ANCHORAGE, Alaska -- Carr Gottstein Foods here said last week the decision to shut down a food-service operation and discontinue a wholesaling venture in Russia resulted in lower sales for the third quarter and 39 weeks ended Sept. 28. However, operating cash flow improved for the fourth consecutive quarter.
. The company said total sales were affected by its decision to close its YES Foods institutional food-service business and discontinue its wholesaling service to a Russian export business.
Operating cash flow -- earnings before interest, taxes, depreciation and amortization -- rose to $12.1 million in the quarter, or 8% of sales, compared with $11.5 million, or 7.3% of sales, a year ago.
For the nine months EBITDA rose to $33.3 million, or 7.5% of sales, compared with $31.7 million, or 6.9% of sales, a year ago -- excluding a onetime pretax charge of $8.9 million in the second quarter for expenses associated with a business restructuring.
Net income for the quarter was $339,000, compared with a net loss of $64,000, which the company said reflected improvements in gross margins coupled with a reduction in operating expenses and lower interest expenses.