U. S. SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-QSB
[x] Quarterly report under Section 13 or 15(d) of the Securities Exchange Act
of 1934 For the quarterly period ended September 30, 1997
[ ] Transition report under Section 13 or 15(d) of the Securities Exchange
Act of 1934 For the transition period from ____________ to ____________
Commission file number: 33-93982-LA
ANNIE'S HOMEGROWN, INC.
- --------------------------------------------------------------------------------
(Exact Name of Small Business Issuer as Specified in Its Charter)
Delaware 06-1258214
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(State or Other Jurisdiction of (I.R.S. Employer
Incorporation or Organization) Identification No.)
180 Second Street, Suite 202
Chelsea, MA 02150
- --------------------------------------------------------------------------------
(Address of Principal Executive Offices)
617-889-2822
- --------------------------------------------------------------------------------
(Issuer's Telephone Number, Including Area Code)
NONE
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(Former Name, Former Address and Former Fiscal Year,
if Changed Since Last Report)
Check whether the issuer: (1) filed all reports required to be filed by Section
13 or 15(d) of the Exchange Act during the past 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 ___
As of September 30, 1997, there were issued and outstanding 4,316,895 shares of
the issuer's Common Stock, $.001 par value.
Transitional Small Business Disclosure Format (check one): Yes _____ No __X__
ANNIE'S HOMEGROWN, INC.
INDEX
Page No.
--------
Part I. Financial Information
Item 1. Financial Statements (Unaudited)
Consolidated Balance Sheet as of
September 30, 1997 (unaudited) 3
Consolidated Statements of Operations for the Three and
Six Months Ended September 30, 1997 and 1996 (unaudited) 4
Statements of Cash Flows for the
Six Months Ended September 30, 1997 and 1996 (unaudited) 5
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operation 6-10
Part II Other Information
Item 6. Exhibits and Reports on Form 8-K 11
Signatures 11
-2-
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements.
ANNIE'S HOMEGROWN, INC.
Consolidated Balance Sheet
Unaudited
September 30, 1997
------------------
<TABLE>
<S> <C>
Assets
Current assets
Cash and cash equivalents $ 133,337
Accounts receivable
Trade 172,899
Related parties 30,810
Inventory 899,178
Other current assets 19,214
-----------
Total current assets 1,255,438
Office equipment 99,306
Accumulated depreciation (49,980)
-----------
Office equipment, net 49,326
Due from officer 75,000
Goodwill, net of amortization 396,850
Other assets 44,126
-----------
Total assets $ 1,820,740
-----------
Liabilities and Stockholders' Equity
Current liabilities
Accounts payable, trade $ 779,191
Accrued expenses 45,214
Due to employees 45,884
-----------
Total current liabilities 870,289
Commitments
Stockholders' equity Common stock, $.001 par value
Authorized 10,000,000 shares
issued 4,428,801 shares
4,429
Additional paid in capital 2,121,872
Accumulated deficit (1,084,100)
Note receivable stockholder (1,750)
Treasury stock, 111,906 common shares at cost (90,000)
-----------
Total stockholders equity 950,451
Total liabilities and stockholders' equity $ 1,820,740
===========
</TABLE>
-3-
ANNIE'S HOMEGROWN, INC.
