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Verdant Brands, Inc.
9555 James Avenue S, Suite 200
Bloomington, MN 55431-2543
(952) 703-3300 Fax: (952) 887-1300
RELEASE DATE: November 14, 2000
RELEASE SOURCE CONTACT: Bruce Mallory, President and COO
VERDANT BRANDS ANNOUNCES THIRD QUARTER RESULTS
MINNEAPOLIS, MN NOVEMBER 14, 2000. Verdant Brands today announced sales and
earnings for its third quarter ended September 30, 2000. Sales for the third
quarter ended September 30, 2000 were $10.3 million, down from $13.8 million for
the same period in 1999. The Company also reported, after special charges, a net
loss for the third quarter of ($9,040,000) or ($1.77) per share compared to net
loss of ($2,458,000) or ($0.48) for the same quarter of 1999.
Sales for the nine months ended September 30, 2000 totaled $51.8 million
compared to $63.4 million for the same period in 1999. The Company also reported
a net loss for year-to-date operations of ($29,611,000) or ($5.79) per share
compared to a net income of $45,000 or $0.01 for the same period in 1999.
Operations for the quarter included special charges of $1,000,000 for obsolete
and excess inventory, and $2,329,000 for the sales of Valley Green and a portion
of Pacoast assets. These charges relate to the continued financial problems of
the Company and its decisions during the quarter to discontinue various
products, and to sell certain assets and businesses of the Company. The Company
previously announced during the last quarter that it had received a notice of
default from its secured lender and that it had begun efforts to sell certain
assets and businesses in an effort to retire its secured debt.
In response to cash flow problems, the Company placed a moratorium on the
payment of approximately $16 million in trade accounts payable and certain other
liabilities existing prior to May 31, 2000. This has caused many vendors, some
critical to operations, to withhold credit and otherwise restrict the Company's
ability to acquire materials and services. The Company's senior
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secured creditor is continuing to fund operations on a restricted basis,
however, funding is inadequate for normal operations and the continuation of
current funding is uncertain.
Commenting on a previous announcement regarding the potential sale of portions
of the Company's business, Dean Bachelor, Chairman and CEO said, "The
restructuring plan we put in place earlier this year is progressing as planned."
Verdant Brands, Inc. is a developer, manufacturer and supplier of pest control
products and fertilizers to the retail, agricultural and professional markets
using a variety of national, proprietary and private label brands, including
Safer(R), Brand, Dexol(R), Black Leaf(R), Blocker(R), AllPro(R), SureFire(R),
CheckMate(R), BioLure(R), Insectigone(R), and Ringer(R). The Company's stock is
traded on the NASDAQ Bulletin Board under the symbol VERDob.
SAFER HARBOR STATEMENT UNDER THE PRIVATE SECURITIES
LITIGATION REFORM ACT OF 1995
The information contained in this press release includes
forward-looking statements as defined in Section 21E of the Securities Exchange
Act of 1934, as amended, including statements regarding the Company's efforts to
deal with its financial problems, the Company's efforts to sell certain assets
or businesses, the Company's ongoing relationship with its senior lender, the
uncertainty of continued funding by its senior lender, and the Company's
inability to operate normally. These forward-looking statements involve a number
of risks and uncertainties, including: The Company's relationship with its
senior lender; the Company's ability to successfully negotiate with its senior
lender for continued funding, waiver of defaults and forbearance on foreclosure
against the Company's assets; the Company's ability to conclude planned sales of
assets or businesses and willingness of the Company's shareholders' to approve
any such sales; the Company's ability to retain customers, vendors or personnel
necessary to continue operations; and other factors disclosed in the Company's
reports with Securities and Exchange Commission. The actual results that the
Company achieves may differ materially from any forward-looking statements due
to such risks and uncertainties. The Company undertakes no obligation to revise
any forward-looking statement in order to reflect events or circumstances that
may arise after the date of this report. Readers are urged to carefully review
and consider the various disclosures made by this press release and in the
Company's filings with the Securities and exchange Commission that attempt to
advise interested parties of the risks and uncertainties that may affect the
Company's financial condition and results of operations.
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