-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, AwBYI24Kt/Q9WV6wUyZe3bn83shcNVllI9oEYzFb+G/HGH1DbMnr9S4ASyJV15Fh mWsM2AlnSgbZgvPotNlyOA== 0000893220-03-000739.txt : 20030429 0000893220-03-000739.hdr.sgml : 20030429 20030429083247 ACCESSION NUMBER: 0000893220-03-000739 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20030429 ITEM INFORMATION: Financial statements and exhibits ITEM INFORMATION: Regulation FD Disclosure FILED AS OF DATE: 20030429 FILER: COMPANY DATA: COMPANY CONFORMED NAME: TASTY BAKING CO CENTRAL INDEX KEY: 0000096412 STANDARD INDUSTRIAL CLASSIFICATION: BAKERY PRODUCTS [2050] IRS NUMBER: 231145880 STATE OF INCORPORATION: PA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-05084 FILM NUMBER: 03667810 BUSINESS ADDRESS: STREET 1: 2801 HUNTING PARK AVE CITY: PHILADELPHIA STATE: PA ZIP: 19129 BUSINESS PHONE: 2152218500 MAIL ADDRESS: STREET 1: 3413 FOX ST CITY: PHILADELPHIA STATE: PA ZIP: 19129 8-K 1 w85934e8vk.txt FORM 8-K DATE OF REPORT: APRIL 29, 2003 SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 ---------------------------------- FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Date of report (Date of earliest event reported): APRIL 29, 2003 TASTY BAKING COMPANY --------------------------------------------------- (Exact Name of Registrant as Specified in Charter) PENNSYLVANIA 1-5084 23-1145880 ------------ ------ ---------- (State or Other Jurisdiction of (Commission (I.R.S. Employer Incorporation or Organization) File Number) Identification No.) 2801 HUNTING PARK AVENUE, PHILADELPHIA, PENNSYLVANIA 19129 - ---------------------------------------------------- ----- (Address of Principal Executive Offices) (Zip Code) Registrant's telephone number, including area code: (215) 221-8500 NOT APPLICABLE ------------------------------------------------------------------------------ (Former Name or Former Address, if Changed Since Last Report) ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS (a) Not applicable (b) Not applicable (c) The following exhibit is filed herewith: Exhibit 99.1 Press Release dated April 29, 2003 ITEM 9. REGULATION FD DISCLOSURE On April 29, 2003, Tasty Baking Company announced its financial results for the first quarter ended March 29, 2003. A copy of the press release is attached to this Report as Exhibit 99.1 and is incorporated herein by reference. The attached exhibit is furnished pursuant to Item 9 and Item 12 of Form 8-K. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. TASTY BAKING COMPANY --------------------------------- (Registrant) Date: April 29, 2003 /S/ David S. Marberger --------------------------------- David S. Marberger Senior Vice President and Chief Financial Officer EXHIBIT INDEX
EXHIBIT NO. DESCRIPTION ----------- ----------- 99.1 Press Release dated April 29, 2003
EX-99.1 3 w85934exv99w1.txt PRESS RELEASE DATED APRIL 29, 2003 EXHIBIT 99.1 [TASTYKAKE BAKERY LOGO] NEWS RELEASE - -------------------------------------------------------------------------------- FOR: FROM: Tasty Baking Company Gregory FCA Communications For More Information: For More Information: David S. Marberger Mary Borneman Chief Financial Officer 610-642-8253 215-221-8500 mary@gregoryfca.com FOR IMMEDIATE RELEASE TASTY BAKING COMPANY REPORTS FIRST QUARTER RESULTS Philadelphia, PA, April 29, 2003 - Tasty Baking Company (NYSE: TBC) today announced financial results for the first quarter ended March 29, 2003. For the first quarter, the Company reported gross sales of $64.4 million, compared to $64.0 million in the same period last year. Net sales for the first quarter were $41.0 million, compared to $40.7 million in the same period last year. Net income and diluted net income per share for the first quarter were $0.5 million and $0.06, respectively, compared to $1.2 million and $0.15, respectively, in the same period last year. Gross sales for the core route business were up 3% in the first quarter versus the same period last year. This favorable performance is primarily due to increased focus and investment in the core route geography. Non-route sales were down 6% in the first quarter, compared to the same period last year, driven by sales declines in the vending channel and the exit from unprofitable business in certain accounts on the west coast. Cost of sales increased 8% in the first quarter, compared to the same period last year. This increase was driven by a 9% case volume increase in the first quarter, compared to the same period last year. Due to price declines and unfavorable product mix experienced in the first quarter, net sales increased only 1% versus the same period last year. This relationship between net sales and cost of sales resulted in a 4.4 percentage point decline in gross margin for the first quarter, compared to the same period last year. Operating expenses for the first quarter were down 2% versus the same period last year, primarily from the closing of the Company thrift stores in the second and fourth quarters of 2002. There were $0.2 million in restructure charge reversals in the first quarter 2003 due to favorable settlements of certain thrift store lease contracts. Charles P. Pizzi, Tasty Baking Company President and Chief Executive