UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
X QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended April 1, 1995
OR
___ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period from _____________ to _____________
Commission file number 0-7803
D O S K O C I L C O M P A N I E S I N C O R P O R A T E D
(Exact Name of Registrant as Specified in its Charter)
Delaware 13-2535513
(State or Other Jurisdiction of (I.R.S. Employer
Incorporation or Organization) Identification No.)
2601 NW Expressway, Suite 1000W, Oklahoma City, Oklahoma 73112
(Address of Principal Executive Offices) (Zip Code)
Registrant's telephone number, including area code: (405)879-5500
Indicate by check mark whether the registrant (1) has filed
all reports required to be filed by Section 13 or 15(d) of the
Securities Exchange Act of 1934 during the preceding 12 months
(or for such shorter period that the registrant was required to
file such reports), and (2) has been subject to such filing
requirements for the past 90 days. YES X NO
APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY
PROCEEDINGS DURING THE PRECEDING FIVE YEARS:
Indicate by check mark whether the registrant has filed all
documents and reports required to be filed by Sections 12, 13, or
15(d) of the Securities Exchange Act of 1934 subsequent to the
distribution of securities under a plan confirmed by a court.
YES X NO
On May 11, 1995, the number of shares outstanding of the
registrant's common stock, $.01 par value, was 12,433,705.
<PAGE>
DOSKOCIL COMPANIES INCORPORATED
_________________________
TABLE OF CONTENTS
FORM 10-Q
Page
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements:
Condensed Consolidated Balance Sheet at
April 1, 1995 (Unaudited) and
December 31, 1994 . . . . . . . . . . . . . . . . 3
Condensed Consolidated Statement of
Operations - Unaudited, Three Months
Ended April 1, 1995 and April 2, 1994 . . . . . . 4
Condensed Consolidated Statement of Cash
Flows - Unaudited, Three Months Ended
April 1, 1995 and April 2, 1994 . . . . . . . . . 5
Notes to the Condensed Consolidated
Financial Statements - Unaudited . . . . . . . . 6-8
Report of Independent Accountants . . . . . . . . 9
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of
Operations . . . . . . . . . . . . . . . . . . . 10-13
PART II. OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K . . . . . . . . . 14
Signatures . . . . . . . . . . . . . . . . . . . 15
<PAGE>
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
<TABLE>
DOSKOCIL COMPANIES INCORPORATED AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEET
(Dollar amounts in thousands, except par value)
<CAPTION>
April 1, December 31,
ASSETS 1995 1994
________ ____________
<S> <C> <C>
Current assets: (Unaudited)
Cash and cash equivalents $ 5,989 $ 17,376
Receivables 28,030 29,472
Inventories 54,177 48,488
Other current assets 2,288 2,365
Net current assets of discontinued
operations (Note 4) 13,971 12,145
________ ________
Total current assets 104,455 109,846
Property, plant and equipment, net of
accumulated depreciation and amortization
of $34,064 and $31,685 93,177 92,902
Intangible assets, net of accumulated
amortization of $3,286 and $2,654 83,745 83,687
Deferred charges and other assets 43,013 43,419
Reorganization value in excess of amounts
allocable to identifiable assets, net of
accumulated amortization of $8,715 and
$8,092 41,104 41,727
Net noncurrent assets of discontinued
operations (Note 4) 70,041 70,686
________ ________
$435,535 $442,267
======== ========
</TABLE>
<TABLE>
<CAPTION>
LIABILITIES AND STOCKHOLDERS' EQUITY
<S> <C> <C>
Current liabilities:
Current maturities of long-term debt $ 1,680 $ 1,654
Accounts payable 13,275 13,353
Accrued liabilities 38,384 44,182
________ ________
Total current liabilities 53,339 59,189
Long-term debt 223,917 224,260
Other long-term liabilities 80,355 80,331
Stockholders' equity:
Preferred stock, 4,000,000 shares
authorized, none issued and outstanding - -
Common stock, $.01 par value, 20,000,000
shares authorized, 12,447,860 shares
issued and outstanding (12,447,914
shares at December 31, 1994) 124 124
Capital in excess of par value 151,046 151,046
Retained earnings (deficit) (71,671) (71,108)
Minimum pension liability adjustment (1,575) (1,575)
________ ________
Total stockholders' equity 77,924 78,487
________ ________
$435,535 $442,267
======== ========
<FN>
The accompanying notes are an integral part of the condensed consolidated financial
statements.
