Weak 4Q for Northland
fruit juice products, reported improved net income on last year's
results although fourth quarter revenue was affected by poor sales
of its Seneca and Northland branded products.
Northland Cranberries, the maker of cranberry juice blends and Seneca brand fruit juice products, reported a net income of $53.8 million for the year ending August 31, 2002, on net revenues of $101.5 million, compared with a loss of $74.5 million on net revenues of $125.8 million for the previous year.
Net income in fiscal 2002 included a $50.5 million extraordinary gain, net of income taxes, on forgiveness of indebtedness resulting from the company's restructuring on November 6, 2001.
Revenues for the fourth quarter were disappointing however, with a net loss of $44,000 on net revenues of $23 million. The company attributed the decreases in net revenue to reduced sales of Northland and Seneca branded products and the June 2001 sale of the company's cranberry sauce business and a manufacturing facility. The cranberry sauce business and contract manufacturing at the former facility generated revenue of $7.9 million in fiscal 2001. The decreases in net revenue were partly offset by increased sales of cranberry concentrate, it said.
John Swendrowski, Northland's chairman and chief executive officer, said: "We have shown significant improvement in our financial condition compared to a year ago. We had income from operations of $7.0 million for fiscal 2002 and $501,000 for the fourth quarter, compared to substantial losses in fiscal 2001. Our interest expense for fiscal 2002 decreased by more than $12.0 million because of our restructuring and a concerted effort to reduce debt."
"Going forward, we continue to work on regaining lost distribution for our branded juice business. We recently launched a new television campaign that encourages consumers to read labels and understand the difference between Northland 100% juice cranberry blends and cranberry-based drinks that are relatively low in overall juice and cranberry content. We are also executing various coupon programs aimed at motivating existing and new consumers of the Northland brand," added Swendrowski.
Northland 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. It also sells cranberry and other fruit concentrates to industrial customers who manufacture juice products.
