Chicago - Rymer Foods Inc. announced its financial results for the fiscal year ended October 25, 1997.
For the fiscal year ended October 25, 1997 (accomplished by combining the eleven month period prior to restructuring and the one month after restructuring), the Company reported a loss from continuing operations of $4.9 million as compared to a loss of $7.1 million in fiscal 1996. Included in the 1997 loss is a restructuring charge of $1.6 million. In the fourth quarter of 1997, the Company successfully completed the restructuring of its Senior Notes ($21.5 million) into equity. The Company will record a net income of $20.1 million in 1997 (which includes an extraordinary gain on forgiveness of debt on its Senior Note restructuring of $25.6 million) compared to a loss of $9.2 million in 1996.
The Company improved its operating performance in 1997 over 1996 by increasing its gross profit to $3.0 million from $1.8 million and its gross profit percentage to 8.9% from 4.1%. Additionally, the Selling, General and Administrative costs were reduced by $.7 million due to cost cutting measures. Management believes that the Company's future success will be dependent upon growing sales, containing costs and continued relationships with the lenders.
Rymer Foods is the holding company for Rymer Meat, a Chicago-based portion-control meat company which provides frozen, pre-seasoned meat and tailored programs to national mid-scale family restaurant chains and institutional foodservice providers.
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