Large accelerated filer o
|
Accelerated filer o
|
Non-accelerated filer o
|
Smaller reporting company x
|
Outstanding as of March 31,
|
|||||
Class
|
2011
|
2010
|
|||
Common Stock $0.30 Par Value
|
519,600 Shares
|
519,350 Shares
|
PAGE
|
|||
PART I.
|
FINANCIAL INFORMATION
|
||
ITEM 1.
|
|||
CONSOLIDATED BALANCE SHEETS:
|
|||
Assets
|
|||
As of March 31, 2011 (Unaudited), December 31, 2010 and March 31, 2010 (Unaudited)
|
2
|
||
Liabilities and Stockholders’ Equity
|
|||
As of March 31, 2011 (Unaudited), December 31, 2010 and March 31, 2010 (Unaudited)
|
3
|
||
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED):
|
|||
For the three-month periods ended March 31, 2011 and 2010
|
4
|
||
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED):
|
|||
For the three-month periods ended March 31, 2011 and 2010
|
5
|
||
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
|
6 – 7
|
||
ITEM 2.
|
|||
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
|
8 – 10
|
||
ITEM 3.
|
|||
QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT MARKET RISK – N/A
|
10
|
||
ITEM 4.
|
|||
CONTROLS AND PROCEDURES
|
10
|
||
PART II.
|
OTHER INFORMATION
|
||
ITEMS 1 – 6.
|
11
|
||
SIGNATURES
|
12
|
PARADISE, INC. | COMMISSION FILE NO. 0-3026 |
AS OF
|
AS OF
|
|||||||||||
MARCH 31,
|
AS OF
|
MARCH 31,
|
||||||||||
2011
|
DECEMBER 31,
|
2010
|
||||||||||
(UNAUDITED)
|
2010
|
(UNAUDITED)
|
||||||||||
ASSETS
|
||||||||||||
CURRENT ASSETS:
|
||||||||||||
Cash and Unrestricted Demand Deposits
|
$ | 4,464,427 | $ | 4,772,056 | $ | 2,144,512 | ||||||
Accounts Receivable, Less, Allowances of $0 (03/31/11), $1,052,862 (12/31/10) and $0 (03/31/10)
|
2,043,199 | 3,619,735 | 1,426,025 | |||||||||
Inventories:
|
||||||||||||
Raw Materials
|
3,806,968 | 1,961,627 | 3,720,031 | |||||||||
Work in Process
|
22,189 | 864,689 | 16,196 | |||||||||
Finished Goods
|
4,445,682 | 3,220,268 | 5,558,023 | |||||||||
Deferred Income Tax Asset
|
294,721 | 225,942 | 405,020 | |||||||||
Income Tax Refund Receivable
|
- | - | 52,867 | |||||||||
Prepaid Expenses and Other Current Assets
|
157,709 | 348,407 | 226,661 | |||||||||
Total Current Assets
|
15,234,895 | 15,012,724 | 13,549,335 | |||||||||
Property, Plant and Equipment, Less, Accumulated Depreciation of $18,130,547 (03/31/11), $17,998,537 (12/31/10)and $17,581,863 (03/31/10)
|
4,280,263 | 4,338,717 | 4,638,316 | |||||||||
Goodwill
|
413,280 | 413,280 | 413,280 | |||||||||
Customer Base and Non-Compete Agreement
|
660,046 | 691,517 | 785,931 | |||||||||
Other Assets
|
183,261 | 183,609 | 181,309 | |||||||||
TOTAL ASSETS
|
$ | 20,771,745 | $ | 20,639,847 | $ | 19,568,171 |
AS OF
|
AS OF
|
|||||||||||
MARCH 31,
|
AS OF
|
MARCH 31,
|
||||||||||
2011
|
DECEMBER 31,
|
2010
|
||||||||||
(UNAUDITED)
|
2010
|
(UNAUDITED)
|
||||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
||||||||||||
CURRENT LIABILITIES:
|
||||||||||||
Notes and Trade Acceptances Payable
|
$ | 861,853 | $ | 247,836 | $ | 272,016 | ||||||
Current Portion of Long-Term Debt
|
- | - | 7,672 | |||||||||
Accounts Payable
|
954,206 | 304,657 | 1,015,978 | |||||||||
Accrued Liabilities
|
420,038 | 1,235,523 | 415,859 | |||||||||
Income Taxes Payable
|
- | 152,009 | - | |||||||||
Total Current Liabilities
|
2,236,097 | 1,940,025 | 1,711,525 | |||||||||
LONG-TERM DEBT, NET OF CURRENT PORTION
|
- | - | 1,260 | |||||||||
DEFERRED INCOME TAX LIABILITY
|
147,354 | 147,354 | 209,478 | |||||||||
Total Liabilities
|
2,383,451 | 2,087,379 | 1,922,263 | |||||||||
STOCKHOLDERS’ EQUITY:
|
||||||||||||
Common Stock: $0.30 Par Value, 2,000,000 Shares Authorized, 583,094 Shares Issued, 519,600 (03/31/11 and 12/31/10) and 519,350 (03/31/10) Shares Outstanding
|
174,928 | 174,928 | 174,928 | |||||||||
Capital in Excess of Par Value
|
