Montebello, CA - CFP Holdings Inc., a leading developer, manufacturer and marketer of value-added meat and poultry products, reported a net loss for the quarter ended Dec. 31, 1998, of $0.3 million, representing significant improvement over the year-ago quarter's net loss of $2.2 million.
The company reported adjusted EBITDA of $5.6 million for the quarter and $16.6 million for the nine months ended Dec. 31, 1998, which represents a strong showing when compared with the $3.8 million and $14.4 million reported respectively in the prior year periods. The higher quarterly adjusted EBITDA results were due to increases in sale prices of certain value-added items, improvements in operating efficiencies and decreases in raw material costs.
"We are pleased with the increase in adjusted EBITDA and the operational improvements seen at our Quality Foods division," said Bill Del Chiaro, president and chief executive officer of CFP Holdings. "We expect continued improvements as we build upon the operating and sales initiatives we have put in place."
Eric W. Ek, senior vice president and chief financial officer, said, "In addition to the improved operations at our Quality Foods division, we have also benefited from favorable conditions in the raw material markets at both operating divisions."
The company expects continued improvements in operations during the coming year primarily due to the newly installed oven at the Quality Foods division.
"The company is continuing to strengthen its relationships with key customers through a new program in which a dedicated, cross-functional team of employees focuses on finding ways to improve the value of the products and service we provide to each of our major customers," added Del Chiaro.
"The program, which was launched last quarter, has been embraced by Subway, Arby's, Chef America and others, and we expect to maintain even more successful relationships with these customers in the future as a result of these efforts. We are continuing to make strategic staffing additions, primarily in the sales areas, which will continue to play an important role as we grow our business," continued Del Chiaro.
"In particular, we are working to develop our new brand name 'Philly-Up,' which was rolled out in the field last quarter and is receiving strong initial interest. We intend to capitalize on our leading market position in the 'Philadelphia Style' cheese steak product as we drive this business forward," concluded Del Chiaro.
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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