Claremont, NC - WSMP, Inc. reported earnings of 16 cents a share and significantly higher operating income for the quarter ended Nov. 7, 1997.
Earnings per share for the third quarter of WSMP's fiscal 1998 increased 265 percent compared to the corresponding quarter of the previous fiscal year, climbing to 16 cents a share versus six cents a share. Operating income for the third quarter rose 60 percent to $776,920, compared to $484,758 for the quarter ended Nov. 1, 1996.
Net income for the third quarter more than tripled compared to the third quarter of the previous fiscal year, climbing to $616,853 versus $178,405. Both net income and earnings per share met the analysts' estimates for the third quarter.
Revenues for the third quarter of WSMP's fiscal year rose $3,154,866 compared to the corresponding quarter of the previous fiscal year. Operating revenues for the quarter were $23,742,888, compared to $20,588,022 for the quarter ended Nov. 1, 1996.
For the nine-month period ended Nov. 7, 1997, compared to the nine-month period ended Nov. 1, 1996, WSMP reported revenue climbed by 26 percent, net income more than tripled, and earnings per share increased to 40 cents compared to 14 cents.
"Our strong earnings performance, compared to both the corresponding period of the prior year and the first nine months of the previous fiscal year, continue a trend we established last year," said David R. Clark, WSMP president and COO. "This strong increase remains indicative of the many exciting things our company has going on at this time. In addition to the activities reflected in our third quarter numbers, we are looking forward to the additional opportunities for performance that should result from our plans for growth."
During the third quarter, WSMP made a number of significant announcements, including: signing a definitive merger agreement for the acquisition by WSMP of 32-unit Sagebrush restaurant chain; and an agreement with CKE Restaurants, Inc., for the two companies to introduce a new line of Hardee's biscuits to be sold in supermarkets and other retail outlets.
WSMP is comprised of a variety of food processing operations and a restaurant division. In its food processing operations, WSMP has the capacity to produce more than four million microwaveable sandwiches per week in its Claremont facility. It also produces packaged, refrigerated meats, vegetables, desserts and other items targeted for the Home Meal Replacement market. And WSMP is one of the largest country ham producers in the nation.
Its restaurant operations include 31 company-owned and 47 franchised restaurants, with a majority of these being Western Steer Steaks, Buffet and Bakery restaurants, Prime Sirloin Buffet, Bakery and Steaks restaurants and Bennett's Smokehouse and Saloon restaurants.
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