Gross Margin–Refrigerated and Snack Food Products Segment
The gross margin before depreciation in the Refrigerated and Snack Food Products segment in fiscal 2009 increased from 31.3% to 39.6%, in fiscal 2009, primarily due to lower meat commodity costs and lower delivery costs when compared to the prior fiscal year. Increased in-sourcing of major product lines reduced overhead costs per unit. Cost decreases related to utilities, employee benefits, property taxes and operating supplies also favorably impacted our gross margin in this segment.
Selling, General and Administrative Expenses-Consolidated
Selling, general and administrative expenses in fiscal 2009 decreased $1,532 (3.5%) when compared to the prior year. The decrease in this category did not directly correspond to the change in sales.
The table below summarizes the primary expense variances:
| |
|
|
|
|
Expense/Loss |
|
| |
|
October 30, 2009 |
|
|
October 31, 2008 |
|
|
Increase (Decrease) |
|
Fuel |
|
|
$2,369 |
|
|
|
$4,158 |
|
|
|
$(1,789 |
) |
Cash surrender value (gain) / loss |
|
|
(323 |
) |
|
|
928 |
|
|
|
(1,251 |
) |
Wages and bonus |
|
|
17,369 |
|
|
|
16,070 |
|
|
|
1,299 |
|
Benefits-health/life |
|
|
1,997 |
|
|
|
2,895 |
|
|
|
(898 |
) |
Benefits-workers compensation |
|
|
700 |
|
|
|
1,073 |
|
|
|
(373 |
) |
Bad debt provision (recovery) |
|
|
78 |
|
|
|
(194 |
) |
|
|
272 |
|
Interest income |
|
|
(32 |
) |
|
|
(272 |
) |
|
|
240 |
|
Other |
|
|
19,562 |
|
|
|
18,594 |
|
|
|
968 |
|
Total |
|
|
$41,720 |
|
|
|
$43,252 |
|
|
|
$(1,532 |
) |
Selling, General and Administrative Expenses-Frozen Food Products Segment
Selling, general and administrative expenses in the Frozen Food Products segment in fiscal 2009 increased by $1,007 (6.4%) compared to the prior year. This category increased primarily as a result of increased profit sharing expenses as a result of higher segment profitability. The allocation of corporate support changes also increased due to higher segment revenues. Expenses related to advertising also increased compared to the prior year.
Selling, General and Administrative Expenses-Refrigerated and Snack Food Products Segment
Selling, general and administrative expenses in the Refrigerated and Snack Food segment in fiscal 2009 decreased $2,539 (9.2%) compared to the prior year. This decrease was primarily caused by lower fuel, healthcare and workers’ compensation expenses. Outside storage expense also declined compared to the prior fiscal year.
Depreciation Expense-Consolidated
Depreciation expense in fiscal 2009 decreased by $550 (16.8%) compared to the prior year. The decrease in depreciation expense reflects lower capital expenditure levels in recent years and certain significant assets becoming fully depreciated in the 2009 fiscal year.
Depreciation Expense-Frozen Food Products Segment
Depreciation expense in the Frozen Food Products segment in fiscal 2009 decreased by $80 (10.2%) compared to the prior year. The decrease in depreciation expense reflects lower capital expenditure levels in recent years and certain significant assets becoming fully depreciated in the 2009 fiscal year.
Depreciation Expense- Refrigerated and Snack Food Products Segment
Depreciation expense in the Refrigerated and Snack Food segment in fiscal 2009 decreased by $333 (15.2%) compared to the prior year. This decline reflects lower capital expenditure levels in recent years.
