ROUGEMONT, QC, March 27 /CNW Telbec/ - Lassonde Industries Inc. (LAS.A - TSX) today reported growth in net sales, net earnings and cash flows for the fourth quarter of 2007 as well as for the whole fiscal year ended December 31, 2007.
Some key financial highlights are presented below:
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Key Financial Highlights
(in thousands of dollars Quarters ended Years ended
except earnings per share) December 31 December 31
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2007 2006 2007 2006
(unaudited) (unaudited) (audited) (audited)
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Net sales $ 112,748 $ 91,839 $ 400,988 $ 353,318
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Operating income(1) $ 13,294 $ 6,450 $ 35,438 $ 26,704
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Earnings before
income taxes $ 12,404 $ 6,014 $ 33,045 $ 24,504
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Net earnings $ 9,329 $ 3,933 $ 23,331 $ 13,748
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Earnings per share $ 1.40 $ 0.58 $ 3.49 $ 2.02
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Total assets $ 285,484 $ 224,764 $ 285,484 $ 224,764
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Cash flows from operating
activities $ 13,496 $ 8,189 $ 40,177 $ 25,048
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Shareholders' equity $ 141,928 $ 124,574 $ 141,928 $ 124,574
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Shareholders'
equity/total assets 49.7% 55.4% 49.7% 55.4%
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(1) The figures from the preceding year have been reclassified to conform
to the presentation of this year's data.
Note to financial highlights: These are financial highlights only.
Management's Discussion and Analysis and the audited consolidated
financial statements and notes thereto of Lassonde Industries Inc. for
the year ended December 31, 2007 will be available on the SEDAR Web site
at www.sedar.com.
"I am pleased to announce that during fiscal year 2007, we achieved the business objectives we had set for ourselves and also made gains in most of our geographic markets, particularly outside of Quebec where higher growth potential had been identified," asserted Mr. Pierre-Paul Lassonde, Chairman of the Board and Chief Executive Officer of Lassonde Industries Inc.
The Company reported, in fact, that net sales reached $401.0 million in fiscal 2007, representing an increase of 13.5% compared to net sales of $353.3 million recorded during the previous fiscal year. As to the fourth quarter of fiscal 2007, the Company posted net sales of $112.7 million, a growth of 22.8% when compared to the same quarter of the previous year. The growth in net sales is the result, among other things, of an increase in market share that can be attributed to a greater presence in the markets of Ontario and western Canada, and of certain adjustments to the selling price of the products. The increase in net sales during the fourth quarter is also attributable to the two acquisitions recently announced which added approximately $6 million to the total volume of net sales.
Net earnings for the year ended December 31, 2007 are $23.3 million or $3.49 per share, an increase of $9.6 million over the net earnings of $13.7 million, or $2.02 per share, posted in 2006. This significant rise in 2007 net earnings can be explained mostly by the increase in net sales. In addition, economies of scale from increased activity levels resulted in an improvement in the Company's operating income.
When comparing the net earnings of fiscal 2007 versus fiscal 2006, it is also important to note that the income tax provision for the 2006 fiscal year had been negatively affected by a charge of $3.7 million for retroactive tax adjustments as well as by a tax benefit of $1.0 million, arising from the impact of reductions in the statutory tax rate on future income taxes of the Company. In contrast, the fiscal 2007 tax provision was positively affected and reduced by $1.4 million due to future income tax adjustments following the implementation of a progressive reduction in the statutory federal tax rate enacted on December 13, 2007, and another reduction in the statutory federal tax rate that came into effect in June 2007. As a result of these elements, the 2007 income tax expense reflects a $4.1 million favourable variance over that of fiscal 2006.
The Company reported net earnings of $9.3 million or $1.40 per share in the fourth quarter of 2007, representing an increase of $5.4 million over the comparative quarterly results of $3.9 million, or $0.58 per share posted in 2006. The growth in profitability in the fourth quarter can be explained, in part, by the 22.8% increase in net sales and its impact on the Company's operating income. It should also be noted that the announced reductions of federal income tax rates added $1.2 million to the fourth quarter results of 2007. Without these changes in future tax rates, announced in December 2007, income taxes for the quarter would have been $ 4.3 million.
Cash flows from operating activities increased 60.4% in 2007, going from $25.0 million in 2006 to $40.2 million in 2007. These variations are a result of the increase of the net earnings of the period combined with higher amortization expenses.
During the year ended December 31, 2007, in accordance with the rules and policies on normal course issuer bids of the Toronto Stock Exchange, the Company redeemed 54,160 Class A subordinate voting shares at an average price of $37.71 per share, for a consideration of $2,042,000, of which $244,000 was a reduction of share capital , $1,790,000 was a reduction of retained earnings and $8,000 was a reduction of contributed surplus. The redeemed Class A shares were cancelled. The Company has decided to continue its share redemption program in 2008.
Dividends
On February 20, 2008, the Company's Board of Directors declared a quarterly dividend of $0.125 per share, payable on March 17, 2008, to holders of Class A and Class B shares registered in the Company's records as of February 29, 2008. This is an eligible dividend.
Outlook
Despite signs of an economic slowdown and the pervasive volatility in the cost of commodities, the Company's sound cost-control practices and ability to adapt to a rapidly changing competitive landscape support its optimistic outlook, with respect to its ability to grow its net sales in the majority of its geographic markets in 2008. The integration of the company's recent acquisitions represents one of the Company's priorities for the new fiscal year.
Further, the Company will continue to build on the quality of its products, reputation of its trademarks such as Oasis, Fairlee and Canton, propensity for innovation, and solid balance sheet in the pursuit of its objectives of growth, profitability and value creation.
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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