SECURITIES AND EXCHANGE COMMISSION
WASHINGTON D.C. 20549
FORM 10-Q
(Mark One)
(X) QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934
For the thirty-nine weeks ended September 25, 1999
( ) 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 1-5084
TASTY BAKING COMPANY
(Exact name of company as specified in its charter)
Pennsylvania 23-1145880
- --------------------------------------------------------------------------------
(State of Incorporation) (IRS Employer Identification Number)
2801 Hunting Park Avenue, Philadelphia, Pennsylvania 19129
- --------------------------------------------------------------------------------
(Address of Principal Executive Offices) (Zip Code)
(215) 221-8500
- --------------------------------------------------------------------------------
(Company's Telephone Number, including area code)
Indicate by check mark whether the company (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 company 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 CORPORATE ISSUERS:
Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the latest practicable date.
Common Stock, par value $.50 7,822,008
- --------------------------------------------------------------------------------
(Title of Class) (No. of Shares Outstanding
at November 5, 1999)
INDEX OF EXHIBITS IS LOCATED ON PAGE 10 OF 11.
1 of 11
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TASTY BAKING COMPANY AND SUBSIDIARIES
INDEX
<TABLE>
<CAPTION>
Page
<S> <C> <C>
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
Consolidated Condensed Balance Sheets
September 25, 1999 and December 26, 1998................................................................3
Consolidated Condensed Statements of Operations
Thirteen and Thirty-nine weeks ended
September 25, 1999 and September 26, 1998...............................................................4
Consolidated Condensed Statements of Cash Flows
Thirty-nine weeks ended September 25, 1999 and September 26, 1998.......................................5
Notes to Consolidated Condensed Financial Statements....................................................6
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations...................................................................7-9
Item 3. Quantitative and Qualitative Disclosure
About Market Risk9
PART II. OTHER INFORMATION
Item 4. Submission of Matters to a Vote of Security Holders ...................................................10
Item 6. Exhibits and Reports on Form 8-K.......................................................................10
Signature .......................................................................................................11
</TABLE>
2 of 11
<PAGE>
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
TASTY BAKING COMPANY AND SUBSIDIARIES
CONSOLIDATED CONDENSED BALANCE SHEETS
(unaudited)
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
September 25, 1999 December 26, 1998
- ------------------------------------------------------------------------------------------------------------------------------------
Current assets:
<S> <C> <C>
Cash $ 31,538 $ 372,871
Accounts and notes receivable, net of
allowance for doubtful accounts 21,796,300 21,214,576
Inventories:
Raw materials 3,197,553 2,673,101
Work in progress 872,651 621,459
Finished goods 1,462,006 1,412,720
--------------------------------------------------------
5,532,210 4,707,280
Deferred income taxes, prepayments and other 2,942,060 2,251,425
--------------------------------------------------------
Total current assets 30,302,108 28,546,152
--------------------------------------------------------
Property, plant and equipment: 168,279,562 159,419,070
Less accumulated depreciation 109,270,334 110,998,936
--------------------------------------------------------
59,009,228 48,420,134
--------------------------------------------------------
Long-term receivables 10,485,907 10,851,320
--------------------------------------------------------
Deferred income taxes 10,452,681 10,452,681
--------------------------------------------------------
Spare parts inventory and miscellaneous assets 3,210,131 3,436,481
--------------------------------------------------------
Total assets $113,460,055 $101,706,768
========================================================
Current liabilities:
Current portion of long-term debt $ - $ 273,053
Current obligations under capital leases 178,987 325,873
Notes payable, banks 2,400,000 1,200,000
Accounts payable 6,535,962 4,204,211
Accrued liabilities 6,886,999 6,733,029
--------------------------------------------------------
Total current liabilities 16,001,948 12,736,166
--------------------------------------------------------
Long-term debt, less current portion 17,000,000 13,500,000
--------------------------------------------------------
Long-term obligations under capital leases,
less current portion 4,122,683 261,283
--------------------------------------------------------
Accrued pensions and other liabilities 13,789,653 12,683,231
--------------------------------------------------------
Postretirement benefits other than pensions 18,471,740 18,160,785
--------------------------------------------------------
Shareholders' equity:
Common stock 4,558,243 4,558,243
Capital in excess of par value of stock 29,773,944 29,762,210
Retained earnings 26,650,549 27,030,403
--------------------------------------------------------
60,982,736 61,350,856
Less:
Treasury stock, at cost 16,401,631 16,372,219
Management Stock Purchase Plan
receivables and deferrals 507,074 613,334
--------------------------------------------------------
44,074,031 44,365,303
--------------------------------------------------------
Total liabilities and shareholders' equity $113,460,055 $101,706,768
========================================================
</TABLE>
See accompanying notes to consolidated condensed financial statements.
