Bridgford Foods Corporation Reports Annual Results for Fiscal Year Ended October 28, 2011

January 18, 2012

Bridgford Foods Corporation (NasdaqGM: BRID) reported net sales for its fiscal year ended October 28, 2011 were essentially flat at $118.26 million compared to $117.7 million in the prior fiscal year.  The primary reason for the small increase in net sales was due to an increased selling price per pound; however this increase was mostly offset by lower unit volume.  Most of the sales gains were seen in the company’s frozen food products segment while the snack food segment saw a slight decline.

The net loss for fiscal 2011 was $443 thousand or $(0.05) per share versus a net income in fiscal 2010 of $4.32 million or $0.46 per share.  Earnings were negatively impacted by a 14.4% increase in the cost of goods sold due to higher meat and flour commodities cost, increased product loss and higher labor costs.  Due to these increases and other various factors, gross margins declined to 31.7% in fiscal 2011 from 40% in fiscal 2010.  Compounding the issue was the company rolled out a unique product based on a specific customer’s requirements.  The product had a successful start-up period only to have the customer decide the product did not meet their specific requirements and the company accepted the return of the product.  The company determined the returned product had no marketability and donated it to a local food bank recording a loss of $1.675 million during fiscal 2011.

At the end of fiscal 2011, the balance sheet reflected cash/cash equivalents of $9.32 million, current assets of $37.29 million, total assets of $56.97 million, current liabilities of $13.28 million and total liabilities of $32.13 million.  Shareholders’ equity decreased 31.4% to $24.84 million during fiscal year 2011.  The decrease in shareholders’ equity was primarily the result of a comprehensive loss of $9.12 million in fiscal 2011 compared to comprehensive income of $4.99 million in fiscal 2010.  The size of the comprehensive loss was driven by an unrecognized actuarial loss of $8.31 million related to a defined benefit pension plan.

Bridgford Foods Corporation is engaged in the processing and distribution of frozen food products as well as refrigerated and snack food products.

Source: Bridgford Foods Corporation

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