Financial results for the second quarter of fiscal 2003
Financial results for the second quarter of fiscal 2003
11/12/2002 0:00 UTC
Net earnings up 1.5%, cash flow up 8.5%
(Montréal, November 12, 2002) – Saputo Inc. revealed today its financial results for the second quarter of fiscal 2003, ended September 30, 2002.
- Net earnings of $42.1 million or $0.41 (basic) per share, an increase of 1.5% as compared to the second quarter of fiscal 2002. This amount takes into account the recording of an expense relative to the stock-based compensation in the amount of $0.735 million or $0.007 (basic) per share.
- EBITDA of $87.6 million, down 3.7% as compared to the $91.0 million of the same period last year.
- EBITDA in the Dairy Products Sector (Canada) of $48.5 million, up 11% compared to the same period last year.
- EBITDA in the Dairy Products Sector (United States) of $31.6 million, down 18.6% in comparison with the $38.8 million for the same period last year.
- Average selling price per pound of cheese on the American market down 33.7% as compared to the same period last year, representing a decrease of US$0.57 a pound.
- Unfavourable impact of about $9 million on EBITDA and of approximately $70 million on revenues in the Dairy Products Sector (United States) owing to cheese price conditions on the American market during the quarter as compared to the same period in the previous fiscal year.
- Sales volume in the Dairy Products Sector (United States) up 12.5% (11.1% since the beginning of the fiscal year) as compared to the same quarter last year.
- EBITDA in the Grocery Products Sector of $8.4 million.
- Revenues of $861.8, a decrease of 3.5% as compared to the $893.4 million for the same period last year. The average selling price per pound of cheese on the American market, US$0.57 lower than it was during the same period last year, had a downward effect on Company revenues equal to roughly $70 million, obscuring the 12.5% growth in sales volume in the United States division of our Dairy Products Sector.
- Cash generated before changes in non-cash working capital items of $66.5 million, up 8.5% compared to the same period a year earlier.
- Repayment of $51.5 million in long-term debt and bank loans.
Outlook
Over the coming quarters we will complete the last phases in the integration of Canadian dairy activities, while continuing in our efforts to grow organically and by acquisition.
In the United States, our goal of increasing production volume by 13% remains unchanged, and we are actively seeking potential cheese-making acquisitions. Finding solutions to the volatility of prices on the American market remains a priority, in order to counteract the effects of that volatility on our results.
Our Bakery Division, this September 27, transferred the activities of the plant in Aurora, Ontario, to the facility in Sainte-Marie, Québec. The division just made its first deliveries of snack cakes to the United States, in early October, and will continue with its efforts to penetrate those markets where we are currently less represented.
In the month of October we carried out the closing, as announced earlier, of a cheese-making plant in the United States. We also announced, this past September, the shutdown of three Canadian cheese-making plants. One of those plants closed its doors at the end of October, while the two others will cease their activities during the course of the next year. These rationalizations are part of the uninterrupted analysis of our processes. The activities of these plants will be transferred to other facilities of the Company. After-tax costs related with these Canadian and American rationalizations will be approximately $4.1 million, including $1.8 million related to the devaluation of fixed assets. The Company expects to realize annual after-tax savings of roughly $4.9 million.
Dividends
The Board of Directors of the Company declared a dividend of $0.10 per share, payable on December 13, 2002, to shareholders of record as of November 29, 2002. This dividend is for the quarter ended September 30, 2002.
Conference call
A conference call to discuss the second quarter of fiscal 2003 results will be held on Tuesday November 12, 2002 at 4:15 PM, Montreal time. To participate in the conference dial (416) 405-9328 or 1-800-387-6216. To ensure your participation, please dial in approximately five minutes before the call.
To listen to this call on the web, please enter http://www.newswire.ca/webcast/pages/SaputoInc20021113/ in your web browser.
For those unable to participate, an instant replay will be available until midnight, Tuesday, November 19, 2002. To access the replay please dial (416) 695-5800 or 1-800-408-3053, pass code 1302897.
The conference call will also be archived on the Saputo web site at www.saputo.com .
About Saputo
The largest dairy processor in Canada and one of the leading cheese producers in North America, Saputo Inc. is a public company operating in the dairy and grocery products sectors. Its products are marketed under well-known brands such as Saputo, Stella, Frigo, Dragone, Dairyland, Baxter, Armstrong, Caron, Cayer, Nutrilait and Vachon. A dynamic, world class company, Saputo Inc. employs over 7,000 individuals in 48 plants. Company shares are listed on the Toronto Stock Exchange under the symbol SAP. For further information, please visit our website at www.saputo.com.
