Gourmet Group, Inc. (OTCBB:GOUG) today reported financial results for its third quarter 2001, ended March 31, 2001, and commented on its business outlook and related corporate matters.
GOUG reported an unaudited basic per share operating loss of $.003 (or a total of $93,812), compared to a per share operating loss of $.012 (or a total loss of $277,894) for the comparable three month period ended March 31, 2000.
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GOUG also reported an increase in net sales of over 38% for such quarter (from $1,406,711 to $1,947.276), as well as an increase in gross profit percentage (over 3/4 of 1%) and a decrease (over 5.5%) in selling, general, and administrative costs.
Fredrick Schulman, Chairman and CEO of Gourmet Group, said: “The March quarter always represents a challenge to management, with expected seasoned softness in sales, together with anticipated increase in marketing and other overhead costs. The results of our third quarter show that our strategic initiatives to reduce negative results in this quarter are having meaningful impact.”
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GOURMET GROUP, INC., AND SUBSIDIARY
CONDENSED CONSOLIDATED BALANCE SHEETS
June 30, March 31,
2000 2001
———— ————
(Unaudited)
ASSETS
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By GlobalDataCURRENT ASSETS:
Cash and cash equivalents $ 73,629 $ 73,464
Trade accounts receivable, net 777,494 955,543
Receivable from majority stockholder 1,459 74,230
Inventories, net 546,788 615,542
Prepaid expenses and other current
assets 151,634 147,506
———— ————
Total current assets 1,551,004 1,866,285
PROPERTY AND EQUIPMENT, net 1,801,481 1,700,677
GOODWILL, net 2,798,800 2,680,124
OTHER ASSETS, net 457,816 445,201
———— ————
Total assets $ 6,609,101 $ 6,692,287
LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES:
Accounts payable $ 353,904 $ 676,055
Accrued expenses 303,412 334,608
Notes payable and current maturities
(See Note 3) 139,033 3,811,973
———— ————
Total current liabilities 796,349 4,822,636
LONG-TERM DEBT, less current portion 3,624,433 4,000
OTHER LONG-TERM LIABILITIES 164,549 104,078
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS’ EQUITY:
Common stock; $.001 par value;
50,000,000 shares authorized;
24,012,420 and 28,527,393 shares
issued and outstanding, respectively 24,012 28,527
Additional paid-in capital 3,348,563 3,402,639
Accumulated deficit (1,348,805) (1,669,593)
———— ————
Total stockholders’ equity 2,023,770 1,761,573
———— ————
Total liabilities and
stockholders’ equity $ 6,609,101 $ 6,692,287
GOURMET GROUP, INC., AND SUBSIDIARY
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Three Months Ended Nine Months Ended
March 31 March 31
——– ——–
2000 2001 2000 2001
—- —- —- —-
NET SALES $1,406,711 $1,947,276 $5,356,247 $6,191,671
COST OF SALES 1,055,951 1,447,065 3,681,896 4,301,713
———- ———- ———- ———-
GROSS PROFIT 350,760 500,211 1,674,351 1,889,958
SELLING, GENERAL AND
ADMINISTRATIVE 628,654 594,023 1,979,930 1,872,390
———- ———- ———- ———-
INCOME/(LOSS) FROM
OPERATIONS $ (277,894) $ (93,812) (305,579) 17,568
———- ———- ———- ———-
OTHER INCOME
(EXPENSES):
Interest expense (111,708) (122,342) (338,828) (384,596)
Accretion of
value of put
warrants (2,548) (13,257) (4,338) (31,494)
Other, net 16,669 55,406 27,673 77,734
———- ———- ———- ———-
(97,587) (80,193) (315,493) (338,356)
———- ———- ———- ———-
NET INCOME/(LOSS) $ (375,481) $ (174,005) $ (621,072) $ (320,788)
========== ========== ========== ==========
INCOME/(LOSS) PER
SHARE – BASIC $ (0.016) $ (0.006) $ (0.032) $ (0.012)
========== ========== ========== ==========
AVERAGE SHARES
OUTSTANDING – BASIC 23,612,098 28,527,393 19,688,801 27,262,409
========== ========== ========== ==========
Jardine Foods (www.jardinefoods.com) is the operating subsidiary of Gourmet Group, Inc. Jardine Foods, a 21 year-old company, is one of the foremost manufacturers of gourmet Texas – style foods (salsas, barbecue sauces, dips, condiments, pasta sauces, queso’s, chili mix and seasonings, hot sauces, marinades, spicy snacks, salad dressings, relishes, mustards, beverage mixes, jellies and preserves, gift boxes and gift baskets), distributing through various channels, including supermarkets, gourmet and gift stores, mail order catalogue, internet sales through www.jardinefoods.com, private label for other gourmet food retailers, institutional sales (including the largest theme amusement park in the country), and sales to international distributors. Jardine’s manufactures over 300 different products under various names including D.L. Jardine’s Special Edition, Buckaroo, Shotgun Willie’s, Dixie Dan’s, Sontava!, W.B. William’s, D.L. Jardino’s, 7-J Ranch, and Simple Times.
Forward-Looking Statements
Statements contained in this press release, which are not historical facts, are forward-looking statements. Such forward-looking statements are necessary estimates reflecting the best judgment of the party making such statements based upon current information and involve a number of risks and uncertainties. Forward-looking statements contained in this press release or in other public statements of the parties should be considered in light of those factors. There can be no assurances that such factors or other factors will affect the accuracy of such forward-looking statements.
