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Food Technology Service Inc. Reports Operating Results (10-Q)

August 14, 2009 | About:

Food Technology Service Inc. (VIFL) filed Quarterly Report for the period ended 2009-06-30.

Food Technology Service Inc. owns and operates an irradiation facility that uses gamma radiation produced by Cobalt 60 to treat or process various foods for insect disinfestation shelf life extension and control of certain disease causing microorganisms. The company does not now nor does it intend to produce or sell foods. The company will market its irradiation process to growers and producers as a substitute for and/or a complement to other food processing methods such as canning freezing heat pasteurization and fumigation. Food Technology Service Inc. has a market cap of $5.9 million; its shares were traded at around $2.13 with a P/E ratio of 5.1 and P/S ratio of 2.4.

Highlight of Business Operations:

JUNE 30, DECEMBER 31,

2009 2008

ASSETS - -

- (unaudited) *

Current Assets:

Cash $ 845,335 $ 216,978

Accounts Receivable Less Allowance For

Doubtful Accounts of $2,500 in 2009

and 2008 222,580 268,305

Prepaid Expenses 60,044 33,329

- -

Total Current Assets 1,127,959 518,612

- -

Property and Equipment:

Cobalt 4,404,543 4,404,543

Furniture and Equipment 1,921,203 1,899,887

Building 3,282,029 3,282,029

Less Accumulated Depreciation (5,816,845) (5,619,783)

- -

Total 3,790,930 3,966,676



Common Stock $.01 par value, 5,000,000 shares authorized,

2,756,458 shares issued and

outstanding on June 30, 2009 and

December 31, 2008 27,564 27,564

Paid in Capital 12,163,444 12,147,444

Deficit (6,631,701) (6,979,499)

Treasury Stock, 5,155 shares at cost (18,491) (18,491)

- -

Total Stockholders\' Equity 5,540,816 5,177,018

- -

Total Liabilities and Stockholders\' Equity $ 6,270,543 $ 5,836,942

= =



Benefit of Tax

Loss Carryovers 63,052 49,314

- -

Net Income $ 165,926 $129,773

= =

Net Income per Common Share $0.060 $0.047

= =



Benefit of Tax

Loss Carryovers 132,163 78,404

- -

Net Income $ 347,798 $ 206,327

= =

Net Income per Common Share ** $0.126 $0.075

= =



Food Technology Service Inc. had revenues of $652,724 during the second quarter

of 2009 compared to revenues of $623,061 for the same period in 2008. This is

an increase of approximately 4.8 percent. The Company had net income during

the second quarter of 2009 of $165,926 compared to net income of $129,773 during

the second quarter of 2008. This is an increase of approximately 27.8 percent.

For the first half of 2009, the Company had revenues of $1,327,554 and net

income of $347,798. Revenues during the first half of 2008 were $1,181,930 and

the Company had net income of $206,327. Revenues increased by about 12.3

percent and net income increased by approximately 68 percent in the first half

of 2009 compared to the same period in 2008.



Included in revenue for the quarter and six month period ended June 30, 2009 is

a settlement fee of $85,229 relating to the termination of a warehouse lease

with a former customer. As previously reported, the customer, responsible for

approximately 25% of our revenue for the year ended December 31, 2008 and the

first quarter of 2009, was acquired by a third party and as a result, their

operations were moved to the Southwest United States. Without the settlement

fee, revenue from operations for the quarter and six months ended June 30, 2009

would have been $567,495 and $1,242,325 respectively. Cost comparisons in the

following paragraphs are presented both with and without the lease settlement

revenue.



Read the The complete Report

Rating: 5.0/5 (1 vote)

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