Specialty Foods Group Income Fund (NEX: HAM.UN.H) today announced financial results for the quarter ended June 28, 2008. The Fund indirectly holds an interest in Specialty Foods Group, Inc.
EBITDA from Continuing Operations for the second quarter of 2008 was $4.9 million compared with $5.5 million in the second quarter of 2007.
Operating income from Continuing Operations for the second quarter of 2008 was $2.7 million compared with $3.0 million for second quarter of 2007. Net sales for the quarter were $71.1 million compared with $71.3 million in the second quarter of 2007. Sales volume decreased by 0.8 million pounds in the same period. This decline was due primarily to a reduction in private label business, which was partially offset by higher net sales and volume in other product lines.
Average selling price increased by $0.03 per pound. However, cost of goods sold increased by $0.02 per pound, and selling, general, and administrative expenses increased by $0.02 per pound. Operating income decreased from $0.08 per pound for the second quarter of 2007 to $0.07 per pound for the second quarter of 2008.
Nathans and SMG have reached an agreement regarding SMG's Motion for Preliminary Injunction filed on March 26, 2008 asking the Court to order Nathan's not to terminate the Agreement until after a trial on the merits. After several months of negotiation, Nathan's agreed not to terminate the Agreement until a date within six months after a trial on the merits and any appeal period has run. The parties filed, and the Court entered, a stipulation formalizing this agreement, which prevented Nathan's termination from taking effect on July 31, 2008.
By the parties' agreement and Order of the Court, the Agreement remains in effect. We continue to abide by the existing contract with Nathan's Famous Systems Inc. ("NFSI") and are taking the appropriate steps to protect our rights within this agreement. -- www.cnxmarketlink.com
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