Raleigh, NC - Ron E. Doggett, Chairman and Chief Executive Officer of GoodMark Foods, Inc., today announced results for the fourth quarter and fiscal year ended May 31, 1998. For fiscal 1998, net sales from continuing operations rose 7% to $172,153,000 from $161,034,000 last year. Net income from continuing operations for fiscal 1998 increased 64% to $9,747,000, or $1.33 per share, compared with $5,931,000, or $.77 per share, in the year-earlier period. In finalizing the closeout of the packaged meats business, a $.04 per share favorable adjustment was made to the previously established reserve for discontinued operations.
It should be noted that both the fourth quarter and fiscal 1998 as a whole contain an additional week of operations compared with the year-earlier periods. The one additional week is necessary every few years in order to realign the Company's 52-week, 364-day fiscal year with the 365-day calendar year.
For the 14 weeks ended May 31, 1998, net sales from continuing operations were $49,109,000, up 16% over net sales of $42,235,000 in the fourth quarter last year. Net income from continuing operations was $3,085,000, or $.42 per share, compared with $1,446,000, or $.19 per share, in the year-earlier period.
Commenting on the results, Doggett said, “We are very pleased with the continued gains generated by our branded products in the fourth quarter. These sales gains, along with a favorable product mix and stable raw material prices, enabled us to post record gross margins in the fourth quarter and for the year. Our net income margin of 5.8% for fiscal 1998 was the highest ratio since fiscal 1995.”
On June 18, 1998, the boards of directors of GoodMark and ConAgra announced that they had approved a definitive agreement to merge GoodMark with ConAgra. Recently, the Company mailed proxy materials to its shareholders notifying them of a special meeting to be held on July 31, 1998, at which the shareholders will be asked to approve the merger. The Company was notified on July 9 that early termination of the waiting period has been granted under the Hart-Scott-Rodino federal antitrust statute, which was a requirement of the definitive agreement.
Meat Industry Insights News Service
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