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Information
Claude Pinard
Vice President, Communications
(514) 328-3381
Financial highlights
(Montréal, November 12, 2002) – Saputo Inc. revealed today its financial results for the second quarter of fiscal 2003, ended September 30, 2002.
- Net earnings of $42.1 million or $0.41 (basic) per share, an increase of 1.5% as compared to the second quarter of fiscal 2002. This amount takes into account the recording of an expense relative to the stock-based compensation in the amount of $0.735 million or $0.007 (basic) per share.
- EBITDA of $87.6 million, down 3.7% as compared to the $91.0 million of the same period last year.
- EBITDA in the Dairy Products Sector (Canada) of $48.5 million, up 11% compared to the same period last year.
- EBITDA in the Dairy Products Sector (United States) of $31.6 million, down 18.6% in comparison with the $38.8 million for the same period last year.
- Average selling price per pound of cheese on the American market down 33.7% as compared to the same period last year, representing a decrease of US$0.57 a pound.
- Unfavourable impact of about $9 million on EBITDA and of approximately $70 million on revenues in the Dairy Products Sector (United States) owing to cheese price conditions on the American market during the quarter as compared to the same period in the previous fiscal year.
- Sales volume in the Dairy Products Sector (United States) up 12.5% (11.1% since the beginning of the fiscal year) as compared to the same quarter last year.
- EBITDA in the Grocery Products Sector of $8.4 million.
- Revenues of $861.8, a decrease of 3.5% as compared to the $893.4 million for the same period last year. The average selling price per pound of cheese on the American market, US$0.57 lower than it was during the same period last year, had a downward effect on Company revenues equal to roughly $70 million, obscuring the 12.5% growth in sales volume in the United States division of our Dairy Products Sector.
- Cash generated before changes in non-cash working capital items of $66.5 million, up 8.5% compared to the same period a year earlier.
- Repayment of $51.5 million in long-term debt and bank loans.
Outlook
Over the coming quarters we will complete the last phases in the integration of Canadian dairy activities, while continuing in our efforts to grow organically and by acquisition.
In the United States, our goal of increasing production volume by 13% remains unchanged, and we are actively seeking potential cheese-making acquisitions. Finding solutions to the volatility of prices on the American market remains a priority, in order to counteract the effects of that volatility on our results.
Our Bakery Division, this September 27, transferred the activities of the plant in Aurora, Ontario, to the facility in Sainte-Marie, Québec. The division just made its first deliveries of snack cakes to the United States, in early October, and will continue with its efforts to penetrate those markets where we are currently less represented.
In the month of October we carried out the closing, as announced earlier, of a cheese-making plant in the United States. We also announced, this past September, the shutdown of three Canadian cheese-making plants. One of those plants closed its doors at the end of October, while the two others will cease their activities during the course of the next year. These rationalizations are part of the uninterrupted analysis of our processes. The activities of these plants will be transferred to other facilities of the Company. After-tax costs related with these Canadian and American rationalizations will be approximately $4.1 million, including $1.8 million related to the devaluation of fixed assets. The Company expects to realize annual after-tax savings of roughly $4.9 million.
Dividends
The Board of Directors of the Company declared a dividend of $0.10 per share, payable on December 13, 2002, to shareholders of record as of November 29, 2002. This dividend is for the quarter ended September 30, 2002.
Conference call
A conference call to discuss the second quarter of fiscal 2003 results will be held on Tuesday November 12, 2002 at 4:15 PM, Montreal time. To participate in the conference dial (416) 405-9328 or 1-800-387-6216. To ensure your participation, please dial in approximately five minutes before the call.
To listen to this call on the web, please enter http://www.newswire.ca/webcast/pages/SaputoInc20021113/ in your web browser.
For those unable to participate, an instant replay will be available until midnight, Tuesday, November 19, 2002. To access the replay please dial (416) 695-5800 or 1-800-408-3053, pass code 1302897.
The conference call will also be archived on the Saputo web site at www.saputo.com .
About Saputo
The largest dairy processor in Canada and one of the leading cheese producers in North America, Saputo Inc. is a public company operating in the dairy and grocery products sectors. Its products are marketed under well-known brands such as Saputo, Stella, Frigo, Dragone, Dairyland, Baxter, Armstrong, Caron, Cayer, Nutrilait and Vachon. A dynamic, world class company, Saputo Inc. employs over 7,000 individuals in 48 plants. Company shares are listed on the Toronto Stock Exchange under the symbol SAP. For further information, please visit our website at www.saputo.com.
- 30 -
Information
Claude Pinard
Vice President, Communications
(514) 328-3381
Financial highlights
| Lynda Leith | ||
| Service des communications | ||
| (514) 328-3381 | ||
