Net Income Up Sharply at All American Gourmet

With its sales and market share on the rise, All American Gourmet Co. reported a third quarter turnaround as its net income jumped to $1.45 million from a loss of $52,000 in the year-ago period.

The Orange-based producer of Budget Gourmet, the fourth largest selling frozen entree in its category, also reported an 84% increase in sales for the quarter ended Nov. 3, to $27.7 million from $15 million.

Net income for the first nine months was $3.9 million--including an extraordinary income tax benefit of $634,000--compared with a loss of $759,000 last year. Sales for the first three quarters nearly tripled to $63.9 million from $23.4 million.

Ernest W. Townsend, president of All American, said that the company has recently seen its market share rise slightly. The Budget Gourmet line, he said, now accounts for 9% of the frozen single-dish entree category.

All American has production facilities in Atlanta, Ga., and Pittsburgh, Penn., and is in the process of opening a third plant in Clearfield, Utah. General Host Corp., of Stamford, Conn., owns 80% of All American.