3 of 11
<PAGE>
TASTY BAKING COMPANY AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
(unaudited)
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
For the Thirteen Weeks Ended For the Thirty-nine Weeks Ended
Sept. 25, 1999 Sept. 26, 1998 Sept. 25, 1999 Sept. 26, 1998
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Gross Sales $53,765,048 $57,265,322 $167,680,647 $ 171,359,482
Less discounts and allowances (18,131,163) (20,441,486) (55,690,207) (57,850,544)
------------------------------------------------------------------------------
Net Sales 35,633,885 36,823,836 111,990,440 113,508,938
------------------------------------------------------------------------------
Costs and expenses:
Cost of sales 23,344,953 22,790,068 71,046,258 70,922,137
Depreciation 1,726,779 1,656,291 5,418,093 4,996,685
Selling, general and
administrative 9,535,289 10,520,967 30,936,714 32,162,982
Interest expense 321,658 183,326 811,838 502,877
Restructure charge - - 950,000 -
Other income, net (306,406) (339,873) (984,734) (1,048,593)
------------------------------------------------------------------------------
34,622,273 34,810,779 108,178,169 107,536,088
------------------------------------------------------------------------------
Income before provision for
income taxes 1,011,612 2,013,057 3,812,271 5,972,850
Provision for income taxes 287,571 680,540 1,170,150 1,985,540
------------------------------------------------------------------------------
Income before cumulative effect of a change
in accounting principle 724,041 1,332,517 2,642,121 3,987,310
Cumulative effect of a change in accounting
principle for start-up costs - - (204,709) -
------------------------------------------------------------------------------
Net income $ 724,041 $ 1,332,517 $2,437,412 $ 3,987,310
==============================================================================
Average common shares outstanding:
Basic 7,823,546 7,812,542 7,824,782 7,803,583
Diluted 7,847,241 7,925,851 7,878,804 7,958,800
Per share of common stock:
Income before cumulative effect of a change
in accounting principle: Basic $0.09 $0.17 $0.34 $0.51
================= ================ ================== ==================
Diluted $0.09 $0.17 $0.34 $0.50
================= ================ ================== ==================
Cumulative effect of a change in accounting
principle for start-up costs:
Basic and Diluted - - ($0.03) -
================= ================ ================== ==================
Net income: Basic $0.09 $0.17 $0.31 $0.51
================= ================ ================== ==================
Diluted $0.09 $0.17 $0.31 $0.50
================= ================ ================== ==================
Cash dividend $0.12 $0.12 $0.36 $0.36
================= ================ ================== ==================
</TABLE>
See accompanying notes to consolidated condensed financial statements.
