CHINO, Calif., Nov. 13 /PRNewswire-FirstCall/ -- Provena Foods Inc. (AMEX:PZA) had net earnings of $202,406 for the 3rd quarter and $641,750 for the 1st nine months of 2006 compared to net losses of $211,060 and $532,351 a year ago. The Company's sales were up 8.6% in the 3rd quarter and up 6% in the 1st nine months of 2006 compared to the same periods of 2005. The meat division provided the increases in earnings and sales in both periods.
On September 6, 2006, the Company announced that it had entered into a definitive merger agreement with Hormel Foods Corporation whereby, subject to customary conditions and approval of the Company's shareholders, Hormel Foods will acquire the Company for 0.08 shares of Hormel Foods common stock for each share of Company common stock. Provena shareholders of record at the close of business on Monday, October 23, 2006 will be entitled to notice of, and to vote at, the special meeting, which will be held at 11:00 a.m. local time on Thursday, December 14, 2006 at 5010 Eucalyptus Avenue, Chino, California.
For Further Information Contact: Tom Mulroney of Provena Foods Inc. (909) 627-1082 CONDENSED STATEMENT Three Months Ended Nine Months Ended
OF OPERATIONS September 30, September 30,
(Unaudited) 2006 2005 2006 2005 Net Sales $15,162,399 $13,965,713 45,697,422 43,126,885 Cost of Sales 13,801,327 13,401,238 41,588,529 40,916,460 Gross profit 1,361,072 564,475 4,108,893 2,210,425 Operating Expenses:
Distribution 371,255 408,222 1,230,622 1,249,070
General and
administrative 635,321 489,691 1,844,947 1,538,313 Operating loss 354,496 (333,438) 1,033,324 (576,958) Interest expense
and other financing
costs, net (142,471) (164,372) (400,918) (625,918)
Other Income, net 125,285 147,605 453,622 360,480 Loss before income
taxes 337,310 (350,205) 1,086,028 (842,396) Income tax benefit (134,904) 139,145 (444,278) 310,045 Net loss 202,406 (211,060) 641,750 (532,351) Loss per share:
Basic and diluted 0.06 (0.06) 0.18 (0.16) Shares used in
computing loss
per share
Basic and diluted: 3,514,685 3,412,842 3,495,337 3,382,503
DATASOURCE: Provena Foods Inc.
CONTACT: Tom Mulroney of Provena Foods Inc., +1-909-627-1082
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