</TABLE>
<PAGE>
<TABLE>
DOSKOCIL COMPANIES INCORPORATED AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS - UNAUDITED
(Dollar amounts in thousands, except per share figures)
<CAPTION>
Three Months Ended
___________________
April 1, April 2,
1995 1994
________ ________
<S> <C> <C>
Net sales $139,405 $ 94,347
Cost of sales 108,226 79,733
________ ________
Gross profit 31,179 14,614
Operating expenses:
Selling 16,469 7,167
General and administrative 5,861 5,678
Amortization of intangible assets 1,081 561
________ ________
Total 23,411 13,406
________ ________
Operating income 7,768 1,208
Other income (expense):
Interest and financing costs (4,355) (2,272)
Other, net (157) (166)
________ ________
Total (4,512) (2,438)
________ ________
Income (loss) from continuing operations
before income taxes 3,256 (1,230)
Income tax benefit (provision) (1,450) 782
________ ________
Income (loss) from continuing operations 1,806 (448)
Discontinued operations (Note 4):
Income (loss) from operations of the Retail
Division (less applicable income tax
benefit of $1,175 in 1995) (2,369) (30)
________ ________
Net income (loss) $ (563) $ (478)
======== ========
Earnings (loss) per share-primary
and fully diluted:
Income (loss) from continuing operations $ 0.14 $(0.06)
Income (loss) from discontinued operations (0.19) -
______ ______
Net income (loss) $(0.05) $(0.06)
====== ======
Weighted average number of common and
common equivalent shares outstanding -
primary and fully diluted 12,448 7,921
<FN>
The accompanying notes are an integral part of the condensed
consolidated financial statements.
</TABLE>
<PAGE>
<TABLE>
DOSKOCIL COMPANIES INCORPORATED AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS - UNAUDITED
Increase (Decrease) in Cash and Cash Equivalents
(Dollar amounts in thousands)
<CAPTION>
Three Months Ended
______________________
April 1, April 2,
1995 1994
________ ________
<S> <C> <C>
Cash flows from operating activities:
Income (loss) from continuing operations $ 1,806 $ (448)
Adjustments to reconcile income (loss) from
continuing operations to net cash provided
(used) by continuing operating activities:
Depreciation and amortization 2,687 2,134
Amortization of intangible assets 1,081 561
Amortization included in interest expense 409 149
Income taxes 1,175 (949)
Payments for restructuring/integration (922) -
Postretirement medical benefits 73 250
Changes in:
Receivables 1,218 1,212
Inventories (5,689) (2,021)
Other current assets 78 41
Deferred charges and other assets (75) (40)
Accounts payable and accrued liabilities (5,972) (942)
Other (10) (2)
________ ________
Net cash flows used by continuing
operations (4,141) (55)
Net cash flows used by discontinued
operations (3,681) (642)
________ ________
Net cash provided (used) by operating
activities (7,822) (697)
________ ________
Cash flows from investing activities:
Purchase of property, plant and equipment (2,711) (1,318)
Payments received on notes receivable 258 123
Proceeds from sale of facilities 25 277
Net investing activities of discontinued
operations (453) (1,336)
________ ________
Net cash provided (used) by investing
activities (2,881) (2,254)
________ ________
Cash flows from financing activities:
Borrowings under revolving working capital
facility - 55,000
Payments on revolving working capital
facility - (53,000)
Payments on capital lease and debt
obligations (331) (289)
Net financing activities of discontinued
operations (353) 1,957
________ ________
Net cash provided (used) by financing
activities (684) 3,668
________ ________
Increase (decrease) in cash and cash
equivalents (11,387) 717
Cash and cash equivalents at beginning of
period 17,376 6,203
________ ________
Cash and cash equivalents at end of period $ 5,989 $ 6,920
======== ========
<FN>
The accompanying notes are an integral part of the condensed
consolidated financial statements.
</TABLE>
<PAGE>
DOSKOCIL COMPANIES INCORPORATED AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - UNAUDITED
NOTE 1 GENERAL
Doskocil Companies Incorporated ("Doskocil") announced on
April 3, 1995, that it is changing its name to Foodbrands
America, Inc.
