Business
Rothmans Inc. Delivers steady results in fiscal 2007
Rothmans Inc. Delivers steady results in fiscal 2007.
About this update from Pantera Silver Corp.
[{"type":"text","content":"\n\n\n\nTrading: TSE: ROC\n\n\nTORONTO, May 18 /CNW/ - Rothmans Inc. today announced results for the\nfourth quarter and fiscal year ended March 31, 2007.\n\n\nRothmans' earnings for the year were $C99.8 million or $1.47 per basic\nshare compared with $99.5 million or $1.47 per basic share in fiscal 2006.\n\n\nSales(1) at 60%-owned subsidiary Rothmans, Benson & Hedges Inc., net of\nexcise duty and taxes, for the 2007 fiscal year were $618.6 million compared\nwith $607.2 million in fiscal 2006.\n\n\nInvestment income of $9.0 million for fiscal 2007 was $3.7 million higher\nthan fiscal 2006, due to the higher-than-average cash balance held and a\nhigher rate of return experienced during the year.\n\n\nRBH's EBITDA margin(1) was 47.6% for the year, compared with 48.1% in\nfiscal 2006. The decrease was principally due to the effect of lower shipment\nvolumes, volume shifts into lower-priced tiers of the cigarette price category\nand higher general and administrative expenses, including incentive plan\naccruals, various benefit costs and the impact of foreign exchange. These\nexpenses were partially offset by price increases across all product\ncategories.\n\n\nRBH shipped a total of 10.7 billion equivalent sticks into the domestic\nmarket during fiscal 2007, representing a 4.4% decrease compared to fiscal\n2006. Increased shipments of RBH price category cigarettes in fiscal 2007 only\npartially offset declines in premium cigarette and fine cut shipments, leading\nto an overall decline in sales volumes compared to fiscal 2006. While RBH has\ncontinued to demonstrate strong volumetric and financial performance in the\nface of a declining market, the reduction in overall industry profitability\nand the apparent growing presence of contraband product in the Canadian market\nare expected to continue to present significant challenges for RBH for the\nforeseeable future.\n\n\nDuring fiscal 2007, the Company paid dividends of $81.6 million, versus\n$182.7 million in fiscal 2006. The fiscal 2007 regular dividend was $1.20\ncompared to $1.20 in fiscal 2006. In fiscal 2006 a special dividend of $1.50\nwas also paid.\n\n\n"RBH has continued to perform very well, having achieved earnings\nequivalent to fiscal 2006 and, we believe, growth in composite domestic market\nshare," said John Barnett, President and Chief Executive Officer ...