RICA FOODS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
September 30, 2003 and 2002
2003 2002
Assets:
Current assets:
Cash and cash equivalents $3,343,255 $2,728,293
Short-term investments 2,469,301 2,492,266
Notes and accounts receivable 17,760,056 15,925,710
Due from related parties 1,415,821 1,429,847
Inventories 14,132,819 14,145,070
Deferred income taxes 255,064 417,352
Prepaid expenses 742,984 782,826
Total current assets 40,119,300 37,921,364
Property, plant and equipment 36,782,594 39,627,144
Long-term receivables-trade 627,831 901,009
Long-term investments 3,784,470 4,109,309
Other assets 7,782,744 6,564,407
Goodwill 1,555,828 1,723,414
Total assets $90,652,767 $90,846,647
Liabilities and Stockholders' Equity:
Current liabilities:
Accounts payable $17,195,317 $ 18,975,032
Accrued expenses 3,320,497 3,428,707
Notes payable 36,547,238 17,074,336
Current portion of long-term debt 3,978,580 8,190,702
Due to stockholders 51,872 --
Total current liabilities 61,093,504 47,668,777
Long-term debt, net of current portion 6,727,905 16,018,388
Deferred income taxes 2,101,856 2,124,450
Total liabilities 69,923,265 65,811,615
Minority interest 1,336,445 1,336,445
Commitments and contingencies
Stockholders' equity:
Common stock 12,865 12,865
Preferred stock 2,216,072 2,216,072
Additional paid-in capital 25,800,940 25,800,940
Accumulated other comprehensive loss (15,586,903) (12,206,661)
Retained earnings 12, 723,806 13,654,202
25,166,780 29,477,418
Less:
Due from stockholders (5,490,329) (5,495,437)
Treasury stock, at cost (283,394) (283,394)
Total stockholders' equity 19,393,057 23,698,587
Total liabilities and stockholders' equity $90,652,767 $90,846,647
RICA FOODS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
Years ended September 30, 2003, 2002 and 2001
2003 2002 2001
Sales $127,904,718 $130,665,439 $127,336,366
Cost of sales 91,453,513 87,487,065 86,840,951
Gross profit 36,451,205 43,178,374 40,495,415
Operating expenses:
General and
administrative 12,856,723 14,054,980 14,549,382
Selling 19,094,306 19,215,331 19,464,459
Amortization of
goodwill -- -- 787,535
31,951,029 33,270,311 34,801,376
Income from operations 4,500,176 9,908,063 5,694,039
Other expenses (income):
Interest expense 4,536,841 4,662,341 4,638,878
Interest income (1,586,920) (1,501,963) (1,182,587)
Foreign exchange
loss, net 2,978,590 3,298,051 2,319,389
Miscellaneous, net (600,114) (730,610) (1,269,231)
5,328,392 5,727,819 4,506,449
Income (loss) before
income taxes, minority
interest and
extraordinary items (828,221) 4,180,244 1,187,590
Extraordinary item - in
gain insurance
reimbursement 304,760 -- --
Income (loss) before
income taxes and
minority interest (523,461) 4,180,244 1,187,590
Income tax expense
(benefit) 206,475 1,041,596 (390,833)
Income (loss) before
minority interest (729,936) 3,138,648 1,578,423
Minority interest 68,975 75,959 77,293
Net income (loss) (798,911) 3,062,689 1,501,130
Preferred stock dividends 131,485 145,398 152,346
Net income (loss)
applicable to common
stockholders $(930,396) $2,917,291 $1,348,784
Basic earnings (losses)
per share $(0.07) $ 0.23 $ 0.11
Diluted earnings
(losses) per share $(0.07) $ 0.23 $ 0.11
Basic weighted average
number of common shares
outstanding 12,811,469 12,811,469 12,810,021
Diluted weighted average
number of common shares
outstanding 12,811,469 12,811,469 12,810,021
RICA FOODS, INC. AND SUBSIDIARIES
Consolidated Statements of Cash Flows
Years ended September 30, 2003, 2002 and 2001
2003 2002 2001
Cash flows from operating
activities:
Net income (loss) $ (798,911) $3,062,689 $1,501,130
Adjustments to reconcile
net income (loss) to net
cash provided by
operating activities:
Depreciation and
amortization 4,542,469 5,078,259 4,307,654
Production poultry 3,531,655 3,463,403 3,262,770
Uncollected sale
of equipment 63,588 365,072 --
Allowance for inventory
obsolescence 71,958 139,340 17,428
Amortization of goodwill -- -- 787,535
Derivative unrealized
loss (114,823) (96,989) --
Gain on sale of
productive assets (44,825) (227,557) (579,298)
Deferred income tax
benefit 108,483 (78,471) (412,854)
Provision for doubtful
accounts 308,765 449,598 122,150
Minority interest 68,975 75,959 77,293
Changes in operating
assets and liabilities:
Notes and trade
receivables (2,133,231) (4,534,814) (1,462,022)
Inventories (3,591,361) (4,910,227) (1,721,099)
Prepaid expenses 180,809 211,142 (23,059)
Accounts payable (1,785,210) 4,530,138 (1,716,183)
Accrued expenses (240,011) (489,080) 55,129
Long-term
receivables-trade 195,046 (378,872) 4,133
Net cash provided
by operating activities 363,376 6,659,590 4,220,707
Cash flows from investing
activities:
Short-term investments 22,965 (1,640,361) (765,349)
Additions to property,
plant and equipment (5,321,399) (4,996,703) (8,403,574)
Increase in long-term
investments (79,998) (186,731) (281,858)
Proceeds from
sales/retirement of
productive assets 1,074,094 4,145,084 1,205,870
Increase in other
assets (2,519,252) (3,778,447) (559,744)
Net cash used in
investing activities (6,823,590) (6,457,158) (8,804,655)
Cash flows from financing
activities:
Preferred stock cash
dividends (200,459) (221,357) (229,639)
Short-term financing:
New loans 41,013,389 26,507,366 21,958,360
Payments (20,855,551) (27,664,430) (16,601,868)
Long-term financing:
New loans 1,793,455 6,152,158 7,292,955
Payments (15,629,818) (10,101,843) (6,390,382)
Deferred debt costs 121,001 22,043 24,444
Common stock issued -- -- 40,000
Treasury stock acquired -- (15,000) --
Due from stockholders
and related party 51,872 913,203 (2,993,429)
Net cash provided by
(used in) financing
activities 6,293,889 (4,407,860) 3,100,441
Effect of exchange
rate changes on cash
and cash equivalents 781,287 2,012,951 2,147,741
Increase (decrease) in
cash and cash equivalents 614,962 (2,192,577) 664,234
Cash and cash equivalents
at beginning of year 2,728,293 4,920,870 4,256,636
Cash and cash equivalents
at end of year $ 3,343,255 $2,728,293 $4,920,870
Supplemental disclosures
of cash flow information:
Cash paid during
year for:
Interest $5,795,125 $4,911,103 $5,533,017
Income taxes $650,524 $283,758 $209,186
Supplemental schedule
of non-cash investing
activities:
Benefits for Chief Executive
Officer $382,315 $275,411 $ --