The accompanying condensed consolidated financial
statements include the accounts of Doskocil and all
majority-owned subsidiaries (collectively, the "Company") and
have been prepared without audit. The Balance Sheet at December
31, 1994, has been derived from financial statements which have
been audited by Coopers & Lybrand L.L.P., independent
accountants. Certain prior year balances have been restated to
conform to the reporting requirements for discontinued operations
(see Note 4).
In the opinion of the Company, the accompanying unaudited
condensed consolidated financial statements contain all
adjustments (adjustments are of a normal, recurring nature)
necessary for a fair presentation of the financial position as of
April 1, 1995 and December 31, 1994, and the results of
operations for the three months ended April 1, 1995 and April 2,
1994 and cash flows for the three months ended April 1, 1995 and
April 2, 1994. Results for the three months ended April 1, 1995
are not necessarily indicative of the results which will be
realized for the year ending December 30, 1995. The financial
statements should be read in conjunction with the Company's
Annual Report on Form 10-K, as amended, for the year ended
December 31, 1994.
NOTE 2 INVENTORIES
Inventories at April 1, 1995 and December 31, 1994 are
summarized as follows (in thousands):
April 1, December 31,
1995 1994
________ ____________
Raw materials and supplies $17,382 $16,076
Work in process 4,595 4,310
Finished goods 32,200 28,102
_______ _______
$54,177 $48,488
======= =======
NOTE 3 INCOME TAXES
The provision for income taxes on continuing operations
consists of the following components (in thousands):
Three Months Ended
______________________________
April 1, 1995 April 2, 1994
_____________ _____________
Current:
Federal $ 31 $ 17
State 244 150
______ ______
275 167
______ ______
Deferred:
Federal 987 (949)
State 188 -
______ ______
1,175 (949)
______ ______
Total $1,450 $ (782)
====== ======
The effective tax rate differs from the statutory rate due
primarily to amortization of certain intangible assets which are
not deductible for tax purposes. The effective tax rate was
calculated based on the projected taxable income for the full
fiscal year and the anticipated changes in the deferred tax
assets and related valuation allowance and the deferred tax
liabilities.
NOTE 4 DISCONTINUED OPERATIONS
On May 1, 1995, the Company announced that it had signed a
definitive agreement to sell the assets of its Retail Division to
Thorn Apple Valley, Inc. The sales price approximates $64
million in cash payments plus the assumption of long-term debt of
approximately $6 million and certain current liabilities related
to the division. In connection with this sale the Company will
be writing off approximately $65 million of post-bankruptcy
intangible assets and anticipates recording a loss on disposition
of approximately $37 million upon the closing of the sale. The
agreement also includes a potential earnout of an additional $10
million based upon an increase in the market value of the
purchaser's common stock. The transaction is scheduled to be
completed by the end of May 1995. The Company will reduce its
debt under its term loan by $58 million and use the remainder of
the proceeds to pay estimated expenses of $6.1 million related to
the sale. The results of operations and cash flows attributable
to the Retail Division are being reported as discontinued
operations and accordingly the balance sheet at December 31, 1994
and the financial information for the first quarter of 1994 have
been restated.
The results of discontinued operations are (in thousands):
Three Months Ended
____________________
April 1, April 2,
1995 1994
_______ _______
Net sales $44,806 $61,876
======= =======
Income (loss) before taxes $(3,544) $ (30)
Tax (expense) benefit 1,175 -
_______ _______
Net income (loss) $(2,369) $ (30)
======= =======
The assets and liabilities of discontinued operations
included in the balance sheets are (in thousands):
April 1, Dec. 31,
1995 1994
________ ________
Working capital $13,971 $12,145
Net property, plant and
equipment 22,646 22,822
Intangible and other assets 53,662 54,490
Long-term debt 6,267 6,626
The assets included in the sale of the Retail Division have
significantly different financial and tax basis. Therefore, for
income tax purposes this transaction will generate taxable income
of approximately $30 million requiring the utilization of net
operating loss carryforwards. The tax affect of this utilization
is approximately $11.5 million. In accordance with Fresh Start
Reporting as prescribed by Statement of Position 90-7, "Financial
Reporting by Entities in Reorganization Under the Bankruptcy
Code" issued by the American Institute of Certified Public
Accountants, the tax benefit realized from utilizing the
pre-reorganization net operating loss carryforwards should be
recorded as a reduction of the Reorganization Value in Excess of
Amounts Allocable to Identifiable Assets ("Reorganization Value")
rather than be realized as a benefit in the statement of
operations. In the second quarter of 1995, as a direct result of
the sale and the related tax affect, the Company will be reducing
the Reorganization Value by $65 million, which will in turn
reduce the amortization of that asset in the future.
