Improved Efficiencies Help Galaxy Post Profit
ORLANDO, Fla.--Galaxy Nutritional Foods (AMEX:GXY) reported that improved efficiencies, including the installation of six more production lines, helped its bottom line for the company's third quarter (3Q02), ended Dec. 31 and reported Feb. 14. Net sales for the quarter were $10.4 million, down 7.6 percent from $11.3 million logged in 3Q01. Earnings were benefited by factors such as increased efficiencies of new production equipment and strengthened internal controls. Gross margin dipped to 29.3 percent of sales from 33.7 percent, although operating expenses were slashed by more than 60 percent to $2.1 million. Galaxy posted a net profit of $150,000, with shares staying the same, an improvement over 3Q01's net loss of $2.5 million, or $.09 per share lost.
"[W]e are very pleased to report a profit for the third quarter and expect that with the increased efficiencies and capacity of the new product equipment ... our recovery and growth should be strong," stated Angelo Morini, chairman, president and chief executive officer of the company.