NOTE 6- Contingencies and Commitments:
The Company leases certain transportation and computer equipment under operating leases. The terms of the transportation leases provide for annual renewal options and contingent rental payments based upon mileage and adjustments of rental payments based on the Consumer Price Index. Minimum rental payments were $330 in fiscal year 2005, $379 in fiscal year 2004 and $400 in fiscal year 2003. Contingent payments were $132 in fiscal year 2005, $153 in fiscal year 2004 and $168 in fiscal year 2003. Future minimum lease payments are approximately $394 in the each of the years 2006 through 2009 and $330 in 2010.
NOTE 7- Segment Information:
The Company has two reportable operating segments, Frozen Food Products (the processing and distribution of frozen products), and Refrigerated and Snack Food Products (the processing and distribution of refrigerated meat and other convenience foods).
The Company evaluates each segment’s performance based on revenues and operating income. Selling and general administrative expense include corporate accounting, information systems, human resource and marketing management at the corporate level. These activities are allocated to each operating segment based on revenues and/or actual usage.
The following segment information is for the years ended October 28, 2005, October 29, 2004, and October 31, 2003:
2005
|
Frozen Food
Products
|
Refrigerated
and
Snack Food Products
|
Other
|
Elimination
|
Totals
|
|
|
|
|
|
|
Sales |
$ 47,168 |
$ 83,677 |
$ — |
$ — |
$ 130,845 |
Intersegment sales |
— |
4,038 |
— |
(4,038 ) |
— |
|
|
|
|
|
|
Net sales |
47,168 |
87,715 |
— |
(4,038 ) |
130,845 |
|
|
|
|
|
|
Cost of products sold, excluding depreciation |
26,479 |
63,014 |
— |
(4,038 ) |
85,455 |
Selling, general and administrative expenses |
13,160 |
30,233 |
— |
— |
43,393 |
Depreciation |
1,865 |
2,386 |
— |
— |
4,251 |
|
|
|
|
|
|
|
41,504 |
95,633 |
— |
(4,038 ) |
133,099 |
|
|
|
|
|
|
Income before taxes |
5,664 |
(7,918 ) |
— |
— |
(2,254 ) |
Provision for taxes on income |
2,004 |
(3,315 ) |
— |
— |
(1,311 ) |
|
|
|
|
|
|
Net income (loss) |
$ 3,660 |
$ (4,603 ) |
$ — |
$ — |
$ (943 ) |
|
|
|
|
|
|
Total assets |
$ 12,394 |
$ 32,747 |
$ 27,822 |
$ — |
$ 72,963 |
Additions to property, plant and equipment |
$ 549 |
$ 1,419 |
$ 64 |
$ — |
$ 2,032 |
2004
|
Frozen Food
Products
|
Refrigerated
and
Snack Food
Products
|
Other
|
Elimination
|
Totals
|
|
|
|
|
|
|
Sales |
$ 44,240 |
$ 93,625 |
$ — |
$ — |
$ 137,865 |
Intersegment sales |
— |
3,943 |
— |
(3,943 ) |
— |
|
|
|
|
|
|
Net sales |
44,240 |
97,568 |
— |
(3,943 ) |
137,865 |
|
|
|
|
|
|
Cost of products sold, excluding depreciation |
25,644 |
68,605 |
— |
(3,943 ) |
90,306 |
Selling, general and administrative expenses |
13,541 |
30,187 |
— |
— |
43,728 |
Gain on sale of equity securities |
— |
(553 ) |
— |
— |
(553 ) |
Depreciation |
1,967 |
2,378 |
— |
— |
4,345 |
|
|
|
|
|
|
|
41,152 |
100,617 |
— |
(3,943 ) |
137,826 |
|
|
|
|
|
|
Income before taxes |
3,088 |
(3,049 ) |
— |
— |
39 |
Provision for taxes on income |
1,173 |
(1,158 ) |
— |
— |
15 |
|
|
|
|
|
|
Net income (loss) |
$ 1,915 |
$ (1,891 ) |
$ — |
$ — |
$ 24 |
|
|
|
|
|
|
Total assets |
$ 12,943 |
$ 36,433 |
$ 25,566 |
$ — |
$ 74,942 |
Additions to property, plant and equipment |
$ 211 |
$ 3,149 |
$ 84 |
$ — |
$ 3,444 |
|