4 of 11
<PAGE>
TASTY BAKING COMPANY AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
(unaudited)
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------------------------------
For the Thirty-nine Weeks Ended
September 25, 1999 September 26, 1998
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Cash flows from (used for) operating activities
Net income $ 2,437,412 $ 3,987,310
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation 5,418,093 4,996,685
Amortization 57,712 133,503
Cumulative effect of change in accounting principle 204,709 --
Other 1,287,890 1,535,511
Changes in assets and liabilities
affecting operations 553,554 (5,262,330)
-------------------------------
Net cash from operating activities 9,959,370 5,390,679
-------------------------------
Cash flows from (used for) investing activities
Purchase of property, plant and equipment (11,922,311) (8,700,286)
Proceeds from owner/operators' loan repayments 3,383,101 2,431,492
Loans to owner/operators (3,020,970) (2,223,593)
Other 33,038 2,288
-------------------------------
Net cash used for investing activities (11,527,142) (8,490,099)
-------------------------------
Cash flows from (used for) financing activities
Additional long-term debt 6,000,000 5,500,000
Dividends paid (2,817,266) (2,810,032)
Payment of long-term debt (3,172,405) (1,431,140)
Net increase in short-term debt 1,200,000 1,100,000
Other 16,110 122,150
-------------------------------
Net cash from financing activities 1,226,439 2,480,978
-------------------------------
Net decrease in cash (341,333) (618,442)
Cash, beginning of year 372,871 748,117
-------------------------------
Cash, end of period $ 31,538 $ 129,675
===============================
Supplemental Cash Flow Information:
Cash paid during the period for:
Interest $ 833,760 $ 565,237
===============================
Income taxes $ 1,206,479 $ 1,512,267
===============================
Non-Cash Activity:
Captial lease obligation $ 4,113,866 $ --
===============================
</TABLE>
See accompanying notes to consolidated condensed financial statements
5 of 11
<PAGE>
TASTY BAKING COMPANY AND SUBSIDIARIES
NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
1. Interim Financial Information
-----------------------------
In the opinion of management, the accompanying unaudited consolidated
condensed financial statements contain all adjustments (consisting of
only normal recurring accruals) necessary to present fairly the financial
position of the company as of September 25, 1999 and December 26, 1998,
the results of its operations for the thirteen and thirty-nine weeks
ended September 25, 1999 and September 26, 1998 and cash flows for the
thirty-nine weeks ended September 25, 1999 and September 26, 1998. These
unaudited consolidated condensed financial statements should be read in
conjunction with the consolidated financial statements and footnotes
thereto in the company's 1998 Annual Report to Shareholders. In addition,
the results of operations for the thirty-nine weeks ended September 25,
1999 are not necessarily indicative of the results to be expected for the
full year.
Certain expense items are charged to operations in the year incurred.
However, for interim reporting purposes the expenses are charged to
operations on a pro-rata basis over the company's accounting periods. For
the thirteen and Thirty-nine weeks ended September 25, 1999 and September
26, 1998, the difference between the actual expenses incurred and the
expenses charged to operations was not material.
2. Net Income Per Common Share
---------------------------
Net income per common share is calculated according to the requirements
of Statement of Financial Accounting Standards No. 128 - "Earnings Per
Share" which requires companies to present basic and diluted earnings per
share. Net income per common share - Basic is based on the weighted
average number of common shares outstanding during the year. Net income
per common share - Diluted is based on the weighted average number of
common shares and dilutive potential common shares outstanding during the
year. The company's dilutive potential common shares outstanding during
the year result entirely from dilutive stock options.
3. Restructure Charge
------------------
During the first quarter the company discontinued forty-three route
territories in those areas not achieving appropriate levels of
profitability, assigning most of those territories to regional
distributorships. As a result, the company incurred a charge of $950,000
resulting in a reduction in net income of $570,570 or $.07 per share,
primarily relating to costs associated with the repurchase of some
owner/operator territories as well as severance payments and other
related costs. Substantially all the costs accrued under this charge have
been satisfied.
4. Accounting Change
-----------------
During the third quarter of 1999, the company changed its method of
determining the cost of its sugar and packaging supply inventories from
the LIFO method to the FIFO method. The change was made because the
majority of the company's peer group uses the FIFO method, and the LIFO
method had been adopted when the company conducted business in two
different segments and had significant levels of volatile inventories
related to the other segment. Recently, LIFO inventories have remained
relatively stable or have been decreasing and the calculation of LIFO
versus FIFO did not materially impact the financial statements. All
previously reported results have been restated to reflect the retroactive
application of this accounting change as required by generally accepted
accounting principles. The aggregate effect of this restatement was an
increase in shareholders' equity of $264,000. The accounting change had
no effect on net income for the thirteen and thirty-nine weeks ended
September 25, 1999 and September 26, 1998. The effect of this change was
to increase net income in 1998 by $3,000, decrease net income in 1997 by
$20,000 and increase net income in 1996 by $17,000.
6 of 11
<PAGE>
TASTY BAKING COMPANY AND SUBSIDIARIES
Item 2. Management's Discussion and Analysis of Financial Condition
and Results of Operations
-----------------------------------------------------------
Results of Operations
- ---------------------
For the third quarter of 1999, the company realized net income of $724,041
versus $1,332,517 for the third quarter of 1998. Net income per share decreased
to $.09 from $.17 per share for the comparable quarter of 1998.
