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October 15, 1998
Orlando, FL
Contact: Tracy Rushwin
(407) 855-5500, extension 105
Galaxy Fods Announces Record Profits and a Dramatic Increase in Sales
ORLANDO, FLORIDA (October 15, 1998) - Galaxy Foods Company (NASDAQ: GALX), makers of healthy cheese and dairy-related products, today announced preliminary results for the quarter ended September 30, 1998. The Company reported record net income of $447,502 for the quarter, compared to profits of $125,392 for the same quarter one year ago and profits of $147,484 reported for the quarter ended June 30, 1998. This marks the sixth consecutive quarter of profitability for Galaxy. The Company also announced net sales of $7.6 million for the three months as compared to sales of $5.0 million for the same quarter one year ago, an increase of over 50%. Gross margins for the quarter ended September 30, 1998 were 31.1%, a substantial increase over gross margins of 24.9% for the same quarter last year.
Angelo S. Morini, Galaxy's president stated, "We continue to focus our sales efforts on the Veggie line of products. As a result, we have seen a strong, steady growth in high margin, retail sales. We are also promoting the Veggie line of products to our foodservice customers in an effort to cross-advertise and further increase brand awareness. These increases in retail sales have led to an improvement in gross margins for the Company. We expect that with the growth of our Veggie line and an ongoing effort to reduce costs, these improved margins will continue throughout fiscal 1999."
| Three
Months Ended September 30, |
Six
Months Ended September 30, |
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| 1998 | 1997 | 1998 | 1997 | |
| Sales | 7,583,838 | 5,031,997 | 13,346,376 | 10,915,451 |
| Cost of Goods Sold | 5,224,605 | 3,781,453 | 9,055,899 | 8,551,410 |
| Gross Margin | 2,359,233 | 1,250,544 | 4,290,477 | 2,364,041 |
| Operating Expenses | 1,859,241 | 1,137,721 | 3,634,578 | 2,198,169 |
| Other Expenses | 52,490 | (12,569) | 60,913 | 17,359 |
| Net Income | 447,502 | 125,392 | 594,986 | 148,513 |
Galaxy Foods Company is the inventor and originator of a new, healthier and better way to make cheese and dairy-related products. Our products are primarily low or no fat (no saturated fat), have no cholesterol and no lactose and contain more vitamins and minerals than conventional cheese. Galaxy brand names include formägg, Soyco, Soymage, Veggie Slices, Wholesome Valley, and Lite Bakery. For more information, contact Tracy Rushwin at (407) 855-5500, extension 105. You may also obtain more information from our site on the World Wide Web at http://www.galaxyfoods.com (best viewed through Netscape Navigator).