Consolidated Statements of Operations
Unaudited
<TABLE>
<CAPTION>
Three months ended Six months ended
September 30, September 30,
------------- -------------
1996 1997 1996 1997
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
Net sales $ 1,111,025 $ 1,771,348 $ 2,013,490 $ 2,873,533
Cost of sales 643,628 1,006,822 1,189,447 1,706,319
----------- ----------- ----------- -----------
Gross profit 467,397 764,526 824,043 1,167,214
Operating expenses:
Selling 259,332 470,091 595,135 779,433
General and administrative 158,048 249,501 323,321 461,136
Slotting fees 11,685 1,501 157,971 41,593
Compensation of outside directors -- -- 6,000 --
----------- ----------- ----------- -----------
Total operating expenses 429,065 721,093 1,082,427 1,282,162
----------- ----------- ----------- -----------
Operating income (loss) 38,332 43,433 (258,384) (114,948)
Other income (loss)
Interest expense and other charges (6,634) (10,081) (17,003)
(23,368)
Interest and other income 2,000 2,882 8,048 4,791
----------- ----------- ----------- -----------
Income (loss) before income tax 33,698 36,234 (267,339) (133,525)
Income tax expense 223 255 223 505
----------- ----------- ----------- -----------
Net income (loss) $ 33,475 $ 35,979 $ (267,562) $ (134,030)
=========== =========== =========== ===========
Weighted average common
shares outstanding 4,990,222 5,031,005 4,187,976 5,011,222
Net income (loss) per share .01 .01 (.06) (.03)
</TABLE>
-4-
ANNIE'S HOMEGROWN, INC.
Consolidated Statements of Cash Flows
Unaudited
<TABLE>
<CAPTION>
Six months ended
September 30,
---------------------
1996 1997
-------------- ------------
<S> <C> <C>
Cash flows from operating activities:
Net income (loss) $(267,562) $(134,030)
Adjustments to reconcile net income (loss) to net
cash (used in) provided by operating activities:
Depreciation and amortization 6,000 13,134
Outside directors compensation 6,000 --
Changes in
Accounts receivable, trade 116,512 (131,052)
Affiliate accounts, net (26,141) 10,840
Inventory (200,218) 277,205
Other assets 11,894 (25,619)
Accounts payable, trade 34,473 137,184
Accrued expenses (66,984) (42,279)
Deferred revenue -- (424,224)
Due to employees (2,100) (822)
--------- ---------
Net cash (used in) provided by
operating activities (388,126) (319,663)
Cash flows from investing activities:
Acquisition of Raw Materials Food Co. -- (19,946)
Purchases of equipment (598) (11,518)
--------- ---------
Net cash (used in) investing activities (598) (31,464)
Cash flows from financing activities:
Repayment of notes payable (127,570) --
Issuance of common stock and exercise
of stock options, net 870,857 --
--------- ---------
Net cash (used in) provided by
financing activities 743,287 --
Net (decrease) increase in cash and cash equivalents 354,563 (351,127)
Cash and cash equivalents, beginning of period 67,433 484,464
--------- ---------
Cash and cash equivalents, end of period $ 421,996 $ 133,337
========= =========
Supplemental disclosure of cash flow information
Cash paid for interest $ 17,003 $ 23,368
========= =========
Cash paid for income taxes $ 223 $ 505
--------- ---------
Supplemental disclosure of noncash financing activities are as follows:
During 1996, $6,000 in compensation expense was recorded
for stock options granted to four outside directors
On July 31, 1997, the Company issued 60,000 shares of common
stock ($6.00 per share) in exchange for the outstanding common
stock of Raw Materials Food Company. See Note 2 of the Notes to
Consolidated Financial Statements
</TABLE>
-5-
ANNIE'S HOMEGROWN, INC. NOTES TO
CONSOLIDATED FINANCIAL STATEMENTS
NOTE 1--BASIS OF PRESENTATION:
In the opinion of management, the accompanying unaudited consolidated
financial statements contain all adjustments (which include only normal
recurring adjustments) necessary to present fairly the Company's financial
position at September 30, 1997, its results of operations for the three and six
month periods ended September 30, 1997 and 1996, and its cash flows for the six
month periods ended September 30, 1997 and 1996. Certain information and
footnote disclosures normally included in financial statements prepared in
accordance with generally accepted accounting principles have been condensed or
omitted from the accompanying consolidated financial statements. For further
information, reference should be made to the consolidated financial statements
and notes thereto included in the Company's Annual Report on Form 10-K for the
fiscal year ended December 31, 1996, on file with the Securities and Exchange
Commission.
NOTE 2--ACQUISITION OF RAW MATERIALS FOOD COMPANY .
