Business
Rothmans reports record results for first quarter of fiscal 2008
Rothmans reports record results for first quarter of fiscal 2008.
About this update from Pantera Silver Corp.
[{"type":"text","content":"\n\n\n\nTORONTO, July 24 /CNW/ - Rothmans Inc. today announced record results for\nthe first quarter of fiscal 2008, which ended June 30, 2007.\n\n\nRothmans' earnings for the first quarter were $33.8 million, or $0.50\nbasic earnings per share, compared with $29.3 million or $0.43 basic earnings\nper share in the same quarter of fiscal 2007.\n\n\nSales at 60%-owned subsidiary Rothmans, Benson & Hedges Inc., net of\nexcise duty and taxes, increased to $177.4 million in the most recent quarter\ncompared with $162.9 million in the first quarter of fiscal 2007.\n\n\nRBH's EBITDA margin for the first quarter was 55.5% compared with 52.6%\nin the first quarter a year ago, primarily as a result of price increases\nacross all product categories, partially offset by volume shifts from the\nmid-tier to the lower priced tier of the cigarette price category and higher\ngeneral and administrative costs. In the quarter ended March 31, 2007, RBH's\nEBITDA margin was 39.4%.\n\n\nRBH shipped a total of 2.8 billion equivalent sticks into the domestic\nmarket during the first quarter of fiscal 2008, representing a 1.2% increase\ncompared to fiscal 2007. The increase was driven by higher price category\ncigarette volumes offsetting declines in premium cigarette and fine cut\nvolumes.\n\n\n"Rothmans shareholders benefited from the improvement in all significant\nmeasures of financial performance at RBH including sales, earnings and cash\nflow" said John Barnett, President and Chief Executive Officer of Rothmans\nInc. and RBH.\n\n\nOutlook\n\n\n"Even with these good results, we need to recognize that factors such as\nillegal and untaxed products and competition have not disappeared" said Mr.\nBarnett. "With our strong product offerings we feel RBH is well positioned to\ncompete within the tax paid industry, but remain highly concerned about the\ncontinuing impact of contraband product."\n\n\nDividend Declared\n\n\nThe Board of Directors of Rothmans Inc. declared a quarterly dividend of\n$0.30 per share payable on September 17, 2007 to shareholders of record at the\nclose of business on September 3, 2007.\n\n\nAnalyst Conference Call and Webcast\n\n\nBecause the Company's annual meeting of shareholders is being held this\nmorning, Rothmans Inc. management will hold a conference call with analysts to\ndiscuss the firs...