<PAGE>
REPORT OF INDEPENDENT ACCOUNTANTS
To the Board of Directors and Stockholders
Doskocil Companies Incorporated
We have reviewed the condensed consolidated balance sheet
of Doskocil Companies Incorporated and subsidiaries as of April
1, 1995, and the related condensed consolidated statements of
operations for the three month periods ended April 1, 1995, and
April 2, 1994, and the condensed consolidated statements of cash
flows for the three month periods ended April 1, 1995 and April
2, 1994. These financial statements are the responsibility of
the Company's management.
We conducted our review in accordance with standards
established by the American Institute of Certified Public
Accountants. A review of interim financial information consists
principally of applying analytical procedures to financial data
and making inquiries of persons responsible for financial and
accounting matters. It is substantially less in scope than an
audit conducted in accordance with generally accepted auditing
standards, the objective of which is the expression of an opinion
regarding the financial statements taken as a whole.
Accordingly, we do not express such an opinion.
Based on our review, we are not aware of any material
modifications that should be made to the condensed consolidated
financial statements referred to above for them to be in
conformity with generally accepted accounting principles.
We have previously audited, in accordance with generally
accepted auditing standards, the consolidated balance sheet as of
December 31, 1994, and the related consolidated statements of
operations, stockholders' equity and cash flows for the period
ended December 31, 1994 (not presented herein), and in our report
dated March 3, 1995, we expressed an unqualified opinion on those
consolidated financial statements. In our opinion, the
information set forth in the accompanying condensed consolidated
balance sheet as of December 31, 1994, is fairly stated in all
material respects in relation to the consolidated balance sheet
from which it has been derived.
COOPERS & LYBRAND L.L.P.
Tulsa, Oklahoma
May 2, 1995
<PAGE>
DOSKOCIL COMPANIES INCORPORATED
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
Results of Continuing Operations
Comparability of Periods. Due to the acquisition of the
Specialty Brands Division on June 1, 1994, the financial
statements for the first quarter of 1994 do not reflect the
operating results of Specialty Brands. The operating results
attributable to Specialty Brands for the first quarter of 1995
include net sales of $46.6 million, gross profit of $14.1 million
and operating income of $3.7 million.
On May 1, 1995, the Company announced that it had signed a
definitive agreement to sell the assets of its Retail Division to
Thorn Apple Valley, Inc. The sale is scheduled to close May 30,
1995. The results of operations and cash flows of the division
have been reported as discontinued operations and the first
quarter of 1994 has been restated to reflect this treatment. The
results of continuing operations for the first quarters of 1995
and 1994 do not include the operations of the Retail Division.
Three Months Ended April 1, 1995 Compared to the Three Months
Ended April 2, 1994. The Company's net sales for the first
quarter of 1995 were $139.4 million, an increase of 48% over
sales of $94.3 million for the first quarter of 1994. The
increase of $45.1 million was attributable to the addition of the
Specialty Brands Division in June 1994. Sales volume in the
other divisions was up slightly but the increase was offset by
price declines directly related to reduced raw material costs,
the majority of which were passed along to the customers.
Gross profit for the first quarter of 1995 of $31.2 million
increased $16.6 million, or 113%, over the gross profit of $14.6
million for the first quarter of 1994. This increase includes
the gross profit for the first quarter of 1995 of the Specialty
Brands Division of $14.1 million. Other increases in the gross
profit of the Food Service and Deli Divisions resulted from
improved manufacturing throughput, manufacturing cost reductions
and lower raw material costs.
Selling expenses of $16.5 million in the first quarter of
1995 increased $9.3 million over the 1994 period selling expenses
of $7.2 million. Of the $9.3 million increase, $9.1 million
relates to the Specialty Brands Division, which was not included
in the first quarter of 1994.
General and administrative expenses increased $0.2 million,
or 3%, from $5.7 million to $5.9 million. General and
administrative expenses of the Specialty Brands Division for the
first quarter of 1995 were $1.3 million. The offsetting $1.1
million reduction in the first quarter of 1995 is attributable to
the Company's cost reduction efforts started in 1994.
Amortization of intangible assets increased $0.5 million
due to amortization of intangibles related to the purchase of the
Specialty Brands Division.
