Galaxy Nutrition 1Q Sales Beat Expectations, EBITDA Improves

Galaxy Nutrition 1Q Sales Beat Expectations, EBITDA Improves

ORLANDO, Fla.--Galaxy Nutritional Foods Inc. (AMEX:GXY) posted a 5-percent revenue increase and a net loss for its first quarter ended June 30. Net sales reached $11.8 million, up from $11.3 million sold a year ago, and EBITDA (earnings before income taxes, depreciation and amortization) hit a positive $.45 million. However, net loss for the quarter was $2.2 million or $.26 per share, compared to a net gain of $.69 million or $.07 per share a year ago.

The company attributed the EBITDA improvement to efficiencies in its new production lines. Management further noted that sales growth would have been even higher had the new production equipment been operational throughout the entire quarter. Shortages resulting from less-than-optimal production resulted in discounted prices for Galaxy products.