 1,562,549 1,806,311 1,412,971
Miscellaneous, net (790,039) (360,341) (1,392,732)
Other expenses, net 2,660,698 4,253,129 2,514,210
Income before income taxes
and minority interest 3,724,693 8,174,048 3,640,936
Provision for income taxes 80,223 762,472 188,663
Income before
minority interest 3,644,470 7,411,576 3,452,273
Minority interest (572,631) (4,133,011) (2,094,962)
Net income 3,071,839 3,278,565 1,357,311
Preferred stock dividends 182,892 237,910 227,357
Net income applicable to
common stockholders $2,888,947 $3,040,655 $1,129,954
Earnings per share:
Basic earnings per share $ 0.24 $ 0.43 $0.16
Diluted earnings per share $ 0.24 $ 0.42 $0.16
Weighted average number of
common shares outstanding:
Basic 11,874,190 7,122,170 7,078,949
Diluted 11,878,474 7,269,769 7,113,265
The accompanying notes to consolidated financial statements are an integral part of these statements.
This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties or other factors which may cause actual results, performance, or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. For more complete information concerning factors that could affect the Company’s results, reference is made to the Company’s registration statements, reports, or other documents filed with the Securities and Exchange Commission.
For more information contact Rica Foods at (305) 477-1408, or email to mmarenco@ricafoods.com and rpiedra@ricafoods.com.
