DOBBS FERRY, N.Y. -- July 24, 1996 -- Finger/Matrix
Inc. (NASDAQ EBB:FINX), an electronic fingerprinting pioneer that
exited Chapter 11 bankruptcy a year ago under new management,
Wednesday reported that exercise of warrants by stockholders and
other investments resulted in substantial improvement in its
financial condition during its second fiscal quarter ended March 31,
1996.
Thomas T. Harding, president and chief executive officer, said
current assets more than trebled during the period while current
liabilities declined, leaving the current ratio at 1.22 to one and
reversing the Dec. 31 ratio of one to 2.77.
The company also moved from a negative net worth on Dec. 31 of
$806,902 to a positive figure of $426,159 on March 31, Harding said.
Cash increased from $406,126 on Dec. 31, to $1,367,433 at the end of
the March quarter.
The company recorded no sales during the period, since its major
electronic fingerprinting systems, all completely re-engineered to
embody its newest patented technology, are just being introduced to
the marketplace this month.
They are being shown for the first time at the International
Association for Identification exhibition July 22-25 in North
Carolina. Aggressive marketing of these systems both here and
abroad will begin in the current quarter, Harding said.
CONTACT: Molesworth Associates Inc.
Gordon Molesworth, 520/625-0035
OKLAHOMA CITY, OK -- July 24, 1996 -- Foodbrands
America, Inc. (NYSE: FDB) today announced results for the second
quarter and six months of fiscal 1996, ended June 29, 1996.
Sales increased 37% in the second quarter to $200.7 million from
$146.6 million reported in the same period last year. Income from
continuing operations for the second quarter was $8.7 million or
$0.70 per share. These amounts include a tax benefit from the
reduction of the deferred tax valuation allowance of $6.7 million.
Excluding the tax benefit, earnings from continuing operations were
$2.0 million, or $0.16 per share, compared to $1.9 million, or $0.16
per share, reported in the second quarter of 1995. Net income for
the second quarter was $3.7 million, or $0.29 per share, and
includes an extraordinary loss of $5.1 million, net of taxes,
incurred with the early extinguishment of debt associated with the
debt refinancing completed during the quarter. This compares to a
net loss in the second quarter of fiscal 1995 of $38.4 million, or
$3.07 per share, related primarily to the loss on the disposal of
the Company's Retail Division in May of 1995. Operating income in
the second quarter was $11.4 million compared to $7.8 million in the
second quarter of 1995. During the second quarter, the Company
determined that a valuation allowance established against its
deferred tax asset relating primarily to the Company's ability to
utilize its net operating loss carry forwards (NOLs) in future
years, was no longer appropriate and was therefore reduced.
According to Fresh Start Reporting, the tax benefit associated with
pre-reorganization NOLs was used to eliminate excess reorganization
value or bankruptcy goodwill and other intangible assets arising
from bankruptcy. The remaining $6.7 million resulting from post
reorganization NOLs was recognized as a tax benefit on the Company's
income statement.
For the six months ended June 29, 1996, sales increased 35% to
$386.7 million from the $286.0 million reported in the first six
months of fiscal 1995. Income from continuing operations, including
the previously discussed tax benefit, was $10.8 million, or $0.87
per share, for the six month period. Excluding the tax benefit,
earnings from continuing operations were $4.1 million or $0.33 per
share compared to $3.7 million, $0.30 per share, reported in the
same period of the prior year. Net income increased to $5.8
million, or $0.46 per share, from a loss of $38.9 million, or $3.12
per share reported in the first six months of fiscal 1995. Included
in 1995's net loss was the loss from the operations and the disposal
of the Company's Retail Division of approximately $42.6 million.
Operating income was $22.8 million compared to $15.5 million in the
first six months of the prior year.
Sales and operating income increases in both the quarter and six
month periods were a result of the acquisitions of KPR Holdings,
L.P. and TNT Crust, Inc. completed in December 1995. The increase
in sales was also attributable to growth in the Company's existing
businesses resulting from an increase in unit volume and higher
product pricing due to an increase in raw material costs. The
abrupt increase in the price the Company pays for certain raw
material resulted in lower earnings for its Deli and Food Service
Divisions.
