Cuisine Solutions Sales Up 69.5% for Q1 Fiscal Year 2006
Cuisine Solutions, Inc. (AMEX:FZN) today announced its results for the first quarter of fiscal year 2006. Revenue in the first quarter of fiscal 2006 increased $6,049,000 from $8,703,000 to $14,752,000, a 69.5% increase compared to the same quarter of the previous fiscal year due primarily to stronger sales in all sales channels. US Military sales rose by 362.2%, due to the increased demand from the US Army overseas. Sales within the Food Service channel in France improved 54.9%, due primarily to increased sales to large caterers. On Board Services sales increased by 93.8% in France due to continued improved sales penetration in the travel industry in Europe, and Retail sales in the US grew 47.8% as a result of increased sales to existing customers in both deli and company branded packaged goods.
"We believe in providing only exceptional food with ultimate convenience to our customers," states Thomas L. Gregg, President. "We remain steadfast in our goal to be the leader in an emerging category of premium, fully cooked, frozen food. The Company has been very fortunate for the media exposure we have received recently, and we hope that it has accelerated the education process for chefs that sous vide is a superior method and cooking, and for consumers that exceptional frozen food is not only possible, but it is available."
The Company reported net earnings from continuing operations for the first quarter of fiscal year 2006 of $1,522,000 compared to $280,000 for the same quarter of fiscal year 2005. The 443.6% increase in net earnings from continuing operations was primarily due to a 69.5% increase in sales and a 102.6% increase in gross margin, as a result of the higher sales and the corresponding production and procurement efficiencies achieved. Net earnings per share from continuing operations were $.09 for first quarter FY 06 compared to $.02 the same quarter last year.
Information as to the Company’s sales by geographical locations is as follows:
Q1 Fiscal Q1 Fiscal 2006 2005 $ Change %Change ------------ ------------ ----------- --------- USA $10,592,000 $5,980,000 $4,612,000 77.1% France 4,160,000 2,723,000 1,437,000 52.8% ------------ ------------ ----------- --------- Total Net Sales $14,752,000 $8,703,000 $6,049,000 69.5% ============ ============ =========== =========
First quarter net sales by sales channel for fiscal year 2006 and 2005 are as follows:
Q1 Fiscal Q1 Fiscal 2006 2005 $ Change %Change ------------ ------------ ----------- --------- Food Service $3,424,000 $2,211,000 $1,213,000 54.9% On Board Services 3,321,000 3,216,000 105,000 3.3% Retail 1,774,000 1,582,000 192,000 12.1% Military 5,718,000 1,237,000 4,481,000 362.2% National Restaurant Chain / New Business 515,000 457,000 58,000 12.7% ------------ ------------ ----------- --------- Total $14,752,000 $8,703,000 $6,049,000 69.5% ============ ============ =========== =========
Cuisine Solutions U.S. Fiscal Years 2006 and 2005 first quarter sales by sales channel are as follows:
Q1 Fiscal Q1 Fiscal 2006 2005 $ Change %Change ------------ ------------ ----------- --------- Food Service $1,211,000 $1,041,000 $170,000 16.3% On Board Services 2,323,000 2,701,000 (378,000) (14.0%) Retail 838,000 567,000 271,000 47.8% Military 5,718,000 1,237,000 4,481,000 362.2% National Restaurant Chain 502,000 434,000 68,000 15.7% ------------ ------------ ----------- --------- Total $10,592,000 $5,980,000 $4,612,000 77.1% ============ ============ =========== =========
Cuisine Solutions France fiscal year 2006 first quarter sales compared to the prior year first quarter and respective exchange rates are as follows:
Q1 Fiscal Q1 Fiscal 2006 2005 $ Change %Change ------------- ------------- ------------- --------- Sales in U.S. Dollars $4,160,000 $2,723,000 $1,437,000 52.8% Sales in Euros EUR 3,408,000 EUR 2,229,000 EUR 1,179,000 52.9% Average exchange rate 0.8192 0.8186
Cuisine Solutions France fiscal year 2006 first quarter sales by sales channel were as follows:
Q1 Fiscal Q1 Fiscal 2006 2005 $ Change %Change ------------ ------------ ----------- --------- Food Service $2,213,000 $1,170,000 $1,043,000 89.1% On Board Services 998,000 515,000 483,000 93.8% Retail 936,000 1,015,000 (79,000) (7.8%) New Business 13,000 23,000 (10,000) (43.5) ------------ ------------ ----------- --------- Total $4,160,000 $2,723,000 $1,437,000 52.8% ============ ============ =========== =========
A comparison of net sales, gross margin and net earnings from operations follows:
Twelve weeks ended ----------------------------- Sept. 17, Sept. 18, 2005 2004 % Change --------- --------- --------- (Dollars in thousands) Net Sales $14,752 $8,703 69.5% Gross margin $4,114 $2,031 102.6% Gross margin percentage 27.9% 23.3% Earnings from continuing operations $1,522 $280 443.6% Net earnings $1,522 $162 839.5%
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. Those statements reflect the intent, belief or current expectations of the company and members of the management team. Investors can identify these forward-looking statements by use of words such as "expects,""believes,""will,""continues,""goals" and other words of similar meaning. One can also identify them by the fact that they do not relate strictly to historical or current facts. The Company cannot guarantee that any forward-looking statement will be realized, although it believes that it has been prudent in its plans and assumptions. Achievement of future results is subject to risks, uncertainties, and the possibility of inaccurate assumptions. Should known or unknown risks or uncertainties materialize, or should underlying assumptions prove inaccurate, actual results could vary materially from those anticipated, estimated, or projected. The Company does not undertake to update any forward-looking statement that it may make from time to time.