1,288,793 | 1,288,793 | 1,288,793 | |||||||||
Retained Earnings
|
17,479,037 | 17,643,211 | 16,740,351 | |||||||||
Accumulated Other Comprehensive Loss
|
(281,245 | ) | (281,245 | ) | (281,245 | ) | ||||||
Treasury Stock, at Cost, 63,494 (03/31/11 and 12/31/10) and 63,744 (03/31/10) Shares
|
(273,219 | ) | (273,219 | ) | (276,919 | ) | ||||||
Total Stockholders’ Equity
|
18,388,294 | 18,552,468 | 17,645,908 | |||||||||
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY
|
$ | 20,771,745 | $ | 20,639,847 | $ | 19,568,171 |
FOR THE THREE
MONTHS ENDED
|
||||||||
MARCH 31,
|
||||||||
2011
|
2010
|
|||||||
Net Sales
|
$ | 2,618,939 | $ | 2,500,791 | ||||
Costs and Expenses:
|
||||||||
Cost of Goods Sold (excluding Depreciation)
|
1,980,343 | 1,853,358 | ||||||
Selling, General and Administrative Expense
|
805,860 | 813,584 | ||||||
Depreciation and Amortization
|
167,798 | 184,714 | ||||||
Interest Expense
|
- | 208 | ||||||
Total Costs and Expenses
|
2,954,001 | 2,851,864 | ||||||
Loss from Operations
|
(335,062 | ) | (351,073 | ) | ||||
Other Income
|
154,069 | 20,875 | ||||||
Loss from Operations Before Provision for Income Taxes
|
( 180,993 | ) | (330,198 | ) | ||||
Provision for Income Taxes
|
68,779 | 125,475 | ||||||
Net Loss
|
$ | (112,214 | ) | $ | (204,723 | ) | ||
Loss per Common Share
|
$ | ( 0.22 | ) | $ | ( 0.39 | ) | ||
Dividend per Common Share
|
$ | 0.10 | $ | 0.05 |
FOR THE THREE
MONTHS ENDED
|
||||||||
MARCH 31,
|
||||||||
2011
|
2010
|
|||||||
CASH FLOWS FROM OPERATING ACTIVITIES:
|
||||||||
Net Loss
|
$ | (112,214 | ) | $ | (204,723 | ) | ||
Adjustments to Reconcile Net Loss to Net Cash Used in Operating Activities:
|
||||||||
Depreciation and Amortization
|
167,798 | 184,714 | ||||||
Provision for Deferred Income Taxes
|
(68,779 | ) | (125,475 | ) | ||||
Loss on the Sale of Marketable Equity Securities
|
- | 34,221 | ||||||
Decrease (Increase) in:
|
||||||||
Accounts Receivable
|
1,576,537 | 363,881 | ||||||
Inventories
|
(2,228,255 | ) | (1,088,006 | ) | ||||
Prepaid Expenses
|
190,697 | 136,533 | ||||||
Other Assets
|
(3,971 | ) | 15,300 | |||||
Income Tax Refund Receivable
|
- | (52,867 | ) | |||||
Increase (Decrease) in:
|
||||||||
Accounts Payable
|
649,551 | 61,054 | ||||||
Accrued Expense
|
(867,446 | ) | (313,710 | ) | ||||
Income Taxes Payable
|
(152,009 | ) | (37,030 | ) | ||||
Net Cash Used in Operating Activities
|
(848,091 | ) | (1,026,108 | ) | ||||
CASH FLOWS FROM INVESTING ACTIVITIES:
|
||||||||
Purchase of Property and Equipment
|
(73,555 | ) | (38,106 | ) | ||||
Proceeds from the Sale of Marketable Equity Securities
|
- | 111,350 | ||||||
Net Cash Provided by Investing Activities
|
(73,555 | ) | 73,244 | |||||
CASH FLOWS FROM FINANCING ACTIVITIES:
|
||||||||
Net Proceeds of Short-Term Debt
|
614,017 | 85,097 | ||||||
Principal Payments of Long-Term Debt
|
- | (2,784 | ) | |||||
Net Cash Provided by Financing Activities
|
614,017 | 82,313 | ||||||
NET DECREASE IN CASH
|
(307,629 | ) | (870,551 | ) | ||||
CASH, AT BEGINNING OF PERIOD
|
4,772,056 | 3,015,063 | ||||||
CASH, AT END OF PERIOD
|
$ | 4,464,427 | $ | 2,144,512 | ||||
SUPPLEMENTAL CASH FLOW INFORMATION:
|
||||||||
Cash paid for:
|
||||||||
Interest
|
$ | - | $ | 208 | ||||
Income Tax
|
128,000 | 77,802 | ||||||
Net Supplemental Cash Flows
|
$ | 128,000 | $ | 78,010 | ||||
Noncash financing activity:
|
||||||||
Dividends Declared
|
$ | 51,960 | $ | 25,968 |
Business Segment
|
Operation
|
||
Fruit
|
Production of candied fruit, a basic fruitcake ingredient, sold to manufacturing bakers, institutional users, and retailers for use in home baking. Also, based on market conditions, the processing of frozen strawberry products, for sale to commercial and institutional users such as preservers, dairies, drink manufacturers, etc.