On July 31, 1997, the Company acquired Raw Materials Food Company ("RMFC")
for $379,976 consisting of 60,000 shares of common stock ($6.00 per share) and
$19,946 of expenses. The purchase price has been allocated to the net assets
acquired at their fair market value. The excess of the purchase price over the
fair market value of the net assets has been recorded as goodwill. Such goodwill
is being amortized over 20 years. The consolidated financial statements reflect
the results of operations and cash flows of RMFC from the date of acquisition.
All intercompany balances and transactions have been eliminated. The Company
believes that no further financial statements or pro forma financial information
concerning RMFC is required to be filed as part of this Report. For further
information, reference should be made to the Company's report on Form 8-K dated
August 13, 1997, on file with the Securities and Exchange Commission
NOTE 3--CHANGE IN FISCAL YEAR
On March 27, 1997, the Board of Directors approved a change in the fiscal
year of the Company from December 31st to March 31st. For further information,
reference should be made to the Company's report on Form 8-K dated April 7,
1997, on file with the Securities and Exchange Commission.
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION.
OVERVIEW
The Company has developed four premium macaroni and cheese dinners: Annie's
Shells and Cheddar, Annie's Alfredo, Annie's Whole Wheat Shells and Cheddar and
Annie's Mild Mexican(TM). In addition, the Company introduced in April 1997 two
additional premium macaroni and cheese dinners: Pizza Pasta and Mild Cheddar.
The Mild Cheddar product is being promoted in conjunction with the Free Willy
Keiko Foundation with a portion of sales going to the foundation.
In January 1997, the Company introduced a new line of all natural pasta dinners
called Annie's One-Step. The dinners combine different pasta shapes with five
sauce recipes which provide the convenience of one-step, one-pot cooking as
follows: Annie's One-Step Rotini with Four Cheese Sauce, Annie's One-Step Penne
Pasta with Alfredo Sauce, Annie's One-Step Radiatore Pasta with Sundried Tomato
and Basil Sauce, Annie's One-Step Corkscrew Pasta with Savory Herb and Garlic
Sauce and Annie's One-Step Curly Fettuccine with White Cheddar and Broccoli
Sauce. The Company also has an agreement with a specialty retailer to provide a
private label house brand using the Company's premium all natural white cheddar
cheese formula together with elbow macaroni.
-6-
Most of the Company's products are distributed in the continental United States
by Liberty Richter, Inc. ("Liberty"). Pursuant to a master distribution
agreement, the Company sells its products to Liberty who in turn resells the
products to its two main classes of trade; supermarket chains and natural and
specialty food stores via warehouses located in New Jersey and California.
Liberty utilizes its own sales force and sub distributors. In addition, Liberty
provides other services such as order processing, invoicing, record management,
sales coverage, broker management, promotion execution, management of sales
allowances and food show participation. All promotions and slotting
presentations as well as sub distributors and brokers are subject to Annie's
approval.
Liberty must distribute all new products that Annie's chooses to distribute
through Liberty's channels unless Liberty has a preexisting non compete
provision with another vendor. The initial distribution agreement expires on
December 31, 1997, with automatic renewals scheduled on a year to year basis.
The contract has been renewed through December 31, 1998.
The Company's cost of sales consists of the cost of finished product shipped
from a co-packer. The raw materials are purchased by the Company according to
the specifications provided by the Company, which include the recipe,
ingredients, graphics and packaging for the product and shipped to the
co-packer. The co-packer packages the raw materials into the appropriate boxes
and cases according to orders specified by the Company. The products are shipped
directly from the co-packer via common carrier to either of Liberty's two
warehouses.
Selling expenses include the costs of product marketing, sales commissions, cost
of product distribution and account management. Liberty retains brokers at the
approval of the Company who present the Company's products to supermarket chains
and distributors. The brokers work on a commission basis, generally 5% of net
cash received. The Company negotiates, through the broker, the cost of acquiring
shelf space (introductory slotting) as well as the continuing support needed for
the product as indicated. Introductory slotting fees can take the form of cash
payments and/or free product allowances.
