10-year

10-Year Anniversary Promotion (20% off)

Join GuruFocus Premium Membership Now for Only $279/Year

Once a decade discount

Save up to $500 on Global Membership.

Don't Miss It !

Free 7-day Trial
All Articles and Columns »

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

November 13, 2009 | About:
10qk

10qk

18 followers
Food Technology Service Inc. (VIFL) 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.

Highlight of Business Operations:

Benefit of Tax

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.



Read the The complete Report

About the author:

10qk
GuruFocus - Stock Picks and Market Insight of Gurus

Rating: 2.5/5 (2 votes)

Comments

Please leave your comment:


Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial
FEEDBACK