August 15, 2011

Overhill Farms reports Q3 loss 

The sluggish economy and the resulting weak consumer demand had pushed Overhill Farms, Inc. to a difficult third quarter facing a loss of US$0.02/share, or US$331,971, for the period ended July 3, 2011.

Overhill Farms, which supplies prepared frozen food products to retail, private-label, foodservice and airline customers, posted net income of US$930,333, or US$0.06 per share, in the corresponding period one year ago. Sales in the most recent quarter also declined 8.5% from 2010 levels to US$39.7 million.

In a conference call, Overhill Farms management cited several factors that negatively affected the quarterly results, including the loss of business from H.J. Heinz Co. and startup costs related to new retail products it developed for Target Inc. and Boston Market. Company Chairman, President and CEO James Rudis noted that the items in the pipeline for both are expected to produce more positive results in subsequent quarters.

Earlier this week, Overhill Farms announced an agreement to team up with Bellisio Foods on sales management services for the new Boston Market product lines.

Rudis says the deal will give Overhill Farms more flexibility in managing its operations with Boston Market on a national scale, which should have a positive impact on upcoming results. He added that the company remains open to acquisitions, but there is less urgency as its new deals provide other opportunities for growth.