Net income for the thirty-nine weeks ended September 25, 1999 was $2,437,412 or
$.31 per share. Included in net income for 1999 were two non-recurring charges.
During the first quarter the company discontinued forty-three route territories
in certain areas not achieving appropriate levels of profitability, assigning
most of those territories to regional distributorships. This resulted in an
after-tax charge of $570,570 or $.07 per share, primarily related to costs
associated with the repurchase of some owner/operator territories as well as
employee severance payments and other related costs. The second charge relates
to the adoption of a new accounting regulation, which required the write off of
the remaining start-up costs pertaining to the company's acquisition of it's
Oxford facility. This charge is reflected as a cumulative effect of a change in
accounting principle which resulted in an after-tax charge to net income in the
amount of $204,709 or $.03 per share. After eliminating the effect of these two
non-recurring charges, the 1999 results were $3,212,691 or $.41 per share
compared to $3,987,310 or $.50 per share for the thirty-nine weeks ended
September 26, 1998.
For the third quarter, gross sales were $53,765,048, compared to $57,265,322
last year. Gross sales, less discounts and allowances, resulted in net sales of
$35,633,885, compared to $36,823,836 reported last year. The decrease in gross
sales resulted from the extreme hot weather conditions. In addition, heavy
pressures existed from aggressive promotion on the part of the competition at a
time when the company was promoting less aggressively. The decrease in net sales
was mitigated by the decrease in promotional activity and a decrease in returns.
Cost of sales, as a percentage of gross sales, was 43.4% and 39.8% for the third
quarters of 1999 and 1998, respectively. A portion of the increase is related to
the decrease in sales volume, considering that certain fixed costs are a
component of cost of sales. During 1999, the company also changed the way it
allocated some expenses resulting in a decrease in selling, general and
administrative expenses and a corresponding increase in cost of sales. The
balance is from inefficiencies resulting from the adaptation to new production
equipment and the sale of large cake at a lower profit margin than our core
products.
Selling, general and administrative expenses for the third quarter of 1999
decreased by $985,678 or 9.4% compared to the third quarter of 1998. The
decrease resulted from lower shipping costs relative to the decrease in sales
volume, savings associated with the route restructure as well as continued
efforts to control costs.
Interest expense increased for the third quarter of 1999 versus the third
quarter of 1998 as a result of increased average borrowing levels.
The effective tax rate was 28.4% for the quarter ended September 25, 1999 and
33.8% for the quarter ended September 26, 1998 which compares to a federal
statutory rate of 34%. The difference between the effective rate and the
statutory rate in the third quarters of 1999 and 1998 was due to low taxable
income compounded by the effect of state tax benefits arising from passive
income.
7 of 11
<PAGE>
Year 2000 disclosure
- --------------------
The company has been engaged in an ongoing process to determine the effect
that the change to the year 2000 (Y2K) will have on operations. The company has
completed an assessment of its internal hardware and software information
technology systems and has determined that the systems will be Y2K compliant.
During 1998, all new, Y2K compliant, hardware was installed. New business system
software is being installed. To date, approximately 60% of the new business
system modules have been installed and are operational. The remaining modules
are currently being installed. The company will end its fiscal year on the
current computer system and has, therefore, delayed the start-up of the
remaining modules until the beginning of the new fiscal year. If the company
determines that all the modules will not be ready to go live at the beginning of
the year, a contingency plan is in place. As a precaution, the company is
modifying the existing sales order processing and shipping system software to be
Y2K compliant. The company has tested these modifications and they will be
installed in the fourth quarter. For the new business system software, the
software supplier has warranted that this system is Y2K compliant and the
company believes that the supplier has done sufficient testing of its product to
make such a claim. The decisions to replace these systems were primarily based
on the ongoing and expected future company and industry requirements and the
inability of the current applications to meet these expectations. The company
has not accelerated the plans to replace these systems because of the Y2K issue.
The company utilizes an automated hand-held sales order system which is,
however, not currently Y2K compliant. The existing system is in the process of
being repaired to bring it into Y2K compliance. Repair was scheduled to be
completed in the third quarter, however, scheduling issues moved this time frame
to the fourth quarter. Repair is proceeding without difficulty and will be
completed in the fourth quarter.
