Press ReleaseSOURCE: Northland Cranberries, Inc.Northland Cranberries, Inc. Reports First Quarter Profit
John Swendrowski, Northland's Chairman and Chief Executive Officer, said, ``We are extremely pleased with our first quarter results. We are starting to benefit from our recent restructuring, lower cost cranberries and new marketing plan. For the quarter, our income from operations was $4.2 million compared to $3.5 million on $30.2 million less in revenues than the comparable quarter a year ago. We realized net income despite the fact that our interest expense of $4.7 million was $1.8 million more than the same quarter of fiscal 2000. We also continue to be pleased with the trade's response to our 27% Solution, and expect to begin a modest media advertising campaign highlighting our newly reformulated product line and its potential health benefits in the second quarter. We continue to work with our current bank group and potential new lenders to negotiate a long-term restructuring of the Company's debt. As we previously announced, the Company is operating under a forbearance agreement with its current bank group that allowed forbearance of interest payments during the quarter. While interest payments were not required, all interest expense for the quarter was accrued within the statement of operations. The forbearance of interest by the bank group enabled us to reduce trade payables by over $6 million in the quarter. ``We believe that we have taken the first steps toward returning the Company to long-term profitability. We will continue to work on reducing manufacturing costs and closely monitor our marketing budget in order to improve operating results.'' Northland is a vertically integrated grower, handler, processor and marketer of cranberries and value-added cranberry products. The company processes and sells Northland brand 100% juice cranberry blends, Seneca brand juice products, Northland brand fresh cranberries and other cranberry products through retail supermarkets and other distribution channels. Northland also sells cranberry and other fruit concentrates to industrial customers who manufacture juice products. With 24 growing properties in Wisconsin and Massachusetts, Northland is the world's largest cranberry grower. It is the only publicly-owned, regularly-traded cranberry company in the United States, with shares traded on the Nasdaq Stock Market under the listing symbol CBRYA. SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS Certain matters discussed in this
press release are ``forward-looking statements,'' including statements
about the Company's future plans, goals and other events, which have not
yet occurred. These statements are intended to qualify for the safe
harbors from liability established by the Private Securities Litigation
Reform Act of 1995. They can generally be identified because the context
of such statements will include words such as ``believes,''
``anticipates,'' ``expects,'' or words of similar import. Whether or not
these forward-looking statements will be accurate in the future will
depend on certain risks and factors, including risks associated with (i)
the development, market share growth and continued consumer acceptance
of the Company's branded juice products, including consumer acceptance
of its new 27% Solution; (ii) the disposition of certain litigation
related to the sale of the net assets of the Company's private label
juice business; (iii) the implementation of the marketing order of the
Cranberry Marketing Committee of the United States Department of
Agriculture and the cranberry purchase program adopted by the United
States Congress; (iv) agricultural factors affecting the Company's crop
and the crop of other North American growers; (v) the Company's ability
to comply with the terms and conditions of, and to satisfy its
responsibilities under, its amended credit facility, with respect to
which the Company is currently in default of certain covenants as well
as certain principal and interest payment provisions; (vi) the Company's
ability to secure additional financing and/or generate sufficient cash
from operations as may be necessary to fund working capital requirements
and continue as a going concern; (vii) the results of the previously
announced exploration of strategic alternatives; (viii) the results of
the Company's internal organizational restructuring, including, without
limitation, the results of the restructuring of certain sales and
marketing functions through an agreement with Crossmark, Inc.; (ix) the
Company's ability to manage its trade payables; and (x) the Company's
ability to continue to meet the listing requirements of The Nasdaq
National Market, including, without limitation, the requirement that its
Class A Common Stock maintain a minimum bid price above $1.00 per share.
Readers should consider these risks and factors and the impact they have
when evaluating these forward-looking statements. These statements are
based only on management's knowledge and expectations on the date of
this press release. The Company will not necessarily update these
statements or other information in this press release based on future
events or circumstances. (Condensed Consolidated Statements of Operations Follow)
NORTHLAND CRANBERRIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share and share data)
(Unaudited)
3 months ended 3 months ended
11/30/00 11/30/99
Revenues $44,762 $74,967
Cost of sales 30,159 51,555
Gross profit 14,603 23,412
Selling, general and administrative expenses 10,834 19,948
Gain on disposals of property and equipment (410) --
Income from operations 4,179 3,464
Interest expense 4,685 2,911
Interest income (694) --
Income before income taxes 188 553
Income taxes -- 232
Net income $188 $321
Net income (loss) per share
Basic $0.01 $0.02
Diluted $0.01 $0.02
Shares used to compute net income per share:
Basic 20,338,423 20,304,702
Diluted 20,338,423 20,338,423
SOURCE: Northland Cranberries, Inc.
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1/8/01 -- Northland Cranberries, Inc. (Nasdaq: