TSXV Symbol: CYF
CALGARY, Jan. 30 /CNW/ - Canyon Creek Food Company Ltd. ("Canyon Creek"), a food processing company listed on the TSX Venture Exchange under the trading symbol "CYF", is pleased to announce its first quarter of fiscal 2007 results. Listed below are some of the highlights of the quarter:
- Sales were soft versus Q2 previous year, $1,116,211 compared to
$1,623,349 prior year. The difference of $507,138 is attributed to
two factors.
One was the continued loss of clam chowder sales in Q2 of 2007. The
company has finally been approved for processing fresh fish products
in January 2007 and anticipates resuming production in Q3 of this
year.
The second factor was a result of the company foregoing some food
service customers. The cost of shipping product and maintaining
pricing at the same time made it difficult to continue servicing
those customers.
The company did not expect significant sales growth on the retail
contract as it has not fully executed against it. The primary reason
for not fully executing on the retail contract in Q2 was waiting
approval of the third party audit of the company's facility. The
audit was approved in January 2007 and therefore, the company
anticipates executing on the full contract in Q4 of this year.
- The net loss for Q2 is $290,751. This compares to a $23,758 profit in
Q2 previous year. The loss can be attributed to the following:
- Temporary loss of manufacturing clam chowder
- Increased plant labor costs due to market conditions of local
economy
- Foregoing certain foodservice customers
- Delay in full execution of retail contract
Terence Alty, President, states "Though the results are disappointing, they were expected. We had several hurdles that as an organization we had to work through in order to fulfill the retail contract. I am satisfied that we are in a position now to move forward. We will now focus on building our brand and its presence in the retail sector."
Canyon Creek is a food processing company based in Calgary and Edmonton, Alberta providing fresh soups and other prepared food products for today's health conscious consumer. The company provides its fresh food product line to both grocery retailers and a broad range of food service establishments such as restaurants and institutions through out Canada.
This news release contains forward-looking statements which involve known and unknown risks, delays and uncertainties not under Canyon Creek's control which may cause actual results, performance or achievements of Canyon Creek to be materially different from the results, performance or expectations implied by these forward-looking statements.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy the securities in any jurisdiction. The securities offered have not and will not be registered under the United States Securities Act of 1933, as amended, or any state securities laws and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirement.
The TSX Venture Exchange has neither approved nor disapproved of the
contents of this press release.
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