SALINAS, CALIF. — Despite a substantial loss during fiscal year 2006, Monterey Gourmet Foods said it is poised for a turnaround in 2007 following a strong showing in its fourth quarter.
For the year ended Dec. 31, the company sustained a loss of $3,110,000, which compared with a loss of $537,000 in 2005. The loss was related to the acquisition of Casual Gourmet Foods and costs stemming from the recently completed plant consolidation and operations realignment.
Net sales for the year totaled $94,297,000, an increase of 11% over sales of $85,248,000 in 2005.
Results for the fourth quarter were significantly better than those for the year, with net income totaling $3,110,000. This compared with a loss of $537,000 in the same period last year.
Net sales for the quarter totaled $26,648,000, up 13% from $23,658,000 in the fourth quarter of 2005.
"We are encouraged with the fourth quarter increase in sales, margins and income compared to the previous year, especially because it is a broad increase across all of our brands," said Eric Eddings, president and chief executive officer of Monterey Gourmet Foods.
Looking ahead to 2007, the company sees its fourth-quarter results as an indication of where it’s heading, said Mr. Eddings.
"With the completion of our plant consolidation project, the realignment of our resources, and the expansion of the responsibilities of key individuals from our various subsidiaries across all of our brands, we begin 2007 as one company, with one sales force, and a unified vision for marketing our multiple brands," Mr. Eddings said. "The fourth-quarter results are very encouraging and provide us with a push toward even stronger momentum as we go forward.
"While we still have challenges ahead, we believe our recent achievements validate our strategy and provide us with the roadmap for future success."