Color Spot Nurseries, Inc. Reports Results for the Six Months Ended December 31, 2000

Apr 03, 2001, 01:00 ET from Color Spot Nurseries, Inc.

    NEW YORK, April 3 /PRNewswire/ -- Color Spot Nurseries, Inc. ("the
 Company") today reported results for the six months ended December 31, 2000.
 As indicated in form 8K filed on August 24, 2000, the Company elected to
 change its fiscal year end from June 30 to December 31 and as a result has
 filed a 10K for the six months ended December 31, 2000 ("the Transition
 Period").
     Dick Parker, the Company's Chief Executive Officer, said: "Management
 believes the growth of the industry and Color Spot's leading position in its
 markets remains strong.  Much of what impacted our recent performance relates
 to re-positioning the Company to maximize profits going forward."
     For the Transition Period, the Company recorded net sales of $74.5 million
 and an EBITDA loss of $5.4 million versus the comparable period in 1999 of
 $75.8 million in sales and $31 thousand in EBITDA.  As previously reported,
 Color Spot made the decision to close four facilities to reduce excess
 production capacity.  These facilities contributed $3.9 million of the EBITDA
 loss.  In the continuing facilities, sales levels and inventory values were
 affected by crops damaged from the use of a contaminated chemical, incremental
 costs related to reworking and discounting product from the previous year, and
 inefficient distribution.  Additionally, lower sales volume in the Company's
 Southwest Division, negatively impacted by poor weather, was offset by
 increased sales of Christmas trees, however at lower gross margins.
     Mr. Parker continued: "Factors dating back to last fiscal year continued
 to affect us as we worked through the carryover product resulting from last
 season's production mix and the high costs associated with closing four
 underperforming facilities.  With these issues now resolved and a strengthened
 management team, the Company is well positioned for the future."
     The Company announced the addition of Dave Barrett to the management team
 as Color Spot's Chief Operating Officer.  Mr. Barrett, formerly the President
 and CEO of Scovill Fasteners brings over 30 years of experience in general
 management and operations.
     The Company will be holding a conference call on Wednesday at 1:00 pm EST
 to further discuss the details of the results of the Transition Period.  A
 replay of the conference call will also be available at (800) 633-8284
 reservation number 18496558.
 
     Color Spot is the largest wholesale nursery in the United States, based on
 revenue and greenhouse square footage. The Company provides a wide assortment
 of high-quality plants as well as extensive merchandising services primarily
 to leading home centers and mass merchants, such as Home Depot, Home Base,
 Wal-Mart, and Kmart.  The Company distributes products to over 3,800 retail
 and commercial customers, representing over 10,000 locations, primarily in the
 western and southwestern regions of the United States.
 
     Certain statements in this release constitute forward-looking statements.
 Such forward looking statements involve risks which may cause actual results
 and performance of the Company to be materially different from those expressed
 or implied by the forward-looking statements.  Such factors include the
 following: general economic and business conditions; weather patterns; quality
 of management; and success of business and financing strategy.  For more
 information, see the Company's annual and quarterly reports filed with the
 Securities and Exchange Commission.
 
 

SOURCE Color Spot Nurseries, Inc.
    NEW YORK, April 3 /PRNewswire/ -- Color Spot Nurseries, Inc. ("the
 Company") today reported results for the six months ended December 31, 2000.
 As indicated in form 8K filed on August 24, 2000, the Company elected to
 change its fiscal year end from June 30 to December 31 and as a result has
 filed a 10K for the six months ended December 31, 2000 ("the Transition
 Period").
     Dick Parker, the Company's Chief Executive Officer, said: "Management
 believes the growth of the industry and Color Spot's leading position in its
 markets remains strong.  Much of what impacted our recent performance relates
 to re-positioning the Company to maximize profits going forward."
     For the Transition Period, the Company recorded net sales of $74.5 million
 and an EBITDA loss of $5.4 million versus the comparable period in 1999 of
 $75.8 million in sales and $31 thousand in EBITDA.  As previously reported,
 Color Spot made the decision to close four facilities to reduce excess
 production capacity.  These facilities contributed $3.9 million of the EBITDA
 loss.  In the continuing facilities, sales levels and inventory values were
 affected by crops damaged from the use of a contaminated chemical, incremental
 costs related to reworking and discounting product from the previous year, and
 inefficient distribution.  Additionally, lower sales volume in the Company's
 Southwest Division, negatively impacted by poor weather, was offset by
 increased sales of Christmas trees, however at lower gross margins.
     Mr. Parker continued: "Factors dating back to last fiscal year continued
 to affect us as we worked through the carryover product resulting from last
 season's production mix and the high costs associated with closing four
 underperforming facilities.  With these issues now resolved and a strengthened
 management team, the Company is well positioned for the future."
     The Company announced the addition of Dave Barrett to the management team
 as Color Spot's Chief Operating Officer.  Mr. Barrett, formerly the President
 and CEO of Scovill Fasteners brings over 30 years of experience in general
 management and operations.
     The Company will be holding a conference call on Wednesday at 1:00 pm EST
 to further discuss the details of the results of the Transition Period.  A
 replay of the conference call will also be available at (800) 633-8284
 reservation number 18496558.
 
     Color Spot is the largest wholesale nursery in the United States, based on
 revenue and greenhouse square footage. The Company provides a wide assortment
 of high-quality plants as well as extensive merchandising services primarily
 to leading home centers and mass merchants, such as Home Depot, Home Base,
 Wal-Mart, and Kmart.  The Company distributes products to over 3,800 retail
 and commercial customers, representing over 10,000 locations, primarily in the
 western and southwestern regions of the United States.
 
     Certain statements in this release constitute forward-looking statements.
 Such forward looking statements involve risks which may cause actual results
 and performance of the Company to be materially different from those expressed
 or implied by the forward-looking statements.  Such factors include the
 following: general economic and business conditions; weather patterns; quality
 of management; and success of business and financing strategy.  For more
 information, see the Company's annual and quarterly reports filed with the
 Securities and Exchange Commission.
 
 SOURCE  Color Spot Nurseries, Inc.