Galaxy Sees 2Q04 Loss
Published: Friday, December 05, 2003
Galaxy Nutritional Foods Inc. (Amex: GXY) saw 2Q04 net loss of $228,145 vs. net income of $732,245 for 2Q03. After non-cash preferred stock dividends and non-cash preferred stock accretion for estimated redemption value, 2Q04 net loss available to common shareholders was $933,385 or $.06/diluted share vs. 2Q03 net income of $541,545 or $.04 diluted share.
Operating income for the recent quarter was $41,927 vs. $1.7 million for 2Q03. The dairy-alternatives-products maker notes that in 2Q04 the company incurred a $128,258 expense for non-cash compensation vs. income of $1,348,089 for non-cash compensation in 2Q03.
In a Nov. 14 announcement, Galaxy cites market pressures resulting in lower sales, including the fact that “the number of consumers shopping in the retail grocery stores is down vs. the prior year due to the further emergence and presence of Wal-Mart,” where Galaxy's presence is “growing but still limited.” A trend toward low-carbohydrate foods is another factor, says the maker of brands including Veggie Slices and Wholesome Valley.