updated 11/12/2010 4:15:40 AM ET 2010-11-12T09:15:40

MOORE, Okla., Nov. 11, 2010 (GLOBE NEWSWIRE) -- Vaughan Foods, Inc. (OTCBB:FOOD), a regional leader in fresh-cut vegetables and fruit products, and a broad line of refrigerated prepared salads, sauces, soups, and side-dishes, today announced its operating results for the 3rd quarter ended September 30, 2010.

Vaughan recorded a net loss of $365,000, or $0.04 per share during the third quarter of 2010, compared with a net loss of $218,000, or $0.05 per share in the comparable quarter of 2009. Gross profit was 7.6 percent in the 3rd quarter compared with 8.2 percent in the year earlier quarter.

Net income for the nine months ended September 30, 2010 was $12,000 compared to a net loss of $466,000 or $0.10 per share in the same period of 2009 – a year-over-year turnaround of $0.5 million. Gross profit increased to 10.2 percent in the year-to-date period of 2010 compared to 8.9 percent in the same period of 2009.

Earnings before interest, taxes, depreciation and amortization ("EBITDA") improved to $2.5 million in the nine months ended September 30, 2010 compared with $1.3 million in the period of 2009. The Company raised $1.7 million in net proceeds from new equity, decreased its outstanding accounts payable by $2.1 million, decreased short-term borrowings on its revolving line of credit by $0.4 million, and paid off long-term debt of $0.6 million.

"Following the second quarter report of the highest earnings since we became a public company, our third quarter gross margins were somewhat disappointing but the results were mostly in line with our expectations. The food business in general and Fresh Cut produce in particular continue to operate in a highly challenging environment. In addition, the business is inherently uneven because of seasonality and the timing of marketing and product decisions by many of our customers. Our third quarter results are reflective of both factors," said Herb Grimes, Chairman and CEO.  

"Our diverse high quality product lines meet a growing market need and are instrumental in strengthening customer loyalty and in building solid new growth opportunities, as we continue expanding and seeking new sources of revenue."

Investor Conference Call

Vaughan management will host an investor conference call on Friday, November 12, 2010 at 10:00 a.m. ET to discuss these results.

Interested parties should call (877) 353-0040 (domestic) or (970) 315-0529 (international) at least 5 minutes before the scheduled start time (no passcode required). You may also access this call via the Internet at:


For those who are unavailable to listen to the live broadcast, a replay will be available through December 2, 2010 and can be accessed by dialing (800) 642-1687 (domestic), and (706) 645-9291 (international). The conference ID is 23633800.

About Vaughan Foods, Inc.

Vaughan Foods is an integrated manufacturer and distributor of value-added, refrigerated foods. We are uniquely able to distribute fresh-cut produce items along with a full array of value-added refrigerated prepared foods multiple times per week. We sell to both food service and retail sectors. Our products consist of fresh-cut vegetables, fresh-cut fruits, salad kits, prepared salads, dips, spreads, soups, sauces and side dishes. Our primary manufacturing facility is in Moore, Oklahoma. Our soups and sauces are manufactured in our facility in Fort Worth, Texas.

The Vaughan Foods, Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=4726

Safe Harbor Statement

This press release contains certain statements that are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, about the future performance of Vaughan Foods, Inc. based on Management's assumptions and beliefs in light of information currently available to it. These statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of Vaughan Foods, Inc., including: the customary risks experienced by food companies, such as prices for commodity and other inputs, industry and competitive conditions (all of which may be more unpredictable in light of continuing uncertainty in the United States economic environment), government regulations, food safety issues and product recalls affecting the company or the industry, labor relations, taxes, political instability and terrorism; unusual weather events, conditions or crop risks; and access to and cost of financing, among other things.

These and other risk factors are outlined in the Company's Forms 10-K and 10-Q and other reports filed with the Securities and Exchange Commission. Furthermore, Vaughan Foods, Inc. undertakes no obligation to update, amend or clarify forward-looking statements whether as a result of new information, future events, or otherwise.

© Copyright 2012, GlobeNewswire, Inc. All Rights Reserved


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