ROUGEMONT, QC, Aug. 10, 2011 /CNW Telbec/ - Lassonde Industries Inc. (TSX: LAS.A) generated $146.9 million in sales for the second quarter of 2011, up 10.2% from the same quarter of 2010. The Company's profit stood at $6.4 million, down $0.5 million from 2010. It should be noted that expenses related to the pending acquisition of Clement Pappas and Company, Inc. have had a total after-tax impact of $1.9 million on the profit of the second quarter of 2011.
These results are presented in accordance with International Financial Reporting Standards (IFRS). Comparative figures for the same quarter last year have been restated to reflect IFRS. Explanations about how the transition to IFRS has affected the financial statements are provided in Note 19 to the interim condensed consolidated financial statements for the quarter ended July 2, 2011.
|
Financial highlights (in thousands of Canadian dollars) |
Second quarters ended | |
|
July 2, 2011 |
July 3, 2010 |
|
| Sales | $146,870 | $133,251 |
| Operating profit | 11,065 | 10,635 |
| Profit before income taxes | 8,994 | 9,722 |
| Profit | 6,396 | 6,877 |
| Basic and diluted earnings per share (in C$) | $0.97 | $1.04 |
Note: These are financial highlights only. Management's Discussion and Analysis, the unaudited interim condensed consolidated financial statements and the notes thereto for the quarter ended July 2, 2011 will be available on the SEDAR website at www.sedar.com and on the website of Lassonde Industries Inc.
"We are satisfied with these results, which reflect our ability to maintain sustained growth," said Pierre-Paul Lassonde, Chairman of the Board and Chief Executive Officer of Lassonde Industries Inc.
Financial results
The Company's sales stood at $146.9 million in the second quarter of
2011, up $13.6 million or 10.2% from sales of $133.3 million for the
same period of 2010. This increase in sales was mainly attributable to
higher sales in the retail segment combined with lower slotting fees in
the second quarter of 2011 compared to 2010. However, the increase in
sales was mitigated by an increase in other trade spending and by the
unfavourable impact of exchange rates on sales denominated in U.S.
dollars. For the first six months of 2011, total sales stood at
$279.9 million, up 8.1% from sales of $259.0 million for the first half
of 2010.
The Company's operating profit for the second quarter of 2011 stood at $11.1 million, up $0.5 million or 4.0% from operating profit of $10.6 million reported in the same quarter last year. This change is mostly explained by higher sales and a favourable exchange rate on purchases paid in U.S. dollars. These favourable impacts were mitigated by a significant increase in the cost of certain concentrates and by higher selling and administrative expenses resulting, among other factors, from $1.8 million in transaction expenses related to the pending acquisition of Clement Pappas and Company, Inc. ("CPC") and higher fuel costs. Operating profit for the first six months of 2011 stood at $21.7 million, up 14.6% from $18.9 million recorded at the end of the first six months of 2010.
Other losses and (gains) went from a $0.2 million gain in the second quarter of 2010 to a $0.9 million loss in the second quarter of 2011. The 2011 loss results primarily from a change in the conversion rate of a bank balance of approximately US$70 million held to effect the CPC acquisition. For the first six months, other losses and (gains) stood at $1.0 million for 2011, up $1.0 million from 2010.
Profit before income taxes stood at $9.0 million for the second quarter of 2011, down $0.7 million from $9.7 million reported in the same quarter of last year. Profit before income taxes for the first six months of 2011 stood at $18.5 million, up 11.9% from $16.5 million in the first six months of 2010.
Income tax expense fell from $2.8 million for the second quarter of 2010 to $2.6 million for the second quarter of 2011. The effective income tax rate of 28.9% for the second quarter of 2011 was lower than the rate of 29.3% for the second quarter of 2010. Income tax expense for the first six months of 2011 stood at $5.4 million, up $0.6 million from $4.8 million for the first six months of fiscal 2010.
Profit for the second quarter of 2011 was $6.4 million, down $0.5 million from net profit of $6.9 million recorded in the second quarter of last year. It should be noted that the total after-tax impact of acquisition-related administrative expenses and exchange loss was approximately $1.9 million. For the first six months of 2011, profit stood at $13.1 million versus profit of $11.7 million for the first six months of 2010.
Basic and diluted earnings per share were $0.97 in the second quarter of 2011 and $2.00 for the first six months of 2011 versus $1.04 and $1.78 for the same periods of 2010.
The condensed consolidated statement of cash flows shows that operating activities generated $2.1 million in cash in the second quarter of 2011, while these same activities had generated $27.2 million in cash in the same period last year. Financing activities generated $4.0 million in the second quarter of 2011, while these activities had used $2.3 million in the same quarter of 2010. Investing activities used $3.5 million in the second quarter of 2011 compared to $3.3 million for the same quarter of 2010. Cash and cash equivalents stood at $58.4 million at the end of the second quarter of 2011 compared to cash and cash equivalents of $55.2 million at the end of the same quarter of 2010.
Outlook
The Company expects the acquisition of CPC, which is expected to be
finalized in mid-August, to have a significant impact on its
operations. To give an indication of the impact, CPC recorded, over the
last 12 months, sales of approximately US$400 million and EBITDA of
about US$59 million. Lassonde Industries Inc. will own a 71% interest
in CPC. Subsequent to the transaction, CPC's total debt will be
approximately US$253 million.
As for sourcing, fuel costs and the costs of apple and orange concentrates are still rising steeply. The Company adjusts its selling prices to minimize the impact of these significant fluctuations.
Barring any major external shocks and excluding the pending sales of the CPC acquisition, the Company remains optimistic about its ability to maintain 2011 sales growth at a level slightly higher than in fiscal 2010.
About Lassonde Industries Inc.
Lassonde Industries develops, manufactures and markets an innovative and
distinctive line of fruit and vegetable juices and drinks as well as
specialty food products such as fondue broth and sauces, soups,
gravies, canned corn-on-the-cob, bruschetta toppings, tapenades, pestos
and sauces for pasta and pizza. Lassonde Industries imports selected
wines from several countries of origin for packaging and marketing
purposes. It also imports olive oil. Nearly 1,300 employees contribute
to the Company's growth and to offering quality products to customers.
The Class A subordinate voting shares of Lassonde Industries Inc. are
listed on the TSX.
Website: www.lassonde.com
SEDAR registration number: 00002099
Caution Concerning Forward-Looking Statements
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 except as required by law.