Wednesday, August 13, 2008 9:10:37 AM
News... Galaxy Nutritional Foods Reports First Quarter Operating Results
Wednesday August 13, 8:00 am ET
ORLANDO, Fla., Aug. 13 /PRNewswire-FirstCall/ -- Galaxy Nutritional Foods, Inc. (OTC Bulletin Board: GXYF - News), a leading developer and marketer of cheese alternatives, organic dairy and other organic and natural food products, today reported its operating results for the first quarter of its Fiscal Year 2009.
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For the three months ended June 30, 2008, the Company reported income from operations of $227,689 and net income of $119,951, or $0.01 per basic and diluted share, on net sales of approximately $6 million. In the prior-year quarter ended June 30, 2007, the Company reported net income of $150,999, or $0.01 per basic and diluted share, on net sales of approximately $5.9 million. Operating expenses in the prior year quarter included a non-recurring employment contract expense of $346,447. Exclusive of this charge, the Company would have reported net income of $497,446 in the prior-year quarter. The Company generated EBITDA, as adjusted, a non-GAAP measure, of $239,565 (4.0% of net sales) in the quarter ended June 30, 2008 compared with $623,594 (10.5% of net sales) in the prior-year quarter (see EBITDA table at end of this release for further non-GAAP information and disclosure). This substantial decline in EBITDA versus the prior year is primarily due to lower gross margin in the current year which was driven by a substantial increase in our cost of goods sold.
"Given the significantly higher ingredient and transportation costs during the first quarter of this fiscal year versus the prior year, we managed to deliver a modest level of operating income while maintaining an acceptable level of consumer programs," stated Michael E. Broll, Chief Executive Officer of Galaxy Nutritional Foods, Inc.
"While commodity costs seem to have stabilized, we have not yet seen any signs of potential softening," concluded Broll.
CONFERENCE CALL AND WEBCAST INFORMATION
The Company will host an investor conference call today, August 13, 2008 at 11:00 a.m. EDT; Shareholders and other interested parties may participate in the conference call by dialing 888-200-8867 (international participants dial 973-935-8765) and referencing the ID code 59365667 a few minutes before 11:00 am EDT on August 13, 2008. A replay of the conference call will be available on the Galaxy Nutritional Foods, Inc. Website at: http://www.galaxyfoods.com/investors/transcripts.asp starting on Thursday, August 14, 2008.
Wednesday August 13, 8:00 am ET
ORLANDO, Fla., Aug. 13 /PRNewswire-FirstCall/ -- Galaxy Nutritional Foods, Inc. (OTC Bulletin Board: GXYF - News), a leading developer and marketer of cheese alternatives, organic dairy and other organic and natural food products, today reported its operating results for the first quarter of its Fiscal Year 2009.
ADVERTISEMENT
For the three months ended June 30, 2008, the Company reported income from operations of $227,689 and net income of $119,951, or $0.01 per basic and diluted share, on net sales of approximately $6 million. In the prior-year quarter ended June 30, 2007, the Company reported net income of $150,999, or $0.01 per basic and diluted share, on net sales of approximately $5.9 million. Operating expenses in the prior year quarter included a non-recurring employment contract expense of $346,447. Exclusive of this charge, the Company would have reported net income of $497,446 in the prior-year quarter. The Company generated EBITDA, as adjusted, a non-GAAP measure, of $239,565 (4.0% of net sales) in the quarter ended June 30, 2008 compared with $623,594 (10.5% of net sales) in the prior-year quarter (see EBITDA table at end of this release for further non-GAAP information and disclosure). This substantial decline in EBITDA versus the prior year is primarily due to lower gross margin in the current year which was driven by a substantial increase in our cost of goods sold.
"Given the significantly higher ingredient and transportation costs during the first quarter of this fiscal year versus the prior year, we managed to deliver a modest level of operating income while maintaining an acceptable level of consumer programs," stated Michael E. Broll, Chief Executive Officer of Galaxy Nutritional Foods, Inc.
"While commodity costs seem to have stabilized, we have not yet seen any signs of potential softening," concluded Broll.
CONFERENCE CALL AND WEBCAST INFORMATION
The Company will host an investor conference call today, August 13, 2008 at 11:00 a.m. EDT; Shareholders and other interested parties may participate in the conference call by dialing 888-200-8867 (international participants dial 973-935-8765) and referencing the ID code 59365667 a few minutes before 11:00 am EDT on August 13, 2008. A replay of the conference call will be available on the Galaxy Nutritional Foods, Inc. Website at: http://www.galaxyfoods.com/investors/transcripts.asp starting on Thursday, August 14, 2008.
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