A committee was formed to take an inventory of all manufacturing systems to
determine Y2K compliance. The raw ingredient distribution machinery has already
been corrected to resolve a Y2K problem; the cost was immaterial. The company
received positive responses to inquiries regarding the Y2K compliance of certain
manufacturing equipment from the individual manufacturers of the equipment.
There were minor repairs that had to be made to computers in the manufacturing
system to prevent Y2K complications. These repairs have been made and the
equipment has been tested. The company feels secure that production will not
experience any complications as a result of the change to the year 2000.
The company's Human Resource/Payroll system required a version upgrade to bring
the software into Y2K compliance. This project was completed during the third
quarter of 1999. The cost of the repair was immaterial.
Questionnaires have been sent to approximately 800 of our vendors and customers
to identify any issues that may impact the company externally. To date, the
company has received an estimated 75% return response to these questionnaires.
No issues pertaining to the year 2000 have been raised with the responses we
have received so far. There are limitations to the amount of reliance the
company can place on the responses to these questionnaires considering the
respondents have to rely on responses from their suppliers and customers. Should
any suppliers have complications going into the year 2000 the company has
alternative suppliers. In the case of major customers, the company does not have
a single customer whose purchases exceed 10% of the gross sales of the company.
If any of these customers were to have complications, more of the product would
be sold through other retailers. Since ordering for most customers in the
principal marketing area is accomplished by independent route operators and not
by the retailer directly, any losses in revenues the company would incur would
not be expected to be material.
8 of 11
<PAGE>
Year 2000 disclosure (continued)
- --------------------------------
To date, the company has not incurred any significant costs related to the
assessment of, and preliminary efforts in connection with, its Y2K issues. Based
on the evaluations to date, the company does not anticipate any significant
complications related to Y2K or any significant costs to avoid those
complications.
The year 2000 statements set forth above constitute "Year 2000 Readiness
Disclosures" as defined in the Year 2000 Information and Readiness Disclosure
Act of 1998, 15 U.S.C. ss.1, Note.
Financial Condition
- -------------------
The company has consistently demonstrated the ability to generate sufficient
cash flow from operations. Bank borrowings, under various lines of credit
arrangements, are used to supplement cash flow from operations during periods of
cyclical shortages.
For the thirty-nine weeks ended September 25, 1999, net cash from operating
activities increased by $4,568,691 to $9,959,370 from $5,390,679 for the same
period in 1998. The increase over 1998 was due to the payment of the IRS
settlement in the first quarter of 1998, which was accrued in 1997, an increase
in accounts payable, as well as a much smaller increase in accounts receivable
in 1999 compared to the same period in 1998.
Net cash used for investing activities for the thirty-nine weeks ended September
25, 1999 increased by $3,037,043 relative to the same period in 1998 principally
due to the upgrade of the bakery's production equipment as a part of a plant
modernization program.
Net cash from financing activities for the thirty-nine weeks ended September 25,
1999 decreased by $1,254,539 relative to the same thirty-nine weeks in 1998. The
decrease is primarily the result of a net decrease in short and long-term
borrowings relative to the prior year.
Non Cash Activity disclosed in Supplemental Cash Flow Information refers to a
capital lease between the company and its Pension Plan("Plan") for its principal
production facilities which are owned by the Plan. On July 1, 1999, the company
exercised the first of five, three-year extension options with the Plan upon the
expiration of the lease's initial 15 year term. As per the provisions of
Statement of Financial Accounting Standards(SFAS) No. 13, as amended by SFAS No.
98, the company was required to revalue its lease with the Plan at the present
value of the future minimum lease payments over the expected renewal periods. As
a result, the values of the asset and obligation have been increased by the
amount disclosed.
For the remainder of 1999 the company anticipates that cash flow from
operations, along with the continued availability of bank lines of credit, the
revolving credit agreement and other long-term financing, will provide
sufficient cash to meet operating and financing requirements.
Item 3. Quantitative and Qualitative Disclosure About Market Risk
---------------------------------------------------------
The company has certain floating rate debt notes. Under current market
conditions, the company believes that changes in interest rates would not have a
material impact on the financial statements of the company. The company also has
notes receivable from owner operators whose rates adjust every three years, and,
therefore, would offset the fluctuations in the company's notes payable. The
company also has the right to sell these notes receivable, and could use these
proceeds to liquidate a corresponding amount of the debt notes payable.
