Tasty Baking Company (NYSE:TBC) today announced financial results for the third quarter and thirty-nine weeks ended September 23, 2000.
For the third quarter, gross sales were $60.6 million, compared with $53.8 million last year, an increase of 12.7%. Gross sales, less discounts and allowances, resulted in net sales of $39.9 million, compared with $35.6 million reported last year, an increase of 11.8%. Net income for the third quarter increased 92% to $1.4 million, compared with $724,000 reported for the same period last year. Net income per diluted share doubled to $0.18 compared with $0.09 per diluted share reported during the prior year’s third quarter.
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For the thirty-nine weeks ended September 23, 2000, gross sales were $184.6 million, compared with $167.7 million last year, an increase of 10.1%. Gross sales, less discounts and allowances, resulted in net sales of $121.9 million, compared with $112.0 million reported for the same period last year, an increase of 8.9%. Net income was $5.6 million, or $0.72 per diluted share, compared with $2.4 million, or $0.31 per diluted share reported during the comparable period in 1999. However, as previously reported, in the first quarter 1999 the Company incurred charges for a route restructure and change in accounting principle for startup costs, which combined, represent $0.10 per diluted share. Therefore, on an operating basis, net income per diluted share for the thirty-nine weeks ended September 25, 1999, was $0.41. The net income per diluted share of $0.72 for the thirty-nine weeks ended September 23, 2000, represents a 76% increase over the operating results for the comparable period in 1999.
Carl S. Watts, Chairman and Chief Executive Officer, commented, “We are extremely pleased with the results for the third quarter 2000. This is the fourth consecutive quarter of strong earnings and sales growth, which continues to fuel our turnaround. Every phase of our business continues to perform strongly and according to plan. Route sales operations showed a sales dollar increase of 10.6%, while national sales delivered a 24.2% increase for the quarter. Also of specific note was our increase in units of 14%. I believe it is important to note that during the quarter, particularly in our route areas, we were also positively affected by relatively cooler weather this summer.”
Mr. Watts noted, “We continue to see positive results from productivity as we are implementing the second phase of our plant modernization. Operating expenses remain nicely in line with budget despite substantial increases in energy costs during the quarter.”
Mr. Watts continued, “We are pleased with the progress at our Oxford facility. Our multi-serve Classic Baked Goods product line is performing up to expectation, as we are in the process of putting finishing touches on this product line expansion. In addition, our relationship with Wal-Mart continues to grow as we will be adding two new products to the Wal-Mart product category–Donut Holes in November and Mini Donuts in January.”
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By GlobalData“We are extraordinarily pleased with the results of our national sales effort, particularly on the West Coast, and we look forward to strong results not only in California but in other areas around the continental United States as well,” he added.
Mr. Watts concluded, “Looking ahead, we believe competition will remain very strong, however, we are optimistic that the new programs we will be introducing in the fourth quarter will allow us to continue with our progress and will set the stage for 2001.”
Except for historical information contained herein, the matters discussed are forward-looking statements (as such term is defined in the Securities Act of 1933, as amended) and because such statements include risks and uncertainties, actual results may differ materially from those forward-looking statements.
TASTY BAKING COMPANY AND SUBSIDIARIES
CONSOLIDATED HIGHLIGHTS OF OPERATING RESULTS
(Unaudited)
13 Weeks Ended 39 Weeks Ended
-------------------------- ---------------------------
9/23/00 9/25/99 9/23/00 9/25/99
----------- ----------- ------------ ------------
Gross sales $60,571,793 $53,765,048 $184,618,949 $167,680,647
Less
discounts
and
allowances (20,716,010) (18,131,163) (62,701,448) (55,690,207)
----------- ----------- ------------ ------------
Net sales 39,855,783 35,633,885 121,917,501 111,990,440
----------- ----------- ------------ ------------
Cost of
sales 26,154,324 23,344,953 78,530,920 71,046,258
Depreciation 1,900,398 1,726,780 5,582,234 5,418,094
Operating
expenses 9,595,653 9,535,289 28,903,436 30,936,714
Restructure
charge (a) -- -- -- 950,000
Interest
expense
and other
(income),
net 65,427 15,251 166,220 (172,897)
----------- ----------- ------------ ------------
37,715,802 34,622,273 113,182,810 108,178,169
----------- ----------- ------------ ------------
Income
before
provision
for
income
taxes 2,139,981 1,011,612 8,734,691 3,812,271
Provision
for income
taxes (748,924) (287,571) (3,096,725) (1,170,150)
----------- ----------- ------------ ------------
Income
before
cumulative
effect of a
change in
accounting
principle 1,391,057 724,041 5,637,966 2,642,121
Cumulative
effect of a
change in
accounting
principle
for start-
up costs -- -- -- (204,709)
----------- ----------- ------------ ------------
Net income $1,391,057 $724,041 $5,637,966 $2,437,412
=========== =========== ============ ============
Average
number of
shares
outstanding:
Basic 7,845,341 7,823,546 7,833,294 7,824,782
Diluted 7,886,859 7,847,241 7,852,424 7,878,804
Per share of
common
stock:
Income
before
cumulative
effect of a
change in
accounting
principle:
Basic and
Diluted $0.18 $0.09 $0.72 $0.34
Cumulative
effect of a
change in
accounting
principle
for start-
up costs:
Basic and
Diluted -- -- -- (0.03)
----- ----- ----- -----
Net income:
Basic and
Diluted $0.18 $0.09 $0.72 $0.31
===== ===== ===== =====
Cash
Dividend $0.12 $0.12 $0.36 $0.36
===== ===== ===== =====
(a) During the first quarter of 1999, the company incurred a $950,000
restructuring charge related to its decision to discontinue route
territories in those areas that were not achieving appropriate
levels of profitability. The after tax effect of this charge was
$570,000 or $.07 per fully diluted share.
