January 26, 1998
Orlando, FL
Contact: Rebecca Barksdale
(407) 855-5500, extension 105
GALAXY FOODS ANNOUNCES RECORD THIRD QUARTER AND NINE MONTH PROFITS
Orlando, FL (January 26, 1998)...Galaxy Foods Company (NASDAQ: GALX), makers of the world's most complete line of healthy cheese and dairy-related products, today announced record profits for the quarter ended December 31, 1997 of $198,615 and cumulative net profits of $347,128 for the nine month period ended December 31, 1997. These three consecutive quarters of profit and record earnings represent a major improvement and new positioning for the Company. Profits for the third quarter and nine month period ended December 31, 1997 represent significant improvements of $773,737 and $1,451,425 over the corresponding periods in the preceding year. Sales for the third quarter totaled $4,568,397 and nine month sales of $15,483,848 are up 20.4% over sales of $12,864,562 for the same period last year. Gross margin for the third quarter improved by 17% to 29.1% over the second quarter of this fiscal year. The Company also reported net income per common share of $0.01 for the nine months ended December 31, 1997.
Angelo S. Morini, Galaxy's President stated, "The third quarter profits and improved gross margin percentages are the beginning of a process of continual growth for the company. Galaxy is now on track with a vehicle that is truly contemporary and complete for our industry. Our people, plant, financial line, and products are all proven, in place, and ready for rapid growth. We presently have a production capacity of $350 million annually and all Galaxy needs to do is focus on the huge $100 billion United States and $500 billion worldwide potential. It's a matter of sales and marketing; everything else is done. With health food sales growing dramatically in the United States and worldwide, the opportunity is phenomenal."
Morini further stated, "The number one position and major success our Soyco retail products enjoy in the health food industry is now happening in the mass market. Sales of Galaxy's Veggie line of soy-based cheese products is number one of its type in the country. This product line is sold in dairy and produce sections of supermarkets across the country and abroad. Other Galaxy lines are also experiencing similar success in the mass market. A major pizza chain with over 700 units nationwide, will soon begin a national roll-out of a Vegetarian pizza made with Galaxy's low-fat formagg mozzarella, an industry first. This is an exciting time for Galaxy and we remain committed to realizing our corporate goals and increasing shareholder value."
Galaxy Foods Company produces a complete line of healthy cheese and dairy-related products for the retail, food service and industrial markets. Galaxy Foods is the inventor and originator of form�gg�, a new, healthier and better way to make cheese and dairy-related products. Form�gg� and other Galaxy branded products are low or no fat, no saturated fat, have low or no cholesterol and no lactose and contain more vitamins and minerals than conventional cheese. Other brands' names include Soyco�, Soymage�, Veggie Slices�, Lite Bakery�, and Wholesome Valley�. For more information, contact Rebecca Barksdale at 407-855-5500, extension 105. You may also obtain more information, including the Monthly Insight Newsletter, through Galaxy's web site at http://www.galaxyfoods.com. To be added to the mailing list for the Monthly Insight Newsletter, call 407-855-5500, extension 307.
