ALEXANDRIA, Va., Jan. 21, 2009 (GLOBE NEWSWIRE) -- Cuisine Solutions, Inc. (NYSE Alternext:FZN), a leading premium, fully-cooked, frozen food manufacturer, today announced results for the second quarter ended December 13, 2008. For the second quarter of fiscal year 2009 our net sales from products were $19,471,000, down 18.0% over prior fiscal year second quarter of $23,738,000. The only channel with growth in second quarter product sales was Military with a 63.1% increase compared to the same period in fiscal 2008. Net income for the second quarter of fiscal year 2009 decreased by 31.1% to $155,000 compared to second quarter of fiscal year 2008 income of $225,000 due primarily to reduced gross margins on reduced sales, partially offset by reduced expenses in research and development, selling and marketing and general and administrative expenses. Net income per share basic and diluted remained the same at $0.01 per share in the second quarter of fiscal 2009 and 2008. For the second quarter of fiscal year 2009, net sales from services were $218,000 as a result of the recent acquisition of CREA and other fee based training programs. The Company has reduced staffing, primarily in the U.S., as a result of the downturn in its business and the effects of the current economic environment. This reduction in workforce was implemented primarily after the end of the second quarter and the Company expects these reductions to result in cost savings of approximately $2,000,000 annually. There were few upfront costs related to this workforce reduction.
"We believe the gains in our Military channel continue to demonstrate the advantages of our diversification strategy," remarked Cuisine Solutions' CEO and President, Stanislas Vilgrain. "While sales in our other channels were down, the military's continued appreciation for our high quality and safety helped us greatly in the quarter."
"On the positive side, we believe our R&D pipeline is very strong with future launches of new products and partnerships", continued Vilgrain. "The interest in what we do continues to grow, especially after the release of Thomas Keller's best selling cookbook 'Under Pressure'. Chef Keller was trained in sous-vide by our chief scientist Bruno Goussault. Additionally, the Company was able to take advantage of current market conditions and began its previously announced stock buy back program. Overall, our confidence in the future growth of the Company remains firm and our balance sheet is strong."
NET PRODUCT SALES FOR THE SECOND QUARTER ENDED:
December 13, December 15, %
By Geographic Region 2008 2007 change
----------------------------------
USA Sales $ 12,126,000 $ 15,692,000 -22.7%
Europe Sales 6,720,000 7,766,000 -13.5%
Rest of World Sales 625,000 280,000 123.2%
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Net Product Sales $ 19,471,000 $ 23,738,000 -18.0%
==========================
December 13, December 15, %
By Channel 2008 2007 change
----------------------------------
On Board Services $ 3,896,000 $ 6,358,000 -38.7%
Food Service 3,330,000 3,999,000 -16.7%
Retail 6,088,000 8,069,000 -24.5%
Military 5,036,000 3,087,000 63.1%
National Restaurant Chains 1,121,000 2,225,000 -49.6%
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Net Product Sales $ 19,471,000 $ 23,738,000 -18.0%
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CUISINE SOLUTIONS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
Twelve Weeks Ended Twenty-four Weeks Ended
------------------------ ------------------------
December 13, December 15, December 13, December 15,
2008 2007 2008 2007
----------- ----------- ----------- -----------
Revenues
Products sales,
net $19,471,000 $23,738,000 $37,744,000 $41,218,000
Services revenue 218,000 -- 306,000 --
----------- ----------- ----------- -----------
Total revenue 19,689,000 23,738,000 38,050,000 41,218,000
Cost of revenue
Products 15,670,000 18,934,000 29,969,000 32,867,000
Services 176,000 -- 277,000 --
----------- ----------- ----------- -----------
Total cost of
revenue 15,846,000 18,934,000 30,246,000 32,867,000
----------- ----------- ----------- -----------
Gross margin 3,843,000 4,804,000 7,804,000 8,351,000
Research and
development 239,000 263,000 463,000 499,000
Selling and
marketing 2,013,000 2,314,000 3,686,000 3,849,000
General and
administrative 1,275,000 1,775,000 3,025,000 3,475,000
----------- ----------- ----------- -----------
Income before
non-operating
expense, minority
interest and
income taxes 316,000 452,000 630,000 528,000
Non-operating
income (expense)
Interest expense (73,000) (101,000) (148,000) (182,000)
Other (expense)
