Financial results for the third quarter of fiscal 2003
Financial results for the third quarter of fiscal 2003
02/12/2003 0:00 UTC
Net earnings up 21.1%
(Montréal, February 12, 2003) – Saputo Inc. revealed today its financial results for the third quarter of fiscal 2003, which ended December 31, 2002.
- Net earnings of $42.5 million or $0.41 (basic) per share, up 21.1% as compared to the third quarter of fiscal 2002. This amount takes into account the recording of an expense relative to stock-based compensation in the amount of $0.735 million or $0.007 (basic) per share, as opposed to last year.
- EBITDA in the Dairy Products Sector (Canada) of $51.3 million, up 8% compared to the same period last year.
- EBITDA in the Dairy Products Sector (United States) of $30.0 million, up 36.4% in comparison with the $22.0 million for the same period last year.
- Average selling price per pound of cheese on the American market down 14.4%, or US$0.195 a pound, as compared to the same period last year.
- More favourable relation between the cost of milk and the selling price per pound of cheese on the American market, as compared to the same period last year.
- Favourable impact of approximately $6 million on EBITDA and unfavourable impact of roughly $25 million on revenues in the Dairy Products Sector (United States) owing to conditions relative to the cost of milk and the price of cheese during the quarter as compared to the same period the previous fiscal year.
- Sales volume in the Dairy Products Sector (United States) up nearly 10.5% (11.1% since the beginning of the fiscal year) as compared to the same quarter last year.
- EBITDA in the Grocery Products Sector of $7.6 million. Last year, for the same period, EBITDA for this sector amounted to $8.2 million, taking into account a gain of $0.845 million related to the sale of assets of the cookies, fine breads and soups manufacturing and marketing activities in this sector.
- Cash generated before changes in non-cash operating working capital items of $56.5 million, up 4.1% compared to the same period a year earlier.
- Repayment of $25.0 million in long-term debt, and an increase of $21.4 million in bank loans.
Outlook
In Canada, while remaining open to growth opportunities offered through acquisition, we will devote the coming quarters to the final phases of integrating Canadian Dairy Products Sector activities, both through continued improvement in our processes and through previously announced plant closings. After-tax rationalization costs of roughly $3.7 million, including a $1.8 million non cash effect, will have to be assumed relative to these closings. The entire management of the by-products derived from our cheese manufacturing also remains a priority in order to maximize even more the value.
Last December the World Trade Organization (WTO) Appellate Body handed down its final decision in which it maintains that Canada's Commercial Export Milk system is non-compliant with Canada's WTO obligations. This decision means that Canadian dairy processors are required to export their products at prices that make the export of dairy products from Canada non-competitive. The exports of by-products such as lactose and whey are not affected by this decision. The exports of cheese represent less than 1% of our revenues. Nevertheless, although it has a negligible impact on the Company, this final decision leads us to reassess our Canadian facilities for their optimal use. Similarly, the decision accelerates our analysis of certain scenarios in which we would establish ourselves worldwide in order to supply our international clientele.
We are continuing with our efforts aimed at expanding the presence of our Milk division in provinces where its products are less represented, specifically Québec and Ontario. We will also continue to work on developing innovative value-added products.
In the United States, we are continuing with our efforts in order to increase our sales volume for the fiscal year in progress as compared to the previous year. Although we have recently applied minimum selling prices in certain product categories, managing the volatility of prices on the American market remains a priority. As well, we are energetically carrying on with our search for potential acquisitions.
With regards to our Bakery division, we made our first deliveries of snack cakes to the US this past October. Although we are satisfied with the results to date, the introduction of products to new markets always entails a period of adjustment. We intend to continue with the penetration of this market in such a way as to widen our sales scope.
Dividends
The Board of Directors of the Company declared a dividend of $0.10 per share, payable on March 14, 2003, to shareholders of record as of February 28, 2003. This dividend is for the quarter ended December 31, 2002.
Conference call
A conference call to discuss the third quarter of fiscal 2003 results will be held on Wednesday, February 12, 2003 at 4:15 PM, Eastern time. To participate in the conference dial (416) 695-5806 or 1-800-273-9672. To ensure your participation, please dial in approximately five minutes before the call.
To listen to this call on the web, please enter http://web1.to.fastvibe.com/CWS/sap/030212sap/staging.htm in your web browser.
For those unable to participate, an instant replay will be available until midnight, Wednesday, February 19, 2003. To access the replay dial (416) 695-5800 or 1-800-408-3053, passcode 1354421.
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 close to 7,000 individuals in 47 plants. Company shares are listed on the Toronto Stock Exchange under the symbol SAP. Visit www.saputo.com for further information.
