ROUGEMONT, QC, May 9 /CNW Telbec/ - Lassonde Industries Inc. (LAS.A - TSX) today announced that solid growth in net sales, operating income and net earnings were maintained in the first quarter of 2008.
"I am pleased to confirm that the business model supporting last year's good results also contributed to the achievement of the Company's business objectives in the first quarter of 2008," stated Mr. Pierre-Paul Lassonde, Chairman of the Board and Chief Executive Officer of Lassonde Industries Inc.
Financial highlights:
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Key financial highlights First quarters ended
(in thousands of dollars except
earnings per share)
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March 29, 2008 March 31, 2007
(unaudited) (unaudited)
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Net sales $118,515 $87,191
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Operating income $9,547 $4,571
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Earnings before income taxes $8,549 $4,041
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Net earnings $5,786 $2,722
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Earnings per share $0.87 $0.41
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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 29, 2008 will be available on the SEDAR Web site at www.sedar.com, and on the Web site of Lassonde Industries Inc.
Financial results:
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In the first quarter of 2008, net sales totalled $118.5 million, up $31.3 million over the $87.2 million in net sales posted in the first quarter of 2007. This 35.9% increase is among other things attributable to the addition of net sales from the two business acquisitions carried out by Lassonde Industries Inc. at the end of 2007 and to organic growth resulting from an increase in our market shares in most of our sales territories.
Cost of goods sold and operating expenses went from $80.2 million in the first quarter of 2007 to $106.0 million in the first quarter of this year. This increase is largely explained by higher sales volume. It should be noted as well that cost of goods sold and operating expenses as a percentage of net sales decreased in 2008 due to the combined effect of economies of scale resulting from higher sales in 2008 and of sharp increases in raw material prices affecting fruit concentrates and freshly squeezed juices in 2007.
Operating income for the first quarter of 2008 totalled $9.5 million after amortization expense, a $4.9 million increase over the $4.6 million reported under this heading at the end of the first quarter of 2007.
After factoring financial expenses, the first quarter of 2008 saw earnings before income taxes of $8.5 million, an increase of $4.5 million over the $4.0 million posted in the first quarter of 2007.
Income taxes stood at $2.8 million, up a little less than $1.5 million over the $1.3 million in income taxes for the comparable quarter in 2007.
The Company's net earnings for the first quarter amounted to $5.8 million, up $3.1 million over the net earnings of $2.7 million at the end of the first quarter of the previous year. Basic and diluted earnings per share were $0.87 at the end of the first quarter of this year, compared to $0.41 at the end of the first three months of the previous year.
"These results are slightly better than our expectations and bode well for fiscal 2008. We must, however, remain vigilant in the face of potential increases in the cost of certain raw materials," concluded Mr. Lassonde.
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.
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