Sun City Industries Reports Twelve Months
And Fourth Quarter Results
FORT LAUDERDALE, Fla., May 29, 1997 - The following was issued
today by Sun City Industries, Inc. (AMEX: SNI):
Sun City Industries, Inc., which until the end of fiscal 1996
operated mainly as a processor and distributor of shell eggs
along the eastern seaboard of the United States, today reported
its twelve months and fourth quarter results as primarily a
foodservice distribution company with its major sales
concentration in the State of Florida.
For the fourth quarter, Sun City is reporting a net loss of
$854,266 or $.59 per share versus a net loss of $1,184,922 or
$.82 per share for the same period a year ago. Sales for the
fourth quarter amounted to $17,649,386 or 28.6% below the
$24,715,194 reported for the same period a year earlier.
For the fiscal year, the Company incurred a net loss of
$1,167,087 or $.8l per share, substantially below the loss of
$2,761,305 or $1.92 per share reported for the previous fiscal
year. Sales for the fiscal year reached $68,245,383 versus
$91,084,629 or 25.1% below the prior year. The sales decreases
for the fiscal year and fourth quarter are a direct result of the
sale and elimination of three egg operations sold during fiscal
1996 and a decline in sales at the Port Richey, Florida
As a result of the transition from an egg processing and
distribution company to that of primarily a foodservice
distributor, cost of sales decreased 1.2% from 95.2% in fiscal
1996 to 94.0% in the current fiscal year, while selling, general
and administrative expense held steady at 6.5% for both fiscal
Although the Company by eliminating its egg processing
operations reduced its losses appreciably, it fell victim to
several factors which contributed to the negative fiscal year and
fourth quarter results:
- Reduced sales at the Port Richey operation, adversely
affected operating results.
- Relocation costs, expenses and high write-offs experienced
in the Produce division during the period we relocated to larger
facilities, reduced profits substantially in this division.
- An overall greater provision and reserve for bad debts and
doubtful accounts was required by year end.
- And lastly, we were faced with much higher effective
interest rates and increased costs associated with the Company's
default with its major lender for the second half and fourth
quarter of the fiscal year.
As a result of a major liquidity problem experienced during
the second half of the fiscal year, the Company was unable to
make its interest payments on the Senior Subordinated Convertible
Debentures due August 1, 1996 and February 1, 1997 amounting to
$119,000. As a result, the $1.4 million of Bonds are being
classified as a current liability.
Due to the losses experienced the past two years, the recent
default with our major lender and our failure to make required
interest payments to our bondholders, the report of the
independent accountants questions the Company's ability to
continue, as a going concern. Additionally, as a result of our
poor financial condition, the Company no longer satisfies the
guidelines for continued listing on the American Stock Exchange.
At this time, there can be no assurance that the Company will
It is with the deepest regret, we announce the unfortunate
passing of our beloved President, Mr. Gustave Minkin on May 25,
1997. Mr. Minkin for the past 27 years has been a dedicated,
devoted and loyal member of our management team and we will all
miss him dearly.
ASSETS Feb. 1, 1997
Feb. 3, 1996
Current assets $8,093,896
$10,520,516 Property, plant &
net of depreciation 1,531,788
Property held for sale 504,849
Other assets 535,648
LIABILITIES AND STOCKHOLDERS'
Current liabilities $7,672,559
$6,378,452 Long term debt
Other liabilities 123,106
99,028 Stockholders' equity
Fiscal Year Ended
Feb. 1, Feb. 3,
Gross Profit 4,115,872
Interest Expense 893,135
Net (Loss) $(1,167,087)
(Loss) Per Common
Shares Used 1,447,902
SOURCE Sun City Industries, Inc./CONTACT: Malvin Avchen, Sun
City Industries, 954-730-3333/ (SNI)