Commenting on second quarter and six month results, R. Randolph
Devening, Chairman, President and Chief Executive Officer, stated,
"While business fundamentals in the Company's Divisions are strong,
the rapid increase in our raw material costs prevented the earning's
progression we were targeting. Higher sales volumes, strict cost
containments, and increases in product pricing offset much of the
pressure on margins. Raw material risk management strategies were
in place, but could only mitigate part of the adverse impact of the
dramatic increase in raw material costs. As we move into the second
half of the year, the unsettled raw material markets will continue
to apply margin pressure. We have modified our pricing and
implemented other strategies to help reduce the impact. "
Mr. Devening continued, "Operating income, in the second
quarter, was negatively impacted at the Specialty Brands Division by
additional charges resulting from ineffective promotion programs,
which were subsequently eliminated by the Division's new sales
management team. Operating income was benefited during the quarter
by the elimination of accruals no longer required due to the
settlement of certain patent litigation and second quarter asset
dispositions. While progress continues on the repositioning of the
Specialty Brands Division, performance is not currently at desired
levels and we anticipate that it will require most of the year
before the programs initiated to boost momentum are fully reflected
in the Division's results."
In a separate announcement, the Company stated that it has
acquired a new production facility in Concordia, Missouri to meet
the growing demand for specialty ham products marketed by both the
Food Service and Deli Divisions. The facility will be in startup
phase during the third quarter and in full production during the
fourth quarter of 1996.
Foodbrands America produces, markets and distributes frozen and
refrigerated products targeted to growth segments of the foodservice
market. The Company's products include pepperoni, beef and pork
toppings as well as partially baked pizza crusts, marketed to the
pizza industry, appetizers, Mexican and Italian foods, sauces,
soups, and side dishes, and branded and processed meat products.
Customers include large multi-unit food chains, major foodservice
distributors, warehouse clubs and grocery store delicatessens.
FOODBRANDS AMERICA, INC.
Condensed Consolidated Statement of Operations - Unaudited
(in thousands, except per share figures)
Three Months Ended Six Months Ended
6/29/96 7/1/95 6/29/96 7/1/95
Net sales $200,710 $146,582 $386,707
$285,994
Cost of sales 160,660 113,995 307,348
222,242
Gross profit 40,050 32,587 79,359
63,752
Operating expenses:
Selling 20,454 17,267 38,734 33,736
General and
administrative 6,446 6,484 14,370 12,345
Amortization of
intangible assets 1,723 1,081 3,470 2,162
Total operating expenses 28,623 24,832 56,574 48,243
Operating income 11,427 7,755 22,785
15,509
Other income (expense):
Interest and
financing costs (7,662) (4,352) (15,081) (8,707)
Other, net (214) (175) (396) (332)
Income from continuing operations
before income taxes 3,551 3,228 7,308 6,470
Income tax provision
(benefit) (5,156) 1,296 (3,521)
2,746
Income from continuing
operations 8,707 1,932 10,829 3,724
Discontinued operations:
Income (loss) from operations of
the Retail Division
(less applicable
income tax benefit
1995) -- (1,766) -- (4,121)
Loss on disposal of
the Retail Division
(plus applicable income
tax expense
of $10,300) -- (38,526) -- (38,526)
Extraordinary loss - early
extinguishment of
debt (less applicable
income tax benefit) (5,051) -- (5,051)
--
Net income (loss) $ 3,656 $ (38,360) $ 5,778
$(38,923)
Earnings (loss) per share
- primary and fully diluted:
Income from
continuing operations $ 0.70 $ 0.16 $ 0.87 $
0.30
Loss from discontinued
operations -- (0.14)
-- (0.33)
Loss on disposal of
discontinued operations -- (3.09)
-- (3.09)
Extraordinary loss -
early extinguishment
of debt (0.41) -- (0.41) --
Net income (loss) $ 0.29 $ (3.07) $ 0.46 $
(3.12)
Weighted average number
of common and
common equivalent shares outstanding
- primary and fully diluted 12,471 12,448 12,470
12,448
CONTACT: Bryant Bynum
Vice President - Finance,
Treasurer and Secretary
405/879-4100
or
Naomi Rosenfeld/Stefanie King
Media contact: Stan Froelich
Morgen-Walke Associates
212/850-5600