On July 31, 1997, the Company purchased Raw Materials Food Company (RMFC) in an
exchange of stock. RMFC sells whole food supplements through natural food stores
and mail order. The Company believes that RMFC's product appeal to the Company's
core customer base--natural food buyers--strengthening its identity and
franchise in this important market segment. For further information regarding
the terms of the RMFC transaction, reference is made to the Company's report on
Form 8-K dated August 13, 1997, on file with the Securities and Exchange
Commission. The Company is presently having discussions with other company's
which could lead to additional strategic relationships or transactions in the
future consistent with its business strategy.
The Company's business strategy is to develop new and unique all natural food
products, to purchase existing all natural food brands to sell to its existing
customer base and to continue to expand its national supermarket distribution.
The Company believes it will benefit from greater trade relations due to
Liberty's favorable position in the supermarket and natural food trade.
Management believes its consolidated distribution with Liberty's other products
will provide the Company greater access to key accounts in expansion markets as
well as facilitate new product introductions into its existing customers.
FORWARD LOOKING STATEMENTS
From time to time, information provided by the Company, statements made by its
employees or information included in its filings with the Securities and
Exchange Commission (including this Form 10-QSB) may contain statements which
are not historical facts, so called "forward looking statements", which involve
risks and uncertainties. Forward looking statements are made pursuant to the
safe harbor provisions of the Private Securities Litigation Reform Act of 1995.
When used in this form 10-QSB, the terms "anticipates", "expects", "estimates",
"believes" and other similar terms as they relate to the Company or its
management are intended to identify such forward looking statements. In
particular, statements made in Item 2., Management's Discussion and Analysis of
Financial Condition and Results of Operations, relating to the sufficiency of
funds for the Company's working capital requirements during 1997 and the
Company's expectation that future cash flow will continue to be provided from
operations are forward looking statements. The Company's actual future results
may differ significantly from
-7-
those stated in any forward looking statements. Factors that may cause such
differences include, but are not limited to: (i) competitive factors in the
market place; (ii) reliance on the Liberty agreement; (iii) fluctuation in
quarterly and annual operating results; and (iv) dependence on key personnel,
among others. Each of these factors, and others, are discussed from time to time
in the Company's filings with the Securities and Exchange Commission including
the Company's annual report on Form 10-KSB for the year ended December 31, 1996.
RESULTS OF OPERATIONS
SIX MONTHS ENDED SEPTEMBER 30, 1997 COMPARED TO
SIX MONTHS ENDED SEPTEMBER 30, 1996
NET SALES. Net sales increased by $860,043 or 42.71% from $2,013,490 in 1996 to
$2,873,533 in 1997. The net sales increase was a result of increased demand in
all market sectors for our existing products and running our fall promotion in
the current quarter. The increase in sales are as follows: same product sales
are 17.81%; new products are 16.15%; private label is 3.54% and RMFC is 1.67%.
The Company believes that it has penetrated all major supermarket chains in the
New England states, and sells in several major supermarket chains in New York
and California. The Company has expanded its supermarket business into the
Mid-Atlantic states as well as the Rocky Mountain region. The Company believes
it has penetrated all of the major natural food market stores across the
country. Additionally, the Company continues to produce for a specialty retailer
their private label brand macaroni and cheese dinner.
GROSS PROFIT. As a percentage of net sales, gross profit decreased from 40.93%
in 1996 to 40.62% in 1997. This decrease was primarily a result of the Company
expanding its business into supermarkets using distributors instead of going
direct through their supermarket warehouse. Sales to the distributors result in
lower profit margins.
SELLING EXPENSES. Selling expenses increased by $184,298 or 30.97% from $595,135
in 1996 to $779,433 in 1997 but decreased as a percentage of net sales from
29.56% in 1996 to 27.12% in 1997. The increase in selling expenses reflected an
increase in spending in marketing costs, including price reductions and trade
show appearances, associated with the continued roll-out of the Company's new
products in 1997 and. running our fall promotion in the current quarter.
GENERAL AND ADMINISTRATIVE EXPENSES. General and administrative expenses
increased by $137,815 or 42.62% from $323,321 in 1996 to $461,136 in 1997 and
decreased as a percentage of net sales from 16.06% in 1996 to 16.05% in 1997.
