Vita Foods Reports Second Quarter 2006 Results
August 11 2006 - 4:59PM
PR Newswire (US)
CHICAGO, Aug. 11 /PRNewswire-FirstCall/ -- For the second quarter
ended June 30, 2006, Vita Food Products, Inc. (AMEX:VSF) today
announced a consolidated net income of $15,000, or $0.00 per share,
compared to net income of $51,000 or $0.01 per share in the second
quarter of 2005. The Vita Seafood segment, which is primarily
engaged in the processing and sale of herring products and cured
and smoked salmon products, experienced a net loss of $(198,000)
compared to net loss of $(276,000) in 2005. This improvement for
the Vita Seafood segment primarily arose as a result of increased
sales volume and improved labor and overhead efficiencies that were
partially offset by higher sales deductions and increased raw
material costs. The Company's other business segment, Vita
Specialty Foods ("VSF"), which is engaged in the processing and
sale of salad dressings, marinara sauces, cooking sauces, honey and
other specialty food products, offset Vita Seafood's net loss with
net income of $214,000 in the second quarter of 2006 compared to
net income of $327,000 in the second quarter of 2005. This decline
for VSF was primarily attributable to a change in the product mix
sold during the current period. In the current quarter a larger
amount of lower margin products were sold coupled with a smaller
percentage of higher margin products which, in total, was partially
offset by reduced selling and administrative expenses. Consolidated
net sales for the second quarter of 2006 were $11.8 million,
compared with $10.2 million in the second quarter of 2005. Vita
Seafood's net sales for the second quarter of 2006 were $5.9
million compared to $4.8 million from the prior year quarter,
representing a 23.4% increase. The increase was significantly due
to major customers increasing their orders for salmon products.
VSF's net sales for the second quarter were $6.0 million compared
to $5.4 million for the prior year quarter, representing a 10.3%
increase. The increase was a result of higher sales of brand named
licensed products partially offset by a decline in sales of VSF's
own branded products. Consolidated gross margin for the quarter
decreased to 28.5% from 34.2% in the prior year quarter primarily
as a result of the changes discussed above. "We are pleased with
the results of the Seafood segment which continued reporting
improved results from the last year quarter and year to date
results. The Specialty Foods segment's performance lagged somewhat
but, is expected to show improved results in the third and fourth
quarters," said Steve Rubin, the Company's Chairman and member of
the Office of the Chief Executive. "We continue to affirm our
earlier guidance for 2006 of between $0.20 and $0.24 per share for
2006." Six-Month Results For the six months ended June 30, 2006,
the Company had a consolidated net income of $72,000 or $0.02 per
share, compared to a net loss of $(206,000), or $(0.05) per share
for the same period in 2005, an improvement of $278,000 or $0.07
per share. The Vita Seafood segment had a net loss of $(190,000)
compared to a net loss of $(571,000) in 2005, an improvement of
$381,000 or 66.8%. VSF's net income was $262,000 compared to
$365,000 in 2005, a decline of $103,000 or 28.3%. Consolidated net
sales for the six months were $24.6 million, compared with $21.1
million for the six months ended June 30, 2005, representing an
increase of $3.6 million or 16.9%. Vita Seafood's net sales were
$13.3 million for the six months, compared with $10.7 million for
the same period in 2005, representing an increase of $2.5 million
or 23.6% for the six- month period, largely a reflection of the
retail salmon volume. VSF's net sales were $11.3 million for the
six months, compared with $10.3 million for the same period in
2005, representing an increase of $1.0 million or 9.9%. The largest
contributing factor to this increase were sales of brand named
licensed products. 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, meat enhancements and
salsas. The company markets and sells these items under the
Virginia Brand(R), Oak Hill Farms(R), Scorned Woman(R), Jim Beam(R)
brands. For more information visit http://www.vitafoodproducts.com/
. The common stock of Vita Food Products, Inc. is currently traded
on the American Stock Exchange and Chicago Stock Exchange under the
ticker symbol VSF. This release contains forward-looking statements
about the Company's future growth, profitability, customers and
competitive position. Any such statements are subject to risks and
uncertainties, including but not limited to: -- the potential loss
of large customers or accounts; -- downward product price
movements; -- raw material availability and prices; -- changes in
energy costs; -- the success of new product introductions; --
integration and management of acquired businesses; -- changes in
economic and market conditions; -- industry competition; -- the
seasonality of Vita's business; -- the Company's ability to attract
and retain key personnel; -- the potential impact of claims and
litigation; and -- the dietary habits and trends of the general
public. - - TABLES FOLLOW - - VITA FOOD PRODUCTS, INC. Condensed
Consolidated Statement of Operations (in thousands, except per
share data) (unaudited) Three Months Six Months Ended Ended Jun 30,
Jun 30, Jun 30, Jun 30, 2006 2005 Change 2006 2005 Change Net sales
$11,828 $10,158 16% $24,617 $21,055 17% Cost of goods sold 8,456
6,679 27% 17,348 14,375 21% Gross margin 3,372 3,479 (3%) 7,269
6,680 9% Selling and administrative expenses Selling, marketing
& distribution 2,097 2,082 1% 4,423 4,267 4% Administrative 934
1,073 (13%) 2,085 2,307 (10%) Total 3,031 3,155 (4%) 6,508 6,574
(1%) Operating profit 341 324 5% 761 106 618% Interest expense 314
238 32% 640 449 43% Income (loss) before income taxes 27 86 (69%)
121 (343) 135% Income tax expense (benefit) 12 35 (66%) 49 (137)
136% Net income (loss) $15 $51 (71%) $72 $(206) 135% Earnings
(loss) per common share: Basic $- $0.01 (100%) $0.02 $(0.05) 140%
Diluted $- $0.01 (100%) $0.02 $(0.05) 140% Weighted average shares
outstanding: Basic 4,885 3,859 4,442 3,859 Diluted 4,939 3,884
4,479 3,859 DATASOURCE: Vita Food Products, Inc. CONTACT: Clifford
Bolen, Office of the Chief Executive, COO, CFO, of Vita Food
Products, Inc., +1-312-738-4500, Web site:
http://www.vitafoodproducts.com/
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