Food Technology Service Inc. (VIFL, Financial) filed Quarterly Report for the period ended 2009-09-30.
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 $4.9 million; its shares were traded at around $1.8 with a P/E ratio of 4.2 and P/S ratio of 2.
Loss Carryovers 23,747 71,006
- -
Net Income $ 343,491 $186,859
= =
Net Income per Common Share
-Basic $ 0.125 $ 0.068
-Diluted $ 0.123 $ 0.068
Benefit of Tax
Loss Carryovers 155,910 149,411
- -
Net Income $ 691,289 $ 393,187
= =
Net Income per Common Share
-Basic $ 0.251 $ 0.143
-Diluted $ 0.244 $ 0.143
Reconciliation of Net Income to Net Cash
Provided by Operations
Net Income $691,289 $ 393,187
Adjustments to Reconcile Net Income to
Cash Provided by Operations:
Depreciation 290,116 282,475
Amortization 2,316 1,714
Accrued Interest - 40,776
Deferred Income Taxes (281,000) -
(Increase) Decrease in Receivables 56,462 62,142
(Increase) Decrease in Prepaids (4,424) (12,387)
Increase (Decrease) in Payables and Accruals 80,477 26,475
- -
Net Cash Provided by Operating
Activities $ 835,236 $ 794,382
= =
Stock option with an
exercise price of $4.96 - 1,500 - 1,500
Stock option with an
exercise price of $4.56 2,500 2,500 2,500 2,500
Stock option with an
exercise price of $4.12 7,000 7,000 7,000 7,000
Stock option with an
exercise price of $3.56 2,250 2,250 2,250 2,250
Stock option with an
exercise price of $3.36 2,500 2,500 2,500 2,500
Stock option with an
exercise price of $3.28 10,000 10,000 10,000 10,000
Stock option with an
exercise price of $3.24 100,000 100,000 100,000 100,000
Stock option with an
exercise price of $2.52 10,000 10,000 10,000 10,000
Stock option with an
exercise price of $2.57 20,000 20,000 20,000 20,000
Stock option with an
exercise price of $2.18 11,500 11,500 11,500 11,500
Food Technology Service, Inc. had revenues of $547,685 during the third quarter
of 2009 compared to revenues of $683,409 for the same period in 2008. This is
a decrease of approximately 19.9 percent. Management attributes the decrease
in revenue in the third quarter of 2009 to the loss of a large customer. As
previously reported, the customer, responsible for approximately 25% of our
revenue for the year ended December 31, 2008, was acquired by a third party and
their operations were moved to the Southwest United States at the end of the
first quarter of 2009. This decrease in revenue during the third quarter had
little effect on revenue for the nine months ended September 30, 2009 due to a
settlement fee of $85,229 received in the second quarter for termination of a
warehouse lease by the lost customer. For the first three quarters of 2009,
the Company had revenues of $1,875,239 which is comparable to revenues of
$1,865,344 for the first three quarters of 2008.
The Company had net income (with increased tax credit benefit) during the third
quarter of 2009 of $343,491 and income before taxes (without increased tax
credit benefit) during the third quarter of 2009 of $62,491. These figures
compare to $186,859 during the third quarter of 2008 and represent a decrease
in income before taxes of about 66 percent and an increase in net income of
about 84 percent. For the first three quarters of 2009, the Company had income
before taxes of $410,289 and net income of $621,289. For the first three
quarters of 2008, the Company had net income of $393,187. Income before taxes
for the first three quarters of 2009 increased by about 4 percent compared to
the first three quarters of 2008. Net income for the first three quarters of
2009 increased approximately 58% over the same period in 2008. Earnings per
share for the first three quarters of 2009 were $0.251 compared to $0.143 for
the same period in 2008.
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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 $4.9 million; its shares were traded at around $1.8 with a P/E ratio of 4.2 and P/S ratio of 2.
Highlight of Business Operations:
Benefit of TaxLoss Carryovers 23,747 71,006
- -
Net Income $ 343,491 $186,859
= =
Net Income per Common Share
-Basic $ 0.125 $ 0.068
-Diluted $ 0.123 $ 0.068
Benefit of Tax
Loss Carryovers 155,910 149,411
- -
Net Income $ 691,289 $ 393,187
= =
Net Income per Common Share
-Basic $ 0.251 $ 0.143
-Diluted $ 0.244 $ 0.143
Reconciliation of Net Income to Net Cash
Provided by Operations
Net Income $691,289 $ 393,187
Adjustments to Reconcile Net Income to
Cash Provided by Operations:
Depreciation 290,116 282,475
Amortization 2,316 1,714
Accrued Interest - 40,776
Deferred Income Taxes (281,000) -
(Increase) Decrease in Receivables 56,462 62,142
(Increase) Decrease in Prepaids (4,424) (12,387)
Increase (Decrease) in Payables and Accruals 80,477 26,475
- -
Net Cash Provided by Operating
Activities $ 835,236 $ 794,382
= =
Stock option with an
exercise price of $4.96 - 1,500 - 1,500
Stock option with an
exercise price of $4.56 2,500 2,500 2,500 2,500
Stock option with an
exercise price of $4.12 7,000 7,000 7,000 7,000
Stock option with an
exercise price of $3.56 2,250 2,250 2,250 2,250
Stock option with an
exercise price of $3.36 2,500 2,500 2,500 2,500
Stock option with an
exercise price of $3.28 10,000 10,000 10,000 10,000
Stock option with an
exercise price of $3.24 100,000 100,000 100,000 100,000
Stock option with an
exercise price of $2.52 10,000 10,000 10,000 10,000
Stock option with an
exercise price of $2.57 20,000 20,000 20,000 20,000
Stock option with an
exercise price of $2.18 11,500 11,500 11,500 11,500
Food Technology Service, Inc. had revenues of $547,685 during the third quarter
of 2009 compared to revenues of $683,409 for the same period in 2008. This is
a decrease of approximately 19.9 percent. Management attributes the decrease
in revenue in the third quarter of 2009 to the loss of a large customer. As
previously reported, the customer, responsible for approximately 25% of our
revenue for the year ended December 31, 2008, was acquired by a third party and
their operations were moved to the Southwest United States at the end of the
first quarter of 2009. This decrease in revenue during the third quarter had
little effect on revenue for the nine months ended September 30, 2009 due to a
settlement fee of $85,229 received in the second quarter for termination of a
warehouse lease by the lost customer. For the first three quarters of 2009,
the Company had revenues of $1,875,239 which is comparable to revenues of
$1,865,344 for the first three quarters of 2008.
The Company had net income (with increased tax credit benefit) during the third
quarter of 2009 of $343,491 and income before taxes (without increased tax
credit benefit) during the third quarter of 2009 of $62,491. These figures
compare to $186,859 during the third quarter of 2008 and represent a decrease
in income before taxes of about 66 percent and an increase in net income of
about 84 percent. For the first three quarters of 2009, the Company had income
before taxes of $410,289 and net income of $621,289. For the first three
quarters of 2008, the Company had net income of $393,187. Income before taxes
for the first three quarters of 2009 increased by about 4 percent compared to
the first three quarters of 2008. Net income for the first three quarters of
2009 increased approximately 58% over the same period in 2008. Earnings per
share for the first three quarters of 2009 were $0.251 compared to $0.143 for
the same period in 2008.
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