The increase in general and administrative expenses is primarily a result of
increased spending in four areas: (i) legal fees relating to reporting
requirements of the Securities and Exchange Commission; (ii) increase in the
management fee from Liberty Richter due to the increase in volume; (iii)
increased cost for outside services to handle specific projects; and (iv)
printing costs and product development costs relating to new products.
SLOTTING FEES. Slotting expenses decreased by $116,378 or 73.67% from $157,971
in 1996 to $41,593 in 1997, and decreased as a percentage of net sales from
7.85% in 1996 to 1.45% in 1997. The decrease was due to the Company's decision
to scale back the expansion of purchasing additional shelf space which requires
paying introductory slotting fees for the acquisition of shelf space at
supermarkets. These slotting fees are required by most supermarkets and are
expensed at the time of product introduction.
COMPENSATION OF OUTSIDE DIRECTORS. In 1996, $6,000 in compensation for stock
options granted was recorded for the four outside directors of the Company.
THREE MONTHS ENDED SEPTEMBER 30, 1997 COMPARED TO
THREE MONTHS ENDED SEPTEMBER 30, 1996
NET SALES. Net sales increased by $660,323 or 59.43% from $1,111,025 in 1996 to
$1,771,348 in 1997. The net sales increase was a result of increased demand in
all market sectors for our existing products and running our fall promotion in
the current quarter. The increase in sales are as follows: same product sales
are 41.69%; new products are 14.74% and RMFC is 3.00%. The Company believes that
it has penetrated all major supermarket chains in the New England states, and
sells in several major supermarket chains in New York and California. The
-8-
Company has expanded its supermarket business into the Mid-Atlantic states as
well as the Rocky Mountain region. The Company believes it has penetrated all of
the major natural food market stores across the country.
GROSS PROFIT. As a percentage of net sales, gross profit increased from 42.07%
in 1996 to 43.16% in 1997. This increase was primarily a result of an increase
in sales of the Company's new products and RMFC's products, both of which have
higher gross margins than the Company's original macaroni and cheese items.
SELLING EXPENSES. Selling expenses increased by $210,759 or 81.27% from $259,332
in 1996 to $470,091 in 1997 and increased as a percentage of net sales from
23.34% in 1996 to 26.54% in 1997. The increase in selling expenses as a
percentage of net sales reflected an increase in spending due to the fall
promotions as well as in marketing costs, including price reductions and trade
show appearances, associated with the continued roll-out of the Company's new
products in 1997.
GENERAL AND ADMINISTRATIVE EXPENSES. General and administrative expenses
increased by $91,453 or 57.86% from $158,048 in 1996 to $249,501 in 1997 and
decreased as a percentage of net sales from 14.23% in 1996 to 14.08% in 1997.
The increase in general and administrative expenses is primarily a result of
increased spending in three areas: (i) increase in the management fee from
Liberty Richter due to the increase in volume; (ii) increased cost for outside
services to handle specific projects; and (iii) printing costs and product
development costs relating to new products.
SLOTTING FEES. Slotting expenses decreased by $10,184 or 87.15% from $11,685 in
1996 to $1,501 in 1997, and decreased as a percentage of net sales from 1.05% in
1996 to 0.08% in 1997. The decrease was due to the Company's decision to scale
back the expansion of purchasing additional shelf space which requires paying
introductory slotting fees for the acquisition of shelf space at supermarkets.
These slotting fees are required by most supermarkets and are expensed at the
time of product introduction.
LIQUIDITY AND CAPITAL RESOURCES
At September 30, 1997, the Company had $133,337 in cash and cash equivalents, a
decrease of $107,500 from a balance of $240,837 at June 30, 1997 and a decrease
of $351,127 from a balance of $484,464 at March 31, 1997. The decrease in cash
is primarily the net result of an increase in accounts receivable from the
distributor net of a reduction in deferred revenue from the distributor.