|
||
Molded Plastics
|
Production of plastics containers and other molded plastics for sale to various food processors and others.
|
March 31,
|
March 31,
|
|||||||
2011
|
2010
|
|||||||
Net Sales in Each Segment
|
||||||||
Fruit:
|
||||||||
Sales to Unaffiliated Customers
|
$ | 557,403 | $ | 548,740 | ||||
Molded Plastics:
|
||||||||
Sales to Unaffiliated Customers
|
2,061,536 | 1,952,051 | ||||||
Net Sales
|
$ | 2,618,939 | $ | 2,500,791 |
March 31,
|
March 31,
|
|||||||
2011
|
2010
|
|||||||
Identifiable Assets of Each Segment are Listed Below:
|
||||||||
Fruit
|
$ | 9,797,282 | $ | 10,769,641 | ||||
Molded Plastics
|
5,144,684 | 5,122,003 | ||||||
Identifiable Assets
|
14,941,966 | 15,891,644 | ||||||
General Corporate Assets
|
5,829,779 | 3,676,527 | ||||||
Total Assets
|
$ | 20,771,745 | $ | 19,568,171 |
PARADISE, INC. | COMMISSION FILE NO. 0-3026 |
PARADISE, INC. | COMMISSION FILE NO. 0-3026 |
PARADISE, INC. | COMMISSION FILE NO. 0-3026 |
PARADISE, INC. | COMMISSION FILE NO. 0-3026 |
(a)
|
Exhibits
|
Exhibit
|
|||
Number
|
Description
|
||
31.1
|
Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
|
||
31.2
|
Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
|
||
32.1
|
Certification of Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
|
||
32.2
|
Certification of Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
|
(b)
|
Reports on Form 8-K.
|
PARADISE, INC. | COMMISSION FILE NO. 0-3026 |
PARADISE, INC.
|
||||
A Florida Corporation
|
||||
/s/ Melvin S. Gordon
|
Date: May 16, 2011 | |||
Melvin S. Gordon
|
||||
Chief Executive Officer and Chairman
|
||||
/s/ Jack M. Laskowitz | Date: May 16, 2011 | |||
Jack M. Laskowitz | ||||
Chief Financial Officer and Treasurer |
1.
|
I have reviewed this quarterly report on Form 10-Q of Paradise, Inc.
|
2.
|
Based on my knowledge, this quarterly report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this quarterly report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this quarterly report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this quarterly report;
|
4.
|
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
|
a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
|
b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
|
c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
|
d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
|
a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
|
b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
Date: May 16, 2011
|
||||
/s/ Melvin S. Gordon
|
||||
Melvin S. Gordon
|
||||
Chief Executive Officer and Chairman
|
1.
|
I have reviewed this quarterly report on Form 10-Q of Paradise, Inc.
|
2.
|
Based on my knowledge, this quarterly report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this quarterly report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this quarterly report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this quarterly report;
|
4.
|
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
|
a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
|
b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
|
c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
|
d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
|
a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
|
b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
Date: May 16, 2011
|
||||
/s/ Jack M. Laskowitz
|
||||
Jack M. Laskowitz
|
||||
Chief Financial Officer and Treasurer
|
|
1.
|
The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities and Exchange Act of 1934; and
|
|
2.
|
The information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of Paradise, Inc.
|
/s/ Melvin S. Gordon
|
Date: May 16, 2011
|
|||
Melvin S. Gordon
|
||||
Chief Executive Officer and Chairman
|
|
1.
|
The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities and Exchange Act of 1934; and
|
|
2.
|
The information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of Paradise, Inc.
|
/s/ Jack M. Laskowitz
|
Date: May 16, 2011
|
|||
Jack M. Laskowitz
|
||||
Chief Financial Officer and Treasurer
|