Interest and financing costs increased from $2.3 million to
$4.4 million as a direct result of the borrowings related to the
purchase of the Specialty Brands Division.
Income tax expense for the first quarter of 1995 of $1.5
million is based on the effective tax rate for projected income
from continuing operations for 1995. The benefit recorded in the
first quarter of 1994 of $0.8 million represented the estimated
benefit that was expected to be realized during the year based on
projected income for the year. The effective tax rates were
calculated based on the projected taxable income for the full
fiscal year and the anticipated changes for the year in the
deferred tax assets and related valuation allowance and the
deferred tax liabilities.
Discontinued Operations
Discontinued operations includes the net sales and related
expenses associated with the Retail Division's operations.
Included in the first quarter of 1995 and 1994, respectively, are
(i) net sales of $44.8 million and $61.9 million, (ii) gross
profit of $6.1 million and $12.1 million, (iii) after
amortization of intangibles of $1.0 million for each quarter,
operating income (loss) of $(2.3) million and $1.3 million and
(iv) after allocating corporate interest expense of $1.1 million
and $1.2 million, income (loss) of $2.4 million and breakeven.
The first quarter 1995 loss was after a tax benefit of $1.2
million.
Liquidity and Capital Resources
Management believes that cash flow from operations for the
full fiscal year combined with the borrowing capacity available
under the Company's revolving credit loan will be sufficient to
meet the Company's operating and debt service cash requirements
for the foreseeable future. Management also believes the
anticipated reduction of debt under its term loan as a result of
the pending sale of the Retail Division along with the reduced
working capital requirements will benefit the Company's overall
liquidity and capital resources and will allow the Company to
more rapidly execute its strategy to acquire higher margin food
businesses.
Cash Flows and Capital Expenditures.
The following table summarizes selected cash flow and
capital expenditure data and has been prepared based on the
historical financial statements of the Company.
<TABLE>
<CAPTION>
Three Months Ended
___________________
Apr. 1, Apr. 2,
Cash Flow and Capital Expenditures Data (in thousands): 1995 1994
_______ _______
<S> <C> <C>
Continuing Operations:
Depreciation and amortization $2,687 $2,134
Amortization of intangibles 1,081 561
Amortization included in interest expense 409 149
Net cash used by continuing operating activities (4,141) (55)
Net cash used by discontinued operating activities (3,681) (642)
Net cash used by operating activities (7,822) (697)
Capital expenditures 3,164 2,654
</TABLE>
First three months of 1995. For the first quarter of 1995, net
cash used by operating activities was $7.8 million. Decreases in
cash resulted primarily from the use of cash in the operations of
the discontinued Retail Division. In addition, cash decreased
due to increases in inventory and decreases in accounts payable
and accrued liabilities and payments for
restructuring/integration. The total decreases in cash were
offset somewhat by increases in cash from a decrease in accounts
receivable. Increases in cash were also provided by the results
of continuing operations during the quarter after adding back
noncash items of depreciation, amortization and the provision for
postretirement medical benefits and deferred income taxes.
Expenditures for additions to property, plant and equipment
were $3.2 million, of which $0.5 million related to discontinued
operations. Expenditures were primarily for replacements and
modifications to existing facilities. The source of the funds
for these expenditures was from cash provided by operations.
First three months of 1994. For the first quarter of 1994, net
cash used by operating activities was approximately $0.7 million.
Decreases in cash resulted primarily from the use of cash in the
operations of the discontinued Retail Division along with
increases in inventory and decreases in accounts payable and
accrued liabilities. These decreases were offset partially by
decreases in accounts receivable. The remaining increases in
cash were principally provided by the results of continuing
operations during the quarter after adding back noncash items of
depreciation, amortization and the provision for postretirement
medical benefits and subtracting the deferred benefit for income
taxes.
Expenditures for additions to property, plant and equipment
were approximately $2.7 million, of which $1.4 million related to
discontinued operations, for the first quarter of 1994. Of the
$2.7 million, approximately $1.2 million of these expenditures
were attributable to construction of additional capacity and the
remainder for replacements and modifications to existing
facilities. The source of the funds for these expenditures was
primarily from the receipt of escrowed funds related to
construction in progress and increased borrowings under the 1993
Credit Agreement.