The Company has financed its operations to date through the proceeds of a public
offering of Common Stock, private sales of Common Stock and convertible debt
securities, a line of credit from a financial institution and cash generated
from operations. During the quarter ended September 30, 1997, the Company
initiated discussions with various financial institutions seeking an additional
line of credit of $500,000 to $950,000 and initiated discussions with other
parties for the purpose of raising additional capital. Management believes that
such financing and capital will be available. The Company anticipates that the
funds available from these sources together with funds generated from operations
will be sufficient to meet its liquidity needs for the next twelve months.
However, at this stage, the Company needs ongoing financing to implement its
business strategy as set forth herein. If such financing is unavailable either
because of general market conditions or the results of the Company's operations,
the Company may have to scale back either its investments in new products, or
its national supermarket expansion, or both.
Most of the Company's sales are made to Liberty under contract terms allowing
certain rights of return on unsold product held by Liberty. The contract calls
for Liberty to pay the Company based on terms relating to the receipt of the
Company's products by Liberty. The Company defers recognition of such sales
until the product is sold by Liberty to its two main classes of trade;
supermarket chains and natural and specialty food stores.
Net cash used in operating activities for the six months ended September 30,
1997 was $319,663, consisting of payments for operations and an increase in
accounts receivable from the distributor net of a reduction in deferred revenue
from the distributor.
-9-
Net cash used in investing activities consisted of capital expenditures totaling
$11,518 which related principally to the purchase of plates and dies for the new
products as well as office equipment and $19,946 used for the acquisition of Raw
Materials Food Company.
The Company has a $10,000 unsecured line of credit with a bank which bears
interest at the prime rate plus 8.9%. At September 30, 1997 the Company had no
outstanding borrowings under the line of credit.
The Company's primary capital needs are for developing new products to sell to
its existing customer base and expansion into national supermarket distribution.
The Company has scaled back its plan to expand its supermarket distribution
throughout the United States by acquiring shelf space or new "slots" (one
product in one store equals one slot). These slotting fees are required by most
supermarkets and are expensed at the time of product introduction.
In February 1997, the Financial Accounting Standards Board issued Statement of
Financial Accounting Standards No. 128, Earnings per Share (FASB No. 128). FASB
No. 128 supersedes APB No. 15 and specifies the computation, presentation, and
disclosure requirements and earnings per share. FASB No. 128 is effective for
financial statements for both interim and annual periods ending after December
15, 1997 and early application is not permitted. Accordingly, the Company will
apply FASB No. 128 for the quarter ended December 31, 1997 and restate prior
period information as required under the statement. The Company has determined
that if the FASB No. 128 had been applied for the first quarter ending June 30,
1997, the impact on earnings per share as currently stated would be immaterial.
In June 1997, the Financial Accounting Standards Board issued Financial
Accounting Standards No. 130, Reporting Comprehensive Income and No. 131,
Disclosure about Segments of an Enterprise and Related Information, which are
effective for fiscal years beginning after December 15, 1997. The Company is
currently evaluating the effects of these new standards.
-10-
PART II
OTHER INFORMATION
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K.
(a) Exhibits
Exhibit Number
--------------
11 Statement re: computation of per share earnings
27 Financial Data Schedule
(b) Reports on Form 8-K.
The Company filed a report on Form 8-K, dated August 13. 1997, concerning
the purchase of Raw Materials Food Company. No financial statements or pro forma
financial information concerning RMFC was required to be filed therewith.
SIGNATURES
In accordance with the requirements of the Exchange Act, the registrant
caused this report to be signed on its behalf by the undersigned, thereunto duly
authorized.
ANNIE'S HOMEGROWN, INC.
(Registrant)
Date: November 14, 1997 /s/ Paul B. Nardone
---------------------------------
Paul B. Nardone
President
Date: November 14, 1997 /s/ Neil Raiff
----------------------------
Neil Raiff
Chief Financial Officer & Treasurer
-11-
EXHIBIT 11
STATEMENT RE: COMPUTATION OF PER SHARE EARNINGS
ANNIE'S HOMEGROWN, INC.
