Gardenburger Returns to Profitability

Gardenburger Returns to Profitability

PORTLAND,Ore.--Gardenburger Inc. (NASDAQ:GBUR) released results for its first quarterended Dec. 31, 1999, spotlighting its return to profitability on the strength ofincreased gross margin. Revenues peaked at $18.8 million, compared to $28.7million sold in the same period the previous year. Gross margin improved to 53percent of sales, up one point over the year prior. Expenses settled at $6.9million, a 36-percent decrease from a year ago. Net income climbed to $.44million from $.32 million earned the previous year. Preferred dividends for thequarter of $9.22 million left available earnings per share at a loss of $.99 pershare, compared to $.04 per share earned in the comparable 1998 quarter that hadno preferred dividends.

The company reported that, according to AC Nielsen data for the week endedJan. 8, 2000, its market share of veggie burgers increased from 37.7 percent to54.5 percent. The company attributed this gain to trade dealing with grocerycustomers, rather than more expensive consumer marketing tactics and spendingsuch as coupon releases and advertising.

GBUR also announced that five year employee Lorraine Crawford has beenappointed controller and acting chief financial officer, replacing Rich Dietz,who has left for a position in BuySellBid.com, an e-commerce company. Crawfordhas more than 20 years of financial management experience at various majorcompanies and has both CPA and CMA certifications.