STAMFORD Conn. Centerplate Inc., the sports, entertainment and convention center foodservice specialist, reported a 51.2-percent drop in net income for the third quarter ended Oct. 2, versus the same period a year ago, despite a 12.4-percent increase in sales to $246.1 million.
Centerplate officials blamed the smaller profit on differences in the company’s income tax provision, or estimated tax liability, for the third quarters of 2006 and 2007. For the latest quarter Centerplate recorded a $4.2 million tax provision, compared with a $1.1 million tax benefit a year ago.
Third-quarter net income totaled $6.0 million, or 27 cents per share, compared with $12.3 million, or 54 cents per share, for the same period last year.
The latest-quarter sales increase was driven by strong results from Major League Baseball and National Football League accounts as well as convention center business, Centerplate reported.
For the nine months ended Oct. 2, Centerplate recorded a drop in profit to $188,000, or 1 cent per share, from $6.6 million, or 29 cents per share, in net income a year earlier. The company cited the same difference in its tax provision, as well as an increase in interest expense and a $1 million charge related to the company’s secondary offering.
