Galaxy Nutritional Foods Company (AMEX:GXY), a leading producer of delicious and nutritious health-promoting dairy and dairy related alternatives for the retail, foodservice and industrial markets, today announced that due to several unforeseen events during the final days of 2000, third quarter revenues will be less than previously anticipated.
The Company announced on December 6, 2000 that it expected sales for the third quarter of fiscal 2001 to be between $13.1 and $14.1 million. Due to difficulties with existing equipment, new product sales deferrals and bad weather impacting delivery, the Company now anticipates that net revenues for the third quarter of fiscal 2001 will be approximately $11.2 to $11.5 million, and that fully-taxed earnings per share will be approximately $0.02 to $0.03. In the three-month period ended December 31, 1999, Galaxy’s sales were $10.1 million, and fully -taxed earnings per share were $0.04. Galaxy plans to announce full third quarter results the week of February 5, 2001.
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Galaxy also announced that its fiscal 2001 fourth quarter sales would be impacted by delayed installation and assimilation of its new individually-wrapped slice manufacturing equipment. Individually wrapped cheese slices account for approximately 70% of the Company’s total sales. On December 6, 2000, Galaxy announced that it expected sales for the fourth quarter of fiscal 2001 to be between $14.5 and $15.5 million. Fourth quarter sales are now anticipated to be between $13.2 and $14.2 million, and fully-taxed earnings per share are expected to be $0.05 to $0.06. In the fourth quarter ended March 31, 2000, Galaxy sales were $11.2 million, and pro forma fully-taxed earnings per share were $0.01.
Keith Ewing, Galaxy’s Chief Financial Officer, commented, “Third quarter sales fell short of our expectations as a result of a combination of factors that were essentially beyond our control. Our inventory levels are currently very low, and equipment failures and delays have increased our order backlog. The fourth quarter sales estimate was revised downward due to production challenges with our new equipment, which will be resolved by the end of this month, allowing us to operate at full capacity for the last two months of the quarter. The long-term sales outlook reflects the addition of several new customers we secured in the beginning of the fourth quarter, which will generate recurring revenue that should benefit the end of the fourth quarter and fiscal year 2002.”
For the fiscal year ending March 31, 2002, the Company expects sales of approximately $66.5 to $70.5 million, and fully-taxed earnings per share of $0.34 to $0.38. Fiscal year 2001 sales estimates are between $47.5 and $48.5 million, with fully-taxed earnings per share expected to be approximately $0.14 to $0.17.
About Galaxy Nutritional Foods, Inc.
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By GlobalDataThe Company’s plant-based products are low or no fat (no saturated fat), have no cholesterol and no lactose and contain more vitamins and minerals than conventional dairy products. Galaxy products, available at health food stores and grocers, are part of the nutritional or functional food category, the fastest growing segment of the retail food market. Galaxy brand names include Veggie Milk(TM), Veggie Slices(TM), formagg®, Soyco®, Soymage®, Wholesome Valley(TM), and Lite Bakery®. For more information, please visit the Company’s web site at www.galaxyfoods.com.
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. Readers are cautioned not to place undue reliance on those forward-looking statements which speak only as of the date hereof. The company undertakes no obligation to release publicly any revisions to these forward-looking statements to reflect events or circumstances after the date hereof or to reflect unanticipated events or developments.