Information
Claude Pinard
Vice President, Communications
(514) 328-3381
Financial highlights
(Montréal, February 12, 2003) – Saputo Inc. revealed today its financial results for the third quarter of fiscal 2003, which ended December 31, 2002.
- Net earnings of $42.5 million or $0.41 (basic) per share, up 21.1% as compared to the third quarter of fiscal 2002. This amount takes into account the recording of an expense relative to stock-based compensation in the amount of $0.735 million or $0.007 (basic) per share, as opposed to last year.
- EBITDA in the Dairy Products Sector (Canada) of $51.3 million, up 8% compared to the same period last year.
- EBITDA in the Dairy Products Sector (United States) of $30.0 million, up 36.4% in comparison with the $22.0 million for the same period last year.
- Average selling price per pound of cheese on the American market down 14.4%, or US$0.195 a pound, as compared to the same period last year.
- More favourable relation between the cost of milk and the selling price per pound of cheese on the American market, as compared to the same period last year.
- Favourable impact of approximately $6 million on EBITDA and unfavourable impact of roughly $25 million on revenues in the Dairy Products Sector (United States) owing to conditions relative to the cost of milk and the price of cheese during the quarter as compared to the same period the previous fiscal year.
- Sales volume in the Dairy Products Sector (United States) up nearly 10.5% (11.1% since the beginning of the fiscal year) as compared to the same quarter last year.
- EBITDA in the Grocery Products Sector of $7.6 million. Last year, for the same period, EBITDA for this sector amounted to $8.2 million, taking into account a gain of $0.845 million related to the sale of assets of the cookies, fine breads and soups manufacturing and marketing activities in this sector.
- Cash generated before changes in non-cash operating working capital items of $56.5 million, up 4.1% compared to the same period a year earlier.
- Repayment of $25.0 million in long-term debt, and an increase of $21.4 million in bank loans.
Outlook
In Canada, while remaining open to growth opportunities offered through acquisition, we will devote the coming quarters to the final phases of integrating Canadian Dairy Products Sector activities, both through continued improvement in our processes and through previously announced plant closings. After-tax rationalization costs of roughly $3.7 million, including a $1.8 million non cash effect, will have to be assumed relative to these closings. The entire management of the by-products derived from our cheese manufacturing also remains a priority in order to maximize even more the value.
Last December the World Trade Organization (WTO) Appellate Body handed down its final decision in which it maintains that Canada's Commercial Export Milk system is non-compliant with Canada's WTO obligations. This decision means that Canadian dairy processors are required to export their products at prices that make the export of dairy products from Canada non-competitive. The exports of by-products such as lactose and whey are not affected by this decision. The exports of cheese represent less than 1% of our revenues. Nevertheless, although it has a negligible impact on the Company, this final decision leads us to reassess our Canadian facilities for their optimal use. Similarly, the decision accelerates our analysis of certain scenarios in which we would establish ourselves worldwide in order to supply our international clientele.
We are continuing with our efforts aimed at expanding the presence of our Milk division in provinces where its products are less represented, specifically Québec and Ontario. We will also continue to work on developing innovative value-added products.
In the United States, we are continuing with our efforts in order to increase our sales volume for the fiscal year in progress as compared to the previous year. Although we have recently applied minimum selling prices in certain product categories, managing the volatility of prices on the American market remains a priority. As well, we are energetically carrying on with our search for potential acquisitions.
With regards to our Bakery division, we made our first deliveries of snack cakes to the US this past October. Although we are satisfied with the results to date, the introduction of products to new markets always entails a period of adjustment. We intend to continue with the penetration of this market in such a way as to widen our sales scope.
Dividends
The Board of Directors of the Company declared a dividend of $0.10 per share, payable on March 14, 2003, to shareholders of record as of February 28, 2003. This dividend is for the quarter ended December 31, 2002.
Conference call
A conference call to discuss the third quarter of fiscal 2003 results will be held on Wednesday, February 12, 2003 at 4:15 PM, Eastern time. To participate in the conference dial (416) 695-5806 or 1-800-273-9672. To ensure your participation, please dial in approximately five minutes before the call.
To listen to this call on the web, please enter http://web1.to.fastvibe.com/CWS/sap/030212sap/staging.htm in your web browser.
For those unable to participate, an instant replay will be available until midnight, Wednesday, February 19, 2003. To access the replay dial (416) 695-5800 or 1-800-408-3053, passcode 1354421.
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 close to 7,000 individuals in 47 plants. Company shares are listed on the Toronto Stock Exchange under the symbol SAP. Visit www.saputo.com for further information.
Information
Claude Pinard
Vice President, Communications
(514) 328-3381
Financial highlights
| Lynda Leith | ||
| Service des communications | ||
| (514) 328-3381 | ||