9 of 11
<PAGE>
TASTY BAKING COMPANY AND SUBSIDIARIES
PART II. OTHER INFORMATION
Item 4. Submission of Matters to a Vote of Security Holders
---------------------------------------------------
No matters were submitted to a vote of security holders during the third
quarter of the fiscal year covered by this report.
Item 6. Exhibits and Reports on Form 8-K
--------------------------------
(a) Exhibits:
Exhibit 18 - Preferability Letter
Exhibit 27 - Financial Data Schedule
(b) Reports on Form 8-K
The company did not file a report on Form 8-K during the
thirty-nine weeks ended September 25, 1999.
Exhibit Index
-------------
Exhibit 18 - Preferability Letter
Exhibit 27 - Financial Data Schedule
10 of 11
<PAGE>
TASTY BAKING COMPANY AND SUBSIDIARIES
SIGNATURE
---------
Pursuant to the requirements of the Securities Exchange Act of 1934, the company
has duly caused this report to be signed on its behalf by the undersigned
thereunto duly authorized.
TASTY BAKING COMPANY
(Company)
November 8, 1999 /S/ John M. Pettine
(Date) JOHN M. PETTINE
EXECUTIVE VICE PRESIDENT AND
CHIEF FINANCIAL OFFICER
(PRINCIPAL FINANCIAL AND ACCOUNTING OFFICER)
11 of 11
November 8, 1999
Board of Directors
Tasty Baking Company
2801 Hunting Park Avenue
Philadelphia, PA 19129
Dear Directors:
We are providing this letter to you for inclusion as an exhibit to your Form
10-Q filing pursuant to Item 601 of Regulation S-K.
We have been provided a copy of the Company's Quarterly Report on Form 10-Q for
the period ended September 25, 1999. Note 4 therein describes a change in
accounting principle from the last-in, first-out (LIFO) method of valuing
inventories to the first-in, first-out (FIFO) method. It should be understood
that the preferability of one acceptable method of accounting over another for
valuing inventories has not been addressed in any authoritative accounting
literature, and in expressing our concurrence below we have relied on
management's determination that this change in accounting principle is
preferable. Based on our reading of management's stated reasons and
justification for this change in accounting principle in the Form 10-Q, and our
discussions with management as to their judgment about the relevant business
planning factors relating to the change, we concur with management that such
change represents, in the Company's circumstances, the adoption of a preferable
accounting principle in conformity with Accounting Principles Board Opinion No.
20.
We have not audited any financial statements of the Company as of any date or
for any period subsequent to December 26, 1998. Accordingly, our comments are
subject to change upon completion of an audit of the financial statements
covering the period of the accounting change.
Very truly yours,
PricewaterhouseCoopers LLP
<TABLE> <S> <C>
<ARTICLE> 5
<CIK> 0000096412
<NAME> TASTY BAKING COMPANY
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> OTHER
<FISCAL-YEAR-END> DEC-25-1999
<PERIOD-START> DEC-27-1998
<PERIOD-END> SEP-25-1999
<CASH> 32
<SECURITIES> 0
<RECEIVABLES> 24,614
<ALLOWANCES> (2,818)
<INVENTORY> 5,532
<CURRENT-ASSETS> 30,302
<PP&E> 168,280
<DEPRECIATION> (109,270)
<TOTAL-ASSETS> 113,460
<CURRENT-LIABILITIES> 16,002
<BONDS> 21,123
0
0
<COMMON> 4,558
<OTHER-SE> 39,516
<TOTAL-LIABILITY-AND-EQUITY> 113,460
<SALES> 111,990
<TOTAL-REVENUES> 111,990
<CGS> 71,046
<TOTAL-COSTS> 71,046
<OTHER-EXPENSES> 5,418
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 812
<INCOME-PRETAX> 3,812
<INCOME-TAX> 1,170
<INCOME-CONTINUING> 2,642
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> (205)
<NET-INCOME> 2,437
<EPS-BASIC> 0.31
<EPS-DILUTED> 0.31
</TABLE>
