| For Immediate Release 5:15 PM EDT April 24, 1997 |
Contact: Frances Rathke, Chief Financial Officer (802) 651-9600 Ext. 7500 |
Net sales for the first quarter ended March 29, 1997 were $36,148,000 a decrease of 5% from net sales of $37,889,000 for the same period in 1996. Net loss for the quarter was $1,059,000, compared to net income in the first quarter of 1996 of $1,364,000. Net loss per common share fo the first quarter of 1997 was $0.15, compared to net income per common share of $0.19 in the 1996 first quarter, which included $0.06 in after-tax-income from an insurance claim settlement related to damaged inventory. The current quarter's $0.15 per share loss is within the range of expected losses, as the Company previously reported on March 20, 1997.
The loss for the first quarter of 1997 is attributed to lower than expected sales, as well as to planned reduced production levels designed to lower the Company's inventories. In addition, increased commodity costs continued to negatively affect the Company's gross margins. Selling, general, and administrative expenses in the first , quarter were higher than in the comparable 1996 quarter due primarily to European market entry costs. The Company expects to return to profitablility for the balance of 1997.
The Company also announced that its Annual Meeting of Shareholders will be held on Saturday, June 28, 1997 at 10:00 AM at the Sugarbush Country Club in Warren VT, followed by the Ben & Jerry's One World One Heart Festival to be held that day at the Sugarbush South Resort.
Ben & Jerry's produces superpremium ice cream, ice cream novelties, lowfat and no-fat yogurt, and sorbet using Vermont dairy products, Vermont spring water, and high quality natural ingredients. Ben & Jerry's products are distributed nationwide and in selected foreign countries in supermarkets, grocery stores, convenience stores, restaurants and other venues.
| Thirteen weeks ended | ||
| March 29, 1997 | March 30, 1996 | |
| Net sales | $36,148 | $37,889 |
| Gross profit | 10,003 | 11,965 |
| Selling, general,&administrative expense | 11,402 | 10,356 |
| Operating income (loss) | (1,399) | 1,609 |
| Other income (expense) | (309) | 592 |
| Income (loss) before income taxes | (1,708) | 2,201 |
| Net income (loss) | (1,059) | 1,364 |
| Net income (loss) per common share | ($0.15) | $0.19 |
| Weighted average common and common equivalent shares outstanding | 7,264 | 7,242 |