990605 CFP Holdings Reports Results for Quarter and Year

Montebello, CA - CFP Holdings Inc., a leading developer, manufacturer and marketer of value-added meat and poultry products, announced financial results for the quarter and fiscal year ended March 31, 1999.

The company reported a net loss for the quarter ended March 31, 1999 of $0.7 million, representing a significant improvement over the year-ago quarter's net loss of $2.1 million. Similarly, the company's net loss for the year ended March 31, 1999 was $3.6 million, also representing a significant improvement over the prior year's net loss of $5.5 million.

Adjusted EBITDA was $5.7 million for the quarter and $22.2 million for the fiscal year ended March 31, 1999, again representing a strong showing when compared with the $4.1 million and $18.5 million, respectively, reported in the prior-year periods.

The higher fourth quarter and year-end adjusted EBITDA results were due to increased sales of certain value-added items, improvements in operating efficiencies and the positive impact of reduced raw material costs, net of the company's increased investment in selling, general and administrative expenses.

“We are very pleased with the strategic direction established and successfully implemented by Bill Del Chiaro during his first full year as CEO,” said Roberto Buaron, chairman of the board of CFP Holdings Inc. “CFP is clearly moving in the right direction and we look forward to building on this momentum to achieve our growth objectives in the years ahead.”

“We are extremely satisfied with our bottom line results,” said Del Chiaro, president and CEO of CFP Holdings. “In particular, our success during fiscal year 1999 can be directly attributed to our top management team, much of which was assembled during the year as we focused on consolidating the company's operating divisions under CFP Group Inc.

“In addition, our focus on growth is achieving results as evidenced by the strong increase in sales during the fourth quarter,” continued Del Chiaro. “Specifically, net sales to Subway increased approximately 10% from fiscal year 1998 to fiscal year 1999 as a result of Subway's successful marketing campaign. Further, our relationships with key customers continue to strengthen as we implement the company's `Team' concept.”

Eric W. Ek, senior vice president and CFO added: “We are very pleased with the 20% increase in adjusted EBITDA for the fiscal year ended March 31, 1999. This increase well exceeds our substantial investment in selling, general and administrative expenses during the same period, which has strengthened our company's infrastructure and positioned it for future growth.”

“We are fortunate to have added Ron Gallo, senior vice president staff operations, and promoted Jeffry Kohlhoff, senior vice president operations, to our top management team. We look forward to capitalizing upon the foundation established in fiscal year 1999 as we continue to build upon the operating and sales initiatives we have put in place,” added Del Chiaro.

CFP Holdings Inc. 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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