November 4, 1996
Orlando, Florida
Galaxy Foods Company (Nasdaq: GALX) is pleased to announce that it has secured an expandable $2 million revolving line of credit from Finova Capital Corporation of New York, New York. The credit line is based on a percentage of eligible accounts receivable and inventory and may be expanded at the Company's request as the percentage of Galaxy's eligible accounts and inventory increases. Finova Capital is a subsidiary of The Finova Group, Inc. (NYSE: FNV) and is one of the largest commerical fiance companies in the nation with more the $7 billion in assets and 41 years of experience.
"This line of credit will give us the ability to grow our business as well as provide future working capital," said Angelo Morini, Galaxy's President. "For the past four quarters, sales have increased dramatically and the Company was profitable in August and September. We fully expect this sales and profit trend to continue. This line of credit could not have happened at a better time," Morini concluded.
Galaxy Foods recently reported sales of $5,133,456 and a net loss of $89,942 ($.00 per share) for the Company's second quarter ended September 30, 1996 versus sales of $511,301 and a net loss of $770,691 ($.03 per share) for the same period one year ago.
Galaxy Foods Company produces a complete line of healthy cheese and cheese related products for the retail, food service and industrial markets. Galaxy Foods is the inventor and originator of form�gg, perfectly balanced nutritional products which are low in fat, have no cholesterol and no lactose and contain more vitamins and minerals than conventional cheese. Other brands names include Soyco�, Soymage�, and Lite Bakery�. For more information, contact Rebecca Barksdale at 407-855-5500, extension 105.
