ROUGEMONT, QC, Aug. 10 /CNW Telbec/ - Lassonde Industries Inc. (LAS.A-TSX) today announced that its net sales for the second quarter of 2007 totalled $102.9 million, representing a 13.3% increase when compared to the amount of $90.8 million recorded for the same quarter in the preceding fiscal year. For the same quarter, the cost of goods sold and operating expenses amounted to $92.2 million, an increase of 14.1% over the amount of $80.8 million recorded for the same period last year.
Operating income was 6.8% ahead of the second quarter of the preceding fiscal year. Lassonde's net earnings for the second quarter of the 2007 fiscal year were $5.3 million (or $0.79 per share) compared with $1.9 million for the same quarter last year. It should be reminded that the second quarter of 2006 was affected by charges resulting from income taxes regulatory and legislative changes. The enactment by the Quebec government on June 13, 2006 of An Act to amend the Taxation Act and other legislative provisions ("Bill 15") and changes in the federal tax rate for corporations caused a net negative variance of approximately $3 million in the financial results of the 2006 second quarter.
Key Financial Data (x)
(in thousands, excluding the amounts per share)
Q2-2007 Q2-2006
Unaudited Unaudited
Net sales $102,889 $ 90,842
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Cost of goods sold and operating expenses 92,211 80,834
Amortization 2,563 2,412
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94,774 83,246
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Operating income 8,115 7,596
Other items
Financial expenses 451 778
Loss (gain) on disposal of fixed assets 10 (2)
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Earnings before income taxes 7,654 6,820
Income taxes 2,356 4,901
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Net earnings $ 5,298 $ 1,919
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Basic and diluted earnings per share $ 0.79 $ 0.28
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Dividends declared per share $ 0.125 $ 0.155
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Weighted average number of shares outstanding 6,699 6,814
(x) Note: These are financial highlights only. The Company's
Management's Discussion and Analysis, and the unaudited consolidated
financial statements and accompanying notes for the quarter ended
June 30, 2007 are available on the SEDAR Web site at www.sedar.com
"These results are in line with our expectations and reflect our strategy of sustained growth always aiming at increasing the presence of all our product lines in all of our markets," commented Mr. Pierre-Paul Lassonde, Chairman of the Board and Chief Executive Officer of Lassonde Industries Inc.
Financial results
During the second quarter of the current financial year, net sales of $102.9 million reflect a moderate increase of the price of our products combined with a sustained growth in market share. Our strategy of increasing
penetration in selected markets with strong growth potential has enabled the Company to achieve these sales volumes. For the first six months, our net sales were $190.1 million. This represents an increase of close to $20 million over the net sales of the first six months of the 2006 financial year.
Net earnings of the second quarter of the current fiscal year are $5.3 million, 176.1% higher than the $1.9 million for the corresponding period in 2006. In addition, the basic and diluted earnings per share were $0.79, an increase of 182.1% over the basic and diluted earnings per share of $0.28 in the second quarter of 2006. Net income for the first half of the current fiscal year is $8.0 million representing a 45.9% increase over the $5.5 million of net earnings recorded for the same six-month period in 2006.
Lassonde Industries' future outlook remains in keeping with management expectations. "The quality of our products as well as the scope of our focused efforts in Canada, lead us to believe that the continuous growth which has characterized the results of Lassonde Industries over the years should be sustained during the coming years," 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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