<PAGE>
PART II. OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits (the following exhibits are listed and numbered
in accordance with Item 601 of Regulation S-K as of the
date of this filing)
Exhibit Number Description
______________ ___________
11.1 Calculation of Earnings
per Share
15.1 Letter re: Unaudited
Interim Financial
Information
27.1 Financial Data Schedule
(b) Reports on Form 8-K
Current Report on Form 8-K, dated March 7, 1995, of
Doskocil Companies Incorporated was filed with the SEC
on April 6, 1995, with respect to the Company entering
into an agreement with Airlie Group, L.P. under Item 5
(other events) and Item 7 (financial statements, pro
forma financial information and exhibits).
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act
of 1934, the Registrant has duly caused this Report to be signed
on its behalf by the undersigned thereunto duly authorized.
DOSKOCIL COMPANIES INCORPORATED
Dated: May 16, 1995 By:/s/ William L. Brady
William L. Brady
Vice President and Controller
EXHIBIT 11.1
<TABLE>
DOSKOCIL COMPANIES INCORPORATED AND SUBSIDIARIES
CALCULATION OF EARNINGS PER SHARE - UNAUDITED
(Dollar amounts in thousands, except per share figures)
<CAPTION>
Three Months Ended
__________________
April 1, April 2,
1995 1994
________ ________
<S> <C> <C>
Income (loss) from continuing operations $ 1,806 $ (448)
Income (loss) from discontinued operations,
net of tax benefit (2,369) (30)
_______ ______
Net income (loss) $ (563) $ (478)
======= ======
Primary earnings per share:
Weighted average number of common shares
outstanding 12,448 7,921
Common stock equivalents:
Dilutive options and warrants - -
_______ ______
Weighted average number of common and common
equivalent shares outstanding 12,448 7,921
======= ======
Income (loss) from continuing operations $ 0.14 $(0.06)
Income (loss) from discontinued operations,
net of tax benefit (0.19) -
_______ ______
Net income (loss) per share $(0.05) $(0.06)
======= ======
Fully diluted earnings per share:
Weighted average number of
common shares outstanding 12,448 7,921
Common stock equivalents:
Dilutive options and warrants - -
_______ ______
Weighted average number of common and common
equivalent shares outstanding 12,448 7,921
======= ======
Income (loss) from continuing operations $ 0.14 $(0.06)
Income (loss) from discontinued operations,
net of tax benefit (0.19) -
_______ ______
Net income (loss) per share $(0.05) $(0.06)
======= ======
</TABLE>
EXHIBIT 15.1
May 12, 1995
Securities and Exchange Commission
450 Fifth Street, N.W.
Washington, D.C. 20549
RE: Doskocil Companies Incorporated
Registration on Form S-8
We are aware that our report dated May 2, 1995 on our review of
interim financial information of Doskocil Companies Incorporated
for the periods ended April 1, 1995, and April 2, 1994, and
included in the Company's quarterly report on Form 10-Q for the
quarter ended April 1, 1995, is incorporated by reference in the
Registration Statements on Form S-8 (File No. 33-45974 and 33-
_______) of Doskocil Companies Incorporated. Pursuant to Rule
436(c) under the Securities Act of 1933, this report should not
be considered a part of the Registration Statement prepared or
certified by us within the meaning of Sections 7 and 11 of that
Act.
COOPERS & LYBRAND L.L.P.
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE QUARTER ENDED APRIL 1, 1995
CONTAINED IN THE FIRST QUARTER 1995 FORM 10-Q REPORT AND IS QUALIFIED IN ITS
ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-30-1995
<PERIOD-END> APR-01-1995
<CASH> 5,989
<SECURITIES> 0
<RECEIVABLES> 28,030
<ALLOWANCES> 0
<INVENTORY> 54,177
<CURRENT-ASSETS> 104,455
<PP&E> 127,241
<DEPRECIATION> 34,064
<TOTAL-ASSETS> 435,535
<CURRENT-LIABILITIES> 53,339
<BONDS> 223,917
<COMMON> 124
0
0
<OTHER-SE> 77,800
<TOTAL-LIABILITY-AND-EQUITY> 435,535
<SALES> 139,405
<TOTAL-REVENUES> 139,405
<CGS> 108,226
<TOTAL-COSTS> 108,226
<OTHER-EXPENSES> 23,411
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 4,355
<INCOME-PRETAX> 3,256
<INCOME-TAX> 1,450
<INCOME-CONTINUING> 1,806
<DISCONTINUED> (2,369)
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (563)
<EPS-PRIMARY> (0.05)
<EPS-DILUTED> (0.05)
</TABLE>
