Spectrum Organic Products reports 4Q and full year results

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Related tags: Organic food

Spectrum Organic Products, a US organic ingredients manufacturer,
has reported a net operating cash flow of $705,000 (€798,000) for
the fourth quarter of 2001, compared to a negative EBITDA of
$108,000 for the previous year.

Spectrum Organic Products, a US organic ingredients manufacturer, has reported a net operating cash flow of $705,000 (€798,000) for the fourth quarter of 2001, compared to a negative EBITDA of $108,000 for the previous year.

The turnaround was attributed to improved margins and reduced operating expenses. For the full year ended 31 December 2001 the company reported a net operating cash flow of $2,442,000 compared to $1,189,000 for the year before. Once again, the company claimed that the improvement was primarily the result of improved margins and reduced operating expenses.

Net sales for the three months ended 31 December 2001 were $9,946,000 compared to $9,718,000 for 2000, an increase of 2.3 per cent.

In June 2001 Spectrum sold its tomato-based product lines to an unrelated third party in order to raise additional working capital. Comparable net sales (after eliminating sales of disposed or discontinued product lines from both periods) increased by 13.8 per cent for the fourth quarter.

Highest sales were achieved in the industrial organic fruits, vegetables, purees and concentrates which more than doubled from the previous year. On the consumer products side, significant sales increases were achieved in Spectrum Naturals culinary oils (up 27per cent), mayonnaise (rose by 21 per cent) and in Spectrum Essentials nutritional supplements.

For the full year 2001 comparable net sales increased by four per cent led by significant increases (13 per cent) in consumer product sales of culinary oils, mayonnaise sales rose by 17 per cent and nutritional supplements by 17 per cent.

The Company reported a net loss of $508,000 or $0.02 per share for the three months ended December 31, 2001 versus a net loss of $792,000 or $0.02 per share for the same period last year.

Spectrum CEO Jethren Phillips said: "Our fourth quarter and full year 2001 results reflect several non-recurring write-offs associated with the restructuring efforts we've made over the last two years to rid ourselves of under-performing assets, improve our margins, reduce expenses and raise working capital to deploy against our core business. EBITDA, as adjusted, operating cash flow and working capital have all dramatically improved on the year before."

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