DALLAS, August 2, 2000 (PRIMEZONE) -- Fresh America Corp. (Nasdaq:FRES), a major North American fresh produce distribution company, today reported second quarter 2000 net income of $0.8 million or $0.08 per diluted share on revenues of $163.6 million. This compared to net income of $1.3 million or $0.23 per diluted share on revenues of $194.1 million for the same period a year ago. The decrease of $30.5 million in revenues 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 six months ended June 30, 2000, the Company reported a net loss of $1.0 million or $0.22 per share on revenues of $306.2 million. This compared to net income of $2.4 million or $.44 per diluted share on revenues of $367.5 million for the same period a year ago.
Commenting on the second quarter, Colon Washburn, Chief Executive Officer, stated, "The steps taken in late 1999 and early 2000 to strengthen our balance sheet and operating cash flow have favorably impacted our second quarter performance. Thanks to the hard work and dedication of our associates, cash flow continues to improve and has allowed the company to significantly reduce the outstanding balance of its senior secured credit facility since April of this year. In fact, the debt reduction through July of $6.0 million included prepayments of $3.0 million which were made possible by strong cash flow generated from operations."
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 INCOME
(In thousands, except per share amounts)
Quarter Ended Six Months Ended
June 30, July 2, June 30, July 2,
2000 1999 2000 1999
Revenue $163,585 $194,102 $306,237 $367,529
Cost of sales 145,078 170,411 272,500 321,832
-------- -------- -------- --------
Gross profit 18,507 23,691 33,737 45,697
Operating expenses 16,339 19,548 32,077 38,304
-------- -------- -------- --------
Operating income 2,168 4,143 1,660 7,393
Other, net
(principally
interest expense) (1,342) (1,318) (2,445) (2,385)
-------- -------- -------- --------
Income (loss)
before income taxes 826 2,825 (785) 5,008
Income tax expense 15 1,572 204 2,574
-------- -------- -------- --------
Net income (loss) 811 1,253 (989) 2,434
Preferred dividends
and accretion 178 -- 178 --
-------- -------- -------- --------
Net income (loss)
available to common
shareholders $ 633 $ 1,253 $ (1,167) $ 2,434
======== ======== ======== ========
Earning (loss)
per share:
Basic $ 0.12 $ 0.24 $ (0.22) $ 0.46
Diluted $ 0.08 $ 0.23 $ (0.22) $ 0.44
Weighted average
common and common
equivalent shares
outstanding:
Basic 5,243 5,241 5,243 5,239
Diluted 7,337 5,565 5,243 5,548
FRESH AMERICA CORP. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
June 30, December 31,
2000 1999
---- ----
Assets:
Cash and cash equivalents $ 4,313 $ 3,197
Receivables 52,106 58,885
Total current assets 72,162 83,520
Total assets 120,750 134,481
Liabilities and shareholders' equity:
Current liabilities 66,355 71,274
Long-term debt, less current portion 19,936 32,843
Preferred stock 4,232 --
Shareholders' equity 29,587 29,771
Total liabilities and shareholders' equity 120,750 134,481