EAST BRUNSWICK, N.J.--(BUSINESS WIRE)--May 24, 1999--EcoScience Corporation (NASDAQ:ECSC), the largest U.S. producer of premium, greenhouse grown tomatoes, today announced results for the quarter ended April 4, 1999. On January 1, 1999, the Company changed to a calendar year reporting period. "Our Company experienced improved operations in the first quarter, reflecting increased capacity of our premium, greenhouse grown tomatoes from new production facilities opened this past year," said Michael A. DeGiglio, President and Chief Executive Officer. DeGiglio added, "In the near term, we will continue to focus on securing funding to provide liquidity and adequate resources to continue our production and marketing expansion and to build our brand recognition." The company intends to refinance certain debt including a portion of long-term debt which has been classified as current due to the violation of certain financial covenants. For the first quarter ended April 4, 1999, net revenues increased 49%, to $18,264,000, compared to $12,291,000 in 1997. First quarter EBITDA (earnings before interest, taxes, depreciation and amortization) are $3,539,000, against $1,995,000 last year, a gain of 77%. The net loss for the 1999 first quarter amounted to $730,000, or ($0.06) per share, compared with net income of $98,000, or $0.01 per share, a year-earlier. This net loss reflects an increase of approximately $1,200,000 of interest costs related to increased indebtedness from the acquisition of all limited partnership interests held by a third party in certain greenhouse facilities and the imposition of a default rate of interest. DeGiglio concluded, "Sales growth for the quarter was led by sales of our premium, greenhouse grown tomatoes, which more than doubled this quarter to $15,159,000, as compared to the first quarter of 1998. This reflects increased production as a result of an aggregate 127 acres of greenhouse facilities that was added in 1998 as part of our strategic expansion. EcoScience now operates seven greenhouse facilities throughout the U.S. representing approximately 190 acres of growing capacity." EcoScience markets its premium beefsteak and cluster on-the-vine tomatoes under the Village Farms(R) and Home Choice(TM) brand names. In addition, EcoScience develops, markets and distributes biological and agricultural products. This press release contains "forward-looking statements" which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that known and unknown risks, uncertainties and other factors may cause actual results, performance or achievements of EcoScience to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Factors that might cause such differences include EcoScience's risks and uncertainties related to EcoScience's future profitability, ability to meet its capital needs, government regulation, continued cooperation of the Company's creditors, competition, market acceptance, year 2000 compliance and other factors described in Item 7A and elsewhere in EcoScience's annual report on Form 10-K filed with the Securities and Exchange Commission. To receive additional information on EcoScience Corporation, please visit our website at www.EcoSci.com EcoScience Corporation Summary Financial Data ( In thousands, except share amounts) Thirteen weeks Three months ended ended Statement of Operations Data: April 4, 1999 March 31, 1998 -------------- -------------- Net revenues $18,264 $12,291 Cost of revenues 12,839 7,993 -------------- -------------- Gross profit 5,425 4,298 Operating expenses 3,630 2,784 -------------- -------------- Operating income 1,795 1,514 Other (expense) income (2,584) (995) -------------- -------------- (Loss) income before taxes and minority interest (789) 519 Provision for income taxes 3 0 -------------- -------------- (Loss) income before minority interest (792) 519 Minority interest 62 (421) -------------- -------------- Net (loss) income ($730) $98 ============== ============== (Loss) earnings per share: Basic: Net (loss) earnings per share ($0.06) $0.01 ============== ============== Weighted average common shares outstanding 12,619 11,619 ============== ============== Diluted: Net (loss) earnings per share ($0.06) $0.01 ============== ============== Weighted average common shares outstanding 12,619 11,660 ============== ============== Balance Sheet Data: April 4, 1999 January 3, 1999 ------------- --------------- Cash, cash equivalents and investments 660 1,222 Working capital (82,073) (82,661) Total assets 97,793 101,864 Total current liabilities 100,266 103,486 Total noncurrent liabilities 2,716 2,807 Total stockholders' (deficit) (5,791) (5,094)  