CHICAGO, Nov. 9 /PRNewswire-FirstCall/ -- For the third quarter
ended September 30, 2007, Vita Food Products, Inc. (AMEX:VSF) today
announced a consolidated net loss of approximately $(812,000), or
approximately $(0.11) per share, compared to net loss of
approximately $(725,000) or approximately $(0.15) per share in the
third quarter of 2006. The Vita Seafood segment, which is primarily
engaged in the processing and sale of herring products and smoked
salmon products, experienced a net loss of approximately $(296,000)
compared to net loss of approximately $(291,000) in the third
quarter of 2006. The Company's other business segment, Vita
Specialty Foods, which is engaged in the processing and sale of
salad dressings, barbeque sauces, marinades, honey and other
specialty food products experienced a net loss of approximately
$(516,000) in the third quarter of 2007 compared to a net loss of
approximately $(434,000) in the third quarter of 2006. This decline
for Vita Specialty Foods was primarily attributable to a $500,000
reserve for obsolete and slow moving inventory. The extra reserves
resulted from a robust review of this segment's products and
management decisions to discontinue certain low performing business
products. This reserve expense was partially offset by a reduction
of approximately $100,000 in Selling, Marketing and Administration
expenses. Consolidated net sales for the third quarter of 2007 were
approximately $11,834,000, compared with approximately $12,418,000
in the third quarter of 2006. Vita Seafood's net sales for the
third quarter of 2007 were approximately $5,849,000 compared to
approximately $6,503,000 from the prior year third quarter,
representing a 10.1% decrease. Vita Specialty Food's net sales for
the third quarter of 2007 were approximately $5,985,000 compared to
approximately $5,915,000 for the prior year third quarter,
representing a 1.2% increase. The increase was a result of higher
sales of brand named licensed sauce products offset by a reduction
in sales of salad dressings and honey products. Consolidated gross
margin for the third quarter of 2007 decreased to approximately
18.2% from approximately 19.4% in the third quarter of 2006
primarily as a result of the reserve for obsolete and slow moving
inventory. Nine-Month Results For the nine months ended September
30, 2007, the Company had a consolidated net loss of approximately
$(599,000) or $(0.10) per share, compared to a net loss of
approximately $(653,000), or $(0.14) per share for the nine months
ended September 30, 2006, an improvement of approximately $54,000
or $.04 per share. The Vita Seafood segment had a net loss of
approximately $(277,000) compared to a net loss of approximately
$(481,000) in 2006, an improvement of approximately $204,000. This
improvement for the Vita Seafood segment was primarily the result
of reduced operating expenses. Vita Specialty Food's net loss was
approximately $(322,000) compared to $(172,000) in 2006, a decrease
of approximately $150,000. This was primarily a result of the
reserve for obsolete and slow moving inventory which was partially
offset by an increase in the sales of sauces, and decreased salad
dressing sales net of costs. Consolidated net sales for the nine
months ended September 30, 2007 were approximately $36,353,000,
compared to approximately $36,915,000 for the nine months ended
September 30, 2006, representing a decrease of approximately
$(562,000) or (1.5)%. Vita Seafood's net sales were approximately
$17,809,000 for the nine months ended September 30, 2007, compared
with approximately $19,657,000 for the nine months ended September
30, 2006, representing a decrease of approximately $(1,848,000) or
(9.4)%. Vita Specialty Food's net sales were approximately
$18,544,000 for the nine months ended September 30, 2007, compared
with approximately $17,258,000 for the nine months ended September
30, 2006, representing an increase of approximately $1,286,000
million or 7.4%. The largest contributing factor to this increase
was sales of sauces which were partially offset by decreased salad
dressing sales. Consolidated gross margin for the nine months of
2007 increased to approximately 26.7% from approximately 25.9%. The
improved margin was a result of cost reductions at both business
segments, offset by the reserve for obsolete and slow moving
inventory at Vita Specialty Foods. The Selling, Marketing and
Administration expenses increased by $116,000 for the nine months
ended September 30, 2007 over the same period ended September 30,
2006. This was the result of increased distribution cost and
marketing programs related to the introduction of sauces. The Vita
Seafood division is a U.S. leader in the herring and retail
packaged salmon markets, and is engaged in several other food
segments, including cream cheese, cocktail sauce, tartar sauce and
horseradish. The Company markets and sells these items under the
Vita(R), Elf(R) and Grand Isle(R) brands. More than 95% of Vita
Seafood's sales are in kosher foods. Vita Specialty Foods, Inc.,
the Company's wholly owned subsidiary, markets and sells honey,
salad dressings, barbecue sauces and other meat enhancements and
salsas. The Company's common stock is currently traded on the
American Stock Exchange under the ticker symbol VSF. However, the
Company has previously announced its intention to delist its common
stock from the American Stock Exchange and deregister its common
stock under the Securities Exchange Act of 1934, as amended, after
carefully considering the advantages and disadvantages of
continuing registration and listing. The Company will file a Form
25, delisting its shares, on November 16, 2007 and a Form 15,
deregistering them, on November 26, 2007, the effective date of
delisting. The Company expects, but cannot guaranty, that its
common stock will be quoted on the Pink Sheets after it delists
from the American Stock Exchange. This release contains
forward-looking statements about the Company's future growth,
profitability, introduction of new product and, competitive
position. Any such statements are subject to risks and
uncertainties, including changes in economic and market conditions,
industry competition, raw material prices, the success of new
product introductions, management of growth and other risks noted
in the Company's filings with the Securities and Exchange
Commission. Readers are cautioned not to place undue reliance on
forward-looking statements, which reflect management's analysis
only as of the date hereof. VITA FOOD PRODUCTS, INC. Condensed
Consolidated Statement of Operations (in thousands, except per
share data) (unaudited) Three Months Ended Nine Months Ended
September 30, September 30, 2007 2006 Change 2007 2006 Change Net
sales $11,834 $12,418 (5%) $36,353 $36,915 (2%) Cost of goods sold
9,677 10,011 (3%) 26,635 27,359 (3%) Gross margin 2,157 2,407 (10%)
9,718 9,556 2% Selling and administrative expenses Selling,
marketing & distribution 2,275 2,362 (4%) 6,806 6,665 2%
Administrative 927 923 0% 2,984 3,008 (1%) Total selling and
administrative expenses 3,202 3,285 (3%) 9,790 9,673 1% Operating
loss (1,045) (878) 19% (72) (117) (38%) Interest expense 307 331
(7%) 926 971 (5%) Income before income taxes (1,352) (1,209) 12%
(998) (1,088) (8%) Income tax benefit (540) (484) 12% (399) (435)
(8%) Net loss $(812) $(725) 12% $(599) $(653) (8%) Basic loss per
common share $(0.11) $(0.15) $(0.10) $(0.14) Diluted loss per share
$(0.11) $(0.15) $(0.10) $(0.14) Weighted average common shares
outstanding: Basic 7,367 4,904 5,766 4,598 Diluted 7,367 4,904
5,766 4,598 DATASOURCE: Vita Food Products, Inc. CONTACT: Clifford
Bolen, President and Chief Executive Officer of Vita Food Products,
Inc., +1-312-738-4500,
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