SOURCE: Overhill Farms, Inc.

September 14, 2005 19:06 ET

Overhill Farms Comments on Airline Bankruptcy Filings

LOS ANGELES, CA -- (MARKET WIRE) -- September 14, 2005 -- Overhill Farms, Inc. (AMEX: OFI). In response to the Chapter 11 bankruptcy filing announced by Delta Airlines today, Jim Rudis, Overhill Farms' Chairman and CEO, said, "Delta's decision was not unexpected, given its much-publicized difficulties, and therefore during recent quarters we have reduced our financial exposure relating to Delta. We expect to take a charge in the fourth fiscal quarter of approximately $150,000." Mr. Rudis added, "Such a write-off would not have a material impact on the liquidity of the company."

With respect to Northwest Airlines' bankruptcy filing, the company indicated that while it currently serves Northwest, all invoices are billed and paid through a financially stable independent third-party distributor. As such, the company expects that the filing by Northwest will have no financial impact on Overhill Farms.

"Delta and Northwest have been important and valued customers of Overhill Farms for many years," Mr. Rudis said. "Given the financial stresses now facing the entire airline industry, we carefully monitor our receivables from all of our customers in this sector. However, we believe airline meals will continue to be a profitable part of our overall business," he added.

Overhill Farms (AMEX: OFI) (www.overhillfarms.com), with offices and production facilities in Vernon, California, is a leading high-volume provider of a broad range of high-quality, frozen food products, including meal entrees, complete plated meals and meal components; soups and sauces; and poultry, meat and fish specialties. The company is a value-added supplier to companies in the foodservice, retail, airline and health care industries.

"Safe Harbor" Statement: This news release contains disclosures that are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including, in particular, statements regarding the financial impact of Delta Airlines' and Northwest Airlines' Chapter 11 bankruptcy filings and regarding our expectations of continued profitability from the Company's airline meal business. These forward-looking statements are based on current facts, expectations or beliefs, including, but not limited to, the Company's financial exposure to Delta Airlines and Northwest Airlines, and the Company's understanding of the status of the airline industry generally. For this purpose, statements of historical fact may be deemed to be forward-looking statements. All statements regarding the Company's expected future financial position, results of operations, cash flows, dividends, financing plans, business strategy, competitive positions, growth opportunities for existing products or products under development, and statements regarding future opportunities, acquisitions or business combinations are forward-looking statements. In addition, forward-looking statements include statements in which the Company uses words such as "expect," "believe," "anticipate," "confident," "intend," "strategy, "plan," "will," "estimate," "project," "goal," "target" or similar expressions. Although the Company believes the expectations reflected in such forward-looking statements are based on reasonable assumptions, the Company can give no assurance that these expectations will prove to have been correct, and actual results may differ materially from those reflected in the forward-looking statements.

The Company cautions that these statements by their nature involve risks and uncertainties, and actual results may differ materially depending on a variety of important factors, including, among others, the impact of competitive products and pricing; market conditions and weather patterns that may affect the cost of raw material as well as the market for the Company's products; changes in the company's business environment, including actions of competitors and changes in customer preferences; the occurrence of acts of terrorism, such as the events of September 11, 2001, or acts of war; natural disasters such as Hurricane Katrina that can impact, among other things, costs of fuel and raw materials, changes in governmental laws and regulations, including income taxes; market demand for new and existing products; and other factors as may be discussed in the Company's Annual Report on Form 10-K for the year ended September 26, 2004, and other reports filed with the Securities and Exchange Commission.

Contact Information

  • Contact:

    James Rudis
    Chairman, President and CEO
    Overhill Farms, Inc.
    323-582-9977

    Contact:
    Alexander Auerbach
    Auerbach & Co. Public Relations
    1-800-871-2583
    Email Contact