ROUGEMONT, QC, Nov. 12 /CNW Telbec/ - Lassonde Industries Inc. (LAS.A-TSX) today announced that its net sales for the third quarter of 2007 totalled $98.2 million, representing a 7.9% increase over the amount of $91.0 million recorded for the same quarter in the preceding fiscal year. For the first nine months of 2007, net sales were $288.2 million, an increase of 10.2% over the corresponding first three quarters of 2006.
Operating income as a percentage of net sales (operating margin) increased in the third quarter as growth in net sales exceeded changes in cost of goods sold as well as operating expenses and amortization. Operating margin for the first nine months of the current fiscal year stood at 7.7%, in line with the 7.7% operating margin recorded during the same period of the previous fiscal year. Increases in the cost of certain commodities were in large part compensated by the positive impact that the weakened U.S. dollar had on our purchases.
Lassonde's net earnings were $6.0 million for the third quarter of the 2007 fiscal year, representing an increase of 38.5% over the result of $4.3 million garnered during the similar period of 2006. Net earnings for the first nine months of 2007 were $14.0 million, a 42.7% increase over the net earnings of $9.8 million reported in the previous fiscal year.
It should be pointed out that the financial results of Lassonde Industries during the second quarter of 2006 were affected by non-recurring regulatory and legislative changes related to income taxes. These changes negatively impacted the Company's financial results for the first nine months of 2006 by approximately $3 million. Without these factors, the increase in net earnings for the first nine months would be 8.9%.
"We are pleased to see that the demand for the different product lines in all our subsidiaries continues to grow and that consumers recognize the quality of our juices, drinks and foods," stated Pierre-Paul Lassonde, Chairman of the Board and Chief Executive Officer of Lassonde Industries Inc. "However, the positive impact of the weakened U.S. dollar will continue to be partly compensated by significant pressures on the cost of certain basic products where definite imbalances between supply and demand exist," Lassonde added.
Key Financial Data (x)
(in thousands, except the amounts per share)
Q3-2007 Q3-2006
Unaudited Unaudited
Net sales (1) $ 98,160 $ 90,968
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Cost of goods sold and operating expenses 86,396 81,482
Amortization 2,306 2,405
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88,702 83,887
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Operating income 9,458 7,081
Other items
Financial expenses 514 514
Gain on disposal of fixed assets (2) (2)
Reduction in value of investments - 23
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Earnings before income taxes 8,946 6,546
Income taxes 2,964 2,228
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Net earnings $ 5,982 $ 4,318
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Basic and diluted earnings per share $ 0.89 $ 0.63
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Dividends declared per share $ 0.125 $ 0.155
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Weighted average number of shares outstanding 6,685 6,806
(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 September 29, 2007, are available on the SEDAR Web site
at www.sedar.com
(1) The figures of the preceding fiscal year were reclassified so that
their presentation conforms to those figures used in the current
fiscal year.
On November 2, 2007, the Company acquired the assets related to the manufacturing and marketing of ready-to-drink fruit juices and drinks from McCain Foods (Canada), a division of McCain Foods Limited, for the price of $13,600,000. In addition, the Company acquired certain inventories having a value of $4,800,000 subject to certain adjustments. The acquisition was financed in part by a loan received from the Company's largest long-term lender and, in part, by funds generated from operating activities.
This business development initiative by way of acquisition is not expected to have a significant impact on the Company's profitability in the fourth quarter of 2007.
Lassonde Industries Inc. is a Canadian leader in the development, manufacture and marketing of an extensive range of fruit and vegetable juices and drinks, as well as fondue broths and sauces. The Company also markets certain specialty food products, such as canned corn-on-the-cob, meat marinades, barbecue sauces, baked beans and olive oil. During 2006, the Company integrated the packaging and marketing of imported wines into its business activities.
Lassonde Industries Inc. has three major wholly-owned operating subsidiaries: A. Lassonde Inc., Lassonde Specialties Inc. and Arista Wines Inc. The Company's activities are conducted in eight plants where some 950 employees work.
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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