COMPUTATION OF EARNINGS PER COMMON SHARE
(IN 000S EXCEPT FOR PER SHARE DATA)
THREE MONTHS ENDED SEPTEMBER 30, 1996
Primary Computation
Net income per statement of operations $ 33
======
Weighted average number of common
shares outstanding 4,257
Weighted average number of common
stock equivalents -
------
Weighted average number of common
shares as adjusted 4,257
------
Primary income per common share $ .01
======
Fully Diluted Computation
Net income per statement of operations $ 33
======
Weighted average number of common
shares outstanding 4,257
Weighted average number of common
stock equivalents 733
-----
Weighted average number of common
shares as adjusted 4,990
-----
Fully diluted income per common share $ .01
======
ANNIE'S HOMEGROWN, INC.
COMPUTATION OF EARNINGS PER COMMON SHARE (CONTINUED)
(IN 000S EXCEPT FOR PER SHARE DATA)
THREE MONTHS ENDED SEPTEMBER 30, 1997
Primary Computation
Net income per statement of operations $ 36
======
Weighted average number of common
shares outstanding 4,298
Weighted average number of common
stock equivalents -
------
Weighted average number of common
shares as adjusted 4,298
------
Primary income per common share $ .01
======
Fully Diluted Computation
Net income per statement of operations $ 36
=====
Weighted average number of common
shares outstanding 4,298
Weighted average number of common
stock equivalents 733
------
Weighted average number of common
shares as adjusted 5,031
------
Fully diluted income per common share $ .01
=====
ANNIE'S HOMEGROWN, INC.
COMPUTATION OF EARNINGS PER COMMON SHARE
(IN 000S EXCEPT FOR PER SHARE DATA)
SIX MONTHS ENDED SEPTEMBER 30, 1996
Primary Computation
Net loss per statement of operations $(268)
======
Weighted average number of common
shares outstanding 4,188
Weighted average number of common
stock equivalents -
------
Weighted average number of common
shares as adjusted 4,188
------
Primary loss per common share $ (.06)
======
Fully Diluted Computation
Net loss per statement of operations $(268)
======
Weighted average number of common
shares outstanding 4,188
Weighted average number of common
stock equivalents 733
-----
Weighted average number of common
shares as adjusted 4,921
-----
Fully diluted loss per common share $ (.05) (A)
=======
(A) This computation is submitted as an exhibit to the Company's Form 10-QSB in
accordance with Regulation S-B Item 601(b)(11), although presenting the
computation is not in accordance with paragraph 40 of APB Opinion 15 because the
computation produces an anti-dilutive result.
ANNIE'S HOMEGROWN, INC.
COMPUTATION OF EARNINGS PER COMMON SHARE (CONTINUED)
(IN 000S EXCEPT FOR PER SHARE DATA)
SIX MONTHS ENDED SEPTEMBER 30, 1997
Primary Computation
Net loss per statement of operations $ (134)
=======
Weighted average number of common
shares outstanding 4,278
Weighted average number of common
stock equivalents -
------
Weighted average number of common
shares as adjusted 4,278
------
Primary loss per common share $ (.03)
=======
Fully Diluted Computation
Net loss per statement of operations $(134)
======
Weighted average number of common
shares outstanding 4,278
Weighted average number of common
stock equivalents 733
-----
Weighted average number of common
shares as adjusted 5,011
-----
Fully diluted loss per common share $ (.03) (A)
=======
(A) This computation is submitted as an exhibit to the Company's Form 10-QSB in
accordance with Regulation S-B Item 601(b)(11), although presenting the
computation is not in accordance with paragraph 40 of APB Opinion 15 because the
computation produces an anti-dilutive result.
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> MAR-31-1998
<PERIOD-END> SEP-30-1997
<CASH> 133,337
<SECURITIES> 0
<RECEIVABLES> 203,709
<ALLOWANCES> 0
<INVENTORY> 899,178
<CURRENT-ASSETS> 19,214
<PP&E> 99,306
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0
0
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</TABLE>
