ROUGEMONT, QC, May 8 /CNW Telbec/ - Lassonde Industries Inc. (LAS.A - TSX) today announced that it recorded a slight increase in net sales during the first quarter of 2009.
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Financial highlights First quarters ended
(in thousands of dollars except
basic and diluted earnings per share)
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March 28, 2009 March 29, 2008
(unaudited) (unaudited and
restated)(1)
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Net sales $120,099 $118,985
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Operating income 9,182 10,017
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Earnings before income taxes 8,459 9,019
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Net earnings 5,837 6,104
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Basic and diluted earnings per share 0.88 0.92
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Note: These are financial highlights only. Management's Discussion and
Analysis, the unaudited consolidated financial statements and notes
thereto of Lassonde Industries Inc. for the quarter ended March 28, 2009
will be available on the SEDAR website at www.sedar.com and on the
website of Lassonde Industries Inc.
(1) The comparative figures of the year-earlier quarter have been
restated to reflect a new accounting standard on goodwill and intangible
assets that was applied as of January 1, 2009. This new standard was
applied retroactively and the corresponding prior period consolidated
financial statements have been restated accordingly. Under this standard,
the Company now accounts for acquisitions of deferred charges directly as
a reduction to sales. Previously, such deferred charges were recorded at
cost and amortized over periods ranging from 12 to 24 months. The
amortization was applied against sales.
Financial results
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As reported in the Company's consolidated financial statements, net sales during the first quarter of 2009 were $120.1 million, a 0.9% increase over the $119.0 million in net sales recorded in the same quarter of 2008.
"The decline in our sales growth is mainly attributable to a more challenging competitive environment in the first quarter of 2009 compared to the first quarter of 2008. In addition, the net sales growth in 2008 benefited from the revenues of the two acquisitions carried out in November 2007", said Pierre-Paul Lassonde, Chairman of the Board and CEO of Lassonde Industries Inc.
The Company's operating income went from $10.0 million in the first quarter of 2008 to $9.2 million for the same quarter of 2009, down $0.8 million. This decrease in operating income results from the fact that while the 0.9% higher net sales produced a stable level of contribution margin, amortization expense also increased by $0.7 million. It should also be noted that the Company's purchasing costs were affected by the relative weakness of the Canadian dollar during the first quarter of 2009 compared to the same quarter in 2008. This negative impact was offset, however, by an important reduction in the Company's transportation costs.
Earnings before income taxes were also affected by the higher amortization expense and stood at $8.5 million at the end of the first quarter of 2009, a 6.2% decrease compared to the $9.0 million recorded in the first quarter of 2008.
Income taxes at an effective rate of 31.0% brought net earnings to $5.8 million for the first three months of 2009; this compares to an effective income tax rate of 32.3% and net earnings of $6.1 million for the first quarter of 2008. The lower effective income tax rate is attributable to a gradual decrease in statutory federal corporate income tax rates.
Basic and diluted earnings per share stood at $0.88 for the first quarter of 2009 compared to $0.92 for the first quarter of 2008.
Outlook
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Although the food industry in which Lassonde Industries Inc. operates is generally perceived as being less affected by the current economic downturn, the Company has noted a slight decline in demand in its food services market segment. Despite this less favourable context, Lassonde Industries Inc. plans to maintain its business model and prudent management style.
"Barring further deterioration of the state of the economy, the management believes that the Company will be able to maintain the level of its net sales for the next quarters of 2009," concluded Mr. Lassonde.
About Lassonde Industries Inc.
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Lassonde Industries Inc. develops, manufactures and markets an innovative and distinctive line of fruit and vegetable juices and drinks as well as certain specialty food products such as fondue broths and fondue sauces, beans in sauce, soups, sauces and gravies, canned corn-on-the-cob, bruschetta toppings, tapenades, pestos and pasta sauces. Lassonde Industries Inc. imports selected wines from several countries of origin for packaging and marketing purposes. It also imports olive oil. These products are marketed in various packaging and under several trademarks. Approximately 1,300 employees are currently employed by Lassonde Industries Inc. and contribute to its growth.
SEDAR registration number: 00002099
This press release contains forward-looking statements that are based on certain assumptions. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results or events to differ materially from current expectations. Additional factors are discussed in materials filed from time to time with the securities regulatory authorities in Canada. Lassonde Industries Inc. disclaims any intention or obligation to update or revise any forward-looking statements.
%SEDAR: 00002099EF