DALLAS, Nov. 10, 2000 (PRIMEZONE) -- Fresh America Corp. (Nasdaq:FRES), a major North American fresh produce distribution company, today reported a third quarter net loss applicable to common shareholders of $0.9 million or $0.16 per share on revenues of $138.5 million. The net loss includes an extraordinary gain from extinguishments of debts of $1.9 million or $0.36 per share. The Company's net loss applicable to common shareholders excluding the extraordinary items would have been $2.8 million or $0.52 per share. The Company incurred a net loss applicable to common shareholders of $11.4 million or $2.18 per share on revenues of $151.2 million for the same period a year ago. The 1999 loss included charges of $5.0 million associated with closed operations and $1.9 million of costs that were related to a terminated merger. The revenue decrease of $12.7 million is primarily attributable to the fourth quarter 1999 divestiture of some of the Company's direct food service distribution operations and the closure of the Company's market operation in Los Angeles, California.
For the nine-month period ended September 29, 2000, the Company reported a net loss applicable to common shareholders of $2.1 million or $0.40 per share on revenues of $444.7 million. The Company's net loss applicable to common shareholders excluding the extraordinary items noted above would have been $4.0 million or $0.76 per share. This compared to a net loss applicable to common shareholders of $9.0 million or $1.72 per share on revenues of $518.7 million for the same period a year ago.
"Reducing debt levels and improving our balance sheet have been primary areas of focus for Fresh America this year, along with improving our operating performance," commented Colon Washburn, Chief Executive Officer. "The Company has made tremendous progress on both fronts. Excluding the preferred stock issuance earlier this year, the Company's outstanding debt has been reduced by over $24 million during 2000 which includes an October debt payment of $3.7 million. The actions taken in late 1999 and earlier this year have greatly improved operating performance and cash flow. Additionally, we have begun to see positive results from our marketing initiatives aimed at attracting new program business that leverages our existing national distribution network. In the fourth quarter, we will begin to provide sourcing, logistical distribution and value-added services to a large, broadline foodservice cooperative."
Fresh America is an integrated food distribution management company that operates sixteen facilities located in Dallas and Houston Texas; Atlanta, Georgia; Panama City and Pensacola, Florida; Scranton and Wilkes-Barre, Pennsylvania; Richmond, Indiana; Chicago, Illinois; Phoenix and Nogales, Arizona; Los Angeles, California; and Toronto and Milton, Ontario, Canada.
This news release contains forward-looking statements that are subject to significant risks and uncertainties, including statements related to the future operating and financial performance of the Company. Although the Company believes that the expectations reflected in its forward-looking statements are reasonable, it can give no assurance that such expectations or any of its forward-looking statements will prove to be correct. Important risk factors that could cause actual results to differ materially from those reflected in the Company's forward-looking statements include the expiration of the agreement with its primary customer, risks associated with new business opportunities, volatility of produce prices and quality, the availability and costs of borrowed funds and covenant requirements of its lenders, the ability to refinance its existing bank facility and raise additional capital, general economic and market conditions, competition, dependence on key personnel and seasonality, as well as the risk factors and uncertainties disclosed in the Company's filings with the Securities and Exchange Commission.
FRESH AMERICA CORP. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
Quarter Ended Nine Months Ended
Sept. 29, Oct. 1, Sept. 29, Oct. 1,
2000 1999 2000 1999
Revenue $138,458 $151,220 $444,695 $518,749
Cost of sales 124,384 136,748 396,965 458,580
-------- -------- -------- --------
Gross profit 14,074 14,472 47,730 60,169
Operating expenses 14,727 31,624 46,804 69,928
-------- -------- -------- --------
Operating income (loss) (653) (17,152) 926 (9,759)
Other, net (principally
interest expense) (1,105) (1,611) (3,550) (3,996)
-------- -------- -------- --------
Loss before income
taxes (1,758) (18,763) (2,624) (13,755)
Income tax expense
(benefit) 743 (7,318) 947 (4,744)
-------- -------- -------- --------
Loss before extraordinary
items (2,501) (11,445) (3,571) (9,011)
Gain on extinguishments
of debts (1,905) -- (1,905) --
-------- -------- -------- --------
Net loss (596) (11,445) (1,666) (9,011)
Preferred dividends
and accretion 260 -- 438 --
-------- -------- -------- --------
Net loss applicable to
common shareholders $ (856) $(11,445) $ (2,104) $ (9,011)
======== ======== ======== ========
Basic loss per share:
Net loss before
extraordinary items $ (.52) $ (2.18) $ (.76) $ (1.72)
======== ======== ======== ========
Gain on extinguishments
of debts $ .36 -- $ .36 --
======== ======== ======== ========
Net loss $ (.16) $ (2.18) $ (.40) $ (1.72)
======== ======== ======== ========
Diluted loss per
share:
Net loss before
extraordinary items $ (.52) $ (2.18) $ (.76) $ (1.72)
======== ======== ======== ========
Gain on extinguishments
of debts $ .36 -- $ .36 --
======== ======== ======== ========
Net loss $ (.16) $ (2.18) $ (.40) $ (1.72)
======== ======== ======== ========
Weighted average common
shares outstanding:
Basic 5,243 5,241 5,243 5,240
Diluted 5,243 5,241 5,243 5,240
FRESH AMERICA CORP. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEET INFORMATION
(In thousands)
Sept. 29, Dec. 31,
2000 1999
-------- --------
Assets:
Cash and cash equivalents $ 6,229 $ 3,197
Receivables 40,688 58,885
Total current assets 63,105 83,520
Total assets 109,028 134,481
Liabilities and shareholders' equity:
Current liabilities 54,588 71,274
Long-term debt, less current portion 20,040 32,843
Preferred stock 4,492 --
Shareholders' equity 29,240 29,771
Total liabilities and
shareholders' equity 109,028 134,481