For Better Living Inc. said it anticipates reporting an unspecified net loss for its fiscal year ended Dec. 28, 1985 because of a reduction in the recoverability of certain of its oil and gas reserves and a drop in the price of gas.
The San Juan Capistrano-based concern said it will take a pre-tax charge of between $3 million and $3.5 million. The company said it hasn't yet calculated the charge on an after-tax basis but does anticipate certain tax credits.
The company's recently completed annual evaluation of its oil and gas reserves prepared by an independent petroleum engineer indicated a sharp reduction in the recoverability of oil and gas from certain of its wells. In addition, the company said it has been hurt by a 30% reduction in wholesale gas prices.
For its fiscal year ended Dec. 29, 1984, For Better Living reported net income of $1.9 million, which included an after-tax gain of about $2.1 million on the sale of real estate. For the nine months ended Sept. 28, the company reported net income of $794,000, compared to net income of $2.2 million for the same period a year earlier.
Separately, the company said it acquired Dalworth Corp. for $12.5 million. For Better Living said it made the purchase using borrowed funds. Dalworth, which is based in Arlington, Texas, makes precast concrete products at seven facilities in Texas, Arkansas, Georgia and Florida.