Officer, said, "Tasty Baking Company has returned to profitability for the first quarter by earning net income of $0.06 per diluted share. Although this is on target with our first quarter guidance, we are far from satisfied with these earnings and sales results. We are encouraged by the 3% increase in our core route sales, as we have significantly increased our focus in this area. This increase in core route sales is the best quarterly increase since the second quarter of 2001. We have invested in infrastructure and substantially enhanced communications with our independent owner/operators. The sales improvements are starting to reflect these efforts." David S. Marberger, Tasty Baking Company Senior Vice President and Chief Financial Officer, said, "The decline in first quarter net income reflects the continued gross margin erosion that the Company experienced in 2002. Stopping this gross margin decline is a top priority for the Company. In the second quarter, we will begin our strategy of more balanced advertising and promotional spending, and we will kickoff a comprehensive productivity program across the Company. We believe these actions will begin to increase gross margins in the second half of 2003." Marberger added, "Although net income is down for the first quarter, our focus on managing working capital has enabled the Company to reduce total debt by $4 million compared to the same period a year ago." Pizzi concluded, "On April 4, 2003, we outlined the Tasty Baking Company Transformation Plan, which is built on the foundation of our people. We highlighted five pillars of strategic focus in this plan, which are to build brand equity, deliver product innovation, grow core routes, enter new markets, and drive operational excellence. "Although we are in the early stages, the entire organization is executing against this Plan. Our new media program supporting the launch of our improved single serve pies with 20% more fruit is on track for early June. Our core route sales are beginning to respond to the increased management focus and investment, and the productivity improvement program throughout the organization is starting in the second quarter." Tasty Baking Company, (NYSE:TBC), founded in 1914 and headquartered in Philadelphia, Pennsylvania, is one of the country's leading bakers of snack cakes, pies, cookies, and donuts with manufacturing facilities in Philadelphia and Oxford, PA. Tasty Baking Company offers more than 100 products under the Tastykake brand name. For more information on Tasty Baking visit www.tastykake.com. In addition, consumers can send Tastykake products throughout the United States online or by calling 1-800-33-TASTY. # # # Except for historical information contained herein, the matters discussed are forward-looking statements (as such term is defined in the Securities Act of 1933, as amended) that are subject to risks and uncertainties which could cause actual results to differ materially. There are a number of factors that may cause actual results to differ from these forward-looking statements, including the success of marketing and sales strategies and new product development, the price of raw materials, and general economic and business conditions. Other risks and uncertainties that may materially affect the Company are provided in the Company's reports on Forms 10-K and 10-Q filed with the Securities and Exchange Commission from time to time. Please refer to these documents for a more thorough description of these and other risk factors. TASTY BAKING COMPANY AND SUBSIDIARIES CONSOLIDATED HIGHLIGHTS OF OPERATING RESULTS (UNAUDITED) (000'S, EXCEPT PER SHARE AMOUNTS)
13 WEEKS ENDED ------------------------- 3/29/2003 3/30/2002 --------- --------- Gross sales $ 64,372 $ 64,039 Less discounts and allowances (23,388) (23,380) -------- -------- Net sales 40,984 40,659 -------- -------- Cost of sales 27,984 25,954 Depreciation 1,739 1,735 Operating expenses 10,788 10,984 Restructure charge reversal (219) -- Interest expense and other (income), net (51) 88 -------- -------- 40,241 38,761 -------- -------- Income before provision for income taxes 743 1,898 Provision for income taxes (261) (693) -------- -------- Net income $ 482 $ 1,205 ======== ======== Average number of shares outstanding: Basic 8,099 8,050 Diluted 8,099 8,188 PER SHARE OF COMMON STOCK: Net income : Basic $ 0.06 $ 0.15 ======== ======== Diluted $ 0.06 $ 0.15 ======== ======== Cash Dividend $ 0.05 $ 0.12 ======== ========
TASTY BAKING COMPANY AND SUBSIDIARIES CONSOLIDATED HIGHLIGHTS OF BALANCE SHEET (UNAUDITED) (000'S)
3/29/2003 3/30/2002 --------- --------- Current Assets $ 37,576 $ 35,093 Property, Plant, and Equipment, Net 57,245 59,389 Other Assets 22,019 21,366 -------- -------- Total Assets $116,840 $115,848 ======== ======== Current Liabilities $ 19,320 $ 16,116 Long Term Debt 12,431 14,563 Accrued Pension and Other Liabilities 19,561 11,720 Non Pension Postretirement Benefits 17,872 18,072 Shareholders' Equity 47,656 55,377 -------- -------- Total Liabilities and Shareholders' Equity $116,840 $115,848 ======== ======== Total Debt $ 15,804 $ 19,884 ======== ========
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