income, net 12,000 27,000 (2,000) 43,000
----------- ----------- ----------- -----------
Total non-operating
expense (61,000) (74,000) (150,000) (139,000)
Minority interest 4,000 -- 4,000 --
Income before
income taxes 259,000 378,000 484,000 389,000
Provision for
income tax
expense (104,000) (153,000) (194,000) (157,000)
----------- ----------- ----------- -----------
NET INCOME $ 155,000 $ 225,000 $ 290,000 $ 232,000
=========== =========== =========== ===========
Net income per
common share
Basic $ 0.01 $ 0.01 $ 0.02 $ 0.01
Diluted $ 0.01 $ 0.01 $ 0.02 $ 0.01
Weighted average
shares outstanding
-basic 17,551,134 16,693,091 17,524,187 16,678,523
Common stock
equivalents 553,606 1,719,076 631,920 1,747,497
----------- ----------- ----------- -----------
Weighted average
shares outstanding
-diluted 18,104,740 18,412,167 18,156,107 18,426,020
=========== =========== =========== ===========
CUISINE SOLUTIONS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
December 13, June 28,
2008 2008
------------ ------------
ASSETS
Current assets
Cash and cash equivalents $ 796,000 $ 1,016,000
Trade accounts receivable, net 8,054,000 8,264,000
Inventory, net 10,298,000 11,322,000
Prepaid expenses 764,000 482,000
Deferred tax assets 449,000 801,000
Other current assets 468,000 458,000
------------ ------------
TOTAL CURRENT ASSETS 20,829,000 22,343,000
Fixed assets, net 12,807,000 14,012,000
Deferred tax assets, net 5,065,000 5,002,000
Investments, non-current 375,000 375,000
Restricted cash 162,000 130,000
Other assets 100,000 86,000
------------ ------------
TOTAL ASSETS $ 39,338,000 $ 41,948,000
============ ============
LIABILITIES, MINORITY INTEREST AND
STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable and accrued expenses $ 6,253,000 $ 6,357,000
Line-of-credit 625,000 1,049,000
Accrued payroll and related liabilities 1,628,000 2,389,000
Current portion of long-term debt 953,000 906,000
------------ ------------
TOTAL CURRENT LIABILITIES 9,459,000 10,701,000
Long-term debt, less current portion 4,471,000 5,689,000
Asset retirement obligation 601,000 601,000
Deferred rent 180,000 170,000
------------ ------------
TOTAL LIABILITIES 14,711,000 17,161,000
Minority interest 63,000 --
STOCKHOLDERS' EQUITY
Preferred Stock - $0.01 par value,
2,000,000 shares authorized, none issued
Common Stock - $0.01 par value, 38,000,000
shares authorized, 17,554,194 and
17,449,194 shares issued at December 13,
2008 and June 28, 2008, respectively 176,000 174,000
Additional paid-in capital 29,347,000 28,946,000
Treasury stock, at cost 22,500 and 0 shares
at December 13, 2008 and June 28, 2008,
respectively (17,000) --
Accumulated deficit (6,068,000) (6,358,000)
Accumulated other comprehensive income:
Cumulative translation adjustment 1,126,000 2,025,000
------------ ------------
TOTAL STOCKHOLDERS' EQUITY 24,564,000 24,787,000
------------ ------------
TOTAL LIABILITIES, MINORITY INTEREST AND
STOCKHOLDERS' EQUITY $ 39,338,000 $ 41,948,000
============ ============
This news release contains forward looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. Words such as "expect," "believe," and "intend," and similar expressions are intended to identify forward-looking statements. Achievement of projected or implied future results, including, without limitation, is subject to numerous risks and uncertainties -- including, without limitation, the risks and uncertainties discussed in the Company's filings with the Securities and Exchange Commission -- and the possibility of inaccurate assumptions that could cause actual results to vary materially from the results expressed or implied in this presentation. Among these risks and uncertainties are the Company's assumptions related to the performance of certain aspects of its business upon which its future financial results may be materially reliant, including, without limitation, assumptions regarding the duration and severity of the current economic conditions and the impact on consumer demand and spending and demand for our products, the launch of new products and partnerships, projected sales generated by its military, retail, onboard services, food service, national restaurant chain channels and our training centers, the future growth of the company and market, industry or regulatory changes. Material changes in any of these or other financial factors may cause actual results to differ materially from any projections made herein. In addition, except as required by law, the Company does not undertake and does not intend to update any forward-looking statement that it may make in this presentation or in any other context, from time to time.