ICEE-USA Says It Lost $205,000 for 1986

ICEE-USA said Tuesday that it lost $205,000 for 1986, contrasted with year-earlier net income of $231,000. Revenue for the year of $14.6 million was up 10.6% from $13.2 million in 1985.

For the fourth quarter, the Anaheim-based frozen-drink maker reported a net loss of $408,000, a slight improvement from the net loss of $476,000 reported a year earlier. Revenue for the period was $3.2 million, a 17% gain from $2.8 million for the same period in 1985.

Separately, ICEE announced that a Mississippi court has dismissed a lawsuit seeking to halt the company’s potentially lucrative contract to purchase Coca Cola and Fanta brand syrups for flavoring its drinks.

Universal Industries Corp., a Columbus, Miss., flavoring maker that supplies flavored syrups to ICEE, claimed in its suit that the five-year agreement between ICEE and Coca Cola violated an exclusive obligation ICEE has to purchase syrups from Western Syrup Co. of Santa Fe Springs, Calif., of which Universal owns 50%.

Plans to Use Coca Cola Syrups

ICEE, which owns the other 50% of Western Syrup, argued that there was no exclusive contract with Western.

Universal Industries officials could not be reached for comment.

As a result of the dismissal of the suit, ICEE said it will begin using Coca Cola syrups in its beverages, which are sold through approximately 1,660 ICEE machines in the Western United States, Canada and Mexico. Use of the popular Coca Cola flavorings is expected to boost ICEE sales.

At Western Syrup, a spokesman declined to speculate on the effect of the court decision but said ICEE still will purchase flavored syrups from Western.

ICEE had been purchasing almost 45% of its syrup from Western and 20% directly from Universal.

ICEE officials could not be reached for comment on either the company’s financial results or the dismissal of the suit.

In composite trading Tuesday on the American Stock Exchange, ICEE closed at $4.50, down 12 1/2 cents from Monday.