Montebello, CA - CFP Holdings Inc., a leading developer, manufacturer and marketer of value-added meat and poultry products, today announced the following preliminary financial results for the quarter ended March 31, 1998.
For comparative purposes, proforma numbers have been presented for the year ended March 31, 1997 which include the results of Quality Foods L.P., acquired by CFP Holdings in December 1996. The results presented above are unaudited and are subject to change.
The quarterly increase in net sales was primarily due to increased sales of Subway Product at the company's Quality Foods subsidiary.
The net losses reported in the quarter and year ended March 31, 1998 are principally attributable to increased interest and amortization expenses, resulting from the company's Note offering in January 1997 and the Quality Foods acquisition.
The unusual expenses for the prior-year quarter were primarily related to the Quality Foods acquisition and compensation expense due to the repurchase of common stock from employees immediately subsequent to their exercise of stock options.
The lower quarterly adjusted EBITDA results were primarily due to increases in raw material costs, lower contract selling prices at Quality Foods, lower volumes at Custom Foods and higher SG&A expenses at both divisions.
“We are pleased with the increase in EBITDA when compared with the previous quarter and the improvements seen at our Quality Foods division,” said Bill Del Chiaro, president and chief executive officer of CFP Holdings. “We expect continued improvements at Quality Foods as we build upon the growth initiatives we are now putting into place.”
Eric W. Ek, chief financial officer, said: “Operations have improved at Quality Foods when compared with the previous quarter, primarily due to the increased volume and the improved cook room operations as a result of the delivery of the Grote slicer.” The company expects continued improvements in operations, particularly in the cook room's oven yield and throughput performance.
In early May 1998, CFP Holdings completed the refinancing of the company's senior credit facility with one of its existing lenders, Fleet Capital.
“This refinancing has greatly improved our liquidity,” said Ek. “We feel very comfortable with our relationship with Fleet Capital.”
CFP Holdings is a leading developer, manufacturer and marketer of value-added meat and poultry products sold to the food service industry and manufacturers of packaged foods.
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