990825 CFP Holdings Reports Results for QuarterAugust 11, 1999Philadelphia - CFP Holdings Inc reported net income for the quarter ended June 30, 1999 of $0.2 million, representing a significant improvement over the year-ago quarter's net loss of $2.2 million. The 1998 net loss included a $1 million extraordinary loss incurred on the early extinguishment of debt associated with the company's successful refinancing of its senior credit facility. The company's 116.7% increase in net income reflects an increase in sales of the Company's higher margin value-added products and the positive impact of reduced raw material costs. Adjusted EBITDA was $6.4 million for the quarter ended June 30, 1999 compared to $5.1 million for the quarter ended June 30, 1998, representing an increase of 25.5%. This increase is due to the aforementioned increase in sales of the company's higher margin value-added products and the positive impact of improved operations and reduced raw material costs. The terminated transaction related costs for the quarter ended June 30, 1998 were composed of costs incurred in pursuit of a potential acquisition. “We are extremely pleased with our quarterly results, and in particular, the increase in sales of our higher margin value-added products,” said William Del Chiaro, president and CEO of CFP Holdings. “We expect further growth in sales as we continue to capitalize on the sales initiatives and infrastructure improvements we have put in place. “We are also fortunate to have added Glenn Myers, senior vice president of Sales & Marketing, to our top management team,” added Del Chiaro. “Glenn comes to us most recently from Best Foods Food Service where he was vice president of National Account Sales, responsible for the sales of both branded and custom products to 200 of the company's largest accounts. We look forward to capitalizing on Glenn's extensive experience to drive sales growth in the years ahead. “The company is continuing to strengthen its long-term relationships with key customers as evidenced by the recent signing of a five-year contract with Arby's which provides for historical revenue levels at substantially similar margins,” continued Del Chiaro. “We expect to maintain even more successful relationships with our customers in the future as we continue implementing and enhancing the company's `team' concept.” “We are extremely satisfied with the 25.5% increase in Adjusted EBITDA for the quarter ended June 30, 1999 when compared to the prior year's quarter,” said Eric W. Ek, senior vice president and CFO. “We are also pleased to have turned the corner in terms of profitability, as we reported positive net income for the first time since becoming a public reporting entity on Jan. 1, 1997.” 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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